Market Curiosity: Exploring Markets And Systems

January 21, 2011

James Turk: Silver is in backwardation an unprecedented for 12 months forward

Filed under: Just Watching — Tags: , , , , — Jeff Fitzmyers @ 6:01 am

I might not know the exact definition of things, but James Turk of GoldMoney and Free Market Money Report does. His trading comments for January 11th 2011:

Silver is in backwardation, and not just for a few months. As reported by the LBMA, the SIFO rate shows that silver is in backwardation for 12 months forward, an unprecedented development. This disconnect between the paper-silver and physical silver markets is huge. The silver shorts simply cannot hold the paper-silver market down here any longer without seriously discrediting the paper-silver market as a price discovery mechanism.

Watch for today’s Comex open interest report. If there was not a big drop in silver O.I. yesterday, then silver is ready to rocket higher.

I will post a long term SIFO chart this weekend.

References: LBMA Current stats

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