Asia News article on Silver market
May 13, 2011
The article concludes this way:
"Today, the situation of silver bullion market bears many similarities with what happened to the Hunt brothers. Now as then, the system reacted the same way, demands for bullion deliveries jumped to the point that the COMEX (the old NYMEX’s replacement) saw its silver bullion reserves melt, finding itself hard-pressed to meet its commitments. In response, the margins for silver purchases were raised suddenly. This is why the value of silver dropped, creating market volatility, not because of sudden collapse in the demand for the metal. In this case, the law of supply and demand did not play any role.
"The demand for silver bullion is always very strong. There is no single player but a number of buyers upset by the scandalous behaviour of the banking system, who are concerned about huge government debt and deficits, as well as the underhanded action of those who, behind closed doors, are preparing a world currency to replace the US dollar, i.e. the tool that will shape the value of the work and sacrifices of billions of people in the world.
"AsiaNews is only a news agency, without any claim to providing financial advice. However, this writer believes that this year, perhaps by this fall, we shall see COMEX become more or less insolvent over silver. It will be another Lehman Brothers fiasco, a crisis like that of 2008, but worse."