Best of the Week
Most Popular
1.Crude Oil Price Trend Forecast 2016 Update - Nadeem_Walayat
2.Will Deutsche Bank Crash The Global Stock Market? - Clif_Droke
3.Gold Price In Excess Of $8000 While US Dollar Collapses - Hubert_Moolman
4.BrExit UK Economic Collapse Evaporates, GDP Forecasts for 2016 and 2017 - Nadeem_Walayat
5.Gold Stocks Massive Price Correction - Zeal_LLC
6.Stock Market Predicts Donald Trump Victory - Austin_Galt
7.Next Financial Crisis Will be Far Worse than 2008/09 - Chris_Vermeulen
8.The Gold To Housing Ratio As A Valuation Indicator - Dan_Amerman
9.GDXJ Gold Stocks - A Diamond in the Rough - Rambus_Chartology
10.Gold Boom! End Game Nears As Central Banks Buying Up Gold Mining Companies! - Jeff_Berwick
Last 7 days
BEA Revises Q2 2016 US GDP Growth Upward to 1.42% - 29th Sept 16
Could the OPEC deal set stage for the Next Stock Market Risk Rally? - 29th Sept 16
Why Trump Lost, Hillary Won the 1st U.S. Presidential Debate - 29th Sept 16
Is a Dollar Crash Imminent After the Senate Overrides Obama Veto on Saudi 9/11 Bill? - 29th Sept 16
2017: Gold and Silver's Year of "Public Recognition" - 29th Sept 16
Did Trump Win the 1st US Presidential Election Debate? - There's Something Happening Here... - 29th Sept 16
FED Goes from ZIRP to NIRP! - 29th Sept 16 - Chris_Vermeulen
Here’s Why You Should Be in Cash Right Now - 28th Sept 16
The Fed Put a 50% Tax on Your Retirement Plan - 28th Sept 16
Massive Chinese Debt And Why They Are On A Gold Buying Binge! - 28th Sept 16
Stocks Commodities and FX Markets Waiting Technically While Fundamental Data Neutral Poised - 28th Sept 16
This Commodity Has Perked Up its Investors' Portfolios - 27th Sept 16
Charting the Continuing Gold Market Correction - 27th Sept 16
Stock Market Crash and Recession Indicator Warning: Extreme Danger Ahead - 27th Sept 16
Financial Markets and FX Setups 27th Sept - 27th Sept 16
Crude Oil, Forex and Stock Market Trend Forecasts - 27th Sept 16
Why There is Trump - 27th Sept 16
Save Up to 70% in Shopping Expenses for Daily Items - 27th Sept 16
Gold’s Moving Averages and Long-Term Outlook - 26th Sept 16
September Stock Market - The Not So Silent Demise of Deutsche Bank - 26th Sept 16
SPX sell signal confirmed - 26th Sept 16
SPX is testing the next level of support - 26th Sept 16
Outrageously Entertaining US Presidential Campaign Final Stages - What Happens Next? - 26th Sept 16
BoJ, FOMC and Where To Now? - 26th Sept 16
Stock Market New All Time Highs Next - 26th Sept 16
Why Trump Will Win US General Election 2016 Prediction Forecast - 26th Sept 16
Martial Law Rolls Out Across the US As Jubilee Nears - 26th Sept 16
Stock Market More Correction Likely - 25th Sept 16
US Presidential Election Forecast 2016 - Trump Riding BrExit Wave into the White House - 25th Sept 16
US Economy GDP Growth Estimates in Free-Fall: FRBNY Nowcast 2.26% Q3, 1.22% Q4 - 24th Sept 16
Gold and Gold Stocks Corrective Action Continues Despite Dovish Federal Reserve - 24th Sept 16
Global Bonds: Why Our Analyst Says Things Just Got "Monumental" - 24th Sept 16
Where Did All the Money Go? - 23rd Sept 16
Pension Shortfalls Could Be 4X To 7X Greater Than Reported - 23rd Sept 16
Gold Unleashed by the Fed - 23rd Sept 16
Gold around U.S Presidential Elections - 23rd Sept 16
Here’s Why Eastern Europe Is Doomed - 23rd Sept 16
Nasdaq NDX 100 Big Cap Tech Breakout ? - 23rd Sept 16
The Implications of the Italian Banking Crisis Could Be Disastrous - 22nd Sept 16
TwinLakes Theme Park Summer Super 6 FREE Return Entry for Real? - 21st Sept 16
Has the Silver Bullet Run Out of Fire Power? - 21st Sept 16
Frack Sand: The Unsung Hero Of The OPEC Oil War - 21st Sept 16
What’s Happening With Gold? - 21st Sept 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

The Power of the Wave Principle

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


© 2005-2016 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

Catching a Falling Financial Knife