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<p>[QUOTE=&quot;InfleXion, post: 1470634, member: 29012&quot;]As Fatima said, the seller of the futures would have to buy the metal on the open market, and could feasibly end up taking a loss as they&#039;d have to actually pay the going rate of the real asset. This is why they will often pay out more cash than the contract is worth when people ask for delivery, because it&#039;s still cheaper than buying the physical metal for its fair value. That suffices that while these markets are providing a service and a safety net for producers, it is also impacting their profitability by diluting the supply and usurping demand from the real market, both of which put downward pressure on the price of the real commodity.[/QUOTE]</p><p><br /></p>

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