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<p>[QUOTE="desertgem, post: 3294003, member: 15199"]When you buy or sell a silver contract, you are not touching a single silver oz. UNLESS you buy a contract for physical delivery on a set date ready or not. or a contract to sell physical silver at a set date. The CASH is put up for deliver on the date of the TRANSACTION, so you pay the full price and the storage and transportation costs for the bars.</p><p><br /></p><p>If JPM or any investor thinks the price is going to fall, they can sell contracts at a slightly lower value that are not delivery of silver and then use the cash to buy contract to receive silver in the future at a lower price. If instead silver stays at the same price, JPM will lose. Actually although these contracts are based on silver, very little silver actually moves from JPM ( except for manufacturers who use large amounts, jewelers, bullion makers, etc. ) the rest is done in cash transactions both ways.</p><p><br /></p><p>"1ox. silver for 10 people, one person wins 9 are out"</p><p><br /></p><p>The total amount of silver "contracted" to go both ways is much higher than the amount available, but this is true in both directions , Only delivery contracts are handled in silver if demanded, all others are handled in cash.</p><p><br /></p><p>If you wish to contract for 1000 oz of silver for delivery , you pay the actual contract price of the silver plus transaction fees and storage rental and delivery upfront, and on the demand date, it becomes available to the contract holder.</p><p><br /></p><p>If you buy the contract for the future delivery, you pay the cash value of the contract plus fees. Obviously if silver jumps, you sell the contract anytime for cash or hang to the end and get it for the contract price plus fees ( Exchanges make their money on fees and their own possessions of silver.</p><p><br /></p><p>The exchange by law doesn't have to have silver to pay off a contract. Their prospectus ( which I have read and so should anyone believing the internet gossip sayd they can pay it off in cash if they don't have enough silver as cash is still legal~ you paid in cash and so can receive cash in return.</p><p><br /></p><p>I sometimes play the paper game and made and lost cash at various times, but it was my good or my bad when it happened. It's not fixed, just designed for silver dealers, not the average stacker.</p><p><br /></p><p>Unfortunately it is an easy attention getting for "Stacker" publications to twist the facts a little to make it appear that you better buy physical silver for stacking and not paper because some day they may not have any silver available to sell to you.....Guess who are big players in the silver paper game....Yep. the bullion suppliers who pay/support for such publications. They adjust their winnings/losings with their costs over melt depending on whether they are winning or losing their paper bets.</p><p><br /></p><p>Lastly it is stackers ( IMHO) that change the price of silver much more than any other industry as they increase the supply if they sell, or deplete the supply when buying. So heavy buying will raise the price. An article such ones on exchanges can "scare" stackers so the buy more silver, more ammo,more guns.....and the prices go up to do so because of it. They are their own worse enemies by misguidance. But please read about the commodity market! IMO. Jim[/QUOTE]</p><p><br /></p>
[QUOTE="desertgem, post: 3294003, member: 15199"]When you buy or sell a silver contract, you are not touching a single silver oz. UNLESS you buy a contract for physical delivery on a set date ready or not. or a contract to sell physical silver at a set date. The CASH is put up for deliver on the date of the TRANSACTION, so you pay the full price and the storage and transportation costs for the bars. If JPM or any investor thinks the price is going to fall, they can sell contracts at a slightly lower value that are not delivery of silver and then use the cash to buy contract to receive silver in the future at a lower price. If instead silver stays at the same price, JPM will lose. Actually although these contracts are based on silver, very little silver actually moves from JPM ( except for manufacturers who use large amounts, jewelers, bullion makers, etc. ) the rest is done in cash transactions both ways. "1ox. silver for 10 people, one person wins 9 are out" The total amount of silver "contracted" to go both ways is much higher than the amount available, but this is true in both directions , Only delivery contracts are handled in silver if demanded, all others are handled in cash. If you wish to contract for 1000 oz of silver for delivery , you pay the actual contract price of the silver plus transaction fees and storage rental and delivery upfront, and on the demand date, it becomes available to the contract holder. If you buy the contract for the future delivery, you pay the cash value of the contract plus fees. Obviously if silver jumps, you sell the contract anytime for cash or hang to the end and get it for the contract price plus fees ( Exchanges make their money on fees and their own possessions of silver. The exchange by law doesn't have to have silver to pay off a contract. Their prospectus ( which I have read and so should anyone believing the internet gossip sayd they can pay it off in cash if they don't have enough silver as cash is still legal~ you paid in cash and so can receive cash in return. I sometimes play the paper game and made and lost cash at various times, but it was my good or my bad when it happened. It's not fixed, just designed for silver dealers, not the average stacker. Unfortunately it is an easy attention getting for "Stacker" publications to twist the facts a little to make it appear that you better buy physical silver for stacking and not paper because some day they may not have any silver available to sell to you.....Guess who are big players in the silver paper game....Yep. the bullion suppliers who pay/support for such publications. They adjust their winnings/losings with their costs over melt depending on whether they are winning or losing their paper bets. Lastly it is stackers ( IMHO) that change the price of silver much more than any other industry as they increase the supply if they sell, or deplete the supply when buying. So heavy buying will raise the price. An article such ones on exchanges can "scare" stackers so the buy more silver, more ammo,more guns.....and the prices go up to do so because of it. They are their own worse enemies by misguidance. But please read about the commodity market! IMO. Jim[/QUOTE]
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