Egyptians Turning to Silver to Hedge Against Inflation
(www.activistpost.com)
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I did a little reading about the COMEX the other day. Seems that in the case of PMs, the same problem exit as with green dollars. Contracts exist on paper, when in reality if all contracts holders took delivery, that silver does not actually exist. And there are multiple owners of the same paper silver.
I forget the term, but you're familiar with the practice of holding an asset, then offering that asses as collateral on a loan. In practice, at loan time, the asset belongs to the loan entity, not the borrower. As I understand it, there is often three of for levels deep of this kind of thing on paper contracts, and each level technically claims right to take delivery on the paper PM.
Short selling silver is what JPMorgan (and others like HSBC) does to help keep the price suppressed. And you're correct with COMEX - it's all paper tomfoolery where they are supposed to have the physical assets to back up the paper contracts, but they don't. It's a complete scam: https://www.businessinsider.com/jpmorgans-nickel-bags-turned-out-to-filled-with-stones-2023-3
The LME first announced the "mix-up." Like, woops, we though were were filling those bags with Nickel, and mistakenly filled them with stones.
We've all done that right? Go to the store, pay 55c for an item. Give the cashier two quarters, and a stone by mistake.
Do they assay the bricks that are in depository? I am learning that a gold 1 oz. bar can be faked in extraordinary detail where multiple test are required to spot the fake.