Friday, May 31, 2013

A COMEX Challenge

I have an idea that I will probably act upon: buying a 100 oz gold bar via COMEX!  At this point, I am starting from "zero" so this will take some thought and effort to pull off.

I will only do this if I get positive feedback, and a lot of it (that means you)!!!  Those of you who support the whole idea of demanding delivery of 100 oz of gold vs. cash settlement, please comment here or email me!  This will cost me money, so unless I get a lot of "moral support" I will not bother.  I do not ask anyone for any money, but without a lot of encouragement, I will assume there is little or no interest out there among you for me to do this.


Broadly, here is my rough outline as of the moment, this of course is subject to change as I learn more:

1)  For me to find a good commodity broker who will guarantee that I will get my bar in the month I have it for delivery, guarantee in writing, with not only the broker but his boss, the branch manager, all the way up as far as I can get something signed.  No cash accepted.  I want the gold.  I will put up the 100% "margin" when it becomes necessary (discussion on that just below).

2)  I ask you, kind readers, for your recommendations as to a good commodity broker who will arrange for delivery of my gold.  I can pay him "extra", above and beyond his normal commission, so if any of you have a friend who is one, well, do him a favor...

3)  As I educate myself on this process, I will soon pick a month for delivery.  It will NOT be June as I need time to study this matter in detail.

4)  I ask/beg anyone who has accepted physical delivery of COMEX gold to drop me a line with any observations that would ease my task.

5)  I also invite anyone with the means and interest to join me in a parallel (but separate and independent) operation.  As long as it is not to quickly, I can adjust my delivery dates to match yours.

6)  I will (for sure) have the capability to assay any gold I receive.

7)  If I go ahead with this, there will be a complete report or set of reports on this process here at my blog, as I suspect it would be of interest to my readers and to the "retail gold community" as a whole.  Yes, there will be a picture or two...

8)  I am going to guess that I may need a lawyer, someone schooled in commodity law and in particular who would know COMEX procedures and regulations.  With some effort, I could find such a lawyer, but a recommendation would be much better.


If I can get the proper paperwork in order, I would expect to receive the gold.

If the paperwork is in order (100% in order), and I do not receive the gold but a check instead, then that will mean war!

This could be lengthy and perhaps expensive.  I want to have everything more-or-less ready to go before I contract with a broker.  This means work for me.

Update -- 1 June 2013

Alert Zero Hedge member "TPTB_r_TBTF" provided me a link to the CME's (COMEX) "rulebook", it is apparently already in their rules that if they so decide that they can supply money (FRNs) instead of any commodity.

So, that ends this escapade.  The COMEX need have nothing to fear from me now.


  1. Sounds like a good plan, we at Single Dude Travel support this project, especially as it gets you 100 oz of shiny stuff.

  2. I support the idea of trading fiat for a hundred oz of gold. I would NOT trade physical gold. If the "music stops" while this is in progress, you're left holding what???

  3. I support your plan, DoChen.

    I cannot offer anything more substantial than encouragement but I hope to be following your successful progress step by step. I also counsel extreme caution as you are taking on the big ugly boys: research everything, down to the excruciatingly trivial.

    Not only document anything you receive - scan the paperwork - copy your folder to an external medium, in different instances - but it would also be good to have a project plan in place, fully checklisted and remindered, and able to be tweaked as circumstances change and new challenges arise.

    Apologies for any of the above that you already have on the blocks: as a businessman I am sure you are already mentally fleshing out your scheme; but the territory you're proposing to enter is full of dragons.

    Take Care, Good Luck, and Fingers Crossed.
    Oh, and Eyes in the Back of your Head.
    Perú Norte

  4. Do,
    Well firstly I want you to know I am sure you have a reason for wanting a hundred ounce bar,I personally would not want that size.It would be extremely hard to hide,and move if TSHTF,and/or you wanted to sell it compared to smaller increments.
    I am guessing you are doing this as a way to see if they actually will get you a physical delivery more than anything.
    Best of luck in whatever you decide to do.

  5. How exciting, DoChen! It sounds like you have gotten great advice above and I know you already have a solid knowledge base.

    I look forward to living vicariously through your reports.

    Best wishes,


  6. Not recommended. Ordinary consumers need easy access to small pieces of honest gold, silver, platinum, nickel and copper. If you trade in your small pieces that reduces the demand for them and increases the demand for the too large to be useful in trade bars. We need that large bar you are considering purchasing broken down and minted into something smaller. Let someone like the Royal Canadian mint buy that bar and sell the pieces to us for the 5% premium they earn with their valued added manufacturing. I would like to see them produce a series of 5 gram coins in all the 5 metals above packaged in small pouches (like the 1/10 ounce gold Maple Leafs) that everyone can use as global currency instead of paper fiat garbage. Keep up your ZeroHedge postings as I really enjoy reading them. Thanks.

  7. Number 6: What do you want?
    Number 2: We want information.
    Number 6: Whose side are you on?
    Number 2: That would be telling.


    I would have enjoyed reading your expose' had you followed through, but I think it likely that at the end, you would likely only get back paper and a cold shoulder - not the information/result that you were seeking.


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