It’s remarkable to me how close we appear to be getting to near-universal recognition that silver and gold (along with a host of other commodities) are priced based upon the activities of a relative handful of large paper traders on the COMEX (and other exchanges) and not on the workings of the world of actual supply and demand. I’m convinced that once the critical level of universal recognition is achieved (and it appears to be quite close), then we will experience the true free market price, which will be decidedly higher, particularly in silver.
Almost every day, I see new evidence that the number of those questioning the COMEX price-discovery process in silver is growing – sometimes, even without the knowledge of those doing the questioning fully-realizing that they are waking up to a price manipulation that has existed for decades. Wait a minute, I can hear you say – how is it possible for anyone to question the COMEX price-discovery process without realizing they are doing just that?
In fact, let me up the ante and provide an example of what I’m talking about as the “anyone” in this case being a quartet of seasoned metals professionals, whose combined total experience measures more than a century. It comes in the form of an hour-long discussion put out this week by the LBMA on silver. (In the interest of full-disclosure, I have no known relation to the analyst on the panel sharing my name). I’ll summarize what was discussed, but here is the link –
It seems the discussion resulted from an earlier meeting arranged by the LBMA, in which a fairly large number of analysts had offered a consensus price projection for the next year involving a very modest increase in the price of gold, but a quite-surprising expectation of a rather dramatic increase in the price of silver of some 50%. This is very much outside the normal bounds of typical consensus predictions. The discussion in question (just linked) was intended to examine and reconcile the very bullish price consensus on silver.