tag:blogger.com,1999:blog-7982981413278241287.post5807308420152107276..comments2023-10-28T17:54:39.467-06:00Comments on The Golden Truth: The Truth About The ComexDave in Denverhttp://www.blogger.com/profile/03016238915167131989noreply@blogger.comBlogger15125tag:blogger.com,1999:blog-7982981413278241287.post-74008558427650338572009-12-29T22:43:25.975-07:002009-12-29T22:43:25.975-07:00The LBMA does not default it calls a default to al...The LBMA does not default it calls a default to allow the ring out to occur, but;<br /><br />When the International Tin Council (ITC) called a default in the tin contract they hired Mansion House and 850 Queen's Council attended. There was not enough room in the building for solicitors, bankers or even barristers. The ITC then got hit by a blizzard of writs well over 10,000, and called in the receiver as a step to avoid and mitigate the legal fees.<br /><br />Now as some have quite rightly pointed out the LBMA is much, much bigger than than the lowly ITC. We can therefore expect a much, much better response from the legal community for the LBMA. I would anticipate that they would at least hire the Queen Elizabeth Convention Centre to discuss the default in the contract. I would anticiapte a very miserly turnout of Queen's Councils to be 3,500 before we look at any junior ranks. Then of course we have the American Bar Association members who will be looking for any scraps of American litigation that may be on offer.<br /><br />The poorest and lowest of Queens Council will eeking out a living on the scraps offered by a minimum daily fee of 10,500 guineas. We can expect the day cost of the workout to be running at a measly minimum of $10,000,000. Trial dates usually require at least year to prepare and the cases will go on for, well, years. Even the fattest of associations must be tempted by idea of creditor protection faced with this prospect.<br /><br />There are those who may say that the LBMA is not responsible for the contracts. Well I can firmly say that the ITC argued the same way and do you know what? These clever Queens Councils had been polishing up libraries of case law that differed with this simplistic view.<br /><br />So I bet you donuts to dollars that the default in the contract will soon be followed by a receiver in the LBMA, whatever you may else you may believe.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-74452663362075475062009-12-28T21:19:12.948-07:002009-12-28T21:19:12.948-07:00Bron, you are being scrutinizingly pedantic with s...Bron, you are being scrutinizingly pedantic with semantics here. Of course the LBMA would not itself default, but it does essentially regulate all aspects of bullion trading on the LME. I use LBMA/LME interchangeably, as do many commentators. Sorry for the confusion.<br /><br />As for EFP vs. "settlement," if I'm long a contract, and you ask me if I'll take SLV instead of cash or silver, that is "settling" the contract.Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-64796557006381332232009-12-28T21:13:52.534-07:002009-12-28T21:13:52.534-07:00fresbee - thanks for the feedback. I have your sit...fresbee - thanks for the feedback. I have your site bookmarked now.Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-20049891040381664892009-12-28T20:49:33.234-07:002009-12-28T20:49:33.234-07:00Hey dave
Just dsicovered your blog. Good stuff.
...Hey dave<br /><br />Just dsicovered your blog. Good stuff.<br /><br />I manage my own site at:<br /><a href="http://www.investingcontrarian.com" rel="nofollow"> Investing Contrarian </a><br /><br />I work for Private Equity fund for emergin markets and also do personal trading in precious metals.<br /><br />fresbeeFresbeehttps://www.blogger.com/profile/06370765231392042944noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-43763637868328529022009-12-28T20:38:11.359-07:002009-12-28T20:38:11.359-07:00Regarding the LBMA, it cannot "call a default...Regarding the LBMA, it cannot "call a default" as it is not an exchange, just a trade organisation. All precious metal deals done in London are OTC as Anonymous says, but by definition OTC are off market, off exchange and are just private deals between parties. If there is a default it will be by a single bullion bank, not the LBMA or the London market as a whole.<br /><br />My understanding is that futures contracts cannot be settled with SLV shares. SLV shares can be used as one of the legs of an exchange for physical (EFP), which is not the same as settling a futures contact.Bron Sucheckihttps://www.blogger.com/profile/00530576934994289879noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-30457342260427749642009-12-25T15:52:41.849-07:002009-12-25T15:52:41.849-07:00Dear Joe,
Yes, the LME ran out of nickel and call...Dear Joe,<br /><br />Yes, the LME ran out of nickel and called a default, a force majeure. Under the contracts they paid out at a ring out price on old contracts and traded almost immediately on new contracts. The trick in silver is to avoid the payouts on:<br /><br />1. The short sales on the SLV's. JPM has been shorting SLV shares and under the rules has to deliver real silver to the SLV. How do they get the SLV to accept a ring out price for the SLV shares shorted?<br /><br />2. The COMEX has been using SLV as a paymnet method how do this continue when SLV obviously is less than physical silver. Looking at the shorted shares.<br /><br />3. How do they co-ordinate the ring out price with London on the force majeure?<br /><br />As Ted Butler says the longs are going to suffer a spiritual experience. I can't see why they are still trading.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-14947443758368243362009-12-25T08:11:12.582-07:002009-12-25T08:11:12.582-07:00Always buy physical silver,Always buy physical silver,Jeff Choehttp://goldsilverinvestment.blogspot.comnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-43815495287790298792009-12-25T07:27:34.940-07:002009-12-25T07:27:34.940-07:00The LME ran out of nickel a couple of years ago an...The LME ran out of nickel a couple of years ago and changed the rules to allow for cash settlement.<br /><br />I believe these corrupt elites will change the rules at any time, in any market, to suit their own needs.<br /><br />Additionally, the FED will never stop the printing press until the dollar is dead. History has shown this.<br /><br />Joe M.Joehttps://www.blogger.com/profile/16005483996588605077noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-76764113807323646462009-12-24T16:26:10.313-07:002009-12-24T16:26:10.313-07:00@gyc: Happy holidays back at ya! Hopefully the n...@gyc: Happy holidays back at ya! Hopefully the next week brings a lot snow to the Rockies because I plan on doing a lot of skiing. No Pain, No Jane (Mary Jane, Winter Park).<br /><br />UGH on the FNM/FRE thing. I said several years ago that FNM/FRE would be used as monetization conduits when the housing bubble collapsed - that's what is going on here. Taxpayers are geting plugged in the ass with no lube by Geithner/Obama/Summers...Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-24619882870550686012009-12-24T16:22:08.359-07:002009-12-24T16:22:08.359-07:00@ 1st anonymous: there's a monthly or quarter...@ 1st anonymous: there's a monthly or quarterly report that comes out that shows the breakdown of the COT categories. JPM is not specifically listed, nor are the names of any of the players, but it is well known, widely accepted and never denied that JPM is the big silver short. HSBC is the second largest silver short. You can pull up Ted Butler's work, as he has studied this for over 20 years and has given the world a brilliantly detailed map of how the Comex operates.<br /><br />It is also public fact that JPM inherited a massive Bear Stearns Comex silver short position (something like 56 million ounces worth) when JPM subsumed Bear's carcassDave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-16816447690791922332009-12-24T16:17:03.563-07:002009-12-24T16:17:03.563-07:00Agree the LBMA is where the real game is played, b...Agree the LBMA is where the real game is played, but the Comex, for now anyway, sets the price. This is changing, as we transition from a market in which paper crooks set the price to one in which the real buyers craving real gold/silver become the new price-setters.Dave in Denverhttps://www.blogger.com/profile/03016238915167131989noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-70724515301999467582009-12-24T16:01:40.103-07:002009-12-24T16:01:40.103-07:00Dear Dave,
I don't think it happens like that...Dear Dave,<br /><br />I don't think it happens like that. The COMEX is not important in the sale of physical silver. The LBMA is important in the sale of physical silver. The COMEX won't blow up as you say they can change the rules. The LBMA will blow up as they can't change the rules. The option open to the LBMA are call a default as they did in the case of the TIN Council insolvency. The SLV run by JP Morgan relies on an operating LBMA not an operating COMEX. SLV will bow up, the LBMA will go into a ring out. The short volumes on the LBMA are not as great as the COMEX as they are held on OTC contracts. This allows the COMEX to call a default and ring out quickly. The blame will be placed on London not Chicago or New York. London is where the big boys go to play Cowbys and Indians with real bows and arrows, a murky place of loose regulation.<br /><br />This will happen when real silver shortage occurs and they can't stop the physical players buying. The silver price is the inverse of the dollar and a coming dollar default puts an absolute cap on the time period of the LBMA default and afterwards the COMEX.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-3066557573233570812009-12-24T15:37:39.233-07:002009-12-24T15:37:39.233-07:00Dave
Where did find out about the short position o...Dave<br />Where did find out about the short position of JPM?<br /><br />ThanksAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-27737710338702481602009-12-24T14:01:02.434-07:002009-12-24T14:01:02.434-07:00If you want to get annoyed:
http://tinyurl.com/ygp...If you want to get annoyed:<br />http://tinyurl.com/ygpzwug<br /><br />"Treasury removes cap for Fannie and Freddie aid<br />Fannie Mae and Freddie Mac receive unlimited future funds from taxpayers to stay afloat"EconomicDisconnecthttps://www.blogger.com/profile/02802078645713106743noreply@blogger.comtag:blogger.com,1999:blog-7982981413278241287.post-5345173201506981792009-12-24T13:44:41.190-07:002009-12-24T13:44:41.190-07:00Dave,
Good article. I love silver as well.
Have ...Dave,<br />Good article. I love silver as well.<br /><br />Have a great Christmas holiday and take a break!<br />All my best.EconomicDisconnecthttps://www.blogger.com/profile/02802078645713106743noreply@blogger.com