Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Why Most Investors LOST Money by Investing in ARK FUNDS - 27th Jan 22
The “play-to-earn” trend taking the crypto world by storm - 27th Jan 22
Quantum AI Stocks Investing Priority - 26th Jan 22
Is Everyone Going To Be Right About This Stocks Bear Market?- 26th Jan 22
Stock Market Glass Half Empty or Half Full? - 26th Jan 22
Stock Market Quoted As Saying 'The Reports Of My Demise Are Greatly Exaggerated' - 26th Jan 22
The Synthetic Dividend Option To Generate Profits - 26th Jan 22
The Beginner's Guide to Credit Repair - 26th Jan 22
AI Tech Stocks State Going into the CRASH and Capitalising on the Metaverse - 25th Jan 22
Stock Market Relief Rally, Maybe? - 25th Jan 22
Why Gold’s Latest Rally Is Nothing to Get Excited About - 25th Jan 22
Gold Slides and Rebounds in 2022 - 25th Jan 22
Gold; a stellar picture - 25th Jan 22
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Short-Free Price" For Silver is $101.35

Commodities / Gold and Silver 2012 Dec 15, 2012 - 01:41 PM GMT

By: Submissions


Afcarl submits:

"Short-Free Price" For Silver is $101.35 ( $33.11 + $68.24 ) Dollars Per Ounce:
The Silver Short-Free Price or SFP, is simply the Silver Spot price ($33.11/oz) plus the price increase ($68.24/oz) that would result from the purchase of all the current Silver Short contracts on the COMEX (117,651 Contracts of 5000 oz per contract). As the number of Silver Short contracts are reduced to zero, the Silver "Short-Free Price" becomes equal to the Silver Spot price.

The Short-Free Silver Price clearly demonstrates and quantifies the manipulative COMEX market impact of large short contract positions, and the importance of position limits on the COMEX enforced by the CFTC.
The "Short-Free" Price is equal to the last day close spot price plus the "Equivilent Short Delta Price Increment", or ESDPI, associated with purchasing the total number of ounces of gold or silver corresponding the the total short contracts for the same last day close, and computed as:
SFP = ( last day close Spot Price ) + ( last day close "ESDPI")
The "Equivilent Short Delta Price Increment", or ESDPI, may be calculated by looking at the total number of Short COMEX contracts and the "Historical Market Impact", or HMI, and the total number of Short COMEX contracts, and computed as:
ESDPI= ( Total number of COMEX Short contracts ) x ( Number of ounces per COMEX contract ) x ( "HMI" in dollars per ounce )
The "Historical Market Impact", or HMI, may be calculated by looking at various recent historical instances of large sell-offs or purchases, where the corresponding volume of ounces sold or purchased from a single historical transaction or tight batch executed together, and the observed change in spot price associated with the transaction volume can be matched together, and computed as:
HMI = ( change in spot price associated with the historical transaction / transaction volume in ounces associated with the historical transaction )
    a) Spot price immediately prior to historical transaction = $33.01 per oz.
    b) Spot price immediately after historical transaction = $32.72 per oz.
    c) Volume of historical transaction = 500 contracts
    d) Number of ounces per contract = 5000 oz.
    e) Last day close Spot price = $33.11 per oz
    f) Current Total Number of Short COMEX Contracts = 117,651 contracts
HMI = ( $33.01 - $32.72 per oz. ) / ( ( 500 contracts ) x ( 5000 oz per contract ) ) = 0.000000116 $/oz
ESDPI = ( 117,651 Short contracts ) x ( 5000 oz/contract ) x ( 0.000000116 $/oz ) = $68.24 per oz
SFP = ( $33.11 per oz. ) + ( $68.24 per oz. ) = $101.35 per oz.
The SFP and the ESDPI may also be computed on an individual Short contract holder (read: JPM) basis to more readily demonstrate the impact of the individual entities all by themself to further substaniate and quantify market manipulation as a direct consequence of large short positions, and the importance of position limits.
NOTE: The pre- and post- transaction spot prices were taken from the Kitco 24 Hour Spot Silver (Bid) chart for December 7th, 2012 at approx. 8:15 a.m. NY Time price drop. For the purposes of the example, It was assumed that the price drop was due to the "non-profit" sale of 500 contracts. Access to volume information would provide a more accure number. The Last day close Spot price was obtained for the same date from the same chart published in the Ed Steer's Gold & Silver Daily Newsletter for Saturday, December 8th, 2012. The number of Current Total Short COMEX contracts was also obtained from the comentary in the same date Newsletter. Better data would obviously result in a more accurate answer.
    The reoccurring theme, is that the CTFC Commissioners refusal to enforce the law has signaled to all parties in the physical silver COMEX futures market, the NYSE and all the various other exchanges in which the trading of silver-related stocks and options are conducted, is that it is open season for manipulation of the silver and silver related markets, regardless of how illegal and blatant it has become, and regardless of how damaging it has been and will continue to be to the multitude of small private investors.

By AfCarl

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in