-
Silver stalls above $50 as reversal signal emerges
The London silver market has been thrown into chaos by a brutal short squeeze, sending prices above $50 an ounce for only the second time in history. Spot rates traded at a steep premium to futures expiring in December, fuelling arbitrage trades that drained inventories and pushed borrowing rates above 100% annualised, making it prohibitively costly to stay short. Years of supply deficits, heavy industrial use and ballooning shipments to the US have left London with its thinnest silver liquidity in decades. Bid-ask spreads have blown out as institutional market participants withdrew to the sidelines, amplifying ... (full story)