While Western prices are largely dictated by “paper” futures contracts, Chinese prices reflect the immediate, high demand for physical metal needed for green technologies.
Perspectives
TSP & Vanguard Smart Investor Posts
What happened to Silver
Because investors could not trade or exit positions in China, those with global access rushed to sell silver on Western exchanges like the COMEX and LBMA to raise cash, contributing to the 31.3% crash in international prices.
Next Fed Chairman Quotes from the Past
“We believe that QE has redirected capital from the real domestic economy to financial assets at home and abroad. In this environment, it is hard to criticize companies that choose ‘shareholder friendly’ share buybacks over investment in a new factory. But public policy shouldn’t bias investments to paper assets over investments in the real economy.