Silver in backwardation — again!

Silver’s backwardation between London spot and Comex futures is back. Silver’s mark down by nearly 15% on Monday was a false flag…

At a time of light trade when industrial buyers are on a seasonal break, the opportunity to bang the silver price hard could not be missed. The excuse might be increasing margin requirements on both Comex and Shanghai Futures, but that is immaterial when speculators are broadly absent. It has led to a sudden return to backwardations (at the time of writing spot was $77.60 and March future $77.45).

Instead of being shaken out by desperate shorts, the wise owl sits on his silver hoard unperturbed. Unless China relents on its new restrictive export licencing requirements due to apply from next week, the rest of the world will have to pay up, up, and up to get physical metal.

Remember this every time someone tries to scare you into selling your silver!

A happy silvery New Year to all my subscribers!