by Keith Weiner
The prices of the metals hit their lows by the end of April. Gold traded for around $1,685, and is now over $1,900. Silver was around $24, and is now over $28. These are big moves (though of course nothing like bitcoin).
Both metals are subject to persistent belief that their prices are greatly suppressed. But right now, silver is widely believed to be in a global shortage. We have explained this as a shortage of retail products, most especially one-ounce silver Eagles which currently trade for a premium of 36% or more over the spot price. We have explained the difference between retail products, which depend on finite manufacturing capacity vs. commercial 1000oz bars.
But today, let’s look at the data. First, here is the silver basis.