Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Seeker Closing Report: Gold and Silver Gain While Stocks Slip
By: Chris Mullen

China's Get the Gold Plan: Part II
By: David Smith

Do Not Feed The Bears - Until 2018
By: Avi Gilburt

Exclusive Interview (Part II): Alex Green on the Biggest Threat We Face
By: Frank Holmes

Gold Market Morning: August-23-2017: Gold and silver prices still marking time!
By: Julian D.W. Phillips

Global Financial Crisis 10 Years On: Gold rises 100% from $650 to $1,300
By: Jan Skoyles

Gold Seeker Closing Report: Gold Chops Lower While Stocks Rebound
By: Chris Mullen

Camino Intersects 96.5 Meters Grading 0.93% Copper At Adriana Zone And Expands Katty Oxide Zone
By: Camino Minerals Corporation

Ira Epstein's Metals Video 8 22 2017
By: Ira Epstein

Gold Stocks: Good Times Are Near
By: Stewart Thomson

 
Search

GoldSeek Web

 
Is China Intentionally Making It Harder To Manipulate Gold?


 -- Published: Tuesday, 16 May 2017 | Print  | Disqus 

By Rory Hall and Dave Kranzler

A new gold futures contract is being introduced by the Hong Kong Futures Exchange (two contracts actually). The two contracts will be physically settled $US and CNH (offshore renminbi) gold futures contracts. The key to this contract is that it requires physical settlement of the underlying gold, which is a 1 kilo gold bar.

The difference between this contract and the Comex gold futures contract is that Comex contract allows cash (dollar aka fiat currency) settlement. The Comex does not require physical settlement. In fact, there are provisions in the Comex contract that enable the short-side of the trade to settle in cash or GLD shares even if the long-side demands physical gold as settlement.

With the new HKEX contract, any entity that is long or short a contract on the day before the last trading day has to unwind their position if they have not demonstrated physical settlement capability.

The new contract also carries position limits. For the spot month, any one entity can not hold more than a 10,000 contract long/short position. In all other months, the limit is 20,000 contracts. A limit like this on the Comex would pre-empt the ability of the bullion banks to manipulate the price of gold using the fraudulent paper gold contracts printed by the Comex. It would also force a closer alignment between the open interest in Comex gold/silver contracts and the amount of gold/silver reported as available for delivery on the Comex.

To be sure, the contract specifications of the new HKEX contracts leave the door open to a limited degree of manipulation. But at the end of the day the physical settlement requirement and position limits greatly reduce the ability to conduct price control via naked contract shorting such as that permitted on the Comex and tacitly endorsed by the Commodity Futures Trading Commission.

You can read about the new HKEX contract here – HKEX Physically Settled Contract – and there’s a link at the bottom of that article with the preliminary term sheet.

Will this new contract help moderate the blatant price manipulation in the gold market by the western banking cartel? Maybe not on a stand-alone. But several developments occurring in the eastern hemisphere – as discussed in today’s episode of the Shadow of Truth – and among the emerging bloc of eastern super-powers will begin to close the window the ability of the west’s efforts to prevent the price of gold from transmitting the truth about the decline of the U.S. dollar’s reserve status and the rise of geopolitical instability:

http://thedailycoin.org/2017/05/16/china-intentionally-making-harder-manipulate-gold/

 


| Digg This Article
 -- Published: Tuesday, 16 May 2017 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.