While the COMEX continues to bleed deliverable silver, traders continue to discount back months of silver on concerns that there will be no silver remaining when the contracts come due (or distrust in the US dollar).
Silver remains in backwardation beginning with May 2012 contracts on out.
Front month contracts settled Wed 6/22 at $36.734.
From front month through March 2012, silver remains in a slight contango (normal market conditions).
May 2012 is now trading at about a 1 cent discount to front months, and backwardation increases to a $1.01 discount for the Dec 2015 contract.
Apparently NO ONE believes the cartel will have any silver left by the end of 2015 (we sure don’t).
|Daily Settlements for Silver Futures (FINAL)Trade Date: 06/22/2011|