I see it as a clear attempt to further dilute the price of gold and divert physical delivery. Peeling of the buyers of bullion for another manipulated market does not serve the public’s best interests.
That's how I see it as well. Like I said in the article, I'm concerned that it will divert demand away from physical gold bullion into more "paper" gold.
To add, physical delivery requires the payment of humans with brain cells to shepherd the process along. That's as an unnecessary expense. Then, you cut the contract size to increase volume of contracts. Voila! Another successful product in the CME portfolio!
No. I was at the CBOT in the financials. I had a perch overlooking the Five Year Treasury pit. I was part of an arbitrage team that was executing Euro Dollar futures at the CME across the Loop.
So now there are not enough " suckers" that can afford a " Bet" on a 100 oz ..geared gold paper con tract and the mini 10 oz So now they OPEN the casino to the joe sixpack to bet his rent doe on the friday, only to wake up sunday night getting ambushed in a 10 x geared con game.
THIS tells me, that the pyramid is collapsing..very soon, and that why they Neeeed a war to cover up the con of the century and..of course..the same ..experts..will be in charge of..creating the next " honest" system....a.k.a bitcon...trust the blockchain....religion.
Take a look at what they do in Europe with Contracts for Difference (CFDs). Anybody can open an account and trade single shares of any stock on leverage.
If this futures contract takes off, it could erode premiums on small bullion products and thus their profit margins. I'm curious to see if this contract will be successful.
I can’t help but wonder if this isn’t intended to: increase the amount of paper gold, reinforcing a failing bankster paper Ponzi scheme; and preemptively divert what would have been a future retail stampede into gold/physical metals by the deplorable masses. This is probably too conspiratorial, but still…
As you point out, if one could stand for delivery, it would be an entirely different affair.
In my mind, best case scenario is CME is disinterested in the physical vs. cash settlement discussion. They just want the per contract fee revenue.
My more conspiratorial self thinks they have a vested interest in perpetuating the financialization ponzi for as long as they can. Oh, and did I mention per contract fee revenue! 😁
Thanks for this article. Due to the CME move, have Bullion Gold ETF (backed by physical gold) more potential as investors may want to hold physical gold? Or is it negative for all Gold ETF? You are very bullish long term with very high targets (15k). Many experts think that gold won't go beyond 3,000 by the end of 2025. What is your short term view looking at the horendous weekly close? Thanks a lot !
I see it as a clear attempt to further dilute the price of gold and divert physical delivery. Peeling of the buyers of bullion for another manipulated market does not serve the public’s best interests.
That's how I see it as well. Like I said in the article, I'm concerned that it will divert demand away from physical gold bullion into more "paper" gold.
To add, physical delivery requires the payment of humans with brain cells to shepherd the process along. That's as an unnecessary expense. Then, you cut the contract size to increase volume of contracts. Voila! Another successful product in the CME portfolio!
That's exactly it. I can't say I blame CME. I just wish it were physically settled.
As a guy who got his start down on the floor way back when there was such a thing, I couldn't agree more. (Shakes fist at sky.)
Oh, cool! I always wanted to work on the trading floor, but by the time I graduated college, it was already in the process of shutting down.
I have another subscriber who is a floor trading veteran.
Were you a gold trader?
No. I was at the CBOT in the financials. I had a perch overlooking the Five Year Treasury pit. I was part of an arbitrage team that was executing Euro Dollar futures at the CME across the Loop.
Wonderful. That's priceless market experience that can never be replicated today. I feel cheated! :)
So now there are not enough " suckers" that can afford a " Bet" on a 100 oz ..geared gold paper con tract and the mini 10 oz So now they OPEN the casino to the joe sixpack to bet his rent doe on the friday, only to wake up sunday night getting ambushed in a 10 x geared con game.
THIS tells me, that the pyramid is collapsing..very soon, and that why they Neeeed a war to cover up the con of the century and..of course..the same ..experts..will be in charge of..creating the next " honest" system....a.k.a bitcon...trust the blockchain....religion.
Bingo. Welcome to the age of financialization!
Take a look at what they do in Europe with Contracts for Difference (CFDs). Anybody can open an account and trade single shares of any stock on leverage.
The benevolence of the CME group knows no bounds! Cash settled nano derivatives almost in time for that person on your list that has everything! 😁
Seriously!😅
Could this also harm bullion dealers who service the retail market?
If this futures contract takes off, it could erode premiums on small bullion products and thus their profit margins. I'm curious to see if this contract will be successful.
I can’t help but wonder if this isn’t intended to: increase the amount of paper gold, reinforcing a failing bankster paper Ponzi scheme; and preemptively divert what would have been a future retail stampede into gold/physical metals by the deplorable masses. This is probably too conspiratorial, but still…
As you point out, if one could stand for delivery, it would be an entirely different affair.
In my mind, best case scenario is CME is disinterested in the physical vs. cash settlement discussion. They just want the per contract fee revenue.
My more conspiratorial self thinks they have a vested interest in perpetuating the financialization ponzi for as long as they can. Oh, and did I mention per contract fee revenue! 😁
Thanks for this article. Due to the CME move, have Bullion Gold ETF (backed by physical gold) more potential as investors may want to hold physical gold? Or is it negative for all Gold ETF? You are very bullish long term with very high targets (15k). Many experts think that gold won't go beyond 3,000 by the end of 2025. What is your short term view looking at the horendous weekly close? Thanks a lot !
I personally view any physically backed product as more valuable than a non-physically backed product without a doubt.
Yes, I see gold hitting $15,000+ in the coming global financial reset. I don't necessarily see that happening in 2025 though.
In my view, gold didn't have a horrendous weekly close. It's just consolidating as I'll explain in an update tomorrow.