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A Comex Default Would Help Discover the True Price of Silver

On a global basis, the value of money shrinks when compared to the actual value of silver metal. The discovered price of silver after a Comex default would therefore rise, but the key is that the result would be a more accurate and un-manipulated price based on the higher intrinsic value of physical silver. This is what the silver market currently lacks.

As silver analyst, Ted Butler, has pointed out for decades, by virtue of concentration, the paper metals futures market and OTC derivatives are currently being used to actively manipulate and interfere with the price discovery mechanism of silver and gold for profit, with the covert goal of suppressing precious metal price increases in U.S. dollar terms.

Nevertheless, silver is much more strongly manipulated via this mechanism, so the presumption is that when actual price discovery happens, the market will see silver's price rise significantly. This is why long-term silver investors say that silver is on sale.

If and when a Comex default does happen, traders will also probably see at least one major bullion bank (J.P. Morgan Chase) require some sort of extraordinary support, which might be done covertly to avoid exposing the manipulators acting behind the scenes.