It's quite simple really. The reason that silver is going up so quickly is because physical is currently very popular with the masses, probably multiple std devs above what would be considered "normal" in this market (unlike gold). With a futures contract size north of $100k and probably only retail participation in ETF's, so I don't really think it's retail people driving the price up via paper nor, obviously, is anyone (able to be) holding it down via the paper markets very effectively.
This also explains the whole backwardation thing. It's nothing more than a physical supply squeeze which is likely to turn when this mass hysteria of dollar worthlessness ceases. At least the paper market participants seem to agree on the idea that physical silver will go down over time.
Once the mooks buying physical at these ridiculous prices get a clue they'll start selling physical and we'll go back to $10 or something similar in no time. When? No idea. It depends on Fed policy and image.
For now USD index still in downtrend so everything is still a go-ahead for silver because it's not a stretch to think that this market will be relatively late to catch on with the big move.
This also explains the whole backwardation thing. It's nothing more than a physical supply squeeze which is likely to turn when this mass hysteria of dollar worthlessness ceases. At least the paper market participants seem to agree on the idea that physical silver will go down over time.
Once the mooks buying physical at these ridiculous prices get a clue they'll start selling physical and we'll go back to $10 or something similar in no time. When? No idea. It depends on Fed policy and image.
For now USD index still in downtrend so everything is still a go-ahead for silver because it's not a stretch to think that this market will be relatively late to catch on with the big move.