LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page >> News >> Story  Disclaimer 
Latest Headlines to Launch New Website

Is Gold Price Action Warning Of Imminent Monetary Collapse Part 2?
By: Hubert Moolman

Gold and Silver Are Just Getting Started
By: Frank Holmes, US Funds

Silver Makes High Wave Candle at Target – Here’s What to Expect…
By: Clive Maund

Gold Blows Through Upside Resistance - The Chase Is On
By: Avi Gilburt

U.S. Mint To Reduce Gold & Silver Eagle Production Over The Next 12-18 Months
By: Steve St. Angelo, SRSrocco Report

Gold's sharp rise throws Financial Times into an erroneous sulk
By: Chris Powell, GATA

Precious Metals Update Video: Gold's unusual strength
By: Ira Epstein

Asian Metals Market Update: July-29-2020
By: Chintan Karnani, Insignia Consultants

Gold's rise is a 'mystery' because journalism always fails to pursue it
By: Chris Powell, GATA


GoldSeek Web

Craig Hemke at Sprott Money: Those 'exchange for physicals' at the Comex aren't real

By: Chris Powell

 -- Published: Tuesday, 27 November 2018 | Print  | Disqus 

Dear Friend of GATA and Gold:

The TF Metal Report's Craig Hemke, writing today at Sprott Money, does the math on the last year's worth of the use of the "exchange for physicals" mechanism of settling gold futures contracts on the New York Commodities Exchange. Hemke calculates that nearly 2.4 million Comex gold contracts have been settled this way since last November, totaling 7,442 tonnes of gold.

This total, Hemke notes, is 260 percent of annual gold mine supply and nearly equal to all the gold claimed to be vaulted by the members of the London Bullion Market Association, the Bank of England, and the Comex itself.

How can this be?

Hemke concludes:

"There are no 'exchanges for physical' taking place at all -- at least not in the sense of actual, unencumbered, and allocated physical metal. Instead, EFPs are just another part of the great scam known as The Fractional Reserve and Digital Derivative Pricing Scheme, where alchemized digital and unallocated gold is foisted upon the masses, who blindly accept 'exposure to the gold price' as a substitute for the real thing."

There's another question here, which GATA has put in writing to the U.S. Commodity Futures Trading Commission without yet getting a response, despite recruiting a member of Congress to prod the agency. That is, how does the commission regard EFP reporting, since it can't possibly be accurate in any conventional sense?

Your secretary/treasurer often has wondered if the EFP data reports only the trading back and forth of a very limited amount of gold among brokers for the U.S. government and other governments, to create illusory prices, with little if any actual net transfer of metal. If such trading is conducted at the direction or with the approval of the U.S. Treasury's Exchange Stabilization Fund and nets to zero gold actually changing hands, it presumably would be outside any regulation or formal reporting.

There might be an excellent story in this stuff for financial journalism, if any news organization dared to attempt it in regard to gold, governments, and central banks.

Gold mining companies might want to investigate it as well if they weren't more interested in mining their shareholders than in obtaining free-market prices for their metal.

The World Gold Council might seem obliged to be interested too, but its main purpose continues to seem to be to make sure that there never is a world gold council.

As for most gold market analysts, they are too much in love with their charts and formulas to examine any evidence that for many years now there have been no markets at all, just interventions.

Hemke's outstanding work is headlined "One Full Year of Comex EFPs" and it's posted at Sprott Money here:

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

* * *

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

To contribute to GATA, please visit:


| Digg This Article
 -- Published: Tuesday, 27 November 2018 | E-Mail  | Print  | Source:

comments powered by Disqus


Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2019 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


The views contained here may not represent the views of, Gold Seek LLC, its affiliates or advertisers., Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of, Gold Seek LLC, is strictly prohibited. In no event shall, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.