I'd like to know if you could comment about the now above 50:1 ratio between OI and registered stocks at the Comex. It is unprecedented. As a Futures Trader, did you think about what may happen if Comex is headed towards some kind of cash settlement? My take is as long as confidence in the dollar is there, cash settlements will prevail, but every and each of these "events" (MF Global, Comex cash settlement for delivery?) is an additional nail in the coffin of current confidence in the fiat currency system... so maybe such a "default" of the Comex would be one more time a "non event" for the time being regarding gold's prices. But I'm interested in knowing what you think about it :) Thanks a lot and wish you good trades :)
I have been monitoring the delivery process this month quite closely Hubert and thus far there does not seem to be anything disorderly about it. The volume of deliveries does not seem excessive and we really have only had ONE STRONG STOPPER which has been JP Morgan for their HOUSE account.
I would think that if there was a genuine panic over the deliveries, we would see it FIRST during this process with a large number of entities standing for delivery and demanding the gold. As of now, and I want to emphasize that NOW, I am not concerned. But I do want to keep an eye on it for the reason that you state - the supply is shrinking in the warehouses.
Thanks for your comments - I know that I and many others enjoy them. Dan
Hi Dan,
ReplyDeleteI'd like to know if you could comment about the now above 50:1 ratio between OI and registered stocks at the Comex.
It is unprecedented.
As a Futures Trader, did you think about what may happen if Comex is headed towards some kind of cash settlement?
My take is as long as confidence in the dollar is there, cash settlements will prevail, but every and each of these "events" (MF Global, Comex cash settlement for delivery?) is an additional nail in the coffin of current confidence in the fiat currency system...
so maybe such a "default" of the Comex would be one more time a "non event" for the time being regarding gold's prices.
But I'm interested in knowing what you think about it :)
Thanks a lot and wish you good trades :)
Hubert du Haut;
ReplyDeleteI have been monitoring the delivery process this month quite closely Hubert and thus far there does not seem to be anything disorderly about it. The volume of deliveries does not seem excessive and we really have only had ONE STRONG STOPPER which has been JP Morgan for their HOUSE account.
I would think that if there was a genuine panic over the deliveries, we would see it FIRST during this process with a large number of entities standing for delivery and demanding the gold. As of now, and I want to emphasize that NOW, I am not concerned. But I do want to keep an eye on it for the reason that you state - the supply is shrinking in the warehouses.
Thanks for your comments - I know that I and many others enjoy them.
Dan
Thanks Dan,
ReplyDeleteIt's a pleasure to interact with you on this blog, as you give us the chance to do so and to learn a bit more every week.