lol they cant / wont default. they have the option on ALL contracts to deliver in USD* the system will grind on *( this is still not a DEFAULT oficially -- all that matters not some BS views from some random on some internet forum -- before you say paying out in USD instead of silver IS a default )
If the Comex pays out all it's contracts in cash because it doesn't have the underlying bullion (yes they are allowed to do this) that's a default.
Officially it is NOT a default and that is all the markets will care about like I said some random opinion from someone on an internet forum saying it IS a default does not make it true oficially
If there comes a time when the Comex pays out only cash and no bullion then nobody would buy Comex contracts. Gold buyers would see it as a default, regardless if there's a clause in their contracts saying the Comex has the right to pay them in cash.
maybe maybe not it is still not a default, even if they did pay out ALL contracts over a sustained period of time but that wont happen as I believe the majorty of the contracts dont ask for delivery. Still buyers know it is a possibility that it could happen BEFORE buying into the contracts that pay outs in USD is a possibility. 1 or 2 contracts here or there paid out in cash would even raise a blip on the radar and it is all they would need to do to keep the status quo.
I've consistently said the Comex has the right to pay cash instead of bullion. If their vaults become empty one day and they have to fulfil all their contracts in cash, this will be seen as a default and a lot of that cash will go towards securing real bullion. This will impact the physical price greatly.
Source: Jsmineset.com As long as physical gold remains at a premium above future that is above the cost of insurance and transportation, the lower the inventory of gold at the COMEX goes. A futures exchange without a warehouse inventory becomes a cash exchange. This is the emancipation of physical gold from the manipulative capacity of No-Gold, Paper Gold.
My order of two days ago already arrived. Fastest delivery seen so far. Reason? It's silver sold back to dealer, by some 'former silver stacker', I suppose.
Why does a product seller hold a smaller stock of his product? Because he expect less to be delivered in the near future? In the end, it's the demand side, those that want or not want the bought gold delivered, that determine the amount that the seller should stock. So if the Comex gold stock drops, it might be because they don't foresee much need to deliver it? Which % of all the gold bought by Comex players, ends up to be delivered to them? 1%? 5%? I then wonder, what does it matter? It's simply customers that are just very temporary, they aren't stacking gold or so, all they try is to chew out some free dollars either from others trying the same, either from those that do stack gold, thus let it deliver. So the statement could be made, that the Comex futures market is by its nature, the reason it was created, a 'cash exchange'.
Julie. Don't waste our time showing us the dwindling Comex supplies. They can always pay cash, so there'll never be any problem with the Comex. :lol: :lol: :lol:
lol only about 1% of these contrats are actually delivered you are living in a fantasy world if you think they will default you are completetely delusional if you think a few of these 1% of all contracts being paid out in USD instead of delivered in gold would even rate a mention anywhere let aone spike the gold price up.
Not half as impressive when the whole picture is shown. Actually, compared to the price plunge that most ignore as "just a bump", it looks very placid. Source:
That is correct it wont matter one bit. Because that is a fantasy scenario dreamed up in your head alone. Even IF it did happen it would only affect 1 % of contracts -- 1% of the contracts that actually call for delivery. Thats NEVER going to happen for any sustained period (them have absolutely no gold in their vaults -- ). and in this fantasy world of yours where 1 or 2 contracts of these 1% of TOTAL contracts that actually call on delivery are forced to take cash because they don't have the inventory on hand wont matter one bit, as they will restock / make up some BS excuse as to why it happened and carry on as normal. so tell me what scenario do you see in your tinfoil wrapped head do you see making the other 99% of contract owners call for delivery of physical? that would force the fantasy situation that you like to describe above?
