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A naked short is when the short seller does not have or borrow the item that he shorts, but sells shorts regardless. In the paper gold market, the participants are betting on gold prices and are content with the monetary payment. Therefore, generally, as participants are not interested in taking delivery of the gold, naked shorts do not need to be covered with the physical metal.
In other words, with naked shorts, no physical metal is actually sold.
People ask me how I know that the Fed is rigging the bullion price and seem surprised that anyone would think the Fed and its bullion bank agents would do such a thing, despite the public knowledge that the Fed is rigging the bond market and the banks with the Fed’s knowledge rigged the Libor rate. The answer is that the circumstantial evidence is powerful.
Consider the 500 tons of paper gold sold on Friday. Begin with the question, how many ounces is 500 tons? There are 2,000 pounds to one ton. 500 tons equal 1,000,000 pounds. There are 16 ounces to one pound, which comes to 16 million ounces of short sales on Friday.
Who has 16 million ounces of gold? At the beginning gold price that day of about $1,550, that comes to $24,800,000,000. Who has that kind of money?
What happens when 500 tons of gold sales are dumped on the market at one time or on one day? Correct, it drives the price down. Investors who want to get out of large positions would spread sales out over time so as not to lower their sales proceeds. The sale took gold down by about $73 per ounce. That means the seller or sellers lost up to $73 dollars 16 million times, or $1,168,000,000.
Who can afford to lose that kind of money? Only a central bank that can print it.
The sale took gold down by about $73 per ounce. That means the seller or sellers lost up to $73 dollars 16 million times, or $1,168,000,000.
Who can afford to lose that kind of money? Only a central bank that can print it.
source
I'd be very interested in hearing from some of you about the above.
I'm dubious that even our government's masters of the money supply can get away with creating $1.6 billion in new money.
But then I am not entirely certain they have to really do that if the "winners" were in fact not real, but merely paper investors.
A naked short is when the short seller does not have or borrow the item that he shorts, but sells shorts regardless. In the paper gold market, the participants are betting on gold prices and are content with the monetary payment. Therefore, generally, as participants are not interested in taking delivery of the gold, naked shorts do not need to be covered with the physical metal.
In other words, with naked shorts, no physical metal is actually sold.
People ask me how I know that the Fed is rigging the bullion price and seem surprised that anyone would think the Fed and its bullion bank agents would do such a thing, despite the public knowledge that the Fed is rigging the bond market and the banks with the Feds knowledge rigged the Libor rate. The answer is that the circumstantial evidence is powerful.
Consider the 500 tons of paper gold sold on Friday. Begin with the question, how many ounces is 500 tons? There are 2,000 pounds to one ton. 500 tons equal 1,000,000 pounds. There are 16 ounces to one pound, which comes to 16 million ounces of short sales on Friday.
Who has 16 million ounces of gold? At the beginning gold price that day of about $1,550, that comes to $24,800,000,000. Who has that kind of money?
What happens when 500 tons of gold sales are dumped on the market at one time or on one day? Correct, it drives the price down. Investors who want to get out of large positions would spread sales out over time so as not to lower their sales proceeds. The sale took gold down by about $73 per ounce. That means the seller or sellers lost up to $73 dollars 16 million times, or $1,168,000,000.
Who can afford to lose that kind of money? Only a central bank that can print it.
source
I'd be very interested in hearing from some of you about the above.
I'm dubious that even our government's masters of the money supply can get away with creating $1.6 billion in new money.
But then I am not entirely certain they have to really do that if the "winners" were in fact not real, but merely paper investors.
The gold futures market has been settled in cash since at least 2009 and probably earlier. Other than option strategies I have no interest in any futures markets so I just picked up that datum in passing.A naked short is when the short seller does not have or borrow the item that he shorts, but sells shorts regardless. In the paper gold market, the participants are betting on gold prices and are content with the monetary payment. Therefore, generally, as participants are not interested in taking delivery of the gold, naked shorts do not need to be covered with the physical metal.
In other words, with naked shorts, no physical metal is actually sold.
People ask me how I know that the Fed is rigging the bullion price and seem surprised that anyone would think the Fed and its bullion bank agents would do such a thing, despite the public knowledge that the Fed is rigging the bond market and the banks with the Feds knowledge rigged the Libor rate. The answer is that the circumstantial evidence is powerful.
Consider the 500 tons of paper gold sold on Friday. Begin with the question, how many ounces is 500 tons? There are 2,000 pounds to one ton. 500 tons equal 1,000,000 pounds. There are 16 ounces to one pound, which comes to 16 million ounces of short sales on Friday.
Who has 16 million ounces of gold? At the beginning gold price that day of about $1,550, that comes to $24,800,000,000. Who has that kind of money?
What happens when 500 tons of gold sales are dumped on the market at one time or on one day? Correct, it drives the price down. Investors who want to get out of large positions would spread sales out over time so as not to lower their sales proceeds. The sale took gold down by about $73 per ounce. That means the seller or sellers lost up to $73 dollars 16 million times, or $1,168,000,000.
Who can afford to lose that kind of money? Only a central bank that can print it.
source
I'd be very interested in hearing from some of you about the above.
I'm dubious that even our government's masters of the money supply can get away with creating $1.6 billion in new money.
But then I am not entirely certain they have to really do that if the "winners" were in fact not real, but merely paper investors.
There are 16 ounces to one pound, which comes to 16 million ounces of short sales on Friday.
How does Paul know it was a short sale?
Who has 16 million ounces of gold?
Hedge funds that bought 16 million ounces of gold?
Open full contracts on the Comex cover 40,900,000 ounces.
The US dollar can't possibly become worthless. Given that every major currency on earth is being watered at about the same speed as the dollar, there is not much probability current relative strengths will change any time soon.
Even better, it is not likely anyone reading this will live to see the US dollar replaced as the world's reserve currency.
Depends on the definition of the word "manipulated". Is consumer interest considered manipulitive? Should investors be allowed to buy and sell the stuff that never loses value? The absolute worst case scenario is when the federal government gets involved. It always ends in a mess.
If the U.S. Dollar becomes worthless, wouldn't gold need to take its place?
Depends on the definition of the word "manipulated". Is consumer interest considered manipulitive? Should investors be allowed to buy and sell the stuff that never loses value? The absolute worst case scenario is when the federal government gets involved. It always ends in a mess.
