World silver spot prices are determined by a once sacred, but now inept, process. While the evolution of futures contract for the modern age helped facilitate the industrial revolution, it has now been completely usurped and abused.
A few months ago the World Gold Council suggested the Banc d’Italia use its gold reserves as collateral for their sovereign debt. But this doesn’t look like an option following a speech by Salvatore Rossi, director general of the Italian central bank.
It was clear from the outset of the gold price smash that there is a divergence happening in the gold market. It was clear that demand for physical gold was not enough anymore, so we set about looking into the elements of the gold market.
One argument against silver's return to acknowledged monetary status has been that because much of the above ground silver has already been used up by industry, there simply is not enough supply to flow around in the economy, which is a primary requirement of a suitable currency.