Taking delivery of silver…

Bill,
Yesterday's Midas contained a note from a member asking about how he could take delivery of silver through Comex. While I replied to him directly through the e-mail address he attached, it occurs to me that others may be interested in actually taking delivery.

Indeed David Bonds piece, "Let's all be the Hunts" suggests essentially doing just that.

Ted Butler has similarly suggested that if the commercial shorts are in as much trouble as he and others believe they are, taking delivery of silver by both industrial users and investors may be the quickest way to break there manipulative strangle hold of the PM markets.

Actually taking delivery of futures contracts is not as difficult as it sounds. One does not have to literally prepare to receive 5,000 ounces of silver. When you take 'delivery' you will receive a warehouse contract from the warehouse in which your five 1000 ounce bars are stored. (The actual weight of each bar will likely be somewhat less or more than 1000 ounces. You will pay for the 'delivery' to you based on the actual weights of the five bars). The warehouse receipt will have spaces on the back showing the names of the party who owned it before you and the signatures for each prior sale. The receipt will also have a serial number identifying each bar which is held in your name.

Each month that you own the bars you will receive a storage bill from the entity who is storing your silver. The current insurance premium is approximately $30 per month for one contract (five bars). While $360 dollars a year for storage may seem a little pricey, you are in fact holding an investment currently worth $65,000 (and recently worth $105,000). The entity holding your silver will be someone like HSBC, Scotia Mocatta, Brinks or one of the other Comex certified warehouses

I realize most cafe members may not have $65,000 of currently liquid assets. However, I would point out the difference between taking delivery as opposed to current investments in either a silver or a gold ETF. When you take delivery the silver is YOURS. In an ETF you don't own silver and you won't have access to silver when the price goes parabolic. You are also exposed to the multitude of fine print associated with the ETFs. Lastly, if Ted Butler is correct, putting your money in an ETF may be assisting the Cartel to keep the pressure on paper prices. (He asserts that the ETFs are engaged in naked shorting of their own shares).

The timing is right if you are interested in taking delivery. The last trading day for September silver is one week from today, August 27th. Delivery notices will begin the end of next week.

I do not know whether all futures brokers will allow clients to take delivery as it involves considerably more effort on their part than simply closing out a contract with a key stroke or two. However, I do know that Cannon Trading, based in California, will arrange for you to take delivery. I have worked with John Thorpe there for approximately five years. Their number is 1-800-454-9572. John is there from approximately 8:30 to 3:00 eastern time.

Just be sure to make clear that you are buying a future contract with the probable intent of standing for delivery and John will explain any questions you may have.

Where else can you buy 5,000 ounces of silver today for $13 an ounce?
Kevin