1/11/10 Gold Contract Default On COMEX

Precious Metals Market Analysis, By Michael Pennington (Copyright 2010 Pennco Coins)

In my opinion, this is a true headline. The whole purpose of the COMEX future contract is to deliver gold in the future at a guaranteed price. The problem now is that COMEX has no Gold. There warehouse is empty. Normally, this would be called a default, but when you own the game you can make the rules up as you go along. COMEX has announced they will only settle contracts beginning in 2010 by forcing the Contract Owner to accept GLD shares in settlement instead of actual gold. Therefore, they are exchanging paper gold for paper gold. Not a very secure feeling if you ask me. This also tells me that the Gold supposedly held by GLD for their shareholders is now being offered to COMEX customers. Is it reported and accounted for in GLD? I seriously doubt it. This whole paper to paper scam is nothing more than a Madoff Ponzi scheme.


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