Silver Institute…Backwardation


Silver Institute…Backwardation

Dear Investors.


Silver Institute.


Global silver demand to hit record in 2022 on strong industrial and investment demand.

Rising 8% to 1.112 billion ounces, reaching a seven-year high.


The silver market is expected to record a supply shortfall of 20 million ounces this year.


Inflation came in higher than expected at 7.5% year on year.

The highest number since 1982, it seems that inflation has even more room to rise.


As wages continue to increase it will most definitely reflect in higher inflation.



Bloomberg: Goldman Sachs analyst, strongest backwardation since 1997, 19 out of 28 markets.


Backwardation means nearby futures trading at a premium to the deferred contracts.


Usually, the deferred futures are higher priced, due to the carry premium.


Backwardation suggests strong near-term demand for a commodity.


We’re out of everything, I don’t care if it’s oil, gas, coal, copper, aluminum, you name it we’re out of it, said Currie. Futures curves are pricing in shortages, the likes of which not seen in 30 years  Credit: Jeff Currie, Jim Wyckoff


If that’s not enough, the Russian standoff presents possible severe disruptions in oil, and gas markets adding fuel to the fire.


Investors are very active in buying protective positions.


Be active, make decisions.


Much success to all.  



Depository relations:

London – Singapore – United States

Canada – Australia – China – Switzerland

Brinks – IDS – Loomis – The Perth Mint