How are silver prices set?

C

Cheepo

New Member
I am curious.

I know that if I buy shares through (for example) Saxo or a bank my order goes directly to some central computer where everybody buys and sells shares, so if there is a deal there is a new price.

But silver? If I buy a coin from LPM or Kitco they just take it off their shelves and give it to me. When they sold enough coins they buy them from the Perth Mint (and wherever), which buys silver from mines. So why do the prices of silver change every second? Is it just speculators who change the prices, and the people who actually have the real silver don't actually have any impact on the price? And can you buy silver as you buy shares?

Sorry for the stupid question. :(
 
Interesting view of the London commodities trading market. Might not answer your question but an interesting view.

[youtube]http://www.youtube.com/watch?v=e_gMGnAR9Ng[/youtube]

About 8 minutes in, but segments on B of E etc make for an interesting perspective. Especially if you know the real history.
 
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