The banks(as of 2014 had sold 250x in paper silver) so lets say there are 500 billion ounces of paper silver sold by the banks and hedgefunds.
Ok so silver goes up $5.
5$ x 3B = 15billion. Ok so the 3 billion ounces of phys silver is now worth 15 billion more.
Well what about the paper? because if paper goes up 5$ and there are 500 billion ounces of paper silver. Who has the money to pay those contracts should the holders exercise their right to redeem?
I can tell you this. If paper silver hits 45-50$ our entire banking system is insolvent. They will hold over 35 trillion dollars debt with just their silver paper contracts.
wsb doesnt want to be responsible for everyone buying silver. Reddit is the Deepstate.
The deepstate wants you to keep your money in their digital bank account. So if you do to much wrong think they can just take it away.
That’s not how paper works. And it definitely would not crash silver market let alone the economy. At least understand what theses contracts, futures, and option actually do before making us look stupid.
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.
explain to me this please.
there are 3 billion ounces of physical silver.
The banks(as of 2014 had sold 250x in paper silver) so lets say there are 500 billion ounces of paper silver sold by the banks and hedgefunds.
Ok so silver goes up $5. 5$ x 3B = 15billion. Ok so the 3 billion ounces of phys silver is now worth 15 billion more.
Well what about the paper? because if paper goes up 5$ and there are 500 billion ounces of paper silver. Who has the money to pay those contracts should the holders exercise their right to redeem?
I can tell you this. If paper silver hits 45-50$ our entire banking system is insolvent. They will hold over 35 trillion dollars debt with just their silver paper contracts.
wsb doesnt want to be responsible for everyone buying silver. Reddit is the Deepstate.
The deepstate wants you to keep your money in their digital bank account. So if you do to much wrong think they can just take it away.
That’s not how paper works. And it definitely would not crash silver market let alone the economy. At least understand what theses contracts, futures, and option actually do before making us look stupid.
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.