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If delivery of silver sold/bought were to take place say in a year’s time, they would sell/buy that position in the futures market or take out a “put/”call”" option [the right to sell/buy at a certain price at that future date]. If the price were to go down they could then close the “short” position by buying the same quantity at the lower price to ‘close out’ at the same date as the ’short’ [sale]. After this the price may reverse in which case they would the buy the silver back at the lower price, profiting from the ’short’ position, leaving the ‘long’ position that they originally had, again and still able to repeat the operation for profit. But then pure speculation came in to the market, briging volatlity to the silver price [and all other items on the futures and options markets] alongside of investment positons protecting the value of the investment funds from the depreciation of money values, as we can see in the markets at the moment. The dangers we now focus on in this article are the effects of the huge investment funds being ‘parked’ in these instruments, enjoying the price rises in commodities, etc, with no intention of taking delivery or consuming the items . read more

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