COMEX’s Gold and Silver Futures Market Trade Data Not Adding Up

If the market is misreporting the amount of open contracts and the deliveries of physical gold and silver, then how can market participants rely on this data to make trading decisions on the futures market?

Further, how do we all now value the gold and silver prices used in our daily physical transactions? The answer is we don’t, and this will lead to a new era in how the public views the gold and silver market. While these shadow transactions exist in particular, I expect the market to heavily question COMEX’s reported physical inventories. Just like a fear of cash shortages would cause a run on the banking system, fears of physical precious metals could cause a run on whatever is left in the COMEX warehouses.

Then we would see a rapid change in the prices of gold and silver, which would have to be determined off-exchange. These would seemingly come from physical market exchanges by large parties, from banks to wealthy individuals. It may be much harder to pry gold and silver from their current owners if they are unsure current prices are high enough to properly value them.

https://finance.yahoo.com/news/comex-gold-silver-futures-market-0754487…