Gold and Greece

Discussion in 'Gold' started by Peter, Jun 27, 2015.

  1. hyphenated

    hyphenated Active Member

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    I normally treat anything from Zero Hedge with skepticism, but they are accusing Citibank of taking a massively increased Silver derivative position and JPM of doing the same in Gold. If they are being given a Fed line of credit to 'stabilise' PM prices this might explain why Gold has actually retreated; unless the Kool-Aid is on special. US$4 trillion in derivatives sounds like a modest punt...

    http://forums.silverstackers.com/to...d-the-precious-metals-derivatives-market.html

    http://www.zerohedge.com/news/2015-...ous-metals-derivative-exposure-just-soar-1260
     
  2. SpacePete

    SpacePete Well-Known Member Silver Stacker

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    That's a very interesting and plausible theory!

    Panic in the PM markets could cause mayhem globally.
     
  3. SpacePete

    SpacePete Well-Known Member Silver Stacker

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    And what happens when the Greek saga is over. What do they do with the positions?
     
  4. tolly_67

    tolly_67 Well-Known Member

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    The Fed has much interest in P.M's as I do in washing the dishes.
    Banks are only interested in short term profits and not controlling the world or aiding in the propping of a metal that governments are not interested in.
     
  5. SilverDJ

    SilverDJ Well-Known Member

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    So is there any tally available of the vote count so we can follow the fun live?
     
  6. bubblebobble2

    bubblebobble2 Administrator Staff Member Silver Stacker

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  7. Peter

    Peter Well-Known Member

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    If such terrible things as described above would happen if greece defaulted, then they won't have to default.
    A compromise will be arranged.
    The bankers would do anything to prevent a default.
     
  8. bubblebobble2

    bubblebobble2 Administrator Staff Member Silver Stacker

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  9. SilverDJ

    SilverDJ Well-Known Member

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    You mean just like we were back in Feb this year? :rolleyes:
     
  10. Slam

    Slam Well-Known Member Silver Stacker

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    Technically they have defaulted, as they have past their deadlines for repaying the next repayment.

    Wouldn't this mean that the derivatives contracts start to get exercised because of the default? or does someone have to come out formally and announce a default officially before it can be deemed a default?

    This is hilarious, so what constitutes the definition of a default?

    Shouldn't we be expecting some wild swings in the markets now and literally positions being wound up / down based on all these contracts out there.

    Slam
     
  11. Porcello

    Porcello New Member

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    Yes, someone has to formally call the default and ask for immediate payment. Apparently the ECB asked the creditor countries not to do so for the time being, and until then Greece is not officially in default (only late with payments).
     
  12. Peter

    Peter Well-Known Member

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    Newcrest rose 2.5%
     
  13. tolly_67

    tolly_67 Well-Known Member

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    It will be derivatives in all markets that will come into play, not just the Credit Default Swap carnage that will be a part of the mess. It will be a negative feedback loop as panic will prompt investors to exit positions in anticipation of the fall which then creates the reality of the fall. ( It is the complete opposite as to the real estate market in Melbourne. Home owners buy now in anticipation of avoiding higher prices next year. Thus the demand creates the rise. One is based on confidence and the other on fear. Two sides of the same coin.)
     
  14. SmartyFarty

    SmartyFarty Member

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    Makes me angry that the AUD keeps tanking.

    Destroying my cash saving's and income's real purchasing power.

    There is so much downside risk in equities at the moment.

    The money has to go somewhere. I would of expected gold to rally ...

    No third party risk
     
  15. tolly_67

    tolly_67 Well-Known Member

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    expect to see 60's or 50's before seeing 80's for the Aussie dollar.
     
  16. House

    House Well-Known Member Silver Stacker

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    CNBC headline "Fail: Gold can't even rally on a currency crisis".

    They have a point.
     
  17. bubblebobble2

    bubblebobble2 Administrator Staff Member Silver Stacker

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    Gold can't rally because of US FED interest rise
     
  18. hyphenated

    hyphenated Active Member

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    No dispute there. However, it is not too hard to imagine that the greatest potential inflationary events in history - the creation of trillions of fiat dollars pumped into the US and thus World economy are a little less obviously 'bad' if the gold and silver derivative markets are pinned to the dial. Similarly, if you as a bank are given a supertanker load of cash to nail the paper markets and accumulate 'real' PMs that's a tasty treat. Manipulation? More like paving it all over. Control both sides of the derivative market and it's like being a casino able to pick the empty numbers on the roulette table. The only potential positive, if you are a punter, is stack the real stuff, which is pretty much what we do anyway. But don't expect any sudden ramping on a crisis. Crisis? What crisis? Gold is flat... :|
     
  19. Peter

    Peter Well-Known Member

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    I think gold is the horror of bankers and currency manipulaters , politicians.
    What if it was used to fix currency again.
    You couldn't manipulate currency !

    I think it has a special place in the battle, and the battle isn't over yet.
     
  20. Silverthorn

    Silverthorn Well-Known Member

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    Not really. The euro is a much bigger beast than Greece.
     

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