www.gotgoldreport.com/2011/02/near-zero-contango-in-comex-silver-futures.html I have been reading this weekend about this zero Contango in the silver futures. Really big news, for us bulls. It means the race is on for physical silver. Hang on and enjoy the ride. Please post links about silver. Thank you.
Yes the interesting thing is, you entice people to buy future contracts at a lower price then spot today. No takers. year 2015 contract, price $29.10 (cheaper then the current price). Still no takers, lol. Seems like everyone wants physical now. Slam
http://harveyorgan.blogspot.com/ No takers is an exaggeration, less takers yes (brave takers really). The point is, all futures contracts circulate around the current spot price. 4 years from now similar price? how about inflation? cost of money? It seems the people that know whats going on, cannot trust that the comex can deliver in 4 years time. Slam
This amazing... What can Comex do? If they can't deliver the silver... they will just offer a premium to buy back some of the scheduled deliveries of silver. Just more way to control the market.
i just made an order at abc sydney, they said its not cming till end of march... hope they wont take mine
I dont see problems with long term futures being at a discount because of natural uncertainty in the lng term. Out to 12 months with discounting on the other hand is true backwardation.
If the hedge funds start to smell a Comex corpse, they will start to circle. Buy up contracts en masse then demand their physical which the Comex wont want to or can't deliver so then offer a cash premium, probably around 20% not to take physical. 20% gain for maybe 1-2 months of time on your cash outlay, nice return. And whats the worst the hedge funds can do anyway? Take their physical and then sell it. Not much downside risk and upside strong.
Pretty good articles on Backwardation & Contango and the implications. Case of Gold. BACKWARDATION THAT SHOOK THE WORLD Antal E. Fekete Gold Standard University Live http://professorfekete.com/articles/AEFBackwardation.pdf RED ALERT: GOLD BACKWARDATION!! http://professorfekete.com/articles/AEFRedAlert.pdf
I don't see any problem with this why would you trade 2015 futures anyway. You would normally just trade this years futures or trade the CFD so the rollover date is not met ( I assume if your trading 2015 futures you dont want delivery )
I am surprised you folks are not cheering the COMEX on in truth. They're doing us a massive favour by keeping the spot price low to buy our metal. Can't you feel the control slipping from their grasp? We're seeing more and more of these close calls in the paper markets, the manipulators are holding on for dear life as the physical market keeps asking questions! I'm personally cheering the COMEX and manipulators all the way. Let the paper market ride for as long as it can I say, keep the prices for us plebs low because once it's all over - it's all over. Stack what you can, whilst you can and enjoy the ride!
I dont agree with that. It is only good if the game is given up eventually. What if they kept the game going for your entire life? You stack sivler and gold all your life knowing the fraud that is being played, but never get the opportunity to 'cash in'. Think about those people that were 50 wheen they started stacking in the 80's
There's a trigger in the market mate that will signal the end of the paper market. Exhaustion of the silver supply in physical. Right now, the 'silver story' is a secret to most. Even those who are buying SLV don't realise there's virtually no physical to back it. You wait until Bloomberg and CNN start reporting there's no physical that you can buy at any price and those contracts and SLV stocks are shown to be worthless to trade for the real thing. This is absolutely a ticking time bomb and the paper market has it's days numbered. Back during the 80s when you bought silver, there was over 10 billion ounces out there. Today, it's less than 1 billion. We've never needed the stuff more than now judging by industrial consumption and patent lodging on silver tech - yet never has there been so LITTLE of the stuff to buy. The game has changed from the 80s mate and whilst I am extremely reluctant to say 'it's different this time' (*cringes*), there's mitigating factors at play here which have a very real timeline pegged to events in the silver market going ahead. This is even before we start to consider the fiat games unwinding globally as we speak and the unprecedented demand for physical from investors. I mean, look at ASE sales alone! It's getting NUTS! If you don't believe it, then by all means put your metal up for sale here and get out whilst the rest of the suckers here are willing to pay top dollar for it.
Let's say the COMEX and LBMA default. What then becomes of the silver 'spot price'. How does this now get 'set'? Who would know how much silver is worth? Is it back to Lord of the Flies? Just curious!
Market demand will set the price, as all free markets operate. This is why we are already seeing a real disconnect between paper and physical prices in these markets. The free market is looking to set the price on physical independent of spot.
