Comex Search and Seizure
The comments below are an edited and abridged synopsis of an article by Craig Hemke
The bullion banks’ fractional reserve and digital derivative pricing scheme is in peril as refineries, miners and mints close in response to Covid-19. Will they be able to scrounge up enough physical metal to remain afloat through June?
Hemke has been warning of the outrageous volume of Comex EFPs (Exchange For Physical) for years. Due to a change of rules, the exchange (and the CME/LBMA) has been able to maintain the illusion of physical delivery through the April 20 delivery period, but it hasn’t been easy.
As the supply squeeze continues, the Comex should expect these delivery issues to continue in May and June. And what will happen if the next delivery month (June) sees more delivery requests than the Comex is fielding in April?
For now, an unprecedented disconnect continues to exist between the spot and front month futures price. This indicates tight supply and a failure of confidence in future delivery.
We’re told that the gold is there, it’s just in the wrong place. This is supposed to be the reason for the spread in price and the issues at Comex. If that’s the case, there must be a shortage of silver, too, and it must also be in the wrong place.
We’re told that the CME/LBMA is transparent and honest, with things such as fractional ownership of bars simply a new service that the banks are providing. If so, why is the CME/LBMA demanding complete secrecy from the CFTC regarding this new arrangement?
It’s a scam. The bullion banks have managed a just-in-time delivery scheme through increasing amounts of promissory notes, delivery receipts and unallocated accounts. The LBMA admitted to a total trading volume of 32,255 tonnes of gold in March alone. That’s an annualized run rate of over 380,000 tonnes, or about 135 years of global annual mine supply.
These banks are being called upon to deliver metal against their fraudulent contracts within their fractional reserve scheme. The scramble for gold and silver is on. If you don’t hold it, you don’t own it. The scheming should prove that there is no transparency, fairness and honest operation within the bullion bank pricing scheme.
Since 2010, Hemke has warned that physical demand would one day lead to an implosion of the pricing scheme. We are on the threshold, although it may take a while to reach the inevitable conclusion. Truth will always win, and lies will always unravel. Sometimes this process takes years to play out, but the end comes just the same.