"Silver is in backwardation which means that there is a physical shortage. COT shows that the banks are short.

"Probably a short squeeze is on with physical delivery being demanded. Until that is over - and at the moment there is not enough physical silver available for the shorts to pay up - silver is probably going to rocket and only later on fall back to earth."

Eoin Treacy's view Thank you for this informative email and these are all valid points. However, I wonder as to what extent they are already reflected in the price. Silver pulled back rather sharply today marking a high of at least near-term significance. It will need to hold above $28 if the medium-term uptrend is to remain relatively consistent.