A recurring theme in precious metals discussions is the naked shorting of GC/SI contracts, which some expect will eventually trigger a force majeure event that will bankrupt both the naked and the "true" shorts, and send PM prices to the moon. ("The Naked and the True"
)
Are there any other commodity futures that are subject to a significant amount of naked shorting ?
Are there plausible circumstances that would trigger force majeures in non-PM markets ?
Does naked shorting have other trading impacts, besides price suppression and potential force majeure ?
Considering 100+ years of contract rolling on many commodities, I'd imagine that some commodities might by now have a large surplus of contracts vs. physical supply. (Does a naked contract ever die of exposure ?)
Any perspectives ?
)Are there any other commodity futures that are subject to a significant amount of naked shorting ?
Are there plausible circumstances that would trigger force majeures in non-PM markets ?
Does naked shorting have other trading impacts, besides price suppression and potential force majeure ?
Considering 100+ years of contract rolling on many commodities, I'd imagine that some commodities might by now have a large surplus of contracts vs. physical supply. (Does a naked contract ever die of exposure ?)
Any perspectives ?
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