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Thread: Comex Silver

  1. #1

    Question Comex Silver

    I am curious on how the comex reports silver and the meaning of it all. Eligible and ill eligible and how traders use that to see where prices are going. I see prices and premiums are way down over the last month or so.

    Can anyone explain to me how the comex works? I've been out of the silver game for a long time and now jumping back on board in a serious manner.

    I thank you in advance for any help.

  2. #2

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    If you want to see how Comex works, buy 100 oz bars or the huge 400 ozers that are available. Happy stacking
    "That's not money" - Ben Bernanke

  3. #3

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    I haven't looked at the details of this in a while, & this is off the top of my head, so take it with a grain of salt & double check what I say before taking any action.

    On Comex, you buy a contract. I think with gold it was 100ozt & with silver 5,000ozt. When the contract comes due, you either cash out, roll over to a new contract, or stand for delivery & demand to receive physical metal. Most brokerage houses can handle a cash out or a roll over. Few know how to get a warehouse receipt if you choose to stand for delivery. If getting actual physical metal is your game, then check that your broker knows how that part of the game works. Many don't.

    Comex had a blip during the pandemic. Off the top of my head, I think it might have been in March of 2020. They didn't have enough 100ozt comex bars for everyone who stood for delivery, so they brought in some 400ozt LBMA bars & issued theoretical 1/4 ownership in those. Since that one blip, they have delivered as usual, as far as I know. After the blip, the wording of the contracts was altered so that if it happens again, Comex is not so responsible for the problem.

    If you want to understand Comex trading, you need to learn how to read the Commitment Of Traders reports. That is where the rubber meets the road.
    “The Federal Reserve is not currently forecasting a recession.”
    Fed Chairman Ben Bernanke, January 2008
    This is no longer posted in the Fed Minutes of January 2008, but still quoted here - https://www.nbcnews.com/id/wbna22592939. The FOMC minutes still quote MR. Reifschneider. as stating the same thing.

  4. #4

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    Yes, that's right. The COT report. That's what I was trying to remember. Thank you. �� . Now off to learn about that.

  5. #5

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    I believe Comex uses 1,000 oz silver bars. They used smaller bars when there wasn't enough 1,000'ers available for delivery. Only a tiny percentage of contracts ever get turned into delivery of physical silver and more silver gets traded in a month than exists in physical form. Plus nobody is sure of if the reported paper silver held by Comex is not allocated to more than one "owner".

    If you don't hold it you don't own it.
    Do your own due diligence

    I stand united with my friends & family in Canada who seek freedom.

  6. #6

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    rehypothecated over and over.

  7. #7

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    I did a long post about this a while back, you can look it up. The bottom line is:

    It doesn't matter if there is or isn't silver on that "market" as most contacts are settled in cash and can in fact be forced to take cash in lieu of delivery. The futures market is largely for hedging risk. Think Tiffany Co, buying tons of silver from producers for delivery in six months. They can then buy shorts in the futures marketnot because they need more silver, but in case the price moves down and their inventory loses value.

    For a contact to exist you don't need silver, you just need two parties willing to exchange contacts. It is meant to buy off risk (or to speculate) not to buy actual metal.

  8. #8

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    the prices of physical are of course determinated by the moneymarketsharks and only gets free from their mongering when thdemand is strong enough to smash their mongering game.

    if one observes well the price evolution, prices always drop when there is a big moneymanipulation going to hit the financial system. Prices drop in order to scare people away from what they should do, i.e. buy the dip.

    On the other hand dips are nowadays very shallow, demand is too strong, those would-be dips make somebody yawn.

    Golditiki2+++

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