I've been asking for others to explain to me the relevance of Comex inventory for days. Feel free to share, because all I'm getting is...... {crickets}
Clear I don't know why you bother - try and ask the chirping cricket it may be more valuable ( perhaps that is his selfie?). wrcmad knows exactly what you are implying by backwardation in PM. So he gives you a definition instead of explaining why prices are higher now than at a future date - so cunning a plan Baldrick.
Yeah, I thought this was where this line of questioning was going. So, rather than get into another bout of permabull-bubble-popping straight away, I thought it best to give the benefit of the doubt to your knowledge.... but to no avail, you are still spewing the permabull rhetoric. I tried to hint in my definition above, but it is obvious you have been blinded.... not sure if you're blinded by emotion, pride, ego, or something else that makes you go blind? Strike one! Forward rates being higher than spot does not define backwardation. Try again. Or maybe you could answer my original query about COMEX inventory with something other than another question? But I doubt it.
I thought backwardation means the futures prices however many months out are lower than the current months prices?
Nope. But the permabulls will tell you that all day (it is in their interest to have you believe it).... and the blind just keep eating it up.
The term backwardation, when used without the qualifier "normal", can be somewhat ambiguous. Although sometimes used as a synonym for normal backwardation (where a futures contract price is lower than the expected spot price at contract maturity), it may also refer to the situation where a futures contract price is merely lower than the current spot price. From https://en.m.wikipedia.org/wiki/Normal_backwardation
It may, but forward price comparison is by no means decisive because it is not a measure of backwardation. I'm sure Ronnie will be able to explain it better... :lol: Hang on, he had better ask Baldrick.
I will continue watching Blackadder as he is far more entertaining than wrcmad and certainly Baldrick is far smarter. I suggest wrcmad write a new definition of backwardation for Wiki, one which covers all the subtle angles. Meanwhile, we the permabulls will continue sitting tight on our PM. wrcmad can then continue loading up on investment properties with bank debt yes another cunning plan as the market peaks out. Seriously ......
Ok this is what comes up first thing when I do a Google search for 'meaning of backwardation' backwardation bakwde()n/Submit nounSTOCK EXCHANGEBRITISH a situation in which the spot or cash price of a commodity is higher than the forward price. "the development of a backwardation is associated with supply shortage" So you can have your own theory on what backwardation means but in the REAL WORLD that's what 'backwardation' refers to. If you have a problem with that and still believe you're right then take it up with Google.
Ok, I'll ask. Why are people discussing backwardation? And in what sense is it being used? Wikipedia tells me that, in the case of silver, it is sometimes applied to forward prices of other things, not futures contracts: From JMBullion, I see something that may apply to a short-term production capacity shortage of silver: Another take on it from a gold broker site I see:
I wouldn't piss on Wiki for reliable info, because it geniuses like you who make the entries. I don't have debt on IP. If you keep doing this, you will go blind. So, it seems you are unable to explain Comex or backwardation? :lol: Yet you have so much to say? It would be nice if you could make a constructive contribution.
