I think the projection based on past corrections may well be
about right in terms of time -- After vertical declines it almost
always takes time to build a new base. As far as the issue of
silver being in backwardation, Dan Norcini makes the point that in
conditions like this on the COMEX, backwardation doesn't matter
because when hedge funds and other leveraged players are getting
margin calls, the physical market becomes irrelevant. Over time --
just like your chart suggests -- it will matter again, but not for
a while.
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Mamaduck, thanks for the excellent silver charts
more on silver
Posted by puma on 7th of May 2011 at 02:31 pm
I think the projection based on past corrections may well be about right in terms of time -- After vertical declines it almost always takes time to build a new base. As far as the issue of silver being in backwardation, Dan Norcini makes the point that in conditions like this on the COMEX, backwardation doesn't matter because when hedge funds and other leveraged players are getting margin calls, the physical market becomes irrelevant. Over time -- just like your chart suggests -- it will matter again, but not for a while.