It was reported last Friday that the March silver contract had moved firmly into backwardation. Short term lease rates also rose strongly. Sprott's PSLV permium rose to ~30% which might be the catalyst for him to start buying physical silver for the shelf filing. Anyone else think we might be about to repeat February 2011?
Silver backwardation and rising lease rates
I think silver backwardation simply indicates that most investors think the price will be lower in the future than at present.
The guys such as SGS who promote backwardation as if its the second coming of jesus are misinformed at best, and dead wrong at worst.