JJP - Forensic Analysis Of Fed Action On Silver Price

May, 09 2022 12:30 PM iPathA Series B Bloomberg Precious Metals Subindex Total Return ETN

If the basis is rising, it could mean people are buying futures more than physical metal. This would be when the price is rising. Or if the price is falling, it means people are selling metal more than futures. If the basis is falling, it means either people are buying metal or selling futures.
For the most part, the basis tracks the price. This means that we’re seeing speculators in the futures market lead traders in the physical metal market.
When the price spikes during the press release, we see another spike in the basis. Speculators are trying to front-run what they expect the metals buyers to do. The basis then falls a bunch, while the price keeps rising.

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Company Name:	iPathA Series B Bloomberg Precious Metals Subindex Total Return ETN
Stock Symbol:	JJP
Market:	NYSE