PennyPauper wrote:"Traders Bet Silver Will Shine"
http://www.cnbc.com/id/100494923Word is getting out.
Love this idea. I'm also curious about how taxes would be paid on all these trades.
Do you play chess also? What is your end game?
Good luck in your project. Its been a good read so far.
yeh, good...i'm going to watch that in a sec. ONVIOUSLY, this is all make believe, based on yours truly having a liquid net worth of 300 mln USD.
and believe me if i DID have such liquidity, using these funds to stand for delievery of silver on Comex, would be a semi-prudent business decision.....i say "semi", because i "hear things"....i started this on Monday Feb 25, because that was 3 trading days before 1st Notice Day...and in that time, you might of noticed that open interest went from over 30,000 contracts to 2586 this morning....thats why i felt it wouldnt be phony, to be able to bid for 50 to a 100 lots of March silver, large spec's are getting OUT.....today, thursday?....with this fictional 1100 car position on?....my goodness, my phone would be ringing off the hook, everybody from exchange officials up and down the food chain...the house i would be clearing thru....ummm, probably entities that are still "short".....sold, and maybe or maybe not committed for delivery......who knows?
to put the whole in perspective, my 1100 car position, would represent not only almost HALF the remaining open interest, but also its 5.5 mln troy ounces, and at the avg price i bought them at.... $29...these 1100 cars, 5.5 mln ounces, would have a value of $160 mln dollars, which you better believe NUMEROUS functionarues would have me jumping thru hoops to either SHOW i had the funds....OR require me TODAY to deposit 160 mln USD in some escrow account...TODAY.
it would be a BIG DEAL...a lot of people wouldnt be that happy...consider this...remember in January, record sales of Silver Eagles, off the top of my head, i think it was 6.3 million 1oz Eagles went out the door...then they had to suspend sales...BECAUSE...they RAN OUT of planchets....and now some individual is demanding to be delievered 5,500 One thousand troy ounces bars....and not just ANY bars,because according to contract spec's....but official sanctioned "brands"
http://www.cmegroup.com/trading/metals/silver-brands.html.....and there's not a LOT of concerns that fab 1,000 toz "bars"...they're like 83 pounds plus....TIMES 5,500...so then i have add a couple of assayers, who are trustworthy, as well as a small team of attorneys, who i have to VET intensely...i wouldnt want any lawyers, who are with a firm, or have represented ANY of the major banking concerns...
here's "chapter 112" of the exchange's rulebook, on silver......three pages, an interesting read....see if you find the "wiggle room" in the rules.........
http://www.cmegroup.com/rulebook/NYMEX/1a/112.pdf......
what i think is that, silver is tight......which is real EASY analysis based on just the fact the Mint ran short in JAN!!...its not rocket science.....but i also know that in the past run up to 50, there were guys, mid level hedge funds, 300-500 mln cap, that were standing for delievery, and i read these guys were given communications that said, (basically) "we dont have the silver to deliver, if you could be so kind as to accept our offer of $50 CASH per toz, that would help us out a lot, and represents a cash offer thats about 8 dollars over settlement.....but if you decide to NOT to accept this generous offer, we might just default, and you will be an "unsecured creditor", LAST in line".
Now, this might or might not be true, i read of it, in two seperate places, so?....but i would assume i;d be getting similar letters and calls, from people who have battalions of lawyers....however, "threats", whether implicit or explicit, wouldn't have the desired effect on me, they would assume, which would be pliability, Threats would illicit a response OPPOSITE to "pliability".
my endgame would be to sell to the same firms that fab planchets to the mint,,,or to firms, that fabricate product for sale to high tech, just as long as i was trading those 1,000 toz "bars" at a PREMIUM, not at a discount....dribbling them out, not "dump
i dont play chess, but i understand game theory, which would be to "play" 6 to 10 moves forward.........i do believe that this all would be taxed as cap gains.....15%...or 20%, if it was raised in this last go around.