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<p>[QUOTE=&quot;desertgem, post: 1127385, member: 15199&quot;]That rumor was widely distributed, mainly to Dealers in PM websites.</p><p><br /></p><p>If you read the SPDR GLD Trust and basically same for SLV</p><p><a href="https://www.spdrs.com/library-content/public/SPDR%20Gold%20Trust%20Prospectus%2003.31.2010.pdf" target="_blank" class="externalLink ProxyLink" data-proxy-href="https://www.spdrs.com/library-content/public/SPDR%20Gold%20Trust%20Prospectus%2003.31.2010.pdf" rel="nofollow">https://www.spdrs.com/library-content/public/SPDR%20Gold%20Trust%20Prospectus%2003.31.2010.pdf</a></p><p><br /></p><p>You can see that GLD and SLV can give physical delivery<b> IF</b>: you deal in baskets ( 100,000 ) shares, <b>and</b> are one of their &quot;Authorized participants&quot; ( banks like JP Morgan , Goldman Sach. Swiss Suisse, Meryl Lynch, Morgan Stanley, UBS, etc.). These banks originated the shares that SLV and GLD holders can buy,sell, trade, option, etc. But <b>only the original Authorized participants </b>can cash them in ( 100,000 shares lots ) for physical delivery, and only if the trust allows. </p><p><br /></p><p>They could instead just buy future contracts themselves for delivery, but they would have to put up the full amount rather than just the margin 10-20% needed if settling in cash.</p><p><br /></p><p>In either case, I think the chance of retail buyers/sellers causing a squeeze is nil. Trade SLV and GLD for cash and use it to buy physical yourself if one wishes. The &quot;Asian buyers&quot; mentioned could set up their own trust if they wished, but then they would have to use full cash value. All in my opinion.</p><p><br /></p><p>Jim[/QUOTE]</p><p><br /></p>

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