SILVER 0.30% $15.25 silver futures

@squarepantsshorts control the price because futures are...

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    @squarepants

    shorts control the price because futures are primarily a financial instrument not a delivery mechanism and because of the size of implied volumes means the risk is too high for most investment buyers to go long

    think about it like shares

    share price may rise or fall on a given day due to people selling or buying - say end of year tax selling

    it has little to do with underlying 'value' of the company

    futures is a more extreme version of that

    except with futures every month end is like EOFY

    dont get me wrong - producers arent going to agree to forward sell at eggregiously low prices

    but most of the incentives in futures are structurally pro shorting for anyone big enough to be a market maker
 
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