normal contango/backwardation results from perceived demand/supply imbalance-price risk transfer. contango/backwardation results from storage cost/convenience yield difference?- correct me if I'm wrong
As a commodities investor I just want to say that backwardation is rare and frequently bullish. In a nutshell it means investors are willing to pay a premium for something (silver for example) now instead of holding off delivery until a later date. This often precludes shortages of varying degrees and likely upward price movement. The reason this is kind of counter-intuitive is because metal in 9 months should be more expensive just based on storage costs, people demand real metal, not paper.
normal contango/backwardation results from perceived demand/supply imbalance-price risk transfer. contango/backwardation results from storage cost/convenience yield difference?- correct me if I'm wrong
arniejunior 11 months ago
you have lost your way,
asdee01 11 months ago
As a commodities investor I just want to say that backwardation is rare and frequently bullish. In a nutshell it means investors are willing to pay a premium for something (silver for example) now instead of holding off delivery until a later date. This often precludes shortages of varying degrees and likely upward price movement. The reason this is kind of counter-intuitive is because metal in 9 months should be more expensive just based on storage costs, people demand real metal, not paper.
capslockbandit 11 months ago
lul
DanGuerrer0 11 months ago
3rd comment ! wooo
SainterX 11 months ago
yay khan!
DeltaCommando52 11 months ago
hi
GenieInAFantaBottle 11 months ago