Silver purchaser beware…
by Keith Weiner of Financial-Metals
Each now and again, one regrets not appearing sooner, or not appearing quickly sufficient. In our case, we didn’t publish this Tuesday night. We must always have. At the moment the worth is down, and others may name for decrease silver costs.
Oh properly. Our comfort is that they most definitely usually are not calling for decrease silver costs based mostly on the identical indicator we observe.
Right here is the chart.
Silver Worth Foundation Chart
Take a look at that moonshot!
foundation = future(bid) – spot(supply)
cobasis = spot(bid) – future(supply)
As the worth has risen since February 25, from below $24, to yesterday round $27, the silver foundation shot up. It went from 0.67% to 4.18%.
Silver Purchaser Beware
People, it doesn’t get any clearer than this. The massive value rally in silver was pushed by massive shopping for of silver futures.
NOT bodily metallic.
This isn’t a bullish signal. Those that purchase futures are taking part in with leverage. In the very best of occasions, they are going to promote to take income. And in risky occasions, they might must promote to cowl margin calls. Even when the silver value is rising, they might have margin calls on different positions of their portfolio. Or they might simply be jittery.
Argentum emptor cave.*
*Silver purchaser beware
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