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<p>[QUOTE=&quot;fatima, post: 1285123, member: 22143&quot;]But it is different.&nbsp; Here is the reason. </p><p><br /></p><p>The difference between a commodity such as corn &amp; wheat vs a PM like silver and gold, is the former has a shelf life.&nbsp; If someone doesn&#039;t take physical delivery of the train load of corn by a certain date, it rots and the worth of that physical commodity drops to $0.&nbsp;&nbsp; So manipulation by big players has its limits.&nbsp;&nbsp; You can&#039;t short it indefinitely as the physical commodity will actually be delivered to someone and the price will be set by what it can be sold for by the consumers.&nbsp; It has to be consumed in a certain amount of time for it to have worth in the process.&nbsp;&nbsp; i.e.&nbsp; Physical supply and demand sets the price because the short holder is going to want someone to buy that corn before it goes bad.&nbsp;&nbsp; (there is a side issue of that if the price of corn gets too high by paper trades, people will move to eating potatoes or something else)</p><p><br /></p><p>On the other hand, there is no shelf life of gold and silver.&nbsp; A gold or silver bar can sit in the same vault for years and it won&#039;t decay, rot, etc.&nbsp; This makes it possible to short it multiple times (naked shorting) and if any of the buyers decide they actually want to take delivery, the owner of the bar can pay them off in cash with no worries of holding onto something that will become worthless in 6 months.&nbsp; &nbsp; The actual gold bar may never see the light of day.&nbsp; &nbsp; i.e. The amount of paper gold/silver sold sets the price without regard to the physical demand.&nbsp; &nbsp; Of course, all bets are off if the buyers of the shorts all demand the physical.[/QUOTE]</p><p><br /></p>

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