I checked with a large London bullion bank this morning - a ‘slight’ contango has developed between the London spot/cash gold contract and the 2-month gold forward contract whereby the 2 month gold forward is priced slightly higher than spot/cash gold.
David, what is the possibility of the US ultimately wanting to compete with SGE for the global physical metals market and leave the london bullion market in the dust? Thanks
Tough to say. With rising interest rates, the debt Ponzi run by central banks is in collapse globally and investors are securing gold and silver secured out of the leveraged London paper market. That's enough to drive the run.
Surely this entire ' Shit Show ' can't lurch on for very much longer and it's potentially the case that we've just about seen the last ' Can Kick ' down the road ( 45 Gallon Oil Drum ) and that this has just slammed into the brick wall and is in the process of bouncing back and crushing the assorted can kickers ...one and all - finally and for good ( Hope So ..!! ) .
"The market seems to be pausing while it awaits further delivery of physical gold and silver from London"
If the analysis of Alisdair Macleod re: the difference between COMEX stood-for-deliveries and COMEX warehouse outflows is correct, any new physical liquidity entering the market is already spoken for.
In other words: that won't help. Rather, the backlog of to-be-delivered physical will just increase.
StoneX indicates that 2,000 tons of gold have been delivered to the US from Dec '24 to mid Feb '25. There is a lot going on in the gold/silver market that is not visible in COMEX inventories.
Alasdair ( as David ) can always be relied opon to be - " Right Over the Target " .
It's the seemingly continual " We'll have to wairt & See " / " Time will Tell " espousal's
that frustrate the hell out of me . Completely understand why as none of the experts have
got a ' Crystal Ball ' and woild instantly be bawled out by all and sundry if they commited to a date and it didn't happen . That all said - can't help but think that we're firmly in the End Game scenario now and it will be a period of weeks or months before matters reach a head and not another 2 - 3 x years or more .
At what point do entities that "buy" an LMBA promissory note have to fork over the actual currency? Is it when they put in for delivery or when they "purchase" the contract? Since most of these promissory notes are traded like baseball cards, how does cash settlement work when "selling" a note to another party? Are there conventional margin loans offered for them?
The OTC contracts traded in London are party-to-party. Each contract can be different. Would have to check with individual issuers to determine the terms.
David, what is the possibility of the US ultimately wanting to compete with SGE for the global physical metals market and leave the london bullion market in the dust? Thanks
Tough to say. With rising interest rates, the debt Ponzi run by central banks is in collapse globally and investors are securing gold and silver secured out of the leveraged London paper market. That's enough to drive the run.
Eric Sprott 15 minutes yesterday on silver https://youtu.be/yl7aQlozL9M?si=9pPB_M458rBKVuDd
Excellent - many thanks for posting. Always a good listen.
Surely this entire ' Shit Show ' can't lurch on for very much longer and it's potentially the case that we've just about seen the last ' Can Kick ' down the road ( 45 Gallon Oil Drum ) and that this has just slammed into the brick wall and is in the process of bouncing back and crushing the assorted can kickers ...one and all - finally and for good ( Hope So ..!! ) .
"The market seems to be pausing while it awaits further delivery of physical gold and silver from London"
If the analysis of Alisdair Macleod re: the difference between COMEX stood-for-deliveries and COMEX warehouse outflows is correct, any new physical liquidity entering the market is already spoken for.
In other words: that won't help. Rather, the backlog of to-be-delivered physical will just increase.
StoneX indicates that 2,000 tons of gold have been delivered to the US from Dec '24 to mid Feb '25. There is a lot going on in the gold/silver market that is not visible in COMEX inventories.
Maybe you'd have to talk to Mr. Powell about that gold.
Alasdair ( as David ) can always be relied opon to be - " Right Over the Target " .
It's the seemingly continual " We'll have to wairt & See " / " Time will Tell " espousal's
that frustrate the hell out of me . Completely understand why as none of the experts have
got a ' Crystal Ball ' and woild instantly be bawled out by all and sundry if they commited to a date and it didn't happen . That all said - can't help but think that we're firmly in the End Game scenario now and it will be a period of weeks or months before matters reach a head and not another 2 - 3 x years or more .
How can the clowns continue to paper short ??????? Longs should buy DIPS and squeeze shorts everytime they hit it.
At what point do entities that "buy" an LMBA promissory note have to fork over the actual currency? Is it when they put in for delivery or when they "purchase" the contract? Since most of these promissory notes are traded like baseball cards, how does cash settlement work when "selling" a note to another party? Are there conventional margin loans offered for them?
The OTC contracts traded in London are party-to-party. Each contract can be different. Would have to check with individual issuers to determine the terms.
Oups smell bad here 🙄