|Last week we wrote that backwardation in silver is a result of COMEX default risk (somehow this important article was missed by many readers- we discussed the meaning of gold trading in contango while silver's backwardation continues to worsen). |
As of that writing, Silver was trading in backwardation from Sept 2012 on out, with the December 2015 contracts trading at a 0.65 discount to front months.
As of 7/27's settlements, silver remains in contango from front months through July 2012.
Silver enters backwardation again in the Sept 2012 contract, but the discount on back months (backwardation) has risen 20% in the past week to 0.781.
Daily Settlements for Silver Futures (FINAL)Trade Date: 07/27/2011
|Prior Day |
Thursday, July 28, 2011
Silver Backwardation Increases By 20% in Past Week
Posted by The Doc at 11:01 AM