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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (31758)	10/25/2004 2:55:15 AM
From: The Vet	Read Replies (1) \| Respond to of 39344

I see nothing wrong with paying before getting what you paid for... So you think it is OK for a seller to sell you a product that he does not own and cannot deliver, that you have put up the full price for, in cash! Pardon me, but I don't think that "it happens every day with every transaction in the country " at all! If there is any delay on delivery of anything you may have to place a deposit with your order, but even in that case if you could show that the seller had neither the means nor the intention of making delivery on that order then I expect you would soon cry foul and be making a police complaint. My point was that the shorts knowingly sell more than they can possibly deliver, secure in the knowledge that the longs are not going to demand delivery, and the longs have to commit first on all open interest. The longs have to actually produce the cash IN FULL before the shorts even need to show their hands.

To: LLCF who wrote (31758)	10/25/2004 9:48:42 AM
From: Julian Augustus	Read Replies (1) \| Respond to of 39344

<On the other side, shorts have to deliver product that meets certain specifications and stamped by proper producers and have gold stored in licenced warehouses! IF there isn't enough gold to deliver to the longs, the COMEX [and NYMEX] GO OUT OF BUSINESS AND ALL SEATS ON THE EXCHANGE ARE WORTHLESS!!> Isn't that a great incentive then for the Comex to make sure the longs NEVER are in a position to overwhelm the shorts, even by changing the rules midstream to favor the shorts if need be? After all, if it is a question of the comex's own survival, which side will they be on?