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To: Vitalsigns who wrote (57376)9/20/2002 4:28:11 PM
From: Canuck Dave  Read Replies (1) | Respond to 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