Quote:
Originally Posted by karl262
My understanding is limited, but it seems that most of the silver traded by banks is only paper silver in huge volumes that the buyers never intend to collect in physical. This keeps the price down and makes it attractive to short.
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This is no different than oil. Many forward contracts and hedges are settled on a cash basis rather than physical delivery. I don’t know if that line of thinking holds up that paper trading = attractive to short.