Message:

<p>[QUOTE=&quot;fatima, post: 1474152, member: 22143&quot;]I am glad you posted this as&nbsp; I think this is where people get royally confused about the CME and futures contracts for real commodities.&nbsp; They don&#039;t realize that when a futures contract is created by someone who owns 5000 bushes of corn they wish to sell on a certain date, that in fact (legally) two transactions take place.&nbsp;&nbsp; The first transaction is the contract is sold to the Exchange.&nbsp; The second transaction is the Exchange sells this contract to waiting buyers wishing to own a corn future and the exchange will buy the contract back for those willing to get out of a contract (before delivery date) to another willing buyer.&nbsp;&nbsp; The volume is simply the number of times this single contract will change hands.&nbsp; It may change hands thousands of times, but there is only one contract in this simple case.&nbsp; In the end, in this simple case, when time comes for delivery, there is still only a single contract representing 5000 bushels of corn.&nbsp; If that corn is never delivered then the contract is worth $0 and people are not in the habit of buying something that is worth nothing.&nbsp; The party holding the contract at delivery will have to deposit the remaining amount so the farmer can get paid for his corn.</p><p><br /></p><p><br /></p><p>Now relevant to this topic and why this discussion took place is that with silver &amp; gold, there is no product with a shelf life.[/QUOTE]</p><p><br /></p>

Your name or email address:

Do you already have an account?

• No, create an account now.
• Yes, my password is:
• Forgot your password?

Stay logged in