Author: David Jensen
The silver futures-based volatility measure ‘VXSLV’ is forward looking as it is based on the futures market and not the cash market daily price.
As can be seen below, VXSLV (yellow line) starts to leg-up in advance of large silver price moves - both up and down - that are reflected in the daily volatility measure (blue line).
Today, the VXSLV index snapped higher while the daily price volatility ‘HV’ has yet to respond.
We currently have a global shortage of physical silver bars that has recently driven the cash price above $120 /oz.