Precious metals prices are normally in a contango.

Discussion in 'Bullion Investing' started by Ginger1, Mar 5, 2011.

  1. Ginger1

    Ginger1 Member

    It means you pay more for future delivery than for immediate delivery. There are several reasons for this. First, banks are willing to offer huge “loans” to buyers of forward and futures contracts. They are rarely, if ever, willing to do that when people buy for immediate delivery. The reason is that if a silver long buyers just want to speculates on the price of silver, it costs little to nothing for a bank to let him do that.
     
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  3. Coin Chick

    Coin Chick Loves Gold

    That does make sense. Which one do you usually do?
     
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