So maybe Macquarie knows that the music is about to stop and the gold and silver paper contracts are not backed by metal 100% for delivery. Are they getting in early to take delivery before the stocks run out? From the end of March the CME Opens Pandora's Box https://www.sprottmoney.com/Blog/the-cme-opens-pandoras-box-craig-hemke.html
- In the end, the CME may have unwittingly sealed the fate of their pricing scheme last week by rushing to make COMEX a physical delivery facility. While the exchange is likely to survive April, the months of May and June will likely pose a significant challenge. Only a quick containment of the corona virus may assuage their crisis. If the mines, mints, and refineries can re-open in the next 45-60 days, perhaps the fractional reserve bullion banking system will be salvaged. If not? Well, let's just say that gold investors and stackers are in for a VERY interesting summer.
Most recently from end-June, Extreme COMEX Delivery Demand Continues https://www.sprottmoney.com/Blog/extreme-comex-delivery-demand-continues-craig-hemke-june-30-2020.html
- Due to this near failure [see March sauce above], the CME Group and the LBMA rushed to turn the COMEX futures market into a physical delivery vehicle in a desperate attempt to restore legitimacy to the derivative-only trading that takes place there. Remember, without underlying physical delivery, a commodity futures market might as well be trading baseball cards. Some physical delivery MUST be made at the futures contract price, otherwise the price discovered through futures trading is utterly illegitimate and fraudulent. - Three months later, it's clear that the CME has indeed opened "Pandora's box" and the Bullion Banks that operate on COMEX are desperately trying to hold the entire pricing scheme together. - The weight of all this delivery demand may eventually lead to a force majeure-style failure, but that's very likely not coming this month or next. The CME, the LBMA, and The Banks will work to protect their pricing scheme until the very last moment, so it would be foolish to think they're going to meet a quick end. - However, their fate was sealed in late March, and like a dying animal, the spasms of their death throes are clearly visible…if you know where to look.
In Eric Sprott's latest weekly wrap up radio cast, he mentions a suspicion that some group knows there is a physical shortage of precious metals, and so is demanding delivery on these COMEX contracts [white hats?] as a means to get physical gold and silver. https://www.sprottmoney.com/Blog/things-have-changed-in-precious-metals-lessons-from-a-volatile-week-weekly-wrap-up-july-2-2020.html
