Gold & Silver Forum (http://goldismoney.info/forums/index.php)
- Gold - Silver - Coins - Numismatics (http://goldismoney.info/forums/forumdisplay.php?f=51)
- - Silver Contracts Not Required to Deliver in Substance? (http://goldismoney.info/forums/showthread.php?t=4699)

Silvercoin | 11-03-2003 08:04 PM
Silver Contracts Not Required to Deliver in Substance? I read recently that the government has already given power to the exchanges to allow them to make delivery in "paper" currency or computer bits rather than in the real metal if those exchanges got caught without enough metal to meet the contracts. Anyone recall reading such article and where I might acquire a copy? Thanks

Halophyte | 11-03-2003 08:43 PM
Re: Silver Contracts Not Required to Deliver in Substance? Quote:
Originally Posted by Silvercoin I read recently that the government has already given power to the exchanges to allow them to make delivery in "paper" currency or computer bits rather than in the real metal if those exchanges got caught without enough metal to meet the contracts. Anyone recall reading such article and where I might acquire a copy? Thanks
From all that I've read and understand about the paper shorts in a deficit market it won't give them much cover to settle in cash instead of physical delivery. The gap is too wide right now (in silver) and they'll won't be able to settle out, even in cash. Somebody is going to be left holding the "empty" bag.....

Silvercoin | 11-03-2003 11:18 PM
Re: Silver Contracts Not Required to Deliver in Substance? Quote:
Originally Posted by Halophyte From all that I've read and understand about the paper shorts in a deficit market it won't give them much cover to settle in cash instead of physical delivery. The gap is too wide right now (in silver) and they'll won't be able to settle out, even in cash. Somebody is going to be left holding the "empty" bag.....
Thank you Halophyte. I believe the article I was reading was on Kitco or Gold Digest or something like these. I remember the author saying something like this(not a direct quote): if the warehouses could not come up with the silver when delivery was expected or demanded, then there are rules, already written and approved, that allow an escape for the holder of the theoretical silver, i.e. he can simply pay the contract holder in cash. Of course if the contract holder needs silver, then his business is corrupted and might even fail. I suspect that if such a scenario were to occur, then the whole warehouse system would come into scrutiny. Thanks again.

Ander | 11-05-2003 11:00 PM
Re: Silver Contracts Not Required to Deliver in Substance? The issue of what happens when the shorts can provide physical silver is a big concern of Ted Butler's. I think I read something about this in one of his recent articles.

Silvercoin | 11-07-2003 10:42 PM
Re: Silver Contracts Not Required to Deliver in Substance? Quote:
Originally Posted by Ander The issue of what happens when the shorts can provide physical silver is a big concern of Ted Butler's. I think I read something about this in one of his recent articles.
Thank you Ander. I have been in touch with Ted Butler and he has helped me bunches. I did read his articles about "The 800 Pound Gorilla" and "The Shorts ARE Different" and the information is in line with my thoughts. Where I am concerned is that I just don't trust holding paper certificates that promise to deliver. Too many times in history those kinds of "promises" have been found empty and people have been fleeced. I just don't believe that the "law" can do much until the horse is out of the barn, i.e. there is not much keeping the barn door shut or the "keepers" of real money, gold and silver metal, truely honest. Regards, Silvercoin

Scorpio | 11-07-2003 10:56 PM
Re: Silver Contracts Not Required to Deliver in Substance? If I may throw in two bits, Instead of 'he who has the gold, writes the rules' use......... 'He who writes the rules has the gold!'...big difference. By that I mean they will have escape clauses alright. Look what happened to the Hunts on a bunch of trumped up charges. Look what happens to any futures and options commodity when the price rises beyond what they consider 'safe'. For instance, when Palladium went through the roof, what did they do? Well, they changed the margin requirements to go long so greatly, that the margin to purchase the 'rights' to one contract of Palladium was greater than the value of the metal on the open market if I remember correctly. Point being, they changed the rules. So, let's say silver goes ballistic, who benefits? Those who exit their options before the contracts seized, call it what you may. Those who hold physical in their hand. Those who hold silver stocks, that are selling into this overheated market. Futures players who are made whole, instead of a forced rollover to future months, thereby prolonging the profit opportunity until the price deflates. Paper is not guaranteed. Physical is your only true safe bet. S

IrishGold | 11-07-2003 11:08 PM
Re: Silver Contracts Not Required to Deliver in Substance? Scorpio, you said, Quote:
For instance, when Palladium went through the roof, what did they do? Well, they changed the margin requirements to go long so greatly, that the margin to purchase the 'rights' to one contract of Palladium was greater than the value of the metal on the open market if I remember correctly.
So if they did the same thing to silver, and one contract of silver is for 5,000 ounces, and silver was selling at spot for $100 an ounce, you are saying the margin call to buy that contract would be over $500,000?

Silvercoin | 11-07-2003 11:48 PM
Re: Silver Contracts Not Required to Deliver in Substance? [QUOTE=Scorpio]If I may throw in two bits, Instead of 'he who has the gold, writes the rules' use......... 'He who writes the rules has the gold!'...big difference. By that I mean they will have escape clauses alright. Look what happened to the Hunts on a bunch of trumped up charges. Look what happens to any futures and options commodity when the price rises beyond what they consider 'safe'. Paper is not guaranteed. Physical is your only true safe bet. Thank you Scorpio. I think "Physical" is the way to go as well. Can you tell me more about the Hunts? My only recollection is that they were simply acquiring silver or silver contracts, which I see as just fine. Did the Hunt's somehow expose some dishonesty in the COMEX or CBOT or some warehouse, i.e. did the Hunts show that the shorts could not deliver?

G-khan | 11-07-2003 11:52 PM
Re: Silver Contracts Not Required to Deliver in Substance? [QUOTE=Silvercoin] Quote:
Originally Posted by Scorpio If I may throw in two bits, Instead of 'he who has the gold, writes the rules' use......... 'He who writes the rules has the gold!'...big difference. By that I mean they will have escape clauses alright. Look what happened to the Hunts on a bunch of trumped up charges. Look what happens to any futures and options commodity when the price rises beyond what they consider 'safe'. Paper is not guaranteed. Physical is your only true safe bet. Thank you Scorpio. I think "Physical" is the way to go as well. Can you tell me more about the Hunts? My only recollection is that they were simply acquiring silver or silver contracts, which I see as just fine. Did the Hunt's somehow expose some dishonesty in the COMEX or CBOT or some warehouse, i.e. did the Hunts show that the shorts could not deliver?
I have a good article on the Hunts and I will get it up it has to be scanned in from a 1982 playboy and it is huge I will work on it and have it up as soon as I can. I did it one time and it took about 4 hours to edit and fix it to look right......

IrishGold | 11-08-2003 11:49 AM
Re: Silver Contracts Not Required to Deliver in Substance? Quote:
Originally Posted by G-khan I have a good article on the Hunts and I will get it up it has to be scanned in from a 1982 playboy and it is huge I will work on it and have it up as soon as I can. I did it one time and it took about 4 hours to edit and fix it to look right......
But beware, as it is slanted to TPTB way of thinking

Silvercoin | 11-08-2003 05:54 PM
Re: Silver Contracts Not Required to Deliver in Substance? Quote:
Originally Posted by G-khan I have a good article on the Hunts and I will get it up it has to be scanned in from a 1982 playboy and it is huge I will work on it and have it up as soon as I can. I did it one time and it took about 4 hours to edit and fix it to look right......
Thank you G-khan and IrishGold for the info on the above mentioned article. Yes, I would like to read it but do not want to be the cause of burning your valuable time. I do think there are folks that would like to know the story who were either not around at the time or who were not paying careful attention(like me).

IrishGold | 11-08-2003 07:24 PM
Re: Silver Contracts Not Required to Deliver in Substance? G-khan has already started the article, and if I know him, once he starts something, there ain't no stopping him.

All times are GMT -4. The time now is 05:34 PM. |

Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2010, Jelsoft Enterprises Ltd.
Copyright = None use it and Link to GIM