Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
THEY DON'T RING THE BELL AT THE CRPTO MARKET TOP! - 20th Dec 24
CEREBUS IPO NVIDIA KILLER? - 18th Dec 24
Nvidia Stock 5X to 30X - 18th Dec 24
LRCX Stock Split - 18th Dec 24
Stock Market Expected Trend Forecast - 18th Dec 24
Silver’s Evolving Market: Bright Prospects and Lingering Challenges - 18th Dec 24
Extreme Levels of Work-for-Gold Ratio - 18th Dec 24
Tesla $460, Bitcoin $107k, S&P 6080 - The Pump Continues! - 16th Dec 24
Stock Market Risk to the Upside! S&P 7000 Forecast 2025 - 15th Dec 24
Stock Market 2025 Mid Decade Year - 15th Dec 24
Sheffield Christmas Market 2024 Is a Building Site - 15th Dec 24
Got Copper or Gold Miners? Watch Out - 15th Dec 24
Republican vs Democrat Presidents and the Stock Market - 13th Dec 24
Stock Market Up 8 Out of First 9 months - 13th Dec 24
What Does a Strong Sept Mean for the Stock Market? - 13th Dec 24
Is Trump the Most Pro-Stock Market President Ever? - 13th Dec 24
Interest Rates, Unemployment and the SPX - 13th Dec 24
Fed Balance Sheet Continues To Decline - 13th Dec 24
Trump Stocks and Crypto Mania 2025 Incoming as Bitcoin Breaks Above $100k - 8th Dec 24
Gold Price Multiple Confirmations - Are You Ready? - 8th Dec 24
Gold Price Monster Upleg Lives - 8th Dec 24
Stock & Crypto Markets Going into December 2024 - 2nd Dec 24
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold CME/COMEX December Delivery Default Pointing to Widespread Default?

Commodities / Gold and Silver 2012 Dec 19, 2012 - 11:36 AM GMT

By: Submissions

Commodities

The CME announced today a case of  "force majeure" regarding one of its physical gold storage facilities, Mantra, Tordella & Brookes (MTB), managed for the COMEX, located in the southern part of New York City, in an area that was inundated during the storm known as Sandy.


MTB’s warehouses were holding 29,276 ounces of gold for the COMEX as of November 23, 2012.

A case of force majeure is a clause in a contract that authorizes the parties to renege on their obligations in extreme cases, in this case the non-delivery of physical gold due to a storm and water damages.

As explained by Hardinvestor.net and Silverdoctor.com, this case of force majeure, curiously, is happening on the greatest deadline of the year for the COMEX : the physical delivery of gold for the December 2012 contracts.

So, for holders of December 2012 contracts, physical delivery is jeopardized (although it is possible to get delivery via Brinks, but at a prohibitive cost).

It may be just a coincidence, but more and more rumours abound pointing toward a massive scarcity of physical gold and silver.

Let’s recall that GATA  has stated for years, and they have proof, that for each ounce of gold in existence, a hundred ounces of « paper gold » have been sold on the markets... This short position will become untenable should there be a massive demand from investors wanting to convert those contracts into physical gold.

The recent gold reserve repatriation requests from many countries (Venezuela, Germany, Austria, etc) reveal a growing worriness (at the highest State level) about  the materiality of those gold reserves that belong to the countries but are managed and held by the central banks (mainly the New York FED and the BOE, the Bank of England).

Will the financial/banking sector be able to handle all delivery requests for physical gold and silver that it sold in the form of « paper » gold certificates if a massive demand materializes from holders of said paper certificates ?

This global movement toward tangible assets will not reverse. The level of mistrust has risen to a point of no return, and the monetary policies leading to the destruction of the currencies’ purchasing power are only aggravating this mistrust.

We shall soon know more, in the months to come, about an eventual delivery default or any convertibility problem into physical gold from the COMEX or another ETF issuer.

The recent LIBOR scandal should make us reflect on the sheer magnitude of all the manipulations the banking system has been able to realize up to this day. One should not exclude the reality of a fractional gold and silver market that functions only until delivery is requested.

In this context, investors must avoid all exposure to any counterparty default risk and hold their gold and silver in physical form and in their own name.

Many indications are pointing toward massive scarcity of physical gold and silver, so invest and protect your wealth accordingly.

Fabrice Drouin Ristori - Founder/CEO Goldbroker.com (FDR Capital) 

ceo@goldbroker.com

Twitter : ;@FabriceDrouin

Goldbroker.com on Twitter and Facebook

Goldbroker.com is a physical gold and silver broker recommended by GATA (Gold Anti-Trust Action Committee)

© 2012 Copyright Goldbroker - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in