Loading ...In a sense the people that CREATED the buying and selling physical stuff thru ETFs or COMEX are the real scum. TPTB. People that don’t have any physical stuff to sell, should not be involved in the supply demand equation. They are simply “voting” the price up or down.
For example, try to imagine the Real Estate market on the COMEX. Or on the futures markets. Long ago the Uranium market was natural. As prices climbed, TPTB added Uranium to futures betting. I posted long ago….”Watch Uranium prices fall now” and they did.
So the actual physical PRODUCERS and actual physical CONSUMERS, of anything, with a slow steady stable stogy rate of production and consumption, are FORCED to hedge on the futures market to protect their needed supply and or demand PRICE to stay in business.
However, when prices get too high thru “betting on contract prices”, over production follows, and supply unfortunately or fortunately depending on the case, gets too big and prices collapse. Exactly opposite if prices get too low. You have to cut production.
Wouldn’t you love to be able to short that $5 million dollar house in a $500k neighborhood? Or go LONG on $100k house prices in a minority neighborhood? With 90% margin, 10% down.
The whole system is a game. Game of chance.