Silver Backwardation Doubles overnight!!@!

[Large Sarge]

http://www.zerohedge.com/article/silver-backwardation-doubles-overnight

[Large Sarge]

hang onto your hats.....

nice chart at the link above

summary below

Yesterday we correctly predicted that the entire 10% correction would be momentarily taken out as the Comex news is properly digested. And so we continue - as silver is once again pennies away from $50 and a fresh new nominal all time high, we take a quick look at the futures curve where as expected the backwardation is confirming the "negative convexity" (yes, yes, we know silver is not a duration security) once the $50 stops are taken out will send silver surging to unseen before levels (which also considering it will be at a new record over $50 is pretty much intuitive). In the meantime, the chart below is the worst nightmare of anyone still holding short silver positions. While the near-far contract backwardation was about $0.75 yesterday, it has since doubled in less than 24 hours. We can't wait to see what surprising nuggets the Comex will bring us today.

[DMac]

This is a big deal.

Sell in May and go away? Yeah right!!!

[undgrd]

This is a big deal.

Sell in May and go away? Not today!!!



Sorry...had to.

[keehah]

Sell in May and go away? Yeah right!!!


Don't get too cocky. It is still April.

It may still be wise to sell at $70 or so in mid May. ;D

[DMac]

Sell in May and go away? Yeah right!!!


Don't get too cocky. It is still April.

It may still be wise to sell at $70 or so in mid May. ;D


You got me there :D

[Neuro]

Sell in May and go away? Yeah right!!!


Don't get too cocky. It is still April.

It may still be wise to sell at $70 or so in mid May. ;D
Damn right you are! I have allready sold most of my silver, average around $42... But I think silver will fly from now on. Probably I will be able to buy back at a reasonable price at the end of summer... But all bets are off re the peak in May, way above 50 I think. 70 Is a possibility even!

[Horn]

Damn right you are! I have allready sold most of my silver, average around $42... But I think silver will fly from now on. Probably I will be able to buy back at a reasonable price at the end of summer... But all bets are off re the peak in May, way above 50 I think. 70 Is a possibility even!


There's got to be a bunch of black boxes T'd into shorting at 50.

There's a general consensus it will pull back to mid 30's at some point this summer.

[Large Sarge]

Sell in May and go away? Yeah right!!!


Don't get too cocky. It is still April.

It may still be wise to sell at $70 or so in mid May. ;D
Damn right you are! I have allready sold most of my silver, average around $42... But I think silver will fly from now on. Probably I will be able to buy back at a reasonable price at the end of summer... But all bets are off re the peak in May, way above 50 I think. 70 Is a possibility even!

$70 is my new year end target

with a $100 as "doable"

[madfranks]

There's got to be a bunch of black boxes T'd into shorting at 50.

There's a general consensus it will pull back to mid 30's at some point this summer.


I think it really depends on whether or not QE ends in June or gets extended. If it ends, that will channel strength into the dollar and PMs will fall, but if it continues, then we're looking at breathtaking upward movement in PMs. There is no way to predict this right now, because it's not normal market forces moving metals one way or the other, it's going to be dictated from the central economic planners. We have to wait to see what the decision will be, and then we'll know what'll happen.

[Libertarian_Guard]

For everyone looking for $70 or $100 silver this year, I just want to say one thing!

I Love You.......


;D