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<p>[QUOTE="PeacePeople, post: 2477250, member: 20082"]I agree with this for the most part. I believe that a lot of the large end users aren't buying from the futures market. People like Bron Sucheki (sp) and others in the industry continue to allude to the OTC market or over the counter. The biggest of reasons to use the OTC is cash flow and just in time inventory. They're more likely to buy a component that goes into their products as needed as opposed to putting months of inventory into a vault to suck up their cash.</p><p><br /></p><p>My belief of who or what truly controls the futures is the bullion banks and miners. The miners are selling forward for cash and the bullion banks are taking the forward inventories in and putting them into the market. Granted they're putting it into the market at whatever multiple they use, but it's still those 2 that are dominating the futures. Most of the others are there to get a shave.</p><p><br /></p><p>I will add that there are probably more than a few with over 1000 ounces, and I didn't want to turn this into a roll call thread. I was making the point that even if you have 10,000 ounces, that nothing considering that is traded in milliseconds, or if you hold 100,000 it might actually take a full second to trade. I hope that clarifies that point.[/QUOTE]</p><p><br /></p>
[QUOTE="PeacePeople, post: 2477250, member: 20082"]I agree with this for the most part. I believe that a lot of the large end users aren't buying from the futures market. People like Bron Sucheki (sp) and others in the industry continue to allude to the OTC market or over the counter. The biggest of reasons to use the OTC is cash flow and just in time inventory. They're more likely to buy a component that goes into their products as needed as opposed to putting months of inventory into a vault to suck up their cash. My belief of who or what truly controls the futures is the bullion banks and miners. The miners are selling forward for cash and the bullion banks are taking the forward inventories in and putting them into the market. Granted they're putting it into the market at whatever multiple they use, but it's still those 2 that are dominating the futures. Most of the others are there to get a shave. I will add that there are probably more than a few with over 1000 ounces, and I didn't want to turn this into a roll call thread. I was making the point that even if you have 10,000 ounces, that nothing considering that is traded in milliseconds, or if you hold 100,000 it might actually take a full second to trade. I hope that clarifies that point.[/QUOTE]
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