by Bix Weir, Road To Roota:
Ok, more info is coming out about the NEW silver fixing mechanism. This is from an article in Money Morning… Here’s What the New Silver Price Fix Means for Prices – Here’s how the new procedure will operate…
The New Silver Pricing Mechanism: At midday (London time), an electronic auction will take place on a trading platform provided by CME Group Inc. Members will begin a bidding process at a price based off quoted rates for silver across the market.
Members will process buy and sell volumes at the initial seed price for 30 seconds. If after that auction buy and sell volumes are in tolerance, that is, if they are within 300,000 ounces of each other, a new price will be set. If not, the auction will restart at a new price determined by an electronic algorithm. Auctions will continue to reset until the buy and sell orders are properly balanced at the prevailing price.
The list of members within the price discovery mechanism has yet to be formally announced, but the application deadline for participants clears today (Thursday). Rhona O’Connell, Head of Metals at Thomson Reuters GFMS, told Money Morning in an email that the initial members are largely from the banking sector, but there are hopes that “that may expand into industry as time goes on.”
What was that??? Does anybody know what the hell they just described??? Where are bidders BUYING physical silver for delivery and where are the sellers DELIVERING that metal???
This isn’t a market pricing mechanism for silver at all…AGAIN!!
How hard is it to set up a market that has legit physical silver buyers wanting to take home metal and legit physical silver sellers wanting to sell and deliver metal???
And don’t you love this line… “Thomson Reuters GFMS, told Money Morning in an email that the initial members are largely from the banking sector, but there are hopes that “that may expand into industry as time goes on.”
Bahaha!!! It’s only Banksters bidding against Banksters again on a phantom electronic market!!!
But it shouldn’t matter to us because we are watching what happens to the silver derivative contracts that are still outstanding and are supposed to settle at the “Silver Fix”…which doesn’t exist anymore.
Hopefully, all the silver bugs out there will yell at the top of their lungs tomorrow morning when they announce the new “London Silver Price”….
THE FIX IS IN AGAIN!!!
WHERE IS THE PROMISED TRANSPARENCY???
WHERE IS THE PHYSICAL SILVER BEING EXCHANGED???
WHERE IS THE OVERSIGHT AND REGULATORS MAKING SURE EACH BID IS REAL AND EACH OFFER TO SELL HAS DELIVERABLE METAL…THAT WILL GET DELIVERED???
WHY IS IT SO HARD TO SET UP A PHYSICAL SILVER MARKET???
May the Road you choose be the Right Road.
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