The sudden rise in settlement of Comex gold and silver futures contracts through the formerly obscure off-exchange mechanism of "exchange for physicals" is likely just increasing the supply of imaginary metal, the TF Metals Report's Craig Hemke writes today for Sprott Money.
"Additionally, what does the increasing volume of EFPs say about the state of the physical market and the availability in size of physical gold on demand? If the Comex/LBMA is simply increasing the amount of leverage in the system, one must wonder how stretched and stressed the pricing scheme has become."
Hemke's analysis is headlined "Comex Exchanges for Physical" and it's posted at Sprott Money here:
https://www.sprottmoney.com/Blog/comex-exchan...l-craig-hemk...
