by Dr. Jeffrey Lewis
Silver Coin Investor
As Chris Powell of GATA made famous: “Price action makes market commentary”.
Control the price of anything and you get control of the story. The U.S. Commodities Future Exchange (COMEX), a subsidiary of the Chicago Mercantile Exchange (CME), is central to price discovery – and nothing else can compete.
Price action on the big silver ETF, SLV does not (yet!) factor into a price that begins and ends with a trading structure that is rigged to the tune of a few traders who dominate one side of the trade.
Nor does the mining sector have direct influence, though it’s very easy (and therefore tempting) to envision scenarios where signals from mining equities seem to anticipate impending moves.