iShares SLV Trust: The Backwardation, Correction And Shifts In Perception In The Price Of SLV

Since 2008, silver future contracts have flirted in prices with a great sign of backwardation. This normally occurs when the current month's SLV future contracts tend to command a higher price premium as compared to the futures contracts of the subsequent months.

The corrections in the Price ofSLV expressed a downward trend. And it appears as though SLV is being pushed by a cliff towards the concentrated shorts so that the perception of retail investors can be heavily influenced.

More surprisingly, the downward move in the Priceof SLV does not really seem to convincingly depict a reality in these corrections. This is highly attributed to the fact that the SLV Quote has never been too high. Mutual fund experts say that this price seemed too high to manage the shorts; hence it had to be muscled to a lower one.

However, with the decreasing value of the dollar, the backwardation in ETF SLV will take a U-turn because the investors will tend seek alternative investments which are not directly affected by the dollar—precious metals.

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Live 24 hours silver chart [ Kitco Inc. ]