Silver Bullion - An example of how paper silver is used to illegally manipulate the silver market A good example of how paper silver, especially silver derivatives, is used to illegally manipulate the silver market is the naked short selling of silver by J.P. Morgan Chase, a global financial services firm. They hold the world's largest short position in silver (of which a large portion of the position is naked). Invest in precious metals today! Contact us for details.
Physical Silver vs. Paper Silver To understand the implications of the above we need to look at a couple of definitions first... Short selling: “Short selling (also known as shorting or going short) is the practice of selling assets, usually securities, that have been borrowed from a third party (usually a broker) with the intention of buying identical assets back at a later date to return to the lender. The short seller hopes to profit from a decline in the price of the assets between the sale and the repurchase, as the seller will pay less to buy the assets than the seller received on selling them. Conversely, the short seller will incur a loss if the price of the assets rises. Other costs of shorting may include a fee for borrowing the assets and payment of any dividends paid on the borrowed assets. "Shorting" and "going short" also refer to entering into any derivative or other contract under which the investor profits from a fall in the value of an asset” (Wikipedia). Invest in precious metals today! Contact us for details.
Physical Silver vs. Paper Silver In other words, you sell assets, normally securities or commodity futures (e.g. silver futures), which you borrowed in the hope of buying it back later at a lower price. You thus expect to profit from a drop in the price of the relevant assets. |
Silver Bullion
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