Possible default in December gold??

I thought they traded in 400 ozs bars..

 

The COMEX gold contract is for 100 troy oz.

"Grade and Quality Specifications

In fulfillment of each contract, the seller must deliver 100 troy ounces (±5%) of refined gold, assaying not less than .995 fineness, cast either in one bar or in three one-kilogram bars, and bearing a serial number and identifying stamp of a refiner approved and listed by the Exchange. A list of approved refiners and assayers is available from the Exchange upon request. "

 

FYI, India's gold futures market defaulted the other day. Odd that nobody said anything here.

 

Really? Maybe nothing has been said because the open interest was only 7 contracts?

 

Probably because it was a minor event.

"The settlement price on expiry of the contract was Rs 9,622 for 8 gm (including the making charges of Rs 200 for 10 gm). Open interest on the expiry date was 11,839 coins, of which 10,908 coins (about 92 per cent) went into delivery, while the others were cash settled with a penalty imposed on the seller for failing on contractual obligation."

 

Pretty sad they couldn't come up with that small an amount of metal, huh?

 

kitco has spot priced at 733.9 on last friday Nov. 7; and NEMEX's Dec contract at 734.20

I would like to see people rush into physical gold.

 

Gosh, I don't know how many times this rumor crossed my trading desk in the past few weeks and the price of gold has gone nowhere.

Apparently, this rumor has its origins (to no surprise) from the old time newsletter gold bugs.

Truth be told here...after all this nasty turmoil in the financial markets the price of gold should have been nearly $2,000 per oz., but it is not...Negative or dull price action in the face of favorable news is not indicative of bullish action in my book.

 

In Zimbabwe, Metallon Gold closed five mines because the country's Reserve Bank has failed to pay for gold compulsorily delivered to it – a case of government theft of the first order.


Now who would be dumb enough to trust some #$%#$%% from Zimbabwe

 

I don't know what desk you work on, but I feel sorry for whoever's money you are trading.

Not even saying this gold default is happening, but come on, you do not even know the first place to look to see if there is any truth to it or not. It takes 5-10 minutes to see whether paper gold can be covered by physical gold based on the spot price. And anyone who has a brain and curiousity would have known that it cannot be.

Nobody will know anything for sure till the delivery notices start going out. That's in about 3 weeks. As for the physical market, I have already posted on it. It's a mixed bag.