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Thread: Silver Comex

  1. #1

    Default Silver Comex

    I'm new in investing is it true
    about comex silver manipulating
    the spot price of silver?

  2. #2
    Join Date
    Feb 2010
    Posts
    2,484

    Default

    Quote Originally Posted by yobohobo View Post
    I'm new in investing is it true about comex silver manipulating the spot price of silver?
    If it could be proven to be true in a way that could convince anyone, it would be over. So you aren't going to get a simple 'yes/no' answer.

    There are about 1,400 ounces of silver traded on Comex for every ounce delivered, which by itself makes the prices on Comex highly suspect (I.E. they are quite unrelated to the supply/demand of physical silver). In a year, about 600 million ounces of silver are mined, yet that much trades on an average day on Comex.

    The more frequently mentioned potential manipulator is JP Morgan, which Ted Butler believes is controlling the price of silver by shorting silver (agreeing to deliver silver it doesn't have, at a set point in the future), and then causing the price of silver to go down in order to buy back the silver and make a profit.

    Given how small the silver market is compared to the gold market, and how many people blindly buy/sell silver (or gold) based on whatever people tell them the price is, and how much paper is traded versus physical, it would be naive to assume that it is not manipulated. The key questions are [1] if manipulated, is it being manipulated on purpose? and [2] if manipulated, why is it manipulated and how?

    If you're curious about the numbers (such as Comex volume traded and such), our http://About.Ag homepage has most of the stats that we think are relevant to silver investors.
    Last edited by About AG; 03-26-2010 at 02:01 PM.

  3. #3

    Default

    Thats just a paper price. pay no attention to that price.Its just for fun for the super rich trying to con the specs.Use it as a guide.Lets say silver paper price was $10 one day back a while. and 20 days later it was $15 . What is your 100 ounce bar worth?it is worth what anyone will give you.

  4. #4
    Join Date
    Feb 2010
    Posts
    2,484

    Default

    Quote Originally Posted by silverfish View Post
    Thats just a paper price. pay no attention to that price.Its just for fun for the super rich trying to con the specs.Use it as a guide.Lets say silver paper price was $10 one day back a while. and 20 days later it was $15 . What is your 100 ounce bar worth?it is worth what anyone will give you.
    True, but what anyone will give you is based on the paper price.

    If the paper price went down to $5 tomorrow, people would only give you $500 for that 100 ounce bar. If you didn't want to sell, someone else would. Sure, given such a quick plummet there would probably be a much higher than normal premium, but people wouldn't pay $10/ounce in that case until they couldn't find any more silver at $5+/ounce.

  5. #5

    Default silver manip.

    imo,I think they will try 1 or 2 more times to get the prices of silver and gold to drop down way down so they can get out of there shorts,this way they can unload all of there paper contracts or try to get out.and then people and companies who rely on silver will start buying it up like MAD and this will catch on with investors also,then we will have a price explosion in the silver market like never seen before.dont miss the boat.I am in and will keep buying till i cant afford to.GOOD LUCK TO ALL!

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