What are silver accounts?
Silver accounts in the context of the Silver Bullion website refer to any account, electronic or otherwise, that are used for the trading or holding of paper silver (excluding accounts used for silver share trading). E.g. there are various silver accounts available online that enable the investor or trader to instantly buy and sell silver in a process similar to that of buying and selling any foreign currency online.
It is important to note that the silver account holder does not own physical silver, but only has a claim against the bank or relevant service provider for a certain quantity of physical silver. A number of these banks or service providers do not allow the paper silver contained in silver accounts to be redeemed for physical silver. The truth be told, even in instances where they do allow the silver account holder to redeem his/her paper silver for physical silver, it is only possible to a certain extent, especially when several silver account holders decide to redeem at the same time. It has been conservatively estimated that for every 100 ounces of paper silver created, there is only 1 ounce of physical silver to back it up.
Silver accounts are but one of many forms or types of paper silver that are used on a grand scale to illegally manipulate the physical silver market, especially as far as the silver price is of a concern. This is why it’s important that the true silver investor invest in or own physical silver only.