Wild speculation on the basis of no knowledge: Basel 3 not implemented in the US so unallocated gold isn't subject to NSFR (ie. doesn't require expensive funding). Unallocated gold asset (e.g. a loan to a producer) can be hedged with Comex futures (i.e. bank short) without any requirement for expensive funding - in the case of a US bullion bank based in NY. On this basis, it makes sense that the short is on the Comex which explains the squeeze and expansion of the basis (paper spot LBMA v paper future Comex) in the event of delivery delays out of London/Switzerland. This is coincident with Tariffs but not caused by Tariffs........
Going deeper into the rabbit hole - London regulated unallocated gold long hedged by unallocated gold short (which also requires expensive funding) is less efficient than US regulated unallocated gold long with Comex short - especially when speculators bid up the basis. What breaks it is a change from the Comex longs to take delivery.....
The reason it "slipped through a crack" is because no serious professional will watch Cambone. Nice lady, warm and friendly, but never asks the tough questions, just softballs for her BFF guests.
Jim has a book to sell and should appear on any show w an audience.
Leasing US gold? Shocking! Now there's a breaking story.
A Member of Aris (ARMN) Board of Directors for her IR "expertise"👀 LOL -- I'm told because a VP Capital Markets AND an IR Director aren't sufficient.
Wild speculation on the basis of no knowledge: Basel 3 not implemented in the US so unallocated gold isn't subject to NSFR (ie. doesn't require expensive funding). Unallocated gold asset (e.g. a loan to a producer) can be hedged with Comex futures (i.e. bank short) without any requirement for expensive funding - in the case of a US bullion bank based in NY. On this basis, it makes sense that the short is on the Comex which explains the squeeze and expansion of the basis (paper spot LBMA v paper future Comex) in the event of delivery delays out of London/Switzerland. This is coincident with Tariffs but not caused by Tariffs........
Going deeper into the rabbit hole - London regulated unallocated gold long hedged by unallocated gold short (which also requires expensive funding) is less efficient than US regulated unallocated gold long with Comex short - especially when speculators bid up the basis. What breaks it is a change from the Comex longs to take delivery.....
The reason it "slipped through a crack" is because no serious professional will watch Cambone. Nice lady, warm and friendly, but never asks the tough questions, just softballs for her BFF guests.
Jim has a book to sell and should appear on any show w an audience.
Leasing US gold? Shocking! Now there's a breaking story.
A Member of Aris (ARMN) Board of Directors for her IR "expertise"👀 LOL -- I'm told because a VP Capital Markets AND an IR Director aren't sufficient.