End of paper PM markets?

[IdahoCopper]

https://www.zerohedge.com/commodities/e ... er-markets

This article looks at the likely consequences of the Bank for International Settlements’ introduction of the net stable funding requirement (NSFR) for bank balance sheets, insofar as they apply to their positions in gold, silver and other commodity markets.

If they are introduced as proposed, banks will face significant financing penalties for taking trading positions in derivatives. The problem is particularly important for the London gold market, as described in last week’s article on this subject. Therefore they are likely to withdraw from providing derivative liquidity and associated services.


This technical article makes a case for a significant run up in PM prices beginning in late June.

[Cu Penny Hoarder]

If PM prices keep climbing higher and silver keeps flying off the shelf and out of the COMEX, the Fed is going to get desperate and start raising interest rates. They'll even sacrifice the stock market to kill the PM prices.

[Recyclersteve]

How could you really END the paper markets? If you made it illegal (a la liquor during the Prohibition era), don’t you think people would still want to find away to short it? Of course you could also trade options on the GLD and SLV exchange traded funds. It is just hard for me to really understand how this would occur.