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