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What determines silver and gold prices?

The New York Commodities Exchange (COMEX) is the world’s primary clearing house for exchanges of paper products that supposedly represent silver and gold. While it is possible to purchase the physical product there, 250 exchanges involving no metal at all take place for every single real metal transaction.

These paper imitations are used to RIG — oops, I mean SET the price of silver and gold. The very same frauds who print the near-useless paper currencies of the world use their paper power to crush price discovery and our ability to know what silver and gold are really worth compared to their fiat currencies.

This gross depression of the real price is quite handy for them as they trade their nearly valueless currencies for physical metal to stuff vaults at ridiculously low prices. Meanwhile, average people steer clear of silver and gold because the price moves up and down with no discernible pattern while the paper and plastic currencies are accepted everywhere.

The price today is so low that many mines and processors have stopped producing new silver and gold. They cannot afford to operate. The banksters want us cornered into using their fiat currencies.

In 2010 they almost lost control. It looked for a while that we would find out what silver and gold were really worth.

People took the prices shown in this chart and added a premium for the real thing. When the the official price reached $45 per ounce, people would not let hard metal leave for less than $50 … and even those people were hard to find.

They regained control THAT TIME.
There will be a day when they cannot. published an article describing the fraudulent market manipulation and extrapolating a real price of thousands per ounce if/when the real market forces take over. I excerpt a small piece of it here. Check the link for the full story.


… If the price of silver were based directly on the real physical silver market, silver’s price should be at $5,000 an ounce.

This price may seem totally crazy, but who can pretend knowing exactly how an ounce of silver is worth, after decades of manipulation and turning real investors’ demand from the physical market to the « paper » one, and years of exponential monetary printing by all the planet’s central banks?

The actual spot price for silver has no real value and is not legitimate when we seriously compare the real physical silver market to the « paper » market and its myriad of financial derivatives.

I’m not saying the price of silver will reach $5,000 an ounce; I’m just saying that the actual PHYSICAL silver spot price is not only extremely undervalued, but that it is an illusion compared to the real value of an ounce of physical silver, since it is totally disconnected from reality…

While I do not recommend betting on astronomical rises in silver and gold as an investment strategy, many people like me do plan to use silver and gold in exchanges when we depart the fiat currency economy and enter the barter and exchange economy that will replace it in civilized places.

As I mentioned in yesterday’s post borrowing VS saving VS stocking up, easily recognized coins and bars of real silver and gold will BE AMONG THOSE THINGS retaining value when paper promises turn to trash.

That day will come in most of our lifetimes.