COMEX December Contract Squeeze, page-6

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"COMEX really is not needed at all"

If COMEX was closed down on Monday morning and all contracts voided, the LBMA price makers (who are all market risk capital regulated institutions) who hold short contracts against their long physical position (to reduce their regulatory capital) would be forced to dump their physical gold inventories.

The price of gold would be under $800 by the end of the day.

Through hedging, COMEX is deeply connected to the physical gold market and because of the extraordinary liquidity it provides, COMEX get to determines the price.

COMEX is the gold market.