COMEX: The longs take deliveries!

It's getting interesting on the COMEX

“Today we had another 2,566 deliveries that were taken, or stopped, against the December gold contract. That brings the monthly total to 11,166 ounces in just two days worth of deliveries. The entire month of October had only 11,166 to give you an idea how heavy the buying of the actual metal has been so far. Once again the stopper of size has been Bank of Nova Scotia. We are off to a very good start but cannot relax.”

The above quote is a snippet from James Sinclair, the host of jsmineset.com which if this is indicative of the ‘longs’ taking delivery could result in a very interesting month indeed if the COMEX warehouses do not have enough physical gold to meet the demand. No doubt there will be another way of making a settlement via some form of yet to be invented paper substitute, but if the ‘longs’ insist on taking delivery of physical gold, we could see ebay premiums all round, just a thought! We did mention this possibility recently in our post entitled: ‘COMEX: Has it got the gold? the issue having been raised by John Embrey of Sprott Asset Management among others, The above quote is a snippet from James Sinclair, the host of jsmineset.com which if this is indicative of the ‘longs’ taking delivery could result in a very interesting month indeed if the COMEX warehouses do not have enough physical gold to meet the demand. No doubt there will be another way of making a settlement via some form of yet to be invented paper substitute, but if the ‘longs’ insist on taking delivery of physical gold, we could see ebay premiums all round, just a thought!