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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (10124)	3/15/2004 7:40:54 AM
From: orkrious	Read Replies (1) \| Respond to of 110194

Did anyone catch Vincent Gallagher of the Needham Growth Fund on bubblevision this morning? He liked and oil shipping company with a PE of 5 and a yield of 3%. I didn't write down the symbol. I thought it was FPO but that's not it. tia ork

To: russwinter who wrote (10124)	3/15/2004 8:11:00 AM
From: Louis V. Lambrecht	Read Replies (1) \| Respond to of 110194

Russ, Comex does not even have to close up delivery. Comex can elect, for the purpoe of protecting the small investor <ng>, to rise the margins to 100% to be met within 6 hours. If memory serves, this is how the Hunts were cornered. All that is needed is to email the few clearing houses and have them call margins. I occasionally traded options. But even then, never more notional than the cash I could raise to meet a call: what would prevent the exchange to immediately settle the options with futures? Then call for margins. US exchanges are their own regulating bodies.

To: russwinter who wrote (10124)	3/15/2004 10:48:07 AM
From: Umunhum	Respond to of 110194

<Obviously I don't trust the integrity of the Comex as a real silver market, but that's probably where one has to go to speculate on it.> One expert that I follow believes that when the Comex runs out of silver they will just settle all the remaining contracts in cash. So there will come a day will they will say no more deliveries. The last price was this for your contract, so this is what you get. This is one of the reasons that I took delivery. In this scenario, the physical price of silver will explode and the people who own futures will be left behind. <If I understand your post correctly, you've bought Comex contracts, and have taken delivery? How has that worked, any extra costs?> I set up an account with Alaron. They charge $7.50 a contract to trade futures. Taking delivery of each contract was an additional $100 per contract. And then when I read that they can sell the underlying silver to the certificates to many different people I paid an additional $80 to take possession of 5 certificates. (probably unlikely but it made me nervous enough to take delivery of the certificates too). I pay $20 per certificate per month to store in at Brinks (3 certificates) and Republic National Bank (2). I received a certificate that lists the serial numbers of the five bars and exactly how much each one of them weighs. Each Contract is supposed to be for 5000 ounces but they vary by as much as 250 ounces plus or minus. I was told that I could pick up the silver as long as I gave them a 24 hour notice. The silver is being stored in New York though. <Where would you sell it, and what would the dealer pay you relative to the spot market?> I planned on selling 1000 ounces at a time right on the comex. (mini-silver contracts) If the comex defaults and there is no more trading, I don’t believe I will have a problem selling it.