Loading ...Re Story:
The Wild Hunt for 100-Ounce Gold Bars
The decades of gov’t permissiveness and looking the other way for decades, re many things, culminated, crashed, and went into reverse along with Bernie Madoff’s artificial profits, and his unfortunately gleeful investors that all got beheaded with the make believe global financial system. Do any of you remember that?? Well here’s more evidence. I (added) some comments (this way)
Part:
“At the center of it all are a small band of (paper short gold) traders who for years had cashed in on what had always been a sure-fire bet: shorting gold (they don’t even have) in the futures market. Usually, they’d (dirt bags) ride the trade out till the end of the contract when they’d have a couple of options to get out without marking much, if any, loss.” (but normally, big dollar gains)
Comment: But because of unanticipated jump in physical demand and suddenly higher Gold prices, the typical old free winner bet was a big loser, forcing the probable gov’t lackey better/winner (on big margin) to deliver physical gold on the naked short bet. This types of banker games goes on in practically everything re currencies, mortgages etc.
Part:
“The short-seller needs to pay a refiner to re-melt the gold and re-pour it into the required bar shape in order for it to be delivered to the paper contract buyer.” “The short-seller needs to pay a refiner to re-melt the gold and re-pour it into the required bar shape in order for it to be delivered to the contract buyer.” “Typically, this trade cost almost nothing. But after the close of the next session on Monday, that premium had jumped further to $6.75.
Comment: The lucky paper long buyers that normally lose, decide they want the physical gold because its so much cheaper (for them) compared to the much higher prices in the retail physical internet dealer prices and ebay prices.
So finally for a change, the bankers or constant paper shorters get what they deserve and hence a major reversal, like the end Madoffs fun, and a 150 year jail term.
https://finance.yahoo.com/news/hot-gold-trade-blew-rush-002525318.html?_fsig=j2K2XjZbf7s_0kwmLMbtLg–