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$15.25 silver futures

not really @squarepantsits not just the no of contracts per se -...

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goldbear77

9,759 Posts.

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31/07/21

16:37

Post #: 54930026
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Originally posted by squarepants: ↑

GB, am I right about arbitrage or potential arbitrage being the core of the control mechanism? I have always understood futures are financial instruments. They are designed to hedge the risk of holding or producing the particular resource, and or obtaining a supply of the resource in future. Speculators often take one or even both sides of the deal. Its designed to offer a type of insurance, though it is often a gamble.
The size of the implied volumes is what I am getting at here. How can the shorts supress the silver price on falling volumes of contracts?

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not really @squarepants

its not just the no of contracts per se - unless 100% of them settle - which they never do

the no. of implied contacts definitely is important

a billion oz implied for sale at x price is much more downward price pressure than 100m

whilever contracts on issue represent multiples of actual metal though then there price will tend to reflect non real world price motives
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0 Great analysis

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