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contango (kuhn-TANG-goh) noun
A premium paid by the buyer to the seller for deferring payment.
[From alteration of continue or contingent.]
"Gold markets are generally in contango because there is an infinite supply of gold in the vaults of central banks or in private hands." Jim Jones; Hedging: It Takes Two to Tango on the Market; Business Day (Johannesburg, South Africa); Feb 08, 2002.
"In addition, the one-year contango, or the difference between spot prices and forward prices, has narrowed to $3 an ounce, from $15 a few years ago." Bernard Simon; Gold Producers Are Split On Whether to Hedge; The New York Times; Jan 24, 2002.
Before coming to the Seattle area two years ago, we organized a moving-sale to dispose of our furniture and other household goods. It seems it was our then-kindergartener Ananya's first direct experience in the world of commerce but we didn't realize how much she had picked up until we'd settled in our new home.
There's a knock on the door of my home office downstairs and Ananya enters
with a smile on her face.
A little later, there's another knock-knock on the door.
One look at the bright crayon rainbow in her tiny hand and my heart overrides
my head. I'm ready to splurge just to acquire that masterpiece for my
A few more such business deals and Ananya has sold out. But that doesn't deter a determined entrepreneur, as I soon discover.
"Would you like this penny for four cents?"
I take her comments at face-value, that there is some value in this exchange.
I dig into my wallet only to discover that my buying spree has taken
toll on my bottom-line.
Thanks to a generous credit-line extended by the friendly banker at our very own First National Home Bank, I'm able to borrow emergency funds and close the sale.
"So what are you going to do with all this money?" I ask her.
Sometimes it takes just a few hours to get a lifetime's instruction in the school of business and life.
This week in AWAD: words from the world of money and finance.
Wrongs are often forgiven, but contempt never is. Our pride remembers it forever. -Lord Chesterfield, statesman and writer (1694-1773)
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