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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: aknahow who wrote (5086)3/28/2006 9:38:08 PM
From: TobagoJack  Respond to of 218646
 
ETF will involve many more individuals than now able to speculate in physical silver.

So, by my figuring, not so much a leverage issue, but more a matter of wider and deeper customer base, leading to more customers, with each assuming a lesser risk, and in aggregate more powerful than earlier episodes of mania and speculation.

If GLD had an effect on gold price, then silver ETF ought to do the same, perhaps at the detriment of GLD in the beginning, as the customer is shared in some sense.



To: aknahow who wrote (5086)3/28/2006 10:23:32 PM
From: Moominoid  Respond to of 218646
 
The ETF has to be backed by holdings of physical silver. Traders can buy and sell futures contracts on silver with no connection to any underlying - see the bond futures market where the contracts exceed the underlying. At least that is how I understand it.