Craig Hemke | Wednesday, March 29th

It seems that every few months, the charade of "physical delivery" on Comex becomes so outrageous that we feel compelled to write about it. Well here we are again today.

Before we get to the CME-reported numbers, let's start with the usual background...

What you need to know is that most of this is just a massive scam. Rarely is any actual, physical metal exchanged. Instead, the bi-monthly Comex delivery process is primarily a shuffle of paper warehouse receipts and warrants. Additionally, the parties to these exchanges of paper are usuallly The Banks themselves, acting in one seemingly endless circle jerk where one month Scotia "delivers" to HSBC and, the next month, HSBC turns around and "delivers" metals back to Scotia. It's been this way for years and it continues to this day.

And the volume of "deliveries" rarely changes, as well. For March, the initial amount of contracts still open and "standing" when the contract went off the board on February 27 was 7,299. Even at the conclusion of First Notice Day on the 28th, there were still 4,271 contracts still open. The delivery month is now complete and a total of 3,855 "deliveries" have been made. How does this compare to previous delivery months? It's about average. See below:

http://silverseek.com/article/march-...liveries-16443