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<p>[QUOTE=&quot;medoraman, post: 1721224, member: 26302&quot;]Actually, if you study markets, you will find markets that employ leverage are usually MORE in line with ultimate fair value than one that forbids it. Its a common misconception, but &quot;paper markets&quot; were actually created to be MORE FAIR than physical markets. They actually do work much better than physical markets. </p><p><br /></p><p>For proof of this, I deal with a certain commodity a lot, and that commodity has two markets. One a physical, and second a futures. On any given day the physical can go up or down 5%, and 10% swings have not been unheard of. Its simply a function of &quot;who shows up&quot; that day, and if a typical day trades 120,000 pounds but someone shows up with 800,000 to sell they can literally punk the market. HOWEVER, the futures market is completely different. Because of leverage on all sides, no one, not even an unnamed multibillion dollar user of this commodity, can manipulate it. There simply are way too many other players in the paper market, and this depth allows the market to not be blatantly manipulated at will.</p><p><br /></p><p>I would be willing to bet anyone every single ounce of silver I own that a purely physical silver market would be extremely volatile and much more manipulatable than the paper markets. Paper markets were not invented to rob you of your hard earned silver profits, they were invented to solve really BAD aspects of physical markets.</p><p><br /></p><p>Paper markets to me are like democracy, the very worst design for a market except for every other design.[/QUOTE]</p><p><br /></p>

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