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<p>[QUOTE=&quot;desertgem, post: 1447477, member: 15199&quot;]Since neither of us knows the details other than from the &quot;experts at CNBC&quot;, their explanation is that the original hedge, basically ( as I understand it) supporting&nbsp; European bailout scheme as a gainful side, started to be the wrong direction, so they hedged the hedge ( not illegal ) in the other direction to offset the loss. Even the SEC hasn&#039;t released any info nor determined any regulatory action.</p><p><br /></p><p>But how does this involve Silver or Precious metals? These seem to be derivatives involving financial entities or currency?<p style="text-align: left"><span style="color: #000000"></span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p> <p style="text-align: left"><span style="color: #000000">You have the reverse. Options, future values are not based on how many of them are being transacted, as one has to be sold for every one bought, and the transaction is in cash and value determined by a formula based on many factors, but it applies to the short side as well as the long side. The quote you make is probably based on SLV or GLD options as those are the common illustrations by bullionists, and as I mentioned above, they have no correlation to the amount of silver held. The actual exchange of shares rather than options do have an association to the underlying amount of silver, but one can not collect on that unless they are a partner, so they just get cash. the price of silver is what you get when you sell it for melt. No matter how you cut it or explain it, that is the actual and true price of silver. If you like the level, buy it, if not, try explaining that it is not the true cost and see where that gets you.</span></p> <p style="text-align: left"><span style="color: #000000">IMO.</span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p> <p style="text-align: left"><span style="color: #000000">&nbsp;<p style="text-align: left"><span style="color: #000000"></span></p></span></p><p style="text-align: left"><span style="color: #000000"><span style="color: #000000"><br /></span></p></p> <p style="text-align: left"></span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p><p>[/QUOTE]</p><p><br /></p>

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