Warning: COMEX May Default on December Gold

Posted on October 22, 2008 by Scott

This warning comes from someone I’ve respected since I got involved in the silver/gold story in 2005, John Embry. He’s the senior analyst for Sprott Asset Management in Canada and member of the Gold Anti-trust Action Committee.
decgoldwarning
If COMEX is unable to deliver physical gold and declares a “force majeure” all outstanding gold contracts will be invalidated. Both the paper gold and real gold price will blast off to Saturn.

UPDATE 11/12/2008: When will we know if Comex runs out of gold and/or silver? I’ve looked up the important dates regarding the December Comex Gold Futures [link]:

Nov. 20   Comex December gold options expire
Nov. 20   Comex December silver options expire

Nov. 24   Comex December miNY gold futures last trading day
Nov. 24   Comex December miNY silver futures last trading day

Nov. 28   Comex December gold futures first notice day
**1st day to take delivery**
Nov. 28   Comex December silver futures first notice day
**1st day to take delivery**

Dec. 29   Comex December gold futures last trading day
**Last day to take delivery**
Dec. 29   Comex December silver futures last trading day
**Last day to take delivery**

If December Gold or December Silver will fail to deliver it should happen between Nov 28 and Dec 29.

Two years ago, on August 16, 2006, the London Metals Exchange defaulted on its nickel contracts [link]. Note the date: the 16th of the month, almost exactly halfway between the First Notice Day and the Last Trading Day. I have no idea if gold/silver would play out the same way.

The bad news: if you’re buying gold or silver futures with the expectation of taking delivery here’s what happened when LME defaulted on its nickel contracts: they retroactively changed all contracts so that the shorts did NOT have to provide physical nickel to the longs. The contracts were settled for cash with a penalty that averaged a mere 10% of the spot price.

I can imagine the corrupt Comex stiffing the gold/silver longs the same way, citing concerns about “maintaining orderly trading.” Ouch!

UPDATE 11/21/2008: David Morgan, editor of The Silver Investor, is holding a “webinar” titled “How to Take Delivery of Silver”. Time: mon., Nov 24, 2008 starting at 12:00 EST, 11:00 CST or 9:00 PST. [link]

How close is COMEX to going bust? Answer: Vaporize COMEX CountDOWN See also:

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20 Responses

  1. David Silva, on December 15, 2011 at 11:52 pm said:

    Win a free ounce of Silver bullion fresh from the Mint!
    Scott gave away dozens of Silver rounds previously on this site.
    Be the 100,000th visitor at http://www.silverstampede.com
    Visitor count is located at the bottom of the home page.
    Buying and holding silver and gold are the best way to hedge against imminent hyper-inflation and currency debasement, and the best
    way to beat the Federal Reserve banksters.

    Reply
  2. Dale Sarna, on June 2, 2009 at 10:14 pm said:

    Enjoy

    Reply
  3. RaiulBaztepo, on March 28, 2009 at 6:31 pm said:

    Hello!
    Very Interesting post! Thank you for such interesting resource!
    PS: Sorry for my bad english, I’v just started to learn this language ;)
    See you!
    Your, Raiul Baztepo

    Reply
  4. GOLD500, on January 1, 2009 at 9:40 pm said:

    So we are no longer in December.

    How about an update.

    Did the COMEX default?

    Reply
  5. Dokk, on December 24, 2008 at 10:17 am said:

    Here is an interesting video about gold prices, the potential comex default and how it relates to crude oil prices.

    Reply
  6. nicholasgc@oh.rr.com, on December 14, 2008 at 12:35 pm said:

    I am all for particpating in a market for silver. Please note my address and update any or all viable ideas for an alternative market.

    Reply
  7. Will, on December 11, 2008 at 11:18 am said:

    We need an alternative to eBay. They are taking 3-5% in sellers fees. As of October 2008 they now force sellers to accept paypal, which means interchange fees of another 4-5%.

    What you don’t realize on eBay is that markup you are paying is an extra 5%-10% in fees going to eBay. Try selling a bar on eBay and you’ll see very quickly that it’s a scam.

    We need an alternative to eBay that doesn’t charge an arm and a leg to do business. Bullion sellers know what I’m talking about. They are taking ten pounds of flesh for every hundred, and that’s just too much comish.

    Reply
  8. Craig, on December 4, 2008 at 8:34 pm said:

    Scott, wouldn’t it be something if we could establish and promote a legal fund through your site or maybe David Morgan’s that would offer a reward to any individual or individuals that would come forward and expose this obvious Comex crime in progress. We could get this out to all the big PM sites and ask for donations to a registered account. No one to date has offered this idea so far, but I think it could work, as there are many people interested in the outcome. There has to be a few underlings working at the Fed, Comex, etc. that are aware of the crime but have not considered coming forward and testifying with info that could really bust this crime in progress.

    Reply
  9. Week of Dec 1, 2008 « Meltdown 2011, on December 4, 2008 at 5:28 pm said:

    […] – Gold: Is This It, NOW?  – Shadow Powers Plan for 2011  – Sober Prediction for Nov. 2009  – Warning: COMEX May Default on December Gold  – Quit DOW Now! **if U only read 1 thing on this site…** – Dollar Death Warning  – Big […]

    Reply
  10. Dan Goodyear, on December 3, 2008 at 7:04 pm said:

    Why not just go around the crimex. An everybody do there business on ebay. it easy 45% over crimex spot of crap price.

    Reply
  11. Arthur, on December 3, 2008 at 5:30 pm said:

    It looks as though there has been a raid on the Commex but not enough to bust it this time around. Feb/March however looks highly probable.

    Please go to Davincij15 on YouTube and to MarketSkeptics.com for upgrades on this issue

    Reply
  12. ambrose, on December 1, 2008 at 11:07 pm said:

    tell me is it unsafe to buy silver or gold

    Reply
  13. Attack of COMEX Gold & Silver « Meltdown 2011, on November 28, 2008 at 12:02 am said:

    […] Warning: COMEX May Default on December Gold […]

    Reply
  14. Week of Nov 24 « Meltdown 2011, on November 24, 2008 at 4:28 pm said:

    […] – He Chooses Silver Over Gold 2 Beat Inflation  – Sober Prediction for Nov. 2009  – Warning: COMEX May Default on December Gold  – Quit DOW Now! **if U only read 1 thing on this site…** – Dollar Death Warning  – Big […]

    Reply
  15. Gold: Is This It, NOW? « Meltdown 2011, on November 24, 2008 at 12:18 am said:

    […] Warning: COMEX May Default on December Gold […]

    Reply
  16. This Guy Plans 2 Kill “Paper” Silver « Meltdown 2011, on November 21, 2008 at 1:37 pm said:

    […] Let’s join Jim Sinclair and Bob Coleman and BUST COMEX gold and silver! Sinclair Sez “Help Me Bust Comex” Warning: COMEX May Default on December Gold […]

    Reply
  17. How Much Is COMEX Delivering? « Meltdown 2011, on November 21, 2008 at 1:23 pm said:

    […] Much Is COMEX Delivering? While we wait to see if we can Bust the COMEX and end the gold & silver price manipulation a question arises: how do we know how much gold […]

    Reply
  18. Week of Nov 17 « Meltdown 2011, on November 15, 2008 at 11:03 pm said:

    […] Risky Stocks: How to Dump Them  – Sober Prediction for Nov. 2009  – Warning: COMEX May Default on December Gold  **updated** – CFTC to Investigate Silver Manipulation  – Y the Gold & […]

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  19. What U Need 2 Know « Meltdown 2011, on November 12, 2008 at 1:24 am said:

    […] **new** – Sober Prediction for Nov. 2009  – EZ Way 2 Tell If Obama Will B Different  – Warning: COMEX May Default on December Gold  **updated** – CFTC to Investigate Silver Manipulation  – Y the Gold & […]

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  20. Sinclair Sez “Help Me Bust Comex” « Meltdown 2011, on October 30, 2008 at 7:59 pm said:

    […] Embry has warned: Warning: COMEX May Default on December Gold  Bob Coleman is doing the same for silver: This Guy Plans 2 Kill […]

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