14
February
Silver in backwardation as COMEX stocks hit 4-year low
14 February 2011 Mineweb
The tightest physical silver supplies in four years tipped the U.S. silver futures market into backwardation last week, making near-term prices more expensive than more distant months.
Market watchers said that it has been more than 10 years since silver futures were last in backwardation, an unusual term structure, associated with shortage of physical supply. Warehouse stocks of the white metal have dropped to a four-year low on surging demand, while miners have hedged their future production.
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