Trouble is if you trade Silver futures, you must be extremely well capitalized, I just bought some real silver to hold, more safe that way IMO.
Blah, blah, blah..... Why doesnt he trade for a while and see how his ideas work out? Theres no shortage of silver. Let the ETFs roll, let leasing roll, let the free market do what it wants. But enough of blowhards rambling on as experts, when their basic assumptions are wrong.
I believe he is an analyst, not a trader. He doesn't suggest trading it. Who said trading is the only way to make a return on investment? Could you tell me where you found stats on non-existence of silver shortage?
Usually people who say "shortage" can't afford something. Who really cares if silver is $5 /oz or $500/oz? If its tradable, it will be. Labelling stuff as a "shortage' gives the uninformed a sense that easy money is to be had and thats simply not true.
tomcole, have you read the interview A-Z? Your comments are strange. Do you know who T Butler is? I don't think you have any idea. I can't understand neither of your 2 previous posts. Perhaps you can elaborate further.
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?