14 September 2015
Who is the player and who is being played?
New post on corporate site with some thoughts on articles about shortages of coins and comex stocks. And yes, I have read How to Win Friends and Influence People but I don't give a F. As Alex Stanczyk says "Price will not fix. West demands of physical delivery similar to Kyle Bass will fix price" and paying massive coin premiums just reduces the amount of physical drain out of the system and thus pressure on it.
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One vault on one exchange, yes it is the end of the world.
ReplyDeleteYou're being disingenuous. You know and I know that "total gold stocks" at the COMEX playpen are irrelevant and that 'eligible' "stocks" may only become 'registered' at far, far higher prices. One only need look at the steady dribble of bullion owners converting their 'registered' into 'eligible' because of today's prevailing low (and artificial) prices.
ReplyDeleteNo, I'm not be disingenuous. You and many other are completely ignoring the possibility that bullion banks engage in arbitrage and could easily be acquiring physical metal outside the Comex warehouse against their short positions which they will deliver into Comex should longs refuse to sell out. They could also, in that market making/arbitrage activity, have purchased eligible metal against their short. There is no need for them to convert that to registered to satisfy you or others that OI is "covered". Indeed wouldn't you think that such traders would purposely hide the nature of such hedged positions and what their true proprietary position is just so that silly "analysts" like ZH or Craig can get all their followers worked up about imminent default and how prices will have to go higher to bring out metal to settle?
ReplyDeleteAnd I fully agree that bullion banksters are likely playing the spread, buying physical as a hedge for their short positions. But, at these managed prices, and when those short positions are constantly increasing in term and # ounces to the point that that each 'declared' eligible ounce is potentially spoken for 220+ times, any buying of physical will never be able to keep up. The short positions will (and do) multiply and multiply and the banks will be chasing their own tails unless they can somehow engineer another reduction in "the gold price", something not easy in this economic climate. One day the "price" will explode, suddenly and massively: see Jim Rickards' July 16 2015 interview on the subject.
DeleteThe Comex is a paper betting shop which criminally has been allowed by government to set the price of the real item. It should be forced to have unencumbered ounces in possession or in escrow for EVERY ounce of paper contracts issued.
I thought things were still on track for 21 September release, I just heard that we have had a lot of pre-order interest.
ReplyDeleteOh yes there will be scams, as the recent Bullion Direct example shows, but not every single storage service will fail. There are ways to tell which is which but if you don't feel comfortable, then yep stack physical, just don't pay silly premiums - you don't have to buy it all right now.
ReplyDeleteGlad for the explanations, Bron. All i know is buy low sell high. I can't predict what will change this downtrend. Hope my miners survive till prices rise....the coins will be there either way.
ReplyDeleteYes it was released today ex-Perth Mint, some coin dealers may not have it in store. See http://www.perthmintbullion.com/au/Buy-Silver-Coins/All-Silver-Coins.aspx
ReplyDeleteWell we have been stamping out millions of them and have already sold everything we stockpiled, so maybe it is freighting issue getting out the door. Dealers should know what they have been allocated so I'm not sure why they would not be pre selling what they know they are going to get.
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