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Silver Bullion - 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.
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Physical Silver vs. Paper
Silver
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).
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metals today! Contact us for
details.
Physical Silver vs. Paper
Silver
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.
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