From Investment Postcards from Cape Town:
Although the silver price has declined by 11% over the past three weeks, tightness in the physical market continues as the metal is again in backwardation (i.e. the spot price is higher than the futures price).
James Turk of GoldMoney provided the following comments to King World News: "Silver is in backwardation which is an extremely important development. Backwardation happens regularly in most commodities, but it is rare in the precious metals.
"Silver is in backwardation not just in the short-term, this time it is extending twelve months forward! The last time this happened was in January of 2009. Over the next few weeks, silver rose from about $10.50 to $14.50, roughly a 40% move higher. The key to understanding backwardation is that the price must rise to...
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