Message:

<p>[QUOTE=&quot;medoraman, post: 1232138, member: 26302&quot;]Not trying to argue, but that point also has a counterbalance. If you have to take physical delivery, then its hard for buyers to absorb extra production as well. If a miner show up with more silver than the market expected, it can easily lead to a short term price drop. In a paper market bulls would step in and buy on weakness knowing they have weeks or months to sell without danger of having to physically store it. </p><p><br /></p><p>Kahn wrote a pretty good book on Chinese currency about the turn of the century. In it he detailed operations of London silver market pretty thoroughly as laying out how the Chinese obtained silver for coinage. </p><p><br /></p><p>I am just saying that people who hate the CME I believe tend to have rose colored glasses on to some extent, ignoring all of the advantages of a paper market and discounting the disadvantage of a physical market. Each have strengths and weaknesses.</p><p><br /></p><p>Someone before here lamented what happened to the Hunt&#039;s. Well, the Hunt&#039;s were trying to corner the market, and using market rules to help them do that. The Hunt&#039;s would never have been in a position in a physical market to do that, so even if we had a physical CME then it would never had been a story.[/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