Comexodus: JPMorgan's Vault Is One Withdrawal Away From Running Out

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wrcmad said:
monopolize said:
wrcmad said:
8 mil oz's is only COMEX warehouse inventory, and the overwhelming majority of COMEX deliveries occur outside of this system using EFP's (Exchange for Physical).
EFP's are privately negotiated settlements by delivery, and may be used to either initiate or liquidate a futures position, effectively bypassing the COMEX warehousing system. Futures contracts and a physical commodity equivalent can be exchanged outside of the exchange and an EFP form can be filed to the clearing department at the COMEX.

I suggest you look up COMEX Gold EFP's.
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Ok from what I've read, exchange for physical has nothing to do with physical delivery. It's merely a form of settlement where one form of paper (futures contracts) is settled with another form of paper (physical commodity equivalent eg. etf). So there's no 'delivery' of physical gold.
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Absolutely not true. I'd love to know where you are getting this info?
It is called an Exchange for Physical for a reason.
Read this: http://www.24hgold.com/english/contributor.aspx?contributor=Tom+Szabo&article=2237184432G10020
And this: http://kiddynamitesworld.com/no-gld-shares-may-not-be-used-to-settle-comex-contracts/
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From the same links that you listed.

From the second link:

http://kiddynamitesworld.com/no-gld-shares-may-not-be-used-to-settle-comex-contracts/

Anyway, the rule change was that the Exchange allowed members to use substantially equivalent instruments in EFP transactions, rather than just physical bullion. The exchange specifically mentioned gold-backed exchange traded funds as suitable for the transactions.

The article says GLD can't be used in place of physical gold if someone calls for physical delivery, but it can be used in a EFP transaction.

The rule can be found here:

http://www.zerohedge.com/article/js-kim-max-keiser-discusses-banker-manipulation-gold-silver-futures

Exchange Rule 104.36 enacted on February 18, 2005, which
allows for the substitution of gold ETFs for physical gold, states that the
"physical" part of the transaction "need only be substantially the economic
equivalent of the futures contract being exchanged" and that "the purpose of
this Notice is to confirm that the Exchange would accept gold-backed
exchange-traded funds ('ETF') shares as the physical commodity component for an
EFP transaction involving COMEX gold futures contracts, provided that all
elements of a bona fide EFP pursuant to Exchange Rule 104.36 are satisfied. Thus,
acceptable gold-backed and exchange-traded ETF funds include, but are not
limited to, the iSharesCOMEX Gold Trust (ticker: IAU), which began trading on
the American Stock Exchange on January 28, 2005."

From your first link, the first paragraph:

http://www.24hgold.com/english/contributor.aspx?contributor=Tom+Szabo&article=2237184432G10020

Adrian Douglas, a Director of GATA, wrote a piece recently called The Alchemist in which he pointed out that the "Exchange of Futures for Physical" ("EFP") mechanism of the gold commodity market allows ETF shares such as IAU and GLD in the definition of "Physical Products". While this is true,...

Note that GLD shares is used in the second example in that article in a EFP transaction.
 
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