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Old 03-17-2011, 08:21 AM  
wig
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Join Date: Feb 2002
Location: Panama
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Quote:
Originally Posted by PurrrsianPussyKat View Post
Maybe if they stopped letting people trade in commodities who will never take delivery, prices could really be based on supply and demand instead of speculation.
I think you need to think more about this...

First, for every buyer there is a seller.

Second, locals, speculators, etc. provide important liquidity to often illiquid markets. They provide a very valuable service to these markets.

Third, even if you took speculators out of the market, there is no reason to believe you would remove volatility that extends beyond what reasonable people will always debate is outside of true value.
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Last edited by wig; 03-17-2011 at 08:33 AM..
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