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<p>[QUOTE=&quot;medoraman, post: 1469053, member: 26302&quot;]Btw just a note from the CME. I am not talking for them, just general impressions I have from the seminars I attended and people I talked to.</p><p><br /></p><p>The CME really could give a crud about the physical market. All they are doing is creating a market in which their CUSTOMERS can go to offset their exposure in a cost efficient manner to offset their exposure to items. In a perfect world its nice if it were tracking to physical purchases, but its not truly necessary. </p><p><br /></p><p>That&#039;s it. They are not trying to be a market maker in ANYTHING. They DON&#039;T CARE. </p><p><br /></p><p>This is the major point most here I believe don&#039;t get. Theirs is a financial market that allows people who participate to exchange risks. They actively encourage speculators to make the market more efficient and liquid. It lowers the spread and enables deals to get done. </p><p><br /></p><p>All of their rules are set FOR THEIR FINANCIAL MARKET BENEFIT and to ensure the contracts being traded will be paid for. People talk about changes to the margin requirements, well those calculations are public knowledge and are predictable based on volatility for anyone wishing to research it. If you wish to predict market changes, its doable. Its not a bunch of &quot;market manipulators&quot; wishing to affect markets, its a market with predefined parameters as to margin requirements that change based upon market volatility to ensure all money is collected.</p><p><br /></p><p>Again, they could GIVE A RIP if you use their market price for any reason. You are NOT their customer, so you have no say so. Don&#039;t like the price, think its too low/high? Go fly a kite and ignore it then. YOU are not paying them a cent, so they could care less. </p><p><br /></p><p>That is the general impressions/answers I got. They were couched nicer, but is the general feel. Small time speculators in PM is of no concern to them, and they really don&#039;t care if their market price is used by them or not. Their rules are ENTIRELY crafted for their market, which is designed for risk mitigation to function, to work. It was never designed to be a price setter of physical PM at local locations, but again they tailor it to TRY to track that, but that is a secondary issue.</p><p><br /></p><p>Bottom line, ignore the CME then. If dealers price on it and you believe its too low, take advantage of that fact and buy then. If you think its too high sell then. But the market was never created or operated for you.[/QUOTE]</p><p><br /></p>

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