The COMEX will default in the next week or several weeks

Discussion in 'Bullion Investing' started by SilverForLife, Apr 17, 2013.

  1. SilverForLife

    SilverForLife Member

    Not sure if this will happen but I am no fan of the corrupt COMEX. The COMEX will default in the next week or several weeks and people will be “settled” with Dollars, no more metal will be delivered! So, knowing that “game over” has arrived, they are dumping a massive volume of paper contracts with impunity to push the metals prices as low as possible before the “default”. This way the “shorts” do not have to and will not be “covered” when “supply” cannot be obtained because of “an act of God”. They will be settled in cash (at a profit no less) because these “unforeseen” disruptions in supply. “Who could have seen it coming?” will be the mantra. I would suspect that banking stress and “bail ins” will also become prevalent globally. The pricing structure” will now push any and all physical sellers away from the markets and the “door” to safety is effectively being shut. Either you own metal or you don’t.
    After the closure of the COMEX and LBMA doors there will be no availability and “price” will be meaningless. Your ability to protect yourself is right now for all intents and purposes being eliminated.
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  3. Danr

    Danr Numismatist

    I'd be surprised to say the least
  4. SilverForLife

    SilverForLife Member

    I agree with you. COMEX is corrupt, but they always bailout the too big to fail one now....
  5. Ripley

    Ripley Senior Member

    Its not "Too big to fail" its "Too big to give a st"
  6. desertgem

    desertgem MODERATOR Senior Errer Collecktor Moderator

    But wait, buy less than 20 ASE and the premium is only $8.99 over spot on the site :) If it is going to be so sure, why are they selling at any price?

    I looked for a verifiable piece of information and the mine cavein was true, but to imply that it was pre-planned and Obama discussed it , so the CME could dissolved contracts for delivery?? Actually there aren't that many contracts purchased for delivery, and the CME does say they can give cash if there is a problem with delivery ( in the prospectus) at spot pricing. People who actually have the cash to buy a delivery contract ( except maybe the mini- ) certainly know this.

    the author in my opinion needs a new roll of aluminum or lead foil. But some of his readers will buy ASEs at his price and beckon.

    IMO Jim
  7. sodude

    sodude Well-Known Member

    They've been predicting an imminent comex collapse for years. Next week or in the next several weeks (or months).
    They fiddle around with the definition of default too. It's gotten to the point that if speculators are offered cash settlement, they call that default.
    When it hits the fan, silver is supposedly going to the moon. But here we are with silver crashing.
  8. medoraman

    medoraman Supporter! Supporter

    Do people really know what a Comex contract is? How you actually line up to take delivery? How it has to be upfront, in cash fully paid for, to even be scheduled to take delivery? If someone is really manipulating the market, then they surely know how to sidestep any physical delivery needs.

    Even the disclosure in the prospectus is fair, as sometimes strikes, shipping delays, etc happen. The Comex is part of the CME. THey do not care anything except activity. If someone is making their market untenable they are VERY concerned. They seriously do not care at what price something trades at, only that it trades.

    Btw, if its manipulation of Comex, why did other markets around the world also go down? Heck, it was the Asian markets Sunday night our time that really was crashing. So is this really a GLOBAL scheme of manipulation? It would have to be larger than the Comex then, right?

    Its not just JPM and Comex out to get us, its THE WHOLE WORLD!
  9. sodude

    sodude Well-Known Member

    The followup to this article will be that they found one annonymous trader who claims to have been denied physical delivery and offered cash instead (which is default by their definition).
  10. Tinpot

    Tinpot Well-Known Member

    Stop losses will be triggered in Asian markets, don't even start on London markets they might even more crooked than U.S.

    In any case China and Asia do not care if price is lowered, they are happy as a clam and will stack to high heavens at these low prices and won't use any tricks to increase the price like the U.S. and London do to decrease it.

    Everything in the markets is manipulated, this is just common sense. Libor rates proven crooked, U.S. governments plunge protection team, ect. ect. ect.

    One asset being manipulated affects all the others, it's all manipulated.

    Comex's cares about what the U.S. government tells them to do like everybody else in the world. You don't listen to them and you are shut down financially and possibly even destroyed militarily. Ask Gaddafi (was going to create an African currency backed by gold that would underline the weaknesses in the dollar and euro) Saddam (was setting up an exchange that took euros for oil instead of dollars, threatening the monopoly held by the petro-dollar)
  11. PeacePeople

    PeacePeople Wall St and stocks, where it's at

    They don't want to hear this stuff. They'd much rather hear that Abe Lincoln is still president, the civil war was about freeing the slaves and the US dollar is not only as good as but better than, gold.

    That stated, the Comex is going nowhere any time soon.
  12. InfleXion

    InfleXion Wealth Preserver

    The author was Miles Franklin, not SilverDoctors who re-posted his article. Unrelated.
  13. mikem2000

    mikem2000 Lost Cause

    I have consulted the experts and they say "Doubty"
  14. green18

    green18 Unknown member Sweet on Commemorative Coins Supporter

  15. Cloudsweeper99

    Cloudsweeper99 Treasure Hunter

    I've read stories about Comex defaulting since about 2004. The fact is that a Comex warehouse is just about the safest place to store bullion, and I don't know of a single case where anyone holding a Comex warehouse receipt lost any bullion. Regarding futures contracts, the vast majority of traders don't want delivery. They are paper traders, hedge funds, trading houses, market makers, etc...
  16. InfleXion

    InfleXion Wealth Preserver

    Nathan Rothschild does own a controlling stake in the HKMEX. So, yeah.
  17. InfleXion

    InfleXion Wealth Preserver

    Did you read the story about their Q1 outflows of physical metal this year being the largest in recorded history? That's prior to this down move, and JPM's inventories have been sapped even further because of it. It might be a safe place to store metal, but if the metal isn't there what does it matter?
  18. sodude

    sodude Well-Known Member

    I can't seem to find a good chart showing how their silver inventory is at terribly low levels historically.
    I don't think they do a lot of physical delivery anyways, so why do they need a large inventory?
  19. InfleXion

    InfleXion Wealth Preserver

    They don't have or need a large inventory, at least on a percentage basis. Sure it's a lot of metal, but with less than 2% metal backing the paper contracts, accordingly even less than that 2% is ever demanded for delivery - typically. However now in the 1st quarter of 2013 there have been greater outflows from the COMEX than ever before, so I take these typical numbers with a grain of salt.

    This link is specific to gold, not silver. Gold is in demand from both nations and central banks. Joe Sixpack's silver stack isn't going to make or break anything until mania phase, but silver is harder to source than gold right now on the physical side. Also if the institutional money went for silver it would be sold out in a heartbeat. You can buy the entire silver market with a mere $30 billion. That's just under 1/3 of the QE money each month ($85 bn). Some hedge fund managers like Kyle Bass work in the trillions. They COMEX doesn't need a large metal supply, but it does need powerful friends. The big money can't and won't get into silver until it's far more valuable than it is today.

    The point is the trend. Metals are flowing out of the COMEX at record levels and that was when gold was flirting with $1600, before the rush to physical we are now experiencing. This doesn't mean they will default, everything might be fine, they might buy some more metal like they did late last year from Poland, but it's hard to see them holding on to the rest of their metal if the price doesn't go back up.
  20. medoraman

    medoraman Supporter! Supporter

    Cloud! Where the heck you been man? You missed a lot of fun.
  21. green18

    green18 Unknown member Sweet on Commemorative Coins Supporter

    I missed him too. Good to see ya back posting.......:)
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