Realist News (Jsnip4)

Full Version: Bix Weir: Frightening COMEX Silver Volume In May Massively Distorts Silver Price
You're currently viewing a stripped down version of our content. View the full version with proper formatting.
By all accounts the price volatility in silver for the month of May 2011 was shocking. Silver went into a FREE FALL from near $50/oz to $35/oz in a matter of days. Clearly this is a market that is massively dysfunctional and an immediate remedy is needed if the regulators want to preserve what is left of the people's faith in free markets.

The CME recently published their Monthly Metals Update for May in which they disclose the total volumes of futures and options traded for the month. That report can be found here:

According to the CME the average daily volume of Silver futures and options in the month of May was 117,196 contracts and 13,786 contracts respectively or 655M ounces of paper silver traded per day. There were 22 trading days in the month which puts the total amount of paper silver traded on the COMEX in May at 14.4 BILLION ounces (14,408,020,000 to be exact).

Wait just a minute! These are NOT legitimate trades in silver but rather SILVER DERIVATIVES that have lost all touch with their underlying physical asset. The market for silver futures ...

Reference URL's