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<p>[QUOTE=&quot;desertgem, post: 2229068, member: 15199&quot;]Even the bullion forums ( in repeating the above) do add the following:</p><p><br /></p><p>&quot;The nature of futures contracts is that they expire at a given date. At that point the seller must deliver physical gold to the buyer. However as noted above, the trade in gold futures far, far outstrips that of the actual amount of gold in existence for the very reason that hardly anyone ever takes delivery of physical gold. Some 97% or so of futures contracts are either closed out for cash settlement before expiry or &quot;rolled over&quot; into the next month&#039;s contract. Thus paper gold trading can be perpetuated as a cash-only market.</p><p><br /></p><p>But what if, this time, the buyers of paper gold demanded delivery? Judging by the current extraordinary demand for physical gold, it would be no surprise if many did. You could either sell the physical delivery into the physical market at a much higher price than the futures market is currently dictating or simply hold the gold because that&#039;s the asset you wanted in the first place.&quot;</p><p><a href="http://www.silverbearcafe.com/private/12.08/exposure.html" target="_blank" class="externalLink ProxyLink" data-proxy-href="http://www.silverbearcafe.com/private/12.08/exposure.html" rel="nofollow">http://www.silverbearcafe.com/private/12.08/exposure.html</a></p><p><br /></p><p><br /></p><p>So only <b>3% of the contracts</b> are actually based on the metals. Yes , every one would go with metal delivery.....IF IT DIDN&#039;T COST THEM MORE $$$$ to hold until the delivery date deadline. Usually about a 30 day different. So are they are saying gold bugs should buy it this way? No they know most individuals can not play with that much cash, but the bullion wholesellers can, and they are the ones trying to convince you to buy bullion single or your house payment worth , as comex is going to default and gold will go to the moon <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie2" alt=";)" unselectable="on" unselectable="on" />&nbsp; Let them attack COMEX and drive the price of gold up for you. I would bet they won&#039;t !&nbsp; If the paper ratio was imbalanced, COMEX would raise the margins, they have that right. Doesn&#039;t seem to be in the works. BUT , if interest rate goes up, the bullion dealers will have to increase their premiums to carry the metal. Of course blame that on fiat also <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie1" alt=":)" unselectable="on" unselectable="on" />[/QUOTE]</p><p><br /></p>

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