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Maguire - Physical Silver Market Has Now Diverged To Extremes

Today renowned silver market whistleblower Andrew Maguire spoke with King World News and said the physical silver market has now diverged to extremes. This is the second in a series of interviews with Maguire lifting the curtain on what is going on behind the scenes in the gold and silver war.

But first, here is what whistleblower Maguire had to say about what the commercial traders are up to: “Eric, I’m looking at the action on Thursday and what really strikes me is we’ve discussed the backwardation. Backwardation is clear evidence that both gold and silver futures are oversold. Essentially there are no willing sellers of physical to exchange for a cheaper, further-out-dated futures contract.”

Maguire continues:

“There is zero relationship between the fundamentals and the current status of the entire US-centric wash-and-rinse cycle which we are seeing right now in the paper market. We are seeing very large physical buying, and it’s based on that discounted fix we discussed.

The commercials and the bullion banks, they’ve been buying all that’s being capitulated by the jettisoning longs....

Continue reading the Andrew Maguire interview below...

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“They (commercials) are also absorbing a very large influx of new short interest which they’ve managed to drag into the market. I’m seeing a huge amount of fuel above the market for a rally, and I’m also seeing a very oversold market.”

Eric King: “Andrew, for the people out there that are in silver specifically, what are you seeing on the arbitrage?”

Maguire: “Silver at on point at the highs in Shanghai was trading at a $1.75 premium. That means a single contract was trading at an $8,694 premium to a Comex contract. That’s ludicrous. That really gives you a much better picture (of what’s going on in the physical market).

There are reasons why silver or gold may trade at a premium in Shanghai, but not to those kind of degrees. We’re now reaching extremes, the kind of extremes you rarely see. And the kind of extremes we saw, not even that high (in terms of premium), back in August when we bottomed.

Silver is migrating into a much more physical market and we are seeing very few participants wanting to play in this rigged futures market any more. What I am certain of (right now) is that the physical market has diverged to extremes. As a result it will overrun these short positions.

So any further discounting from here is going to force things to really go badly for the two largest short banks. And they are looking for an optimum exit next year anyway. I would say the capitulation we are seeing right now is a classic bottom.”

This is the second in a series of interviews with Maguire lifting the curtain on what is going on behind the scenes in the gold and silver war. The above information was just a small portion of what whistleblower Maguire had to say. The KWN audio interview with Andrew Maguire is available now and you can listen to it by CLICKING HERE.

The interviews with Andrew Maguire, Roberto Giorgi, James Turk, Rick Rule, MEP Nigel Farage, Chris Powell and Bill Fleckenstein are available now. Also, be sure to listen to the other recent KWN interviews which included John Hathaway, Ben Davies, Stephen Leeb, Eric Sprott and Wilbur Ross by CLICKING HERE.

Eric King

KingWorldNews.com

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