The Comex contract clearances the other night, at record levels,...

The Comex contract clearances the other night, at record levels, may be associated with the US$3.5 billion bullion acquisition by the Saudis as rumoured by the press some weeks ago and confirmed in one of the US Senate/Fed hearings pre the US election.

The settlement was supposedly consumated over a period of weeks/months as there simply is not enough physical gold in the system to do it one day.

Though not very widely publicised there is no doubt some heavier market players would have noticed and could be backing positions accordingly-one way being the better quality gold stocks around the traps.

Basic economic theory would suggest that if demand is so obvious why isn't the gold price going solidly upwards to the right in perpetuity?

Conspiracy theory might suggest that various counterparties do not want all the contracts exercised and will use whatever means reasonably available to knock the price down. This would include shorting (dangerous when there is a big natural buyer?)or simply dumping by borrowing gold from friendly central banks. Notice how firm the lease rates have been of late?

All good fun and am personally long physical gold- and am happy with the A$ price irrespective!

Hey, maybe thats it! The A$ gold price has not varied too much in the past 48 hours, hence the stability in DOM and NCM?LOL

Cheers,TAS