OTCPK:KRCLF - Post by User
Post by
MaterialsManon Jun 16, 2023 8:10am
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Post# 35499729
Trading the gold market
Trading the gold marketKnowing that the paper market dwarfs the physical market when it comes to precious metals, I've always been curious as to how the high frequency traders make their profits when speculating, especially in gold.
Naturally the same principles would apply to the silver market.
Just knowing that these traders never have to deal with the physical aspects of these metals absolves the players from any serious consequences. I mean it's only monopoly money they are playing with.
It is a source of angst, for me at least, that derivatives, contracts, and futures bets are allowed to even exist. Unfortunately, that's the way of the financial world.
In a kitco interview that I listened to this A.M. between MM and a Steve Hanke, I did get some insight.
You have to skip the first 30 minutes of the video to get to the meaty stuff. That's unless you want to hear some convaluted explanation about the Fed ignoring the money supply at its own peril.
They say there is nothing new under the Sun.
This fellows methods, which are well detailed, are probably just one way to determine which way to bet.
This describes how the big boys do it. That leaves me out.
It also confirms that it will require a major catalyst to move the price of gold in a significant manner.
Not talking another Black Swan event; talking Black Hole event.