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Bob Coleman: Part II: Is the Comex Actually Dead?

Tom welcomes a new guest Bob Coleman to the show. Bob started in the precious metals storage business in 2006 when he spotted an opportunity due to a lack of good safe storage solutions. Running this enterprise has given him a lot of insight into the operations of the precious metals space.

He discusses the physical metal market’s performance this year and how the pandemic created a lot of supply issues. There was a perfect storm, excessive money printing, high investor demand, and shortages due to logistic problems.

Some commercials were likely in a short squeeze, and they closed out their open interest positions. Some arbitrage players were able to take advantage of the price and premiums. Arbitrage from refiners has resulted in a lot of physical inventory being delivered onto the exchanges.

Registered metals typically indicate a large amount of physical moving into the Comex, and there are several possible reasons for these flows. He discusses the increase in institutional interest and higher demand from the ETF’s. He says, “It’s normal for ETF’s to have metal delivered and stored with these depositories.”

Bob gives us his views on paper silver manipulation and discusses why he doesn’t see confiscation by government as a possibility. He says, “We haven’t lived in a gold-backed world for some time. Today, taxation and inflation are the tools of government confiscation.”

Time Stamp References:
1:40 – Bob’s background in PM’s.
2:50 – Pandemic, logistics and panic.
5:30 – Comex Open Interest contracts.
6:30 – Delivery contracts.
7:30 – Comex, refiners, and arbitrage.
12:00 – Arbitrage and capturing premiums.
16:00 – Investors over paying for metals.
18:45 – Thoughts on Silver manipulation
22:10 – Physical confiscation in a fiat world.
24:15 – Educating yourself on metals.

Talking Points From This Episode

  • Comex logistics and operations.
  • Physical demand this year.
  • Institutional interest in gold.
  • Premiums and confiscation risk.

Guest Links:

Bob Coleman is a Registered Investment Advisor since 1992. In 2001, he founded Profits Plus Capital Management, LLC (RIA) and Dollars and Sense Growth Fund. Recognizing the necessity for physical metal storage, he founded Idaho Armored Vaults and Gold Silver Vault in 2008. They are a distinguished and respected leader in the precious metals industry specializing in storage, transportation, shipping logistics, and security.

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