If Greece Blows Up And Financial Armageddon Hits, Gold Will Go “Bid Without”
The only way to prevent financial Armageddon is to declare all markets on holiday. However, the most interesting market to watch will be the re-pricing of the market for physical precious metals. Even if they suspend the trading of fraudulent paper futures trading, an over-the-counter – or even “black” market – for physical bullion will develop. This is because, unlike futures contracts, buyers and sellers can effectuate an exchange of physical for fiat paper.
Of course, I believe that this market would open up “bid without,” meaning buyers will stick bids out looking for offers.
There’s nothing more terrifying in the markets than trading a market that goes “bid without” when you are short.
The short position will cause heart attacks and Bill Murphy’s prediction that they will carry gold shorts out of the Comex on stretchers will come to fruition.
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