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View Full Version : See spot run



TomAlciere
11th April 2008, 19:20
With all this imaginary silver being traded, "sold" by people who have no silver to deliver, Somebody might to well to offer the mining companies etc. a premium over spot to deliver silver to that somebody.

Some people don't trust the firms with which they would do business, and which could fail. I don't blame them.

Well, here's my solution. Somebody buys real 1000 ounce bars and, when there's a shortage of silver, they can:

1.) Sell a 1000-ounce bar to an investor who wants 1000 one-ounce rounds instead. The 1000-ounce bars are a little over or under; so let's just say this one is a little over.

2.) The seller delivers a 1000+ bar to the buyer, who pays right then and there.

3.) The seller also promises in writing to trade the bar for 1000 rounds in two weeks.

4.) The seller mints 1000 rounds out of another bar.

5.) The seller then trades the 1000 rounds for the 1000+ bar the buyer has.

If the seller defaults, the buyer is not left holding the bag, but is left holding the bar. That's a much better position to be in.

This won't work if the buyer is a coin dealer who has customers coming in wanting to buy silver rounds because that coin dealer needs rounds NOW.

When the next silver shortage happens, the investor can trade 1000 rounds for another bar, the dealer then sells the 1000 rounds for cash, with which to buy another bar. When the shortage is over, the dealer then trades 1000 plus, rounds for the bar.

People with real silver will deliver it. People with imaginary silver will sell that on COMEX.

See spot run.