TYT: Financial Armageddon – Swaps Redefined As Futures

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Gold Delivery For Feb Way Up

Comments Off on Gold Delivery For Feb Way Up

Gold delivery for the 1st notice day in February was 43 tonnes, when compared to the normally busiest month of December was less than 10 tonnes.

Today was first notice day for February delivery in gold, and as usual, we had a waterfall raid in gold to $1655.  The cartel MO has long been to raid gold and silver on options expiration as well as first notice day, to help prevent longs from standing for delivery.

While the the cartel raid was successful based on the paper futures price, it was an epic fail based on physical gold delivery requests, as a monumental 1.391 million ounces, or 43.26 tonnes of gold stood for delivery today on first notice day. 

To put this number in perspective, December delivery in gold, which is traditionally the largest delivery month of the year, saw less than 10 tonnes stand for delivery.

Has the Buba’s gold repatriation request ignited a full-fledged run on the cartel gold bank?


From Harvey Organ’s COMEX update:

Today we had first day notice and what a surprise.  We had a massive 1,391,000 million oz of gold stand or 43.26 tonnes of gold.  I have been following the gold and silver comex data from the mid 1970′s and I have never seen anything like this before.  You will recall that this past December we had only 10 tonnes of gold delivered upon.  Generally December is the biggest delivery month of the year.  The comex is not a physical market.  If one needs physical they generally head over to London at the LBMA and purchase the metal over there.  The high amounts standing may mean that our gentlemen from Eastern persuasion are having difficulty finding metal and thus they are heading over to our neck of the woods to obtain this very valuable commodity.

The total comex gold open interest rose 425 contracts to settle at 431,137 from Wednesday’s level of 430,712.  We now have the number of contracts for gold standing as today is first day notice.  The total number of contracts standing for gold is a whopping 13,910 contracts or 1,310,900 oz of gold which translates to 43.26 tonnes of gold.  I am sure that Blythe will be one busy girl these next few weeks as she tries to entice some longs standing to accept paper instead of metal.  The next non active contract month is March and here the OI rose from 1087 up to 1211 for a gain of 124 contracts.  The estimated volume today at the gold comex was fair at 161,916.  The confirmed volume yesterday was quite good at 245,696.


In all the years that I have covered the comex I have never seen such a high amount of gold standing.  The comex is a paper market and too see such a high level of gold standing seems to suggest that the gold investor boys (and sovereigns) are crossing the pond because physical gold is scarce.  London must be out or close to it.

Source: SilverDoctors

Monies and Positions Not Safe in the Futures and Options Markets


Barnhardt Capital Management –   Below are key quotes in a very brave and honest letter from Ann Barnhardt of BCM which has ceased trading as a result of no confidence in the futures and option markets.

The reason for my decision to pull the plug was excruciatingly simple: I could no longer tell my clients that their monies and positions were safe in the futures and options markets – because they are not. And this goes not just for my clients, but for every futures and options account in the United States. The entire system has been utterly destroyed by the MF Global collapse. Given this sad reality, I could not in good conscience take one more step as a commodity broker, soliciting trades that I knew were unsafe or holding funds that I knew to be in jeopardy.

Everything changed just a few short weeks ago. A firm, led by a crony of the Obama regime, stole all of the non-margined cash held by customers of his firm. Let’s not sugar-coat this or make this crime seem “complex” and “abstract” by drowning ourselves in six-dollar words and uber-technical jargon. Jon Corzine STOLE the customer cash at MF Global.

…. oh shit, MF Global tip of the iceberg

I have learned over the last week that MF Global is almost certainly the mere tip of the iceberg. There is massive industry-wide exposure to European sovereign junk debt. While other firms may not be as heavily leveraged as Corzine had MFG leveraged, and it is now thought that MFG’s leverage may have been in excess of 100:1, they are still suicidally leveraged and will likely stand massive, unmeetable collateral calls in the coming days and weeks as Europe inevitably collapses. I now suspect that the reason the Chicago Mercantile Exchange did not immediately step in to backstop the MFG implosion was because they knew and know that if they backstopped MFG, they would then be expected to backstop all of the other firms in the system when the failures began to cascade – and there simply isn’t that much money in the entire system. In short, the problem is a SYSTEMIC problem, not merely isolated to one firm.

…and a very dangerous sign ahead

Perhaps the most ominous dynamic that I have yet heard of in regards to this mess is that of the risk of potential CLAWBACK actions. For those who do not know, “clawback” is the process by which a bankruptcy trustee is legally permitted to re-seize assets that left a bankrupt entity in the time period immediately preceding the entity’s collapse.



The futures and options markets are no longer viable. It is my recommendation that ALL customers withdraw from all of the markets as soon as possible so that they have the best chance of protecting themselves and their equity.

full letter can be found on Ann Barnhardt’s blog.




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