Cheers Reiner,Confidence is a strange beast isn't it - One...

Cheers Reiner,

Confidence is a strange beast isn't it - One morning its there - and in the afternoon "gone"!!

Its happened before, so who knows.. Certainly the fundamentals are there for it. There is a great Kyle Bass interview where he talks about a gold trade where they demanded delivery. They also had the purchase audited etc.. He goes on to discuss the open interest on Comex, v's Comex Physical inventory. Its quite astounding.

To cut to it, the gist is that Comex only held (in physical) something in the order of 5% of the total open interest. He then asks Comex something like, "so what happens if 10% demand delivery"?? - The response is something to the effect of "oh, that will never happen"!!

Check it out, Im sure its on the web somewhere..

Pete