Reuters London reports on market forces and limited silver resources.
The report is quoted as saying:
“It’s no real surprise that in the presence of this substantial backwardation, you’ve got people who prefer to own silver in futures rather than in its physical form,” Natixis’ Mr. Brown said.
“But it does continually beg the question of where is all this silver going? Is it purely a reflection of the hedging that’s going on or is there a more substantial factor that is leading to the apparent shortage in the market? Either way, the market is telling you there is not enough metal out there.”