/biz/ - Business & Finance

>>21709111
tl;dr
>PMs are a physical thing, and in turn on the stock market, you obviosuly can't throw them around that easily
>In turn, for each bit of metal around, the stock market essentially has a representitive IOU note equivalent to how much you're trading
>However, these IOU notes are essentially fiat versions of the PM; which is bad, because the PM itself is not fiat and if anybody asks to redeem their IOU note, they have to have it delivered
>Up until now, the stock market has been trudging on printing more IOU notes than actual Gold/Silver, but the economy has given it a free pass, because calling them out on it would instantly crash PMs, which make up a disproportionately large swing in the entire markets, given they're essentially the bank where you store your value against inflation better than the actual bank itself. In turn, if PMs are fucked over at any point, the entire stock market will crash overnight, so by using this necessity, it's used it's privaleged postion of 'I cant fail' to leverage the ability to *poof* up more IOU notes than actual metal on Earth
>Now, since PMs are the 'safe money', it also looks bad if PMs get too expensive, as it indicates severe market instability, which drives the markets down. How do you fix this? Well, all you need is for PMs to be worth less. How do you do this? Fix+Stabilize the economy, or spread the value of the same sized PM market over a larger amount of IOU notes. Guess which they're doing (in part, because attempting to fix/stabilise the economy would also crash it overnight)
So in essence, what they've been doing is simply (from a market point of view) increasing that amount of PMs in circulation, devaluing it and in turn supressing the price (ie THE JUST DUMPED $10T ON THE MARKET!). And it's also setting up an even bigger crash (better for us) come the inevitable day when - COMEX can't deliver on those IOU notes, because at that point, the entire house of cards comes tumbling down.

Also, chekt