With gold smashed nearly to $1550 and silver nearly to $28 Wednesday, Eric [Sprott] discussed the latest paper raid in the face of epic physical demand, and stated that the demand for coins has been stunning!
The demand for physical gold and silver has led to shortages and moratoriums on future sales in the case of US silver eagles. At the same time that demand is high, the price of gold and silver has been smashed to use Mr. Sprott’s words. The mechanism used to manipulate the value of precious metals is paper. Short term contracts, long term contracts, ETFs or paying a company to “store” your precious metal are the tools used to buy and sell entire years of production in seconds.
What will be the outcome? Look to history for the answer. Supply and demand always wins over manipulation. Especially when the manipulators do not even have the physical resources to back their contracts.