How can it possibly be that a market, the COMEX, is responsible for establishing the price of a commodity based on the trading of that commodity when absolutely none of the physical commodity ever changes hands?
If you think this can’t possibly be true then you’ll be wrong. For more than the last three years, The COMEX has not delivered a single Gold contract!!! All the contracts have been settled in cash!!!
The COMEX, in reality. it’s not a market of Gold and Silver it is a market of PAPER.
If someone wanted to buy $10 million worth of Gold, they would not be able to pay the spot price…. they would have to pay almost twice the spot price in order to get the physical metal….. Isn’t the real price of something what you pay for the actual item and NOT what you pay for a piece of PAPER representing the item????
What’s the take away from this? The Takeaway is that this PAPER market that exists and trades hundreds of paper ounces for every underlying physical ounce makes it very easy to artificially suppress the truth price of gold and silver. After all, when the price of the commodity should be based on the supply and demand of the ACTUAL commodity and not pieces of paper saying 300 people own the same ounce of the commodity, something is WRONG!
Don’t be fooled by the price. pay attention to the value. Gold and silver last forever unlike Fiat currency’s that eventually return to their intrinsic value…. Zero!