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John Embry
was recently on Canadian national television discussing the potential of a
failure of delivery for the COMEX contract in December. The COMEX
market has been instrumental in perpetuating the gold price suppression
scheme. Should a failure to delivery happen in December it would be
a ’seminal event’ in the gold market. The $80 per ounce
move in the last two trading days may be a portent of what is to come.
The gold
price determinant would shift to some other location, probably
in Asia, with greater integrity.
If
December Gold or December Silver will fail to deliver it should happen
between Nov 28 and Dec 29. Here are some dates to keep in mind:
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**
Failure
to deliver is not unheard of in the commodities markets. In 2006
the London Metal
Exchange imposed a $300 per ton penalty when nickel went into
backwardation. The LME CEO said, “Nickel stocks are at
historically low levels and we now have a genuine material shortage. Our first
priority is to ensure that trading remains orderly and to prevent the risk of settlement defaults.”
The
great thing about commodities is that they are either in your possession or
not. What good is a penalty assessed to a bankrupt counter-party? When major financial institutions
like Bear Stearns, Lehman Brothers, Wachovia, Washington Mutual, etc. can be
vaporized overnight why be content with accepting their counter-party risk
through a penalty assessed for backwardation? If you purchase bullion
then demand delivery to yourself or a trusted third-party vaulting service
like GoldMoney. As
mentioned in September on the Daily Source Code and also observed by Boom2Bust the retail coin and bar market is getting
extremely tight. Those who fail to take possession of the bullion and
instead hold paper claims such as COMEX contracts, ETFs like GLD, SLV, etc.
and a myriad of other forms of ‘paper gold‘
will receive just that ‘paper’. That paper can become
worthless.
The
financial markets, particularly the gold and silver markets, could be in for
some very interesting events in the not to distant future. Be prepared.
Trace Mayer
RuntoGold.com
Trace Mayer,
J.D., holds a degree in Accounting from Brigham Young University, a law
degree from California Western School of Law and studies the Austrian school
of economics. He works as an entrepreneur, investor, journalist and monetary
scientist. He is a strong advocate of the freedom of speech, a member of the
Society of Professional Journalists and the San Diego County Bar Association.
He has appeared on ABC, NBC, BNN, many radio shows and presented at many
investment conferences throughout the world.
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