The beginning of the end?

I will preface this post with this:

1. I know nothing about the markets and the price fixing
2. I buy Silver because I like the designs and the fact that it has PM value.
   
3. I buy Silver sometimes in the hopes of the price rising and making a small profit
4. If I don't make a dime off Silver, that's cool. When I croak, my kids will make a profit from it.

I got an email a couple of weeks ago(I get them all the time and don't know squat about the author) about the end of the London Silver Fix ending on August 14th of this year. I was wondering what you people here with a lot more knowledge than me about the markets thought about this? Do you think the price of Silver will rise, do you think it will fall, do think the Silver "Manipulators" have a backup plan in mind when this ends and it will be business as usual?

Here is an article about it.
www.zerohedge.com/news/2014-05-14/beginning-end-precious-metals-manipulation-london-silver-fix-officially-dead


What do the experts here think?

 

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Yes.

 

Something else equally corrupt will replace it.

 

I don't pay attention to this. I just know I have some and if the price goes up, awesome, if it goes down, no sweat.

Gotta think long term.

 

The silver market is reactive and relatively unstable. Something like this could influence the market in either direction, especially if people are led to believe that it will have an effect.

 

Supply and demand are the driving forces in the gold and silver market. Mexico, China, and Peru produce a lot of the world's silver. When the demand is on rise, the price rises until the mines in these low cost countries (and other countries) meet the demand by extracting silver from less profitable mines. The demand gets quenched and the price drops. The lower price of silver lessons the demand from the speculators leading to the closing of the less profitable mines. The prices continue to drop until it gets to the point where it seems like a good investment again. Sometimes, it seems to bottom out for awhile (decades even) until the cycle gets kicked started again.

 

Silver is undervalued at this time.

 

Comex is where the price of silver is discovered. The London Fix was a price setting mechanism for a few large investment banks. It's only remaining purpose was to cheat their customers. Evidently they cheated the wrong customer. I can't imagine the market even noticing it's demise.

 

Right now it's getting close to $19. Will it bounce?

 

not yet

 

A big thanks - this is a much better version than the one I had archived. Very much a fav in Vietnam.

 

they still need some kind of benchmark price for the people who actually use large amounts of the physical metal. that's what the London fix was for. some have suggested the CME could take over, just pick a time of day and that's the price for physical for the day. the futures markets could still change their prices every second for paper metal contracts.

 

I just wonder about all the contracts that expire after the London fix is shut down. If the language states the London fix is the arbiter, what do they use? That should be good for a few thousand court battles...

 

Here is another thread on similar topic, especially London fix.

http://www.cointalk.com/threads/good-article-on-how-pm-markets-work.246797/#post-1923275

My position remains unchanged:

Something will be established to replace the fix - it almost has to or there will be problems establishing pricing.

From another article on the same topic:

The London Bullion Market Association (LBMA) said it had launched a consultation among market participants "to try and ensure that there is something that replaces the silver fix."

"We don't have a lot of time until August 14," a spokesman said. "We will be talking to people who can help administer."

The LBMA said it will approach miners and users of the benchmarks, regulators and potential administrators requesting feedback.

So while the Fix is on its way out, they are already working to establish a replacement mechanism by August.

 

I wonder what it was like when Terminator 2 came out back in the 90's.
People go crazy when they saw Liquid Metal?

 

+1. As long as the dollar is artificially propped up (which it is) to maintain the dollar's status as the "word reserve currency," the true value of gold/silver/bullion will not be realized. Now that Russia/China are dumping treasury bonds (IE dollars), the dollars will come back to the US. This MUST reduce the value of the dollar as it becomes a "less than desirable" currency to other major world players. When that happens and the dollar bubble pops, people will learn just what the FED Reserve has done to our currency, and just what investing in bullion could've done for them. I say keep buying because hard assets are far more surefire than dollars. Keep in mind that Gold/Silver have been used as money for millenia, and the dollar (along with every other "fiat" currency) has been around for a couple of hundred years. I'm going for performance with real longevity myself. Just my $0.02.

 

"This MUST reduce the value of the dollar as it becomes a "less than desirable" currency to other major world players."

I can't wait to see the Russian mafia, all the drug cartels, corrupt politicians of the world, Walmart, Government aid to Foreign countries, and the rest of the world hears someone tell them " The Chinese and Russian Currency is better than the USD, so we are going to force you to use them. If the rest of the world wanted Russian or Chinese cars, medical services, pharma drugs ( remember melamine in the milk, etc. then maybe it would make sense~ but not in the near future as the world doesn't.
IMO.

If you were to go visit Russia or China today and could carry your money in any currency for value, which would it be, Yuan, Ruble, or USD. Even better ask a Chinese or Russian citizen. Would you carry silver or gold on you instead

 

It was also used by The US Mint to price silver eagles when selling them to Preferred Buyers. The price to them was the London Silver Fix price plus $2.00 and then they sell to us and other retailers.

 

It's not that difficult, daily close price on COMEX. COMEX is where the price is set. If they want to manipulate the price, they'll need to play with everyone else. Instead of their small corrupt club.

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