posted on 9/4/2011 7:08:55 PM | 2861 reads
| Post #120006
A few minutes ago, someone paid $65 US plus $10 US shipping for a one once bar of 999 silver on EBay. There were 14 bids. Buy it Now prices range from $55 to $76 per ounce, with the average being about the $65 price, plus shipping. I would argue that $75 USD is the current REAL price of an ounce of silver - the amount that people are willing to pay. The TSX just quoted $43.315 on the COMEX. It seems there is a disparity............ Accurate price discovery is supposed to be one of the prime functions of the COMEX for the various commodities that trade in the US, Canada, and other countries that rely on it. Precious metals investors and enthusiasts have long suspected that the COMEX is less than accurate or realistic. It's divorce from reality is most apparent in the reported volume of silver that trades daily, given that each contract is supposed to be backed by deliverable physical silver. Oddly, COMEX daily trades futures for more silver than is produced in a given year worldwide. Anarchists on the web gleefully await the day when someone buys a large amount of contracts and demands delivery, thus destroying the credibility of the COMEX for once and for all time. Rumours abound that the Comex offers a hefty premium to those who actually demand delivery of physical silver to take cash instead....... Of some concern to me, as an investor in silver miners, is that my miners rely on the COMEX price to set their own price for their product. I would rather they were getting some fraction of the $65-75/oz than the same fraction of $43/oz! As a shareholder, I feel that my company and myself are being had by some fat cats in New York.
