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<p>[QUOTE=&quot;medoraman, post: 1179213, member: 26302&quot;]But is the market allows it, then its not a default. Only if the contract states that settlement has to be in physical delivery would I view it as a default. If the firm goes into a market knowing this, but they physically need the silver, then they should view the CME as not a source for their silver. They should physically hedge.</p><p><br /></p><p>I am not saying this is not making the market worst off, as many may now do exactly as I described and not use the market for their future hedging. I simply view a default as doing something not allowed for in a contract. If you make contract that prohibits X, and you do X, then youa re in default. If you make a contract that allows X or Y, and you deliver Y, you are not in default. I am not an expert in this market, but my understanding is they now allow for cash settlement. Well that fact precludes most forward contracting then, if you cannot count on the physical silver. It makes the market less useful.[/QUOTE]</p><p><br /></p>

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