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<p>[QUOTE=&quot;InfleXion, post: 1277019, member: 29012&quot;]I won&#039;t argue that paper silver is a speculator&#039;s asset, but why is this the case? At $30 silver with 1 Boz available (which is a generous estimate), one could buy the entire market with $30 billion. With paper silver leveraged in the area of 100 to 1 vs. the actual physical in existence, and short positions in existence to the tune of at least a couple billion even after how much they&#039;ve unwound with this recent dip (arguably orchestrated for that very purpose) it makes sense why it is so easily moved. With hundreds of trillions in the derivatives market, it only takes a drop in the bucket to make big moves in silver.&nbsp; </p><p><br /></p><p>I would agree that if manipulation is to be the word applied, that it goes in both directions. The point I would make is that the market is only able to be speculative because the price is so low. Eric Sprott and David Morgan correctly anticipated a $5 increase in the price of silver just by opening up the PSLV and buying up 20 million ounces of physical silver. There are quite a few billionairres nowadays who could suddenly decide to do the same if they lose faith in paper assets. </p><p><br /></p><p>Once the physical market is squeezed (and it is noticably squeezed at today&#039;s prices compared to $40 silver) to the point of the CME price being irrelevant I highly doubt it will be at the mercy of such speculation. In the hypothetical case that precious metals were the only safe haven the price is nowhere anywhere close to where it would have to be for everybody to join the party. There&#039;s just not enough of it around, and would run out first unless the price went higher. Precious metals are created by exploding stars, and we can&#039;t make more of it. We can only make more paper.[/QUOTE]</p><p><br /></p>

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