In order to help Skol understand the price of paper gold I have decided to launch a new Skol Cattle ETF. It will work exactly like the current paper gold ETFs.
1) Skol told us he grew three cattle from bub to adult; therefore the SC ETF is a traded fund to cover the buy / sell of these three cattle
2) There are 100 of these 3 cattle ETF contacts for sale
3) Skol must sell his REAL cattle at the same price as the lowest traded of the 100 SC ETF contracts
(now we know Skol paid a couple hundred for the bubs and probably a couple of hundred to develop them; pretty similar in analogy to buying some JORC gold resource and mining it out of the ground)
Now, I would like to entertain bids for each of the contracts. Now, like all ETFs I will probably let the buy contracts go at a pretty low price. I sure hope, for Skol's sake, no one goes about trying to short these 100 x '3 cattle' contracts.
Oh, like the real world, no one holding these ETF contracts need ever deliver or take delivery of the actual cattle. They only need to trade the pieces of paper.
Good luck Skol. Remember the price you obtain in market for you cattle will be determined by these contracts. You are bound, even though you are a physical holder of the little beasts... you are bound to sell at the price of the paper contract.
Let the bidding begin. Please, what price am I offered for any or all of the contracts.
(oh, finally, if anyone else wishes to make other 3 cattle contracts covering Skol's cattle, there is nothing stopping them in this free and fair market; Skol, I hope no one thinks, like me, to make a clever ETF like this; it could be bad for you if there is TOO much shorting of your cattle; but you must admit - that is just life in the free and fair ETF word, which governs the price of commodities like gold or your 3 cows)
In order to help Skol understand the price of paper gold I have...
Add to My Watchlist
What is My Watchlist?