Customers often ask me what will happen to the prices of bullion-priced physical precious metals if the spot prices soar or tank. The answers are not one-size-fits-all market scenarios.
Generally, the prices of physical precious metals will tend to track those of the commodity futures markets for paper contracts. However, there have been multiple exceptions over the years. One significant factor in whether physical markets follow paper markets has been how fast prices have changed. Gold and silver prices rose sharply toward the end of 1979 and peaked in January 1980. As the price of silver reached $50, so much physical silver was being liquidated
