Best of the Week
Most Popular
1.Bitcoin War Begins – Bitcoin Cash Rises 50% While Bitcoin Drops $1,000 In 24 Hours - Jeff_Berwick
2.Fragile Stock Market Bull in a China Shop -James_Quinn
3.Sheffield Leafy Suburbs Tree Felling's Triggering House Prices CRASH! - Nadeem_Walayat
4.Bank of England Hikes UK Interest Rates 100%, Reversing BREXIT PANIC Cut! - Nadeem_Walayat
5.Government Finances and Gold - Cautionary Tale told in Four Charts - Michael_J_Kosares
6.Gold Stocks Winter Rally - Zeal_LLC
7.The Stock Market- From Here to Infinity? - Plunger
8.Ethereum (ETH/USD) – bullish breakout of large symmetrical triangle looks to be getting closer - MarketsToday
9.Electronic Gold: The Deep State’s Corrupt Threat to Human Prosperity and Freedom - Stewart_Dougherty
10.Finally, The Fall Of The House Of Saud - Jim_Willie_CB
Last 7 days
The Dow Gold Ratio - 11th Dec 17
Evidence of a Stock Market Top Mounting - 10th Dec 17
Bitcoin Doesn’t Exist – Forks and Mad Max - 10th Dec 17
Bitcoin Doesn’t Exist – Putting the Banks Out of Business - 9th Dec 17
China’s Struggle for Market Economy Status - 9th Dec 17
Is Gold Really Strong? - 9th Dec 17
Bitcoin Parabolic Mania - 8th Dec 17
SPX Make a 61.8% Retracement - 8th Dec 17
Gold, Stocks and Bonds - The 3 Amigos Update - 8th Dec 17
Gold Stocks Break, Gold to Follow - 8th Dec 17
4 Charts That Show How Trump Tax Cuts Will Trigger A Recession - 8th Dec 17
Precious Metals Breaking Down! 3 Amigos to Abort? 4 Horsemen to Ride? - 7th Dec 17
Bitcoin Just Smashed Through $12k… Wait, $13k… Now $14k… This Is Getting Ridiculous! - 7th Dec 17
Stock Market Tops Look Like This - 7th Dec 17
Crude Oil, Oil Stocks and Invalidation of Breakouts - 7th Dec 17
Bitcoin Doesn’t Exist – 2 - 7th Dec 17
British Pound Sterling Volatility In Crucial Week of Brexit Talk - 6th Dec 17
Day Trading vs Swing Trading: Which One is the Better Strategy? - 6th Dec 17
Crude Oil and Negative Divergences - 6th Dec 17
EU Bailins Coming – 114 Italian Banks Have NP Loans Exceeding Tangible Assets - 6th Dec 17
Bitcoin Doesn’t Exist - 5th Dec 17
Advantages of Car Insurance to Protect a Vehicle - 5th Dec 17
How High Will Gold Go? - 5th Dec 17
The Loonie Takes Flight -- BUT a "Labor Miracle" is NOT the Reason Why - 5th Dec 17
The True Meaning of Bitcoin's 'Success' - 5th Dec 17
Gerald Celente: Middle East Wild Cards Could Bring Down Markets, Drive Up Gold - 5th Dec 17
Silver’s Positive Fundamentals Due To Strong Demand In Key Growth Industries - 4th Dec 17
Stock Market Positive Expectations, But Will S&P 500 Continue Higher? - 4th Dec 17
Bitcoin Achieved What The Gold Market Never Could & Never Will? - 4th Dec 17
Stock Market Top Distribution Starting - 4th Dec 17
Understanding Real Time Forex Trading - 4th Dec 17

Market Oracle FREE Newsletter

Traders Workshop

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


© 2005-2018 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