by Keith Weiner
On Friday, the price of silver went up from $24.25 to $25.20, or +4%.
Let’s look at the graph of the price and basis (i.e. abundance) action.
[…] For the first part of the day, the action is from speculators, for the most part.
Then around the time that the US west coast comes online, we see a continued rise in price but a drop in basis back to where we started.
Folks, this is what buying of physical metal looks like: prices rises by about 30 cents accompanied by a drop in basis from about 2.9% to just over 1.9%.