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A Potential Crisis In Comex Gold Market

serf
It's heating up on paper gold as investors are demanding physical gold instead of fiat currency.
                                           serf
    https://www.zerohedge.com/commodities/potential-crisis-comex-gold

Bullion banks are between a rock and a hard place. For years they’ve been playing the hedge funds as an angler hooks and plays a fish. That game has ceased and there is no easy way for them to get level. For the moment they are trying to put a lid on the price, but the cost has been rising open interest, and therefore rising mark-to-market positions.

The August active contract runs off the board at the end of this month and bullion banks are likely to be forced into large delivery volumes again. Furthermore, the exchange for delivery arbitrage facility between Comex and the LBMA is broken, allowing Comex premiums to London spot to go unchallenged.

It is increasingly possible the gold contract is evolving into deep crisis, and that force majeure might have to be declared if, as seems increasingly inevitable, a wider banking crisis ensues.



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Comments

9 comments

Date Votes
  • serf
    Here's the real rub! B)



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  • Ricci.Wright
    The only gold I own is on my Rolex and I don't want any more. Never made sense to me unless you buy it low and then sell it high like any other investment. I don't want any gold laying around, I would much prefer to invest in guns.
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  • gruntled2
    Quite a long time ago there was a surge in the value of gold (as best I recall to over $600/oz) & a lot of people tried to cash out from a large coin dealer in Los Angeles. (Johnathan's)  He didn't have the actual gold he had sod them & couldn't cover the promises he had made . https://www.latimes.com/archives/la-xpm-1985-03-19-mn-31723-story.html For me and quite a few others it actually worked out pretty well. As he was trying to stay afloat he sold off quite a bit of his inventory of other items at nice prices. I bought several items during that time without any idea of what was going on.
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  • serf
    Absolute power corrupt absolutely, just look at Congress delegating the making and printing of money to The Federal Reserve, that's soon to be a defunct entity and Congress washing their hands like Pilate did with Jesus and claim they are innocence with any judgements or lack of Character. Governments are nothing but a scam to get rich off we the people.
                                                          serf 
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  • waltermoe
    There is an old adage when it comes to gold:  If you can't hold it you don't own it. 
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  • mrmike08075

    Is paper currency any better these days???

    Mike

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  • bustedknee
    ....I don't want any gold laying around, I would much prefer to invest in guns.
    Precious metal is precious metal, but when it goes bang, it could be more precious.

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  • Don McManus
    serf said:
    Seriously doubt the St. Louis Fed had anything to do with that chart.
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  • Mobuck
    Who needs gold? I invested in brass and lead which trumps gold every time.
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