Comstock Inc (LODE)

[TMLonggun]

I'd say ~$13/share is a long way off, but if gold made a new all time high then LODE could potentially as well.

If the COMEX defaults it will be explosive and all boats should rise.

Could the COMEX disappear or become irrelevant? Maybe. Will it default? No! The COMEX will never default, this is practically impossible. This is one of the oldest gold bug yarns and is obviously false (read the COMEX fine print, which nobody does). However, with some large amount of money, perhaps a billion dollars, you could in theory stand for delivery (silver is easiest) and prove the COMEX is toothless and has very little metal. Except this fact is already proven and is a secret kept in plain sight. This would still not cause the exchange to default! Yet demonstrating their impotence so publicly and sensationally would make for a much better headline and hopefully lead to more transparent cash (physical) pricing (I wouldn't hold my breath). Even with a billion of futures and the COMEX holding only 100M of metal there is still a very good chance that it will be a headline only read by goldbugs and have no impact on anything, and be seen by almost everyone as a non-event. This is because there is no mechanism to bust the exchange, because it was designed and contracted this way from the very beginning to make a default impossible. Written in plain English: you are not entitled to metal, only a settlement equivalent in fiat.

If the COMEX disappears it will affect a lot of business, mines, bullion dealers etc - especially those attempting to legitimately hedge their businesses against volatile metals prices.


If you are not familiar with the final days of the Hunt Brothers it is a very interesting saga and along the same lines of this discussion. They were going to win the silver game and take silver to the stratosphere and then the government and exchanges conspired to crush them, and would only issue sell orders. So if you are only allowed to sell what would happen to the price? What free and fair markets!

Do you really think the US government would allow someone to reprice gold/silver, crush the dollar, and succeed where the Hunts failed?

We live in very interesting times, but yet I can't help but feel I am watching re-runs.