[youtube]http://www.youtube.com/watch?v=cmrkH5SYbrE[/youtube] http://www.jaredrentz.com/how-much-is-silver-really-worth/
IMHO, this guy doesn't understand shyte, and his argument is fundamentally flawed. Firstly, options have no claim over physical silver, they only have claim over futures contracts - and that claim is optional. So to suggest these options need backing by physical is total BS. Second, the COMEX is merely a trading platform and clearing house. COMEX does not take a position in the futures contracts that they fascilitate trade in. Therefore, the COMEX is not liable for delivery on contracts, and thus should not be obliged to back every contract with physical - they merely administer delivery - the traders are liable (that is called counter-party risk). This is analogous to suggesting COMEX should back every commodity contract with a warehouse full of oil barrels, pork bellies and OJ - it is absolute rubbish. So, it would seem, this whole argument is baseless, and IMO just another permabull paper-bashing propaganda video. Just my 2c worth.
