Peer-to-Peer or Market?

[aztecstargazer]

Are precious metals sold peer-to-peer or is it sent to market and bought there? Places like the COMEX sell contracts, but is it for all transactions? I don't know if a primary silver producer is able to sell their metal directly to a consumer, like a used car. Or is it all held in trust at market, like oil?

[sixgun]

If a buyer wants a decent amount of metal - several tonnes, this would be done through the spot [cash] market. A buyer would go long XAG/USD or whatever currency was being used. This is transaction on the currency market; gold and silver are currencies. This locks in the price. These contracts are then presented through the broker for delivery. 

COMEX is the exchange - the Commodities Exchange, part of the New York Mercantile Exchange [NYMEX]. Lots of futures contracts are traded through the COMEX - some are for gold and silver. This has become primarily a paper market. Rarely do longs demand delivery.

Silver mines might sell metal. It would depend on the mining company. Samsung for example came to an agreement with Avino Silver and Gold Mines ltd in 2015 for silver. You could buy on the Shanghai exchange in China and get delivery of silver.