/biz/ - Business & Finance

>>29289816
Uhm.. Uh, well as you probably know over the last few decades the firm has been naked short selling Silver via the COMEX... this has been enormously profitable for us, as im sure you noticed...

I have.

Well the firm is currently doing a considerable amount of this business every day. Now the problem, which is I guess, is why we are all here tonight... is that we depend on nobody taking large amounts of physical delivery on the COMEX... Thereby posing a challenge from a risk management standpoint...

And that challenge being?

...We might have to start covering our shorts as the physical demand increases and the COMEX faces default...

I see.

But the key factor is these are essentially just paper contracts, so that has allowed to push the leverage, considerably beyond what you might be willing or allowed to do in any other circumstance... thereby.. pushing the risk profile without raising any red flags.