• Home

foorex2day

  • Home
  • Link
  • Dropdown
    • Action
    • Another action
    • Something else here
    • Separated link
    • One more separated link
Home » Ultracrepidarianism » Turnover and Fractional Memes

Turnover and Fractional Memes

I recently listened to an interview between Eric Sprott and Chris Martenson. Eric has a very good line in spin playing to the themes beloved by the 'bugs. Deconstructing them requires more time than I have at the moment, but this comment I can't leave:

"... I think all the paper markets are a joke. As you are probably aware, we trade a billion ounces of silver a day. A billion ounces. The world produces 900 million a year."

There are many falsehoods in the precious metal commentary "market" but I'm surprised Eric is supporting the idea that large turnover figures are suspicious, which I debunked in this post. He should be careful supporting this meme as it can just as easily apply to his own funds, particularly his silver fund as he seems not interested in doing any secondaries (in contrast to his gold fund).

The suspicious turnover meme is often confused with fractional bullion banking, an example being this comment by The Burning Platform:

“Several competent analysts have worked the numbers (including Bill Murphy and Chris Powell of GATA), and have come to the conclusion that for every ounce of silver in known inventories there are approximately 100 paper contracts trading (a fractional bullion system, if you will) on various exchanges across the globe.”

My response below:

1) My understanding is that the 100:1 figure did not come from “analysis” but from a statement made by CPM Group’s Mr Christian. See here. I would be very interested in independent analysis coming to the 100:1 figure that did not rely on Mr Christian’s comment, please provide links.

2) Mr Christian’s comments were confused by many as a statement about the ratio of fractional bullion banking instead of paper to physical trading ratio, which are two completely different things. GATA’s Adrian Douglas did an analysis that concluded the fractional ratio was 4:1. That analysis had serious flaws in my opinion (see here but in the end it was too conservative, with Mr Christian confirming it is generally 10:1 (40:1 in the case of AIG).

Share

Share to

Facebook Google+ Twitter Digg Lintaskan
Artikel Terkait

  • FUD Update
  • Misinterpretation of Gold Lease Rates
  • James Turk says there is no shortage ...
  • The Mint has no gold, again.
  • London Bullion Clearing
Posted by Unknown at 7:35 PM
Labels: Ultracrepidarianism

Newer Post Older Post Home

Entri Populer

  • Indian monsoon & 12.5% interest gold loans
    While writing this article came up which is mildly negative for Indian gold demand (as it is only talking 80 tonnes)...
  • Le traitement de la transpiration excessive par la chirurgie d'agrafage du nerf sympathique
    Le traitement de la transpiration excessive par la chirurgie d'agrafage du nerf sympathique La transpiration excessive est un besoin rée...
  • Indian monsoon & 12.5% interest gold loans
    While writing this article came up which is mildly negative for Indian gold demand (as it is only talking 80 tonnes) as it see...
  • GLD amendment refers to "unforeseen reasons" for unallocated failure
    GLD has some amendments to its terms up for vote, one of which is "that creations may only be made after the required gold deposi...
  • Allocated Gold at Bank of England declines 755 tonnes
    The Bank of England's just released 2014 Annual Report discloses that it was holding 5,485 tonnes of gold as a custodian, down 755 tonne...
  • Happy New Year!
  • Fractional reserve bullion banking and gold bank runs – Frankenstein Free Banking
    The bullion banking and inter-BB clearing system described yesterday has a lot in common with free banking, which is "the competitive i...
  • Gold forecaster with 100% accuracy says gold to remain weak
    I have found a gold forecaster with a 100% accuracy rate. Below is a chart of two of his recent predictions. The first arrow marks the 15th ...
  • Why no direct relationship between price and stocks
    A great article by Keith Weiner explaining why open interest in gold has fallen but in silver it has increased - hint: to do with profit fro...
  • No Indian gold import policy change explains RBI gold swap
    After a lot of speculation about what changes the 2014 Indian budget would bring for gold import policies, we got zip. That now supports my ...

Entri Populer

  • Indian monsoon & 12.5% interest gold loans
    While writing this article came up which is mildly negative for Indian gold demand (as it is only talking 80 tonnes)...
  • Le traitement de la transpiration excessive par la chirurgie d'agrafage du nerf sympathique
    Le traitement de la transpiration excessive par la chirurgie d'agrafage du nerf sympathique La transpiration excessive est un besoin rée...
  • Indian monsoon & 12.5% interest gold loans
    While writing this article came up which is mildly negative for Indian gold demand (as it is only talking 80 tonnes) as it see...
  • GLD amendment refers to "unforeseen reasons" for unallocated failure
    GLD has some amendments to its terms up for vote, one of which is "that creations may only be made after the required gold deposi...
  • Allocated Gold at Bank of England declines 755 tonnes
    The Bank of England's just released 2014 Annual Report discloses that it was holding 5,485 tonnes of gold as a custodian, down 755 tonne...
  • Happy New Year!
  • Fractional reserve bullion banking and gold bank runs – Frankenstein Free Banking
    The bullion banking and inter-BB clearing system described yesterday has a lot in common with free banking, which is "the competitive i...
  • Gold forecaster with 100% accuracy says gold to remain weak
    I have found a gold forecaster with a 100% accuracy rate. Below is a chart of two of his recent predictions. The first arrow marks the 15th ...
  • Why no direct relationship between price and stocks
    A great article by Keith Weiner explaining why open interest in gold has fallen but in silver it has increased - hint: to do with profit fro...
  • No Indian gold import policy change explains RBI gold swap
    After a lot of speculation about what changes the 2014 Indian budget would bring for gold import policies, we got zip. That now supports my ...

Arsip Blog

  • ►  2014 (46)
    • ►  July (4)
    • ►  June (1)
    • ►  April (1)
    • ►  March (6)
    • ►  February (14)
    • ►  January (20)
  • ►  2013 (109)
    • ►  December (22)
    • ►  November (7)
    • ►  October (18)
    • ►  September (16)
    • ►  August (10)
    • ►  July (4)
    • ►  June (3)
    • ►  May (14)
    • ►  April (6)
    • ►  March (2)
    • ►  February (3)
    • ►  January (4)
  • ►  2012 (138)
    • ►  December (13)
    • ►  November (6)
    • ►  October (12)
    • ►  September (12)
    • ►  August (42)
    • ►  July (9)
    • ►  June (13)
    • ►  May (2)
    • ►  April (5)
    • ►  March (3)
    • ►  February (9)
    • ►  January (12)
  • ▼  2011 (119)
    • ►  December (14)
    • ►  November (3)
    • ►  October (14)
    • ►  September (6)
    • ►  August (14)
    • ▼  July (6)
      • Does Fiat Produce an Endless Sea of Wars?
      • Why Won’t Sprott Buy More Silver For PSLV and cras...
      • Forum 1600
      • Turnover and Fractional Memes
      • Pan Asian Gold Exchange Hype
      • Euro Gold
    • ►  June (11)
    • ►  May (13)
    • ►  April (13)
    • ►  March (6)
    • ►  February (10)
    • ►  January (9)
  • ►  2010 (130)
    • ►  December (8)
    • ►  November (6)
    • ►  October (12)
    • ►  September (8)
    • ►  August (10)
    • ►  July (25)
    • ►  June (21)
    • ►  May (15)
    • ►  April (7)
    • ►  March (10)
    • ►  February (3)
    • ►  January (5)
  • ►  2009 (226)
    • ►  December (9)
    • ►  November (10)
    • ►  October (15)
    • ►  September (20)
    • ►  August (18)
    • ►  July (19)
    • ►  June (19)
    • ►  May (24)
    • ►  April (23)
    • ►  March (24)
    • ►  February (25)
    • ►  January (20)
  • ►  2008 (126)
    • ►  December (22)
    • ►  November (16)
    • ►  October (30)
    • ►  September (24)
    • ►  August (17)
    • ►  July (5)
    • ►  June (7)
    • ►  May (5)

Label

  • 6 de vitamines
  • abîmés
  • activity
  • agrandir
  • ail
  • augmentation
  • augmente
  • Avantages
  • AVENT
  • Backwardation
  • Baies
  • Bénéfice tasse
  • beurre
  • blanchies
  • blanchir
  • bring
  • Brocoli
  • Buvez
  • Camomille
  • caverneux
  • cavernous
  • caviar
  • céleri
  • cheveux
  • chirurgie
  • chou pendant
  • cidre
  • comme
  • Comment
  • Confiscation
  • Conseils et moyens
  • couple
  • Credit crisis
  • Cresson
  • cumin
  • d'agrafage
  • dans le corps
  • Dates
  • de cidre
  • de cumin
  • de glycérol
  • de l'option Henber
  • de la transpiration
  • de la viande
  • de lactation
  • de Niplette
  • de romarin
  • de sélénium
  • de vigne
  • débarrasser
  • dents
  • dernière
  • des fesses
  • des oeufs
  • des oignons
  • donne
  • donne les
  • droits des
  • Economics
  • Éloignez-vous
  • embellir
  • English
  • Épinards
  • est très
  • et au citron
  • et de la sauge
  • évidence
  • excessive
  • façon
  • femmes
  • Fermeté
  • feuilles
  • flat
  • Forecasts
  • Fractional reserve bullion banking
  • Français
  • fruits
  • Gold Haters
  • Gold Standard
  • graines
  • grenade
  • Guimauve
  • happiness
  • haricots verts
  • Hedging
  • Herb
  • Herbes
  • Herbs
  • hh
  • highlight
  • hommes
  • How the industry works
  • huîtres
  • Iles
  • important
  • Investing
  • isage
  • joues roses
  • l'assombrisseme
  • la grossesse
  • La marche
  • la période
  • La vitamine B12
  • La vitamine C
  • Ldermiana
  • Le traitement
  • Le vinaigre
  • Les bienfaits du
  • les cheveux
  • Les fruits séchés
  • Les troubles
  • les zones
  • lisse
  • lui Tastvid
  • lumineux
  • magique
  • mains
  • mamelon
  • mammaire
  • Manger
  • Manipulation
  • masculinisée ou Baklh
  • Masque raisins
  • Mélange
  • mettre
  • moderne
  • Money Laundering
  • mousse
  • moutarde
  • Narrative
  • Naturelles
  • Niplette
  • nipple
  • niveau
  • normal
  • nuque
  • Oignons et ail
  • Option
  • ou des figues
  • Outil
  • pastèque
  • Patience
  • peau
  • pendant
  • Perth Mint
  • Placage
  • Plantes
  • plasma
  • plat
  • plus
  • Pois
  • poitrine
  • porcelaine
  • pour
  • pour les
  • pour maigrir
  • Pourpier Herb
  • prendre
  • problèmes
  • PSYLLIUM
  • Recettes
  • récupéré
  • remède
  • Repatriation
  • roncier
  • rose vous
  • santé !
  • sardines
  • saumon
  • sexual
  • sexuel
  • sexuels
  • Shortages
  • Sindros
  • soin complet
  • soin de votre
  • sombres
  • Statistics
  • sympathique
  • Thé
  • thon
  • Thym
  • tit
  • tonique
  • tonique sexuel
  • tool
  • touchent
  • toutes
  • traite
  • traitement
  • treatment
  • Ultracrepidarianism
  • velours
  • vinaigre
  • visage
  • vitamine
  • Vitamine B3
  • Vitamine B6
  • Vitamine E
  • xheli
  • Yogourt

About

Copyright foorex2day 2015 - Template by DIKLAT HMIF UNDIP And Published By Aku Templates Blogger Indonesian