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Will Palladium over take Gold ?
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<p>[QUOTE="desertgem, post: 2907023, member: 15199"]Unbelievable , yet even today the bullion news letters still try to con people who don't understand the concepts of the deal with paper trading.</p><p><br /></p><p>If you hear someone say " I bought a house today for possible resale" , do you assume they paid the full price? ...or that they put 15% or so down and are going to hold it ( renting or living in it ) until the value goes up. Few stay a full 20 or 30 yrs and if they do , have to eventually pay the full value or more.</p><p><br /></p><p>You buy a silver contract for cash saying you have until a certain date to sell it back. If it goes up , you get the upped cash value, if it goes below, you sell for what ever you can get for it. No SILVER passed to end user.</p><p><br /></p><p>If you buy a contract for several months on paper, you can ( depending on the exchange) , usually with more than 30 days remaining, pay the full price current then for the delivery of real silver at the end of the time period or resell it for what ever it is worth at the time. Jewelers and manufacturers use this to ensure they have supplies on time at their decision price. Few individuals use this method as they are just gambling as to whether the price goes up or down, depending on how the general "buy a couple of ounces a week" end users are hoping for the future. </p><p><br /></p><p>However the exchanges are not risk takers as to not delivering physical, so every prospectus says if they can't deliver the physical , they have the right to deliver cash. So they don't worry. IMO.[/QUOTE]</p><p><br /></p>
[QUOTE="desertgem, post: 2907023, member: 15199"]Unbelievable , yet even today the bullion news letters still try to con people who don't understand the concepts of the deal with paper trading. If you hear someone say " I bought a house today for possible resale" , do you assume they paid the full price? ...or that they put 15% or so down and are going to hold it ( renting or living in it ) until the value goes up. Few stay a full 20 or 30 yrs and if they do , have to eventually pay the full value or more. You buy a silver contract for cash saying you have until a certain date to sell it back. If it goes up , you get the upped cash value, if it goes below, you sell for what ever you can get for it. No SILVER passed to end user. If you buy a contract for several months on paper, you can ( depending on the exchange) , usually with more than 30 days remaining, pay the full price current then for the delivery of real silver at the end of the time period or resell it for what ever it is worth at the time. Jewelers and manufacturers use this to ensure they have supplies on time at their decision price. Few individuals use this method as they are just gambling as to whether the price goes up or down, depending on how the general "buy a couple of ounces a week" end users are hoping for the future. However the exchanges are not risk takers as to not delivering physical, so every prospectus says if they can't deliver the physical , they have the right to deliver cash. So they don't worry. IMO.[/QUOTE]
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