Front month (Sept 11) contracts settled Wednesday at $41.699, and are trading in contango through the Sep 2012 contracts.
Backwardation begins with the Dec 2012 contract, and continues to widen until the July 2016 contract, which settled at $40.336, a $1.363 discount to front months.
The fact that silver remains in contango for roughly a year out from front months indicates that traders are not yet pricing in an imminent default of the silver COMEX, but beyond 12 months out traders begin to increasingly lose confidence that silver will remain to satisfy longs standing for delivery.
(new readers can view our explanation of contango vs. backwardation here, and backwardation's implications here)
|Daily Settlements for Silver Futures (PRELIMINARY)Trade Date: 08/31/2011|
|Prior Day |