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View Full Version : Do Gold/Silver ETFs Suppress the Price of Metals?




SevenEyedJeff
06-26-2008, 08:15 PM
I say the answer is yes, if people could only get gold or silver physically, I bet there would be a lot less supply left out there to buy. Those who are buying these ETFs would have been in the physical metals instead, at least in part. Sorry for the ET Fone Home thing, I put it there in case Bush wanted to take part in my poll.

rapidtrends
06-26-2008, 08:24 PM
Not to mention you can short the ETF's, which create more shares, but do not force the ETF to buy more metal.

This in effect soaks up more capital with "inflated shares" without creating the equivalent demand in the physical metal market.