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<p>[QUOTE=&quot;InfleXion, post: 1720891, member: 29012&quot;]I am not talking about spot price. Spot price is highly influenced by futures. Comparing spot to futures to make any determination for backwardation is recursive and muddy. You need to compare the physical price to the nearest future. </p><p><br /></p><p>The only thing that I would infer from backwardation is that the futures price is becoming less relevant. Arbitrage only works if you can take delivery of your metal for the price of the future. So the big timers can do that but nobody outside the exchange system can. Most of the futures get rolled over further into the future anyway and aren&#039;t very relevant for actual buyers and sellers notwithstanding that it does influence the spot price.[/QUOTE]</p><p><br /></p>

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