Ah yes musical chairs, hundreds of paper issued silver for every real 1 ounce of silver. When only 1 person can grab the chair for that 1 ounce of real silver there is going to be a lot of unhappy campers and the emperor will be naked in more ways than one.
It does not matter. Bar demand is bar demand. When demand is high enough it will force spot market default in London. The pricing system will then rapidly move away from London paper spot promissory notes.
Spot price often moves in sync with futures price. According to David, those two prices are set in different markets. Which one is the dominant factor?
There are 5B oz of paper claims in the London promissory note spot market and there is a tight silver market now. Estimate the price if those promissory notes had to secure silver bars.
The COMEX is a futures market. When London is closed, there is a comparatively tiny spot market that operates and responds to COMEX futures. This is only possible as there are paper spot contract holders of 5B+ oz. of unallocated physical silver shunted into holding London paper instead of silver. That is why silver is still trading at 60% of its 1980 high price despite there being 14x more M2 currency now vs 1980. When default starts in London's cash market, and it will, then the world flips to supply / demand pricing for physical silver.
When a fraud of this scale collapses, the price can be anything. If someone said the price would be $500 /oz, I'd say that would not surprise. When our banking system collapses, there will be things that cannot be bought without gold or silver as fiat currency revulsion sets in. The scale of the fraud both in the price setting of gold and silver with promissory notes as well as the fiat currency debt ponzi pyramid is difficult to fully comprehend.
Ah yes musical chairs, hundreds of paper issued silver for every real 1 ounce of silver. When only 1 person can grab the chair for that 1 ounce of real silver there is going to be a lot of unhappy campers and the emperor will be naked in more ways than one.
Do you think industrial silver shortages will be what triggers defaults in the cash market?
It does not matter. Bar demand is bar demand. When demand is high enough it will force spot market default in London. The pricing system will then rapidly move away from London paper spot promissory notes.
Spot price often moves in sync with futures price. According to David, those two prices are set in different markets. Which one is the dominant factor?
There are 5B oz of paper claims in the London promissory note spot market and there is a tight silver market now. Estimate the price if those promissory notes had to secure silver bars.
Would the fact that virtually all major selloffs in the price of silver occur on the Comex suggest a counter factual to London's dominance?
The COMEX is a futures market. When London is closed, there is a comparatively tiny spot market that operates and responds to COMEX futures. This is only possible as there are paper spot contract holders of 5B+ oz. of unallocated physical silver shunted into holding London paper instead of silver. That is why silver is still trading at 60% of its 1980 high price despite there being 14x more M2 currency now vs 1980. When default starts in London's cash market, and it will, then the world flips to supply / demand pricing for physical silver.
Where will that put the price of silver? What would you guess?
When a fraud of this scale collapses, the price can be anything. If someone said the price would be $500 /oz, I'd say that would not surprise. When our banking system collapses, there will be things that cannot be bought without gold or silver as fiat currency revulsion sets in. The scale of the fraud both in the price setting of gold and silver with promissory notes as well as the fiat currency debt ponzi pyramid is difficult to fully comprehend.
Thanks David. Loyal follower