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

To: Julian Augustus who wrote (31769)	10/25/2004 9:58:10 AM
From: LLCF	Read Replies (1) \| Respond to of 39344

<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? > No, the point is why would they EVER get into that position? For what reason? You are ASSUMING the Comex doesn't have the gold to deliver. THis should be simple to find out, and I don't know why anyone would come on the thread and claim such without at least looking it up. <if it is a question of the comex's own survival, which side will they be on?> As a Comex seatowner I'm on the side of not taking risk on such things... why would I allow shorts to sell contracts on my exchange that I don't think they can deliver on? It's stupid, THEY DONT NEED TO DO THAT. Now, that's not to say things happen, but someone better look at the open interest and then what is in the vault rather than spout BS conspiracy stuff. The COMEX is entirely different than the OTC market. It should be easy enough to find out what COMEX accepts as 'deliverable gold'... ie. do they accept a promise from Newmont? Does the gold HAVE to be in the vault, and what percnetage [or all?] and for what size positions? They have a lot of gold under that exchange, why doesn't someone do the legwork instead of BSing? As for rule changes... it would be quite shocking indeed if the COMEX actually changed the contract... ie. deliverability date, amount, or changed it to a cash settlement or some such thing... but other things like margin are stated upfront, and folks that actually want to take delivery don't have to worry about that anyway. I see no reason a change in margin couldn't effect shorts as much as longs. DAK