UPDATED – $4 Billion in A Minute – Is That The Best You Can Do?
$4 Billion in A Minute – Is That The Best You Can Do? by Rory – The Daily Coin
If it takes 30,000 contracts worth some $4.2 billion to move the market that is pretty lame. That is equal to 3 million ounces of paper gold, 187,500 pounds of imaginary gold or 93.75 tons of illusionary gold. That’s equal to about 10 days of mining supply based on 4,000 tons annual mine production. Someone was attempting to make a statement. The thing is, a few years ago this type of volume would have drove the market down $100 or more – today, barely $10. The game is no longer working.
As we approach the European close, the dolar index just spiked and precious metals (and crude) were pummeled. Gold futures tumbled on massive volume as over $4 billion notional was purged instantaneously…
Over 30,000 contracts ripped through gold futures – over $4.2 billion notional – in the space of a minute. That’s around 10% of a normal days’ volume. Source
What will happen when the CME Group unleashes futures contracts on bitcoin? Best be taking profits while they still exist.
As Chris Powell stated late Friday when he published Bloombergs comments about the “mysterious trader”. It’s really no mystery at all.
It seems that the central banks are no longer afraid of being seen keeping gold down — that their power has waned so much that they need to be seen to scare investors more. ~Chris Powell
Trades that moved about 4 million ounces of gold in a matter of minutes awakened the precious metal from its slumber.
After 11:10 a.m. on the Comex in New York almost 40,000 contracts, each representing 100 ounces of the metal, traded in a span of 10 minutes. That triggered a selloff, sending prices down as much as 1.1 percent. Source
That means, 250,000 pounds or 125 tons of illusions were shoved into the system in 10 minutes or less. Andrew Maguire is reporting the time line as being 17 minutes, however, the time line is not near as important as the fact they could only get a $10 dollar move and then everything stabilized. My guess is gold and silver will both move up beginning Sunday evening when China comes back to the market.
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