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<p>[QUOTE=&quot;fatima, post: 1582325, member: 22143&quot;]As they say the devil is in the details.&nbsp; You have to read the rule book for each to understand the differences and fortunes are made and lost on these details.&nbsp; However at a gross level, the Comex recognizes that unlike real commodities, the supply of acceptable monetary silver and especially gold changes very little.&nbsp;&nbsp; Industrial usage, collector coin purchases are irrelevant unless they change this supply.&nbsp; I will explain further. </p><p><br /></p><p>While a gold or silver future looks like a corn future, that corn future ultimately represents a given quantity of physical corn that will become worthless after X amount of time has expired.&nbsp; It either rots or it&#039;s sold to consumers and consumed.&nbsp; it disappears.&nbsp;&nbsp; A gold or silver future however is a bet of the currency worth of the world&#039;s known amount of monetary silver.&nbsp; (serialized large bars)&nbsp;&nbsp; i.e.&nbsp; It looks like a commodity but it acts like a forex trade.&nbsp; </p><p><br /></p><p>When you buy and sell a Comex gold or silver future, you are not betting on the industrial use of the metal, you are not betting on the collector demand of small coins.&nbsp; You are betting on how much people are willing to pay for serialized bars on deposit for gold and silver.&nbsp;&nbsp; This is completely different than betting on corn, weather, or anything else that affects future supply.&nbsp;&nbsp; It&#039;s very common for people, especially on Coin Talk to completely ignore this aspect of how silver and gold prices are set by these sorts of trades.&nbsp;&nbsp; It&#039;s why they don&#039;t believe that manipulation is possible. </p><p><br /></p><p>In any case, because you are not betting on future physical supply, Comex rules for physical delivery are quite different than that for corn or aluminum or any other real commodity traded on the other boards.&nbsp;&nbsp; This is where the trouble arises.&nbsp;&nbsp; it&#039;s possible to create shorts where you don&#039;t actually own the metal since you don&#039;t have to worry about it rotting.&nbsp;&nbsp; It&#039;s against the rules but many people believe it happens.&nbsp;&nbsp; All kinds of mischief can happen without proper enforcement.[/QUOTE]</p><p><br /></p>

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