Silver being accumulated by a whale

[Branman1986]

You would have to have an investment company do it on your behalf and have a plan to take ownership.  If you didnt, you're probably right and they'd force you to settle financially.

[sixgun]

2 minutes ago, Branman1986 said:

You would have to have an investment company do it on your behalf and have a plan to take ownership.  If you didnt, you're probably right and they'd force you to settle financially.

Why would i have to have an investment company? If i had a fully funded account and was long 10 000 contracts - (50 000 000 ounces) - i am certain i would not get the silver delivered. 

[Branman1986]

I mean you would have your money in an investment brokerage and use those funds via that company.  If you bought that much, and you had the means to physically take delivery, they would 100% fulfill your position with a physical delivery.  You would cause the prompt month to skyrocket and go out of contango, but they would either deliver or some counterparties would beg you to book out.

 

Edit:. You would also have to have the cash or leverage to pay the $800,000,000.  But this argument is ad absurdum.

[sixgun]

i put in a big number of contracts to see what you would say. They would not deliver. 

[Bumble]

As of today, Comex/Nymex are reporting slightly over 300 million ounces of silver in their warehouses. Of this, JPM owns about half. If you had the means to purchase 50 million ounces, that would certainly be a lot - more than Brink's currently own at Comex - but I don't see how you would be prevented from removing the silver if it is yours. Unlike the LBMA, this is allocated metal: it is not in a pool owned by the exchange itself.

[Abyss]

@Branman1986 regardless what says on the CME website https://www.cmegroup.com/education/courses/introduction-to-precious-metals/what-is-the-precious-metals-delivery-process.html future contracts in Gold/Silver settled in paper. You need seat on the exchange want to take physical delivery. Buying future contracts then going through a broker and ever broker regardless what traded (sugar/coffee/gold/silver/oil/wheat) settled in paper.

Majority contracts always settled in paper and exchange has right to settle in paper on any physical delivery demands.

[Branman1986]

Disagree, I traded commodities though brokers and produced and bought physical all the time, just not precious metals.

[sixgun]

1 minute ago, Branman1986 said:

Disagree, I traded commodities though brokers and produced and bought physical all the time, just not precious metals.

You got it.

[Branman1986]

Massive facepalm

[Martlet]

On 18/07/2019 at 20:32, vand said:

 

This is a genuine question.. I'm not trolling.. then why don't silver investors simply buy futures contracts or mini-contracts and wait for settlement to acquire their physical at essentially spot price, instead of paying a premium via the silver dealers?

 

They do - that's why there's so much trading in the paper market.