What Would Happen?

You have to understand he is talking about options. You don't actually own anything but rather you placed a bet to have the option to sell slv at a price you purchased the contract for. That might seem like a huge number but options allow you to control a large amount of stock shares with very little capital. You have to understand stocks and how trends work to understand options.

Having been an option trader in the past, I understand them. The OP posted this




which makes no mention of options, just silver. There is no way anyone would even think about options unless they saw the video.

Now that I know options were the vehicle, which options? Calls or puts?

That's just a measly $10 billion.

Mmerlinn- call options give you the right to buy a stock at a specific price. Put options give you the right to sell a stock at a specific price. The owner of both puts and calls don't actually own the stock. Someone else owns the stock. Right now you could by the $29.00 call option for slv for $.01 an oz. if you wanted to control 250 million ounces at 29.00 a share you would only need to spend $2,500,000.00. That's really not a lot of money compared to what you would actually need to own the physical silver

Yes, options are a form of leverage and can make or cost an investor a lot of money in a hurry.



As a professional options trader, I think that Merlin knows the basics.



That is a HUGE amount of physical silver... about 1/3 of total world annual production.

Of course, there have been days when a billion ounces of silver have traded on the paper market and that exceeds total annual world silver production. It also slightly exceeds the amount of physical silver currently available on Earth.

What I can gather from this topic is that NO PHYISCAL SILVER was sold at all
Just bits of paper that people buy just to give them the right to buy or sell at a certain price.
Call me a dumb Aussie but EVERYONE has the right to buy and sell PHYSICAL SILVER anytime they like.
I reccon get rid of all the PAPER SILVER and let the market adjust to a purely supply and demand situation.
That way nobody can manipulate it without having to actualy put their money where there mouth is and fork out for the real thing.
It just seems wierd to me that investors that don't actualy own anything can manipulate the market by selling an option to somone else that won't actualy own it either.

That does not imply anything about his level of knowledge or experience. There are TWO kinds of options and he wanted to know which of them was being used. In fact, so did I.



Perhaps. Markets are very complex and it is doubtful that any single event short of a complete collapse would be the total effect upon the market at that time.



Heh heh... ALL parts of the world can be stupid at times. The financial portion of the world certainly has no unique claim to it.