Where's it gonna come from?
topstuf
Posts: 14,803 ✭✭✭✭✭
Traders on the main gold futures exchange in New York have issued the largest daily delivery notice on record.
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Should be fun to watch.....
Cheers, RickO
Part of your stash? You can spare a little change, right?
Click on this link to see my ebay listings.
BITE YER TUNG !!!
That would border on heresy!
Where's it gonna come from?
Global mining companies say, "Hold my beer", as they pull about 3.2 million ounces out of the ground every 2 weeks.
Knowledge is the enemy of fear
Probly why it's dropping so fast.
LOL. And what has price been doing since the last two delivery spikes?
The COMEX does not supply metals to buyers. It only acts as an intermediary between shorts and longs. Someone who wants to take delivery on gold, or profit on gold price increases, will establish a long (buy) futures position and will either wait until a short (seller) tenders a notice to make delivery, or dispose of his contract, hopefully at a profit. Less than 1% of the trades actually go to delivery. The other 99% of the trades are liquidated before the end of the contract by basically exchanging them for newer contracts. Metal to be delivered (to fulfill a short contract) must meet certain specifications and be on hand in one of COMEX's approved vaults in the general New York area.
The recent spikes (see chart) are a result in disconnect in price between the London and New York markets. The spikes in physical delivery, that require a spike in physical metal to be on hand, are simply the result of arbitragers profiting on the wide swings in price difference between the two trading centers. The record "delivery" notices in the OP require a record amount of physical metal to be available for contract fulfillment, resulting in a record number of physical ounces being moved to these the approved vaults. Less than 1% of the trades actually go to delivery. The other 99% of the trades are normally liquidated before the end of the contract by selling them or exchanging them for newer contracts.
With the recent exit of major bullion banks from the COMEX, these arbitragers are becoming key players in the futures market. What does this mean to gold price? Well, for now simply compare the above delivery chart to the move in gold prices over the same period.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
maybe they have an old graebner coin press and want to make some uhr rounds.... millions of rounds...
Guess it was another non-event. Either that or the gold rush boys have mined so much gold the Comex was able to deliver. Rumor has it the stuff is about as rare as non-polluted drinkable water. Semper Fi
The whole worlds off its rocker, buy Gold™.