Silver Backwardation a Result of COMEX DEFAULT RISK
Backwardation in a commodity can be caused for 2 reasons. Either traders want out of the currency (they have no wish to receive US dollars when future contracts expire as they fear those dollars will be worthless) OR they fear that the physical commodity will not be available for delivery when the contract matures. If a lack of confidence in the US dollar was the PRIMARY cause of backwardation in silver, clearly we would see a significant backwardation in the GOLD MARKET AS WELL! The lack of coinciding backwardation in gold indicates that major players are concerned about the SUPPLY OF PHYSICAL SILVER!
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Backwardation, Comex, Default, Result, risk, Silver
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