by David Kranzler
Investment Research Dynamics
We know that price discovery is impossible until the paper exchanges in NYC and London blow up. Or is it?
There’s plenty of above-ground silver around the world. Yes most of it is “spoken for” by the owners of that silver. Silver producers can’t produce enough silver to satisfy demand at the current price. Just ask the SLV sponsor, who quietly implemented provisions in the Prospectus which are harmful to SLV investors because it is unable to source enough silver to back the shares issue from recent demand.
Price discovery is the process by which a free market uses price to balance supply and demand. But price discovery has been absent from the gold and silver markets for decades. This is why a shortage in physical gold developed in March 2020 and why an even more severe shortage in silver has developed currently.