With silver trading at $33.50 and gold breaking above $1,400 in early trading in London, King World News today interviewed James Turk out of Spain to get his thoughts. Turk remarked, “The backwardation that we have been talking about has now blown out to 73 cents, that is unprecedented. I find that number to be completely astounding! Where are the arbitrageurs? They could make a fortune. This suggests to me that the arbitrageurs are out of the market because they don’t have the physical metal to sell to deal with the imbalance.”
“The fact that arbitrageurs are not pouncing on this huge bakcwardation is just further evidence of how little physical silver is available.
Going back the KWN blog we did on February 10th, this backwardation in silver has potentially huge implications for the US dollar. Metal goes into backwardation for two reasons – Either short supply, or nobody wants to accept fiat currency. We know the backwardation in silver is because the supply of physical metal is so short.
But the lingering question in my mind is whether the strong hands who hold silver are unwilling to take a fiat currency. If that is the case, and this backwardation in silver eventually leads to a backwardation in gold, the implications for the US dollar, and indeed all of the fiat currencies in the world are ominous.”
Full article here: King World News
More on gold and silver:
– Short Squeeze Takes Silver To Fresh 31 Year High
– Silver: Short Squeeze Could Be the Big One – Reaches New Multi-Decade High – Still In Backwardation
– Massive Short Squeeze in Silver, Gold to Hit New Highs
– London Source: Asians Buying SLV to Take Delivery of Silver
– COMEX Silver Inventories Drop To 4 Year Low. COMEX Default Or Hunt Brothers Redux?
– This Past Week in Gold and Silver
– ‘US Silver Term Structure Inverts As Supply Tightens’ – Reuters Article On Silver Backwardation
– JP Morgan Silver Manipulation Explained (Part 1-4)
– Silver Bullion Backwardation Suggests Supply Stress
– Silver Lease Rates Rise Sharply – Bond Yields in Portugal Rise to Record
– Silver Is Already In Extreme Backwardation! If The Same Happens With Gold, Then The End Game For The US Dollar With Hyperinflation Is Near
– Perth Mint Has Run Out of 100 Ounce SILVER Bars for at least 6 Weeks!!!
– Silver Breaks Its Golden Shackles And More Signs of Silver Shortages
– $6,000 Silver and the ONE BANK
– Canada’s Biggest Bullion Bank Scotia Mocatta: ALL SILVER BARS SOLD OUT
– US Mint Sells Absolute Record 6.4 Million Ounces Of Silver In January, 50% More Than Previous Highest Month
– Eric Sprott: Expect $50 Silver, Gold Possibly $2,150 by Spring
– US Mint Reports Unprecedented Buying Spree Of Physical Silver
– BullionVault.com Runs Out Of Silver In Germany
– Silver: Shortage This Decade, Will Be Worth More Than Gold (!!!)
– Silver Derivatives – China and JP Morgan
– Max Keiser: Want JP Morgan to Crash? Buy Silver!
– Max Keiser: Crash JP Morgan – Buy Silver!
– JPMorgan Silver Manipulation Explained (Must-See!)
– Probable Black Swan Event Equals Gold Explosion
– Richard Russell: Possibility of Gold Breaking to New Highs
– Brazilian Billionaire Eike Batista Reaffirms $1 Billion Bid for Ventana Gold
– Americans Will Flock Into $5,000 Gold and $500 Silver
– Chinese Have A New Method To Buy Massive Amounts Of Physical Gold, Bypassing Comex And Any Form Of Delivery Limits And Problems
– Gold This Decade!!!
– ‘GoldNomics’: Cash or Gold Bullion?
– George Soros’ and John Paulson’s Biggest Holding Is GOLD
– China, Russia, Iran are Dumping the Dollar, Buy Gold And Silver
– Gold and Gold Mining Shares As a Percentage of Global Assets or ‘The Once In a Lifetime Ride’
And don’t forget to do this (!!!)…
– James G. Rickards of Omnis Inc.: Get Your Gold Out Of The Banking System
… or …
– US DEPARTMENT OF HOMELAND SECURITY HAS TOLD BANKS – IN WRITING – IT MAY INSPECT SAFE DEPOSIT BOXES WITHOUT WARRANT AND SIEZE ANY GOLD, SILVER, GUNS OR OTHER VALUABLES IT FINDS INSIDE THOSE BOXES!
– Tungsten Outperforms Gold, Returns 70 Percent In Last Year (And we all know exactly why!)
– Alert: Get Out of Your Dollar Assets Now!!!
– The Ultimate Cost of 0% Money
– These Central Banks Are Printing Money – Prepare Yourself
– Quantitative Easing Explained