FORMER CME CEO REFUSED PHYSICAL DELIVERY FOR 2 GOLD CONTRACTS!

C0INB0Y

REFUSED DELIVERY!


Even Better! See what Current CME Chair said today!

Look at 0:40


CME President on Gold: “They Don’t Want Certificates, They Want the Real Product”

Timbuk3

Interesting article, thanks !!!

vpr

A quick searched revealed no credible sources of this information. This would've been huge, if true. The rulebook says "they can decide to do whatever they want, if they can't meet the physical delivery requirement" which is standard practice in a lot of what we do. Doesn't mean we are all conspiring against traders. The language exists so we can deal effectively with situations that can't be foreseen, in a way that is fair to all parties. Unfortunately, I don't have any friends working in the deliveries department, but I will try emailing someone tomorrow to figure out if there are any issues with delivery.

BTW, I work for the CME. If anyone has any other questions they want answered, let me know.

element159

From the comments on the article (I didn't watch the video), it sounds like the former CEO was actually delivered his gold in good order with no problems at all.

It sounds like, with warehouses (I have never used such so I have no experience here), what you first get is a receipt for your gold which you take to the warehouse to get the actual physical gold. And he got his receipt just fine.

So I guess the lesson, is paper gold is just as good as physical, except its harder to get it stolen from you

C0INB0Y

The Video is enough for me.

element159

One of the comments on the thread, re how physical delivery works. (As I said, I have no experience with warehouses).



<< <i>There is nothing to report, this is *exactly* how physical delivery works. When you stand for delivery you get a warehouse receipt for a specific bar of gold in a specific warehouse. That receipt gives you title to the gold. You can now do whatever you want with it (including going to pick it up). This story is not a lie, but it is designed to be sensational or was spread by someone who doesn’t know how the game works. I think the former is probably the case. >>



So the thread title perhaps should be corrected: 'Former CME given physical delivery for 2 gold contracts' with no exclamation point because that is how it is supposed to work. . Of course, I have no idea what happened at the warehouse.

BAJJERFAN

Anyone buying the silver Buffalo rounds at $1.99 over spot today?

bluelobster

FORMER CME CEO REFUSED PHYSICAL DELIVERY FOR 2 GOLD CONTRACTS!

Dang, I would have believed it if there were more exclamation marks!! My understanding is that this was completely normal and if he hasn't already, the ex CEO can get his two gold bars anytime by bringing the certificate to the depository....like one would do normally, no?

JamesMurray

"So I guess the lesson, is paper gold is just as good as physical, except its harder to get it stolen from you"

LochNESS

daOnlyBG

That day where the paper game fails isn't here yet. The practice of paying for contracts and never seeing the material has been the status quo for a long time now.