Bullion banks can impact silver prices through contract creation, Alasdair Macleod notes

Bullion banks can impact silver prices through contract creation, Alasdair Macleod notes
Silver weakness attributed to paper markets

Alasdair Macleod questioned why silver remains weak, stating that the issue is not related to supply and demand. According to Macleod, silver's weakness is a phenomenon driven by paper markets, where bullion banks are able to create contracts and dump them into a quiet market, triggering stop orders and pushing prices lower.

Macleod previously linked sharp markdowns in paper gold and silver to futures contract expiry and strategic moves by bullion banks, as reported in an earlier article. He also highlighted a rise in gold ETF activity despite the gold price remaining below $4,200 in a separate report. These developments add context to his recent comments on the disconnect between silver prices and underlying supply and demand.

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