Loading ...Re 400million Oz
Here’s how it works….the last Friday of the preceding month ( Nov for Dec), is what is called first notice day…if you are long, a short can deliver to you on any day until expiry, the last trading day in this case 31 Dec…..you then have to either accept the delivery, or sell yr long contract, or roll it into anther month and re-deliver the warrant you got initially…..what seems to have happened last Friday, is a long of 400 million Oz’s was delivered , who said thankyou…..and when his/her broker gulped and said are you st, st , st stan…stand standing for the whole lot, they said yes….or some sort of conversation…..
Now Crimex has nowhere near that amount of silver registered for delivery….
you get the picture….Crimex will probably have to cash settle, where the long gets the closing price for the Dec contract, but no metal…or very little…..which means Crimex is effectively in default.
I will say…this might so far be an overeaction someone may have seen the Open Interest for Dec and assumed it was all going to be asked for delivery…it may not…..but if you look at the spreads the cost of rolling the contracts fwd, is way beyond finance …so asking for delivery makes far more sense……Dec to March silver is 0.72 cents….finance at 4.00 % shud be 0.564 cents
The daily delivery and stoppage details are going top be fascinating……
Ted Butler details them well daily here
https://silverseek.com/article/ted-butlers-silver-bonfire-has-been-lit