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<p>[QUOTE="desertgem, post: 1689381, member: 15199"]The only paper losers are those holding call options on SLV, GLD, etc. The equal side of those holding put options are making better gains than the physical holders , but will have to sell eventually ( according to their expiration date. The other paper loser are those big timers ( such as bullion suppliers, and such that have contracts on gold or silver in the future. Most will lose all value as it stands due to not wanting to take delivery of gold/silver at a price above value. Contract sellers made out great. They can take profits or buy an offsetting call contract for much less and enjoy profits.</p><p><br /></p><p>Owners of SLV or GLD shares ( paper) have the same proportional loss as physical holders as their shares do not expire and if/when the value rises on the physical metal, their share value will also.</p><p><br /></p><p>The idea in the article you read is to encourage the uninformed that only the hard physical metal is 'safe' even as it loses value. If paper and physical are considered with an open mind, GLD/SLV shares share the same value directives. There is no big time ETF or bullion dealer that only deals with physical, they must deal with paper to some extent for hedging as well as for future inventory control. They are just trolling for suckers. IMO.[/QUOTE]</p><p><br /></p>
[QUOTE="desertgem, post: 1689381, member: 15199"]The only paper losers are those holding call options on SLV, GLD, etc. The equal side of those holding put options are making better gains than the physical holders , but will have to sell eventually ( according to their expiration date. The other paper loser are those big timers ( such as bullion suppliers, and such that have contracts on gold or silver in the future. Most will lose all value as it stands due to not wanting to take delivery of gold/silver at a price above value. Contract sellers made out great. They can take profits or buy an offsetting call contract for much less and enjoy profits. Owners of SLV or GLD shares ( paper) have the same proportional loss as physical holders as their shares do not expire and if/when the value rises on the physical metal, their share value will also. The idea in the article you read is to encourage the uninformed that only the hard physical metal is 'safe' even as it loses value. If paper and physical are considered with an open mind, GLD/SLV shares share the same value directives. There is no big time ETF or bullion dealer that only deals with physical, they must deal with paper to some extent for hedging as well as for future inventory control. They are just trolling for suckers. IMO.[/QUOTE]
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