Lets Discuss Backwardation further
Tommy loved robot toys. One day, the toy store clerk said, “Robots cost $20 dollars today, but only $15 next month.” That night, every robot vanished. Tommy learned: sometimes people pay more now because they fear nothing will be left later
In Toyland, there were magic yo-yos with silver strings that acted like super conductors of electricity. Remember it is the physical properties of the silver string
( just like wiring, i.e. ductility, malleability , conductivity, reflectivity) at play here
These toys powered:
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The solar street lamps
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Guided military drones
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Powered torpedo batteries
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Powered toy jets and robots
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And helped all the smart “AI” game boards and 5G towers talk to each other.
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Even their walkie talkie phones were powered by these silver strings.
One day, word spread: “Toyland is running out of yo-yo string.” Factories needed silver yo-yos for solar, aerospace, electronics, and every important gadget in the kingdom.
Big lands like Indialand, Russialand, Euroland and Chinaland started stacking mountains of silver yo-yos in secret vaults, while worried families began saving yo-yos too, scared of inflation, bank troubles, and towering debts.
At the shop, a magic yo-yo cost $20 today, but a ticket for that same yo-yo next month cost only $15.
Yet the line to buy yo-yos today curled around the block. Everyone feared that by next month the shelves would be bare, or their coins wouldn’t be safe anymore.
That was backwardation in Toyland: paying more now than later, because the silver yo-yos were too important to risk waiting for when the world felt fragile and uncertain
So what happens when there is a buying frenzy?
source article –
https://silvertrade.com/news/precious-metals/silver-news/breaking-australias-perth-mint-suspends-silver-sales/
First recall this fact below then we will wrap it up with our concluding thoughts.
FACT: Even after escaping their short position last week, JPMorgan’s estimated physical silver stockpile is 750 million ounces
Editors Note: They made Billions marching it down and now Billions more riding it up. Wow, what a business model. It’s almost like rigging a pro sports game and running to the sports book
Friday’s price action was not “volatility”; it was manipulation, plain and simple. Circuit breakers did nothing to prevent a contrived smash, and the tape exposes how the selloff was engineered, bottom-ticked, and instantly reversed. The only entity positioned to pull off that choreography—into record physical tightness and multi‑year deficits—is the same desk now racing to flip its book.
The leaked internal risk memo confirms exactly what we laid out in “The Unwinding of JP Morgan’s 6.2 Billion Ounce Short”: JPMorgan was cornered, forced to cover, and modeled a $412 silver endpoint as the level where the system might finally equilibrate. Friday was further evidence that the bank timed the low to escape a doomed short and pivot long; the street chatter now centers on them holding hundreds of millions of ounces synthetically and physically.
-750 million ounces
-multiplied by $81 per ounce
– 60,750,000,000 dollars
We were first to publish the unwind framework and the $412 memo path; the market is only beginning to catch up. Amid an historic shortage and structural stress, if you still want actual metal in hand—not paper promises—SprottMoney.com remains one of the few venues where you can still source real silver with top‑tier trust and service
INYMI, read below
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end of segment
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