COMEX Gold December Delivery

Discussion in 'Metal Futures' started by AMT4SWA, Nov 4, 2008.

  1. Lets see what the markets will do if COMEX defaults on any of their December Gold deliveries.......there is more to this story than meets the eye. :)

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    According to the London Times: "The Comex metals trading division of the New York Mercantile Exchange kept 3,800 gold bars - weighing 12 tonnes and worth more than $100 million (£70 million) - in vaults in the building's basement. Comex also held almost 800,000 ounces of gold there on behalf of others, with a value of about $220 million (worth more than $560,000,000 today). It also held more than 102 million ounces of silver, worth $430 million (Worth $1.5 billion today). The Bank of Nova Scotia, which kept gold in the Comex vault, reported $200 million of gold lost in the wreckage (Lost-!). Comex also held precious metals for Chase Manhattan Bank, the Bank of New York and Hong Kong and Shanghai Banking."

    Not surprisingly, one massive gold-filled truck was discovered, crushed, in the tunnels below the WTC complex. Perhaps, in the eight hours, between 9 AM and 5 PM, when WTC-7 was demolished and Americans were glued to televisions, horrified, masterful planners heisted hundreds of millions in gold bullion. Before Silverstein finally "pulled" the US government building, that is.

    (from rense.com http://www.rense.com/general72/conect.htm)

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    (Before 9:59 a.m.) September 11, 2001: Gold Transported Through WTC BasementLarge amounts of gold are stored in vaults in the massive basement below the WTC, and some of this is being transported through the basement this morning. Several weeks later, recovery workers will discover hundreds of ingots in a service tunnel below WTC 5, along with a ten-wheel lorry and some cars (which were, presumably, transporting the gold) (see (Mid-October-mid November 2001)). The lorry and cars had been crushed by falling steel, but no bodies will be reported found with them, so presumably they were abandoned before the first WTC collapse, at 9:59 a.m. (Gittrich, Zambito, and Standora 10/31/2001; Wapshott 11/1/2001)

    (Mid-October-mid November 2001): Gold and Silver Recovered from WTC Basement Area; Evidence Suggests Attempted Theft
    The Bank of Nova Scotia gold vault, located under WTC Building 4, is examined in late October 2001. [Source: Leslie E. Robertson and Associates]Workers at Ground Zero discover large amounts of gold and other precious metals stored below the ruins of the WTC. As debris is removed they are able to access parts of the 16-acre WTC basement, which drops 70 feet below ground level. Precious metals are stored in numerous vaults within this area. The London Times says the quantity of these “has been a carefully guarded secret,” but estimates $750 million of gold and silver in vaults belonging to the Comex metals trading division of the New York Mercantile Exchange. There appears to have been an attempt, since 9/11, to break into a Comex vault containing $200 million of precious metals belonging to the Bank of Nova Scotia. A government official involved in the recovery work says, “It looked like they used a blowtorch, a crowbar,” but a bank spokeswoman denies there has been any attempted break-in. The banks later states that “All of the silver, gold, platinum, and palladium stored in its vaults at 4 World Trade Center” has been relocated to a depository in Brooklyn. Other gold is discovered in a service tunnel below WTC 5. According to the London Times, this was being transported through the tunnel on the morning of 9/11 (see (Before 9:59 a.m.) September 11, 2001). (Gittrich, Zambito, and Standora 10/31/2001; Wapshott 11/1/2001; Dwyer 11/1/2001; Reuters 11/17/2001)


    November 2, 2001: Giuliani Reduces Number of Firefighters at Ground Zero, Following Recovery of GoldNew York City Mayor Rudolph Giuliani angers firefighters when he decides to severely reduce the number of them that can search for remains at Ground Zero. Until now, up to 300 firefighters at a time have been involved in the search and recovery effort. Giuliani’s decision will mean no more than 25 at a time can do so in future. The International Association of Fire Fighters (IAFF) later alleges that, also at this time, Giuliani makes “a conscious decision to institute a ‘scoop-and-dump’ operation to expedite the clean-up of Ground Zero in lieu of the more time-consuming, but respectful, process of removing debris piece by piece in hope of uncovering more remains.” So far, the bodies or remains of 101 firefighters have been recovered, out of the 343 who died at the World Trade Center on 9/11. According to the IAFF, the mayor refuses to even meet with local union presidents about the decision. Due to the ensuing public outcry, Giuliani will modify his policy and allow firefighters back on the pile at Ground Zero. The remains of another 113 firefighters will subsequently be found. The IAFF later alleges that “the mayor’s switch to a scoop-and-dump coincided with the final removal of tens of millions of dollars of gold, silver and other assets of the Bank of Nova Scotia that were buried beneath what was once the towers” (see (Mid-October-mid November 2001)). “Once the money was out, Giuliani sided with the developers that opposed a lengthy recovery effort, and ordered the scoop-and-dump operation so they could proceed with redevelopment.” (Firefighting News (.com) 3/8/2007; Chipman 3/9/2007; Associated Press 3/10/2007) IAFF President Harold Schaitberger later says, “in my opinion, it was more important for him [to] find the gold than it was to continue to find and recover remains.” (MSNBC 7/12/2007)

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    Lets see if COMEX has Gold delivery problems in December........only more market fun ahead!!! :cool:
     
  2. ....and if all the big players that are SHORT paper gold all want sizeable deliveries in December.......:cool:
     
  3. MGJ

    MGJ

    Hypothetically, suppose the December delivery (see image) comes and goes with no difficulties. What will that mean?

    [​IMG]
     
  4. Not really any big difference from our current trading range imo......but if they have any defaults then $hit will hit the fan! Great risk to reward on this play imo!
     
  5. BTW....heck of a nice move in Gold today! :cool: word is getting out! :eek:
     
  6. Mecro

    Mecro

    That's not how it works.

    Until delivery notices start being issued, you won't see any moves based on this dynamic.
     
  7. RUMOR comes BEFORE the news! :D
     
  8. What does gold from 2001 have to do with December 2008 delivery? :confused:
     
  9. There is in question if COMEX actually has enough gold to cover all the outstanding paper positions.......many in the "underground" gold game have this opinion.

    Seen any over leveraging in the world lately? :eek:
     
  10. Time to bust out the tin foil hats. If this were big news it would be labeled "breaking news" on CNBC 3 days after the fact :D
     
    #10     Nov 4, 2008