SD Bullion Weekly (a bit on the geopolitical side this week)
CME Warns Against Rigging Oil like Gold
One of the more ironic news-related items of the week was the head of Comex Nymex CME Group CEO Terry Duffy, publicly warning the US Treasury or any government attempting to lower prices using derivatives.
For in doing so, it would erode confidence, somehow further risking a 'biblical disaster' if markets like the CME became unable or less effective at setting the price of critical commodities.
Take the ongoing gold price, for example.
When the COMEX gold futures market was founded in 1975 with the express intention of injecting price volatility into the day-to-day discovery of gold prices on its leveraged exchanges, the price of gold at the beginning of 1975 was $175 oz.
Throughout the last 56 years of time, the price of gold trading during COMEX intraday hours has only risen to $529 oz. Yet the world's current physical gold bullion price is nearly ten times what the COMEX's ongoing data might suggest the price of gold would be, based on intra-hour trading data over half a century ongoing.
The bottom line is that the world's derivative price discovery markets are having a harder and harder time suppressing prices for critical commodities and store-of-value precious metals. It's a shame this latest war is making these facts more obvious to anyone with eyes to see.
The spot silver and gold prices traded down for the week.
The spot silver price closed at $80.57 oz bid.
The spot gold price ended the week at $5,019 oz bid.
The spot gold-silver ratio ended this week higher at 62.
That will be all for this Week's SD Bullion Market Update. As always, to you out there, take great care of yourselves and those you love.
9:14
- US intervention in oil futures would be ‘biblical disaster’, CME warns
https://archive.is/gYBq6
- Win a Monster Box of Silver, enter here:
https://SDBullion.com/sweepstakes