Comment: What is the difference between physical demand and speculation.

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In reply to comment: I disagree..... (see in situ)

What is the difference between physical demand and speculation.

Whether the current bull market is a bubble about to burst or one that will continue does not invalidate the simple fact that people are speculating on future value. Those long are speculating on an increase in value; those short are speculating on a decrease in value; those out of the markets are either uninterested, don't care for the risk, or have bigger fish to fry.

By your own words you indicate you are speculating; you seem to think that because you have "fundamentals" to support your opinion that somehow you are not speculating on the change in value, but you are.

Your entire premise is that at some future date you will have greater value or at least preserve value. You are not investing, but speculating on what the value will be in the future. Physical demand versus contract demand is simply an expression of how to carry out your speculation. Go look up the dictionary definition of speculation.

"Bend over and grab your ankles" should be etched in stone at the entrance to every government building and every government office.