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<p>[QUOTE=&quot;desertgem, post: 1213138, member: 15199&quot;]<p style="text-align: left"><span style="color: #000000"></span></p> <p style="text-align: left"><span style="color: #000000">And basically , that is how it used to be more or less until the Hunt&#039;s adventure into silver. Actually their game plan was excellent. they just didn&#039;t think that the rules could change as they went about accumulating, but they did, and they couldn&#039;t reach the margin without large selling, and the fall began ( at least as I saw it).</span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p> <p style="text-align: left"><span style="color: #000000">Until the ETF such as SLV, GLD, etc. the retail trader ( me and probably most on the board) couldn&#039;t handle whole contracts. The bankers saw a desire for such trading and developed these trusts. Do they have a large advantage? YES!, they wrote the trust papers. Physical delivery to a non-participant trustee is almost impossible, extremely expensive , and inconvenient. Since they rarely have to deliver physical, they only have to have the amount needed to satisfy the trust minimum, as 99.999 % of SLV deals in the paper form.</span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p> <p style="text-align: left"><span style="color: #000000">Even for the big boys who need physical silver, such as private mint suppliers, jewelry industry, automotive, etc. can not do the margin thing all of the way. At&nbsp; a particular point ( I seem to remember 1 month before expiry, but not sure), they have to come up with the full amount of cash to continue the contract. Otherwise they sell or accept cash as the possible payout, so they do not have many contracts going to physical either.</span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p> <p style="text-align: left"><span style="color: #000000">I read other forums where there are rants that silver is illegally manipulated; I doubt this, not that it is being manipulated, but that it is not illegally being done so. It doesn&#039;t have to be because the rules and regulations protect the exchanges and big commodity brokers firstmost. </span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p> <p style="text-align: left"><span style="color: #000000">If SLV has much less physical silver than shares for it, it doesn&#039;t mean much as few of those shares can be converted to physical according to the prospectus of the trust. </span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p> <p style="text-align: left"><span style="color: #000000">Jim</span></p> <p style="text-align: left"><span style="color: #000000"><br /></span></p><p>[/QUOTE]</p><p><br /></p>

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