by Turd Ferguson
TF Metals Report
In defending their long held short positions, the Comex Banks have now issued enough new contracts to drive total open interest back to levels not seen since 2011. Will they be successful in capping price or are they about to get a religious experience? We’re about to find out.
Let’s start with the basics so that we’re all on the same page….
The Bullion Banks act as de facto “market makers” on the Comex. In doing so, they have the ability to create new futures contracts for trading across the board. In a sense, there are three possible transactions: