Does anyone in Turdland understand what Harvey Organ is talking about on a daily basis?

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lilbromarky1
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Does anyone in Turdland understand what Harvey Organ is talking about on a daily basis?

I read this guy's blog a few times a week.   I need some terms defined in order to gain an understanding of what he's trying to do with his blog.  Here are my questions:

-What is the definition of "the customer"

-What is the definition of "the dealer"

-What is the defintion of a "notice", who is sending it down, and who are sending it down to?  Why is a notice sent

-What is does it mean to "serve a number of oz" of metal?

These are questions that might require an entire youtube video to answer.  The problem is I've never seen or heard of someone actually explaining or confirming what Harvey Organ blogs about every day.  Are there any experts here that can help?

Edited by admin on 11/08/2014 - 06:08

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Brotha Bob
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Someone else asked this awhile ago

Someone else asked this a while ago. So the short sweet answer are.
Dealers = bullion dealers/ banks

Customers = participants who are not dealers. Funds, firms, individuals

Notice = if you are holding a future contract for the current month, you are given notice when your money. Will be traded for gold or silver. Not a futures settle the same day. But, must be settled in it's month. The exchange sends the notice to a long and a short. The long is notify he will be getting gold and loosing cash, the opposite for the short; he will be loosing gold and get cash. The notice settles the futures contract, the exchange of cash for gold.

Silver druthers trade in 5,000 ounces blocks, gold trades in 100 ounce blocks. Ounces served, depends upon the contract. 2,000 ounces serve for gold means 20 contracts were settled that day. 20,000 ounces for silver means 4 silver contracts were settled.

Go to the CME site and read up on futures contracts. That's the information Harvey is providing in his daily update.

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Dr Jerome
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I'll give it a stab too

good explanation Brotha bob...makes sense to me

I am not an expert, but as a non-expert perhaps my perspective might make sense to other non-experts... But I will stand down when others can explain this more effectively.

Essentially, Comex is a store and Harvey compared inventory with orders.

He looks at the amount of silver that is in the warehouse for sale and subtracts the number of orders to buy that silver. It got very interesting last April & may when the possibility of comex running out of silver was very close. Those who sold contracts would have been on the line to deliver metal—metal that did not exist.

The point is that when comex runs out of silver, people holding long contracts to buy that silver will not get their metal (because our Bankster friends are selling more silver contracts that there is physical silver available for purchase). This would be a default. it has happened before with nickel and Comex charged the sellers who could not deliver a "fine" for every day that they delayed delivery

-What is the definition of "the customer"

Customers are those who receive physical silver and store it in Comex approved vaults. their silver is not counted in the number of ounces that are available for delivery (for sale)

-What is the definition of "the dealer"

The dealers are ??? Owners of silver stored in comex vaults where that silver is available to be delivered to a buyer of a contract. The number of ounces available for delivery has been declining from over 100 million last year to about 25 million (or less) today

-What is the definition of a "notice", who is sending it down, and who are sending it down to?

The buyer of a silver contract (5000 oz) notifies Comex (the notice)  that they wish to receive the metal at the end of the contract period for that futures contract. They have to deposit the full amount of cash to pay for their delivery. 

 -Why is a notice sent

The buyer of a futures contract sends the notice to take delivery of the physical metal, rather than just selling the contract before the deadline, or "rolling" the contract (selling a September contract and simultaneously buying a December contract)

-What is does it mean to "serve a number of oz" of metal?

The people at comex bring out the silver bars and reassign them (buy serial number) to the new buyer. the buyer can withdraw the metal, have it sent to another vault, or leave it at the registered comex vault.

OK, now you experts out there can straighten me out.

Brotha Bob
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See link

http://www.tfmetalsreport.com/forum/2367/understanding-harvey-organs-posts

Please check out link above for more Harvey explanations

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lilbromarky1
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Wow bob and jerome that was

Wow bob and jerome that was great.  Just what the doctor ordered.  Thank you for the understanding!

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Brotha Bob
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Now that you understand

Now that you understand. Don't go playing in the paper market. The whales eat the minnows.

If you really want an education, read Harvey every Saturday. So great info and analysis.

BTW, I read Harvey every day without fail

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lilbromarky1
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Haha!  I wasnt planning on

Haha!  I wasnt planning on trading paper.  For many reasons

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