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1 Kilo Gold Futures Start Trading On Hong Kong Merc

Tyler Durden's picture





 

As of 8 pm Eastern, the Comex' monopoly to the precious metals futures is over. As we reported previously, today, at 8 am local time, is when the Hong Kong Mercantile exchange would start trading the inaugural Asian precious metal futures contract: the 32 ounce /1 kilo/ gold futures. In the first 30 minutes of trading it appears to have been a subdued session, with just 22 contracts changing hands in the August 2011-June 2012 frame. How this trading will impact prices: nobody knows (yet). The spot price of gold has barely budged in the past hour. That said, now that PM futures fragmentation is starting, we expect that within 2 years we will have various deranged HFT algos trading tonnes of gold, quote stuffing globally, and otherwise creating one of the most volatile trading environments imaginable. 

And since we know you are asking: the margin schedule for the HKMerx will be kept and listed by the same LCH.Clearnet that hikes and lowers Irish and Portuguese bond margins by 10% on an almost weekly basis. Let see now how the Comex hikes its gold margins with impunity if it has competition that keeps margins "artificially" low, and provides disgruntled Comex clients with an alternative venue that accepts far less cash collateral to trade.

It's called competition Chicago: get used to it.

 


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Tue, 05/17/2011 - 21:11 | Link to Comment Rynak
Rynak's picture

So, what's the good news? *looks around*

EDIT: Okay, the article has now been edited. Competition, okay. In the previous article, all the usual big players were onboard, including JPM. So, my naive question is this: Besides of margin handling, what will stop those players doing what they did and still do on comex?

Tue, 05/17/2011 - 21:21 | Link to Comment dlmaniac
dlmaniac's picture

When will they get silver trading started next?

Tue, 05/17/2011 - 21:22 | Link to Comment Concentrated po...
Concentrated power has always been the enemy of liberty.'s picture

as soon as wen jibao has gotten his "consensual" BJ from Blythe...

Tue, 05/17/2011 - 21:24 | Link to Comment dlmaniac
dlmaniac's picture

I heard BM is barely up to what DSK demands.

Tue, 05/17/2011 - 21:23 | Link to Comment Concentrated po...
Concentrated power has always been the enemy of liberty.'s picture

lol

Wed, 05/18/2011 - 03:27 | Link to Comment MisterMousePotato
MisterMousePotato's picture

Wait?!? A kilogram of gold? Isn't that, like, a lot?

Wed, 05/18/2011 - 09:52 | Link to Comment Urban Redneck
Urban Redneck's picture

32.15oz,  roughly 1/3 of a 100oz bar, or 1/12 of a std delivery bar.  Opens the delivery door to a lot more players both physically and economically.

Tue, 05/17/2011 - 22:21 | Link to Comment Missiondweller
Missiondweller's picture

Don't know why someone would junk you, seems like a damn good question.

Tue, 05/17/2011 - 20:49 | Link to Comment XenoFrog
XenoFrog's picture

You must be this tall to ride...

Tue, 05/17/2011 - 20:51 | Link to Comment TooBearish
TooBearish's picture

Ty- any chance you have the BBG symbol for said contract?

Tue, 05/17/2011 - 20:52 | Link to Comment Tyler Durden
Tyler Durden's picture

Try HKG

Tue, 05/17/2011 - 21:03 | Link to Comment The Feds Connection
The Feds Connection's picture

Got a great piece lined up. I know i am not a longtime member, but how can i submit an article for reviewing? Thanks in advance

Tue, 05/17/2011 - 21:09 | Link to Comment tickhound
tickhound's picture

Post it here, first.  This is fight club after all.  Let some get their licks in and see if you get up.

Tue, 05/17/2011 - 21:22 | Link to Comment The Feds Connection
The Feds Connection's picture

By The Feds Connection

Dominique Strauss-Kahn is effectively finished as a political force, even if he doesn’t draw a guilty verdict in New York, where a 32-year-old maid says she was attacked and forced to perform oral sex on him.

He’s finished as IMF chief and his candidacy against Sarkozy also looks to be in ruins.

The IMF chief certainly has enemies in high places who will be cheering his predicament. He had recently broke-free from the "party line" and was changing the direction of the IMF. His road to Damascus conversion was championed by progressive economist Joesph Stiglitz in a recent article titled "The IMF's Switch in Time". Here's an excerpt:

"The annual spring meeting of the International Monetary Fund was notable in marking the Fund’s effort to distance itself from its own long-standing tenets on capital controls and labor-market flexibility. It appears that a new IMF has gradually, and cautiously, emerged under the leadership of Dominique Strauss-Kahn.

Slightly more than 13 years earlier, at the IMF’s Hong Kong meeting in 1997, the Fund had attempted to amend its charter in order to gain more leeway to push countries towards capital-market liberalization. The timing could not have been worse: the East Asia crisis was just brewing – a crisis that was largely the result of capital-market liberalization in a region that, given its high savings rate, had no need for it.

That push had been advocated by Western financial markets – and the Western finance ministries that serve them so loyally. Financial deregulation in the United States was a prime cause of the global crisis that erupted in 2008, and financial and capital-market liberalization elsewhere helped spread that “made in the USA” trauma around the world....The crisis showed that free and unfettered markets are neither efficient nor stable." ("The IMF's Switch in Time", Joseph Stiglitz, Project Syndicate)

So, Strauss-Kahn was trying to move the bank in a more positive direction, a direction that didn't require that countries leave their economies open to the ravages of foreign capital that moves in swiftly--pushing up prices and creating bubbles--and departs just as fast, leaving behind the scourge of high unemployment, plunging demand, hobbled industries, and deep recession.

Strauss-Kahn had set out on a "kinder and gentler" path, one that would not force foreign leaders to privatize their state-owned industries or crush their labor unions. Naturally, his actions were not warmly received by the bankers and corporatists who look to the IMF to provide legitimacy to their ongoing plunder of the rest of the world. These are the people who think that the current policies are "just fine"  because they produce the results they're looking for, which is bigger profits for themselves and deeper poverty for everyone else.

 

This is an excerpt of the first alinea's, deleted title for the moment.

Tue, 05/17/2011 - 21:41 | Link to Comment Ray1968
Ray1968's picture

Busted.

Ain't Google a bitch?

Tue, 05/17/2011 - 21:46 | Link to Comment Cognitive Dissonance
Tue, 05/17/2011 - 21:57 | Link to Comment tmosley
tmosley's picture

It never struck you they might be the same person?

People use different handles on different sites sometimes.  Sure I don't, but that is because I am stupid and let people cyberstalk me for some reason.

Tue, 05/17/2011 - 22:11 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Yes it did strike me. That was why I offered the courtesy of asking if s/he was the original author, a Mike Whitney in fact. As opposed to accusing the person of hijacking someone else's work.

Tue, 05/17/2011 - 22:11 | Link to Comment tmosley
tmosley's picture

lol, I read the first reply and that somehow colored my perception of your post.

Sorry about that. 

Tue, 05/17/2011 - 22:26 | Link to Comment The Feds Connection
The Feds Connection's picture

It is, also on http://www.counterpunch.com/whitney05162011.html which is my primary platform.

I have taken an interest in zerohedge recently as i have received alot of e-mails suggesting i should visit this website. Tyler might be interested to receive a copy aswell before it is published online.

Mike

Tue, 05/17/2011 - 22:32 | Link to Comment tickhound
tickhound's picture

Way to get up swingin', Mike. 

Tue, 05/17/2011 - 23:07 | Link to Comment Dapper Dan
Dapper Dan's picture

Welcome Mr. Whitney, I have read many of your articles from Counter Punch over the last year and a half and very much enjoyed them.   It would seem we are like minded. Out of curiosity how long have you been a fight club spectator?

 

For the ZH Crew

From your April 11 2011 article about Bernanke strikes again.

Mike Whitney  QE2 was never intended to lower unemployment. Bernanke has been pulling the wool over our eyes from the get go. The real goal was to buoy stocks with the hope that inflated asset prices would increase the "wealth effect" and trigger another credit expansion. But that hasn't happened because consumers are deleveraging and are still up to their eyeballs in debt.  So, QE2 has just turned out to be more corporate welfare for Wall Street; another handout to the folks who blew up the financial system.

Wed, 05/18/2011 - 04:17 | Link to Comment A Man without Q...
A Man without Qualities's picture

The question is whether DSK was pushing a more radical change at the IMF in order to further his chances of beating Sarkozy?  Although I support any plans to reform the IMF, I do doubt the sincerity of DSK - does this matter? 

Wed, 05/18/2011 - 07:33 | Link to Comment spanish inquisition
spanish inquisition's picture

Odds are we will never know about his sincerity or motivation. I was listening on BBC that he is housed in an empty wing and on suicide watch.

Tue, 05/17/2011 - 21:31 | Link to Comment tickhound
tickhound's picture

tl dr

jk!  See?  Its fun!

"Naturally, his actions were not warmly received by the bankers and corporatists who... plunder of the rest of the world. These are the people who think that the current policies are "just fine"

Naturally, certain people like to keep certain things a certain way... or else.

Tue, 05/17/2011 - 22:47 | Link to Comment nmewn
nmewn's picture

Well, at least you self identified.

I, for one, look forward to the exchange of philosophy & ideas to be judged on the merits.

I hope to see you as a contributor, welcome to Fight Club ;-)

Tue, 05/17/2011 - 23:34 | Link to Comment Double down
Double down's picture

Good stuff!  Here is your first junk 

Tue, 05/17/2011 - 21:04 | Link to Comment TooBearish
TooBearish's picture

IXCQ1 is BBG for august contract ...

Tue, 05/17/2011 - 22:40 | Link to Comment JW n FL
JW n FL's picture

Fuck Um Up Bear!!!

Tue, 05/17/2011 - 20:56 | Link to Comment DocLogo
DocLogo's picture

game on

Tue, 05/17/2011 - 20:56 | Link to Comment The Gold Theory
The Gold Theory's picture

Now all they need is a Max Chong pushing them to buy gold to crash the fed.

Tue, 05/17/2011 - 21:06 | Link to Comment tickhound
tickhound's picture

Interesting to see these two ponzi trade with one another.

Regardless... bearish for $ hegemony.

Poor Fed lovers.  And things were going so well with the 3% hollywood $ rally and all...

Tue, 05/17/2011 - 21:00 | Link to Comment binky
binky's picture

The good news is that maybe this contract will be manipulated less (or not at all) and gold (with increasing volatility) will become a more suitable hedge against US Treasury Bonds. 

 

 

Tue, 05/17/2011 - 21:01 | Link to Comment Rynak
Rynak's picture

Besides of margins, how much manipulation can happen would depend on the rules - are they much different to comex?

Tue, 05/17/2011 - 21:05 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

That said, now that PM futures fragmentation is starting, we expect that within 2 years we will have various deranged HFT algos trading tonnes of gold, quote stuffing globally, and otherwise creating one of the most volatile trading environments imaginable.

Military doctrine. During war or the critical time leading up to (or winding down from a losing) war, if you can't control something, destroy it. Since PMs are the arch enemy to fiat and because they are losing control of it, expect them to try everything they can to destroy it's reputation as a wealth preservation refuge of last resort. Do that by making it extremely volatile, driving people away from that terribly unreliable and frighteningly unpredictable Gold and Silver.

The process started a while back with Silver.

Tue, 05/17/2011 - 21:04 | Link to Comment silvertrain
Tue, 05/17/2011 - 21:15 | Link to Comment johny2
johny2's picture

precious melons

Tue, 05/17/2011 - 21:13 | Link to Comment Confuchius
Confuchius's picture

The always fatal flaw of control freaks of whatever stripe is hubris.

The pathetic delusion that everything, everywhere can always be "controlled".

That delusion has spelt the demise of every empire, fiat currency and army the world has ever known.

Tue, 05/17/2011 - 21:04 | Link to Comment GOSPLAN HERO
GOSPLAN HERO's picture

Asia loves PM!

I like it.

Tue, 05/17/2011 - 21:19 | Link to Comment Oracle of Kypseli
Oracle of Kypseli's picture

We do too.

CD's assertion does not apply to physical as during volatility, the smart ones will BTFD. That will accentuate the uptrend as more physical goes out of circulation 

Tue, 05/17/2011 - 21:29 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

All I am asserting is that they will try to destroy Gold and Silver's reputation. I did not say they would succeed. I said....

....expect them to try everything they can.....

Regardless of success or failure, volatility will scare off some people, thus buying the fiat Ponzi a bit more time.

When facing total annihilation and complete loss, the idea of only suffering a partial loss, even if it is delusional and it means even more people will suffer because the collapse will be drawn out, looks very appealing.

We are, after all, dealing with sociopaths here.

Tue, 05/17/2011 - 21:52 | Link to Comment Bay of Pigs
Bay of Pigs's picture

CD, 

Not to mention the Peak Troll activity we've seen here and elsewhere on the PM's lately. It is nearly all fear based.

I know I've never seen anything close to this in the last 12-15 years I've been following gold and silver. 

Tue, 05/17/2011 - 22:20 | Link to Comment Fiat2Zero
Fiat2Zero's picture

There's some serious "Masters of the Universe" panic going on. Fire in the COMEX.

Wed, 05/18/2011 - 02:00 | Link to Comment akak
akak's picture

It is also interesting to note, as others have here recently as well, that the entire focus of the anti-PM, pro-bankster trolls used to be gold, but has dramatically and virtually completed shifted to silver as of late.  Methinks that somebody is seriously running scared.

In other news, it appears that MethMan has taken a short-term sabbatical from ZH, in order to finish up some graduate courses at Troll U.

Tue, 05/17/2011 - 22:21 | Link to Comment Fiat2Zero
Fiat2Zero's picture

The additional $1-$2 swing (down) in silver prices may have bought them a few weeks.

It may actually speed things up though since the artificial low brings in the volume buyers to scoop things up.

My local coin dealer, who I buy gold and silver from just has a few 100 oz englehards, and a funny old box of "assorted 1 oz rounds": Buffalos and things like USS Arizona commemorative coins that look like they've seen action.

He's seriously cleared out down to just the junk drawer.

Oh that and I got a tiffany sugar pot (at melt, sterling), and almost bought a silver serving tray with Condoleeza Rices name on it (as well as a bunch of other famous people).

Tue, 05/17/2011 - 22:42 | Link to Comment tiger7905
tiger7905's picture

Some more from Casey's on silver supplies.

http://goldandsilverlinings.com/?p=1004

Tue, 05/17/2011 - 23:13 | Link to Comment Rynak
Rynak's picture

When facing total annihilation and complete loss, the idea of only suffering a partial loss, even if it is delusional and it means even more people will suffer because the collapse will be drawn out, looks very appealing.

What people call "egoism" always has first been concerned with others losing, and secondly with oneself gaining. Phrased another way, it is more about others having less, than it is about oneself gaining. It's not restricted to economics but a generic psychological thing. People with this mindset will prefer oneself gaining little and the other losing little, over both gaining much - heck, they will even prefer oneself losing little and the other losing much, over an actual gain. Their illusion of winning mainly comes from comparing their resulting situation to the opponent, instead of comparing actual gains. In the big picture (both time and space), what people call "egoism" really is much closer to "sadism", rather than "only being concerned with one's own gain".

Wed, 05/18/2011 - 00:34 | Link to Comment Oracle of Kypseli
Oracle of Kypseli's picture

@ CD

Sorry,

What I meant was that they can easily discourage and drive away paper players on margin, but it's more difficult to discourage physical buyers who can use a bear raid as an opportunity to buy more coins or bars.

Cheers

Tue, 05/17/2011 - 21:19 | Link to Comment Oracle of Kypseli
Oracle of Kypseli's picture

Oops.

Tue, 05/17/2011 - 21:04 | Link to Comment Josh Randall
Josh Randall's picture

The plot thickens:

BREAKING! MORE Verification! Nordyke Numbers Expose Obama BC Fraud!

http://www.youtube.com/watch?v=AmDZ0xly1OU&feature=feedlik

Tue, 05/17/2011 - 21:34 | Link to Comment Vuvuzela
Vuvuzela's picture

It might sound wired but here it is:

 

What about this: The Kenian story is a hoax and he is an illegitimate son of a NWO high profile (of a certain religion) and a black lady and was given to adoption to the durnham's dunhum's whatever is spelled which they also were of a certain religion

Look at his political carier: he jumped from the basment to senator and after to president and was living in a million dollar home in high profile residential area with a lot of peoples of a certain religion, when he was a community organiser. WTF

Tue, 05/17/2011 - 22:01 | Link to Comment Josh Randall
Josh Randall's picture

Dude - try hitting the spell check key before posting

Tue, 05/17/2011 - 23:58 | Link to Comment trav7777
trav7777's picture

not religion; ethnicity.  Most of these people do not go to synagogue nor follow any of the tenets

Tue, 05/17/2011 - 21:09 | Link to Comment buzzsaw99
buzzsaw99's picture

hong kong oil exchange NymEXT? buh bye wti shenanigans

Tue, 05/17/2011 - 21:13 | Link to Comment augie
augie's picture

Can we all just agree to stop sayin shenanigans please, it really detracts from the discussion. 

Tue, 05/17/2011 - 21:13 | Link to Comment buzzsaw99
buzzsaw99's picture

I call shenanigans on you augie. ;)

Tue, 05/17/2011 - 21:20 | Link to Comment Confuchius
Confuchius's picture

Is there something about the word "shenanigans" you don't understand?

Are there too many syllables?

Tue, 05/17/2011 - 22:32 | Link to Comment I Got Worms
I Got Worms's picture

Next person to say shinanigans gets pistol-whipped.

Wed, 05/18/2011 - 00:40 | Link to Comment Oracle of Kypseli
Oracle of Kypseli's picture

There may be some guys that would like that and you may have to deliver. Be careful promising things  

Wed, 05/18/2011 - 00:40 | Link to Comment I_ate_the_crow
I_ate_the_crow's picture

Hey Meth_Man what's the name of that restaurant you like with all the goofy shit on the walls and the mozzarella sticks?

Tue, 05/17/2011 - 21:09 | Link to Comment sabra1
sabra1's picture

OT:

Watermelons in eastern China’s Jiangsu province burst in the fields, possibly because of a growth-promoting chemical and sudden rainfall after a drought, the country’s official Xinhua News Agency reported yesterday.

More than 700 mu (47 hectares or 115 acres) of melons in the Danyang city area were ruined, Xinhua said. Wang Liangju, a professor at Nanjing Agricultural University, said the accelerant, forchlorfenuron, may have caused some bursting, even if most farmers said they hadn’t used it, according to the news service. Wang said heavy rainfall may have caused the rest of the bursts.

“I have never seen this phenomenon,” said Bob Morrissey, executive director of the U.S. National Watermelon Association in Lakeland, Florida. “Watermelons do not burst only from rainfall.”

Morrissey said rain only causes mildew and cosmetic cracks inside melons. The problem was likely caused by forchlorfenuron, used in the U.S. only on grapes and kiwifruit, he said.

Tue, 05/17/2011 - 21:22 | Link to Comment espirit
espirit's picture

Radioactivity bitches.

Tue, 05/17/2011 - 21:49 | Link to Comment Kiwi Pete
Kiwi Pete's picture

Is that why Californian grapes taste so bland? They sell them in the supermarket over here but we only bought them once.

Tue, 05/17/2011 - 23:30 | Link to Comment topcallingtroll
topcallingtroll's picture

I don't eat anything from china anymore.  Most of the tilapia is from there too.  They are the most corrupt lying poisoning bastards on the planet.  They even poison baby milk and toothpaste.  Ask the hundred or so people in south america who died from brushing their teeth.  Oh...I guess you can't ask them.

Tue, 05/17/2011 - 21:14 | Link to Comment Gunther
Gunther's picture

Where does the physical change hands?
Until August HK is irrelevant for that.
The mining output is around 8 metric tons a trading day (~2000 tons / ~250 trading days.)
Somewhere that gold has to be delivered. The Comex delivery numbers are way to small; the LBMA numbers way too big.
Which exchange or smoky back-room remains? 

Tue, 05/17/2011 - 21:22 | Link to Comment mynhair
mynhair's picture

Gold is DOWN?  WTF?

Tue, 05/17/2011 - 22:35 | Link to Comment Missiondweller
Missiondweller's picture

All commodities are down, though you'll notice gold is down considerably less than all others.

 

BTFD

Tue, 05/17/2011 - 23:28 | Link to Comment Rynak
Rynak's picture

Actually, there today, and yesterday have been..... well, decide for yourself what it is... just zoom into those almost vertical lines downwards. Hate to say it, but don't expect gold to be safe from what they did to silver.

Wed, 05/18/2011 - 00:51 | Link to Comment tiger7905
tiger7905's picture

Some interesting comments from Richard Russell on patience being needed for the next gold bull run, we could be in for a 20 week consolidation.

Background:
http://goldandsilverlinings.com/?p=1016

Tue, 05/17/2011 - 22:06 | Link to Comment I_ate_the_crow
I_ate_the_crow's picture

So 10 Senators visit China to "discuss crackdowns" on Chinese dissidents in late April.

Meanwhile....

China states its intention to reduce dollar denominated holdings, presumably because FED policies were causing the dollar-pegged-yuan to inflate. China is also actively encouraging its citizens to invest in physical silver and gold. A little after the meeting, Hong Kong announces it will open its own gold futures exchange. This isn't suspicious at all, and I highly doubt that an agreement was made for the Chinese to keep rapidly deteriorating dollar assets on hand in exchange for an agreement to be involved in the paper supression scam of the gold and silver future prices. Indeed, the Chinese will be able to launder dollars into the paper market, help supress the prices for its central bank and citizens, and takes the heat off of Comex.

Obviously this is pure speculation, but if you were the banksters, this would be a good way to buy some more time to abscond with even more of the USA's wealth before the ponzi collapses.

Tue, 05/17/2011 - 21:26 | Link to Comment espirit
espirit's picture

I get it.  Suckers get to buy bogus China IPO's and the cash goes straight to gold, no banksters... Perfect.

Tue, 05/17/2011 - 21:31 | Link to Comment mynhair
mynhair's picture

Is that line not sloping down to the right?

Chinkpleebs now have a venue to sell?

Tue, 05/17/2011 - 21:48 | Link to Comment aribabak
aribabak's picture

 

 

The HK Mercantile Exchange launched its first 1-kilogram gold futures contracts quoted in U.S. dollars with physical delivery (settlement) in Hong Kong. The price will be based on the troy ounce price in US dollar. In addition, the official trading hours start from 8AM till 11PM Hong Kong Time during HKME business days. This business period will synchronize with the Tokyo Commodity Exchange (TOCOM) opening hour, and will cover the London Bullion Market Association (LBMA) morning fix and afternoon fix and the opening hours of the New York Mercantile Exchange (COMEX).

It further disclosed that the Mercantile Exchange plans to launch sometime in September/October this year, a gold futures contract with prices quoted in RMB but settlement denominated in US dollar.

Source: http://finance.ifeng.com/gold/jskx/20110518/4036343.shtml

In the first 30 minutes of trading it appears to have been a subdued session, with just 22 contracts changing hands in the August 2011-June 2012 frame.

Source: http://economyurls.com/180511/1-kilo-gold-futures-start-trading-on-hong-...

Tue, 05/17/2011 - 21:50 | Link to Comment Island_Dweller
Island_Dweller's picture

Is a contract for 1 or 100 KGs?

Tue, 05/17/2011 - 21:53 | Link to Comment Gunther
Gunther's picture

Tyler stated 1kg / 32 oz / 1000g per contract.

Tue, 05/17/2011 - 21:59 | Link to Comment aribabak
aribabak's picture

The HK Mercantile Exchange website:

http://www.hkmerc.com/en/index.html

The gold trasaction graph is on this first page

Code for 1-kg gold futures contract: HKG

(Tyler got it right for this one)

 

Tue, 05/17/2011 - 22:09 | Link to Comment mynhair
mynhair's picture

At least USDJPY hit unchanged.  Took my case of beer.

Bedtime, bitchez!

Edit: and there it falls again.  BTFD.

Crap, staying up for 81.

Tue, 05/17/2011 - 22:13 | Link to Comment mynhair
Tue, 05/17/2011 - 22:15 | Link to Comment theinebriatedsot
theinebriatedsot's picture

we'll see if they're the same group of scumbags as over here. Being Asian is a good thing.....but has this particular group been allowed into "The Club" to rape and fleece gold traders? I hope these people are at least more honest than the bunch over here. Time will tell soon enough......

Tue, 05/17/2011 - 22:18 | Link to Comment mynhair
Tue, 05/17/2011 - 22:34 | Link to Comment Math Man
Math Man's picture

This is really great news.

For banks. 

Who now have another data point to use to front run the US retail sheep in GLD.

They will be the first to short when they see Asian demand start declining.

Sold to you!

Chinese and Indian demand will decline later this year as their governments continue to tighten...  and now the banks will see it even sooner than they would have before.

Goodbye Gold, Goodbye Silver.

See you at $20 and $1000.

Tue, 05/17/2011 - 22:42 | Link to Comment JohnG
Tue, 05/17/2011 - 22:49 | Link to Comment mynhair
mynhair's picture

JohnG, you need a Fx account.

http://www.youtube.com/watch?v=9F9q_k5TWqo

Tue, 05/17/2011 - 22:47 | Link to Comment tmosley
tmosley's picture

lol, now you are telling us the banks are conspiring against us?

I thought the banks were totally legit.

You change positions more often that a politician under close examination.

Tue, 05/17/2011 - 22:55 | Link to Comment mynhair
Tue, 05/17/2011 - 23:03 | Link to Comment topcallingtroll
topcallingtroll's picture

I sure hope it is 20 dollar silver and 1000 dollar gold. 

I reiterate my topcall on everything, even topcalling. 

 

Well except the dollar and treasurys.  They are still yet to top.

Tue, 05/17/2011 - 23:16 | Link to Comment topcallingtroll
topcallingtroll's picture

Blonde redhead is the best you could come up with?

Tue, 05/17/2011 - 23:19 | Link to Comment mynhair
mynhair's picture

http://www.youtube.com/watch?v=yvT_pzN2UHA

I'm in the mood for some of your luv...

Tue, 05/17/2011 - 23:31 | Link to Comment topcallingtroll
topcallingtroll's picture

that's better....you ought to come to Arkansas some time in the delta and check out the king biscuit blues festival in Helena.  

Wed, 05/18/2011 - 00:56 | Link to Comment gangland
gangland's picture

very nice, love the south, and blues. see you in oct.

Tue, 05/17/2011 - 23:14 | Link to Comment Toxicosis
Toxicosis's picture

Chinese and Indian demand will decline later this year as their governments continue to tighten...  and now the banks will see it even sooner than they would have before.

 

Your crystal ball is covered in Troll shit again, better clean it off.

Wed, 05/18/2011 - 06:19 | Link to Comment ViewfromUnderth...
ViewfromUndertheBridge's picture

"and now the banks will see it even sooner than they would have before". by MythMan

so...client order flow, stops etc not enough already to work it out...they can sit up nights and watch the HKMEx.

You are an idiot. 

Tue, 05/17/2011 - 22:47 | Link to Comment AldoHux_IV
AldoHux_IV's picture

Doesn't matter how many exchanges compete-- without the added regulatory buffer of making sure that no one entity/speculator can influence price action by taking an unlimited amount of contracts, then we're a long way from free markets that are meant for price discovery-- sometimes I think it's all pie in the sky idealism.

Tue, 05/17/2011 - 23:27 | Link to Comment Rynak
Rynak's picture

Precisely.

Wed, 05/18/2011 - 01:29 | Link to Comment gangland
gangland's picture

it is idealism, no such things as 'free' markets.

Tue, 05/17/2011 - 22:51 | Link to Comment Widowmaker
Widowmaker's picture

Wait, I thought "buying gold was buy and hold."

Tue, 05/17/2011 - 23:10 | Link to Comment mynhair
Tue, 05/17/2011 - 23:12 | Link to Comment mynhair
Tue, 05/17/2011 - 23:20 | Link to Comment tickhound
tickhound's picture

You boozin' tonight, or somethin'?

His swing looks like an unfolding lawn chair.

Tue, 05/17/2011 - 23:25 | Link to Comment mynhair
mynhair's picture

Duh.

Tue, 05/17/2011 - 23:34 | Link to Comment tickhound
tickhound's picture

-Big hitter the Lama... long.

-That ball was slowin' down the moment he hit it.

Tue, 05/17/2011 - 23:18 | Link to Comment davster
davster's picture

doesn't tocom have gold contracts?

http://www.tocom.or.jp/guide/youkou/gold/index.html

Tue, 05/17/2011 - 23:21 | Link to Comment Bansters-in-my-...
Bansters-in-my- feces's picture

Take it upt

 the ass,troll....

Are your ears ringing,MethMan...?

Tue, 05/17/2011 - 23:19 | Link to Comment topcallingtroll
topcallingtroll's picture

Man alive..... all this despair and negativity about precious metals.  On zero hedge of all places!

Where is all your zeal and energy?  Mathman only has 5 junks?  WHAT IS WRONG WITH YOU PEOPLE!

 

We might just be due for a bounce about now.  The despair, cynicism, surrender....it's all getting to be too much for me.   And not even a gold, bitchez or BTFD among the lot of you. 

Can I get a BTFD, brother?  Don't leave me hanging.

Tue, 05/17/2011 - 23:36 | Link to Comment tickhound
tickhound's picture

An interesting observation... Could be a sign to triple leverage to the upside!!!

And I own EVERY dip since $9, bitchez.

Wed, 05/18/2011 - 06:21 | Link to Comment ViewfromUnderth...
ViewfromUndertheBridge's picture

I bought today.

Tue, 05/17/2011 - 23:20 | Link to Comment Bansters-in-my-...
Bansters-in-my- feces's picture

Take it upt

 the ass,troll....

Are your ears ringing,MethMan...?

Tue, 05/17/2011 - 23:23 | Link to Comment topcallingtroll
topcallingtroll's picture

that's better.  I was getting worried.

Tue, 05/17/2011 - 23:24 | Link to Comment mynhair
Tue, 05/17/2011 - 23:27 | Link to Comment ViewfromUnderth...
ViewfromUndertheBridge's picture

Save us Chicoms!!!

ha ha!

from their site:

"

HKMEx has developed cutting-edge infrastructure to deliver leadership in speed, reliability and choice to market participants seeking the optimal connectivity solution. The Exchange works with leading carriers around the world to ensure connectivity remains simple, robust and cost effective no matter where a market participant is located. Pearl® supports the industry-standard FIX 4.4 protocol, as well as EMAPI, a proprietary API which provides speed and efficiency advantages. Market participants can connect to Pearl® via our Managed Global Network or choose to collocate their trading applications in the HKMEx data centre facilities.

"

emphasis added bitchez!

Wed, 05/18/2011 - 00:03 | Link to Comment topcallingtroll
topcallingtroll's picture

LMFAO!

The chinese will make the crimex look like a bunch of amateurs.

NOW ALL YOUR TRADING DATA ARE BELONG TO US!

or how about

In china you don't trade the HKMEx.  The HkMEx trade you.

Wed, 05/18/2011 - 05:36 | Link to Comment NoClueSneaker
NoClueSneaker's picture

+1

GS in trouble ... frontrunning on a donkey

Tue, 05/17/2011 - 23:29 | Link to Comment mynhair
mynhair's picture

For those of you confused about PMs:

http://www.youtube.com/watch?v=qkmvwCpcZlM&feature=related

Tue, 05/17/2011 - 23:39 | Link to Comment Mec-sick-o
Mec-sick-o's picture

Now monopoly is a duopoly.  Huh, that sense of choice is familiar... (Rep. vs Dem).  two sides of the same coin.

Tue, 05/17/2011 - 23:37 | Link to Comment mynhair
mynhair's picture

So, what is this new finagled market pricing gold at?

We want updates, or at least a reliable link.

http://www.youtube.com/watch?v=X3iFhLdWjqc

Tue, 05/17/2011 - 23:49 | Link to Comment tmosley
tmosley's picture

I should note that APMEX has lowered their premiums on ASEs.  The cheapest form ("random" year) has dropped 40 cents per oz.  The premiums remain astronomical, but slightly less so than recently.  

Also note that since I noticed this this afternoon, the supply has dropped from about 9200 to about 7200.  The 2011's are cheaper as well, and they have more than 9999 of those.

Seems like they managed to get SOMEONE to sell.  Monster boxes remain astronomical, and other silver products are holding at their high premiums, though they appear to have gotten significant new supply in many categories from mints (NOT used silver, which is bare bones).

Take that information for what you will.

Wed, 05/18/2011 - 00:07 | Link to Comment trav7777
trav7777's picture

I take it as nonsense.

Local dealer was selling 100oz bars for 3630 on saturday

Wed, 05/18/2011 - 08:25 | Link to Comment tmosley
tmosley's picture

Oh look, the Golgothan has something to say.  Best clear the area, folks.

A few things.

First: Yeah?  Prove it.  Your ass has been caught lying and telling half truths a LOT lately--anything to pursue your dumbshit vendetta.

Second: One instance of anecdotal evidence doesn't refute all other prices everywhere.

Third: 100 oz products have had the second slowest rise in premiums, but premiums are MUCH higher than they were in April, or any time before that after the 2008 episode.

Fourth: all the large products I have found cheaply are brand new--no reselling of bars is happening at retail.

Fifth: You are super biased.  You probably didn't ask how many people were buying vs selling, or you purposefully excluded that data.

Sixth: What about their other products, huh?  All gone around here.  No 100 oz bars either.  Just a few scratch and dents and some 90% and 40% junk, and the stuff posted for auction, which has greatly increased in price.

Tue, 05/17/2011 - 23:53 | Link to Comment mynhair
Tue, 05/17/2011 - 23:54 | Link to Comment bob_dabolina
bob_dabolina's picture

Yea...

Hong Kong? 

...this is where empty cities are built right?

....a country where you blow up buildings just to rebuild them? 

I am pro free market, so we will see how this works out.

It will be an interesting study.

Wed, 05/18/2011 - 00:06 | Link to Comment topcallingtroll
topcallingtroll's picture

YOu need to check out the post from viewfromunderneath below.  I missed the importance of it the first time.

Wed, 05/18/2011 - 00:10 | Link to Comment mynhair
mynhair's picture

Have no idea where USDJPY goes from here.

Only in it for the beer.

Made next month's requirements.

http://www.youtube.com/watch?v=WANNqr-vcx0

Wed, 05/18/2011 - 00:21 | Link to Comment silberblick
silberblick's picture

Click below to read if DSK was set up--as he claimed he would be--in response to his outspoken policies against the dollar and Fed:

http://thesilvergoldhedge.blogspot.com/2011/05/sdk-had-dollar-banksers-a...

Wed, 05/18/2011 - 00:58 | Link to Comment FlyPaper
FlyPaper's picture

Couple of more futures exchanges and things might not be so easy for the Comex "market makers."   

Wed, 05/18/2011 - 02:06 | Link to Comment nevket240
nevket240's picture

HOKOMEX rules. 

It won't be long before Comex is used in the same vein as Ponzi.

regards

Wed, 05/18/2011 - 02:27 | Link to Comment Jasper M
Jasper M's picture

If the new exchange does Not raise margin requirements in the face of increased volatility (and volume from marginally capitalized players), they may find they Have to, to keep from having to cover pay outs from busted players. There's a Lot of Hard vacuum under commodities right now.  

Wed, 05/18/2011 - 04:09 | Link to Comment FoieGras
FoieGras's picture

COMEX margin hikes should be great news for all gold and silver bulls, considering that they claim gigantic short positions in precious metals. Margin hikes enforce short covering = higher prices. What's not to like?

 

Wed, 05/18/2011 - 08:44 | Link to Comment Raymond Reason
Raymond Reason's picture

Its no hardship for the shorts. 

Wed, 05/18/2011 - 09:30 | Link to Comment zeek
zeek's picture

I'm surprised no one has addressed the fact that they will be offering these contracts priced in yuan.  Am I making too much of this?

Sun, 05/22/2011 - 19:15 | Link to Comment silberblick
silberblick's picture

 

Follow the link below to find out why the Hong Kong Mercantile Exchange must be seen and understood as an extension of the Chinese government and its long term goals, and consequently, why it will not help create an equitable or realistic price discovery mechanism for gold. Not for now anyway.

http://thesilvergoldhedge.blogspot.com/2011/05/why-hong-kong-exchange-will-disappoint.html

 

Do NOT follow this link or you will be banned from the site!