Determining Gold & Silver Spot Prices: A Contrarian Approach using Real-time “metals” Data
Since the dawn of time, gold and silver have been deemed to hold value, but determining their real cost has been an ongoing challenge.
Today, investors look to financial markets to determine the spot prices for the metals that do not necessarily reflect the actual cost associated with obtaining them.
For example, at a consumer level, physical silver cannot be bought or redeemed at its listed spot price, unless you are connected. Speculators have voiced their agitation because they recognize that the metal has historically been undervalued, or even manipulated.
This year alone, JPMorgan Chase made headlines as the bank agreed to pay more than $920 million to settle investigations into its alleged manipulation of metals prices and Treasury securities. And, that’s just one bank’s story…
The manipulation of the existing market is so rampant that we’ve seen groups of advocates actively work to combat against the suppression of precious metals prices, such as the Gold Anti-Trust Committee (GATA).
So, how can businesses remain confident that existing spot prices are accurate if the largest players in the space are allegedly manipulating the market?
Whether there is price manipulation or not, people just want to know that the spot prices they reference are as close as possible to the real cost of the precious metals. It is a critical service needed in the metals market and one that LODE is trying to address.
That’s why, coming soon, LODE will launch its Price Oracle, a pricing mechanism designed to give individuals a more accurate and true price feed for gold and silver.
In essence, the Pricing Oracle is a real-time feed that pulls price data from bullion dealers in all corners of the globe. By taking and cross analyzing the costs and premiums for multiple bullion products (including the paper market), LODE is able to produce a more accurate picture of what the cost of gold and silver is for individuals everywhere.
It is LODE’s hope that the bullion industry can use the Price Oracle as a measure of prices that isn’t burdened by manipulation, and that will become the standard for the industry.
Within the project, the Price Oracle will work in the background to enable LODE Community Members to see how metals are priced and sold around the world, and create margins in line with what they would buy from a retailer.
The Pricing Oracle is symbolic of a crucial step to restore honesty to the monetary system, by drowning out the noise created by inaccurate representations of the metals’ value.
It is LODE’s hope that every member of the precious metals market can rely on this tool to represent accurate bullion prices, from individual metal enthusiasts to bullion dealers globally.
Stay tuned for more updates on the Price Oracle, which will be launching soon. Thank you for your continued support in the LODE Project and for forming part of the growing community.
