Replies to post #1743 on ProShares Ultra Silver (AGQ)

[xero90]

You're correct. At one point there will be divergence from the Comex. 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. Spot at 26 may be the point all hell breaks loose.