Comex No Longer Fulfilling Your Gold Contracts With Physical Gold

The division of the New York Mercantile Exchange commonly known as the Comex provides a commodities market for gold, as well as aluminum, copper, and silver. Without going so far as suggesting it’s impossible to get physical gold when exercising your Comex futures contracts, Jesse’s Cafe Americain explains that these days it just doesn’t seem very likely:

“We would not conclude that you cannot get gold from the Comex in the exercise of your futures contract. ‘Cash settled’ is nothing new, and we ourselves have done this in the past. But we also have taken delivery, and have been speaking with other traders and funds, and many are spotting a trend.

“Comex is putting forward the offer of paper in the form of money or ETF positions very aggressively, and making it the much easier alternative. Delivery of physical gold from the Comex is no longer as straightforward or even as semi-convenient as it had been in the past…

“The conclusion we reach for now is that if one is counting on the ability to receive delivery of physical gold from the Comex for whatever purposes, then don’t. You will wait and fight and stand in queue to obtain the goods from Enron nation.”

More details on the story are available from Jesse’s Cafe Americain in its post on the Comex and exchange for physical gold.