In a blog post from a just-released audio interview with King World News, Eric Sprott speaks of the “huge sell orders in gold and silver” last Wednesday, particularly the silver market, where “in a 30 minute span we had sellers of 225 million equivalent paper ounces, in a market that in one year the silver miners only produce 800 million ounces. So again, it’s the paper markets overwhelming the physical market. It’s stunning to me that on a day like Feb. 29th we traded 500 million ounces of silver. No rational person could believe it had anything to do with the real market for silver… That was all just on one exchange. God only knows what happened on the LBMA and the SLV and all of these other vehicles where paper silver is trading hands.”
Posted by Investment Rarities on March 4th 2012 in Federal Reserve, Gold, Monetary Policy, Quants, Short Sellers, Silver, Wall Street | Be the first to comment!