I thought I would put today in perspective for those throwing in the towel on gold and silver. 23,000 silver contracts were sold in just a few minutes this morning. This equates to 115 million ounces. For perspective, there are only two countries in the world that produce this much in one year, Mexico and Peru. China roughly produces 115 million ounces but the production is not normally sold onto world markets.
Looking at this from a ‘company’ perspective, no single company even comes close to producing 115 million ounces. In fact, the three largest silver producing companies in the world, Fresnillo, KGHM Polska, and Goldcorp only produce about 125 million ounces combined over a year’s time.
Today’s action, selling 115 million ounces of silver is an impossibility in any ‘real world’ governed by any real rule of law because of the above production numbers. As I have said for years when these raids occur, ‘no one has this much silver to sell, and no one would be stupid enough to sell in this fashion if they were trying to get the best price possible for themselves or their client’.
This post was published at JSMineSet on March 2nd, 2017.