Paying a premium on assets influenced by supply and demand is nothing new to the precious metals and retail industry. You want or need something in short supply, you’ve got to pay a certain price. On the surface, supply, demand and costs are simplistic, but when you delve deeper and find backwardation and contango impacting…
Silver Markets Currently Experiencing ‘Backwardation’
Like many other things seeming ‘backwards’ these days, the silver market is technically in a state that’s literally referred to as ‘backwardation.’ Basically, backwardation is a situation where a commodity’s spot price is more than its forward futures price. It’s very unusual and means investors are paying a premium to own commodity now rather than…
