Ya they do own physical silver. But there are only 3billion ounces of phyiscal silver.
And on friday alone they printed 3.5 billion ounces of paper silver.
So their paper silver is backed by physical silver. 250 ounces of paper : 1 ounce of physical.
Now do you see if the price of silver rises that their stock in physical silver will rise in value 1/250 the rate of their contracts in paper they sold?
Ya they do own physical silver. But there are only 3billion ounces of phyiscal silver. And on friday alone they printed 3.5 billion ounces of paper silver.
So their paper silver is backed by physical silver. 250 ounces of paper : 1 ounce of physical.
Now do you see if the price of silver rises that their stock in physical silver will rise in value 1/250 the rate of their contracts in paper they sold?