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Message:: [QUOTE="harrync, post: 2857031, member: 58588"]If you are not familiar with the "good delivery bar" concept, here's a short explanation: The commodity exchange has a list of approved refiners who cast "1000" oz bars of a specified fineness [they don't have to be exactly 1000 oz - I think mine was 978 oz or thereabouts.] The refiner [or the customer who paid to have their silver refined] sells a contract to deliver, and then delivers the bar to an exchange approved warehouse to satisfy the contract obligation. Only these "good delivery bars" can be used to satisfy your obligation when you sell a contract. You can come in with 1112 oz of junk silver, and it would not be accepted [even though everybody would know it had over 1000 oz fine silver - still no go.] When you go 'long" a silver contract, you get the right to have one of the bars delivered to you. This was important back in the Hunt brothers debacle in 1979. People say the price of silver got to $49/oz. Not so; the price of good delivery bars got to $49, but you could buy all the junk silver coin you wanted at about $35/oz. One major approved refiner was on strike, the others went to refining for their own account only; that is, they usually would let anyone bring in a bunch of silver, pay a small fee, and get back a good delivery bar. But not during the squeeze on good delivery bars; they would buy your silver at $35/oz, refine it, and sell it themselves at $49.[/QUOTE]