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Central Missouri | Buckwheat said this .... Am not sure what NEWS this article brings forth....Futures markets have ALWAYS traded WAY more paper than the actual underlying commodity. Agree it obviously makes it lots easier for a few bigger players to manipulate both the cash AND futures prices though.....just dont see it as anything new??
and he is correct for the comex gold market. The testimony of 100:1 leverage in gold paper vs physical was in reference to the london market where as I understand it all contracts are supposed to be settled via physical. Thus the big shorting bullion banks are selling 100x the gold they have to settle physically. That is in contrast to the comex where the vast majority are to be settled via paper. The london market is many times larger than the comex in volume. | |
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Verge of Serious Ankle Grabbing
