$ Silver $
- Thread starter SethArb
- Start date
Why? Just don't use the leverage. That is, if you have $10K, you buy/sell one mini contract (1000 oz) and put the $9500 that isn't needed for the performance bond in money market. Unless, of course, you want to invest less than $10K, in which case you're SOL. IMO, the spread and other costs associated with the physical metal are excessive. Being able to quickly and easily move in and out of a 1000 oz position for about $4 commish and maybe an effective spread of about $10, beats the heck out of driving to the coin/metals dealer and trying to beat him into a reasonable price
Quote from alanm:
Why? Just don't use the leverage. That is, if you have $10K, you buy/sell one mini contract (1000 oz) and put the $9500 that isn't needed for the performance bond in money market. Unless, of course, you want to invest less than $10K, in which case you're SOL. IMO, the spread and other costs associated with the physical metal are excessive. Being able to quickly and easily move in and out of a 1000 oz position for about $4 commish and maybe an effective spread of about $10, beats the heck out of driving to the coin/metals dealer and trying to beat him into a reasonable price
By buying real silver I reinvested my profits from other trading activity, it's stored in my cousin's bank and I don't have to think about rollovers. You are right about the real silver spread, unless you have connections in Hatton Garden
Also you have to keep in mind that most people trade futures on margin, that's why people like Butler advise holding the real thing.Anyway, I posted a copy of the interview so some traders would have a better understanding of the silver supply/demand issues. The comment from that other person was a little strange in response.
if there were you would see a sharp reflection in the price either way, therefore one can only assume - no.
if i was to speculate on the decision of the SEC i would say they will approve it, based on their previous decision to approve gold etfs, obviously there is intense pressure from the users, but it just seems not logical for the SEC to approve one and disapprove the other.
P.S. Whatever happens, one thing is for sure, Barclays will come out on top.
romik--People talk about shortages etc, but its really a price thing. Theres a shortage of silver at $9 today, but none at $15. At some price point every commodity has an equilibrium where buyers and sellers meet.
If the silver etf takes out 20% of silver stocks in the world and silver goes to $50, theres no shortage, except if you want to buy at lower prices.
Right now, as far as I can tell, specs are holding large silver positions hoping, praying the etf buys it from them. If the silver etf fizzles, or is delayed, silver will drop back to 9 or lower, right?
If the silver etf takes out 20% of silver stocks in the world and silver goes to $50, theres no shortage, except if you want to buy at lower prices.
Right now, as far as I can tell, specs are holding large silver positions hoping, praying the etf buys it from them. If the silver etf fizzles, or is delayed, silver will drop back to 9 or lower, right?