Silver paper buyers are fleeing
May 01, 2013
Today the spot price for silver and gold paper is dropping once again. This is not surprising, since fewer and fewer people are willing to purchase paper. Most of the buying is in the real physical sector. So on the electronic paper market, the sellers are overwhelming the buyers. Hence, the drop in price.
In a remarkably candid interview, the President and Executive Chairman of CME Group Inc, Terrence Duffy, told Bloomberg TV that today gold buyers "don’t want certificates ... They want the real product".
When asked by Cristina Alecci at the Milken Institute 2013 Global Conference in Los Angeles on Bloomberg Television's "Street Smart."about gold, Duffy says
"What’s interesting about gold, when we had that big break two weeks ago we saw all the gold stocks trade down significantly, we saw all the gold products trade down significantly, but one thing that did not trade down, was gold coins, tangible real gold. That’s going to show you, people don’t want certificates, they don’t want anything else. They want the real product."
So once again, the only ones who are losing money are those who bought paper contracts at a higher price. Eventually, when no one wants paper gold or paper silver, the price for those contracts will hit ZERO. But don't expect anyone to part with the real stuff for free.
Dr. Stephen Jones