Gedankonomist

Silver Backwardation Bout Ends as SLV Fails to Announce New Custodian

'"backwardation" means that silver to be delivered today is now being priced higher than metal to be delivered later.'

That could mean one of two things; either (1) buyers are skeptical that some or any silver will be delivered at said future date or (2) the price of silver at that future date is expected to be less, relative to inflation.

I know most people do not redeem the silver at the future date, but if there is another buyer who does, and he does not receive what the contract (implicitly or explicitly) says he should receive, then the worth of all the contracts goes down.