Best of the Week
Most Popular
1.China Crash, Greece Collapse, Harbingers of Stock Market Apocalypse Forecast 2015? - Nadeem_Walayat
2.Gold Price Awaiting Outcome of Greece Crisis - Clive_Maund
3.Gold Price Peculiar 6 Month Cycles - Rambus_Chartology
4.Gold Price Just a Little Bit More - Bob_Loukas
5.8 Unprecedented Extremes Indicate a Stock Market Bubble in Trouble - EWI
6.Gold And Silver – Without Either, You Will Be Greeced - Michael_Noonan
7.Lies, Damned Lies and Statistics - James_Quinn
8.China Crash, Greece Crisis Harbingers of Stocks Bear Market? Video - Nadeem_Walayat
9.Gold and Silver Record Shorting - Zeal_LLC
10.Markets Big Deflationary Downwave Quick Reference Guide... - Clive_Maund
Last 5 days
Stock Market Critical Week Ahead - 3rd Aug 15
Gold Price Near Intermediate Bottom - 3rd Aug 15
Stock Market Reluctant Primary Wave IV? - 2nd Aug 15
Power and Compassion - 2nd Aug 15
Preparing for The Stock Market Crash - Inverse ETFs and Puts Timing... - 2nd Aug 15
Commodity Prices Slump Signals Slow Economic Growth Outlook - 2nd Aug 15
BSE Sensex Stocks Bear Market Underway - 2nd Aug 15
What Microsoft’s Dismal Earnings Report Really Tells You - 2nd Aug 15
Gold And Silver Charts Are The Compelling Story. Fundamentals Do Not Apply - 2nd Aug 15
The Fed Can't Stop the Commodity Bear Market - 1st Aug 15
Meet the Leader Who Turned Google Into a “Buy” - 1st Aug 15
The Greek Coup: Liquidity as a Weapon of Coercion - 1st Aug 15
Gold’s Amazing Resiliency - 31st July 15
Silver – A Century of Prices - 31st July 15
Demand for Gold Bullion Surges – Perth Mint, and U.S. Mint Cannot Meet Demand - 31st July 15
Reasons Why the Greek Crisis Will Only Get Worse - 30th July 15
The War On Cash: Why Now? - 30th July 15
Greece - The IMF Experts Flunk, Again - 30th July 15
Threat Of Cyber Warfare the “Other Reason To Own Physical Gold” Warns Rickards - 30th July 15
The 5 Biggest Myths and Lies about the Middle East - 30th July 15
Greece, Diversion, and the New World Order - 30th July 15
Ibuprofen Warning - The Pain Killer that can Kill You! - 29th July 15
More Ritholtz on Gold, and Another Response - 29th July 15
Crude Oil Price Is Lower – and You’re Richer - 29th July 15
U.S. Home Sales Market Is Dead – This Chart Proves It - 29th July 15
Greece- What Happens When Economists Talk Politics - 29th July 15
The Gold - U.S. House Prices Ratio As A Valuation Indicator - 29th July 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Stock Market Bubble in Trouble

More Signs of Silver Bullion Shortage

Commodities / Gold and Silver 2012 Dec 04, 2012 - 03:00 AM GMT

By: GoldSilverWorlds

Commodities

“This is the definition of a silver shortage – nothing to do with the physical amount of the substance being in deficit, but people’s psychological intention not to sell. The extent to which a shortage is developing is witnessed by the extent of backwardation.”


That’s what Ned-Naylor Neyland wrote in a recent commentary (thanks to GATA for bringing it to our attention). He is the Investment Director at Cheviot Asset Management, one of the UK’s largest independently owned investment firms. His commentary was triggered by the decision of the London Bullion Markets Association (LBMA) to cut the reporting on the Silver Forward Rate on the 2nd of November, playing it down as “only indicative rates and therefore not dealable rates between forward Market Makers.”

Clearly, Ned-Naylor Neyland holds another opinion. He is monitoring the Silver Basis & Co-Basis (by Sandeep Jaitly) and it showed a huge anomaly more or less at the same moment of the LBMA’s decision. That kind of behaviour points to strong backwardation, a signal of silver shortage (based on the earlier mentioned definition).

We wrote earlier that John Embry expects a silver price explosion driven by a silver shortage. Meanwhile, sales in the physical silver market is increasing significantly. We reported that the latest US Mint statistics showed an explosion of gold and silver coin sales in the month of November.

Eric Sprott confirmed during an interview on King World News a big uptake in demand in the last six to eight weeks, based on data in his own channels. He is well known for his in-depth research on the precious metals markets and quantiative argumentation. Eric Sprott comments on the potential effect in the gold and silver price, should the invested assets rise from 1% to 5% (as advised by a lot of experts): “The only way you can go from the current 1% to 5%, is essentially to have the price go up by 500% and I think that’s probably more likely what is going to happen.”

Based on his weekly analysis of the COT reports, Ted Butler writes the following in his latest commentary: ”Conditions in the wholesale physical silver market continue to appear as tight as a drum. I am overly sensitive to signals that the physical silver market has grown tight because I am convinced that a physical silver shortage must and will terminate the ongoing silver price manipulation.” Read more about his work by subscribing at ButlerResearch.com.

Does all of this mean we’ll see price spikes in the short term? Not necessarily. These experts are signaling what’s happening with the fundamentals in the silver (and gold) markets, which is not necessarily reflected in short term price movements. As appears from the chart, the silver price has been trading in a sideways range for the past two months.

Source - http://goldsilverworlds.com/gold-silver-insights/more-signs-of-silver-shortage/

© 2012 Copyright goldsilverworlds - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2015 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Biggest Debt Bomb in History