Comex showdown tomorrow (Wed 11-25)

Today's the buying opportunity that I had mentioned as you see the silver and gold taking a pretty big hit. The DXY dollar is also hitting a substantial low which in a normal circumstance would be rocket fuel for the metals. Hmmm...
 
A snip from an KWN article today:

The bullion banks are using today’s orchestrated takedown in gold to cover shorts.
November 27 (King World News) – KWN warned global readers three days ago that the bullion banks would take the price of gold below the 200 day moving average ($1,798) in order to trigger sell stops and create additional technical selling. Today we are seeing that expected takedown in the gold market as the price of gold has already tumbled $33 to $1,773 (see chart below).
 
The point of this futures market is to hedge against price changes that potential mean a bigger cost of a planned trade.
That's problematic since traders want to be sure of a price to pay and to get.
So most of those futures contracts, aren't delivered in the underlying (here silver) but in dollars.
Those contracts, are the hedge "mirrors" of physical trades. The latter is delivered in the commodity, the former in dollars.
Ex some1 needs to buy 5000 ounces and pay a price 5000 x 20 = 100000.
But between that wish/order and delivery, the chance is there that the price increases to for ex $21, meaning he would have to pay 105000. In order to be sure of the price, the buyer takes 1 long futures position. And the seller takes 1 short futures position.
If the price would rise to $21, the futures positions account of the buyer will have accumulated 5000 dollars.
And the one of the seller will have lost 5000 dollars.
So the buyer will pay $105000 but his expense will have been $105000 - 5000 = the intended $100000.
And the seller will receive $105000 but will lose the windfall $5000 and receive the intended $100000.
The ounces represented by the futures positions, are just irrelevant, it's all bout the compensating dollars.
 
I do find it interesting that the very next morning of the open stock market after the Comex contracts expired that silver and gold gets smashed down to its lowest in 6 months (for gold). I have a hard time believing that's just a coincidence, but I suppose it could be.
 
If it was about silver then why did the silver price drop on the charts track the gold price drop so closely? The gold price doesn't track silver, it looks like the silver price drop had something to do with gold, not the Comex silver issue.
 
Or the opposite, gold price tracking silver price.
Also in inverse, due to silver to gold swaps.
Both gold and silver metal is used to save value, for same reasons. Only that some use stupid high price purchases in silver market to "ride" the uptrend, to then swap silver for more gold, and that central banks don't hesitate to buy golds price higher when speculators swap fiat to gold, and sell it lower when speculators swap back to fiat.
 
JayTeeStackin said:
I do find it interesting that the very next morning of the open stock market after the Comex contracts expired that silver and gold gets smashed down to its lowest in 6 months (for gold). I have a hard time believing that's just a coincidence, but I suppose it could be.
Click to expand...
nope, just waiting for a drop to buy some
while the temperature hit 50 C
 
The market is now playing with bitcoin and tesla. We'll need to wait for some market correction for the interest to come back. The question is if the stock market plunges, will silver follow and melt just like it did in March? Buy for fun is ok.
 
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JayTeeStackin said:
I do find it interesting that the very next morning of the open stock market after the Comex contracts expired that silver and gold gets smashed down to its lowest in 6 months (for gold). I have a hard time believing that's just a coincidence, but I suppose it could be.
Click to expand...

You need to read up on the mechanics of futures market and how it works.

It is not a coincidence, it is how a futures market work, next contract expiry price can go up or down again.

Near contract expiry volatility increases because there are people who need to buy and people who need to sell

If you don't know how spot price moves in relation to a futures market, you are just guessing and being taken for ride by clickbait article or vids.
 
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sgbuyer said:
The market is now playing with bitcoin and tesla. We'll need to wait for some market correction for the interest to come back. The question is if the stock market plunges, will silver follow and melt just like it did in March? Buy for fun is ok.
Click to expand...
Look at what prices of houses, cars, hamburgers do.
If they do nothing then any trend will be undone since it's profit, for a buyer or for a seller.
 
Pirocco said:
Look at what prices of houses, cars, hamburgers do.
If they do nothing then any trend will be undone since it's profit, for a buyer or for a seller.
Click to expand...

Are you talking about inflation? If so, housing prices have risen slightly on my locale. Food is more expensive than before the pandemic as it is everywhere in the world.
 
sgbuyer said:
Are you talking about inflation? If so, housing prices have risen slightly on my locale. Food is more expensive than before the pandemic as it is everywhere in the world.
Click to expand...
Ex, compare golds price around 2000 with its price now.
Compare a house price around 2000 with its price now.
That kinda comparison.
 
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