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<p>[QUOTE=&quot;desertgem, post: 2277978, member: 15199&quot;]But 97% of the &quot;paper gold&quot; futures stay paper. ONLY if the buyer of the future declares they want physical delivery,&nbsp; is the comex physical gold encumbered. Why doesn&#039;t every buyer of paper gold do that? Because instead of the fractional cost to play with paper gold&nbsp; vs. USD , instead of putting up full value of the physical + storage and transportation fees at the time to encumber. Only the industrial users and high moneyed bullion dealers go this route and put up the full cash as they need it for their business, not investment. One of the more honest newsletters gave the 3% figure.</p><p><br /></p><p>If you buy a &quot;paper gold &quot; contract and gold goes up , your gain is in USD. If it goes down, your loss is from your USD purchase price. NO physical gold exchanges hands either way. If you buy a physical delivery, and the price is much less when delivered, they already have your cash, and you have overpriced gold delivered.</p><p><br /></p><p>Bullion sellers, fear mongers , and downright dishonest newsletters, want you to believe that some day comex will be caught way short and will have to buy off market, and the price will soar. In the prospectuses it says they can settle in USD if they want, but since they have advance notice of the amount needed for satisfying the physical call on gold, they can borrow, beg, or buy what is necessary before that. But so&nbsp; little is needed for physical calls, this has seldom happened in comparison to the actual deliveries.[/QUOTE]</p><p><br /></p>

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