Eligible Silver Spiking Upwards

Something must be wrong here. Why is eligible silver rising at such a high pace, while registered silver doesn't budge? This trend can't last...




Is it because shorts can't get out?






Chart 1: COMEX Silver Stock

If we look at the premiums on APMEX, we get this. 12% and 16%, which are pretty high premiums lately.






Chart 2: APMEX 100+ silver coin premium





Chart 3: APMEX 1-19 silver coin premium



Comments

  1. goldbergFebruary 5, 2013 at 6:24 PM

    Is this in theory bullish or bearish for metals?

    ReplyDelete
    Replies
    1. katchumFebruary 6, 2013 at 9:05 AM

      The premium is bullish for silver.

      Normally the high open interest in silver is bearish for silver, because shorters want silver to go down. But in this case we have shortages and don't know how it will blow up by short covering.

      I'd say overall I'm still bullish on silver.

      Delete

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