The investment world must be catching on to the issues regarding the bullion inventory or alleged lack thereof in the GLD and SLV.
The LME has introduced the newest paper silver flavor of the day- a paper swap to hedge against the monthly average price of paper gold and silver.
The swaps are scheduled to launch January 23rd.
From Kitco:
Market Nuggets: LME To Introduce LMEswaps For Hedging Metals Against Monthly Average Price
(Kitco News) -The London Metal Exchange says it will be introducing a new product, called LMEswaps, designed for members of the metals community who need to hedge against the monthly average price. LMEswaps will be introduced for all non-ferrous metals on Jan. 23. They will be tradeable on LMEselect and the 24-hour telephone market, allowing participants to enter into a fixed price and settle the difference against the floating price, or monthly average settlement price, at the end of the averaging period.
By Allen Sykora of Kitco News; asykora@kitco.com
