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Message:: [QUOTE="desertgem, post: 1711614, member: 15199"]They do deliver physical bars, only you have to shell out the price based on 5,000 oz. of silver. So at $22/oz spot, your cost for a delivery contract is $22 X 5,000 = $110,000 now plus brokerage fees and delivery storage to a NYC area vault for you to pick up.  That is why most people purchase such on margin which is a fraction of this. If you want to cancel out, you offset the purchase cost with a sell  of the same type/size within the expiration date. Of course this is called "paper PM" by some. If silver drops to $20 an ounce, you have to come up with more cash margin or lose. A crash generally frees up a lot of physical silver due to margin calls or people selling their paper. Of course then the stories of people "backing up the truck" translates to buying 5 more ounces or so~ biggie for some. If someone has the 100,000 cash ,then they can buy the delivery of physical. Don't let anyone tell you physical is scarce. It may be in the middle markets, but for the real commodity dealers, the only question is when to jump in and buy the contract for future delivery. They will wait until they see good evidence that the price is going up and staying for a while. One of us where $5000 worth of silver at a time is a big deal, moves the market like hitting a hippo with a plastic swimming noodle. IMO.[/QUOTE]