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Silver Backwardation Surges To Over $1.00
The last time we presented the silver backwardation chart, it was "only" $0.50 or so between the front month and the long end. In the week since then the difference has jumped to what we believe is a new record of $1.50 or so. Now that the CBOE is issuing CEBOs and allowing plain Jane investors to bet on imminent corporate bankruptcies, would it be so kind to issue a contract or two on the COMEX... Pretty please?
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Force Majeure with a Squid pro quo.
In exchange for the Obama mortgage re-elections concessions.
Hi HO(Blythe) Silver!
the upmove stalls and start lacking gold... likely to drop to 31.5 - 32.0 which will complete an a-b-c correction and found the base of the next leg up to 40.
SLV (Silver targets)
http://markettechnicals-jonak.blogspot.com/
4 days to form a base?
Please note that silver's meteoric rise has happened in the backdrop of some of the darkest times in recent history. Huge destruction, on many spheres, at many levels.
The darker it gets the more silver will shine, like the moon.
Probably a strange analogy for hard math hard money people, but in my world, I see it clear as a full moon night.
Gold on the other hand, in spite of all the history...I see trouble. No hard logic again.
FWIW.
ORI
http://aadivaahan.wordpress.com/2011/02/23/666/
How else is Blythe supposed to cover her short losses in the prompt month if she doesn’t sell something on the distant horizon? Money doesn’t grow on trees you know. Even Ben limits the amount he’ll print for you in just a day or two.
The Bearish case makes more sense here as Gold has not followed and Copper's chart is not so hot either. Back to 31 support for a test at a minimum.
Silver is much more finite (yeah, the physical, not the paper) than copper (more availability) and gold (less used) so it's normal for the price to be much more chaotic.
Deux Rivieres is back, and right on cue!
Will this happen before or after the DX(/)Y powers through 84?
"Can someone explain this to me? Does this mean if spot is $33 you can buy silver at a future date for say, $31.50? Hence, a $1.50 backwardation? For some reason I don't think that's right."
Yes!
In a normal market trades in contango due to storage fees ect. Why pay more today when I can buy silver cheaper 6mo from now?
As Eric Sprot states "there is no silver left".
Buying silver 6mo from today shows a risk premium aka backwardation of not receiving any silver, (a comex default).
Wow. $1 is a big difference.
$40 an eagle at my local...
I'm buying more silver with whatever funds I can get available for it. The amount I pay doesn't even bother me anymore, as long as I get more.
I've put over 99% of all my funds into it, and I'm buying for 800 euros a month extra.
And the misses is oké with it :)
The reason why I believe so hard in silver and gold is because the euro industry is really going to get hammerd BIG by june.
All the sounds I hear from ceo's is really bad. The costs are rising so high right now that almost all of them are barely able to pay the wages and suppliers are almost everywhere waiting 4 months for their bills to get paid.
TYLER:
You should so a check on number of days untill invoices get paid. You used to do that in 2009, but now those are dramatic.
factoring/selling receivables is growing rapidly as companies need the working capital plus as you say, customers are paying later and later. That squeezes margins. Better than going out of biz.
Not it's not.
If the bills aren't paid within 4 months, the credit costs will evaporate the profits.
And now that commodities are going through the roof, they are running massive losses.
I bought the spike on Monday....such excellent timing.
me too, but fortunately just 200oz.i will buy more now
I, too, am an expert! Four-digit losses on some positions today :-)
I bought more of everything (physical, miners) 15 min ago, though. *In theory*, all good deals. In practice... well...
"If you expect nothing from anybody, you’re never disappointed." -- Everyone should take delivery and squeeze the Blythe!!!
i knew it was coming...they just slammed it down to 32.82...
so fucking fraudulent.
http://www.silverseek.com/quotes/hoursilver.php
COMEX closed @1:30 it was on Globex. Not that it matters, but it does.
I'm sorry, but these kind of sentiments make the ZH msg board look ridiculous sometimes.
Silver higher: Justice is served.
Silver lower: Conspiracy! Fraud! Blythe! JPM! etc.
Guess what? Some people do sell as prices go up. It's called taking profit. That's why prices go up. To incentivize holders of a good to sell it.
As much as I want to be bullish silver, the chatter on this board always scare the shit out of me. It's the kind of language you see at very long-term tops.
I agree they are jinxing the market. I hope they STFU and BTFD.
beeaches.
Uh, no, other than here at ZH, hardly anyone gets excited about silver. IMO, it will become a long-term top when the man on the street is talking about it, which is nowhere close.
Falling rocks, natural. Rising rocks, someone is putting in energy!
Or is gravity a conspiracy theory too?
Meth Man has already disproven gravity, it only took him 3 weeks withou sleep. You see It's a scam by the Airline industry to keep us all flying on planes.
So far, stocks and oil follow my long term shock reaction graphs from Ferbruary 6th with remarkable accuracy:
http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&start=0
That gives some confidence they will continue to do so.stocks Dip until May til 10500, up June July, accelerated dip to 7000 till Q1 2012, miserable 2012:
http://saposjoint.net/Forum/download/file.php?id=2608
Oil is going exactly to my predicted peak close to March 1st , when Libya will be solved (Quadaffi removed) , to go down a bit before escalation of regional instability in April, leading to higher peak ( 130-140 USD) . There will be some semblance of lull during May-June, during which stocks will regain some of their positions (DJIA reaching 11250. That will be the maximum for at least 3 years to come :
http://saposjoint.net/Forum/download/file.php?id=2609
I keep clicking on <HELP> for explanation but there is no explanation.
I guess there is no explanation for backwardation beetches.
Hey Moe! Hey Moe!
It's a picture of a bloomberg terminal, not an actual one.
Nyuk, nyuk, nyuk.
Invest for the possibility of a COMEX default? Nope. Invest because I did my homework and know that 5 years down the road there will be for sure shortages on the miner level? Yes, assuming no new mines or large veins are started or found in the meantime, even then there will not be enough. I love people bashing silver for no reason at all when it has been one of the best trades of the decade and will be the best trade ever in the future. Dwindling supplies, growing populations, more uses being found everyday for the metal and barely an recycling with no huge above ground stash makes it a slam dunk, IMHO. I do not care about spot or if COMEX defaults, that is just gravy for me in the short-term. Long-term it is an amazingly simple story which is why so many people bash it, they just do not understand simplicity.
Right on target demsco. LT, Ag seems a fantastic buy for all those reasons and any short squeeze/default etc.. is just silver icing on the cake. KISS!
Lots to be said for simplicity.
Simple to hold other PMs too.
Diversification is not hard, it's simple!
My idea of diversification is to buy pre-1965 dimes (now at 24x face value for the silver) as well as Silver Eagles.
Recycling carbon tubes with an atom of silver attached at each end is going to be a bitch. Thats a ways off though.
Blythe is going to be fucked with a giant silver cock - if you ask me...
Just like this chick
http://www.sunporno.com/tube/videos/34302/milf-double-penetration.html
Worry do not Young Jedi, Master Helicopter Ben can bail you out, he can print silver, gold and plenty of shit
Lucky i have a Keypad protector on my Mac book pro . It could of been messy
+Yikes!
Shit , should have got more silver.
Anyone want to exchange it for some nice euro paper ?
Anyone Anyone ?
www.youtube.com/watch?v=dxPVyieptwA
32.62...fucking bullshit...
so fucking obvious.......
That is one evil looking red bar on the 15 min silver futures chart
I posted this on another thread, but as a service to Zero Hedge readers, I post the below news item from 2013:
Dateline: January 2013
Lame duck President Obama and Federal Reserve Chairman Ben Bernanke will take a short trip overseas on Air Force One just before the new President comes into office.
Reports of pallets of gold being moved to Andrews Air Force Base continue to trickle in...
Don't worry. We will be on the tungsten standard by then.
But everybody knows you can't eat that shit.
Ouch I feel Blythe minions in the air too. Will they succeed to drag it down to 32?
Nice rush (I see that there was absolutely no volume before the attack) but as some guys just entered in the fight it is just the beginning of the round.
Are any of you ZH readers in NYC? If so, and you'd be interested in buying silver eagles $2 over spot, please let me know by responding here.
This is not an offer to sell, I am just trying to see whether there is enough local market interest to make it worth providing this service.
come to zero hedge
to see an example of trailer park trash mouths in full bloom
what do you guys do in spare time ..roll package of cigs in your skin tight t shirts arms sleeves
read i wanna be cool magazines, spit in a large bucket of toilet trash,
buy your silver and mouth masturbate in private... or go school your kids and wife ,
this is a public board ,, and so many take leave of their senses to post gutter talk
as we would say to the gutter mouthnkids in the fifth grade get a life
HEY!
I AM THE REGISTERED TROLL ON THIS BOARD!
YOU GO TROLL ELSEWHERE!
top, do not tout your Trolliness too much!
dumpster, the Colonel and RockyR blasted the most notorious troll ever (Bater/Bravo) right out of here.
dumpster is one of my favorites reads...
Really?
I dont remember him.
If he takes you on as his troll pet you'll remember him til the day you die.
http://www.zerohedge.com/users/dumpster/track
1 year 7 weeks
The dumpster speaks, people listen.
DCRB lol
dcr
now thats a takedown...
50 cents in 5 minutes. Damn.
I particularly like todays two 6M share spikes in SPY one hour apart... and 'magically' everything starts a V dip recovery!
At this rate my freshly minted coins... only 200 left will be a bargain. So come on over to www.mundogold.com and say you are from zerohedge and I will sell you them at 44.00.
That's a pretty hefty mark-up, sir.
No way!
It's going to 220 remember?
BUY BUY BUY!
$11 and change for a markup? And that's a discount from retail? PASS.
I am a small time minter. The price of the die, the silver and the designer is expensive.
However, think of it as a collectible. My cost all told, was $39 and some change for this run. If on the other hand I was able to buy a thousand ounces or so I would have been able to get the cost down. Nonetheless, I don't mind sitting on these rounds.
It is, after all, the ultimate flipping coin.
cheers
I carry an American Silver Eagle in my pocket. Works just fine.
Congrats on your endeavor and good luck.
I am not an investor and have had little education in it. I have been reading here at zero hedge, jim willie, max keiser, and just about everywhere I can think to try to get a better understanding of the silver situation. I am hearing people say it is going down to 22 an Oz and then I even was listening to Bix Weir of Gata who seems to think silver can go as high as 6000 an oz. I just want to have an emergency form of "currency" and have chosen silver. I only have 57 ounces but am hoping to get 43 more by end of March (to have an even 100)....that is the earliest I can get more. Can anyone tell me if the silver will be gone by then and if so what else can people buy for their rainy day funds. Some of us are living paycheck to paycheck but we also would like to have something put away to help when/if the next crisis comes (which seems to be looming closer and closer).
Although no one can predict for sure, I would say that "Yes" silver Eagles will still be available by the end of March. Silver coins are about $2-3 over spot due to the coin premium and some just want to pay close to spot price so they buy the bullion, making the coins more available perforce. Are you buying bullion or coins, btw?
For cost saving, I rec that you buy 2 rolls of 20 coins each = 40 and then buy the 3 loose that you want. (Unless you're a bullion buyer.)
Other than that, silver nusimatic coins are an option (big premium though), you could also do boxes of nickels (nickel) and pennies (copper) for melt value.
~Misstrial
PS: If you're living paycheck to paycheck, you may want to consider an emergency food supply instead of coins (although its best, imo, to have both.)
Are you near a Trader Joe's? Canned foods, grains, canned & bottled drinks, pasta, dried fruit & nuts, honey, maple syrup, cooking oils, packaged mixes, cocoa, vitamin & mineral supplements.
Basically, you have to plan on being your own commodities market, bank, and treasury. You can be your own utility company too but that's another story (Honda 2000 generator - steadypower.com, RV batteries, solar radio, HughesNet satellite internet).
Thanks for replying back. Yes, I live in rural area, not close to much. I have to rely on internet. I have some supplies and planned to get the extra 43 coins, silver eagles, with tax return. So, coins and supplies is what I am working on. Just in case... Alot of people where I'm at don't have anything, very depressed area....Just want the coins for an ultra ultra emergency. Would be nice if they did go way up eventually, but that is dreaming, and best to keep to practical..
I didn't realize that about coins versus bullion. I have to keep to coins, so looks like there should be some. Thanks again. Very nice website. Lots of information and I will return.
:) Don't forget that gold & silver burn, so unless you have one already, look into a Sentry Firesafe lockbox. Sold at places like Walmart for about $20.00
Waterproof "safe": Take a length of plastic plumbing pipe (like what's under your kitchen sink) with screw threads on each end (2) , buy 2 endcaps in same width as pipe, screw on and voila - there's your waterproof "safe" you can bury outside or in a planter.
~Misstrial
Excuse me? Burn? Melt perhaps, but definitely NOT burn!
It is hard to read the chart and comment while driving, but somebody is going to get some 32 dollar silver delivered in the future. I hope they like the price!
Don't crash! That will just give them reason to outlaw silver.
"The State Patrol reports he was driving under the influence of Silver and not wearing a seatbelt!" :>D
Comments are the new bathroom graffiti!
I understand the excitement on the fluctuations in silver, but at some point remember silver will be worth ZERO DOLLARS. The collapse of the dollar to nothing is inevitable, so why the worry? Let Blythe beat down the price and as obvious as it is, use those lows to buy more physical.
Let's see... 1min chart, no volume, MACD histogram preparing to pass below 0, just wait for the Monkey Brigade!
edit: ooook! oooook! here they are!
Wouldn't that be more like the PoS approaching infinite dollars.
Just sayin'
Actually the dollar going to zero runs the price towards infinity. Your mistake comes from not substituting the word dollar itself with zero. If you do that, then your statement becomes, "silver will be worth zero zeros," which sounds nonsensical, but is logically correct.
That said, I agree with your premise. BTFD!
32.39...
yeah, this oh so justifiable.....
And in CHFs the price is diving even faster.
31.85
solid silver
submarines ...
how about 31.80?
One month day for 100oz Ag bars at my local dealer (Camino Coins in Burlingame, CA)...
Oops! Silver just pooped a lung.
PS - BTFD!!!!
Harr harr harr....
Looks like it's about time to BTFD...
Silver and gold are both dropping now. Somebody is liquidating, porbably related to the liquidity issues in Europe and Middle East (Saudi king dumping to bribe his people?) The miner hedging is so much bull shit, its silly.
Sweet - me go buy mo physical!
China's loading the jumbo jets as we speak.
Don't be a last man standing
math man
your nose is growing longer ,, for some one who pretends about silver,,
get up to date with the real story,
some are dumb as a stump.. and believe spewing is the same as seeing .
so a few miners went short ,, during the gold short miner grotesque.. gold just went up .. gold miners escaped with major losses
same will happen to the silver guys ,
gold just kept going up as will silver check back in a few weeks and give your story again with a thred of credibility
They aren't taking losses by hedging they are just protecting a small portion of their gains. I don't see a problem with insuring the cash flow which is already at a profit. They may well have gotten pressured to hedge. They also have a responsibility to share holders but private mines are likely not even considering hedging.
On your toes, Math Man!
You are crossing swords with an Old Master here at ZH. Who has been correct since I first noticed his replies a long time ago. He writes in a way I really like. Visual poetry.
I guess you were not around when Bravo / Bater put up one HELL of a troll-ey fight here at ZH, and dumpster was one of the guys who threw him into the trash...
...
Oh, and careful with tmosley while you are at it. Far as I can tell, he is very smart.
Same with akak, same with DosZap.
But, WE DO need guys around who DISAGREE with us PM bulls, you help keep us alert.
ZH is a great big playground with plenty of room for everyone!
by DoChenRollingBearing
on Thu, 02/24/2011 - 16:03
#994668
On your toes, Math Man!
he needs to be on his knees lol
oKay. So the entire middle east is in flames, oil is circling 100, and silver gets taken to the woodshed--while stocks have barely a hiccup today.
It's all making perfect sense now.
No manipulation goin on here, nothing to see.......
This is all because of snow.
It's frustrating that the PMs are always on a slow, long struggle to climb and in one instant they get slammed by TPTB only to have to resume the hike upwards again.
It's not easy and it's not fast but with patience and perserverance the struggle continues to new highs.
The 100 point swings in the markets would be strange too if it weren't so common these days.
Oh and the dollar is still like a sick animal dragging itself to its final resting place.
Oh, interestingly--SLV is down far more than PSLV--2+%. What does that tell you?
In-fucking-deed! Last time I checked - about a week ago - I recall the difference wasn't there (or did I check GLD vs. PHYS?).
But I'm not sure what it tells me. PSLV normally trades at a premium while SLV is unallocated so I wouldn't expect them to behave exactly the same. I would think that SLV falls faster since it can faster adjust its (paper) holdings. If you compare GLD vs. PHYS you'll see the same thing - some days, for some reason, stand out (e.g. GLD vs PHYS on Feb 3, 2011).
I know what you mean - divergence between the two is defititively something to look for, but there are too many weird things happening every day, it's damn difficult to figure it all out. One day SLV may drop much more than it should, but unfortunately I don't think I'll know until it happens and I read about it here on ZH...
slv is being raided by the china buy silver gang.
they have found the buy buying shares ,, Lot's of them it makes them eligible to get silver on the sly with our moving the price ,
slv will be all potatoes and no meat , as it is forced to transfer the silver to the stornf hands
be in slv at your own risk ,, it will be an empty shell
Gold,Silver,Au,GG,ABX,XAU,all headed lower as I posted they would from 34.00 silver. Never went above 34.00 after I posted. Once again, I repeat, next stop 22.00-23.00 on silver (before36.00)
This was the best trade I ever made. Got long 8.88 to 12.80;got out 34.00.
Bon Jovi in Madison Square Garden tonight. Best day of my life!!!!
Oh No!
I am not gonna be baited into junking you!
I know sly irony when I see it!
Bet your life on it, idiot.
If you win, maybe you can buy a longer attention span.
Bon Jovi sucks.
by RED BARRON
on Thu, 02/24/2011 - 15:58
your so full of it .. once again a shill posing as some great trader ,, out at 34 my broken leg .
and a distinct aroma of spit in a back yard pile of dirt ,
licking sand with little league shoes
+ $31 (or what???)
So visual, so beautiful...
Did they put LSD in the orange juice I had at lunch?
Poof..it's gone :-(
Hey Tyler, I think Blight got your love note, so she smashed the spot down so the contango is mostly flat now.
She put her rather large foot down at 3:15pm today. Not very subtle, Blight.
It's a knee jerk reaction to a fucking RUMOR that Col K was shot. When the bullshit stops flying about all this will settle down and folks will likely see it as a buying opportunity. Col K alive or dead, the fundamentals have not changed.
Fundamentals bitchez!
BTFD Bitchez.
Thank you Blyth !! My stack just got bigger!!
wonder what the 2 Algerian Army C-130's were carrying that landed here in Eindhoven 01-28-2011. Certainly it is rare, they never enter our airspace unless in emergency situations. Only 1 was reported but there were 2
wonder what the 2 Algerian Army C-130's were carrying that landed here in Eindhoven 01-28-2011. Certainly it is rare, they never enter our airspace unless in emergency situations. Only 1 was reported but there were 2
sorry, double post
math man i see a blue candle
i may not have said so in a while, but silver (and gold) are in severe and permanent backwardation.....the twilight of the fiat terrorist regime is nigh....
fuck the banksters, the rockefellers, the rothschilds and all their mammon ilk....
take to the streets and deliver your lives from the bondage of debt and servitude to these vile whores of beelzebub....
Here's one monkey-wrench into miners' forward selling....if it's the miners selling, then why would the lease rates remain so high ??
For sure won't miners not involved in borrowing silver while already holding it in the ground !
Good point!
I know from past experiences that not only will Blythe not give me the courtesy of a reach around, but she also will not be sending any of her girlfriends over to give me a blow job with the raping I received on the market today. Damn, I lost a lot of profits. Fortunately I was hedged well so I didn't post a loss on the silver trades (AGQ and ZSL). However, I didn't get any lube with my oil raping. Fucking eh! Chit mainge!
Tyler, I would like to humbly suggest a thread be opened for those of us who really need to type in all caps cussing and screaming. I realize not everybody wants to see that, and that's why I'm suggesting a different thread just for those of us who want to lay into it. Perhaps the thread could auto-delete in 12 hours or something like that. I feel most comfortable letting loose here at ZH because of the relative anonymity, and I really need to let loose on Blythe and TPTB. Today's manipulation was so extreme it can't be rationalized by profit taking, ETF splits, window dressing, etc. The DXY didn't even freaking budge while PMs and oil tanked. Silver should have held at least SOMEWHERE in the 32 range. This is such fucking bullshit. And yes, I will BTFD as soon as I can find it. 31.50? 31? 30? Who fucking knows at this point.
More to rant later....another day like today and I'll be channeling Q-Daffy Duck.
Don't forget about late 2008.
If Saudi Arabia falls and oil goes to $200+ then we get another systemic failure in the financial sector. When that happens bad money drives out the good; amongst the first things to get sold off to make margin calls are the precious metals. THEN you hire a truck, back it up and BTFD.
I've been a silver accumulator for over ten years with no long interest in gold (occasionally short). The rationale has always been the imbalance between above-ground silver and price relative to gold (far, far too low). But I haven't participated in this recent runup. I stopped buying at $20 and am quite happy to just ride it out. If Saudi falls, I will distribute aggressively during the short term "flight to safety" that silver will hopefully enjoy, then BTFD when system failure takes it back down towards 15.
You may be pissed about your current situation but physical silver is a long-term play and it lets you sleep at night. Seriously, don't underestimate the value of the mental relief it provides to own physical metal (just don't store it under your bed: I'd recommend Perth Mint allocated as it's fully guaranteed). Provided the Bernank remains hell-bent on preventing deflation, then (y)our position is ultimately good.
Also, don't think that you have to "buy it all NOW". Just relax. If you really believe it's a good trade (as I do), then commit to it, yes, but take your time, accumulate it slowly and don't sweat every wiggle of the price.
Thanks Mediocritas for the kind words. I'm good with the physical, and will continue to accumulate, and I'm not freaking about that part of my portfolio. I am however freaking about these fucking manipulated paper plays. Damnit! How is this shit legal? Man I miss the old days when we had things like the uptick rule. It's times like these that I understand why many at ZH have gone all physical. It looks like I haven't been fucked enough yet to get out of paper, although I assure you I have been raped hard a few times. I don't know how much more ass pounding I can take before I take my toys out of the sandbox and go home. This sucks.
Anybody seen Bigger Dickus? he said silver to 25. Now we have Mathman with silver 20.
Troll life expectancy on ZH decreasing rapidly. I give Mathman a week at most
If dumpster decides Math Man is the pet-troll-of-the-week, you'll have to go out and hire someone else, sigh, yet again and real soon.
Good help is hard to find, no? Must be tough working for Blythe, I can ONLY see you doing it for the money...
Is backwardation in the futures market caused/impacted by increased selling of forwards?
As I understand it:
Future = standardized, exchange-traded, margined, settlement risk managed by a clearing house...
Forward = non-standardized, OTC, no margin, private party contracts with counterparty risk...
It seems you are confusing forward and futures contracts...
Besides, the idea of selling a forward to hedge production is laughable. First, you hedge risk (i.e. the risk of price declines, fx, bad weather, etc.), not production. Second, what is there to "hedge" regarding production? Maybe the risk of overproduction, but the future obligation imposed by the forward contract exacerbates the risk of underproduction (failure to deliver).
Your comment "They're all locking in future profits" is also flawed. They are claiming their future profits today, meaning those future profits will have already been claimed in the future.
I am failing to see your logic, but please correct me if I'm wrong.
Out of curiosity, does anyone know if silver is lent in the same way gold is lent?
From what I understand, gold is "lent" to miners/producers to sell in the spot market to fund current investment activities. Bullion banks act as the intermediary between the miners/producers and the market. So the BB "lends" the gold to the M/P and sells it in the spot market on behalf of the M/P. The BB provides the M/P with the proceeds of the sale, and accepts a forward sales contract in return (since gold was lent and not currency, gold is the principal that must be repaid).
This is much different than a M/P simply selling a forward contract. Physical gold (representing gold still in the ground) is sold on the spot market, which naturally drives down the price. This is how gold is "counterfeited" under the current system to suppress the price.
Before labeling this a conspiracy theory, please read this: http://www.gata.org/files/BarrickConfessionMotionToDismiss.pdf
It makes sense for bullish producers to sell forwards for CapEx; not as a hedge. There would be a huge incentive to increase production levels/capacity in hopes of growing sales volume if they expected prices to increase over the long term. I'd say they are making some strategic decisions that will pay off extraordinarily well. Even more so given the inevitable collapse of the paper PM market and the resulting explosion in physical demand.
Of course they could also sell forwards to hedge against downside risk. My whole point was that producers' market expectations are irrelevant when attemepting to determine the motivation behind selling forwards. There's a case for forwards in both bullish and bearish markets.
My $0.02... Maybe I'm way off the mark...
This was meant to be in response to Math Man's comment...
EDIT: I said "My whole point was that producers' market expectations are irrelevant when attemepting to determine the motivation behind selling forwards. There is a case for forwards in both bullish and bearish markets."
To clarify, since market expectations obviously do reflect motivation, I'll restate:
"My whole point was that guessing at producers' market expectations is pointless when attempting to determine the motivation behind selling forwards. There's a case for forwards in both bullish and bearish markets."
Likewise, it's pointless to try and infer producers' market expectations based solely on the fact that they're selling forwards.
Methinks we're about to take off! Who's buying the dip? Time to buy mining shares? I believe so. Nice time to buy was right at the end of the day. Let's see what happens! Bring it on shorts!
Just to clarify, the silver and green lines are showing increasing backwardation since 17 February, while the orange is showing there was no backwardation in Jan?