The exact same thing happened in silver in May 2011. It dropped 30% in one day the day after Osama Bin Laden was killed and 40% in 15 seconds in September that year. That's why I developed the tranche strategy I discussed in one of your previous posts, having pre-determined GSR ratios to swap silver to gold, knowing the silver price is prone to those rapid price swings. If you bought at a GSR of 120 at the start of the COVID lockdowns, swapping from 75-55 in regular, pre-determined intervals removes the emotion, both of price spikes and crashes.
That said, I've known every since 2011, and later when I worked at one of the largest financial futures exchanges on the planet that derivatives set the price of everything on the planet from oil, to orange juice, to silver - and that all market pricing is determined on the futures markets. That same exchange was one of the first that launched Bitcoin futures while I was working there and why I never got back into crypto after.
That's what caused the Global Financial crisis of 2008. Mortgaged Backed Securities traded on the derivatives market and institutional actors liquidating their positions in a way that caused cascading margin calls as leverage on those positions caused exponential losses as the underlying prices of those securities dropped.
The ones with insider information who sold BEFORE the market caught on made out like bandits, while the entire global financial system essentially crashed and needed to be bailed out by the US government.
The idea of free-market capitalism died back then, and we've been living in a derivatives mirage, where the institutional "TBTF" who own the derivatives market basically set the price of everything - irrespective of inconvenient things like supply and demand dynamics of the underlying physical commodity.
Oh wow thats quite the involvement you've had lol! The deeper you go the more you understand what's against you. Thanks for sharing your story! Quite interesting to read
The exact same thing happened in silver in May 2011. It dropped 30% in one day the day after Osama Bin Laden was killed and 40% in 15 seconds in September that year. That's why I developed the tranche strategy I discussed in one of your previous posts, having pre-determined GSR ratios to swap silver to gold, knowing the silver price is prone to those rapid price swings. If you bought at a GSR of 120 at the start of the COVID lockdowns, swapping from 75-55 in regular, pre-determined intervals removes the emotion, both of price spikes and crashes.
That said, I've known every since 2011, and later when I worked at one of the largest financial futures exchanges on the planet that derivatives set the price of everything on the planet from oil, to orange juice, to silver - and that all market pricing is determined on the futures markets. That same exchange was one of the first that launched Bitcoin futures while I was working there and why I never got back into crypto after.
That's what caused the Global Financial crisis of 2008. Mortgaged Backed Securities traded on the derivatives market and institutional actors liquidating their positions in a way that caused cascading margin calls as leverage on those positions caused exponential losses as the underlying prices of those securities dropped.
The ones with insider information who sold BEFORE the market caught on made out like bandits, while the entire global financial system essentially crashed and needed to be bailed out by the US government.
The idea of free-market capitalism died back then, and we've been living in a derivatives mirage, where the institutional "TBTF" who own the derivatives market basically set the price of everything - irrespective of inconvenient things like supply and demand dynamics of the underlying physical commodity.
It's been a surreal 18 years...
Oh wow thats quite the involvement you've had lol! The deeper you go the more you understand what's against you. Thanks for sharing your story! Quite interesting to read