thats how it works. JPM sells me an ounce of paper silver for 26$. When the price of physical silver pushes and drives up the price of paper silver well guess what?
I get to sell my paper silver ounce and net the profit.
So if that perfectly smooth brain of yours can follow, then if the banks sold way more paper ounces than they have backed by metal then for every $1 their paper ounces goes up they owe out more on the paper money than their physical silver appreciated.
What specifically is this paper you talking about a future? Of which you can take delivery of physical silver, an option? If so on what because those options on futures also can be exercised for futures which can be delivered. Or are you talking about SLV which is an ETF, which is the same as SPY, Russel 2k and other indices. if your smooth brain even knows what that is. ETFs are securitized to their underlying so although you can directly trade it for physical silver it is not jUsT a PieCE of paper.
But I get it your retarded self probably think pegged exchange rates are beneficial to our economy and that the market is just a farce. Might as well be a commie if that’s the case.
Yes futures, options futures, and are product can have physical delivery. If you remember when oil went negative in the beginning of the year this is why. Traders can’t take physical delivery so the were literally paying others to take the contracts off there hands. Also if we use a non delivered tool SLV is tied to many factors one being spot
Also leverage isn’t the same as just inventing silver on paper it’s a useful tool. So this “run” on silver you talk about wouldn’t happen.
thats how it works. JPM sells me an ounce of paper silver for 26$. When the price of physical silver pushes and drives up the price of paper silver well guess what?
I get to sell my paper silver ounce and net the profit.
So if that perfectly smooth brain of yours can follow, then if the banks sold way more paper ounces than they have backed by metal then for every $1 their paper ounces goes up they owe out more on the paper money than their physical silver appreciated.
What specifically is this paper you talking about a future? Of which you can take delivery of physical silver, an option? If so on what because those options on futures also can be exercised for futures which can be delivered. Or are you talking about SLV which is an ETF, which is the same as SPY, Russel 2k and other indices. if your smooth brain even knows what that is. ETFs are securitized to their underlying so although you can directly trade it for physical silver it is not jUsT a PieCE of paper.
But I get it your retarded self probably think pegged exchange rates are beneficial to our economy and that the market is just a farce. Might as well be a commie if that’s the case.
https://www.bloomberg.com/news/articles/2014-06-18/new-silver-benchmark-seen-heralding-gold-fix-revamp-commodities
read that if you have bloomberg.
in 2014 the banks had leveraged their paper silver 250x that of physical silver.
So the paper silver market is in the HUNDREDS OF BILLIONS OF OUNCES.
The banks will not have enough money to pay out on their silver paper should it hit 50$ and people want to cash out.
also wanted to add I do not know any paper silver that will give you physical in return.
The price of paper is supposed to be tied to physical.
Yes futures, options futures, and are product can have physical delivery. If you remember when oil went negative in the beginning of the year this is why. Traders can’t take physical delivery so the were literally paying others to take the contracts off there hands. Also if we use a non delivered tool SLV is tied to many factors one being spot
Also leverage isn’t the same as just inventing silver on paper it’s a useful tool. So this “run” on silver you talk about wouldn’t happen.
Well from a payout it is the same. If they have over leveraged paper to 250x its still the same outcome.
Price of silver goes up and THEY CANT PAY OUT THEIR SILVER PAPER.