Comment: This is paper selling

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fireant's picture

This is paper selling

I've tried to explain before that when the 100 to 1 leveraged paper market unwinds, metals will go down; I'm just not proficient with the words to explain it. All the excess metal, which doesn't exist, will be sold off, driving spot prices down. This is also what others describe as the divergence between physical and paper (just starting imo), as physical premiums likely will continue to increase.
Considering the amount of paper leverage, and the selling by banks in need of cash, as well as large institutions, I doubt this is over. No one knows where the bottom is.
As always though, if buying physical, regular purchase increments is still the best policy, as down events such as this clearly show.

Undo what Wilson did