Hello Alasdair thank you for continuing updates off live platforms....the best cup of coffee or 2 I've bought by default in years...you have been the most amazing educational resource....it's 11:26pm Saturday in good old NZ .have a great weekend
If the Bullion banks are not able to make physical delivery on precious metals being demanded for physical delivery. Would they resort to revising the price of these delivery higher to reduce the amount of physical metal to be delivered?
True, but if the price goes to $10,000 that would mean 3 times less physical delivery. In the end wouldn't the important thing be the physical value so as to make delivery possible?
If the party owing the gold does not have the inventory to deliver, then would they not be obligated to go into the market somewhere and buy or lease it to make delivery. Perhaps the effect is the same - higher gold price.
To not deliver would be a default. The banks lawyers might be able to wave it all away, but the reputational hit to the entire derivatives house of cards would ring the markets like a bell...but people are mostly asleep these days and the talking heads would likely wave all that away as well. But the end would be that gold liquidity dries up alltogether...just my opinion and probably ignorant opinion at that.
No not ignorant my friend, we are all just exchanging perspectives speculating on possibilities. You made a good point. The Issue is where would there be supply in a time when everyone is speculating on a price increase? Especially when the extra buying spikes a price increase.
Not sure sir.. Never saw those but I think they are quantity related so.. If you owe one ounce it will be one ounce even when the ounce is worth three times..
Sir. In normal times I think a bankrupt will follow. In these times? Well.. Cry uncle, ask lme (nickel like last year) and declare some force majeure? They sure are going to try and cover the a.. To the old mighty Duke and Duke... 😉
Well rather than a bankruptcy where nothing would be delivered would it not make more logic to deliver a smaller quantity at a higher value and avoid voiding the contract?
Can't help but think that the realisation that " Silver Is Money " , always has been & always will be - despite it having been de-standardised by the usual suspects yonks ago - that this will become all too apparent to one & all as soon as the global financial system's edifice starts to crumble & disintegrate before our very eye's . If Silver comes out of the ground at a 7 : 1 ratio compared with Gold & given it's multiple use's and severe scarcity - I can see it being worth vastly more than most think is possible .
Per the above & thinking back to the vast amount of ' United ' & ' American ' airline stocks which were found to have been shorted immediately prior to ' 9 : 11 ' - am just wondering who or what entity it is that has just placed these $200 x Dollar Silver Call's that have been sitting at around 4,812 Open interest for over a week or so now and whether it is they or someone new who has only just added another 1,300 Call's ( taking O.I. now up to - 6,812 ) .....Said options are due to expire on the 28th of August , ' SO ' question is what is it that they expect ( Or Know ..?? ) is going to take place between then & now , as will cause Silver to rise so dramatically and produce such a massive ' Pay Day ' for those concerned ..etc .
Good Morning Alasdair, Given that the price of gold is climbing higher again (£ falling) there must be incredible strain on the bullion banks now. Gave you any insight into what their current positions are?
Hello Alasdair thank you for continuing updates off live platforms....the best cup of coffee or 2 I've bought by default in years...you have been the most amazing educational resource....it's 11:26pm Saturday in good old NZ .have a great weekend
Thanks. You too Craig
If the Bullion banks are not able to make physical delivery on precious metals being demanded for physical delivery. Would they resort to revising the price of these delivery higher to reduce the amount of physical metal to be delivered?
A contract is a contract. If it cannot be fulfilled by one party than it is in dire trouble
True, but if the price goes to $10,000 that would mean 3 times less physical delivery. In the end wouldn't the important thing be the physical value so as to make delivery possible?
If the party owing the gold does not have the inventory to deliver, then would they not be obligated to go into the market somewhere and buy or lease it to make delivery. Perhaps the effect is the same - higher gold price.
To not deliver would be a default. The banks lawyers might be able to wave it all away, but the reputational hit to the entire derivatives house of cards would ring the markets like a bell...but people are mostly asleep these days and the talking heads would likely wave all that away as well. But the end would be that gold liquidity dries up alltogether...just my opinion and probably ignorant opinion at that.
No not ignorant my friend, we are all just exchanging perspectives speculating on possibilities. You made a good point. The Issue is where would there be supply in a time when everyone is speculating on a price increase? Especially when the extra buying spikes a price increase.
Not sure sir.. Never saw those but I think they are quantity related so.. If you owe one ounce it will be one ounce even when the ounce is worth three times..
Yes, agreed, but if it is not physically possible to deliver the exactly quality what is the next best thing?
Sir. In normal times I think a bankrupt will follow. In these times? Well.. Cry uncle, ask lme (nickel like last year) and declare some force majeure? They sure are going to try and cover the a.. To the old mighty Duke and Duke... 😉
Well rather than a bankruptcy where nothing would be delivered would it not make more logic to deliver a smaller quantity at a higher value and avoid voiding the contract?
I didn't see your comment before I wrote mine. I guess we're thinking the same 🤔
Can't help but think that the realisation that " Silver Is Money " , always has been & always will be - despite it having been de-standardised by the usual suspects yonks ago - that this will become all too apparent to one & all as soon as the global financial system's edifice starts to crumble & disintegrate before our very eye's . If Silver comes out of the ground at a 7 : 1 ratio compared with Gold & given it's multiple use's and severe scarcity - I can see it being worth vastly more than most think is possible .
Per the above & thinking back to the vast amount of ' United ' & ' American ' airline stocks which were found to have been shorted immediately prior to ' 9 : 11 ' - am just wondering who or what entity it is that has just placed these $200 x Dollar Silver Call's that have been sitting at around 4,812 Open interest for over a week or so now and whether it is they or someone new who has only just added another 1,300 Call's ( taking O.I. now up to - 6,812 ) .....Said options are due to expire on the 28th of August , ' SO ' question is what is it that they expect ( Or Know ..?? ) is going to take place between then & now , as will cause Silver to rise so dramatically and produce such a massive ' Pay Day ' for those concerned ..etc .
Thank you Alasdair.
I only hope we fellows gold bugs can enjoy our satisfactions when time will come 😢😅
Good Morning Alasdair, Given that the price of gold is climbing higher again (£ falling) there must be incredible strain on the bullion banks now. Gave you any insight into what their current positions are?