Loading ...Re Swaps
I would argue the swaps do indeed satisfy real far eastern demand, which u could/can see when the London morning mkt is strong, as it was earlier this year. Later in the day u get the Crimex dumping that caps/knocks prices down.
That Crimex selling can go on forever, as I believe the positions are swapped out to LBMA forwards…ie the scum Crimex sell Dec contracts, then later buys the Dec contracts back and sells LBMA forwards simultaneously…those LBMA fwds then sit forever on the Scum/Dealer books and are not margined.
Why sell Crimex, when they cud just sell LBMA fwds…Crimex is v public…easy to see and therefore the selling is very scary to longs.
Where I see their great weakness is the ridiculous heights they are sending the Worlds SM’s to, how low they are pushing Bond rates and how relatively low they have held PM’s. The SM has to be riddled with crowded trades, especially short volatility ones…at some point the SM will crater, the CB’s will not be able to help, as rates are still @ zero…all they can do is print…which will blow up the bond mkts and PM’s will go ape….plus of course we will find out there is no metal in all the ETF’s.