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Hold on to your butts! The great Bloomberg Commodity Index re-weighting 1/8-1/14
carew4me
Posts: 3,667 ✭✭✭✭
"The reweighting exercise scheduled from Jan. 8 to Jan. 14 could cause the selling of about $3.8B and $4.7B worth of silver and gold, respectively, Barron’s reported, citing a Dec. 11 note from JPM analysts led by Gregory Shearer."
https://seekingalpha.com/news/4536475-silver-and-gold-facing-near-term-selling-pressure
ZSL hedge: ACTIVATE!
Loves me some shiny!
“Often wrong, but never in doubt.”
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sell off mentioned earlier in another thread:
Paper is expensive, and gold is patient.
Or did some get an early start today, just like when stocks get added to the S&P 500?
Or did some get an early start today, just like when stocks get added to the S&P 500?
Possibly. I want to see what happens from Jan 8 to Jan 14. Could be a buying opportunity.
I knew it would happen.
Oh sorry there
...its that ol message board conundrum
Loves me some shiny!
“Often wrong, but never in doubt.”
my source is different than yours. only presented here to show at least two sources now.
Paper is expensive, and gold is patient.
If the daily trading volume is 200M ounces than that would be around 25% of 1 days total volume spread over 6 days. Meh.
this news was just in a text box on the bloomberg cable channel
it's not just gold and silver, but there was part of a sentence mentioning the rise of silver and the decline wednesday. HOWEVER, in the text box the date of it is on thursday. considering the tiny boxes, it could b 8th to 14th as reported
You can build a financial system with paper promises, but you cannot build the future’s physical economy without metal.
Paper is expensive, and gold is patient.
kitco - 75.58
fut - 75.38
This Bloomberg Commodity Index rebalancing occurs mid Jan. every year and it does force temporary selling of commodity ETF longs. Rebalancing is not a death sentence for a market. Last year provides a clean example. Gold was the top-performing commodity in 2024. Gold was rebalanced. Gold went higher anyway.
Because the rebalancing is known in advance, it tends to behave like any other widely anticipated event. The move happens into the announcement, not after it. By the time the selling actually hits, much of the adjustment has already been discounted.
"Interventions do not determine direction of a market. Interventions can only speed up or slow down.” We have witnessed this when it comes to margin requirement hikes.
Paper is expensive, and gold is patient.
"Train kepta rollin ...all night long"
Loves me some shiny!
“Often wrong, but never in doubt.”
looked on the lbma and don't see where lbma is also a futures market
lme does futures
there was a quite large volume spike yesterday shortly before regular trading hours close
ignore the above, that should have gone into the cme/lbma thread
I stand corrected. LBMA sets the price that is used in the London Gold Futures Market (LGFM) but does not directly deal in futures. Of interest is a document I came across that list the approved refiners for physical metal that is used to settle contracts.
Paper is expensive, and gold is patient.
Ha! ReWeight this…
Silver be BOOMIN!® BR!
Philippians 4:4-7
@derryb
There is a similar refiners short list for COMEX, has several of the same names, but others. What this might mean is the refiners most LCS dealer with, even the bigger names mentioned in posts, are only middle men in the process for the largest demand silver buyers (CME & LGFM) because they are not authorized refiners. Another hand in the pot.
So Upstate can sell to jewelery and electonics makers, but not directly to a futures merchant needing to make delivery on a contract or B/D authorizing new SLV shares.
each exchange has an acceptable refiners list. Bar fabricated by these refiners are the only bars accepted into exchange vaults. Because their is a lot of interaction of physical metal between the two western vaults odds are their lists are identical. I do recall years back when there was a shortage of approved bars, COMEX extended its list to include suppliers from asia. This was about the time that tungsten was showing up in approved bars.
Paper is expensive, and gold is patient.
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That is an old list. Note "U.S.S.R".
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Likely and old list, I pulled it from a search.
Paper is expensive, and gold is patient.
did the rebalance hold back the rallies?
according to those stories, it is over