“But here is the really stunning thing this time, we’ve gone from $27 to over $37, again about a 40% rise in price and the backwardation is still there. It hasn’t disappeared. So what that suggests to me is that there is tremendous physical demand for silver. This is a very, very rare event and it’s very bullish.
I don’t remember ever seeing anything like this before and this has real implications for the dollar because one of the other interviews that we did a while back I was saying if silver stays in a prolonged period of backwardation, what we really have to watch for is if gold goes into backwardation. Because if gold goes into backwardation then it’s all over for the dollar.
