> If speculators buy up everything via futures then that
> will drive prices up and they'll be able to dump it at
> a profit (well, the ones who get out in time will).
Right - so that's definitely not a long-term business model for sustaining higher prices. Rogues might get away with short term manipulation, but if you were doing that and working for a firm, there's a fair chance they'd be locked up.
> Here is a jumping off point [1].
Thanks. ETFs acting on a fractional-reserve basis - interesting topic. That's different to futures though. I don't buy the ratios, either.
>Right - so that's definitely not a long-term business model for sustaining higher prices.
Ah, I apparently missed the part where this was suggested as a long term thing. In that case, you're right. This isn't a method for long term price manipulation.
>Thanks. ETFs acting on a fractional-reserve basis - interesting topic. That's different to futures though. I don't buy the ratios, either.
The info came from a Wall street exec who said that the ratios were easily 100:1, perhaps more but not to worry because blah blah, you can't understand, blah blah, gold futures, etc. I didn't glean much info from it because he didn't seem all that interested in giving much.
