Investors withdrawing massive amounts of physical silver-update BACKWARDATION

Wanted to resurrect this thread instead of starting a new one. Some good info here anyway.

UPDATE:No Contango in Silver

The spot price of silver is higher than the futures price. Silver has gone into backwardation. People are paying high premiums to obtain physical silver. Investors are scrambling to get whatever physical silver is available. Silver is also de-coupling from the gold price.
Please follow the link below the quote for more...

"Contango, where the spot price of a commodity is lower than the following futures contracts, is the normal condition in the precious metals futures markets. Contango is a sign that a commodity is in ample or adequate supply.

Backwardation means that the cash or spot price is higher than the futures price for the same commodity. Backwardation occurs when demand for immediate delivery outstrips the market’s ability to deliver the commodity. Backwardation occurs when there are too few sellers of the physical commodity to accommodate all of the actual buyers, so a near-premium develops to compensate the sellers willing to part with metal in return for taking delivery later.

That means that there is heavy demand for immediate delivery silver. It means that silver players are earning a premium to sell physical for delivery now and to wait for the return of their metal until the March contract, the near active contract, which is trading at 1.6-cents lower than spot (blue circle).

Full-blown backwardation has arrived in the COMEX silver futures market. Backwardation suggests that competition for whatever metal is available is heavy and most analysts consider silver backwardation to be a decidedly bullish condition."

[link to harveyorgan.blogspot.com]

-----end update.

From The Market Oracle:

We witnessed a massive withdrawal of silver unprecedented in the history of the comex. First there was a smallish 6507 oz of silver deposited to two customers, one being 497 oz and the other 6010 oz). But just look at the huge withdrawals:

Four customers (not dealers) withdrew a total of 1,019,310 oz from the comex vaults. This is real silver leaving from 4 registered vaults. The individual withdrawals are: 579,081, 30,380, 399,994 and 9855 oz.

...

1,615,000 oz + 340,000 = 1,955,000 oz (Thursday total = 1,625,000). As promised to you, this number is rising and will continue to rise until the end of the month as our banker cartel scrambles to get any morsel of silver to satisfy the massive demand for this metal. Our bankers are stunned to see such a huge amount of silver options in a traditionally slow month.

[link to www.marketoracle.co.uk]