Thursday, June 23, 2011

Silver Remains in Backwardation

While the COMEX continues to bleed deliverable silver, traders continue to discount back months of silver on concerns that there will be no silver remaining when the contracts come due (or distrust in the US dollar).

Silver remains in backwardation beginning with May 2012 contracts on out.

Front month contracts settled Wed 6/22 at $36.734. 
From front month through March 2012, silver remains in a slight contango (normal market conditions).
May 2012 is now trading at about a 1 cent discount to front months, and backwardation increases to a $1.01 discount for the Dec 2015 contract. 
Apparently NO ONE believes the cartel will have any silver left by the end of 2015 (we sure don't).

Daily Settlements for Silver Futures (FINAL)Trade Date: 06/22/2011
Month



Change Settle Estimated
Volume

JUN 11



+.361 36.734 20
JLY 11



+.360 36.739 52,966
AUG 11



+.362 36.750 107
SEP 11



+.361 36.754 6,365
DEC 11



+.363 36.771 3,042
JAN 12



+.363 36.768 3
MAR 12



+.365 36.750 231
MAY 12



+.365 36.723 18
JLY 12



+.365 36.698 23
SEP 12



+.364 36.673 9
DEC 12



+.363 36.647 10
JAN 13



+.362 36.620 -
MAR 13



+.361 36.561 20
JLY 13



+.360 36.483 5
DEC 13



+.360 36.367 8
JLY 14



+.360 36.178 -
DEC 14



+.360 36.057 -
JLY 15



+.360 35.855 -
DEC 15



+.360 35.720 3