Warning: COMEX May Default on December Gold

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:
Advertisements

20 Responses

  1. 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.

  2. Enjoy

  3. 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

  4. So we are no longer in December.

    How about an update.

    Did the COMEX default?

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

  6. 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.

  7. 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.

  8. 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.

  9. […] – 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 […]

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

  11. 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

  12. tell me is it unsafe to buy silver or gold

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

  14. […] – 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 […]

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

  16. […] 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 […]

  17. […] 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 […]

  18. […] 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 & […]

  19. […] **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 & […]

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

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: