Our friend Ned Naylor-Leyland has released a MUST READ letter regarding the implications of the LBMA’s decision to go dark on their reporting of the Silver Forward Lease Rate (SIFO) on Nov 2nd 2012. Naylor-Leyland states the action by the LBMA smells fishy, and appears to be a smoke signal of increasing problems in the physical silver market.
Naylor-Leyland states: ”Bearing in mind that while this was going on there also has been near-frantic churning taking place between the COMEX and the SLV and reports of genuine trouble in size orders of silver being delivered by LBMA members, it seems to me that there are presently a lot of coincidences layering themselves all over the silver market. God’s work perhaps…either way, these backwardation smoke signals are black as can be, and indicate that a move to much higher ground is imminent.‘‘
Naylor-Leyland’s Full note below:
From Cheviot Asset Management: