1. Silver market shows extreme backwardation, signaling major market shifts. 2. Current backwardation is largest since 1980, indicating serious supply-demand imbalance. 3. Industrial and investment demands are driving up immediate silver prices. 4. Lease rates for silver have skyrocketed, indicating market stress. 5. Historical backwardation trends suggest potential for significant silver price increases.
The extreme backwardation seen in silver indicates a market fundamentally shifting towards scarcity and driven by real-world supply and demand. Historically, such backwardation has preceded substantial price rallies, suggesting strong upward pressure on SIL.
The article's focus on backwardation relates directly to silver's pricing dynamics, pivotal for investors in SIL. Its historical implications and current trends underscore the likelihood of price effects on SIL.
Given the persistence of backwardation, lasting supply constraints will likely cause silver prices to trend upward over months and years, similar to past events around 1980 and 2011.