Comments on: Potential COMEX Gold Fail

By: COMEX Gold And Silver Margin Requirements Raised

COMEX Gold And Silver Margin Requirements Raised — Thu, 17 Dec 2009 06:29:20 +0000

[...] If they do not do any of this the broker can sell his securities to meet the margin call. If the exchange is unsuccessful in executing margin calls and receiving enough capital then the exchange could fail. [...]

By: Gold And The Oil Majors Revisited

Gold And The Oil Majors Revisited — Sat, 28 Nov 2009 19:27:14 +0000

[...] the risk of a potential COMEX failure to deliver gold is a possibility for brevity I will not explain the mechanics nor current state of the [...]

By: Trace Mayer, J.D.

Trace Mayer, J.D. — Fri, 27 Nov 2009 23:22:09 +0000

What if the LBMA London Fix significantly exceeds the COMEX limits?

By: Craig M

Craig M — Fri, 27 Nov 2009 20:08:07 +0000

The COMEX and other exchanges have LIMIT UP and LIMIT DOWN rules. A $1,000 up in Au and $100 up in Ag in 1 day are not possible and relegated to wet dreams. Nonetheless, the comments about counterparty risks are on target.

By: Andreas

Andreas — Thu, 26 Nov 2009 22:30:20 +0000

never invest in gold/silver for any reason other than INSURANCE … forget about making money and be glad if you own physical coins as these will enable you to exchange/barter for goods and services.

By: Andreas

Andreas — Thu, 26 Nov 2009 22:27:51 +0000

as always a picture is worth a trillion words and that medallion says it all!

By: Massive Institutional Gold Market Change

Massive Institutional Gold Market Change — Tue, 01 Sep 2009 08:56:45 +0000

[...] parties involved and is a primary reason for exchanges. But the failure of an exchange, like the COMEX failing to deliver, is possible and almost happened with Deutsche Bank according to securities attorney Avery Goodman. [...]

By: Platinum Liquidity Increases

Platinum Liquidity Increases — Tue, 14 Jul 2009 07:20:49 +0000

[...] appears that the same paper problem which plauge gold and silver likewise affects platinum although not to the same degree. Platinum has been steadily increasing [...]

By: Gold And Silver Coin Shortages Again | RunToGold.com

Gold And Silver Coin Shortages Again | RunToGold.com — Tue, 23 Jun 2009 08:31:12 +0000

[...] is considered the price is really just a price. If there is a black swan event, like a COMEX gold failure to deliver, then the price determinant will shift and likely be much higher. While shortages are developing [...]

By: PETER S

PETER S — Fri, 19 Jun 2009 22:58:04 +0000

If gold goes to $500, then the world will have already gone to hell in a handbasket. The only feasible way for this to happen is for the US to issue new US dollars that are backed by gold and which are worth twice as much (if not 10 times as much) as the current US dollar. What do you say Trace?

By: Trace Mayer, J.D.

Trace Mayer, J.D. — Fri, 19 Jun 2009 14:29:31 +0000

I doubt we will see $500 but it is possible. The FRN$ price is irrelevant anyway and what matters is the ratio between gold and stocks or real estate. The damage to confidence has been done and I have been talking with quite a few people who are starting to move away from fiat currencies into the bullion alternatives for cash. Two recent examples:

#1, was asked me for some help with gold clauses with long-term multi-million dollar contracts and also how to secure a recent $25M+ court settlement from currency risk.

#2, has informed me that he will be taking all free cash flow every month and plowing it into gold/silver; about $175,000-250,000/month depending on how business does. I think he mentioned that one of his accounts with $600k only yields $300/month in interest so he would rather own bullion.

By: Jay H Gomez

Jay H Gomez — Fri, 19 Jun 2009 13:07:36 +0000

Interesting interview last night with Cody? and Andrew Schiff (?) ((Pacific capital,Peter’s brother?)) (FOX) re: where Gold is going.Cody says deflation and lack of $$ will drive metal owners to sell and depress price of metals ($500 Gold).Says he called $30 oil and he KNOWS he is right again.Refers to $$$ in banks will NOT pass through into economy.
Schiff says inflation and massive amount of $$$$ will drive metals MUCH higher.
What do you think

Too bad Adolf, you lose again, need my autoloader to play Russian roulette again? (GREAT video)
Jay
p.s.George Thorogood said it best,”I DON’T TRUST ANYBODY with MY girl, not even the President (Billy).

By: Trace Mayer, J.D.

Trace Mayer, J.D. — Fri, 19 Jun 2009 03:58:31 +0000

It could be resolved like how the LME failure to deliver nickel was. The point of the article is that your broker's assurance and the COMEX's assurance are subject to counter-party risk and promises can be broken leaving you holding the empty paper bag while someone else has the 10,000 silver ounces. How it will ultimately play out? I am not sure; there are a lot of unknown facts and it will be based on individual human action which is impossible to predict but I would wager that if the COMEX fails to deliver gold or silver then Jason's scenario is most probable.

By: David

David — Fri, 19 Jun 2009 03:25:14 +0000

Just like that? Silver goes to $100 next week and I can not collect on my two contracts? I have physical silver, I thought I would be able to make a little wind fall when the price takes off. How certain are you that I will not get my one million frn$ for my two contracts? My broker assures me that the counter party will pay me or the Crimex. Will there be insurance at the price of $100? If in fact you are correct, it is as Jason says, contracts at any price are a bad bet. I am very interested in your response.