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<p>[QUOTE=&quot;desertgem, post: 2009583, member: 15199&quot;]A lot of the variation is in how the silver company margins itself. Some of the largest holders of future contracts are the silver or gold producing companies themselves. If they had sold a lot of contracts to deliver silver @ $25/ oz. this year when it was at a close base price, they would be doing very well ( +$7 to $8)and might survive at less than $10 an ounce. If they were not cautious to do so, they are probably sellers of options for settlement next year or later to keep the cash flow. This way the silver miners are&nbsp; betting (hoping)&nbsp; the price might be lower so they could buy back their options, rather than deliver their silver at a lower than spot price. </p><p><br /></p><p>The concept that silver or gold would be $#### oz., if &#039;somebodies&#039; didn&#039;t keep it down is a very false premise to look at investing in PM, Sometimes funds ( who are playing with other peoples money) guess right and have the right options that causes spot prices to jump up, and usually they are faulted by the fundamentalists who can not buy cheaply ( relatively) , and often it is the other way when fundamentalists could buy cheaply (relatively) because the funds guessed wrong, are waiting for a bottom, and they don&#039;t want to take the chance.&nbsp; there are some ETF funds which play the negative side and prosper when the other funds guess wrong. </p><p><br /></p><p>I believe most people who make large money from precious metals, do so by promoting them to those who often do not understand or consider the dynamics, not by investing itself.[/QUOTE]</p><p><br /></p>

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