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<p>[QUOTE=&quot;desertgem, post: 1447432, member: 15199&quot;]The problem is that many think that going short is totally separate from an offsetting going long, which is only&nbsp; when one is selling naked ( no commodity or stock to actually put at risk). That is illegal in the US since 2008 and major trading countries since (Germany in 2010 and France, Italy , Belgium, and South Korea in 2011 for Financial stocks), but in the worldwide market and instantaneous transactions is extremely difficult to prove with documentation. The period of time allowed to produce the &quot;short risk&quot; is based on old paper delivery of materials such as shares, and even a legal 7 days of naked shorting can be covered and no legal ramifications.</p><p><br /></p><p>In normal shorting, the entity is selling their own shares,commodity, whatever to drive the price down ( supply &gt; demand), having made arrangement with partners to begin to buy up when the price has reached a selected low point and profit is the difference. This &quot;dumping&quot; tends to produce fear as well as breaking through &quot;stop loss points for many investors, causing them to unwittingly help the &quot;shorting scheme&quot;.</p><p><br /></p><p>Longs could do the same on the upside, but that would take infusions of cash, and usually trys to work on Hyping the cause such as bullion, so the buyers are greater in number. Both types of actions &quot;shorting&quot; or &quot;Going Long&quot; can backfire and lose money. There is also cases of &quot;Naked Longs&quot; where an underwriter for a company or the company itself issues stock that has not been authorized by SEC regulations, also very hard to catch.</p><p><br /></p><p>Options, margined Future contracts ( either side), derivatives, etc. do not involve the actual material or stock. So SLV has 10X more short options than actual ounces of Silver, they also have 10X more long options than ounces of Silver, but neither side can cash it in for the silver so it is a neutral game, a betting game, casino. But Bullion bulls love to say that it is the reason to hold physical ( and luckily they also make selling it their business).</p><p><br /></p><p>One can explain this many times, but the conspiracy proponents love it.</p><p><br /></p><p>By the way, the most &quot;naked shorted&quot; entities and companies were/are Financial institutions.</p><p>IMO. </p><p>Jim[/QUOTE]</p><p><br /></p>

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