Log in or Sign up
Coin Talk
Home
Forums
>
Coin Forums
>
Bullion Investing
>
TRYING TO "Play the GSR" -- HORRIBLE IDEA
>
Reply to Thread
Message:
<p>[QUOTE="harrync, post: 3939270, member: 58588"]"Good Delivery Bars" [GDBs] hit $49/oz in 1979. Ordinarily, GDBs are just bullion, but when someone [the Hunt brothers, in this case] is trying to corner the market, they are more like stock certificates: there are only so many of them, so you can buy them up and create a scarcity of GDBs. If you shorted silver on the commodity exchange, you either had to deliver a GDB, or buy back your contract [at a loss, if the price of silver had gone up.] Actual silver, including bags of $1000 face junk silver [which could not be delivered to satisfy a silver bullion contract, even though their content was verified by the same commodity exchange that verified the GDBs], never got much over $30/oz. The refiners who were authorized to make GDBs stopped refining for others. But they were happy to buy your silver at $30, refine it into a GDB, then sell it themselves on the commodity exchange for $49.[/QUOTE]</p><p><br /></p>
[QUOTE="harrync, post: 3939270, member: 58588"]"Good Delivery Bars" [GDBs] hit $49/oz in 1979. Ordinarily, GDBs are just bullion, but when someone [the Hunt brothers, in this case] is trying to corner the market, they are more like stock certificates: there are only so many of them, so you can buy them up and create a scarcity of GDBs. If you shorted silver on the commodity exchange, you either had to deliver a GDB, or buy back your contract [at a loss, if the price of silver had gone up.] Actual silver, including bags of $1000 face junk silver [which could not be delivered to satisfy a silver bullion contract, even though their content was verified by the same commodity exchange that verified the GDBs], never got much over $30/oz. The refiners who were authorized to make GDBs stopped refining for others. But they were happy to buy your silver at $30, refine it into a GDB, then sell it themselves on the commodity exchange for $49.[/QUOTE]
Your name or email address:
Do you already have an account?
No, create an account now.
Yes, my password is:
Forgot your password?
Stay logged in
Coin Talk
Home
Forums
>
Coin Forums
>
Bullion Investing
>
TRYING TO "Play the GSR" -- HORRIBLE IDEA
>
Home
Home
Quick Links
Search Forums
Recent Activity
Recent Posts
Forums
Forums
Quick Links
Search Forums
Recent Posts
Competitions
Competitions
Quick Links
Competition Index
Rules, Terms & Conditions
Gallery
Gallery
Quick Links
Search Media
New Media
Showcase
Showcase
Quick Links
Search Items
Most Active Members
New Items
Directory
Directory
Quick Links
Directory Home
New Listings
Members
Members
Quick Links
Notable Members
Current Visitors
Recent Activity
New Profile Posts
Sponsors
Menu
Search
Search titles only
Posted by Member:
Separate names with a comma.
Newer Than:
Search this thread only
Search this forum only
Display results as threads
Useful Searches
Recent Posts
More...