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31/07/21
16:47
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Originally posted by squarepants:
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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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sorry @SP in relationnto where the arb being the key to control - not arbitrage in the day to day sense - but yes arb in the long term sense that Jpm can suppress price using worthless almost zero cost paper to then buy real silver at big discounts march 2020 a great eg