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<p>[QUOTE=&quot;medoraman, post: 1232786, member: 26302&quot;]Jim,</p><p><br /></p><p>Thanks for pointing these out. All I am saying is there are good reasons to have a paper market, as expenses of physically handling PM, with all of the security needed, is VERY expensive. In a physical exchange you will be incurring all of these expenses, which will drive costs up. These costs create a larger and larger buy/sell spread, just like we see buying and selling to dealers locally today.</p><p><br /></p><p>I am not saying either alternative is perfect, and am not stating that a paper market is preferable to a physical market, just that each has advantages and disadvantages. The &quot;perfect&quot; market would be one like the CME but with some strict limits both ways to prevent overselling or overbuying, but that would limit the exchanges profitablity so not likely to occur.</p><p><br /></p><p>In my humble opinion, I see the Chinese market probably being higher, but with the added costs it will be hard to determine what the true cost of the silver will be, and how much of the price will be the extra costs. I think it will be a resource for Chinese people to physically obtain silver at higher than average prices, but not have too much affect on world prices other than that, due to volume, kind of like APMEX today is for US investors. Not until volume is considerable will it really affect world markets, and even then you will need to strip out the added costs built into it. I do see people coming onto this board and pointing to this market, not realizing the extra costs, and claiming the CME and London exchanges are &quot;screwing the little guy&quot; by under pricing silver.</p><p><br /></p><p>Just an opinion.</p><p><br /></p><p>Chris[/QUOTE]</p><p><br /></p>

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