COMEX: The longs take deliveries!

James Sinclair


“Today we had another 2,566 deliveries that were taken, or stopped, against the December gold contract. That brings the monthly total to 11,166 ounces in just two days worth of deliveries. The entire month of October had only 11,166 to give you an idea how heavy the buying of the actual metal has been so far. Once again the stopper of size has been Bank of Nova Scotia. We are off to a very good start but cannot relax.”

The above quote is a snippet from James Sinclair, the host of jsmineset.com which if this is indicative of the ‘longs’ taking delivery could result in a very interesting month indeed if the COMEX warehouses do not have enough physical gold to meet the demand. No doubt there will be another way of making a settlement via some form of yet to be invented paper substitute, but if the ‘longs’ insist on taking delivery of physical gold, we could see ebay premiums all round, just a thought! We did mention this possibility recently in our post entitled: 'COMEX: Has it got the gold? the issue having been raised by John Embrey of Sprott Asset Management among others, The above quote is a snippet from James Sinclair, the host of jsmineset.com which if this is indicative of the ‘longs’ taking delivery could result in a very interesting month indeed if the COMEX warehouses do not have enough physical gold to meet the demand. No doubt there will be another way of making a settlement via some form of yet to be invented paper substitute, but if the ‘longs’ insist on taking delivery of physical gold, we could see ebay premiums all round, just a thought!

We did mention this possibility recently in our post entitled: 'COMEX: Has it got the gold?' the issue having been raised by John Embrey of Sprott Assett Management among others, click here if you wish to read that article.

In January 2003, Mr. Sinclair launched, "Jim Sinclairs MineSet," which now hosts his gold commentary and is intended as a free service to the gold community.


If you visit his website you can sign up for his FREE email service which we believe that you will find both informative and enjoyable just click here.

Its now a question of watch this space..


To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address

For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.

Comments

[Gold Prices]

A snippet from Jims email today:

Speaking of deliveries, another 307 deliveries were assigned this morning. I can tell you that 43 of those were retenders by Greenwich Capital Markets. The total so far this month is 11,473 contracts or 1,147,300 ounces. I want to see the warehouse totals over the next couple of days before commenting on that. Time is needed to actually move the metal that is going out.

Trader Dan

[Doug]

Have you been following Anglogold Ashanti (AU) chart? Looks to me it is about to break out to the upside if it hasn't already. A possible buy? Options?

[Gold Prices]

Doug, we will take a look.