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Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.

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Message: About those Feb. 5 gold and silver lows

Re: About those Feb. 5 gold and silver lows

posted on Feb 24, 2010 10:18AM

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"It is what it is until it isnt, and those who thought that options expiry day would mark the lows have already been proven wrong."

We have seen this repeatedly after OE for a number of months. I wrote twice about this for Bill Murphy. I postulate that this is a way to protect the boyz remaining physical. After an option holder opts for delivery, if the boyz can push down the price, they may be able to buy some idiots physical at the lower price to settle the contract.

Alternatively: If one holds a contract at say $1,000 and wants the physical delivered, what happens if, within a few days afrer OE, the "price" goes to $975? I wonder just what contractual obligation a contract holder that opted for delivery has, if the "price" goes down? If he is bound to consumate the contract, the boyz just end up making MORE $s from him as above. If he can just walk away, he could then just buy at spot.

It keeps gamblers in the paper game and investors out, but paper is still the "price discovery mechanism" accepted by sheep.

The boyz have the game stacked against us. It is no wonder that many believe that ownership of physical is the only real way to win.

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