Could Comex Default On Its Gold Exposure?
Greg Peel (Editor’s Note: This is the second article that deals with the possibility that COMEX may default on its December contracts in as many days. We are extremely interested in this subject and have been following it fervently. If and when the COMEX defaults on either its gold or silver contracts, the world will change. – JSB) The greatest amount of gold traded in the world at any time is traded on the Commodities Exchange (Comex) in New York in the form of gold futures contracts. Despite the importance and popularity of gold as a tradable commodity, a proxy currency and a hedge against inflation, the actual trade of physical gold on any given day represents a tiny amount when compared to that of “real” commodities such as oil and base metals. Thus beyond the vaults of the world’s central banks, the largest positions in gold remain “on paper”. Indeed the volume of gold traded in paper form in any given session can exceed the amount of gold in existence. Add in th fact that gold mi
