COMEX said warning brokers about December Gold squeeze

GATA ^ | 12/13 | Bill Murphy

[ex 98C MI Dude]

It's the number of contracts upon which delivery notices have been issued by the holders thereof.

Just another way of saying what I said. Brilliant. All you did was try to make it sound more officious. Or pompous. The more you post the more it becomes evident that you are desperate to be right about something, anything, even if you are wrong. Pathetic.

[AntiScumbag]

Now that you’ve admitted that I express myself much more succinctly than you could ever hope to, perhaps you’ll next admit that the entire original article is nothing but BS.

Which it is.

[April Lexington]

ping for later

[April Lexington]

I fell for the Y2K scare, Howard Ruff back in the 70-80's(?). I lean towards doomsday scenarios, so don't trust myself to look at this objectively - but I feel like we are not going to be the same country in about a year. Am I wrong?

I am wondering the same thing. I went to our local "big box" outdoor sports store this afternoon and I noticed that virtually ALL, ALL, ALL of the 9mm, 38 special, 357 magnum and 45 caliber ammo was SOLD OUT! Except for a few boxes of super premium stuff (like in 3 or 4 boxes). I'm not kidding. I've been a round for a few years now and I have NEVER seen this store out of all of the common handgun ammo. Either people are expecting trouble (which I doubt in our neck of the woods) or they are looking at ammo as a store of value. Either way, its strange!

[Stentor]

Dateline Lagos.

[djf]

I was downtown earlier today and am kicking myself I didn’t check on more .223

[monkeyshine]

Exactly. Talk of hyperinflation is way premature. Right now we are more likely in a liquidity trap. Borrowing costs are low, the fed rate is low, the treasury is giving money to lenders, but few in the biz wants to borrow or lend. They are hoarding cash which means they think better deals are on the way - they think deflation is coming.

We should be experiencing broader deflation but so far deflation has only occurred in the select markets. Over the last 10 years most of the inflation has been contained in the stock market and housing market, and that is where the deflation is hitting first. In theory lower commodity prices like oil and steel should result in broader deflation but so far it hasn’t happened in basic goods. Cars, TVs, Stocks & Bonds and Houses are lower, but not much else.

They need to spur borrowing indeed. If they want to do this, they need to employ a bottom up strategy. Giving money to banks and brokerages is a waste because they have run so many scams on each other that nobody in those industries trusts anyone anymore. So the Congress may have to mandate new lending rules for a sort period e.g. backstop consumer credit, home mortgage borrowing, car loans and credit card debt. Not that they should be reckless only that the average person is pretty tapped out and the only way to get them some cash is to find legitimate ways to lend to the little guy and the small business.

[GladesGuru]

“Thanks for the Bancroft link. A very educational read!”

As a measure of the esteem in which Bancroft was held by his contemporaries, it is interesting to note that Bancroft was the only man, not a duly seated Senator, to have been accorded full floor privileges in the US Senate.

[GOPJ]

That’s why they’re moaning like an old whore over the fact that they can’t stimulate borrowing. People taking on debt is where they convert the fake stuff into the fiat stuff. But people are debt saturated. And the confidence level is near zero.

Who wants to buy when the price next week will be lower? And who wants to make a loan on a house when next year the people will owe more than it's worth?

This one might take a while.

[Leonard210]

Thanks for the link mbj. I get some of the general concepts, but as the transactions get more complex I get lost. I’ll dig around Investopedia and see what I can learn. Thanks again.

[richw2008]

To AntiScumbag:

You say

“You (and your “dealer”) don’t know what you’re talking about.”

This may very well be true.

Why don’t you sit down, and fully explain it all to us?

I happen to work in the technology field, and one thing I can say about that, is that the most promoted analysis and the media’s push on what is right and wrong, is the utter opposite of what is right and wrong.

The general consensus that the media is currently pushing is your position. I’d be happy to know I’m wrong about that, but I’d need somebody who truly is an expert to fully explain it to me, so I can sit down, and get all the information myself, and confirm if it’s true or not. I’m capable of doing that.

So far, you’ve not done much explanation, and you’re arguing from supposed authority. It’s easy to be a bully, and it’s just as easy to show expertise, when you’re an expert.

Demonstrate your expertise to all of us. I would find that read very interesting.

[AntiScumbag]

Even though it should be obvious, apparently it's not so let me simplify this.

Delivery notices are given by the seller, not the buyer. If you're long and hang around long enough, you're gonna get one, assuming someone who is short wants to make delivery. What you do then is up to you. You can retender and liquidate your futures position. If you don't liquidate your futures position you're gonna catch another notice. Or, you can accept the notice and pay for your metal and take delivery.

If you're long and want to take delivery, you need only hang around until the contract expires and you will force whoever holds the offsetting short(s) to make delivery to you.

All previous deliveries against December are already reflected in the Comex warehouse stocks number. If all of the 811 December gold contracts which are currently still open remain open until trading expires, less than 1% of currently registered deliverable Comex stocks would be delivered. Even that 1% figure is meaningless because anyone with metal can add to Comex registered deliverable stocks at any time they wish.

This "take delivery, break the Comex and the evil gold-loaning brokers and bankers" nonsense has made the rounds every time gold prices have risen for the last 30 years. It's rubbish. There ain't no shortage of the stuff. This idiocy is the product of the fevered imaginations of various gold-bugs and conspiracy nut-balls, primarily GATA and Sinclair, but spread around and multiplied via the internet ad nauseam.

And, like I said, the Comex (or any other exchange for that matter) NEVER, EVER gives ANY trading advice to ANYONE, which makes the original post an obvious total fabrication suitable only for the gullible.

[AntiScumbag]

I would find that read very interesting

So, did you?

10 days have now gone by and Dec Comex open interest fell to 369 contracts, just as everyone who doesn't believe in whack-job conspiracy theories would have expected.

Monday, the 29th is the last delivery day and everyone who is still open is going to be delivered by then. 1/2 of 1% of Comex deliverable stocks will be routinely delivered, not unlike many expirations.

Lo and behold, the Comex is not "busted," nobody is demanding delivery of anything other than routine quantities, there is no shortage and the sky did not fall on the "evil gold manipulators" or evil "banksters" nor any of the other dozen boogey-men that the conspirazoids hallucinate about regularly.

Have you seen enough yet or will you have to wait until Feb gold also expires in the same uneventful manner that has characterized every gold futures expiration since the beginning of gold futures trading?