01.03.2013 - Silver price backwardation, corrections and perception shifts
The price of silver futures contracts have been regularly flirting with a state of backwardation ever since the 2008 financial crisis, which is a sign of a growing physical silver shortage. A state of backwardation occurs when the front month silver futures contract commands a price premium to the subsequent months’ contracts. On one hand, this situation could actually provide larger traders who own the physical silver with an opportunity to simultaneously sell it and purchase futures contracts to recover their metal holdings for a net profit...............................................Full Article: Source
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