Silver Transition From Order To Disorder

The backwardation in the silver market reflect unprecedented physical demand for silver. What price relieves the backwardation - $40, $50, or higher? Only the market knows for sure. The trading sharks smell blood and will continue pushing a market stammering on its heels.



Leverage money flows in silver illustrate that all systems, natural or made-made, tend to move from a state of order to disorder. The state of order, market control, used to be shorting rallies and buying the dips. In other words, the diffusion index would rise and fall as price decline and fell, respectively. This distinctive pattern of control has been increasingly "pushed around" by the market since 2010. This illustrates a market in transition.

Silver London P.M Fixed and the Silver Diffusion Index (DI):