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

To: LLCF who wrote (31771)	10/27/2004 3:49:16 AM
From: The Vet	Read Replies (2) \| Respond to of 39344

LLCF, odd comment from you when you said "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. You have been the one claiming that COMEX has the gold and they wouldn't knowingly allow more to be sold than they have, but you haven't bothered to look it up yourself? I assumed that everyone was aware they there is always insufficient gold in the warehouse of COMEX to make delivery in full in the event that all the longs demand it. COMEX warehouse stocks vary, but are just over 5 million ounces right now. Open interest is around 300,000 contracts and each contract is 100 ounces. According to my math, that's 30 million ounces sold by the shorts to the longs, which means that COMEX is naked about 25 million ounces, give or take a few million as the numbers vary... So what would happen if every long holding a contract simply demanded delivery? COMEX would have to find an extra 750 tons of gold, or change the rules......