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<p>[QUOTE=&quot;fatima, post: 1481749, member: 22143&quot;]The illegal part is they trade far in excess of the actual silver in their possession.&nbsp; If they get caught with their pants down they then pay off the buyer not to take delivery.&nbsp; It could be argued that even this is OK (naked shorting) but the kicker is that since Glass-Stegall has been repealed, this activity (their losses) is ultimately back stopped by the taxpayers.&nbsp; It allows for a very unfair advantage in regards to risk.&nbsp; </p><p><br /></p><p>When silver ran up to $50 last year, there were massive shorts being placed on the market but the difference is there were some massive longs entering because they decided to play the game as well.&nbsp; What happened is the longs would hold for delivery and then the shorts were forced to pay 125%+ since there wasn&#039;t silver to cover it.&nbsp; For the longs it was an easy 25% return for 3 months.&nbsp;&nbsp; This is fun until one of the parties pulls out.&nbsp; It happened, and silver crashes more than 50% in just a few months.&nbsp;&nbsp; </p><p><br /></p><p>Small buyers, including many here, got burnt badly by it. Coin collectors, who were being forced to buy or miss out also got burned by it.&nbsp;&nbsp; They didn&#039;t understand this wasn&#039;t being driven by demand because they assumed it was being driven as a commodity.&nbsp; The very discussion we had in this topic where silver is assumed to trade like corn is an example of this thinking.&nbsp;&nbsp; I was making posts on this forum warning people not to get too involved in this kind of price change, but people would not hear of it and instead talked about $100 silver.&nbsp;&nbsp; Price Stability? - not a chance.&nbsp; </p><p><br /></p><p>The markets are not suppose to run like this and this is why there are rules and laws against this sort of activity.&nbsp; But like the news about Barclays this week, we see the finance industry is not being properly regulated.[/QUOTE]</p><p><br /></p>

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