Renewed interest due to… interest?
No doubt you've noticed gold's recent bullishness. At first glance, you'd think gold supplies are tightening. At least that's what casual observers of the gold futures market might think.
You see, there's this thing called contango. A contango exists when a contract calling for delivery in a distant month trades at a premium over a contract with a nearby expiration date. This is the normal situation for the gold futures market. A contango typically approximates the carrying costs associated with holding bullion until its putative delivery date. Carrying includes