0 Members and 1 Guest are viewing this topic.
Quote from: yellowecho on August 16, 2014, 08:08:35 pmBecause a continuously adjusted price would infer a free market where banks could be held responsible for their naked short positions. A midday fix gives them a last minute chance to swing the price in their favor.The precious metals ETFs are traded using fractional reserves just like fiat. If the price was adjusted continuously via free market based on physical allocation it would be substantially higher and face an enormous squeeze.http://d1w116sruyx1mf.cloudfront.net/ee-assets/channels/article_default/SilverInventoriesAreMostlyHeldinETFs.pnghttp://d1w116sruyx1mf.cloudfront.net/ee-assets/channels/article_default/SilverFuturesTradingVolumeinChinaHasExploded.png That damned fix...Have we ever thought that they might fix the price to encourage growth of sectors where silver usage is high? Like in the Tech industry? Not that I agree with that line of thinking...of course
Because a continuously adjusted price would infer a free market where banks could be held responsible for their naked short positions. A midday fix gives them a last minute chance to swing the price in their favor.The precious metals ETFs are traded using fractional reserves just like fiat. If the price was adjusted continuously via free market based on physical allocation it would be substantially higher and face an enormous squeeze.http://d1w116sruyx1mf.cloudfront.net/ee-assets/channels/article_default/SilverInventoriesAreMostlyHeldinETFs.pnghttp://d1w116sruyx1mf.cloudfront.net/ee-assets/channels/article_default/SilverFuturesTradingVolumeinChinaHasExploded.png