Shanghai Silver In Backwardation

``Today the front month silver contract on the Shanghai Futures Exchange (SHFE) closed at an 8 % premium over London spot. Therewithal the futures curve of silver is in backwardation; silver is scarce in Shanghai... one could, for example, sell 900 Kg of silver in August for 3,845,700 RMB (900 Kg times 4273 RMB) and buy back the same amount of silver delivered in December for 3,819,600 RMB (900 Kg times 4244 RMB). This trade would make a profit of 26,100 RMB in 4 months on 900 Kg. ''