For more than two months, every time silver has challenged $16.80, the central planners sell whatever amount of paper they need to keep the silver price contained.
But – and here’s the important point – the central planners are going to lose this battle and indeed the war. The reason is that paper silver becomes increasingly valueless as its supply increases. The market will never accept an infinite supply of paper silver, just like Weimar Germany and Zimbabwe found out with their paper currencies.
At the same time paper silver becomes less valuable, the aboveground stock of physical silver becomes more valuable."
But – and here’s the important point – the central planners are going to lose this battle and indeed the war. The reason is that paper silver becomes increasingly valueless as its supply increases. The market will never accept an infinite supply of paper silver, just like Weimar Germany and Zimbabwe found out with their paper currencies.
At the same time paper silver becomes less valuable, the aboveground stock of physical silver becomes more valuable."
- Source, James Turk via King World News
