Gold and Silver Prices: The Paper vs. Physical Battle

Summary

The price of gold and silver is not determined by supply and demand, but by the paper market, according to Ed Steer. Bullion banks manipulate these prices using futures contracts on the Comex to control the physical market. This has been ongoing since 1975, where they can "beat the hell out of" prices when they don't want them to rise. Evidence for this includes the large traders' short positions and their ability to suppress prices despite geopolitical events like the war in Iran. Steer believes the bottom for this price suppression was seen at 1 AM in Shanghai and that prices are poised to rise once the bullion banks can no longer control them. He also notes that interest rates are being artificially suppressed below four and a half percent on the 10-year Treasury yield, and that the global shift from West to East is a major factor, driving demand for physical assets. Steer views the current situation as an "unstoppable process" and a "paper versus physical war." He advises focusing on physical silver, citing its historical use and current price suppression, and believes significant price increases are inevitable.