ahh, ok so claim of the ''100 contracts per oz'' is simply saying the volume of silver futures traded is higher than what is actually out there. If you look at actual open interest though, as of today dec silver only has 331 lots of OI, which will likely go down before expiration on the 29th.
This is not unique to silver though, I can't think of any commodity that does not have more futures trading than the underlying physical out there. Right now feb WTI has over 300k lots of open interest. Cushing sure doesn't have 300 million BBL worth of crude, and the OI will definitely go down before contract expiration.
What nonsense. Mortgages are bundled up by Fannie Mae and Freddie Mac and sold as mortgage-backed securities. It's no different from buying a bond. It's not like the precious metals futures market at all.
The problem happened when the federal government started screwing with the fidelity of the mortgages while concurrently implicitly guaranteeing the securities. You ended up with portfolios that were stuffed full of mortgages where the buyers weren't qualified to pay back the loan or where the real estate backing the loan was improperly appraised. This prolonged the natural real estate cycle that should have corrected in 2003.
You didn't even understand my post so why quote me? Your strawman arguments just make you look silly. Its called fraud, and its been happening in the mortgage and precious metals markets for years. Sorry that the industry that you work in is rampant with fraud and as such will be in a depressed state for many years, but if you were smart you would have seen it coming and got out while the getting was good.
I'm wondering. What industry do you think I work in that you are saying is rampant with fraud?
So I dont know much about investing and all that, but I have always been told it is a good idea to have some resever of physical gold and silver after all it has been used as a symbol of money for thousands of years. Im not sure why so many people have so much faith in our dollar it looses value every day it seems.
I have been looking at buying PM and decided to go with silver, reason is its the price that gold was in 1971 and within 9 years gold skyrocketed to over $800/oz. However I will buy some gold to just not in the quanity that I can buy silver due to the prices now. Now I dont expect silver to do that but you just never no and considering that silver is now more rare then gold, so why is gold so much more expensive then silver?
Sure I can invest this money into stocks, cd's, mutual funds and whatever else but what is there to guarantee that my money will be there in the next 10 years. I will however still invest in these but I dont plan on putting all my eggs in one basket.
The other issue is that "during" the time that the dollar (or the Yen or the whatever) is steadily decreasing in value pms increase in value and are readily tradable for dollars when required (to purchase food, clothing etc etc).
Nobody is suggesting (well I'm not anyway) that pms or other high value reserves of value are the answer in themselves, but that they will hold their value and so allow you to purchase (or trade or barter if you prefer those terms) if required.
Paper gold and silver are indeed made every day, and the gold and silver scams have been around the longest. Whether paper money can be made all day has nothing to do with. A corrupt currency can be designed around any token money. The material used is irrelevant. If you think buying precious metals prevents you from being scammed, you are just naive.
NO WAY!!!! Dollar is Mighty! It is the WORLD'S RESERVE CURRENCY!!! US Economy is fundamentally sound and we have no problem of paying off $50+ trillion in debt and take on yet another $1 trillion by March! We will be able to pay off the debt by simply being good at what we do! CONSUME! We have successfully shipped off all our basic and even advanced manufacturing jobs oversea and the citizens can take on endless amount of debt because we are AMERICANS! We will pay these debt off with more debt! Let those patriotic politicians worry about the future of our nation & people because they have been doing fantastic job! Still not convinced?