The Death Of The Derivatives Monster & It’s Impact On The Precious Metals SRSROCCO Report The values of gold and silver would be substantially higher if it wasn’t for the massive derivatives market. Americans have no idea that the Derivatives Monster destroyed the ability for the market to properly value physical assets, commodities and the precious metals. I would imagine very few people could state the total value of derivatives in the U.S. Banking Industry in 1990. Actually, I had no idea until I did the research. Of course, I knew it was much lower than hundreds of trillions in Dollars held by the banks today. If we look at the table below, we can see the total notional value of derivatives in the top 25 U.S. Banks. This data came from a paper by the BostonFed.org in 1996 titled Derivatives Activity At Troubled Banks: Adding up these 25 U.S. Banks derivatives holdings, we arrive at a paltry $3.28 Trillion in 1990. The bank with the largest derivatives holdings during the first quarter of 1990 was Citibank with $767 billion. Amazing aye? The number one bank in 1990 didn’t even hold a $trillion in derivatives. Let’s compare this table to the Office of the Comptroller of the Currency Q4 2013 Report on U.S. Bank Trading and Derivatives Activity: So, from 1990 total derivatives at the top 25 banks increased from $3.28 trillion to $45 trillion in 1998. As we can see, total derivatives picked up significantly to reach a total $237 trillion by the end of 2013. Full Text Source: srsroccoreport/the-derivative-monsters-impact-on-the-precious-metals/the-derivative-monsters-impact-on-the-precious-metals/
Posted on: Fri, 10 Oct 2014 12:39:01 +0000
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