Huge News From LBMA & Comex! If You Own Gold & Silver, Watch Now - Rob Kientz

Описание: Huge News From LBMA & Comex! If You Own Gold & Silver, Watch Now - Rob Kientz

The belief that a COMEX force majeure event is imminent due to physical gold or silver shortages fundamentally misunderstands the exchange's core function. Because the COMEX operates primarily as a derivatives market rather than a physical clearinghouse, implementing a traditional force majeure clause for delivery failures is highly improbable. When a short seller cannot deliver the required physical metal, the exchange resolves the deficit through cash settlement.
Rob Kientz, founder of Gold Silver Pros and a veteran precious metals analyst, clarifies the mechanics behind these procedural safeguards.
In scenarios where physical metal is unavailable, insurance funds and cash assessments ensure the paper market continues to function. If a buyer demands physical silver at a specific strike price but the metal cannot be sourced, the exchange will pay out the cash difference based on current market values. By prioritizing fiat payouts over physical fulfillment, the system avoids a technical default, but it leaves investors seeking tangible assets completely exposed to paper substitutions.
The CME Group maintains a robust default management plan to maintain stability in the precious metals market in the event of a clearing member failure. Rather than allowing a market collapse, the exchange utilizes a process called "porting" to seamlessly transfer a defaulting member's open positions to stable, non-defaulting members. To cool frothy markets and build a financial safety net, the CME actively increases margin requirements to slow down rapid market runs.
If a massive default occurs, the exchange relies on a multi-layered "safeguards waterfall" outlined in Rule 826. This defense mechanism starts by liquidating the defaulting member's performance bonds. If those funds fall short, the CME taps into a dedicated $100 million base metals insurance fund. As a last resort, the exchange holds general assessment powers, allowing it to charge remaining trading members up to 275% of their guarantee fund to cover the deficit. This ensures the derivative market remains completely liquid.

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