Free market vs Regulated Economy

[omygSilver]

Brother John, thank you for all your video updates on line.

Can you explain how a regulated economy can maintain it's self when any free market system operates near by? Case in point. The price of Silver. How can the price of paper silver depress the price of actual physical silver if the amount of physical silver needed is not available?

If true physical silver was in short supply dealers would need to adjust the “premium” of their product over that of the cost of raw material or “spot price”. One would expect to see a “surcharge” for delivery, needed to balance the supply and demand equation.

Do the silver dealers simply cut out the middle man and deal with the mines directly? Do they make up the lack of production from the mines by recycling used inventories? Somehow the demand for the product needs to balance with the value of production. Is it simply a demand principle that the idea that people will not pay two dollars for piece of silver that has a ten cent price tag stamped on it's face? Or is it the need to hold up profits in other sections of the economy makes it plausible to allow for such a huge loss in this sector?

Here is the bind:
Numismatic stacker(s) purchase the limited additions while junk silver collectors hoard the warn coins previously doomed to the recycle fires, labor costs increase as miners dig deeper to find new veins. Older less productive closed mines have not been re-opened. The cost of refining goes up with the cost of labor and the energy needed in the production of silver.

How can paper silver suppress the physical silver if there is in fact a true shortage of the metal?


As far as I can understand they cannot both exist (have value) unless there is a true relation in reality with each other.

So what are they? Separate but different,,, or Separate and the same?