The Phaserl


DEMAND Has Outstripped Supply, Causing “UNPRECEDENTED” 2-Month BACKWARDATION in Precious Metals – But What Exactly Does That Mean?

by PTS

Gold and Silver are in backwardation… exciting, huh!? Well maybe. First, here’s David Mcalvany’s take on it.

“It’s not uncommon to have backwardation in any market, but it usually happens a very MINOR amount, and only for a day or two. We’re now into our 8TH WEEK of backwardation, 2 full months. It’s not the degree to which we are in backwardation, but the duration which I think is very intriguing.”

Backwardation is one of those terms that most of us generally understand, but the minute we try to articulate it to our friends we struggle to find the right words to define it. Backwardation is when a futures contract in the front month is more expensive than in the months further down the road. It’s a fairly rare occurrence. And it almost never happens for weeks on end.

Enter the folks at Mcalvany Financial, who explain the details of backwardation in the following clip. Not only does David Mcalvany do a fine job explaining this confusing concept, he also details how investors in China and India want PHYSICAL gold IN HAND, and how those investors want their physical metals NOW, preferring not to wait 3, 6, 9 months or more to get them.

With backwardation now entering its eighth week, it’s clear that something very unusual and potentially very exciting is going on.

Awakened people all over this planet are seeing the headlines and connecting the dots and are steadily accumulating precious metals. This at a time when mines are shutting down, war drums are ramping up, and governments around the globe continue with their irresponsible monetary policies. As Harvey Organ has been daily chronicling, gold and silver stockpiles are disappearing from warehouses around the world.

I don’t mean to be sensationalist. I honestly hope that I have years, not months, to add to my own PM collection. But like a game of musical chairs, none of us knows exactly when that last measure is going to be played and the music stops. At that moment we will own all we are likely to ever own, with the real-world price of PHYSICAL having completed its moonshot, out of reach.

This breaking news piece is brought to you as a reminder of how unprecedented Backwardation lasting for over two months, actually is.

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11 comments to DEMAND Has Outstripped Supply, Causing “UNPRECEDENTED” 2-Month BACKWARDATION in Precious Metals – But What Exactly Does That Mean?

  • Hannon

    Lol, this obviously means a major price correction is on the way

  • Upstart


    If they were they would realise that the price of of Gold and Silver means S–T at this time in world history.

    We are currently on the brink.

    As we discuss trivia such as the Dollar price of metal and futures conracts, for the first time since the Cuban missile crisis, the US is actually squaring up for a fight with the one nation who is genuinely capable of
    A) sinking the entire US navy within a day,
    B) swatting the entire US airforce out of the sky,
    C) causing 100s of thousands of US troops around the world to be cut off from resupply (to be picked off at lesuire by millions of hostile combatants from countless nations who have a well justified score to settle),
    D) who can knock out the entire US power grid with just one device detonated in low earth orbit
    E) can level every major US city, and still have enough firepower left to level every major US town too
    F) can truely boast to be able to match the US in its ability to bomb a nation ‘back to the stone age’.

    Involve China, Iran, and possibly Pakistan too (after all we have droned countless of thier citizens) and we have a recipe for the complete destruction of the US.

    After such a confrontation, if US society resembles a scene from the movie ‘The Road’ it will have done well.

    Last night I was sent a copy of the 1980’s British movie ‘Threads’. It was prophetic in its warning about a nuclear war starting in the middle east between the US and Russia over a dispute with Iran, Syria, and Israel. It spread to every NATO state and resulted in the west being destroyed.

    It can be found in full on youtube. I recommend everyone watch it – made 30 years ago it could be looking at our future next week. After watching it the price of Silver will mean little or nothing to you anymore.

    • Warp

      I don’t dispute your claims. Such an event is possible, perhaps even likely.

      What do you propose to do about it?

      What do you think YOU or ANY other person who is not a member of that group of raving lunatics could do about it?

      We are but grains of sand. We do not control the actions of the waves.

      If there is an event like that which is depicted in Threads, it would require several generations of labor to return to a standard of living that any one of us would see as acceptable. Why not pass on the fruits of one’s prosperity in any way one can to those who come after? Hopefully, they’ll be able to speak the language… 😉

      • Upstart


        You are correct, we are indeed but grains of sand in the scheme of this great creation. We watch from the shore as the seas of change come crashing over us, smashing us against one another, scattering us, and washing many away – powerless to do anything about it.

        Gold and Silver will have a place in the NWO as long as they dont destroy civilisation through nuclear war when they try to introduce it. At the moment that is not a fore gone conclusion.

        With regards to the movie Threads (Spoiler alert), reference was given to money and how, after a major nuclear exchange it would mean nothing – food, tools, fuel, shelter, clothing, and the physical ability to undertake manual labor were the currency – for at least two generations. Sadly, after two generations there was no improvement, and the film depicted the UK (and by deduction the US and the rest of Europe) reduced to a pre-industrial, barely agricultural level. Reference was also made that the understanding of English was also limited due to priority given to survival not education……….

        The moral was that no one, not even the elite, can win an all out nuclear war.

    • Glitter 1

      Upstart, I’ve been reviewing Bible Prophecy on the End Times in the books of Daniel,Matthew,1&2 Thessalonians,Revelations along with the NWO Play Books as deliniated in the “Protocols Of Zion” and Albert Pike’s “Morals and Dogma”.Everything you describe is in there.

      • Upstart

        Glitter 1,

        I agree.

        I am particularly worried about Isaiah 17 (“Behold, Damascus will cease from being a city, And it will be a ruinous heap’……’The kingdom from Damascus,
        And the remnant of Syria; They will be as the glory of the children of Israel,”).

        We must not also forget about the armies from the north (Russia?) and the battle of Armageddon (which I have been informed is a place in Syria).

        As Irael has tried 3 times now to provoke Syria to attack it (links to last 2 below) it does appear that someone is trying very, very hard to fulfill Biblical prophecy, or least that of Pikes.

        Israel Attack on Syria vid: link A,

        link B:

        Israel launches missiles towards Syria (US shoots them down):

        • Glitter 1

          It’s prophesied/written to happen,it will happen.There’s no way to stop it.It’s all been settled in heaven.

          • Upstart

            However my interpretation is that the ‘End Times’ do not have to begin / happen right now – it is the actions of man who can delay or expediate these matters.

            It does seem to be the actions of men who are indeed expediting matters by apparently ‘forcing’ prophecy to happen now, as oppossed to some time in the future. There are too many ‘coincidences’.

            Take the excavations under and around Temple Mount / Al Aqsa which have been going on for years. Various groups want to see this structure collapse so that the ‘Temple’ can be rebuilt in Jerusalem, thus starting the clock on this issue for Jews, Christians, and Muslims:


            As the original Illuminati / 33+ Degree Masons such as General Pike could not have forsaw the development of nuclear weapons, it is possible that WW3 may be conducted in a much different way than WW1 and WW2. It may even be possible for us to suffer a depopulation event (Agenda 21 etc) through a nuclear exchange without triggering ‘end times’ prophecy – thereby allowing Pikes Godless society (the NWO) to come about unoposed.

            Whatever happens there will be great suffering, death, and evil visited upon the people of this earth, and many souls will be lost. Perhaps that is the idea for now – harvesting souls, afterall, never in Human history has there been so many people on this Earth, much of whom have no grounding or even understanding of these matters.

  • J Shipley

    Thank you for the video link and the explanation of this,it made a lot of sense.Of course I agree with what he says near the end,that with the quick run up in metals over the last few weeks,a price correction would be normal to see in the next few days,and in fact we are seeing it today.Still,good info!!!!

    • PTS

      Yes, I noticed that too, how he called for “something of a correction” in the next 10-12 days, and guess what is happening today? Time will tell if he is right on the duration of this beatdown.

      But I thought he synthesized a great deal of information about what is currently happening the Gold and Silver markets in a short 4-minute clip, so I am happy to hear you found value in it 🙂

  • NaySayer

    Silver smashdown in progress (gold too).

    Silver down over .85 cent already this morning.

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