Gold is at an all time high and silver is only about 50%. So for those in the know, what's holding silver back?
China is supposed to be paying more than spot for “physical” gold. The information that I have been hearing is that silver and gold etf’s are over leveraged to the tune of about 95%. China’s pressure on the physical gold market has had a definite effect on the price structure of the London spot price for gold. Silver has not kept pace because it is a lot more spacious than gold. Shipping gold from Europe to the orient is a lot simpler. When the buyers in the Far East are finished buying physical it stands to reason that the vaults will be emptied in one part of the world and filled in the other. The good news is that the buyers of paper gold assets will still be able to hold on to their paper, no one is coming to take that from them. Happy times ahead👍.
Ps, do some research on this information and also brics currency. Let us know what interesting facts you turn up.
