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.

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

To: Horgad who wrote (132178)	3/16/2017 1:55:57 PM
From: ggersh	Respond to of 217712

I wouldn't trust "storing gold" anywhere else than where I control it owning physical is in a way shorting of paper gold, and should you short paper can you only collect paper? options from my understanding has been sell the volatility and premium it works 95% of the time but when you're in the 5% trade it's curtains. In 87 the whole treasury option pit went bk, I'm sure there have been other moments.

To: Horgad who wrote (132178)	3/16/2017 6:09:45 PM
From: bart13	Respond to of 217712

is there a vehicle that would actually be good for "shorting" paper gold or is it just options. Is sure might not be everyone's cup of tea risk management wise, but I've used futures successfully this cycle for both longs and shorts since my first buy in 2003 around 303, and my first big short at 1889.

To: Horgad who wrote (132178)	3/16/2017 8:08:00 PM
From: TobagoJack	Read Replies (1) \| Respond to of 217712

the boyz, including famous gold traders, is feasibility-studying the establishment of a platform comprised of outsourced third party storage / custodial facility, a structure of legal documents, and have the platform act as a party integrated into the global trade system of gold, akin to a bank and gold mine, and offer own paper gold instruments that can only be redeemed by paper gold, and the terms would be perpetual / near-perpetual, with physical gold owners able to short paper gold, and the folks who wish to buy / trade paper gold doing to their heart's content until the cows come home, and of course, ultimately, until doomsday - that fine day when paper gold goes worthless and physicalgold goes worthmore. i am trying to spot the flaw in the concept. first thought experiment - what happens as gold exchanges are successively shut down by the authorities in move to outlaw gold holdings, gold trading, and gold storage? my answer so far is the schema needs to be done 50/50 in switzerland and hong kong, and with the physical gold owners re-insured by the surplus-plenty governmental authorities. the hong kong gold storage facility at the airport is owned and backstop re-insured by the hk government, and unlikely that the hk authority would see need to outlaw gold trading as way too many residents own physical gold and have paper gold that is organic part of their regular bank wrap account. conclusion so far, the concept has merit.