Investing.com - The fall in silver last week of about $1 to the $17 mark led some to argue that this was due to manipulation.
However, supply and demand considerations give the lie to that argument.
Silver futures for May delivery were trading Monday up 1.09% at $17.108.
Silver fell because holders of the metal decided to sell and/or purchasers of the metal slowed their demand.
If investors had been heavily selling futures contracts while physical demand for the metal remained strong, then the basis would have fallen and the cobasis would have risen.
However, the cobasis in silver actually fell slightly last week.
Basis and cobasis gauge the profitability of purchasing an asset now in the spot market while at the same time selling it in the futures market or vice versa.
Looking further ahead, the course for precious metals will depend on the pace of expected interest rate hikes in the U.S.