Think about it... if the entire Wall Street complex can go insolvent and nothing major changes from it, do you actually think a blow-up in one small corner of the commodities market will lead to anything meaningful?
A potential COMEX default won't be the apocalyptic blow-up that all the doomers pray for. Price will temporarily surge, but then it'll fall back to earth.
The LME defaulted on nickel in 2006. And what happened? The price shot up, then quickly collapsed by over 50% in months. About 2 years later, nickel price had fallen by over 75%, and the LME is still the exchange it always was.
If a default were to occur, many cash settlements will be arranged at a price agreeable to the buyers, and interest will be charged daily on the short contracts until those shorts can deliver. Those shorts who still need to deliver will simply buy shares of SLV, take delivery, and pay off their Comex contracts. The SLV is so massive, it is a new depository, of sorts.
The only time to get concerned is if the price of SLV shoots to the moon, while its inventory get raided. Then I'll change my opinion.
Until then, all this garbage about a default at the Comex is just more doomer, conspiracy rhetoric, much like the "Crash JP Morgue" lunacy that was proven to be TOTAL BULLSHIT.
It's nothing more than a great story to get the doomer goons riled up. You guys may want to spend some time reading about Buffet, Phibro and the great silver scheme of 1997. Creating the illusion of inadequate supply in the silver market has been replayed many, many times.
Something I copied and pasted from elsewhere that might put less of a doomsday approach on a comex default that silver bugs are banking on making the price skyrocket and enriching them. I am long on silver also and have bars of my own but I thought this perspective from somebody who seems knowledge was interesting.
