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Good article on how PM markets work
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<p>[QUOTE="chip, post: 1923886, member: 19122"]I think that the author of the article is right that there will be unintended consequences of ending the London fix, it seems that there are always unintended consequences to any so called reform, and none of them are ever responsible, for instance if a reform is made with the intention of benefiting consumers of a product, even if consumers are not benefitted or the reform actually makes things worse for consumers, there is never the option of admitting the misstake and going back to the old ways.</p><p><br /></p><p>I agree with the author that volatility will increase, the ironic thing is that those who think silver is manipulated will see that manipulation is in the eyes of the beholder, if you are a buyer, you want to see prices suppressed or as low as possible, if you are a seller you want to see prices higher, this reform seems to me to do both, if you are selling to the public you will be getting your higher prices, if you are buying from the public you will probably be able to buy for less, since in a volatile market that can swing wildly, buyers will not want to purchase your 100 ounce bar at anything that could be a loss for them two or three days down the line when they sell it.</p><p><br /></p><p>The spread will probaly be worse, thus making it harder for the smaller players to make any money, and they call it reform.[/QUOTE]</p><p><br /></p>
[QUOTE="chip, post: 1923886, member: 19122"]I think that the author of the article is right that there will be unintended consequences of ending the London fix, it seems that there are always unintended consequences to any so called reform, and none of them are ever responsible, for instance if a reform is made with the intention of benefiting consumers of a product, even if consumers are not benefitted or the reform actually makes things worse for consumers, there is never the option of admitting the misstake and going back to the old ways. I agree with the author that volatility will increase, the ironic thing is that those who think silver is manipulated will see that manipulation is in the eyes of the beholder, if you are a buyer, you want to see prices suppressed or as low as possible, if you are a seller you want to see prices higher, this reform seems to me to do both, if you are selling to the public you will be getting your higher prices, if you are buying from the public you will probably be able to buy for less, since in a volatile market that can swing wildly, buyers will not want to purchase your 100 ounce bar at anything that could be a loss for them two or three days down the line when they sell it. The spread will probaly be worse, thus making it harder for the smaller players to make any money, and they call it reform.[/QUOTE]
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Good article on how PM markets work
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