A remarkably bright chap had this to say in his latest Silver market commentary. I agree with his take as my own proprietary Gold cycle model confirms this upleg will not rest until the beginning of the second week in March.

 http://www.silveraxis.com/ 

"The silver and gold basis are in a holding pattern as well, which is reminiscent of the Spring 2006 rally. Interestingly, the simple basis calculation has returned to a contango in both gold and silver, although still below "normal" levels, but my proprietary calculation has been heading in the other direction (toward backwardation). In addition, futures spreads have started to shrink again after slowly increasing for several weeks. This could very well be an early signal for the next move higher. If so, I'd expect the move to begin by next week."