|Posted by Conspiracy Cafe on July 20, 2020 at 11:05 AM|
By Craig Hemke
June 30, 2020
Demand for physical delivery through the COMEX futures market continues, and this has significant implications for the future of the current fractional reserve and digital derivative pricing scheme.
It's now mid-summer and the July COMEX contracts have moved into their delivery phase. The numbers are as amazing as they are historic, thus this updated summary is necessary today.
Back in late March, the COMEX nearly failed, as Covid-related sudden delivery demands in the spot gold market drove massive losses for many of the Bullion Banks. Much has been written about this since, so there's no need to recap what happened. However, a handy summary—including an easy-to-understand explanation of the COMEX "delivery" process—can be found here: https://www.bullionstar.com/blogs/ronan-manly/the-...
Due to this near failure, the CME Group and the LBMA rushed to turn the COMEX futures market into a physical delivery vehicle in a desperate attempt to restore legitimacy to the derivative-only trading that takes place there. Remember, without underlying physical delivery, a commodity futures market might as well be trading baseball cards. Some physical delivery MUST be made at the futures contract price, otherwise the price discovered through futures trading is utterly illegitimate and fraudulent.
In late March, the CME and LBMA rushed to market a new contract that purported to "deliver" fractional ownership certificates in 400-ounce London Good Delivery Bars held within the LBMA vaults. Additionally, the CME publicly encouraged the use of COMEX contracts for physical delivery, and in doing so may have sealed their fate. We wrote about this on March 31 and strongly encourage you to re-read this link now:
Three months later, it's clear that the CME has indeed opened "Pandora's box" and the Bullion Banks that operate on COMEX are desperately trying to hold the entire pricing scheme together.
Let's start with COMEX gold...