What are silver futures (silver futures contracts)?
What are silver futures or silver futures contracts? Silver futures or silver futures contracts, without getting too technical about it, are in essence financial contracts that obligate the buyers of the relevant contracts to acquire or buy a specific quantity and specific quality of silver from the sellers of the relevant contracts on a specific future date at a specific price.
All of the above-mentioned factors (quantity, quality, future date of purchase and price) are pre-determined in detail in silver futures contracts. Now it must be mentioned that most silver futures contracts do not call for the actual delivery of the physical silver for settlement, but rather for settlement in cash (at the time this was written). This while some silver futures contracts give the option (to either the buyer or seller) to settle in cash or through the delivery of physical silver. The truth be told, the settlement of most silver futures contracts are done in or happen in cash (or fiat money for that matter!). This opens 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 news media and elsewhere, but also on the actual prices silver investors are willing to pay for physical silver. In fact, a conservative estimate indicates that for every 100 ounces of paper silver held there is only 1 ounce of actual or physical silver available to back it (at the time this was written). 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 the wealth of the target group. Make no mistake about it; it is nothing short of economic warfare on such a vast scale that it is difficult at best for most people to understand or comprehend.
Yes, 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 futures 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 more problems for the target group.
Silver futures, like silver forwards or silver forward 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 futures 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 in order 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 silver futures and silver forward contracts. Silver futures contracts, like casinos and all other forms of gambling, do not belong in a decent God-fearing society.