Ruh Roh...silver no longer in backwardation

[Earthjade]

http://dailycapitalist.com/2012/02/17/the-arbitrageur-silver-backwardation/

The flood of liquidity provided a cover for selling of physical metal, and prices actually rose during this process. Now the banks have corrected their duration mismatch in silver lending (or whatever was the root cause of this persistent backwardation). Once this process plays out, then the marginal buyer of futures leaves the market. If the new non-backwardated state holds, the price of silver could fall hard.

The irony of this is that the conspiracy theorists of the world will attribute the price fall to naked short selling of futures. As soon as the bout of liquidity ends, watch out below. And watch for the conspiracy theorists.

This hasn't been covered on any permabull site I have seen.
Usually, they spruik up the fact that silver was in backwardation for a long time.
I think they'll say nothing more about it now backwardation no longer applies.

Could it be bad for silver?
At face value, probably.
But no rules seem to apply to anything these days.

 

[thatguy]

http://dailycapitalist.com/2012/02/17/the-arbitrageur-silver-backwardation/

The flood of liquidity provided a cover for selling of physical metal, and prices actually rose during this process. Now the banks have corrected their duration mismatch in silver lending (or whatever was the root cause of this persistent backwardation). Once this process plays out, then the marginal buyer of futures leaves the market. If the new non-backwardated state holds, the price of silver could fall hard.

The irony of this is that the conspiracy theorists of the world will attribute the price fall to naked short selling of futures. As soon as the bout of liquidity ends, watch out below. And watch for the conspiracy theorists.

This hasn't been covered on any permabull site I have seen.
Usually, they spruik up the fact that silver was in backwardation for a long time.
I think they'll say nothing more about it now backwardation no longer applies.

Could it be bad for silver?
At face value, probably.
But no rules seem to apply to anything these days.

It has been in backwardisation for a long time, during that time price went up and price went down. I suspect that now it is not in backwardisation the price will go up and price will go down

 

[RetardedMonkey]

It has been in backwardisation for a long time, during that time price went up and price went down. I suspect that now it is not in backwardisation the price will go up and price will go down

Sounds like you've been listening to too many of Mr. RetardedMonkey's commentary videos on Youtube.

 

[No1joey]

I think it could go up OR down..

 

[Silverthorn]

I suspect physical demand has eased a bit. Perth Mint is going to do some 2 and 5 oz lunars and ASE sales are a bit slow this month. Might take a move above 35 to get some momentum type people involved.

 

[smokey]

the reason this has not been covered by perma bull sites is because silver is still in backwardation
look at the july 15 contracts and the following three months
we are near but not yet