Lanci, Coleman: Why Silver Keeps Going Into Backwardation, And SLV Short Position Explained

November 30, 2022

In the past few months we've seen the silver market go into 'backwardation' several times, which means that the spot price has traded over the futures price. Which isn't supposed to happen, and is usually an indication that physical metal that can be delivered now is in high demand.

So in this panel from SilverFest III, silver experts Vince Lanci and Bob Coleman talk about why this has been happening, what it means, and what it says about the market going forward.

They talked about the declining inventories amid worldwide demand for physical silver, and how that's been pressuring the market and setting a floor around the $18 level. Bob and Vince also talked about whether they expect to see metal delivered back onto the COMEX and LBMA as the price rises, and whether the divergence between the paper and physical markets will continue to grow.

Bob also touches on the SLV short position we've seen grow to large levels over the past few months, and why that's occurring. And perhaps most importantly, each guest gives his perspective regarding how if we look forward 5 years in time, whether this current arrangement will still be in tact.

So to better understand the details of what's happening beneath the surface of the physical and paper levels of the silver market, click to watch this video now!

Arcadia Economics

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During 1500s the Spaniards had taken 16,000,000 kilograms of silver from Peru.

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