Silver and Gold Manipulation Explained

Terms in the video defined: (Source below)

Contango, where the spot price of a commodity is lower than the following futures contracts, is the normal condition in the precious metals futures markets. Contango is a sign that a commodity is in ample or adequate supply. 

Backwardation means that the cash or spot price is higher than the futures price for the same commodity.  Backwardation occurs when demand for immediate delivery outstrips the market’s ability to deliver the commodity.  Backwardation occurs when there are too few sellers of the physical commodity to accommodate all of the actual buyers, so a near-premium develops to compensate the sellers willing to part with metal in return for taking delivery later.  

When there is zero contango, it means that there is not even one futures contract that is higher than the current spot or cash price.  Zero contango and structural backwardation (where each succeeding futures contract is lower for most or the entire strip) is also known as an “inverse carry” market because the futures no longer compensate holders for the cost of carry, capital, storage and insurance relative to the spot price.

"We cannot overemphasize how unusual and rare it is to have zero contango in the silver futures strip."

Silver and Gold Manipulation Explai

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