Market Curiosity: Exploring Markets And Systems

March 11, 2011

Silver update March 11 – backwardation changed a bit, James Turk flatly saying, “Short squeeze”

Filed under: Just Watching — Tags: , , , , , — Jeff Fitzmyers @ 11:05 am

James Turk: Short Squeeze In SilverThe white bullion market is tight, and the short squeeze in the futures market is exerting a constant upward pressure on the price… Silver is performing exceptionally, outstripping a vast array of commodities and stocks. Even unrest in the Middle East has not stopped the price increasing, whereas during similar circumstances in the past, silver would have taken some serious blows… As far as silver is concerned, we are living in exceptional times.

As of the London fix, it would seem the correlation has ended, but then silver is currently up a fair amount today basis the COMEX. It will be interesting to see how this plays out!

Current backwardation — 1 month SIFO is now not in backwardation, but the 12 month has little buying interest compared to all other months. Almost all the months are inverted from normal.

The complete LBMA SIFO history.

COMEX partial backwardation front month minus Dec 2015 = 1.048 $/oz. The shape and depth of the tern structure lines has been about the same for the whole (partial) backwardation.

Seems like demand is firmly in charge. (Silver metal is still leading SLW.)

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