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<p>[QUOTE="fatima, post: 1457488, member: 22143"]I agree the comment about the futures market being efficient when it comes to a "real" commodity such as potatoes. But only with "real" commodities. Potatoes will rot if not consumed, the supply changes dependant upon many uncontrollable factors, and there are substitutinons for it. So the invention of the commodities market handles this situation well. Farmers/miners share the risk of production with their buyers. </p><p><br /></p><p>On the other hand, gold, & silver are not real commodities. They are a fixed quantity (relatively speaking), do not rot, and in the case of gold is not even consumed since used gold is recycled at close to 100%. Given that physical gold and silver's supply are relatively fixed, then the price can't be manulipulated. So to fix this, the bankers invented the gold and silver future. This lets them create unlimited supplies of the stuff (on paper) and now the manilupators can move in. It's really a perversion of the commodities market and it also fools people into believing that gold is a commodity. This is why they are often confused and bewildered, often expressed here on this forum, when the price moves exactly opposite of what has been predicted.[/QUOTE]</p><p><br /></p>
[QUOTE="fatima, post: 1457488, member: 22143"]I agree the comment about the futures market being efficient when it comes to a "real" commodity such as potatoes. But only with "real" commodities. Potatoes will rot if not consumed, the supply changes dependant upon many uncontrollable factors, and there are substitutinons for it. So the invention of the commodities market handles this situation well. Farmers/miners share the risk of production with their buyers. On the other hand, gold, & silver are not real commodities. They are a fixed quantity (relatively speaking), do not rot, and in the case of gold is not even consumed since used gold is recycled at close to 100%. Given that physical gold and silver's supply are relatively fixed, then the price can't be manulipulated. So to fix this, the bankers invented the gold and silver future. This lets them create unlimited supplies of the stuff (on paper) and now the manilupators can move in. It's really a perversion of the commodities market and it also fools people into believing that gold is a commodity. This is why they are often confused and bewildered, often expressed here on this forum, when the price moves exactly opposite of what has been predicted.[/QUOTE]
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