"The Fed can expand its Balance Sheet to kingdom come, but they cannot produce a single ounce of actual gold bullion in the process.
And that is why gold is such an emotional topic, so feared and derided in turn by those whose power is based on position and paper, because gold resists the forces of fiat money and the human will by its mere stubborn existence."
I had the opportunity last night to discuss things with a few old friends, from around the world in fact, and thanks to some helpful folks I was able to get a better idea of the mechanics of delivery at the Comex.
There was intraday commentary about the delivery process for gold at the Comex here.
I have to admit that this gold situation has me interested. There are some odd things happening, and I suppose digging into things one might not ordinarily care about is what must to done to understand them better.
There is nothing of science in this, no particular body of knowledge, but just some secular process and jargon, and some exchange rules that one has to learn in order to understand what is going on better. Since I would never even consider taking delivery from the Comex for anything, it a level of detail that I don't expect to come in handy anytime in the future.
But I can see now that the Comex is more of a paper exchange than I had previously suspected, and is ...