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*Breaking: The Comex Confirms That Its Gold and Silver Inventory Reports Are Fraudule
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<p>[QUOTE="medoraman, post: 1724011, member: 26302"]But if there is too far a spread between the futures and the cash market, (basis), then the futures risk becoming irrelevant. This is why they allow physical delivery if you pay up front, to try to keep the markets in line. A futures market that does not track physical to a high degree are useless to those wishing to hedge their physical position, which is the main customer for the futures market.</p><p><br /></p><p>WHY there are tons more futures than physical commodity is a different story, one that I can get into if you are really interested. Short answer is that it provides better price discovery and liquidity to the market.[/QUOTE]</p><p><br /></p>
[QUOTE="medoraman, post: 1724011, member: 26302"]But if there is too far a spread between the futures and the cash market, (basis), then the futures risk becoming irrelevant. This is why they allow physical delivery if you pay up front, to try to keep the markets in line. A futures market that does not track physical to a high degree are useless to those wishing to hedge their physical position, which is the main customer for the futures market. WHY there are tons more futures than physical commodity is a different story, one that I can get into if you are really interested. Short answer is that it provides better price discovery and liquidity to the market.[/QUOTE]
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*Breaking: The Comex Confirms That Its Gold and Silver Inventory Reports Are Fraudule
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