This actually concerns me. What happened in the nickel market and the latest copper squeeze? I’d like to think “this time it’s different” But I don’t like betting against the Bank of international settlements and their underlings
Correct me if I'm wrong but doesn't most of that paper trading volume remain as such as the contracts are rather rolled over than delivered? Further, what's stopping London vaults from simply ordering more new gold? Or is the issue moreso the level of leverage? As I understand it, open interest has been fairly necrotic ever since gold broke into new highs, so I'm not so sure there needs to be a short squeeze. Another market commentator went as far as to say "wherever price discovery is happening, it's not in the futures market" in reference to the low positioning.
This actually concerns me. What happened in the nickel market and the latest copper squeeze? I’d like to think “this time it’s different” But I don’t like betting against the Bank of international settlements and their underlings
Frauds always collapse.
Agreed, not a question of if but when
Thanks for another great article David
My pleasure LH.
Correct me if I'm wrong but doesn't most of that paper trading volume remain as such as the contracts are rather rolled over than delivered? Further, what's stopping London vaults from simply ordering more new gold? Or is the issue moreso the level of leverage? As I understand it, open interest has been fairly necrotic ever since gold broke into new highs, so I'm not so sure there needs to be a short squeeze. Another market commentator went as far as to say "wherever price discovery is happening, it's not in the futures market" in reference to the low positioning.
The problem is the level of claims in the market vs the amount of gold bars in vaults.
This is the spot/immediate ownership market not the futures market.
10,000+ tonnes of spot claims vs what is available in vaults.
The silver situation is more tight.