Market Curiosity: Exploring Markets And Systems

December 29, 2010

UPDATE: LBMA silver backwardation ended, with a surprise

Filed under: Just Watching — Tags: , , — Jeff Fitzmyers @ 8:21 am

UPDATE Jan 22: Cleared things up here.

UPDATE Jan 19th: Newest backwardation post: UPDATE: LBMA SIFO must be a mistake? Looks like huge backwardation It appears I have flipped “backwardation” with “lease rates”, again. The info below probably refers to lease rates and not backwardation. I likely misunderstood someone else’s explanation. I will determine exactly what is what this weekend and update these posts. But the posts still indicate more demand than supply in the LBMA silver. It’s just the incorrect label. END UPDATE.

The recent backwardation lasted 8 days — with no associated silver sell off. — unlike the past 2 backwardations of this year. If silver shorts were not able to engineer a selloff, prices could rise for a while. Buy dips in SLW.

The 3 arrows point to times when nearby lease rates are greater than further out lease rates.

Referencing:
LBMA 1 Month Silver Forwards > 2 Month SIFO For Past 2 Days

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