Silver Manipulation

- Mike Maloney & David Morgan -
Silver Manipulation, Mining Stocks & Freedom (Part 1-2)
http://silvercompany.ca/news/video/2016_04/silver-manipulation-mining-stocks-and-freedom-16199/

 

In part 1, David Morgan very clearly explains how physical purchase of silver and many commodities happens in only a tiny percentage of contracts traded on the Chicago COMEX. That, my friends is why price discovery based on physical supply and demand has rarely happened in the last eight years. This trading system is an obvious form of price manipulation.

 

True it has kept price stable and too high for most commodities.

 

Correct people need to understand that it is the farmers and miners that want high prices available to them in the future. Conversely it is also the producers and miners that suppress supply when prices are low.

Just like farmers who don't sell but store grain when prices are low, so do miners. (Within reason farmers and miners also get desperate for cashflow and are forced to sell)

In the current market with no futures market than prices for silver would drop.

Note: high prices next year could be could be lower than current spot. It is all about forecast.

 

Hypothetical Brain Teaser Time:


So, were supply-demand figures to exclusively determine the current price of silver, what would an ounce of silver be priced at today in USD?




.

 

todays supply and demand is based on what is traded "now" and that is the spot. I believe that if all commercial instruments of PM was to banned, and it was sold and traded in FOB or Fob destination, the real price of silver will steadily drop buy 25% or more.

Just look at coal or iron contracted price vs spot prices. When BHP and Rio set FOB prices it is usually far more often than not the prices are cheaper than spot.

Though for most of us in the retail world the premiums will go higher, as marketers (dealers, mints and planchette manufacturers would have to increase margins) would have to insure they have enough profit to cover spot going down.

I look at spot pricing and correlate that to ratio of bullion at 25% as PM sold, and, I look at that 25% and consider it surplus requirements aka stockpile.

Unlike industrial buyers that need silver ie solar panel manufacturers buys x amount silver because they need it, silver bullion buyers will stop buying if prices keep falling.

However I don't look that far out, and unlike other primary industry, the information available about gold and silver is muddled up by too many middlemen marketers (pumper one would call them)

But I guess that comes with territory of PM being marketed to individuals. In fact when you consider 25% of silver goes to bullion sales it's no wonder it is pumped.

Ie you don't see marketers promoting rice, wheat, iron or coal, but silver and gold yes.

I look at platinum as a guide, there aren't any (many) pumpers and an even more rarer metal than gold is cheaper.

Just my 2 cents

 

That's a dreamy story.
Given futures/physical prices are anchored by arbitrage, I'd love to hear your explanation of this theory.