/biz/ - Business & Finance

Pricing Implications of a Comex Default

Of course, a Comex default of this type means that you will not be able to buy silver from the usual markets until the dust settles. Also, when said dust has finally found a resting place, silver will undoubtedly be priced much higher.

That is because the price of silver will be based on the actual amount of silver metal in circulation, rather than on the inflated amount of silver paper that has suddenly been turned into paper money instead.

Some of the silver pricing figures proposed are difficult to believe outside of a full dollar collapse (on the order of $500+/ounce), but seeing the price of silver more than double from where it is today would be trivial in a Comex default scenario.

Indeed, if silver’s price were only adjusted to the historical 17:1 pricing ratio with gold, then silver would be trading at roughly $100/ounce, which is basically triple the current price.