The potential for a short-term price spike for gold and silver as May Comex Futures roll forward, a reasonable amount to pay for 1,000 oz silver bars, and why April 2022 is different than April 2011

CPM Group’s Jeff Christian discusses the short-term outlook for gold and silver. He touches on reasonable premia for 1,000 ounce silver bars. He then discusses the potential for a short-term price spike in silver prices as the May Comex futures contracts roll forward. He reviews data from April and May 2011, when the Comex May futures roll pushed silver prices sharply higher during April, only to fall back within five days once the roll was over. He contrasts the silver market in 2011 to that in 2022, saying such a spike is highly improbable given current market conditions, but emphasizes the effect the forward roll of nearby active futures contracts can have at times on prices.

Courtesy of the CPM Group