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<p>[QUOTE=&quot;GDJMSP, post: 990722, member: 112&quot;]Except for one thing, they cannot return the metal because they do not have it any more. As was stated - the &quot;lease&quot; is merely renewed in most cases. Of course you are correct, it is like shorting stocks. But just like with shorting stocks, the person doing the shorting is selling something he does not own but is owned by somebody else. </p><p><br /></p><p>With silver or gold, the person who is leasing the silver sells it at current prices all the while hoping that silver goes down. If it does go down, he then goes out and buys more silver from somebdoy else at the now reduced price and then returns that new silver to the person he leased it from.</p><p><br /></p><p>But if it does not go down, he is then forced to renew the lease and agree to pay more interest on that new lease. Or loose even more money over and above the lease rate he agreed to by buying new silver at the current higher price.</p><p><br /></p><p>The point of posting the article I did was to explain how it worked - it did that. I was not agreeing or disagreeing with the author.[/QUOTE]</p><p><br /></p>

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