"Gold for February delivery dropped $42.20 to end at $776.80 an ounce on the New York Mercantile Exchange. The contract hit an intraday low of $769 an ounce." December ended at $774.60. Wow, real concern over "Possible default in December gold". :eek:
This site keeps track of the calls for delivery. http://meltdown2011.wordpress.com/2008/11/29/vaporize-comex-countdown/ 40% of inventory out since december 1.
Err, no. As of 12/01/08 the Comex warehouses have 2.9 million oz of registered gold and 5.6 million of eligible gold for a total of 8.5 million oz. That 1.1 million oz of delivered gold is still sitting in the Comex warehouses, it hasn't gone anywhere.
Who cares, why would you listen to ANYONE that works for a major bank or investment firm. The fact that he is a "Chief Tehcnical Strategist" only confirms that his opinion is worth about as much as some drunk yuppie's ramblings at a bar. Plus, Citibank = ROFL!
A little early to judge, don't you think? You won't see any significant signs of this till late December at the earliest.
It's not nonsense, it's a valid concern but there is a lack of understanding in how the contracts trade and the specifications behind them. That being said, it is a smart move to take delivery, as the premiums for physicals are high. Lot of opportunity.
They meaning the COMEX? COMEX does not take any position in the contracts, they will simply enforce as needed.