Home Precious Metals

What drives the disconnect betweenthe "Spot" price on Futures vs. Selling price of Physical Metal?

124»

Comments

  • derrybderryb Posts: 36,110 ✭✭✭✭✭
    edited March 30, 2020 8:27PM

    The real price of silver is proving that the paper price of silver is being manipulated. Case closed.

    The decline from democracy to tyranny is both a natural and inevitable one.

  • jmski52jmski52 Posts: 22,301 ✭✭✭✭✭

    Maybe we should have invested in oil storage facilities

    As long as you have customers, tankage & pipelines are a pretty good bet. If the customers aren't there, you are basically "done".

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • cohodkcohodk Posts: 18,549 ✭✭✭✭✭

    @Higashiyama said:
    @MsMorrisine : interesting video.

    Maybe we should have invested in oil storage facilities; the price will come back some day!

    Assets or other items of utilitarian value, in general, are worthwhile if obtained at price levels of a previous generation.

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • cohodkcohodk Posts: 18,549 ✭✭✭✭✭

    @derryb said:
    The real price of silver is proving that the paper price of silver is being manipulated. Case closed.

    Seeing how dealers have restricted the supply, one could easily surmise that it is physical prices that are manipulated. Case opened back up.

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • derrybderryb Posts: 36,110 ✭✭✭✭✭
    edited April 7, 2020 8:29AM

    Yes, dealers are restricting supply right at the moment they can get more premium than they have ever received.

    Probably explains why their "buy" premiums are also at all time highs.

    The decline from democracy to tyranny is both a natural and inevitable one.

  • jmski52jmski52 Posts: 22,301 ✭✭✭✭✭

    Kitco shows gold @ $1645, down $15.

    Marketwatch shows gold @ $1690, down $4.

    Can anyone explain the discrepancy, and which is real?

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • jmski52jmski52 Posts: 22,301 ✭✭✭✭✭

    Oh, I think I see...……...the $1690 was the June expiration futures price. Kitco is spot price.

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • derrybderryb Posts: 36,110 ✭✭✭✭✭

    @jmski52 said:
    Kitco shows gold @ $1645, down $15.

    Marketwatch shows gold @ $1690, down $4.

    Can anyone explain the discrepancy, and which is real?

    The only real price is what is being paid for real gold.

    The decline from democracy to tyranny is both a natural and inevitable one.

  • cohodkcohodk Posts: 18,549 ✭✭✭✭✭
    edited April 7, 2020 2:22PM

    @derryb said:
    Yes, dealers are restricting supply right at the moment they can get more premium than they have ever received.

    Probably explains why their "buy" premiums are also at all time highs.

    And this is why you were govt employee. 😜

    Maybe they restrict supply to get premium up in the first place. Tis better to sell 10% of your inventory for 100% more than all of your inventory for 10% more.

    And to keep those premiums up you must support the bid. Create an artificial bid knowing no one would sell anyway. Its classic.

    Funny, cuz this sounds just like the "manipulation" that was supposedly done in the futures market.

    Think derryb, think.

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • derrybderryb Posts: 36,110 ✭✭✭✭✭
    edited April 7, 2020 4:54PM

    Physical metals are too volatile to control supply or price. When prices (or premiums) or up, you collect your profits. When they are down, you build your supply. That's the way they been doing it for years. The only difference is they are now cashing in on higher premiums, not higher base (spot) price. Wash, rinse, repeat. You know and they know, premiums will come down. Why hoard supply for lower prices?'

    And this is why you are a bank teller. Think AH, think.

    The decline from democracy to tyranny is both a natural and inevitable one.

  • cohodkcohodk Posts: 18,549 ✭✭✭✭✭

    @derryb said:
    Physical metals are too volatile to control

    Which is why they are controlled.

    And this is why you are a bank teller. Think AH, think.

    Nope.....fortune teller.

    This might make a good new avatar. Thanks for the suggestion.

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • jmski52jmski52 Posts: 22,301 ✭✭✭✭✭

    Maybe they restrict supply to get premium up in the first place. Tis better to sell 10% of your inventory for 100% more than all of your inventory for 10% more.

    I would surmise that dealers restrict their sales according to their financial position and business model. I don't think they "restrict supply" to get the premium up. They do bump their prices in response to market conditions. I would, too.

    to keep those premiums up you must support the bid. Create an artificial bid knowing no one would sell anyway. Its classic.

    They quote a price that hedges against market volatility in times like these when the Fed is creating imbalances in the credit and stock markets by poofing $trillions into existence for the benefit of their mismanaged big bank cronies.

    Funny, cuz this sounds just like the "manipulation" that was supposedly done in the futures market.

    Bullion dealers aren't manipulating the market simply by managing their inventory & cash positions. The bullion dealers can't sell naked shorts to control the market like the Comex allows the banks, such as JPM to do with free imaginary money from the Fed. Big difference.

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • cohodkcohodk Posts: 18,549 ✭✭✭✭✭

    Thats right jmski......if you dont know how markets work. ;)

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • jmski52jmski52 Posts: 22,301 ✭✭✭✭✭

    _Thats right jmski......if you dont know how markets work. ;) _

    How did the banks get $1.5 trillion without congressional approval?

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • blitzdudeblitzdude Posts: 5,361 ✭✭✭✭✭

    @jmski52 said:
    _Thats right jmski......if you dont know how markets work. ;) _

    How did the banks get $1.5 trillion without congressional approval?

    No approval needed, the banks along with a few others own congress. Semper Fi!

    The whole worlds off its rocker, buy Gold™.

Sign In or Register to comment.