Yesterday, whistle-blower Andrew Maguire took our view that the launch of the HKMEx silver futures will cause significant damage to the cartel viral with his interview by Eric King.
Today, John Embry added his thoughts to the issue, stating that he believes the HKMEx launch will effectively change silver's pricing mechanism from paper (CRIMEX, LBMA) to physical.
Clearly, were silver to be priced according to PHYSICAL supply/demand factors, the metal would be trading at multiples higher than current levels.
"When the pricing mechanism changes from the paper market to the physical market, which is what Andrew is suggesting, this is the inflection point where the price of gold is going to go berserk. Silver even more so because of the tightness in the silver market and the fact that the short position is even more extreme.”
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