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161 sats \ 0 replies \ @freetx 28 Jul \ on: Can This Happen To Bitcoin? econ
A few random thoughts:
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Silver / Gold prices are set at the paper market (yes, its set at COMEX / LME price .... but 95+% of those people are trading paper contracts). This creates a perverse situation where physical purchases have a premium attached, but sales are sold at spot. For example right now price of AG is $28.15 but buying a 1oz Silver Eagle is going for $35.50 (a 25% premium). This gap between buying premium / selling at spot is caused by paper market distortion.
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If even 20% of Gold/Silver buyers took physical delivery, it would rekt their scheme....but people dont take physical delivery....because big heavy rocks
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BTC is going to be less susceptible to these schemes because its so easy to take physical delivery.