Can someone explain this JP Morgan thing to me?
- Thread starter The Original Happy Goat
- Start date
No, they are just the broker for derivatives and hedges. I think the massive amount of speculation in gold, among other commodities, is the biggest reason for such a high physical delivery.
JPMorgan plans $4 billion US gold delivery amid tariff fears
The delivery notices — which total 30 million troy ounces of gold — were the second largest ever in bourse data going back to 1994.
I appreciate your effort, but you'll forgive me I hope if it still sounds like alchemy. I have no idea what any of this means.No, they are just the broker for derivatives and hedges. I think the massive amount of speculation in gold, among other commodities, is the biggest reason for such a high physical delivery.
JPMorgan plans $4 billion US gold delivery amid tariff fears
The delivery notices — which total 30 million troy ounces of gold — were the second largest ever in bourse data going back to 1994.fortune.com
I haven't wrapped my head around this: if it's an arbitrage situation, how would that lead to the need for physical delivery? I can’t think of a scenerio where you couldn't just capture the profit without having to send/receive delivery.No, they are just the broker for derivatives and hedges. I think the massive amount of speculation in gold, among other commodities, is the biggest reason for such a high physical delivery.
JPMorgan plans $4 billion US gold delivery amid tariff fears
The delivery notices — which total 30 million troy ounces of gold — were the second largest ever in bourse data going back to 1994.
Just for reference, there have been 3 yrs in my 25 yr career that I made more money trading commodities than I did farming them. One of those years was definitely nothing to brag about, but I do know a little bit about it.
We've seen oil go negative, because the guys in the wrong position didn't have a place to store it. Likewise, many farmers complain about the US importing corn and beans, but the reason for the import is that because of market and currency differences it is cheaper to get the commodities shipped from SA to close positions than it is from just down the road.
A major difference here is the nature of the commodity. You can’t eat it or burn it. It could sit over there, or sit over here. Nonetheless, very interesting.
CFTC Commitments of Traders Report - CMX (Futures Only)
This is the viewable version of the most recent release of the CMX long form futures only commitments report.
www.cftc.gov
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I don’t know who is on the other (or both sides) of the trade, but perhaps the cash settlement option is not favorable? I’m not a derivatives or commodity guy.
I just know most of JPM’s business is brokering vs investing directly, so much of this I would assume is on behalf of clients.
Hopefully Matt Levine will write about it on Monday.
Not really but I'm assuming they want as much physical gold as possible before large tariffs go into effect....That makes common sense.
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