There was intraday commentary here that included an interesting perspective from the audacious one percent and their enablers.
And there was another about the current state of political discussion in Britain, a recent awkwardly stated reflection by the Prime Minister that may have revealed the mindset of their powerful, and its possible relationship with the continuum of politics and ‘statism’ here.
Oddly enough, both seem to have some implications for another question that was raised by a reader who shared this from another site. It was in reference to a posting earlier this week at Le Café that showed that the number of potential claims on actual available gold at the Comex was back to a record high.
And it is further related to a familiar theme about the relationship between a thing masquerading as a market, The Bucket Shop on the Hudson, and THE marketplace for precious metals in Asia and the Mideast. And the potential longer damages implicit in their protracted divergences.
“It is not meaningful that there are 107.7 claims per registered ounce. you should consider that the ratio between paper SPY and real SPY is infinity.
You are making the fundamentally flawed assumption that you need a physical commodity to determine price. You do not.
It doesn’t matter how many physical ounces there are per claim. It can be 1 or 1000 or 107.7 or infinity and it simply doesn’t matter.
The purpose of commodity markets is not to trade commodities, it is to determine price. There are zero SPY physical contracts and the market works just fine.
I was a commodities broker and part of the test is to ask the function of commodity markets. Every commodity broker understands you don’t need a physical product.
It’s not a broken system, it’s existed in one form or another for a longer time than currency in any form. But to use it you have to understand it and you do not.
Everyone who owns physical gold or silver bought it with paper. There is no difference, they are fungible. The only difference is the price you are willing to take or to give. Physical and paper are exactly the same.
Saying that financial markets are manipulated is about as meaningful as saying the sun rises in the East. Well, duh?”
What this person is saying is that price really has nothing to do with actual supply and actual demand for a physical thing. And much worse, they seem to have a remarkable disregard for risk and leverage. I was originally going to ignore this since it smelled like teen spirit. But when they came back and announced their expertise, how could I resist using this as an occasion of some education.
