Silver, backwardation and US$35 an ounce.

We have heard of sugar rush. I think we are seeing a silver rush which could last for a while. I might have to wait for a while longer before the fervour dies down somewhat for silver to pull back so that I could increase my long position in the metal.

However, I am not complaining since I am vested in the metal. In fact, I should be looking into possibly taking some profit off the table as its price forms a new high. If we believe in the forecast by UBS, US$35.00 an ounce within the next 30 days is what we should be looking out for.

As of now, silver is at US$32.24 an ounce:

The bank also lifted its three-month price view for the metal to $33 an ounce from a previous forecast of $27. The move came as spot silver prices rallied to a 31-year high at $31.95 an ounce.

"The investor spotlight is firmly focussed on silver following recent headlines about producer hedging, in light of bullish industrial demand prospects, and due to the general tightness in the market, which last month flipped silver forwards into backwardation," the bank said in a note.

Read article here.