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<p>[QUOTE=&quot;Cloudsweeper99, post: 1296004, member: 3011&quot;]You&#039;re still missing the point.&nbsp; I&#039;m not arguing the mechanics of shorting, which am aware of.&nbsp; I&#039;m arguing supply and demand for silver.&nbsp; Using your example, Persons A, B and D all purchased shares in the expectation that they&nbsp; making an investment in silver.&nbsp; Even if A and D did not have margin accounts that permitted their shares to be lent, the fact that Person B did, and Person C took him up on the offer means that there are 300 long postions for 200 ounces. Presumable Person B originally bought SLV because he wanted exposure to silver -- not because he wanted to give the brokerage company the ability to earn another income stream, and the shorting of SLV permitted this demand to be fulfilled without requiring any silver.&nbsp; If SLV didn&#039;t exist, Persons A, B and D would have had to purchase 300 ounces.&nbsp; By using SLV, they only purchased 200.&nbsp; Barrons reports 20 million shares of SLV sold short, so I believe it is permitted.&nbsp; <a href="http://quotes.barrons.com/slv" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://quotes.barrons.com/slv" rel="nofollow">http://quotes.barrons.com/slv</a>[/QUOTE]</p><p><br /></p>

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