Skip to content

Silver Margin Hikes

May 10, 2011

Well, the dollar was off a bit and silver rallied today. Possibly because of MAYBE the last margin hike for a few days. There are many reasons for the margin hikes, one which I hadn’t considered before was backwardation. You see typically silver futures in later months are lower in prices the farther in time you go out. This is due to things like cost of insurance and storage. The current situation exists that those future prices are elevated significantly indicating possible supply problems (another term for high demand).

Whatever the reason its clear from numerous points that demand is very high, regardless of price. This bodes well for silver prices.

Advertisements
No comments yet

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: