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Goldmoney/Alasdair Macleod/7-7-2020
“Bullion banks are between a rock and a hard place. For years they’ve been playing the hedge funds as an angler hooks and plays a fish. That game has ceased and there is no easy way for them to get level. For the moment they are trying to put a lid on the price, but the cost has been rising open interest, and therefore rising mark-to-market positions. The August active contract runs off the board at the end of this month and bullion banks are likely to be forced into large delivery volumes again. Furthermore, the exchange for delivery arbitrage facility between Comex and the LBMA is broken, allowing Comex premiums to London spot to go unchallenged.”
USGOLD note: Conclusion similar to what we posted yesterday with the Bloomberg article on increased delivery commitments in silver and platinum as well ……… Macleod fills in the blanks providing important details.