/biz/ - Business & Finance

Here's the quick rundown:

>Physical silver is trading at $40/oz
>Paper silver is trading at $28/oz
>doesntmakesense.jpg
>Go on ebay/ANYWHERE you can sell things, list silver for sale at $40/oz but specifically write "It may take me a long time to deliver due to massive order volume, please be patient after buying."
>I don't have any physical silver though... yet...
>Take orders, get money up front
>Use the money to buy paper silver at $28/oz
>Once you reach 10,000oz of paper silver, you are eligible to redeem it for physical silver with PSLV (see pic related)
>Redeem it
>Even if it takes them weeks or months to deliver your silver, you can just tell your buyers to please wait for delivery
>Even if the price changes during that time, it doesn't matter, they are locked in at having paid you $40/oz
>It arrives, you sell it to them
>Pocket the difference
>($40 - $28) * 10,000 = $120,000

Tell me why I shouldn't fucking do this RIGHT GODDAMN NOW.

>>27420004
Pretty much every issuer of paper silver allows for redemption, but they put really obscene restrictions such as "You can only redeem 10,000 oz at a time or more" in order to prevent little guys from redeeming.

See pic related, PSLV redemption requirements.