Great and timely article on gold and silver prices.
Assuming you have gold/silver investments, if you don’t own physical gold/silver or miners, double-check the prospectus of your ETF for gold/silver lending. Here are my 3 key takeaways from this article:
1 • Market Manipulation: US banks maintain a large short position in gold and silver to suppress prices and acquire physical gold cheaply, and have done so for decades.
2 • Too many claims for the same physical gold/silver: The way the futures market works (rehypothecation), it creates multiple claims on the same gold, with around 16 claims per ounce, raising the risk of a market crisis if demand for physical delivery rises.
3 • The game changes: Growing demand for physical gold delivery over cash settlements drives upward price pressure and may expose market vulnerabilities, risking a supply crisis.
Great and timely article on gold and silver prices.
Assuming you have gold/silver investments, if you don’t own physical gold/silver or miners, double-check the prospectus of your ETF for gold/silver lending. Here are my 3 key takeaways from this article:
1 • Market Manipulation: US banks maintain a large short position in gold and silver to suppress prices and acquire physical gold cheaply, and have done so for decades.
2 • Too many claims for the same physical gold/silver: The way the futures market works (rehypothecation), it creates multiple claims on the same gold, with around 16 claims per ounce, raising the risk of a market crisis if demand for physical delivery rises.
3 • The game changes: Growing demand for physical gold delivery over cash settlements drives upward price pressure and may expose market vulnerabilities, risking a supply crisis.
Here’s my takeaway: leave termites alone for too long, the house falls down.