Margins and PMs, am I incorrect to assume...

RobertS

That this is a good thing long term? Once people start playing with their cash, how else can they bring silver down?

roadrunner

You still have otc derivatives which are completely unregulated. That's what Bear Stearns was doing before they went belly up (heavy in silver derivatives).
OTC silver derivatives currently number around $130,000,000,000. (ie about 5-6 yrs of world silver production at current prices).

Then there are naked shorts in equities. And as others have already mentioned in other threads one can still go 100% cash in a silver contract but leverage it
against derivatives and other tools. The only answer is actual delivery of the metal on each new position. Anything else can be manipulated and massaged with
paper.

roadrunner

jmski52

Another crop of paper speculators is in the process of being killed off. The only question is - how long will it take for another batch to be enticed back into silver?

Last time, it only took a year.

storm888

Folks who want "stability" will like the effects of the move - which is
likely coming - to all cash.

Folks who trade volatility will not have much fun.

Folks who think "stability" allows for massive profits will likely be very
disappointed.

..............

Under-capitalized folks will be at a severe disadvantage.

RICO-banksters - using money stolen from taxpayers - will have near
absolute control of directional moves.

...........................

In theory, it is possible tho NOT certain, that prices for physical metals
could, eventually, actually divorce themselves from paper prices in a
major way.

Over a VERY long time, that bifurcation could lead to higher prices, but
that is far from certain.

At the very least, the MYTH of "tight supplies" will be exposed as the fraud
that it has ALWAYS been.

.............

Generally, when regulators - public or private - change the rules in the middle
of the game, ONLY criminal govts and their lackeys benefit.

Time will tell if "this time it is different."