What are silver forwards (silver forward contracts)?
What are silver forwards or silver forward contracts? Silver forwards or silver forward contracts are in certain aspects pretty much the same as silver futures or silver futures contracts. Both types of contracts are about an agreement (contract) between two parties to buy or sell silver on a specific future date at a price degreed today. The major difference between silver forwards and silver futures is the fact that silver forwards are non-standardized contracts and do not trade on exchanges.
In addition to the above, silver forwards or silver forward contracts “…also typically have no interim partial settlements or “true-ups” in margin requirements like futures – such that the parties do not exchange additional property securing the party at gain and the entire unrealized gain or loss builds up while the contract is open. However, being traded OTC, forward contracts specification can be customized and may include mark-to-market and daily margining. Hence, a forward contract arrangement might call for the loss party to pledge collateral or additional collateral to better secure the party at gain” (Wikipedia).
Furthermore, silver forwards (silver forward contracts), like the case is with silver futures (silver future contracts), open the door to silver market manipulation, because almost endless mountains of paper silver can be created in this way with no relation to the actual demand or supply of physical silver, although having a real impact on not only the silver price as quoted in the media and elsewhere, but on the actual prices silver investors are willing to pay for physical silver. This is lunacy of the highest order and is only allowed because the very same scoundrels, who are behind the deployment of the “paper gimmick” in the U.S. and elsewhere in the world, are behind it. It is one of their creations and one of many that are used for the specific purpose to sustain the “paper gimmick” and to facilitate the transfer or rather legalized theft of wealth. Make no mistake about it; it is nothing short of economic warfare on such a vast scale that it is difficult for most people to understand or comprehend.
Yes, silver forwards, like silver futures or silver futures contracts, were originally used to hedge against risks and to counterbalance possible losses in the silver market. However, ironically it has turned into a proverbial beast, a beast which in its complete form (inclusive of all paper silver), has the capacity not only to destroy the U.S. economy, but the global monetary or financial system in its entirety. The truth be told, the financial system is nothing short of a gigantic casino today, a casino where astronomical bets are made on almost everything imaginable through derivatives, silver forward contracts included (at the time this was written). The best of all is that this ‘grand casino’ is largely left unregulated, creating the perfect breeding ground for the above-mentioned scoundrels and their lackeys to step in and practice their evil. It is very important to know that they are and have always been in the business of creating problems (for others) and then pretend to offer solutions to the very same problems they have created. It is never the best solutions, but the type of solutions that will only benefit them and create additional problems for the target group.
Silver forward contracts, like silver futures or silver futures contracts, are among the most hideous forms of paper silver, because one silver investor must lose in order for the other to win. It is nothing short of gambling and doesn’t add anything of real value to help people; it’s all about selfish gains at someone else’s expense. The truth be told, risk cannot be reduced with silver forward contracts since gambling and risk have different definitions. Gambling is about a zero sum game where two people make a bet with each other. One always turns out to be the winner and the other always turns out to be the loser. Yes, life is risky, but it’s not a zero sum game. This is why the true silver investor always buy or acquire physical silver, not only does it minimizes risk, but it helps to add something of real value to help other people. E.g. when the silver investor buys physical silver, the seller gets paid or rewarded, even if payment is in fiat currency (or fiat money for that matter!). It’s not a case of any of the parties having to suffer a loss for the other to profit; it’s a win-win situation. The seller has the choice to sell or not to sell at a certain price, even if the seller has to sell as a result of financial difficulty, chances are good that he/she will receive a market related price. This is more than can be said of investing in or trading paper silver, especially silver forward and silver futures contracts. Silver forward contracts, like casinos and all other forms of gambling, do not belong in a decent God-fearing society.