New York Time 1:58 P.M. July 17, 2016. Turkish time 9:02 PMAfter announcing coup on the previous evening, Prime Minister of Turkey causes a steep rise in gold prices at the Chicago Merchantile Exchange
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Prime Minister Binali Yıldrım, ” I kiss the people of Turkey on the head.” Turkish PM Binali Yildirim Press Conference After Military Coup (July 16, 2016)
Turkish Prime Minister Binali Yildirim holds a press conference and speaks on the failed military coup attempt in Ankara and Istanbul.”
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“The U.S. dollar gained on the yen on Monday as investors unwound safe-haven trades in the wake of the failed coup in Turkey, while a giant takeover bid in the tech sector and the promise of central bank stimulus lent support to equities.”
How to corner the gold market
Simply convert wheat into gold
The problem Norris had in understanding how a man can sell wheat he does not own is the problem most people have when they attempt to understand commodity future trading. What takes place on future exchanges such as the Chicago Board of Trade is not that people buy and sell wheat and other commodities.
Rather they buy and sell the future delivery of commodities.
When Norris’s hero realized he could corner the wheat market, it was April. The wheat he was buying in the octagonal pit of the Chicago Board of Trade was wheat to be delivered to Chicago in May.
For about 99 percent of the sales taking place today on the floor of the Chicago Board of Trade, wheat “buyers” do not want it delivered to them; wheat sellers have no actual wheat to sell.
Rather, buyers and sellers are hoping to make money on price fluctuations from the time the May wheat contract is first traded until the month of May. In May, when it comes time for delivery, traders who have bought wheat frantically “sell” it; those who have “sold” wheat frantically buy. By the deadline for delivery of May wheat, buyers and sellers resolve their contracts. As a consequence virtually all buyers and sellers have offset their positions; nobody has to deliver any wheat to anybody.
Warning: If you want to corner the gold market, the Commodity Futures Trading Commission (CFTC) may be watching. Or not
Globally, the financial press did the best job of covering the July 15th Turkish coup and its aftermath
The Government of Turkish President Erdogan has enshrined the date of the aborted coup attempt, “Demoracy Day.”
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