w/caveat: that some folks think I'm loco; I'd like t'make U aware & remind others:
I'm on record categorically stating t'following as truth as I know it:
FIRST
COMEX GOLD GOOD DELIVERY BARS are:
1)stacked on pallets
2)pallets are moved, No, read that: shuffled by forklifts daily,
3)pallets are placed between yellow painted lines on Comex authorized warehouse floors...
4)there are more than one "Warehouse" with said pallets of gold and said yellow lines.
5)said yellow lining is to denote ownership of gold on said pallets
palletsful of gold between yellow lines are called WAREHOUSE STOCKS,
6)palletsful of gold outside of yellow lines, IN THE AISLES, are not,
I REPEAT, ARE NOT labelled WAREHOUSE deliverable stocks.
This permits a global high stakes poker game of no small proportions.
I personally have not one shred of interest whether palleted gold is WAREHOUSE STOCKS or "aisle inventory"...
Why?
Because all that GOLD resides inSIDE the damn warehouses,
all are good delivery COMEX GOLD CONTRACT SPEC SATISFYING inventory;
i.e., all "fair game" for taking or making delivery.
Just fire up a forklift,
grab an "aisle pallet,"
put it inside a labelled yellow painted rectangle...
VOILA...DELIVERED GOLD!
I've seen this with my own 2 eyes,
most of the public has NOT.
Secondly...
First Notice Day is a "warning" day...tis all.
The chess game continues, unabated.
I personally doubt it will cause much except 2 sided trade.
<bThird...
First notice day is NOT first delivery day,
but is notification.
What does that mean?
Instead of futures contracts being "leveraged ownership,"
i.e., 100 oz contract being controlled by 3% "earnest money/margin" payment,
balance of full 100oz Gold Futures Contract now becomes "fully due and payable."
Therefore, those who don't have the "wallet" to pay for their controlled pallets full of gold,
either roll their contract forward into the next contract/delivery month on the Comex, in this case, APRIL GOLD,
OR
step aside and get out of their contractual obligation.
In otherwords,
Gold Futures Contract Long delivery can be enforced,
but not mandatory on first notice day to the contract seller.
Now, with all that background being laid,
let me summarize it in 3 short phrases...
1)1st notice day on COMEX means squat
little wallets are long gone,
big wallets are still in poker game.
2)1st notice day on LBME means beaucoup...
we don't get those "indications" which are the ones I want to watch!
3)Deliverable gold in London is available for COMEX delivery...
vaults- & vaults- and vaultsful o'gold
in the aisles,
in the yellow rectangles
hanging from the rafters
tucked in the corners
as high as a forklift can reach.
O/49r |
