While many precious metals investors realize the massive amount of paper trading leverage taking place in the gold market, they should see what is going on in the silver market. In a previous article, I provided data showing that an amazing $9.8 trillion of notional gold paper trading took place on the world’s exchanges in 2016 versus $42 billion in actual physical gold investment. This was a paper to physical ratio of 233 to 1.
However, the amount of paper trading leverage in the silver market is much higher than that.
… the paper notional silver trading ratio to physical silver investment was a whopping 517 to 1… double the 233/1 for gold.
PG View: You know the old adage: An ounce of silver in the hand is worth 517 in the bush . . .
Don’t settle for a paper or digital representation of gold or silver, only buy the real thing and take possession.