We Have Achieved Backwardation!
Posted on July 19th, 2010 by MoverMike
Silver Prices In For a Volatile Week says Karvy Global at TheStreet:
Silver prices for spot delivery on COMEX closed at $17.85 an ounce, while futures ended at $17.79 an ounce, suggesting that silver prices are in backwardation. Similarly, gold prices for spot delivery on COMEX closed at $1,193 an ounce, while futures ended at $1,188 an ounce, suggesting that gold prices are in backwardation as well.
Tags: Backwardation Silver Gold COMEX
There has been some talk of a larger than normal amount of contracts going into physical delivery. Perhaps that was enough to push the price up a few cents. However, this has occurred several times before during contract rollover and it hasn’t lasted long.
TradePlacer, you are correct and it may not last long again. That being said, I’ve been watching the basis over time and it has been shrinking to zero or close to zero. I think there is a big shortage in the physical that will propel Gold to extreme heights. We’ll see!