Spot premium, as the name implies, means that the spot price is higher than the futures price. In the silver market, the spot silver price is higher than the futures silver price, and the recent month contract is higher than the far month contract. In precious metal futures market, when the relationship between supply and demand is normal, forward contracts are usually given more premium because of various storage costs and opportunity costs, that is, the price of forward contracts is always higher than the contract price. Once this situation is reversed, it is abnormal. As James Turk commented, spot premium is not uncommon for ordinary commodities, but it is a great event for silver, a precious metal, which is often accompanied by major changes in its price.

Turk pointed out that the spot premium phenomenon means that there is a shortage of supply or a sudden increase in demand in the silver market, and the market pattern of short supply will promote the rapid rise of silver prices. It is expected that this phenomenon will not stop in the short term, and the spot premium may be as long as 12 months!

Turk mentioned that there was a spot premium in the silver market in June 5438+ 10, 2009. In the following four weeks, the price of silver rose sharply from 10.50 USD/oz to 14.50 USD/oz, an increase of nearly 40%. If the silver price can seize the spot premium opportunity, then another round of strong rebound will be ready. In the next few weeks, it is not a problem to break through the 30-year high above $365,438+0 hit in early February.

In addition, it is worth mentioning that the demand for spot silver in China is growing rapidly, and the import of silver in this country increased by 400% in 20 10. There are indications that China is expected to become the leader in the global silver market.