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 Replies: 17 / Views: 2,468 |
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Rest in Peace
United States
9104 Posts |
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Pillar of the Community
United States
3670 Posts |
If 250 million ounces effects the market that little, then things are way bigger and so many more factors playing into that final spot price then one could ever in-vision in their own simple mind. Like trying to imagine just how big the Universe is in scale size in ones mind....
Wonder what would have happened if you dumped it in way back around mid 1979?
Edited by Silverhawk74
12/30/2011 12:08 am
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Valued Member
United States
302 Posts |
Like they say, something fishy in Denmark here. That much silver dumped should dump the market big time.
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Bedrock of the Community
Australia
21788 Posts |
I'd feel like Scrooge McDuck in his money bin!  |
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Pillar of the Community
United States
564 Posts |
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.
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Rest in Peace
 United States
9104 Posts |
The thing is, options were designed to smooth out the buy/sell processes, where silver might be needed and available at different times.
25% of the world production being sold in one minute is not a mine locking in the price for future production, or a user wanting to have a guaranteed supply, but some huge bankster trying to manipulate the market.
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Valued Member
United States
302 Posts |
Quote:
You have to understand he is talking about options. Having been an option trader in the past, I understand them. The OP posted this Quote:
If someone dumped 250 million ounces of silver (25% of the world's annual production) on the market in one minute? 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? Edited by mmerlinn
12/30/2011 03:55 am
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Pillar of the Community
Australia
7096 Posts |
The idea of nearly 8000 tones of silver being sold in 1 minuite is mind boggling stuff.  with bigfredd it has to be some banking rockspider that is manipulating the market. Who on earth could afford to buy that amount of silver in one hit anyway? there wouldn't be too many idividuals with that kind of ready cash. It certainly smells a bit and it aint of roses either |
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Rest in Peace
United States
9104 Posts |
That's just a measly $10 billion.
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Pillar of the Community
United States
667 Posts |
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Pillar of the Community
United States
564 Posts |
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
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Valued Member
United States
421 Posts |
wow, too much for me to grasp! I did follow everything carefully. It does seem as if it was leaked before the major dump I am trying to figure out who then bought the silver or contracts after for the amount. or is this the case where the seller took the money and bought back in at the cheapier amount to gain a bigger share of the market?
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Pillar of the Community
United States
4008 Posts |
Quote:
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. Yes, options are a form of leverage and can make or cost an investor a lot of money in a hurry. Quote:
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. As a professional options trader, I think that Merlin knows the basics.  Quote:
If someone dumped 250 million ounces of silver (25% of the world's annual production) on the market in one minute? 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. |
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Pillar of the Community
United States
564 Posts |
The reason I explained what a call and a put options do is because he asked the question of which type of option was used. That question alone made me question his level of option experience. With that volume and the drop in price would only be explained by trigering the sale of a large put holding.
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Pillar of the Community
Australia
7096 Posts |
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.  |
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Pillar of the Community
Canada
1502 Posts |
the financial world is stupid
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Replies: 17 / Views: 2,468 |
Posted 12/30/2011 12:16 am
