View Full Version : Silver Physical Delivery Delays- Open Letter to CTFC

17th October 2008, 18:58
An investor wants to make monthly multi-million ounce purchases from the COMEX! The letter below was published by David Morgan on Oct 17. Take a read:

To Mr. Bart Chilton, Commissioner, CFTC and Ms. Janet Troyke, Director Market Regulation, CME Group :

In full and proper disclosure, I would like to ask the CME/COMEX and CFTC the following question regarding monthly delivery of silver.

I manage a physical gold and silver bullion fund. In order to stay within the “Model State Commodity Code” of many states, an exempt transaction by the purchaser (in this case the Dollars and Sense Growth Fund) must abide by the following code:

A commodity contract for the purchase of one or more precious metals which requires, and under which the purchaser receives, within seven to twenty-eight calendar days (varies depending on the state) from the payment in good funds of any portion of the purchase price, physical delivery of the quantity of the precious metals purchased by such payment, provided that, for purposes of this paragraph, physical delivery shall be deemed to have occurred if, within such 7 to 28 day period (varies depending on the state), such quantity of precious metals purchased by such payment is delivered whether in specifically segregated or fungible bulk form.

In this environment, it has become very difficult and expensive to buy physical silver from the physical dealer market. The difference in paper prices on the Comex and the physical dealer market have widened considerably. In addition, the overwhelming demand for silver has created delivery time delays of up to 4 months. These delivery delays create a direct violation with many Model State Commodity Codes.

My research has led me to the conclusion that it is much more effective and cost efficient to buy silver directly from the COMEX and take full delivery. The spot prices are much cheaper than the dealer market and the CFTC along with the CME/Comex have stated in reports there are ample supplies of silver available for delivery with no market inhibitions. For an individual or institution wanting to accumulate a position, these are ideal market conditions.

The question I have is this:

I would like to buy and take physical delivery of 1 to 5 million ounces of silver a month on a consistent basis. I am not interested in holding warehouse receipts but taking actual physical delivery from your approved depositories/warehouses. Would there be any obstacles or resistence from either the CME Group/COMEX or the CFTC when I begin to implement or during the ongoing process of this strategy?

I look forward to your reply.

Bob Coleman

By David Morgan,

17th October 2008, 19:14

Go Bob Coleman!

I will LOVE to hear the responses he gets as a result of his letter!

And I hope that five or ten other investment managers do the same thing.

And I hope the PPT and Jon Nadless will be watching, and shaking in their boots.

:cool: :cool: :cool: :cool:

17th October 2008, 19:54
The little guys prope for weakness and a couple big shots are going to roll the Comex. I love it! Makes my weekend ,beside the bag of pre 65 I just picked up. :)

Tribal Warrior
17th October 2008, 21:10
I've been waiting to hear some good news like this. Get a few more Multi-Million ounce investors and they'll default the crappy COMEX.

Good Job Bob, a true Amercan!!

17th October 2008, 21:14
They will just change the rules on the fly to head off a default, guaranteed.

17th October 2008, 22:55
This Could Be Some Wonderful News.......what Are The Odds That Comex Has The Silver And Will Let Go Of It......this Might Be The One Thin Dime That Broke The Shorts Back.

strongman shelford
17th October 2008, 23:28
who is that guy?

A Chinese or arab agent? who is him?

17th October 2008, 23:31
IT'S NOT GLENN BECK,----------- had to say it, ---so sorry

18th October 2008, 03:23
who is that guy?

A Chinese or arab agent? who is him?

Who cares who he is? Let's just cheer him on! 1-5 million ounces ounces of silver a month on a consistant basis? That's 1000-5000 Big Bricks a month.

Jeeze, the guy is a dream come true!

18th October 2008, 11:01
Bob is a well respected member in my field. Check out his profile from these 2 links.

18th October 2008, 11:03
I will also call him and David Morgan to find out how I may get involved in investing my clients into his fund to purchase more from the COMEX. I will post later on this info.

18th October 2008, 16:28
I own a Registered Investment Advisory Company, Profits Plus Capital Management, LLC. I am a strong believer in gold and silver. Please contact if you have any questions."""""



19th October 2008, 20:01
If I hear about a response to the letter, I will post it A.S.A.P.