Individual people aren't the ones trading on futures markets and taking delivery of metals. We both know that. The people doing most of the trading have millions and billions at their disposal to play with.
This is an article suggesting that people buy Comex gold contracts in order to take physical delivery of the gold. I'm dumbfounded that you're posting it to try and prove your point.
And yet the text that follows that line is talking about how to take physical delivery of gold or silver and telling you when you can expect it:
"In order to take delivery of the gold or silver with Lind-Waldock as contract expiration nears, you would be required to have the full contract value deposited in your account with Lind-Waldock at the price it was purchased.
Then, on First Notice Day, (November 28 for the December futures contract) COMEX will start "assigning" contracts to clients who had bought (established long positions). The last trading day of the December contract is December 29, 2008, but COMEX then would need a few days to process all of the deliveries. You would not actually be able to take physical delivery of the contracts until some time in early January."
Again, how is this supposed to be making your point...? This is touting that Comex contracts allow investors to take physical delivery of much smaller quantities (relative to what they're comparing against) of gold in New York versus significantly larger quantities in London.
I think you posted the wrong link? My search didn't find that text in this article. Indeed, this article is describing how gold gets to CME to be physically delivered and how you can actually take physical delivery.
I'll add back some of the text that you excised: "But this does not mean that all that business is founded only on speculation. For example, a jewelry manufacturing firm may contract to sell a gold contract as they physically buy gold. Perhaps because the product they are making has not been sold to a customer yet.
For simplicity's sake, imagine a jeweler needs 100 ounces of gold to make four hundred gold rings. The process may take him two weeks, and in that time period he may not want to take the price risk. So the jeweler decides to sell one gold contract (100 ounces) on the CME at the same time as he buys the physical gold for production. In this way he is hedged, which means he no longer has price risk. In two weeks' time, when the rings are ready and he has found the buyer, he sells the rings to the buyer and at the same time buys back the contract."
Again, I am totally dumbfounded. You're posting a statement telling us about the vast quantities of gold that have been...physically delivered?
So tell me, where does the CME gold settlement procedure describe "roll[ing] the contract"? I've been asking to see that for a very long time now.
The conspiracy this web site paints is ridiculous. Looking at only the futures markets ignores the London physical market, which is the largest market.
You realize you already posted an explanation on how to take physical delivery of gold and silver from the very same broker this person mentions using, don't you...? See your second or third link above for the detailed memo from the broker. Perhaps we should forward it to this guy?
Again, ignoring the London physical market--the largest market--makes absolutely no sense. It's what makes these Comex conspiracy theories so hilarious.
You, Mr. Finance Degree, certainly know what hedging is, so why do you pretend to be ignorant for the sake of spreading this nonsense?
All of the links touting your conspiracy theory are amateur web sites, forum posts, or blogs. You think they're credible because you agree with them, otherwise you would use your brain and recognize how ridiculous it is.
