It is kind of weird to my thinking that banks (and COMEX) that sell you gold, then hold it on your behalf, actually do not have any gold. Yet the price they (banks and COMEX) set for selling the thing they dont have governs what people (miners) who have it get paid when they really sell 'it'.
It is strange to me this game is allowed to happen. I can come up with all sorts of dumb analogies... say Russell Crowe puts up for sale his Woolloomooloo Wharf apartment. Say he puts a price on it of $4 mill. Say that I open a paper contract on his flat. I clearly tell people I dont have it. But people can buy it from me for $50 bucks. Now we tell Russ that he is not allowed to 'get' $4 mill... because the price of his flat has been SET BY ME. At $50.
Now it is possible that someone will buy the $50 contract I sold for $60. That is, someone else has my paper contract that says '1 Russ Woolloomooloo Flat'. Now, I guess I have a problem if the holder of the paper stands for collection. That is, my paper promises delivery in 60 days. Now at 60 days, I can tell the holder, 'oh, roll it over for another 60 days... the price may go up.... then your contract may be worth $80... and you dont really want me to give you a flat, anyway; you dont want to have the bother of cleaning it, do you'
So, I somehow convince the holder of the paper to roll, and never collect. But just see if somebody else will pay him more for it... shortly.
This is all well and good and harmless fun, unless Russ is actually FORCED to sell his flat for $80 because DanHoff has a paper saying it is only worth $80.
Dare I ask... what does COMEX or a bank holding no gold, have to do with setting the price of gold an Aussie miner sells it at. I just dont get it.
Now, let us say the holder of '1 Russ flat' (valued at $80) stands for collection. Of course, I just say 'sorry, I dont have, I will declare bankruptcy... so you get NIL; or if you like I will give you, say a haircut, say $40 to settle your piece of paper; and I stay solvent; or maybe some clearing house says I need to pay in CASH... some law... so I say 'ok, the last 'Russ flat' paper for sale (I made another one last week) was valued at $85... so under the law, Russ flats are valued at $85 currently, so that is what I am obligated to pay'
In any scenario, COMEX only exists as some strange game between non gold miners to set the price of some oz of gold.... like a 1 Russ flat.
Any person using COMEX to invest in gold is mad. They dont have any gold. Why would you buy something from somebody who does not have it. If you wanted it.
Now timber will come on here and explain the COMEX sellers dont really want to sell physical gold. And the COMEX buyers really dont want to obtain physical gold.
So, I ask again... then why would the 'world' allow an entity that has nothing to do with the physical commodity tell the miners of the commodity what price they will receive from the real buyers.
I just seems odd to me. But to a bankster it seems completely normal.
