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Politics : Politics for Pros- moderated

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To: Katelew who wrote (413236)2/26/2011 12:21:42 PM
From: J.B.C.  Read Replies (1) of 793903
 
When speculators BUY, they create demand for something, which will bring more of that item to the market. When they sell, it creates supply. Ultimately speculators have little influence on overall price.

The Hunt brothers tried to "corner" the silver market in the late '70's, the problem they found as price went up so did supply as more and more producers were able to bring silver to the market at any cost. Seniors were selling their "silver"ware. People were selling the real silver coins that were horded. The Hunt's couldn't keep up, there were other issues as well. But ultimately the speculators were a non issue.
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