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Gold/Mining/Energy : Precious and Base Metal Investing

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To: russwinter who wrote (35193)6/10/2005 5:52:57 PM
From: TrueScouse  Read Replies (1) of 39344
 
Russ:

Thanks very much for your response. I agree that the whole credibility of the market is likely to be tested very soon.

Not all these contracts will need to be delivered, as speculators in particular tend to roll them over.

This is the part I don't fully understand... Whenever I'm holding a futures position, I get a "last notice day" warning that tells me to get out well in advance of the settlement date. So who are these speculators who are "allowed" to hold contracts this late for June? Is it the commodity and hedge funds? Also, why is *anyone* speculating in the June contract, with minimal liquidity, instead of the far more active July?

Sorry about all the questions, but there's lots of talk about "short squeezes" and how they occur, and I'd like to understand it fully.

Best regards,
Howy
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