Comments

  • Midas65Midas65 Posts: 47 Copper ✭✭
    Big Mouse, Luke is an excellent follow, tons of insights. Been following him for a year. Federal Reserve just announced resumption of Treasury Purchases, QE. Luke said the repo stuff was serious, and the fed would have to be more aggressive.

    I was wondering what people's gold buying strategy will be going forward?
    Do you have your stash and are just going to sit?
    Are you going to buy more no matter which way gold goes, or only buy more on dips, or only average up if the gold price goes up.?
    Or just keep and open mind and see how geo-political developments go.
  • GoldNRollGoldNRoll Posts: 215 Bronze ✭✭✭
    @BigMouse That's big, thank you for sharing!

    https://www.cmegroup.com/trading/metals/china-gold-futures.html

    The first result of this will be much easier est-west price arbitrage, less price fluctuation over 24h.

    The venue will be Globex and the settlement method is Financial. So we shouldn't expect gold deliveries, the settlement will be overwhelmingly in USD and CNH.

    This is not good. It's an expansion of the paper gold trading into the Chinese physical gold market with a potential to deflate the gold price. Until now, the only foot of paper money into China was HSBC. If the big Chinese players Bank of China, the China Construction Bank, the Industrial and Commercial Bank of China, the Agricultural Bank of China aso that were trading mostly 1 kg and 10 kg physical bars until now will start selling fractional paper gold to the Chinese public, that would expand on a base of 20000 tons of Chinese gold. That's huge...

    I have 2 questions, if someone can enlighten me:

    1) Short selling on Comex/Globex is naked short selling, or backed by loans? If backed by loans, who are the lenders, on what market do traders borough?

    2) For all other commodities, the spot price corresponds to the price of contracts ending immediately and settled by delivery. The sport price converges to the futures prices as the expiration date approaches. Only for gold, it appears for me that the price of contracts expiring in future (future month with the highest volume) is considered to be the spot price though it has nothing to do with contracts currently expiring and settled by delivery. This is beyond logic and common sense, so I must have got it wrong :/

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