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  • Did the ECB Save COMEX from Gold Default? [View article]
    oh yeah?
    If you sell shorta couple gold futures or wheat futures or oil futures, I am 100% certain that you do NOT own the wheat, oil or gold that would be required to get delivered. So you are naked short the physical, make no mistake about that. Or, did you arrange for borrowing the stuff before? Sure you did, eh?
    Instead, you most probably close the position before physical settlement of the contracts or roll the position into future months. problem is, if many want to do this they might find not enough willing sellers of the stuff - at least not at the prices they had in mind. And 850 contracts in comex gold is a lot. I would suspect that they may have rolled them many times but finally had to give in

    thanks to the author for spotting these highly interesting developments that otherwise would have escaped me. keep it up!

    On Apr 03 02:15 AM User 387972 wrote:

    > There is no such thing as 'naked short' in the futures market ! You
    > get it! I am a futures trader. This guy is just blowing hot air.
    Apr 03 03:39 am |Rating: +3 -2 |Link to Comment
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