/biz/ - Business & Finance

>>27211808
>So they do fractional reserve banking with silver?
Correct
>Why would they dilute the price of the product they're trying to sell though?
What the banks are selling (the paper silver commodity) are a fabrication, they are worthless. The only purpose is to drag down the value of real silver so the banks can accumulate. In the end the banks will not honor contracts for physical silver but instead have clauses where they can pay you a fixed cash amount, while they retain the physical reserves.
>Fractional reserve banking is legal but doing this with silver doesnt sound legal.
Its legal because the government is not only in on it, but likely orchestrating it. The USD is the global standard because of the United State's stability; the government is accumulating hard strategic assets through the banks because it anticipates real or percieved instability in the future.

Here's a discussion on the Bloomberg article.
https://tavex.fi/en/the-paper-silver-market-is-250-times-the-size-of-the-physical-silver-market/

(Pic related) The historic exchange silver/gold was 15/1, at the current prices it is around 70/1. Gold is overvalued 400% to 500% relative to silver. If you adjust the gold price ($1800) accordingly by dividing by 4 and 5, you get a price per ounce $360-$450 range. If you reference the chart 1990-2006 average falls perfectly within this anticipated range. After 2006 is complete manipulation of the commodity markets resulting in absurd overvalue of gold thus undervalue of silver.

>>24470050
What does /pmg/ think of Sprott anyways? Did they get screwed post 2010 or make the right calls?

You boomtards sure do love to lose money with your piss color rocks.