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.”
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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.”