From "Midas" Commentary
by Bill Murphy
LeMetropoleCafe.com
Friday, December 12, 2008
I received a call this morning from a commodities broker who toldme that the Comex is alerting various futures firms about the potential of asqueeze on the December contract and is advising the $840 December shorts toexit their positions. That is the remaining open position.
There have been 12,636 notices of delivery. The shorts have untilDecember 31 to make delivery. Normally they deliver early to take in cash andearn the interest. They must be delaying. As I understand the situation, thatrepresents about 40 percent of the gold available at the Comex, and of coursesomeone could enter the scene late, buy February gold, and then spread intoDecember, which would stun the shorts.
My broker friend said his back office said this sort of alert ishighly unusual and that the concern is real, not only for gold, but for othercommodities too, like copper and palladium, as there is a good deal of talk oftaking deliveries there too. But gold is the one for which the advice to coverwent out.
This is an extremely productive development and could spur theprice of gold up quickly as word spreads. As we all know, buying Comex gold andsilver (the cheapest way to buy precious metals) makes all the sense in theworld in this financial environment.
