tag:blogger.com,1999:blog-4490468598422095060.post7887628118916567472..comments2024-03-17T07:55:12.096-07:00Comments on FOFOA: Gold as a FOREX CurrencyFOFOAhttp://www.blogger.com/profile/17152544684132776239noreply@blogger.comBlogger579125tag:blogger.com,1999:blog-4490468598422095060.post-49870482744767743832013-11-13T04:30:26.454-08:002013-11-13T04:30:26.454-08:00This is an awesome post on FOREX as well as curren...This is an awesome post on FOREX as well as currency. Thanks for the information mate.<br /><br /><a href="http://www.epicresearch.co/currency" rel="nofollow">Currency Trading Tips</a>Ruchi Agrawalhttps://www.blogger.com/profile/17815393718686621563noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-80398588813963640082013-11-13T02:07:07.969-08:002013-11-13T02:07:07.969-08:00Nice blog.. I love forex, i'm here for this.Nice blog.. I love <a href="http://forexonline24h.com/etoro-miglior-piattaforma-forex-deposito-minimo/" rel="nofollow">forex</a>, i'm here for this.Mr. Nicotinahttps://www.blogger.com/profile/10659921882505558894noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-50937292307537649072013-11-11T23:59:24.628-08:002013-11-11T23:59:24.628-08:00I'm not so tolerant of breaking a response int...I'm not so tolerant of breaking a response into seven comments, so my response here http://goldchat.blogspot.com.au/2013/11/more-on-bullion-bank-reserves-delta.htmlBron Sucheckihttps://www.blogger.com/profile/00530576934994289879noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-21625861940193545602013-11-09T01:19:33.837-08:002013-11-09T01:19:33.837-08:00Get cash back on all the forex trades that you do,...Get cash back on all the forex trades that you do, win or lose. Check it on:<br />http://bit.ly/WBTSZIUnknownhttps://www.blogger.com/profile/07948909263804020237noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-19425614338070250062013-11-07T23:16:51.292-08:002013-11-07T23:16:51.292-08:007/7
I must admit, I don't envy you gold selle...7/7<br /><br />I must admit, I don't envy you gold sellers right now. I mean, think about this: If you completely discount Freegold, is there any reasonable argument for gold right now? There was, of course, a good argument at the turn of the century, and all during the commodity bull run from 2001 – 2011, but what's your rationale right now? I know that every gold bug has one, and FOFOAhttps://www.blogger.com/profile/17152544684132776239noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-65049087027522156742013-11-07T23:14:25.755-08:002013-11-07T23:14:25.755-08:006/7
Then, once those reserves cease being "e...6/7<br /><br />Then, once those reserves cease being "excess", just reverse the steps. Simple is as simple does. Before GLD, there was a storage cost associated with sitting on excess reserves, but the banks had no choice but to eat that cost. After GLD, there was not only a way to get someone else to carry that storage expense, but now there was also an opportunity cost in addition FOFOAhttps://www.blogger.com/profile/17152544684132776239noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-70163528805898668632013-11-07T23:13:52.498-08:002013-11-07T23:13:52.498-08:005/7
I'm not arguing that there was a plan, co...5/7<br /><br />I'm not arguing that there was a plan, conspiracy or even premeditation by the bullion banks. Maybe there was, but that's not what I'm arguing. This function (coat-check room) is just the way it naturally turned out. The coat-check room view <i><b>only</b></i> applies to GLD, and not to <i>any</i> other ETFs, gold or otherwise. It's not an ETF thing, it's FOFOAhttps://www.blogger.com/profile/17152544684132776239noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-35964367261248886712013-11-07T23:12:47.911-08:002013-11-07T23:12:47.911-08:004/7
Here's a little more on Delta-1 in case y...4/7<br /><br />Here's a little more on Delta-1 in case you're interested (my emphasis):<br /><br /><i><a href="http://ftalphaville.ft.com/blog/2011/04/11/541181/delta-one-the-special-ops-of-equity-trading/" rel="nofollow">Delta one: the special ops of equity trading</a> <br />Izabella Kaminska Apr 11 2011<br /><br />"FT Alphaville moderated a panel on “The rise and rise of Delta FOFOAhttps://www.blogger.com/profile/17152544684132776239noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-78346288797619179492013-11-07T23:12:12.125-08:002013-11-07T23:12:12.125-08:003/7
As it turned out, just four months later, onc...3/7<br /><br />As it turned out, just four months later, once the LBMA survey was released in August, the higher estimate of $224 billion was even short of the mark. The survey reported $240B per day, with paper gold eclipsing even the daily turnover of US Treasuries as per the WGC's "Chart 11", in both "percentage of outstanding" <i>and</i> nominal (dollar amount) terms.FOFOAhttps://www.blogger.com/profile/17152544684132776239noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-13969411233368255072013-11-07T23:11:26.107-08:002013-11-07T23:11:26.107-08:002/7
I'm sure you'll dismiss or at least d...2/7<br /><br />I'm sure you'll dismiss or at least dispute this notion as well, but just think about it. It makes perfect sense, even if it doesn't fit into your limited view of the gold market from your little corner that happens to be mostly physical. Why would the reserves of 30+ non-custodial bullion banks be held in allocated storage in the 6 clearing members' vaults? TheyFOFOAhttps://www.blogger.com/profile/17152544684132776239noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-4410064735645066222013-11-07T23:10:02.039-08:002013-11-07T23:10:02.039-08:00Hello Bron,
From the BB point of view, the slack ...Hello Bron,<br /><br />From the BB point of view, the slack in the flow <i>is</i> their reserves. You're talking stock versus flow, well, in essence, the differential between incoming and outgoing physical flow is, and always has been, their physical reserves. You can call the slack in the flow their "stock" if you want to, but if there's more flow coming in than going out, FOFOAhttps://www.blogger.com/profile/17152544684132776239noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-15978292356569621352013-11-07T02:04:43.276-08:002013-11-07T02:04:43.276-08:00Yes.
DP said:
*In fact, I am over-simplifying fo...Yes.<br /><br />DP said:<br /><br /><i>*<b>In fact, I am over-simplifying for the sake of clarity.</b> I didn't bother to cover the GLD shares being themselves fractionally reserved and irredeemable. ;D (You cannot take direct ownership, they are held in street name only. <b>You own an unallocated claim to a GLD share</b>, which you cannot get allocated/delivered anyway. <b>The BBs already Peterhttps://www.blogger.com/profile/14462392045836817708noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-45284962221727607662013-11-07T00:57:39.684-08:002013-11-07T00:57:39.684-08:00Good morning, Bron. :-)
"So you're sayin...Good morning, Bron. :-)<br /><br /><i>"So you're saying <b>collectively the BBs</b> went <b>naked</b> short 2000t of ETF gold?"</i><br /><br />No.<br /><br /><i>So they "sell the GLD shares off"... <b>knowing that the new "share owner" can only sell</b></i> [i.e.: for cash]<i>, not access that gold in the Trust.</i><br /><br />[…]<br /><br /><i>knows <b>they</b> DPhttps://www.blogger.com/profile/01965423353442076871noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-89371909614647102542013-11-06T19:01:19.447-08:002013-11-06T19:01:19.447-08:00"the reason the whole concept was dreamed up ..."the reason the whole concept was dreamed up by others in the first place? Just because you didn't realise during the process WHY you were being asked to do something"<br /><br />Who exactly are the "others" and who are those "being asked". I think you have constructed some creation myth for ETFs when the reality is far more boring. Coatcheck is an OK theory Bron Sucheckihttps://www.blogger.com/profile/00530576934994289879noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-60382229248452460962013-11-06T19:00:30.528-08:002013-11-06T19:00:30.528-08:00"BB has excess gold in reserves behind their ..."BB has excess gold in reserves behind their fractional book - a dead asset to them."<br /><br />Yep fine.<br /><br />"They check it into GLD for baskets of shares. So far, no cash... and the GLD shares will in fact deplete in value over time (thanks to that sweet design work from the elves)."<br /><br />Fine, they now hold GLD shares rather than physical on their metals Bron Sucheckihttps://www.blogger.com/profile/00530576934994289879noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-72256877032090477942013-11-06T14:27:57.662-08:002013-11-06T14:27:57.662-08:00BB has excess gold in reserves behind their fracti...BB has excess gold in reserves behind their fractional book - a dead asset to them.<br /><br />They check it into GLD for baskets of shares. So far, no cash... and the GLD shares will in fact deplete in value over time (thanks to that sweet design work from the elves).<br /><br />So they "sell the GLD shares off"... knowing that the new "share owner" can only sell, not access DPhttps://www.blogger.com/profile/01965423353442076871noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-92046914502772220512013-11-06T14:27:42.465-08:002013-11-06T14:27:42.465-08:00First, a concession:
"So the above is an ope...First, a concession:<br /><br /><i>"So the above is an open thought process where I'll now agree coat checking is possible."</i><br /><br />Then it's right back to LaLaLand:<br /><br /><i>"First, having being involved in discussions with the WGC and others in the early days of the creation of the ETFs, this was not the main rationale or driver of the project IMO."</i><DPhttps://www.blogger.com/profile/01965423353442076871noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-52420834577749409882013-11-06T10:27:19.683-08:002013-11-06T10:27:19.683-08:00One comment about dollar bidding for real estate.
...One comment about dollar bidding for real estate.<br />I have made several unsuccessful "competitive" offers for real estate over the past 2 months in Bay area, California. All unsuccessful.<br /><br />Yesterday made an offer of $860K for a house listed at $849K. The seller took an all cash offer which I believe was lower than ours. Talking to my agent, she has been involved with all Bijuhttps://www.blogger.com/profile/02244761585623384771noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-86113854054683074402013-11-06T10:26:31.788-08:002013-11-06T10:26:31.788-08:00One comment about dollar bidding for real estate.
...One comment about dollar bidding for real estate.<br />I have made several unsuccessful "competitive" offers for real estate over the past 2 months in Bay area, California. All unsuccessful.<br /><br />Yesterday made an offer of $860K for a house listed at $849K. The seller took an all cash offer which I believe was lower than ours. Talking to my agent, she has been involved with all Bijuhttps://www.blogger.com/profile/02244761585623384771noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-34394083818434700532013-11-06T07:30:27.957-08:002013-11-06T07:30:27.957-08:00This comment has been removed by the author.Indenturehttps://www.blogger.com/profile/01765884399143814933noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-56084640707253196892013-11-06T06:44:17.937-08:002013-11-06T06:44:17.937-08:00"If you are lucky enogh to have Children, it ..."If you are lucky enogh to have Children, it does you still a lot of good, doesn't it?"<br /><br />Exactly.<br /><br />Look, if you believe FG is coming at some point, all you need to do to front run it is buy phyz gold. <br />Buy as much as you understand and then forget about it. <br />From that point forward who gives a shit what you do with any of your money big or small. If youTommy2Tonehttps://www.blogger.com/profile/16133943613008149092noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-69911800945933628712013-11-06T01:53:42.892-08:002013-11-06T01:53:42.892-08:00Robert:" ....Even if Freegold comes to pass, ...Robert:" ....Even if Freegold comes to pass, even if it is inevitable, it doesn't do you any good if it happens the day after you die....."<br /><br />If you are lucky enogh to have Children, it does you still a lot of good, doesn't it?frankthetankhttps://www.blogger.com/profile/14522218888657695069noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-6680924199826966752013-11-06T00:39:16.306-08:002013-11-06T00:39:16.306-08:00@Michael dV:
»… it can't move up or down much...@Michael dV:<br /><br />»… it can't move up or down much from here …«<br />Thanks for this reminder.ein andererhttps://www.blogger.com/profile/05367903882758611707noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-47847571532685192072013-11-06T00:37:29.449-08:002013-11-06T00:37:29.449-08:00Got a response up here http://goldchat.blogspot.co...Got a response up here http://goldchat.blogspot.com.au/2013/11/fofoa-more-on-lbma-survey-and-coatcheck.html Cliff notes:<br /><br />FOFOA: "It is well known that banks use delta hedges or complex derivatives based on correlated assets and currencies in these high-volume markets, which provides a reasonable explanation for how and why "paper gold" could have expanded so much in one Bron Sucheckihttps://www.blogger.com/profile/00530576934994289879noreply@blogger.comtag:blogger.com,1999:blog-4490468598422095060.post-35215697274109610142013-11-06T00:22:53.763-08:002013-11-06T00:22:53.763-08:00@jojo,
it’s always possible that someone reads th...@jojo,<br /><br />it’s always possible that someone reads this blog—and does not understand. Understanding is not only a function of reading but also a function of intelligence and background knowledge (and of language skills if he/she is a foreigner). <br /><br />BTW: <i>Everybody</i>is buying gold »as much as he understands«, right? There does not seem to be any need for stressing the obvious.<ein andererhttps://www.blogger.com/profile/05367903882758611707noreply@blogger.com