Goldtent TA Paradise

When commercials sell gold matters….

1. Fullgoldcrown says:

   July 1, 2019 - 10:21 am at 10:21 am

   They are the market makers. They ARE selling Gold…Gold Futures.

   IF Specs want to buy gold futures (net net) in record numbers… the Commercials HAVE to sell in record numbers.

   Futures is a zero sum game.

   If you want to buy a futures contract it has to be created ( ie it has to be written ) When you close a contract ( sell a long) it is vaporised…ie no longer exists.

   This is not like the stock market where there are a finite number of shares and if you want to buy you buy from another spec who has these shares.

   This is like a casino…the Casino is the market maker if you will …creates liquidity ( chips)

   The spread is how the Commercials make money. They pocket the spread each time there is a transaction long or short.

   Thats how I understand this.

   The Specs drive the market and creat the open interest. The Commercials issue ( write) the contracts ( go short)

   and then cover when the specs sell the contract.

   If they get over exposed selling futures they just hedge in other markets ( Options / GLD etc)

2. Paul says:

   July 1, 2019 - 1:35 pm at 1:35 pm

   Thanks Fully,
   You write “If you want to buy a futures contract it has to be created…..”

   But Craig Hemke was on about COMEX futures a couple of months ago, and convincingly showed that
   THE [BULLION] BANKS SELL CONTRACTS PROMISING FUTURE DELIVERY OF GOLD THAT THEY DON’T HOLD AND WILL NEVER OWN.

   It is what it is, but it’s clearly not a fair system. You’d object if the float of Apple shares was determined in the futures market.
   Here’s some of his investigation:
   1. Korelin interview – New open interest contracts in gold just this week are keeping a cap on price moves http://www.kereport.com/2019/05/16/new-open-interest-contracts-in-gold-just-this-week-are-keeping-a-cap-on-price-moves/
   2. Tweet – https://twitter.com/TFMetals/status/1128294953732530176 (unfortunately the TFMetals twitter thread doesn’t scroll back before May 10, ie. the bulk of his investigation)
   3. Sprott article – https://www.sprottmoney.com/Blog/the-question-of-gold-price-manipulation-craig-hemke.html “Creation of Gold Futures: Following the spectacular failure of The London Gold Pool in 1968 and the closing of the U.S. “gold window” in 1971, a market for gold futures derivatives was created in New York on the COMEX. These futures contracts began trading on January 1, 1975… the very same day that ownership of physical gold by U.S. citizens was once again allowed following a 41-year prohibition”.

   Of course the Banks and the Boyz manipulate the gold market, they’d be crazy not to.
   There’s much evidence that the recent surge in palladium was a result of COMEX futures-physical manipulation gone wrong – I seem to remember they couldn’t deliver.
   Peace, success, out: P

   • Fullgoldcrown says:

     July 1, 2019 - 5:27 pm at 5:27 pm

     Missing the point Paul

     The futures contracts are BOUGHT by Speculators….Big Fish and little fish like us

     Thats what creates the futures market open interest.

     OF COURSE ALMOST NO ONE STANDS FOR DELIVERY OF THESE CONTRACTS

     NOBODY WANTS DELIVERY…they just want the huge leverage ( only a small portion of each contract is paid for up front)

     THE COMMERCIALS WRITE THE CONTRACTS KNOWING THEY WONT LIKELY HAVE TO DELIVER MORE THAN A SMALL PERCENTAGE

     THIS IS HOW FUTURES MARKETS WORK

     THEY WERE CREATED FOR COMMERCIALS ( PRODUCERS) SO THEY COULD HAVE A MARKET WHERE THEY COULD LOCK IN PRICES.

     BUT 99% OF THE CONTRACTS SETTLE WITHOUT ANY INTENTION OF DELIVERY…OR THEY ROLL OVER ( SELL THE NEAR CONTRACT AND BUY THE FURTHER OUT CONTRACT)

     THERE IS NOTHING NEFARIOUS ABOUT THIS….SPECS ( MANY THOUSANDS OF THEM) WILLINGLY PARTICIPATE IN THE FUTURES GAME. THEY DO NOT ALWAYS LOSE.

     WHAT IDIOT WOULD ALWAYS LOSE. WHO WOULD HAVE MONEY TO COME BACK AGAIN AND AGAIN AND LOSE

     ITS A ZERO SUM GAME. A WINNER FOR EVERY LOSER.

     RIGHT NOW THE OPEN INTEREST HAS BEEN ELIVATED AS MORE SPECS WANT TO HOLD FUTURES LONG.

     TODAY OF COURSE MANY LIQUIDATED ( SOLD) AND THE COMMERCIALS HAD TO BUY BACK !

     A LOT OF THE COMMERCIALS STILL LOST BIG BECAUSE THE WROTE THE CONTRACT AT A LOWER PRICE. BUT THEY ARE NOT STUPID EITHER . THEY WOULD HAVE HEDGED THEIR EXPOSURE IN OTHER MARKETS …GLD , OPTIONS ETC.

     GOLDBUG PERCEPTION OF THE COMEX AS THE EVIL EMPIRE IS JUST SO LUDICROUS.

     ITS JUST A CASINO …WHERE WILLING PARTICIPANTS PLACE THEIR highly leveraged BETS…KNOWING THE ODDS