Loading ...In his interview Neumeyer mentioned that “there’s work going on right now to create a system using blockchain to price metals.” When asked directly how he thought the implementation of such an idea could impact the situation in the silver market, here’s how he responded.
“It’s going to remove the whole system of marginal banking where today we have over 300 times margin on silver. Silver trades on a global scale about a billion ounces a day and virtually all of that is paper, or 90% plus is paper.
The miners produce 800 million ounces a year, so we’re trading, just using simple math, 365 billion ounces a year on the exchanges worldwide, and we’re only producing 800 million ounces per year.
That’s a quite lot of leverage in my view. So if you get a way from the exchanges, that leverage disappears, and you have a much more fair pricing mechanism.”
That whole system that’s currently pricing our metals is going to end”