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Craig Hemke at Sprott Money: The Comex 'exchanges for physical' fraud

Section: Daily Dispatches

7:35p ET Tuesday, April 17, 2018

Dear Friend of GATA and Gold:

The sudden rise in settlement of Comex gold and silver futures contracts through the formerly obscure off-exchange mechanism of "exchange for physicals" is likely just increasing the supply of imaginary metal, the TF Metals Report's Craig Hemke writes today for Sprott Money.

... Dispatch continues below ...


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Hemke writes: "The escalating abuse of this process has brought the sham and fraud of the digital derivative pricing scheme into greater focus. Mainly, how in the world does a swapping of derivative contracts, where there's obviously zero physical metal involved, equitably determine the true price and value of underlying physical asset?

"Additionally, what does the increasing volume of EFPs say about the state of the physical market and the availability in size of physical gold on demand? If the Comex/LBMA is simply increasing the amount of leverage in the system, one must wonder how stretched and stressed the pricing scheme has become."

Hemke's analysis is headlined "Comex Exchanges for Physical" and it's posted at Sprott Money here:

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

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