patrick.net

Glock-n-Load says

stereotomy says

GNL says

stereotomy says

hey changed the law 20 years or more ago. If they can't deliver, they can just give you fiat cash.

Can you show me this law please?

https://www.ecfr.gov/current/title-17/chapter-I/part-190/subpart-B/section-190.06

Thanks, I’ll take a look.

Just thinking out loud here but, how does this affect silver prices? It seems as though they never have to deliver. A shortage isn’t the problem?

As it turns out, the change to allow PM futures contracts to be settled in cash was done by TPTB to save the counterparties on the hook for the Hunt Brothers' attempt to corner the silver market back in the late 1970's. There's some discussion of this on Financology.net:

https://financology.net/2025/12/17/outlook-2026/#comment-8314

Onvacation says

My silver bitcoin will still be valuable long after our fiat currency fails and the last bitcoin is "mined".

If the US Dollar fails, that silver bitcoin will be the same as bullets, canned food, or cigarettes - something to barter with whoever will accept it.

HeadSet says

Onvacation says

Gold and silver will approach infinity as the dollar goes to zero .

That would also be true for a barrel of oil.

Same with real estate.

The value of the loans outstanding also go to Zip.

HeadSet says

If the US Dollar fails, that silver bitcoin will be the same as bullets, canned food, or cigarettes - something to barter with whoever will accept it.

In cannibal anarchy, liquor, cigarettes and bullets will be MUCH more valuable than bitcoins, gold, or silver.

Onvacation says

When MAGA fails we’re headed for communism (Rebranded as democratic socialism) or cannibal anarchy.

Fixed it for you.

stereotomy says

They changed the law 20 years or more ago. If they can't deliver, they can just give you fiat cash.

I was hoping that you assumed that I already knew that...My point was, if you are an industrial user and you need tons of silver on a regular basis, where do you get it? Wasn't the commodities market the place to go? You could buy futures contacts and take delivery. Now if all they will give you when the contract expires is paper, then what is the point? I think we both know the answer to that...It's just a rigged gambling game involving paper. It has nothing to do with real precious metals.
The problem is that the coin dealers want buy at that low fake price...As long as sellers refuse to sell at that rip off price, no harm done.

komputodo says

stereotomy says

They changed the law 20 years or more ago. If they can't deliver, they can just give you fiat cash.

I was hoping that you assumed that I already knew that...My point was, if you are an industrial user and you need tons of silver on a regular basis, where do you get it? Wasn't the commodities market the place to go? You could buy futures contacts and take delivery. Now if all they will give you when the contract expires is paper, then what is the point? I think we both know the answer to that...It's just a rigged gambling game involving paper. It has nothing to do with real precious metals.
The problem is that the coin dealers want buy at that low fake price...As long as sellers refuse to sell at that rip off price, no harm done.

I agree - the whole futures market has become completely corrupted by TBTF bankster speculators, defeating the purpose for these markets to exist in the first place. Futures markets were set up to protect commodity producers and industrial users from wild swings in prices and were regulated to only permit certain business entities from engaging in trading operations. Once non-industrial banks and hedge funds were let in, everything went to shit.