On the heels of KWN receiving more reports that available retail silver products are disappearing from wholesaler and dealer inventories, acclaimed trader Dan Norcini told King World News that something substantial has also just changed in the paper silver market. Here is what Norcini had to say: “Most of the time shortages don’t mean there is not a lot of the commodity around, it just means there is not a lot of it available at that particular price. In other words, silver is sitting out in the vaults of investors. There are guys with 1,000 ounce bars, and quite frankly, they are not interested in selling that metal at prices down near $30.”
Dan Norcini continues:
“As a matter of fact, when we look at that weekly price chart now, Eric, 4 out of the last 5 weeks preceding this one the silver has dipped down to $30 or below $30, and it has encountered very substantial buying down at those levels. The bears could not crack the market below that ($30 level).
What that means is if there is a demand for silver out there and it can’t be met by the available supply on the market, the price is going to have to go higher. It’s going to have to get to a level where people where people who are holding these big bars are willing to relinquish it in size or part with their metal.”