SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Daytrading Canadian stocks in Realtime

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Vitalsigns who wrote (57376)9/20/2002 4:28:11 PM
From: Canuck Dave  Read Replies (1) of 62347
 
Wow, that was really something. Question for the thread:

I have trouble understanding how a paper futures market in a commodity (let's say silver) can affect the spot price. This is one of Ted Butler's points, and it makes no sense to me.

After all, at the level of reality, a silver consumer (say an electronics manufacturer) goes in and will buy the real stuff at market price. A seller (somebody) sells them the ingots they need at that price. The producer goes off and uses them, and that's that.

How does the paper market affect that?

CD
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext