You can't sell a house you don't own,
You can't sell a car you don't own,
So why can they sell "silver" when they don't own any silver?
Selling an asset you don't own happens on Wall Street all the time, it's called a naked short.
It works like this: you write a contract saying that sometime in the future you will sell an asset like a stock or silver for a specific price. You don't actually own it yet, but you are promising to sell it in the future.
If the person who buys your contract actually wants the thing you promised to sell him when the contract comes due, then you have to go out and buy it, so that you can sell it to them like you promised. In the meantime, you can buy and sell the contracts all you want.
Don't have enough money to actually buy silver when the contract term is up? No problem, just sell even more contracts for silver you don't own with a later expiration date, and use that new money to buy some and satisfy the buyers you have now.
The whole thing becomes a Ponzi scheme really quickly, but the SEC doesn't shut it down because technically it isn't illegal when you are licensed and you buy insurance.
Naked Shorts in the silver market outnumber real sales of silver by hundreds to one. That means it is the people writing the contracts that affect the price the most, not people who actually have the silver. How long can they keep this up?
The market will be honest only when the reality of the silver supply squeeze collides with paper speculation and the house of cards falls down.
Online prices for Silver then start to look like there is an unlimited supply because almost all these transactions are settled in dollars, and there is an unlimited supply of dollars. But there isn't actually an unlimited supply of real silver.
Real silver cannot be made or faked and it has an extremely limited supply with high demand. What would the real price be if the speculation stopped?
Who knows, but many experts worry that if the music stopped today, there would be hundreds of players for every seat in this game of musical chairs.
At Fort Knox, we've come to see the gold!
Our country has about a hundred and forty-seven million ounces of gold, and about half of it is stored here at Fort Knox.
We're gonna be going deep underground to see the gold, but more importantly, we're gonna be talking today about what happened to our dollar when we separated from gold in 1971.
I'm going underground, and I'll let you know what I see in a little bit.
Challenge to fill up this jar with cut copper wire completed! We also did a 5 oz pour that came out pretty decent π§‘
@gengrievous25 I believe I am owed my prize now οΏ½οΏ½π€£π
#copper