Ending The Comex Gold Charade

Posted at 10:29 PM (CST) by & filed under Trader Dan Norcini.

Jim Sinclair’s Commentary

Here are words of absolute wisdom from Trader Dan.

Dear CIGAs,

The only way to end the charade that takes place at the Comex in the gold pit is to do what I have been saying now endlessly for years – STAND FOR DELIVERY OF THE METAL.

Until the longs get it into their heads to take the actual metal out of the warehouses and force the bullion banks to come up with the gold that they are selling in unlimited quantities, the farce will continue.

It remains a source of continued astonishment to me that the longs, which have it completely in their power to end the price suppression scheme, refuse to do the ONE THING that can end it all almost overnight.

That is the Achilles’ heel of the bullion banks and until exploited the Comex bears will sell with impunity.

Any entity attempting to do in wheat or cattle for example, what the bullion banks are doing in gold, would end up having their heads handed to them on a platter. Egypt would step in and buy all the wheat they wanted to sell or a large packer would end up getting a huge discount on cattle and looking forward to hearing all those Moo-moos bellowing in the rail cars that would be coming their way knowing that it is the sound of huge profits based on someone else’s brazen stupidity.

The large traders in the gold pit (hedge funds) are run by mindless dolts who could not trade their way out of a wet paper bag if their life depended upon it. What else explains their inability to break the hold of the bullion banks in the gold market except a failure to think apart from their computerized black boxes.

DJ UPDATE: Liffe July Cocoa Delivery Second-Highest On Record

LONDON (Dow Jones)–Liffe cocoa has seen its second-largest delivery on record, raising concerns of a squeeze on European cocoa supplies, NYSE Euronext Liffe (NYX) data showed Friday.

A total of 240,100 metric tons of cocoa were delivered against the July contract, the highest figure for 14 years and one of only six on record over 200,000 tons, according to data from the exchange.

The delivery raised concerns that Europe may face a shortage of cocoa after data show that a total of 246,810 tons of certified cocoa stocks are currently being held in Liffe warehouses in Europe.

BNP Paribas Commodities Futures Ltd. was the biggest buyer of cocoa delivered against the July contract, accounting for 43% of cocoa bought, or 102,450 tons.

The biggest seller was Newedge Group SA, which accounted for 78% of the sales, or 188,020 tons of cocoa.

Concern over the level of cocoa stocks in Europe has been growing since the July contract expired Thursday with 24,866 options open, equivalent to 248,660 tons of cocoa.

A further 16,070 tons of expired stock waiting to be regraded are also held in Liffe’s warehouse, as well as a further 17,372 tons of non-tenderable or Binfested stock, but these aren’t deliverable against the current contract.

Cocoa futures on NYSE Liffe are traded as instore contracts, meaning that the warrants for the stocks will be exchanged, but no physical cocoa will be delivered at this point.

-By Caroline Henshaw, Dow Jones Newswires