Silver backwardation has increased since last week's update, even though silver has risen from $37 to $38.50 during the same time period.
Silver remains in contango from front months through July 2012 contracts, and is still trading in backwardation from Sept 2012 on out. (Newer readers can read our explanation on backwardation vs. contango here)
The Dec 2015 contract is now trading at a $0.59 discount to front months, up 36% from $0.439 last week.
Notice that open interest has declined all the way to 112,795, from highs above 145,000 before the May smash-down.
Silver has plenty of room to run, and it looks like the next up-leg is just beginning.