Loading ...A couple things jump out at me in that Lynch article.
He he says customer accounts, assuming that is multiple accounts and they must be larger customers to have been able to purchase a large amount of contracts in the first place. If they were smaller, it would seem they’d be limited in size of the contracts. I don’t know. The other thing is that we haven’t seen the margin increase games at the Crimex yet, at least to my knowledge. That would indicate to me that there is enough respect/fear of pissing those particular customers off.
Finally, if the banks aren’t also taking delivery or covering shorts, are we to assume the Fed will not be doing QE and that when delivery winds down there will be the mother of all sell offs? Or are the banks just going to throw in the towel and pay cash on the contracts?
Either way, it doesn’t hurt to have a treasury secretary who has his largest holdings in gold. Might make the Crimex vulnerable to some of the shenanigans.