Loading ...I don’t understand how physical metal will ever rule market price. Will somebody convert a bunch of options to ‘must deliver.?
When they take the delivery from the government condoned crimex will they be buying those 1000 oz globby bars? Doesn’t JPM have about several billion oz or 3 million globby bars in their warehouses?
Each 31kg (1000 oz) bar is valued at ~$13000 now. That is about as much as a green box of Eagles but you get twice the weight. Why havn’t savvy investors ever taken advantage of this? Was the lesson of the Hunt brothers enough to keep all of the rational men out of the metal market for all time?
I keep hearing the paper sellers are going to run out of paper but just don’t understand how the paper price will ever be sensitive to the street value of the metal. How crimex+JPM could ever be overwhelmed. Even if crimex ran out of silver how could it affect the official price?
Can a mining company say the crimex price is irrelevant and just sell their goods at twice the fake official price? In theory maybe but in reality every company will sell at comex price unless comex goes out of business. Thats about as likely as Fanny Mae going out of business.
I’m just curious how retail markets running out of precious metals could ever affect the comex price. It doesn’t seem possible to me. In the past when silver went way down we just adjusted to the idea that the shops were empty because they would not sell at a loss. If shop prices went to $30/oz with spot at $12 then their sales would crater and the spot comex price would stay low. Lower spot price = less sales — higher spot prices = higher sales — how will it ever change? If it gets to that point won’t they just make it against the law to buy the stuff like with the Hunt Brothers?
It seems to me the “free market” could force the price of wheat to one penny per bushel even if there was only a single grain for sale on the surface of the Earth and everybody was starving.
I’m not trying to be negative, I just can’t figure out how these mysterious organizations that so effectively control the price of supposedly “in-demand” commodities can have so much power over prices that the whole premise of supply and demand is permanently waived.