Welcome To The Golden Minerals HUB On AGORACOM
Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
Message: Warnings Ignored ~ Ted Butler
Your Vote:
Did you know?
You can earn activity points by filling your profile with information about yourself (what city you live in, your favorite team, blogs etc.)
The main problem I have with Ted's article is the assumption that the counterparty risk is with foreigners, as if derivative fraud cannot possibly originate in America. What a cruel joke. China has a big silver custom refining industry. They probably do hedge this silver by selling futures, but this is not a naked short, but a legitimate one. They actually do have the silver to back the futures contract. The Chinese would know that COMEX silver is rigged, but they won't have minded because the rig works in favour of those who sell futures, like their own refineries. So why are they now threatening to default? The simple answer is they don't want to be forced to deliver real silver into a fake paper silver market. It looks like American banks piled on the initial Chinese futures position to generate a massive naked, concentrated short that is about to blow up in everybodys' faces. The Chinese are simply saying that they are not going to be conned out of real silver in response to a lot of fraudulent shorts put on by American banks. China will keep its silver and simply hand it back to the owners of the mines that had their silver custom refined in China..... Ted is implying that the problem centers with China so as the silver market heads towards a blow up, the Chinese are faced with two options: default on their COMEX hedges, or default on returning the custom refined silver to the true owners. Which is the lesser of two evils? China is saying to COMEX and the CFTC, that you made this mess and now you, alone, can clean it up.
P.S. This Chinese response is a strong indication that the silver market is about to blow.....
4 Recommendations
Loading...
Loading...
New Message
Please
login
to post a reply