Major buying of PM to meet contractual obligations in December 2010

Just a little information I got from Mining Speculator's email Alert which I just got this afternoon.

PS: I can't quote word to word of the content of the email, it would be a breach of Copyright agreement. (It is a paid subscription).

In essence this is what the information is about:

Price of Gold and Silver is set to move higher as we approach December 31st, 2010. The reason being is there will be a large physical metals buying in the next 2 weeks by COMEX, LBMA and other companies who'd been (naked) shorting PM.

Contracts for December's metal shorts that demanded physical metal delivery must be met by 31st December 2010 and there appears to be a significant shortage of the actual physical metals available out there to purchase (to cover the shorts).

If the available physical Gold/Silver to purchase out there simply not enough (ounce by ounce) to meet ALL delivery demand, we will start seeing many PM short(ers) defaulting. And those who managed to acquire these metals will have to OUT BID all the other PM short(ers). The loss on their part will be MASSIVE.

Contact defaults will trigger alarm bells in those investor heads that don't ask for delivery, spooking them to ask for delivery!

Stay tuned, this Christmas will come with (PM) fireworks!

 

I've always thought that if there was ever a good time to try to get away with something BIG, you'd want to do it over the Christmas/New Year period. Everyone is on holidays, and spends a lot of time enjoying a drink or 2 ... No-one would pay much attention to a massive bank default in the US, or some 'obscure' exchange running out of silver.