Silver market tightness

One thing that occurs to me when I watch the tightness in the silver market is that the basic functioning of a free market shouldn’t work this way.  Simple supply and demand fix most free market problems – and if Silver were a free market we would have higher prices. Many retail silver shops nation wide are waiting weeks for supplies from their wholesalers and consequently retail demand is not being met.  With higher prices the entire supply chain would be more incentivized to meet this demand, yet that has not happened.  It seems that such a small market with a concentrated price discovery structure (the COMEX) has allowed market manipulation to keep the suppliers relatively complacent about bringing ample supply to market.  When price manipulation occurs on a mass scale like this in any financial market, it usually does not end well – stay tuned…

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