Beware: Copper, Gold, Silver Sitting in Steep Contango

When it comes to commodity trading, few words are more serious in an investor’s vocabulary than contango. This phenomenon has been known to burn a hole in positions and cause problems for those who were not amply prepared. By definition, contango is the process whereby near month futures are cheaper than those expiring further into the future, creating an upward sloping curve for future prices over time. The reason behind this is most often attributed to storage costs; storing barrels of oil or bushels of corn isn’t cheap and the costs have to be passed down the line. Below, we outline three commodities currently exhibiting contango to help keep investors up to date on the current futures environment [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later ]. See the full story here → Related Posts: How Much Gold, Silver, or Copper Can You Buy with the New York Yankees Payroll? Will a Euro Collapse Wreck Your Commodities Allocation? Four Insanely Bold Predictions About the Commodity Industry Beyond TIP: Five Inflation-Protected ETFs Worth a Look Warning: Ignore Bill Gross’ Hard Money Prediction At Your Own Risk