Do I have everyones attention? I keep reading about this, have posted what I think is a valid opinion, have asked for anyone to tell me what is wrong with my opinion, have never heard, yet people keep posting about Comex default.

My opinion

COMEX GOLD CANNOT DEFAULT!!!!

Comex is an exchange of futures contracts the way The TSX is an exchange of shares. If you "buy' a contract for a commodity, you have bought the contract, you have NOT BOUGHT THE COMMODITY. I know that sounds wierd, but I believe it to be true. When you buy Ford shares (yeah I know) you buy shares, not the car. When I or other farmers buy or sell a barley or canola contract through ICE (formerly the Wpg Commodity exch), we are setting up a contract with someone on the other side of the market (ie a buyer with a seller). Almost all transactions are closed out by "buying the other side" of the contract at some point. On rare occaisions, the contract remains open and is deliverd upon. The fact is ICE does not claim to have huge bins of grain, and I don't think COMEX has huge stores of gold or oil or cotton or whatever. IF (big if) those holding contracts for gold delivery wanted to take possesion of their gold, they would hold their contracts, then would make arrangements with those on the "sell" side to have it delivered as per the specs of the futures contract. If there is not gold available, then it is the person holding the contract saying they will deliver that is IN DEFAULT, NOT COMEX. To say Comex would be in default would be like saying the post office is in default if you don't pay the bill the telephone company sent you.

I OPENLY INVITE ANYONE TO TELL ME WHERE I AM WRONG HERE. If you can't tell me, please don't mention Comex defaulting, and "john Embry says" doesn't quite cut it either (nothing against John Embry).

Sorry for the rant, but either I am out to lunch or many other posters are, and if it is me, I want to be set straight.

Respectfully, Ganalane (now going out to fix my cattle feed rack that is NOT gold plated, and will return to hopefully read responses).