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<p>[QUOTE=&quot;InfleXion, post: 1646513, member: 29012&quot;]Leverage skews reality. No question about it. </p><p><br /></p><p>However, taking out a loan is one thing. Buying on margin is another. Just because you put 10% down on your home doesn&#039;t mean you own it. You still have to pay the rest of the mortgage with interest unlike the futures market which will give you 100% ownership for 10% payment for example. This may be splitting hairs since technically the home is considered sold, it still influences the market as though you bought the whole thing, etc. </p><p><br /></p><p>So sure, you can take a home off the market by using leverage, but another difference is that you can&#039;t buy part of a house (in the vast majority of cases). With commodities the &quot;each&quot; measurement is much smaller. No need to buy 10,000 ears of corn when you can buy 1 without tieing up the other 9,999 of them. So I can see the need for leverage with housing since everybody needs a house. With commodities it&#039;s more of a nice to have. </p><p><br /></p><p>Here is the big difference though. Anybody who buys a house can buy on leverage. So it&#039;s a fair playing field. With silver, only people buying on the futures market can buy on leverage. If I want to go buy it through any other method I don&#039;t get to use the leverage. So the playing field is not fair. </p><p><br /></p><p>Additionally, the price discovery mechanism for housing is based strictly on actual houses, not contracts that represent houses without an actual house existing to back the contract. A mortgage backed security may be a paper contract but there is a house tied to it unlike silver contracts of which only 2% have the metal backing. So the amount of leverage is much less with housing.[/QUOTE]</p><p><br /></p>

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