Back to the theory of a supply squeeze in silver. The March contracts have suddenly dwindled and are not standing for delivery - rather mysterious behavior, given the large number of contracts that were open by the time March contracts were expiring.

Nevertheless, the silver price remains very strong and in one day we hit resistance at $36.50, came down to $35.50 and are now back up to $36.50 a day later. Various analysts are calling for $40 before a pullback, or maybe slightly under $40.

Here are a few excellent articles from a coin dealer. Normally this would be a biased source of information (they are trying to sell you coins) but in this case the information is fairly objective and useful. The first one talks about the jump in lease rates I mentioned a few posts ago, as well as the movement of funds away from US Treasuries:

[1] http://news.coinupdate.com/more-indicators-of-physical-silver-supply-squeeze-0680/

Please note he talks about a rise in price through March. It is also the case that the new position limits imposed by the CFTC come into effect at the end of March.

The second article is more recent and provides details about the March contracts mentioned above. This situation has changed since then, as stated above.

[2] http://news.coinupdate.com/huge-comex-silver-supply-squeeze-developing-0695/

And this last piece gets into rumors of Asians buying SLV shares to redeem for physical silver:

[3] http://news.coinupdate.com/asian-buyers-redeeming-physical-silver-from-slv-exchange-traded-fund-0685/

His target price by end of March is $38 to $45, which he thinks may be too low if a supply squeeze is really occurring. Other sources are talking about a top at end of this week or early next.