A Chinese Revaluation of Gold and Silver is More Likely than a Comex Default
We noted that gold and silver trade on Comex in amounts that massively exceed what is physically available for delivery in short order and at the prices traded.
This does not deter the largest traders on Comex (long and short) all of whom are bullion banks specializing in this type of trading.
Think of Comex as like professional wresting where the participants know its fake but play along anyway because there is money to be made, manipulation to be accomplished; not gold and silver to be bought and sold and delivery taken.
Comex is a place where banks trade gold and silver they don't have to banks who buy gold and silver they don't want.
Comex is a paper market.
Since we last updated the Comex long and short positions, the largest eight traders decreased their gold and silver short positions and increased their long positions. Silver expert Ted Butler suspects that JPMorgan's short position has decreased and that the top silver short position is held by Canada's Scotiabank.