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.