Metal price fixing in numbers
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Ugh! I don't know what this means🤦♀️ (I'm trying to learn. Unfortunate public education.) What do banls have to do with silver production?
Bank "bet" on various things including silver. In the case of silver they bet "against it". They do it by selling silver they dont have in the hopes that silver would go down and they can buy back the silver they sold (that they didnt have) for lower price, hence making profits.
What happens when the silver prices refuse to go down? The banks would suffer a loss when they have to buy back the missing silver at a higher price instead of lower.
So what do they do? They double down and keep selling silver they dont have (shorting) in the hopes of keeping it down. This is illegal and is the main reason why silver prices dont shoot up to their natural market levels.
The graph shows how badly the banks have done this fraud.
Its my understanding that in the case of precious metals they also create 'paper" metal. They sell this paper in IRAs and such. There is a promise to provide the silver on demand and its implied they have it on hand. But they dont actually have this physical silver. There is much more 'silver' on the market than there is physical metal. This is a tactic that Merrill Lynch has used for decades, I think the primary now is Chase, that has kept the price artificially low.
Thank you! I appreciate the explanation.