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Bullboard - Stock Discussion Forum First Majestic Silver Corp AG


Primary Symbol: T.AG

First Majestic Silver Corp. is a Canada-based mining company focused on silver and gold production in Mexico and the United States. The Company owns and operates the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine, and the La Encantada Silver Mine as well as a portfolio of development and exploration assets, including the Jerritt Canyon Gold project located in northeastern Nevada... see more

TSX:AG - Post Discussion

First Majestic Silver Corp > The derivatives market
View:
Post by Crashcomingsoon on Apr 30, 2021 4:01pm

The derivatives market

Mints are running out of gold; not enough physical silver to cover paper - former U.S. Mint Director | Kitco News

My Comment:  The paper market is certainly depressing gold and silver spot prices

Excerpt:

"If you go to any of the top retailers for gold bullion and take a look at what they're charging for an ounce American Eagle gold bullion coin, even though the spot price right now is $1,775 give or take, you're hard pressed to find a ounce gold coin for anything less than $2,000, and I've seen it as high as $2,100," he said.

One of the main reasons for why the spot prices have not caught up to gold and silver's premium-adjusted price is that the overall markets are flooded with bullion derivatives, Moy said, but it's only a matter of time before the short contracts keeping the price down expire.

"What's artificially depressing the price of gold now is that there's a lot of institutional investors that don't hold gold. What they hold is they buy gold derivatives, like futures...and a lot of them are betting that the economy's going to recover and that everything's going to be fine and gold's going to go down," he said. "As those short contracts come up, what you're seeing is a popping in price."

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