). 16 Aug 2017 Contango, backwardation and commodity ETCs. Backwardation indicates that people prefer to be holding gold and silver, rather than fiat money (paper money) from a country (dollar, euro, etc. By: MoneyMetals The effort to squeeze silver shorts may appear to If you listen to financial experts and commodity traders discuss market conditions, chances are you have heard them refer to commodity markets like silver, platinum, palladium, oil, or gold as being in either contango or backwardation. and finanzen. Soybean Oil. That helped the entire commodity complex. Read More @ SilverSeek. We provide both the scientific theory and the data. Mar 02, 2020 · Silver Backwardation Returns, Gold and Silver Market Report 2 March March 2, 2020 / 0 Comments / by Keith Weiner The big news this week was the drop in the prices of the metals (though we believe that it is the dollar which is going up), $57 and $1. Mar 11, 2020 · Silver Backwardation Returns, Gold and Silver Market The big news this week was the drop in the prices of the metals (though we believe that it is the dollar which is going up), $57 and $1. 21 Apr 2011 has pushed crude oil futures contracts from contango into backwardation. Z0. Rausser, and; Andrew Schmitz. Mar 03, 2020 · Silver Backwardation Returns – Precious Metals Supply and Demand That is a big drop in basis—from contango to backwardation—as the price dropped a buck. The fact that it has happened and keeps happening means that it is inevitable that, at some point, backwardation will become permanent. The shape of the futures curve is important to commodity hedgers and speculators. Backwardation in near-dated futures then became a regular feature. But still! This should not be possible at all. After each of those backwardation frames, the paper price of silver spiked within months as arbitrageurs moved in to bridge the physical-paper gap. The term structure in the cocoa futures market that trades on This situation is known as backwardation. If you're not sure if what you're holding is precious or worthless, this information can help you find out Used carefully, silver nitrate can be an effective treatment compound for a number of skin issues. This is because it costs a large amount of money to store oil, whereas gold costs next 15 Mar 2012 Backwardation is when the bid in the spot market is greater than the ask In all other commodities (except silver), inventories represent a few 6 days ago Wholesome Seal of Approval Narwhal Salute All-Seeing Upvote 2 Starstruck LOVE! 2. By Tony Bradley, PCWorld | Practical IT insight from Tony Bradley Today's Best Tech Deals Pick The Barclays ETN+ Backwardation Long Short Exchange-Traded Notes (the “ ETNs”) that Silver, Barclays Silver Nearby ER, Barclays Silver Nearby ER, Silver Silver contango. , Religion, Barnard College Assistant editor for Harlequin BooksHosts a Single-stock futures have a huge advantage in their ability to handle specific security risk. However, the silver price moved up 60 cents which is a much bigger percentage. Oil prices. 50% of its demand from industrial sources and rising, should make it increasingly likely to Efficient Asset Portfolios and the Theory of Normal Backwardation. Feb 17, 2012 · Ever since early fall 2010, long-dated silver futures have been in backwardation. It is the short now who has to dip into his pocket in order to roll the short position out to avoid being forced to deliver. 14. Normal Backwardation: An Overview . But unless more silver metal comes to market and the basis recovers, backwardation should provide increasingly firm support as the price declines. This makes actual price on expiry to be lower than futures contract price. Silver futures prices are entering backwardation. For. Of course, when the price drops the injured goldbugs come out. The monetary metals have an interest rate which is the percentage difference between the future price and spot price. It is possible for a contango/forward rate to trade in a backwardation (negative interest rate) if. Backwardation and Other Evidence of a Silver Supply Squeeze | Crypto-Market Crypto-Market. 0% spike as New York's stock market opened sharply higher. Silver Backwardation Returns, Gold and Silver Market Report 2 March. On Monday, May 14, something happened that hasn’t happened since Dec of 2008. Feb 15, 2011 · SILVER PRICES last week slipped into backwardation, writes Lara Crigger at Hard Assets Investor. 22/oz and Dec13 at $33. These big players are short 412 million ounces of silver, and it’s them versus the world. Backwardation rarely happens in the gold and silver bullion markets. Periods of backwardation Dec 08, 2010 · Any way you look at it, the backwardation in gold and silver is a truly rare event and an exceptionally bullish one too. Simply defined, backwardation occurs when buyers in the Our next prediction is twofold. Feb 25, 2013 · In backwardation however, the long holder can roll out and make a profit with a new longer dated position at a cheaper price. A. If that trend continues in March, which is the next delivery month, it may be a bigger “Come to Jesus” moment than the shorts had in March of 2020. This shows the cash price as well as the price of the forward contract 3 Feb 2021 iShares Silver Trust, the short-squeeze target of retail traders on Reddit last week , slumped more than 6 per cent. Backwardation has eased since last Friday somewhat (see table below) but continues which suggests continued tightness in the physical silver Feb 03, 2021 · Reddit’s Silver Raid Sparked Highly Unusual Backwardation. Here we explain in layman's terms what these terms mean. 27 Mar 2020 As at March 27, platinum's backwardation exceeds that of its sister metal, Silver prices collapsed to 11-year lows in mid-March as the 22 Jul 2013 In commodities like gold and silver, contango is the norm since the or to the opposite condition known as “backwardation” like we are seeing 20 Oct 2019 Silver had its crisis when three brothers who were heirs to the Hunt Oil what metal traders call backwardation (short-term price higher than 19 Nov 2014 The Backwardation Enhanced Bloomberg Commodity Index (the “Index”) Natural Gas. The spot price is thus Even in more normal markets, the structure of the forward curve “backwardation” and “contango” is a source of confusion – mystery even. There is some backwardation in silver for contracts in late 2021, revealing weaknesses in their ability to deliver. Copyright © 2020 StackCommerce. Silver blogs and newsletters are awash with talk of a significant and unusual condition of backwardation in the silver futures market. Reddit's Silver Raid Sparked Highly Unusual Backwardation Surveying the wreckage of WallStreetBets raid on the silver markets - which thankfully for many on both sides of the trade - never got as out of hand as the heavily-shorted stock malarkey, offers a few insights into just what happened below the surface as silver prices round-tripped up and down by around 12% from Friday's close. In the early 1980s, there was a one-day backwardation in silver while some metal What is market contango and what is backwardation? Invest in physical commodities, typically gold or silver bars, which are stored in secure vaults. Here are 10 real estate businesses that are primed to take off. 22/04/2020, 6:00 am. Currently the market treats only gold as a primarily monetary commodity. Over the next few weeks silver rose from about $10. Silver. Monetary demand for silver suddenly woke up in early February, causing shortages and rare backwardation in silver that we last saw in March 2020, September 2015, and February 2011. Dec 15, 2019 · Backwardation very seldom arises in money commodities like gold or silver. Another example of contango is demonstrated on the following silver chart. Surveying the wreckage of WallStreetBets raid on the silver markets – which thankfully for many on both sides of the trade – never got as out of hand as the heavily-shorted stock malarkey, offers a few insights into just what happened below the surface as silver prices round-tripped up and down by around 12% from Friday’s close. 17. All Rights Reserved. gold and silver. RBOB Gasoline. Backwardation is often caused by significant shortages of physical commodities for near-term delivery dates. 23 Jul 2009 On the other hand, in financial futures markets, the backwardation Four markets are in this category: Wheat, Cotton, Platinum and Silver. Gold. Take the time to learn more about what it is, what it's use Precious metal investors take comfort in knowing their bullion has virtually zero counter-party risk. Register here for the Other terms of backwardation are “negative carry” or “premium” market. Triple digit moves for gold. The effort to squeeze silver shorts may appear to have fizzled, but naked short sellers are as vulnerable as ever. “When a silver mine company has to put on a hedge, it Silver backwardation occurs when the futures price is lower than spot. Meaning the prices for the futures contracts June 2014 – April 2015 are lower than the price of the futures contract for the first delivery month May 2014. It is this dynamic that is the most important in backwardation. All rights reserved. Oppositely, when gold or silver futures are in backwardation, it stands for futures prices to be set below the future spot prices. Shanghai Silver In Backwardation. Backwardation very seldom arises in money commodities like gold or silver. 4 Feb 2021 Later during the rally,the silver forward curve saw its second-strongest front-end backwardation since 2000. Backwardation means the future price is lower than the present spot price. 18. Backwardation. Feb 11, 2011 · BACKWARDATION. Registration on or use of this site constitutes acceptance of our Terms Every bust creates a boom, and the real estate market is no different. ” “Silver is in backwardation not just in the short-term, this time it is extending twelve months forward! The last time this happened Eric was in January of 2009. We have written the authoritative debunking of the gold and silver price suppression conspiracy here. Today the front month silver contract on the Shanghai Futures Exchange (SHFE) closed at an 8 % premium over London spot. Two successive near-month precious metals futures contracts were in backwardation at the same time. Feb 01, 2021 · On Monday, silver markets were showing signs of tightness, with nearby futures on Comex trading above later-dated contracts -- a condition known as backwardation, which signals a tight market. Backwardation happens regularly in most commodities, but it is rare in the precious metals. The price of silver has been in so-called “backwardation” for several days now. Anyone will make you a market when volatility is low and price m Online privacy is a hot issue, and the Do Not Track movement is gaining some momentum, but the whole thing is based on an upside down moral code. In March 2020, silver was near $11, nearly tripling to $30 by On Monday, May 14, something happened that hasn’t happened since Dec of 2008. Keith Weiner Posted Mar 5, 2020. One could have earned a "risk free" profit by simultaneously selling physical silver and buying a future. It's rare, and historically spot price has surged soon after. Nov 03, 2020 · Contango vs. com The silver cobasis began rising in August 2010, with the December 2010 cobasis becoming positive (i. Colin A. Thousands of traders use the Comex markets, but eight large investment banks control more than half of the paper metals market. 15. Because the next successive contracts are not in backwardation (in silver, all contracts from Jul 2015 on are backwardated), it is not a sign of a collapse of trust. F0. Search for more 21 Jul 2017 Silver and gold bullion-tracking exchange-traded products climbed returns of a simple “long backwardation and short contango” strategy. "This is the time to join the commercials and ride the next silver and gold wave higher," Maguire says. View Slides · The State of Low View Slides. When a market is experiencing backwardation, the contracts for future months are decreasing in value relative to the current and most recent months. Backwardation and Contango: Definition and Explanation What does this jargon mean to us? Simply put, a contango market means that futures contracts are trading at a premium above the current spot price and backwardation means that futures contracts are trading below current spot price. 13. Surveying the wreckage of WallStreetBets raid on the silver markets - which thankfully for many on both sides of the trade - never got as out of hand as the heavily-shorted stock malarkey, offers a few insights into just what happened below the surface as silver prices round-tripped up and… silver backwardation ends Fortunatel y a failure to deliver on silver contracts at the COMEX was averted although silver was backwardated for a record nine weeks. Carter. Similarly, Power Shares Ultra Silver ETF and the United States Gas 10 Oct 2013 The consequences of budget deficits for international trade · The fate of the pound sterling · The destruction of the euro · Gold and silver diverge. Feb 18, 2021 · Silver Backwardation and Other Evidence of a Silver Supply Squeeze Commodities / Gold and Silver 2021 Feb 18, 2021 - 12:00 PM GMT. View Slides · Yield Curve Composition: /ZF /ZF Setups. Jan 30, 2009 · Silver for all traded futures contracts (whether 1 month or 12 months) have been in backwardation for seven trading days since January 21. May 22, 2019 · Backwardation is when the current price—spot—price of an underlying asset is higher than prices trading in the futures market. 81 respectively. I do much more than just articles at The End Game Investor: Members get access to model portfolios, regular updates, a chat room, and more. com Mar 03, 2020 · Our next prediction is twofold. Both care about whether commodity futures markets are contango Mar 02, 2020 · The big news this week was the drop in the prices of the metals (though we believe that it is the dollar which is going up), $57 and $1. If the market is in backwardation, the fair value of a futures contract is more difficult to calculate. Silver, platinum and palladium are treated as quasi-monetary commodities. However, during the three-day rally, the aggregated open interest on all silver future contracts (regardless of maturity) jumped by 16,979 contracts, the fifth-largest three-day increase since 2010 . In the early 1980s, there was a one-day backwardation in silver while some metal was physically moved from COMEX to CBOT warehouses. That means that the price for immediate delivery has been consistently higher than the price for future delivery. Refiners halting production of both GOLD & SILVER. Source: Thinkstock Precious metal investors take comfort in knowing their bullion has virtually zero counter-party risk. A market is said to be in Backwardation, when the spot price is higher than the forward price of the futures contract whereas a market days than for 60 days, it might be said that the silver lease rates are “in backwardation. Backwardation is a type of market condition when the future price is less than the spot price Contango and backwardation are two terms used to describe different conditions in the futures commodity market. They have reduced the fees to rollover contracts to near zero. Feb 15, 2021 · During the backwardation of September 2015, silver was trading at $14. The first; premiums for spot silver on the SGE have been rising significantly since March 17. Silver's unique attribute as a quasi-currency commodity, with over. e. London Silver Forwards 'Positive', Defy Comex Backwardation as Coin Dealers Ask 35% Premiums Tuesday, 2/02/2021 15:06 GOLD PRICES fell to 2-week lows against a rising US Dollar on Tuesday, dropping 1. Backwardation Suggesting Big Move Up for Silver. Backwardation happens very rarely 4 days ago Silver futures prices are entering backwardation. March 2011 silver became backwardated on Jan 19, 2011 and May and December silver contracts went into backwardation on February 17, 2011. With gold, silver, platinum and palladium, investors overwhelmingly prefer physical ETCs. Jan 3, 2020. They refer to whether the price of a commodity Backwardation very seldom arises in money commodities like gold or silver. May 17, 2012 · The July silver backwardation is smaller, and the June gold backwardation is even smaller. ” The opposite market con- dition to backwardation is known as contango ( Gold and silver are the traditionally accepted 'precious metals'. SILVER BACKWARDATION AND INTEREST RATES. us is your top US cryptocurrency news and price monitoring site. Like a New York taxi on a rainy day, liquidity disappears when it is needed most. But, unless more silver metal comes to market and basis recovers, backwardation should provide increasingly firm support as the price declines. Download 2 FREE STOCKS PICKS INVEST RIGHT IN 2021 GET ACCESS Silver futures prices are entering backwardation. by Andy Hartree, senior adviser, Gneiss Energy. Feb 18, 2021 · This backwardation is most similar to February 2011, with silver nowhere near lows, and if history rhymes, it suggests we are only months away from $50 silver. It is worth noting that cost-of-carry varies depending on what the underlying assets is. In “Silver and Gold ARE Money (PART 1/2)“, I charged that both silver and gold are money and shared information on the very important concept of gold's “stocks-to-flow” ratio and the size of the LBMA markets for both metals. 1 Contracts traded on the LME uses the 15 Jan 2021 Gold, silver charts near-term bearish, long-term bullish. 25, hitting a high of around $21 by July 2016 10 months later. Backwardation in silver is a "Big Deal". Heating Oil. I think that it is a lack of unencumbered Feb 21, 2012 · The silver cobasis began rising in August 2010, with the December 2010 cobasis becoming positive (i. Source May 17, 2012 · The July silver backwardation is smaller, and the June gold backwardation is even smaller. Up Next · This Year's Gold & Silver Silver Ratio. One, if stocks continue to crash (and Treasury yields continue to drop) then the price of silver could drop a bit further. Feb 08, 2011 · SILVER BACKWARDATION AND INTEREST RATES. 50, a roughly a 40% move Understand two different movements of the forward curve, contango and backwardation, and why these movements are important. The opposite market 5 Feb 2021 “On Wednesday, the silver futures market rallied back. Second; on the Shanghai Futures Exchanges all silver futures contracts are trading in backwardation. K0. Feb 03, 2021 · On the price action side of things, the iShares Silver Trust is physically backed and does not directly impact the silver future market. The current real estate downturn may be bad news for homeowners, but it means opportunity for savvy entre Carly Silver is an ancient and classical history expert who has served as a tour guide, assistant editor for Harlequin Books, and teacher and lecturer in Brooklyn. To oversimplify, backwardation is when the price of a futures contract is lower than the price in the spot market. Backwardation is sometimes confused with an inverted futures curve. The extent of the backwardation in silver is unprecedented. London metals trader Andrew Maguire, interviewed today by King World News, says the cash price for silver is so far above the recent futures contract price -- deep backwardation -- that a rally is imminent. Precious metals have been left out in the cold with BTC/USD stealing some their thunder. 16. Simply defined, backwardation occurs when buyers in the The price of gold and silver are both up over the past week as both metals are in (temporary for now) backwardation, but the price does not have a high degree of relevance. Zinc. Apr 04, 2014 · Backwardation in gold and silver is the consequence of interest rate manipulation by the government. 45/oz while the Dec12 contract trades at $34. Tune in and welcome! Fiat always die$, and Gold always survive Mar 29, 2009 · This article and charts is an update to an earlier article “18 Days and Counting – Silver Backwardation Persists in the London Market Place“. As with any other supplement or treatment, it's a good idea to learn more before using it. This means the price of a silver future for, say, Dec 2015, was *lower* than the price of silver in the spot market. Gold price has been unusually weak despite a solidly トレーダーズ・ウェブは、株式・ＦＸ情報を配信する総合投資情報サイトです。 株式ニュース、ＦＸニュース、中国株ニュース、株価、チャート、経済指標は もちろん、レーティング、話題の銘柄、225先物手口、ＩＰＯ情報といった人気 の Backwardation is the opposite of contango. After a lower open, grain prices turned and 15 Feb 2021 Silver futures prices are entering backwardation. Kootenay Silver News: This is the News-site for the company Kootenay Silver on Markets Insider © 2020 Insider Inc. For example, a si Gear + Gadgets Accessories Description Specs Compatibility Includes Shipping Terms Get exclusive coverage to the world's top publisher sites through the StackCommerce network. Therewithal the futures curve of silver is in backwardation; silver is scarce in Shanghai. The big news this week was the drop in the prices of the metals (though we believe that it is the dollar which is going up), $57 and $1. Nickel. Backwardation should not be able to happen at all as gold is so abundant. Sugar. SI. com . So be prepared for an upside explosion in the price of both precious metals Feb 13, 2021 · Hecla Mining Company Message board - Online Community of active, educated investors researching and discussing Hecla Mining Company Stocks. This chart is showing when it has happened in the history and what has followed in such occasions (hint: price exploded higher). Backwardation happens very rarely, but this condition has been a reliable indicator that higher prices are on the way each time it has occurred over the past decade. Gold futures contracts are almost Backwardation is the opposite of Contango, and refers to a situation when the Energy Sector News · Oil & Gas Stock Analyst Notes · Gold & Silver Stock Such type of situation mainly exists for bullions i. Feb 17, 2021 · Ed explains how tight the silver markets have become and why the Comex is attempting to roll over as many contracts as possible to avoid delivery. Reddit’s Silver Raid Sparked Highly Unusual Backwardation Surveying the wreckage of WallStreetBets raid on the silver markets – which thankfully for many on both sides of the trade – never got as out of hand as the heavily-shorted stock malarkey, offers a few insights into just what happened below the surface as silver prices round Oct 12, 2015 · The Decline and Fall of Silver Backwardation. 9 Jul 2014 If the Government had allowed futures in onion, then we could have been able to clearly see how backwardation and contango play out in a 11 Mar 2019 calculation of each commodity's Backwardation and ranking of these Silver. 90/oz. While gold is marginally higher today, silver has risen nearly 1% against the dollar and other currencies. Dec 13, 2019 · Backwardation very seldom arises in money commodities like gold or silver. To get a good understanding of the silver market I recommend reading Get The Skinny On Silver Investing by David Morgan of Silver-Investor. Backwardation — a market For example, if it costs more to lease silver for 30 days than for 60 days, it might be said that the silver lease rates are “in backwardation”. 5 Feb 1998 Price of silver jumps to more than $7 an ounce--its highest since 1988--as later in the year, a trading inversion known as backwardation. The erosion of faith in paper money is a one-way process (with some zigs and zags). As Monty Python would say, there was much rejoicing. Thanks to @RafiFarber on Twitter. See full list on jmbullion. This exceptional situation may gold, silver, or crude oil. N0. B. Carter,; Gordon C. Backwardation continues with spot (for immediate delivery) trading at $34. The gold price moved up $18. 8% while sister metal silver erased all of yesterday's 11. Colloidal silver is a popular alternative therapy that's made a comeback in recent years. Because it has been over 10 years since we last saw near-term silver futures contracts trading higher than ones further out in the curve. That is a bad omen for anyone betting on lower silver prices. With silver futures slipping into backwardation for the first time in over 10 years, what implications does the move have for the metal's market as a whole? Silver blogs and newsletters are awash with talk of a significant and unusual condition of backwardation in the silver futures market. Some precious metals dealers said that backwardation in silver was related to the forward sales program by silver producers. I think that it is a lack of unencumbered Mar 04, 2020 · Our next prediction is twofold. This backwardation is about three times more severe than the mild backwardation than existed from December 8 through December 24 in 2008. Source: ICE/RMB. Feb 15, 2021 · Silver futures prices are entering backwardation. Our next prediction is twofold. 50 to $14. Silver futures in New York fell as much as 10% as traders closed out positions after CME Group hiked margin Silver is a precious metal, and its purest forms ― coins, bars or bullion made up of 99 percent or more silver ― have a lot of value. In recent months, the numbers of people standing for delivery of the metal on their futures contracts has spiked. Silver is in backwardation (current contract has higher price than contract further in the future)! This is very unusual for Silver. May 17, 2012 · Backwardation in Gold And Silver. Backwardation happens very 4 Feb 2021 silver #comex #backwardation #gold #physical #commodities #futures # dollarTonight I will be chatting with Rafi Farber of The End Game 21 Aug 2020 Keywords: futures markets; backwardation; contango; futures prices; machine learning; Among industrial commodities, only copper and silver. Since gold futures first started to be traded in 1972 (on the Winnipeg Commodity Exchange), there have only been momentary backwardations of a few short hours. For optimal safety, discuss use of silver nitrate with your physician before using it. In the early The Macquarie Reverse Ranked Backwardation F0 index (hereinafter, the Index) PAGE 4 │ Macquarie. backwardation) by November 11. (Bloomberg) -- The buying frenzy that sent silver to an eight-year high has stalled out. Feb 03, 2021 · Reddit's Silver Raid Sparked Highly Unusual Backwardation Surveying the wreckage of WallStreetBets raid on the silver markets - which thankfully for many on both sides of the trade - never got as out of hand as the heavily-shorted stock malarkey, offers a few insights into just what happened below the surface as silver prices round-tripped… Silver In Backwardation- Sudden Premium Spike Suggests Physical Silver Shortage Hits Shanghai Two events currently suggest a possible shortage of physical silver in Shanghai. net GmbH (Imprint).