TSXV:SLX.P - Post by User
Post by
pbwongon May 03, 2011 7:24pm
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Post# 18525568
Standing for Delivery....
Standing for Delivery....
Forgive me if this is a stupid question....but one thing I've never understood about the conspiracy regarding the silver market and manipulation is the distinction between paper and physical silver. If I define paper silver as a futures contract and the physical as actual bullion, according to my understanding of the futures markets I can after giving notice take delivery of the physical. Now if the physical market is truly in such tight supply and the paper market is being pushed down, what's to prevent me from taking delivery of the physical by holding the futures contract till delivery and actually accepting the bullion?? Isn't this an arbitrage I could take advantage of?
The last bears video talked about two silver prices but I just don't understand how this would not be arbitraged away. What am I missing?!?!?
Additionally, since I plan to take delivery anyway and would have to provide the FULL proceeds of the contract (silver price x 5,000 oz), then raising the margin shouldn't affect me anyway. I need to have the cash to take delivery so what do I care if they raise the margin they hold....
No one has fully explained to me this missing element of the alleged conspiracy.