Physical Delivery of Gold

Discussion in 'Commodity Futures' started by Avid_Consumer, Apr 4, 2006.

  1. Has anyone ever taken physical delivery on a precious metals contract?

    Seems ultimately like an accurately priced way to get a highly standardized supply, but I don't believe retail brokers facilitate delivery. I know at least one doesn't, they actually want you out of your gold contracts a full month prior to expiration.

    As a side note, it's interesting to watch the dollar AND gold selling off at the same time this morning. Every time I watch the dollar tick down, and everything else on my screen stay constant in price it's provocative. All things constant, shouldn't a drop in the dollar be reflected as a price increase for anything priced in dollars? Are all of these assets losing value together?
  2. The full month is not arbitrary. The key date for anybody who does not want to deal with delivery is the "first notice date". It varies by contract.
  3. alanm


    Most gold and gold miners are not in the US.
  4. I think that was his point. As the US dollar decreases in value, the cost of gold in US dollars should increase.
  5. tomcole


    Do you mean taking del'y of a gold warehouse receipt or taking physical del'y of the gold bar?

    Hopefully, you realize that once you take physical del'y a warehouse loses the physical trail of who holds the metal and may require proof that the bar has not been altered so you can put it back out on a warrant.

    There are additional costs of taking the physical bar which are outlined on NYMEX website.

    Personally, I think its not a good idea for retail traders to take physical del'y.
  6. JayS


    I use to work at they can help you with delivery (futures, etc) and give you the best most cost beneficial options, also can deliver you bullion direct from them. Ask for Dave Meger the Director of Metals Operations and tell him Jay sent you.