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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Berk who wrote (84056)	12/3/2011 9:27:10 AM
From: carranza2	Respond to of 217705

Indeed. However, he seems to have forgotten that cash can be paid if the bullion can't be delivered. Cold comfort, of course, if the counterparty can't pay. The margin is very, very thin, as Comex apparently only keeps 1% of outstanding futures in bullion, a tiny amount, but it told Bass that this is no problem. He was naturally not satisfied with that response when he asked about how Comex would handle a month in which 4% of expiring future holders demand delivery. When he bought for UT, he accordingly took delivery of physical. This is also well worth watching. Message 27797734