HKME & Silver

[Sandblaster]

Any thoughts on what may happen when the Hong Kong Mercantile Exchange begins trading 1000Oz. Silver contracts on Friday?

Sanblaster

[Joe King]

It can only mean good things, IMHO.

Edited to add:....and I hope they sell 'em by the train load.

[Ponce]

Silver is no longer in the hands of the market but rather of the economy......and we know where that is going.

[gunDriller]

any move towards letting physical silver set the price, instead of paper silver, will involve matching up the huge amount of money spent on paper silver, to the relatively small amount of physical silver.

given that the ratio is in the ballpark of 100:1, that results in a strong case for the free market setting a physical silver price 100X today's silver price ($40 ==> $4000).

however, like a fire that consumes the available oxygen, i don't think it will "get there" (the price of physical in a market where physical sets the price.)

i think the price rise will "suck some of the oxygen" out of the economy, and out of the physical silver market, so that the price rise will only be in the ballpark of 25X ($40 ==> $1000).

however, because there is so much MANIPULATION, it won't be a nice, gradual, 5% a day rise. there will be neck-snapping whip-cracking volatility.

[ximmy]

I thought HKME would have had a greater impact on gold prices in it's first two months... I suppose silver prices will respond in the same way... :-\