Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Wharf Rat who wrote (50066)	4/16/2002 4:37:34 PM
From: Jim Willie CB	Read Replies (2) \| Respond to of 65232

excellent question, surely new ground on silver default some thoughts if XYZ Corp leases silver then defaults as price rises, then they are screwed they are legally obligated to replenish leased metal in fungible form I need to say fungible, a nice new word it means exchangeable metal for metal give back new equivalent metal, instead of consumed old metal that is why they call it a commodity if XYZ fails to replace the silver metal when silver is now at $20/oz, then they are legally liable in lawsuits they can be sued, and will be sued just like any other lawsuit, pay up or fold if fold, then bankruptcy court will balance assets and debts case closed, burial on Tuesday, byebye but lease agreement are for replacement at contract end with fungible silver or gold, whichever is leased you cannot pay back silver with gold any more than you can with soybeans they must find the same type metal to purchase and replace it operates exactly like a car loan or house loan you pay back the money only here there is no amortization more like a "balloon mortgage" of sorts yes, regardless of price price is not the issue in a lease fungible metal is to be repaid, period plenty of bankruptcy cases will be coming gonna be hilariously fun to watch I got a front row seat gonna bury my coins off Caba San Luca on the other side is the bullion banker whore he leased silver or gold in the first place he mistakenly thought price was fixed and regulated it may be regulated, but it soon wont be fixed he is gonna suffer from lawsuit BECAUSE SUCH VAST AMOUNTS OF GOLD/SILVER WILL NOT NOT NOT BE AVAILABLE AT ANY PRICE can you see why this will be so hilarious? it is Enron on a grander stage !!! the leasing firm will be sued, and fold up its tent I expect as this absurd leasing game nears its inexorable end, that many bullion bankers will "call in their loans" when they see their own demise nearing on the horizon this will force the lessees into covering and buying metals the only big question is whether it will be too late in the meantime, many lessees will simply roll it over they will just increase their leased amount of metal notice how they never amortize and partially pay back over time? this is horribly and more fatally flawed than a bank loan the biggest crime will be with the disappearance of owned precious metals by the wealthy suppose you are Jack Hoff Rockefeller IV you own $250 million dollars (of shrinking value) but you have $20M in gold bullion at Citibank it is possible that your entire gold will have been leased, sold, consumed, gonzo your bank might actually suffer bankruptcy then what happens to your wealth? I dont know / jim