Loading ...Gold Run
A large Chinese gold trading business has just frozen over $19 billion in assets Thousands of furious Chinese customers are unable to withdraw their physical gold or cash.
https://x.com/i/status/2017599525129466338
Too many sellers bringing in the stash and iou were written , similar to what a poster here wrote of with cheques issued for a few days later, How many dealers sit on millions of dollars waiting for gold coins to come in one day for exchange???? System overload all across the world. More sellers than buyers . Not sure if this dealer took the bullion and ran…
You have to wonder how dealers made out here as well. I spoke to mine on Friday as I thought initially buying at lows would be a good bet. Changed my mind as the day progressed though and a crash became obvious. The dealer sounded totally depressed. These are dangerous days for sellers. Especially when price drops so fast. Nobody can sustain that kind of price change. I would not be surprised to hear a few dealers are on the ropes because of it when you consider they bought their inventory at highs above 100 but were buying back panicked sellers all the way down. I smell a bankruptcy or two.
Technically they hedge
for every 100 oz they buy the sell the equivalent $s futures contract at the same time
But with this volatility I imagine it’s not an exact science
Of course, especially when it all happens in a single day.