The demand for physical gold and silver is high and supplies are tight....the paper gold/silver market is down,
driving down the price of bullion....what a scam..hedge funds in control for now.....when will this end, if ever??
Defaults have already begun- First is the Shanghai Exchange- They have stopped trading and will close out contracts in CASH as they don't have the bullon to support. This is the start. Do some research and you find similar- physical market is tight and with the Chinese/Indians buying up like crazy and other physical redemptions- COMEX is next.
"With immediate effect no new orders may be placed and all open positions will be financially settled at the settlement price determined by the Hong Kong Mercantile Exchange and its designated clearing house," the operator said in a statement on its website at the weekend.
The HKMEx intends to re-apply for the service with stronger and more effective market maker programs, it added.
Now keep in mind, what this means is that the powers that be will be "paper" driving the price down more and more to the point in which they feel is a good one to "close" their doors and just payout in cash like the Shanhai Exchange.
Absoulutely amazing that the Shanghai anouncement did not get much press. Oh by the way, they also commented that after they close out existing contracts, they plan to re-submit for their license to trade -don't be surprised if it is in the same market again. What a scam.
*** Some other info that has been removed from most of the internet :
“[O]ne question that I have about the SGE that I can’t find anyone to answer is why gold deliveries fell to virtually zero after April 22nd. My conclusion is that the sellers on the SGE have run out of bullion for immediate delivery as I can’t imagine that buyers don’t want to hold gold now that is down significantly from March/April levels.
This kind of a period with zero physical delivery did happen once before back in January 2011. It last approximately 20 days, days with less than 1000 kg delivery, mostly zero KG delivered. In May we are approaching 17 days of sub 1000 KG per day deli