Refused delivery of 2 gold contracts?

black5wan

black5wan

Well-Known Member
Silver Stacker
Signs of extreme physical tightness in the gold and silver markets continue to intensify, with reports of banks and firms refusing their customers physical delivery of their own bullion increasing nearly by the hour.
The latest report comes from the CME's former CEO Leo Mahlamed, who reportedly was refused delivery of 2 gold contracts Tuesday!
Mahlamed attempted to stand for delivery of 2 April gold contracts (a measly 200 oz), and according to reports from the floor, the CME reportedly refused to physically deliver 200 oz of gold to its former CEO, and would only provide Mahlamed a warehouse receipt!
The music appears to be stopping, and the paper game is up!

Mahlamed is reportedly a CURRENT CME Board Member and Chairman Emeritus of the CME, and was the CME's CEO from 1969-1993, yet the exchange cannot come up with a measly 200 oz of gold to satisfy the delivery requests of one of it's own!

From jsmineset:
Jim,
Just received a text from my futures broker at Linn Group:
Just tweeted about your links. Leo Mahlamed former Ch/CEO of CME took delivery of 2 gold contracts. They would only give him a warehouse receipt not the gold. This from the floor.
Fascinating times. See you on May 18th in LA.

C=IGA John
Dear John,

I am amazed Leo did not go ballistic.
Jim

Source
 
FYI, when you stand for delivery, what you get is a warehouse receipt, that is how it works. Taking delivery of physical off that receipt is a separate step you do with the warehouse.
 
bron suchecki said:
FYI, when you stand for delivery, what you get is a warehouse receipt, that is how it works. Taking delivery of physical off that receipt is a separate step you do with the warehouse.
Click to expand...

Please read the article, the person refused delivery is CME's former CEO Leo Mahlamed. Are You trying to say, that he doesn't know the process of taking delivery?

When someone like him raised flag, there is something which isn't right.
 
black5wan said:
bron suchecki said:
FYI, when you stand for delivery, what you get is a warehouse receipt, that is how it works. Taking delivery of physical off that receipt is a separate step you do with the warehouse.
Click to expand...

Please read the article, the person refused delivery is CME's former CEO Leo Mahlamed. Are You trying to say, that he doesn't know the process of taking delivery?

When someone like him raised flag, there is something which isn't right.
Click to expand...

Have you read the article? It's an article! F the manipulating media. I personally see how they blow stories out of control from my work, they take what information they want and don't release what try don't want, I find it really hard to believe alot of what the mainstream media put out there.

Not saying anything is wrong with what you are saying, because personally I have never gone though the process of collecting
 
DanielM said:
F the manipulating media. I personally see how they blow stories out of control from my work, they take what information they want and don't release what try don't want, I find it really hard to believe alot of what the mainstream media put out there.
Click to expand...

Yep, been on the other side of that myself with Perth Mint.

Consider that maybe the gossip is just that he didn't take cash profit and went for delivery, which would be gossip worthy on the COMEX floor as most just take cash profits. This get heard and with Chinese Whispers the fact he was given warehouse receipts, which is totally normal, is mistaken as him not getting physical, when maybe he was happy storing his metal in a warehouse.

Anyway, a default like this is big news, so I'm sure Dan Norcini will be reporting on it. If we hear no more about it by another other corroborating source then it is Chinese Whispers BS, which is my current bet.
 
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