The way things look it will soon be impossible - or very difficult and expensive - to obtain physical gold and silver. The first major wave of physical buying has bought up all of the coins and small bar gold and silver available on the market, with the result that if you want any, you must pay a large premium. Right now, the second wave is underway, with astute investors forcing the Comex to deliver, which is having the effect of drawing down their warehouse stocks at a rapid rate. As the Comex is massively leveraged and trades hundreds of times more gold and silver than it has in its possession, it is clear that immediately their warehouse stocks are completely depleted, there will be a mad scramble to buy physical gold and silver in order to meet contract obligations. This will light the fuse under the Precious Metals sending them into the stratosphere - and gold and silver have plenty of other reasons to go up anyway, apart from failure of the Comex. On Jim Sinclair's jsmineset website the battle to overcome the stranglehold of the Comex is portrayed as a David and Goliath contest, with all the little guys banding together to overcome the big bad Comex. The reality however is that the little guy usually wins when he aligns himself with big money, and you can bet that if gold is going to go up alot, big money is going to get a sizeable slice of the pie, as usual. This is actually good news for goldbugs, for ahead of a major upside breakout big money will move in and grab a huge chunk of the pie and it will be this that steamrollers the Comex into oblivion. So watch for some powerful players demanding delivery going forward.

The full article is at:

http://www.gold-eagle.com/editorials...