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<p>[QUOTE=&quot;desertgem, post: 1514334, member: 15199&quot;]First of all &quot;a fraction&quot; is correct, but not in the way you intended. If anyone takes the time to read the prospectus of either the GLD or SLV <b>Trust</b> ( my emphasis)&nbsp; you would find that for a non-principle&nbsp; to take delivery of physical metal requires a huge amount of shares ( basket) to be tendered at one time and delivery fees are large and the process is not instantaneous, but requires forms, blah,blah, ~ so no one could get out fast. The principles ( large banks and hedge funds) can do so, as they financially back the trust with their cash/silver. The silver that back each share of SLV or gold that backs each share of GLD is not in any way attached to the shareholder&#039;s personal ownership except as collateral. </p><p>&nbsp;&nbsp;&nbsp; Anyone who thinks they are holding the <b>rights </b>to PM are mistaken because they did not read the prospectus.</p><p>To the retail shareholder ( you or me) that owns either SLV , GLD, or the options, the settlement is in cash ( unless you own enough to make a basket worth. If you want delivery of PM, get a contract for delivery and pay the full price, and you will get it at the specified expiration.</p><p><br /></p><p>Then what is SLV or GLD good for? To be in the market on the commodity, and willing to take cash from any increase or lose on any downward movement. Many IRAs may not allow investments in silver or gold, but will in SLV or GLD or their options. Also for the high risk takers, options can leverage any increase or decrease in PM price for a certain period of time. Options can bet on an increase, a decrease, remaining within a channel , or predicting outside of a channel, etc. So they can accommodate any &quot;flash&quot; one gets in their head as to what the price will be 3 months from now. These funds have their places, but also their limits.</p><p><br /></p><p><br /></p><p><br /></p><p>The risk would be the same as buying bullion at wholesale from a middleman. I suspect the 2 funds of Paulsen and Soros may be associated with a principle and thus at a different level than retail. They are balancing their risk/reward outlooks in a positive way for PM. I seriously doubt that if I can read the prospectus and know what is going on , that they haven&#039;t also, with much more knowledge to look for fault.</p><p><br /></p><p>I currently hold no SLV&nbsp; or GLD. </p><p><br /></p><p>Jim</p><p>&nbsp;<p style="text-align: left"><span style="color: #000000"></span></p> <p style="text-align: left"><span style="color: #000000">&nbsp;</span></p><p>[/QUOTE]</p><p><br /></p>

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