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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (35193)	6/10/2005 3:56:33 PM
From: russwinter	Respond to of 39344

Another 340 out of Comex today: kitcometals.com 18,772 is 17,026 metric tonnes (.907) which is what I use given that LME is in metric. The two exchanges are down to 55,651 MT.

To: russwinter who wrote (35193)	6/10/2005 5:52:57 PM
From: TrueScouse	Read Replies (1) \| Respond to 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

To: russwinter who wrote (35193)	6/13/2005 12:58:12 PM
From: BSGrinder	Respond to of 39344

Excellent observation about the comexes losing sight of the real metal purpose of these transactions. As you've noted (via Ted Butler), the same situation exists in silver, where the paper obligations swamp the stockpiles of metal. I can't figure out any way out of this - even if the prices of copper and silver increase dramatically, we are heading towards a delivery crisis of some sort in the near future, long before the effects of higher prices can be felt in increased production. And in this case there is no single entity stockpiling the stuff that they can force to dishoard, as they did with the Hunts. Are the exchanges really that blind, or that willing to risk defaults? /Kit