Jump to content
House Price Crash Forum
Sign in to follow this  
harumph

Silver Backwardation

Recommended Posts

Silver, apparently, is currently experiencing a level of backwardation, indicating that futures contracts are not able to make physical delivery if the contract is demanded to be fulfilled in metal.

This should bode well for silver price - and might explain the sudden spike in the price.

http://en.wikipedia.org/wiki/Backwardation

full article here: (hardassetinvestor are biased obviously, but the analogy appears sound)

http://www.hardassetsinvestor.com/features-and-interviews/1/2552-why-silver-backwardation-matters.html

Share this post


Link to post
Share on other sites

Silver, apparently, is currently experiencing a level of backwardation, indicating that futures contracts are not able to make physical delivery if the contract is demanded to be fulfilled in metal.

This should bode well for silver price - and might explain the sudden spike in the price.

http://en.wikipedia.org/wiki/Backwardation

full article here: (hardassetinvestor are biased obviously, but the analogy appears sound)

http://www.hardassetsinvestor.com/features-and-interviews/1/2552-why-silver-backwardation-matters.html

I don't understand the mechanics behind the idea; that silver futures contracts for delivery in the near future are quoting a higher price than silver futures for distant delivery, which means that thier is a shortage of physical silver and thus an upward pressure on the price.

and to be honest, I dont think many people do seem to understand how this is meant to work. Or if they do, they dont make it clear in thier writings.

Edited by Retardstic

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.