I was about to reply negatively to this until I saw the value of the contract... $10 million USD. OK. That might make a difference.
My original reply was that I have a friend in Bangkok who is a gems and jewelry dealer. I asked him if there was any issue with silver shot right now. He told me that there was no shortage at all and could get as much as he wanted immediately.
But he's talking about realistic industrial supplies. I imagine a huge amount for investment could create an issue. But I think you would always have that. If you ask for an obscenely large amount of any commodity, you may have to wait for delivery. In the mean time, if you want to order 500kg of silver shot for jewelry manufacture in Asia there is currently no problem filling the order.
The other question I have is how much of that short position is needed for ordinary commerce. Any industrial supplier who holds silver in inventory is going to have a short position open to hedge against a price drop. How much of that short position is investment banks vs. inventory in legitimate businesses? Has anyone calculated those figures?
I was about to reply negatively to this until I saw the value of the contract... $10 million USD. OK. That might make a difference.
My original reply was that I have a friend in Bangkok who is a gems and jewelry dealer. I asked him if there was any issue with silver shot right now. He told me that there was no shortage at all and could get as much as he wanted immediately.
But he's talking about realistic industrial supplies. I imagine a huge amount for investment could create an issue. But I think you would always have that. If you ask for an obscenely large amount of any commodity, you may have to wait for delivery. In the mean time, if you want to order 500kg of silver shot for jewelry manufacture in Asia there is currently no problem filling the order.
The other question I have is how much of that short position is needed for ordinary commerce. Any industrial supplier who holds silver in inventory is going to have a short position open to hedge against a price drop. How much of that short position is investment banks vs. inventory in legitimate businesses? Has anyone calculated those figures?