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London Silver Update: "Only Entities Short Are Fed-Backed Banks. Nobody In Their Right Mind Would Be Short Here"
Submitted by Tyler Durden on 11/10/2010 11:33 -0500

* Backwardation
* Commodity Futures Trading Commission
* Layering

The last time Eric King's London source spoke up, and determined the $25.50 threshold as that past which a massive squeeze was coming, he/she was spot on. This time we learn that Asian demand for physical silver continues to be relenteless, the squeeze on the shorts will not end, and that nobody but the Fed-backed banks continues to short the metal (and if exchanges are enforcing margin changes how about changing those position limits, eh CFTC?). In other words, rumors of silver's death appear to be largely exaggerated.

""
Spot has been trading in front of futures here in London all day. We have been in backwardation all day long on the LBMA.

So the Asian buyers are enjoying this weakness in the silver market?

Of course they are. $30 is just going to be a small pause along the way to much higher prices."

http://www.zerohedge.com/article/london-silver-update-only-entities-short-are-fed-backed-banks-nobody-their-right-mind-would-