Posted on 12/13/2008 7:18:14 AM PST by djf
From "Midas" Commentary by Bill Murphy LeMetropoleCafe.com Friday, December 12, 2008
I received a call this morning from a commodities broker who told me that the Comex is alerting various futures firms about the potential of a squeeze on the December contract and is advising the $840 December shorts to exit their positions. That is the remaining open position.
There have been 12,636 notices of delivery. The shorts have until December 31 to make delivery. Normally they deliver early to take in cash and earn the interest. They must be delaying. As I understand the situation, that represents about 40 percent of the gold available at the Comex, and of course someone could enter the scene late, buy February gold, and then spread into December, which would stun the shorts.
My broker friend said his back office said this sort of alert is highly unusual and that the concern is real, not only for gold, but for other commodities too, like copper and palladium, as there is a good deal of talk of taking deliveries there too. But gold is the one for which the advice to cover went out.
This is an extremely productive development and could spur the price of gold up quickly as word spreads. As we all know, buying Comex gold and silver (the cheapest way to buy precious metals) makes all the sense in the world in this financial environment.
I'm makin popcorn!!
Ping!!
Got milk???
;-)
—bflr-
Ping!
Not quite yet, but close.
For hyperinflation to happen, they have to find a way for all those “computer dollars” they gave to the banks to be turned into physical paper dollars, in the publics hands.
That’s why they’re moaning like an old whore over the fact that they can’t stimulate borrowing. People taking on debt is where they convert the fake stuff into the fiat stuff.
But people are debt saturated. And the confidence level is near zero.
Last time I bought copper pipe, it occurred to me that copper is the new gold! 3/4” 10 foot lengths are 15.67 at Home Depot right now. And I question the purity of the copper. I think there’s a bit more nickel in there than there used to be to keep costs down.
“...and is advising the $840 December shorts to exit their positions. That is the remaining open position.”
I’m just beginning to learn about this stuff, can you explain what this means. The language always baffled me.
If anyone else has been trying to buy 1 oz silver bullion for physical delivery, it’s been intermittently unavailable or only on EBay at ridiculous premium over spot.
My wife was skeptical, but I picked up another 100 oz. last week when it came available at reasonable pricing. Just some cheap insurance, IMO.
The price of copper has collapsed. Hope you didn’t buy too much at those high prices.
I don’t understand all that language either but it sounds like the people who’ve bet gold will down from $840 will get burned and better to minimize their losses now and cover.
You were lucky to get it.
A ummm... friend of mine went into a place last week with cash in hand to buy a 100 oz bar, from a place he has always, I mean always in the past been able to walk in, pay for it, and walk out with silver in hand.
Long time customer.
He got a runaround and was told March delivery is the best they can do now. Paid for it but I was not happy!
No. In fact, I redesigned the job and took 3 sticks back. No use keeping what I didn't need. BTW, the 1/2 inch was much more reasonable at $9.97 a stick.
James Sinclair has been pimping this for months and egging people on to take delivery. Smashing paper COMEX gold is the holy grail of gold bugs
I’m seeing copper now at $1.46 a pound and nickel at $4.86.
Copper dives during depression/deflation> Gold can go up
Intermission (before the real bottom)
I'm convinced now that I'm not the only one confused.
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