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PM Futures Market

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#1
Can someone explain how the PM futures market works? Also what is the difference between COMEX price and the spot price Kitco shows?
 

Strawboss

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#2
The futures market exists to manipulate the price of gold and confuse the market so that TPTB can continue with their shell game rigging the system and defrauding everyone else.

Neither the COMEX price nor the Shitco price represent golds true value. They simply trumpet the "current fake price" as instructed.
 

Scorpio

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#3
As with any futures market, contracts are created and you put up dough in leverage to hold a position either way in the futures.

Each month is time value. The contracts are coded by delivery months. April, Jun, Aug, etc for gold.

When the contract is coming near an end, you can sell or buy out, then re trade the next contract.

The spot price is a varying and different animal. Kitco is just one of the references to current 'spot' price. They are meant to represent the current fiat value of a metal. You can agree or disagree, no matter, as many will use that in the offers to you.

For instance, a local LCS may pull up kitco to check current price, then offer you whatever back of that price for your metal. I have seen as much as $3 back of spot for silver from some of these clowns, or 100 bucks on a AGE. Which only means the spot is a start point, and from there it is your job to find the best fiat value for your metals. Just because something is posted on a kitco or other, doesn't square with what your actual offer will be.

that is the very very short version.

Trading gold and silver futures contracts
https://www.investopedia.com/articles/optioninvestor/06/goldsilverfutures.asp


How Precious Metals Like Gold Can Be Arbitraged
https://www.investopedia.com/articles/active-trading/021715/precious-metals-arbitrage.asp
 
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#4
As with any futures market, contracts are created and you put up dough in leverage to hold a position either way in the futures.

Each month is time value. The contracts are coded by delivery months. April, Jun, Aug, etc for gold.

When the contract is coming near an end, you can sell or buy out, then re trade the next contract.

The spot price is a varying and different animal. Kitco is just one of the references to current 'spot' price. They are meant to represent the current fiat value of a metal. You can agree or disagree, no matter, as many will use that in the offers to you.

For instance, a local LCS may pull up kitco to check current price, then offer you whatever back of that price for your metal. I have seen as much as $3 back of spot for silver from some of these clowns, or 100 bucks on a AGE. Which only means the spot is a start point, and from there it is your job to find the best fiat value for your metals. Just because something is posted on a kitco or other, doesn't square with what your actual offer will be.

that is the very very short version.

Trading gold and silver futures contracts
https://www.investopedia.com/articles/optioninvestor/06/goldsilverfutures.asp


How Precious Metals Like Gold Can Be Arbitraged
https://www.investopedia.com/articles/active-trading/021715/precious-metals-arbitrage.asp
I am familiar with spot price on Kitco as a means of determining what I will pay when purchasing PM's I just wasn't sure what I was looking at when I went to Yahoo Finance to check spot price. Kitco will have the bid and ask price where Yahoo Finance just has one COMEX price. So I assumed there is a Futures Price (as shown on Yahoo) and a real time spot price (as shown on Kitco). Is that correct Scorpio?
 

ZZZZZ

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#5
Can someone explain how the PM futures market works? Also what is the difference between COMEX price and the spot price Kitco shows?
Futures contracts go out for many months, even years. The spot price is the front-month (nearest to expiration) futures price.
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Scorpio

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#6
The spot price is the front-month (nearest to expiration) futures price.

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Not necessarily, the 2 will differ dependent on source. For instance, kitco does not use front month futures.

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yahoo finance is using a comex price or a futures price, which will differ from spot

the other variation you will see is a timing thing, many sites have delays, 5 min, 15 min, or other. Meaning, 2 sites can be looking at the same reference point, yet the one with the shorter delay will be more accurate to current.

real time (no delay) of course is the best
 
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#7
The spot price is the front-month (nearest to expiration) futures price.

------------

Not necessarily, the 2 will differ dependent on source. For instance, kitco does not use front month futures.

-----------

yahoo finance is using a comex price or a futures price, which will differ from spot
Cool, thanks!