Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Secret_Agent_Man who wrote (78710)	10/21/2001 9:51:56 PM
From: Secret_Agent_Man	Respond to of 116752

* warnings on Silver gold-eagle.com warnings on Silver. All in all, the danger in (I have to say "unsecured") derivatives is close to a notional of $200 trillion (to be compared with a total world's GDP of $41 trillion). Frightening numbers. That's only the visible part of the iceberg. gold-eagle.com Once any of the Shorts decide to cover, the fun begins, because Mr. Short now has to cover ten ounces of silver with only one available. This is why as Mr. Butler has pointed out so many times the "leasing of metals" is Fraudulent. The Lessor moved the metal to someone who sold it into the market and now the fact is the metal is gone forever! What price will silver have to reach when the panic starts? How are the loans going to be paid back? How do so few ounces of physical cover over one billion ounces that have been loaned out over the past decade? I do not have a concise answer, however recent history in the palladium market does give us some clues. First who ever heard of having to put up margin at two or three times the cash (fully paid ) position? Well, check the rule changes in palladium recently. Look at how the CFTC can change the rules to suit their needs. To stop delivery of a commodity contract held by a long is against everything the free market stands for. In fact any silver bulls as old as me will remember the CFTC rule change in 1980, when the Hunt's had cornered the silver market. Only sell orders were permitted! The commodities exchange will do everything in its power to deny delivery to the longs. This can be verified by recent history, again look at the palladium market. That is the freightening part. Message 16536692

To: Secret_Agent_Man who wrote (78710)	10/22/2001 9:53:28 AM
From: Hawkmoon	Read Replies (2) \| Respond to of 116752

JPM's (combined JPMorgan & Chase) netted derivative holdings is $22.3 trillion, their market capitalization is currently $61.2 billion Just curious.... Who do you think holds the other side of these derivative positions? Not saying JPM isn't heavily exposed, but it depends on the quality of the derivatives positions they hold. And for every derivative position they hold, someone has to hold the other side. Which means, if JPM loses on their position, the other side stands to gain considerably. Hawk