Sunday, May 19, 2013

Hong Kong Mercantile Exchange (Commodities: Gold Silver) is surrendering all metal trades and will settle in cash. Defaulted! No Gold or Silver to be given!

This is Super Huge news in my opinion!

The Hong Kong Mercantile Exchange, which is the gold and silver commodities trading house in Hong Kong is immediately stopping/discontinuing and will be settling all gold and silver trades in cash that are in house at this time.  Besides that, they will determine what amount/price they will settle the trades/contracts at.

This is the exchange that began trading gold and silver in 2011 for the Pacific areas.  This is the one we had all hoped would break the gold and silver manipulation.  It seems the manipulation and physical amounts, broke them and they are not able to provide the physical.

On May 18, 2011, HKMEx formally began trading with a US Dollar gold futures contract. [9]In an interview with Reuters, Helmig said it plans to launch gold and silver futures contracts denominated in renminbi. He also said HKMEx will follow precious metals products with contracts in base metals, and then energy and agriculture.[10] On July 22, 2011, the exchange launched a second product, a US Dollar silver futures contract.[11]As of 5pm on February 13, 2012 trading on HKMEx’s gold and silver futures reached 1,003,210 contracts, representing total turnover of over US$50 billion (around HK$390 billion).[12] Trading on the exchange's US-dollar gold futures for the first time surpassed the 10,000 contract mark on June 4, 2012.

You have to wonder if people in  Asia were demanding the physical metals, compared to the paper as the Comex people are happy with.   It seems to me they ran out of physical and can no longer operate with physical gold and silver as a commodity.

They are using the excuse of commodity trading not providing enough money for them.  But lets face it.  The fact that gold and silver have been hit super hard the last couple of months and the fact that the Asian's have been buying all the physical they can get their hands on..... doesn't leave much to the imagination of what the truth is.

It seems we now have an official Default of an exchange for gold and silver!   When will the Comex put something out like this?

It will reapply later to trade gold and silver again with the Renminbi, but is ceasing all trading immediately.

There is no physical metals to be had from the exchange for anyone who put trades on it.  

Media Release from Exchange:

HKMEx Voluntarily Surrenders Authorisation To Provide Automated Trading Services

HONG KONG, 18 May, 2013  – The Hong Kong Mercantile Exchange (HKMEx) announces today it has decided to voluntarily surrender the authorisation to provide automated trading services (“ATS”) granted by the Securities and Futures Commission (“the SFC”).
With immediate effect, no new orders may be placed and all open positions will be financially settled at the settlement price determined by HKMEx and its designated clearinghouse.
The voluntary surrender decision was made to enable the Exchange to re-align its strategy with the new industry environment since its trading revenues have not been sufficient to support operating expenses and, as a result, its inability to meet the required regulatory financial conditions.
While trading on the Exchange will discontinue, HKMEx as an organisation will continue to operate with its existing staff, and will focus on developing new products including renminbi-denominated precious and base metals contracts that will better meet customer needs. It also intends to re-apply at an appropriate time for an ATS authorization to launch these products with stronger and more effective market maker programs.
“The favourable conditions under which HKMEx was founded have not changed. Global commodity demand continues to shift towards Asia as the region undergoes sustained growth, presenting great opportunities that we will continue to exploit,” said Barry Cheung, Chairman of HKMEx. “Our priorities now are to protect members’ interests by ensuring effective closing of open positions while strengthening our shareholding base and developing new products that play to our distinctive strengths.”
In closing out the open positions, the Exchange has developed a plan in consultation with the SFC to ensure the process is orderly and that investors are well informed of the matter. The Exchange will disseminate settlement prices to its members the morning of next Monday, 20 May 2013. Investors may contact the Exchange’s hotline at +852 3900 9898 for any assistance or enquiry.


  1. PMs still dropping to record lows. Explain please.

    1. Record lows??? Please explain. Since the prices aren't even close to the record lows.

    2. Sherrie is right the current prices are far from the lows.

      But to answer to why they are dropping... That is a reflection of the price of paper silver which is being manipulated. This morning's dip was due to 1 unidentified trader selling paper contracts. Yet despite the massive paper sell-offs lately the demand for physical metals is raging in Asia and the US. But despite this record demand the price keeps dropping?? It is my belief we are witnessing the seperation between the ETF's (paper PM's) and physical supply of metals. At some point what happened to HKMEX will happened to the COMEX. When that happens and they announce no contracts can be settled for physical metal all bets are off as to where the price will go.

    3. The reason that the price of the P.M.'s is dropping is because the traders know that there is not enough physical gold and silver to fulfill all of the contracts for these precious metals (P.M.'s). China has been buying physical gold and silver by the ton. They are settling their contract gold and silver for cash so they have lowered the spot price of these precious metals. Knowing this most of the people that are holding these contracts are dropping then for whatever they can get. Give it another 6 months and the paper gold and silver will not be worth the paper it is written on.

  2. Great article. I expect to see people moving back or to the US market soon. Thanks.

  3. Last gasp effort on the paper price. I to am getting very sick of the ..almost collapse..
    but everything is still moving dater and faster in one direction and that direction is up.

  4. The entire reason for the "paper pushdown" is for the bankers and "elite" to purchase at lower prices. Jim Willie was on U.S.A. Watchdog this morning and explained that China'a holdings are above 8,000 tons, Russia is holding between 10,000 and 20,000 tons. The B.R.I.C.K. nations are now in the final stages of creating their own reserve currency basket. Tune into U.S.A. Watchdog and listen for all the details. One last point, if you own gold hold on and if you don't buy some NOW !

  5. Put in simple language The ROC is manipulating the price of physical silver and gold. The reason for this is that they have been buying up physical gold and silver by the ton. That way they can control the market price. They know that there is not enough physical gold or silver to represent all of the paper gold and silver. They have lowered the price of gold and silver so that they can settle all of their paper gold contracts at a lower price. If you have any sence you will buy all physical gold and silver that you can pay for. Within six months the price will go higher for precious metals than it ever has. If you have the hard stuff hang on to it. If you have the paper stuff get rid of it as fast as you can. The price on the paper gold and silver is going to drop so low that it will not be worth the same price as toilet paper.

  6. The Banksters cannot repeal the "Law of Supply and Demand"-the fools will find out soon what happens when that law kicks in.

  7. I don't understand. If prices are falling and they are no where near the expected (or record) low, how does this benefit anyone, including those who are selling paper metals in an attempt to drive the prices down?

  8. It seems that people of Asia are no more interested in investing in gold and silver. It is a known fact that gold and silver price are now rising. So there must be no more hesitation in purchasing of these precious metals.