just bought my first silver..., page-31

"SDBullion’s new 2013 Silver Buffalo round is available now as low as .99 over spot"

And there you go. Paper shorts leading a market down and destroying the basis, when it should really be the other way around.

See it in the grains market all the time! I have recently have seen the drought in Western Australia make our wheat the most expensive in the world with a record basis over the Chicago futures contract of as much as $150/t for noodle wheat, and $50/t for standard 10% protein APW wheat. Paper can distort futures prices but the real world drives basis (the difference between futures and physical). So despite cheap wheat being on offer in the US, buyers have still been coming to WA keeping the basis strong. Now US futures have dived some 30% off their recent peak and basis still remains strong but is weakening.

I don't see this as markets functioning efficiently. It means that in the current system where money is being created on computer screens, there is the opportunity for central banks and governments for that matter, to take markets where they want them. Shorts are fed into the market and I doubt they are ever bought back or delivered against.

My grain marketing became a whole lot better the day I realised this is the case.

The price of silver will test $25 IMO but don't expect central banker shorts to ever have to cover their losses or for that matter take profits. Its a highly rigged system and its all evident in the basis. Good luck