Gold And Silver Spot Prices Increasingly Detached From Reality

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Author	Replies: 3 / Views: 1,450
CCFPress Press Manager United States 1420 Posts	Posted 07/07/2015 07:49 am Money Metals Exchange - An insolvent Greece has defaulted. On June 30th, officials missed repayment of billions in lMF loans and declared a banking holiday. Predictably, many Greek citizens responded to the crisis and bought gold coins (as well as all sorts of survival goods). So did a lot of people here in the U.S. and around the world. You just wouldn't know it by looking at spot prices. The regular disconnect between the futures markets, where spot prices are set, and the physical markets reveals a growing problem. The link between the spot price and physical demand is thin at best. That is why the base price for gold coins in an Athens coin shop can get cheaper, but the all-in cost of buying the coins goes up as the line of buyers grows. The availability of metals in a retail form is one cause. But the disconnect also has to do with the mechanism for setting the spot price - the futures markets. Read the Entire Article Report this Post to the Staff

Northerncoins Pillar of the Community Canada 2019 Posts	Posted 07/07/2015 09:02 am from that link: Quote: The exchanges are supposed to be a meeting place for rational buyers and sellers evaluating fundamentals and making decisions about what is a fair price. But, in reality, the exchanges are dominated by major banks and brokerages employing high-frequency trading computers, derivatives, and other tools to manufacture a price. These powerful market players aren't trading physical metal, and they care very little about the fundamentals that motivate the rest of us. They trade paper contracts, a claim for future delivery of physical metal that's supposed to be in an exchange vault. But the number of contracts swapped in a single day can represent more physical metal than world mines will produce in a year! So the claim could be all but worthless the minute holders start asking for delivery. Hard to do much to fix this problem when the same bunch that run these banks control the media,government, army, air-force,navy,police etc etc. Welcome to 1984. Edited by Northerncoins 07/07/2015 09:03 am Report this Post to the Staff
Mr Click Pillar of the Community United States 964 Posts	Posted 07/07/2015 09:55 am Report this Post to the Staff
angel2004 Pillar of the Community United States 2168 Posts	Posted 07/07/2015 11:52 am Yes, and PMs and metals in general all down. Silver especially is way down. Report this Post to the Staff
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