[Pete from Shawnee Mission]

What did I just read? Physical silver in Japan is $130/ oz. Manufacturers require it and will pay for the physical stuff. Its Banker Notational silver that is only $82 / oz.

https://freerepublic.com/focus/f-news/4359974/posts

Silver Price in Tokyo hits $130 per ounce.

TOKYO PRICE, WALL STREET LIE

"In Tokyo shops and Japanese bullion counters, you are not buying silver in the 70s; you are paying the equivalent of $120–130 an ounce because that is what it costs to replace inventory once you factor in tight wholesale supply, shipping, insurance, currency chaos, and the growing sense that the next shipment might not show up on time, or at all. Kuwait tells the same story in a different language: retail bars priced around $100+ an ounce are not a fat merchant’s greed; they are the market’s answer to a simple question—what will it really take to pry physical metal out of the pipeline in a world where everyone suddenly wants the same scarce asset at the same time.​"

[Disestablishmentarian]

"In Tokyo shops and Japanese bullion counters, you are not buying silver in the 70s; you are paying the equivalent of $120–130 an ounce because that is what it costs to replace inventory once you factor in tight wholesale supply, shipping, insurance, currency chaos, and the growing sense that the next shipment might not show up on time, or at all.

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That is the exact issue.

The paper silver market in NY (i.e., COMEX) has completely lost contact with the physical market. Unlike other financial crises of recent decades, Fed cannot fix (manipulate) this, as they can print paper but they cannot print Silver atoms.

The Shanghai price closed Wednesday at about $12 premium above the paper "Price" in NY.

Shanghai metal exchange is closed until Jan 5th for the New Year. Expecting major fireworks when it reopens Monday.