Silver Backwardation Continues to Worsen

If the silver bubble has popped, why does silver's backwardation continue to worsen?  Front month silver is now trading at a $1.28 premium to the Dec 2015 contract.  For those new to the silver market, commodities typically trade at a premium for farther out months, as storage, insurance, etc must be paid to hold the commodity.  Premiums for front month contracts means the market is in  backwardation.  This means that demand for physical silver remains exceptionally strong, and long term distrust for the US dollar remains high.

	Contract				Last	Change
	May 2011				37.110	+1.827
	Jun 2011				37.110	+1.823
	Jul 2011				37.116	+1.829
	Sep 2011				37.125	+1.831
	Dec 2011				37.118	+1.835
	Jan 2012				37.100	+1.835
	Mar 2012				37.063	+1.840
	May 2012				37.020	+1.845
	Jul 2012				36.978	+1.851
	Sep 2012				36.917	+1.851
	Dec 2012				36.871	+1.879
	Jan 2013				36.839	+1.880
	Mar 2013				36.769	+1.884
	Jul 2013				36.658	+1.891
	Dec 2013				36.501	+1.894
	Jul 2014				36.313	+1.899
	Dec 2014				36.156	+1.899
	Jul 2015				35.981	+1.879
	Dec 2015				35.831	+1.869