Dear CIGAs
I have spoken to 3 of the 4 warehouses that hold the COMEX precious metals. It seems that a lot of metals are being withdrawn. Each warehouse states the same bottom line – people/entities are removing metals and it’s far above what the employees would call normal.
With that in mind, we have some difficulties that fall onto the warehouses. These people are very courteous and truly want to help, but the load they have been given has slowed the process down quite a bit. I suggest to all, not to leave a message on their answering machines, but to keep calling till someone picks up the phone. Please be courteous with these people – they are working way too hard to keep up with demand.
Each warehouse has its own procedure for delivery. In order to alleviate some of the headaches for my clients, we are setting up a system where we will do all the leg work (for an additional fee of course) for them. So opening an account to take the physical along with the delivery can now be done within our system.
Our delivery fees have been inflated, so from this point forward the commissions and processing fees are $350 per 100 ounce bar. That price will get one up to the final step which is the arrangement for delivery thru each warehouse. I will give instructions to anyone or brokerage house that needs help in this delivery process.
Most of the question I’ve been getting is where should people store their gold. Should it go to a warehouse in Zurich, Switzerland, Austria? What’s the safest? In earnest, I think the safest place is in your own possession. We’re going back to old times again where you privately kept your wealth with you.
Something else came up in regards to mini gold deliveries. If one wanted to take delivery of a mini bar, they now have to buy 3 instead of one. It seems that this is really a dispute over language than anything else, but the point is being missed. The exchanges were created so that a farmer from Minnesota who has a crop of wheat could take his crop into Chicago and sell it to someone who needed it from another state and to do true hedging. The contracts have a specified size and a buy and sell would commence. In practice you are allowed to trade a mini in the gold market, but the minimum for delivery in gold is still 100 ounces in size. Because of this, I see no point in trading mini gold because of the strings attached.
The delivery process is really not that difficult, it just can be time consuming. Either way, I’m at your service and understand the procedures well enough to offer my services.
JB Slear
Fort Wealth Trading Co. LLC
www.FortWealth.com
866-443-0868 ext 104
