RD, how are you fixed with silver?

[Yao Sing]

Ran across this (http://www.silverstockreport.com/2008/crunch.html) and was thinking your metals trading was probably all paper.

It would be a shame if there wasn't any hard metals for you to exchange for your paper (or electronic bits and bytes). :eek:

Ever play musical chairs?

[RD'S Alias - 1A]

Silver is correcting so hard, you can almost say it's price crashing. I wouldn't trade this on my life right now. There are no real signals. The price can continue to drop hard, or bounce in the other direction just as hard. It could bounce a bit, then travel sideways too. There is no way to tell right now.

If you can afford to be glued to your monitor I am sure you could day trade, or intra day trade, but you need live feed charting and almost instant order placement capabilities to even consider it.

As with Gold and Oil, I recommend sitting on the side line. I know people who bought Gold the day after my system signaled an exit....the price started a heavy down slide that same day and has continues since. It's lost over $10,000.00 per contract at this point. Even if it rebounds and continues going up, that is a hard loss to carry in the interim...if it even recovers at all. Both Silver and Copper are like Gold right now...in a ear free fall status.

Don't Buy ANYTHING related to these markets untill it settles and gives a new signal.

[RD'S Alias - 1A]

It would be a shame if there wasn't any hard metals for you to exchange for your paper (or electronic bits and bytes)

Reply]
That is impossible, Futures is a Zero sum game, Each contract is tied to specific Gold stocks. If you hold a Contract, specific gold stock in real bars is held for you and you cna collect on it any time.

[Yao Sing]

You've got much more faith than me. If I can't hold it in my hand it's value is virtual.

Like the guys in the 20's trying to pull their cash out of their bank accounts. Yeah you might have $10,000 on paper but you can't get a loaf of bread without hard cash.

If the posted article is true there are people holding silver in paper assets that can't be converted to physical silver because there's none to be had.

Thoughts?

[RD'S Alias - 1A]

That artical is bullsh1t.

Like I said, it's a Zero Sum game. A Futures contract is a contract for delivery at a specific time in the future. For example, a Silver contract for July delivery means that if you hold the contract, then once July comes they will deliver the Silver to your door or specified transfer point. The reason Silver bars may not be available at coin shops is because it is all held in contract on the Futures markets.

Now, ALL Futures contract are ultimately closed with actual physical delivery...which is why the speculator sells it before the delivery date.

There are not endless Futures contracts available. There are only enough contracts as there are actual physical silver bars.

When you controll a Futures contract, you are entering a contract to take delivery of the physical Silver itself. When you sell your contract prior to the delivery date, whoever buys that contract takes delivery.

The contract can change hands any number of times from it's origination, to the delivery date. In the end though, whoever has it by the delivery date gets the actual Physical sliver.

[RD'S Alias - 1A]

Silver chart