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<p>[QUOTE=&quot;mikem2000, post: 1718542, member: 30574&quot;]Actually Chris, What InfleXion is talking about is true Backwardation. The real &quot;spot&quot; price which of course is for investment grade silver has been higher than a futures contract. Not by much, but it is there, or was there. These things are fleeting. This is not refering to the ridiculous premiums folks are paying for those &quot;trinkets&quot; which are sure to fall back in line. So a person who is willing to part with their physical &quot;investment grade silver&quot; can guarantee a profit, albeit small, buy selling their physical and buying a futures contract.</p><p><br /></p><p>Now the bloggers are jumping all over this and of course the lemming permabulls are as sure to follow as the sun rising tommorow. They are saying this exists because people have lost faith in paper and the dollar and nobody wants to sell their physical, or there is such a shortage of physical that there is not enough around. Off course they are just spewing their rubbish again. If people had really lost faith in paper and the dollar, we would be seeing soaring interests rates and the dollar falling. But interests rates are minisule and the dollar is strengthening. So this is obviously not the case</p><p><br /></p><p>It appears the true reason is more likely the collapsing interest rates have caused a situation where folks would prefer their bullion a bit sooner than later since the true interest rate for cash may actually be negative. </p><p><br /></p><p><br /></p><p>Sorry stackers, but backwardation is no guarantee that PM&#039;s will be rising any time soon.[/QUOTE]</p><p><br /></p>

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