"There's no gold"!

[Zhorro]

This ZeroHedge article discusses the current state of the Comex market:

https://www.zerohedge.com/markets/theres-no-gold-comex-report-exposes-conditions-driving-physical-supply-problems

For those that view the paper market as a "price discovery" mechanism, it now appears to have turned into a gold discovery mechanism - and the gold ain't there!

[Oldun]

 

[Oldun]

Bit of a clanger in the article claiming a 1oz gold eagle at over $2100......the picture is of a gold proof coin !

[AndyS]

Quote

“the Related Position [Physical] must have a high degree of price correlation to the underlying of the Futures transaction so that the Futures transaction would serve as an appropriate hedge for the Related Position [Physical].”  Consequently, since there has been a massive price decoupling between physical and paper gold prices, perhaps this price decoupling has enabled the underlying holder of longs in gold that asked for physical delivery to reject any EFP transaction, since there is no longer a “high degree of price correlation” between paper and physical gold, and to insist on physical gold delivery with no substitution for this request.

Oops ... 

Question 1, is this one of these feedback loop thingies where more demand for physical delivery will drive less and less price correlation between physical and paper as the days pass - which will in turn drive more demand for physical deliveries?

Question 2, could this ‘break’ COMEX?

[Zhorro]

7 minutes ago, AndyS said:

Oops ... 

Question 1, is this one of these feedback loop thingies where more demand for physical delivery will drive less and less price correlation between physical and paper as the days pass - which will in turn drive more demand for physical deliveries?

People say "If you don't hold it, you don't own it".  So, it would not be surprising if there is an increase in demand for physical deliveries - and maybe less interest in paper gold.  But traders are always looking to make money, so who knows what will happen to the price correlation!

 

7 minutes ago, AndyS said:

Question 2, could this ‘break’ COMEX?

As everything else is getting bailed out, I am sure the COMEX will survive!

[AndyS]

I’m not sure you can bail out a lack of gold other than with a bailout that comprises a large pile of actual gold 😛

[HawkHybrid]

there's no toilette roll and pasta, and whatever else that

used to be on the now empty supermarket shelves.

safety precautions against coronavirus is a worldwide

logistics problem that affects everything shipped in

physical form, not just gold.

is the comex affected? of course it is. just look at the stock

markets, everything is affected. singling out comex is a

little bias don't you think?

there is a reason why physical delivery might be problematic,

it's called quarantine, a measure taken to try and save lives.

why let facts get in the way of a good story?

 

if nothing else the increase in comex volatility is proof that

it's not just a paper market. ie it is actually price discovery

with strong links to the physical metal. put another way if

comex was not strongly linked to physical (as suggested by

some), then it would not be affected by physical delivery

problems at all.

the paper market is an extension of the physical market.

 

HH

 

[Abyss]

Keiser Report | Gold: Problems with Exchange for Physical | E1520, Mar 28, 2020

 

[Michal]

 

[BazzaC]

1 hour ago, Michal said:

 

"Gold. Get you some while you can"

[Zhorro]

Well, maybe there is 50%!

https://www.zerohedge.com/commodities/comex-bombshell-most-eligible-vaulted-gold-has-nothing-do-comex

[5huggy]

4 minutes ago, Zhorro said:

Well, maybe there is 50%!

https://www.zerohedge.com/commodities/comex-bombshell-most-eligible-vaulted-gold-has-nothing-do-comex

50% = 1/2 (half)  - - ergo Half truths as ever when "CRIMEX " involved IMHO 😉

[Oldun]

https://www.mining.com/web/gold-bars-flying-11k-miles-to-ny-to-ease-supply-squeeze/

[Arganto]

4 minutes ago, Oldun said:

https://www.mining.com/web/gold-bars-flying-11k-miles-to-ny-to-ease-supply-squeeze/

Interesting, thanks 👍

[Melon]

On 16/04/2020 at 18:51, 5huggy said:

50% = 1/2 (half) 

@5huggy can you run me through the math again? I got lost somewhere in the middle 😄

[Oldun]

Prelude to a rise in clients taking physical delivery and CME having to settle in cash or cliaming a Force Majeure ? Why would they need a $7,000,000,000 credit line ? Speculation as the CME Group deals in many markets.

https://www.marketwatch.com/story/cme-group-secures-7-billion-credit-facility-to-protect-against-a-clearing-member-default-2020-04-30?siteid=bigcharts&dist=bigcharts

[Oldun]

To remind everyone what The CME Group actually is.

https://www.cmegroup.com