The international silver price is derived from gigantic trading volumes of ‘paper silver’ in London and New York which have little connection to real physical silver inventories or annual silver supply. It is therefore crucial for investors to understand the differences between physical silver and paper silver and to grasp that one is real ownership of tangible silver while the other is not.
This infographic from BullionStar lays out the context, showing that physical silver is a scarce and valuable investment and monetary metal far removed from the world of unallocated and derivative silver trading.
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