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Delivery of a COMEX silver contract: My experience

Discussion in 'Purchasing Precious Metals' started by bobster, May 23, 2010.



  1. bobster

    bobster New Member

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    I took delivery of a COMEX silver contract recently, and encourage others to do the same. I wanted to relay me experience to the forum.

    I emailed by broker at Lind-Waldock a couple of days before first-notice day. I was required to have sufficient money in my account on first notice day to take delivery. A couple of days after first-notice day, I received an email instructing me to contact a person at the Scotia Mocatta depository. I contacted the warehouse and they faxed me a computer record reflecting a warehouse receipt which identified the serial numbers and weights of the 5 bars. The warehouse person also gave me phone numbers for couriers, including Brinks, Dunbar, and IBI.

    I was required to pay a $100 fee to Lind-Waldock, and $136 to Scotia Mocatta for the privilege of taking delivery.

    I contacted the couriers. Brinks refused to provide me a quote, stating that they do not deal with individuals. IBI stated that they would not be cost-competitive for a single contract, and did not provide a quote. Dunbar was easy to work with, and quoted just under $1000. I also contacted another courier, who quoted $1650 and a futures dealer who helps folks take delivery, fortwealth.com, who quoted $2000. I chose Dunbar (212.382.1177 x102).

    Scotia Mocatta required that I send them a notarized letter releasing my product to Dunbar. I paid Dunbar using a credit card. The New York Dunbar representative obtained permission from the Dunbar office in a city nearby me to allow me to pick up my bars from their office. I was reluctant to draw attention to the delivery by meeting an armored carrier at my place of business, and the carriers will not deliver to residences, so this was a plus. The other day, I drove to the Dunbar office and a guard loaded five 1000-oz. bars into my trunk.

    By the way, there was no delay in receiving information about "my" bars, and the serial numbers of the bars I received matched the numbers originally documented in the information sent to me. The depository seemed to respond in a timely manner throughout the process.

    Now, if we can just get about 50,000 more people to take delivery of a contract or two, it will be interesting to determine when the warehouses run out of product and what happens to the shorts.

    - Bobster
     
  2. Ruprick

    Ruprick Seeker Seeker

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    $1300 costs / 5000 oz = $0.26 per ounce over your contract price.
     
  3. andial

    andial Sir Midas Member

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    bobster you done good. They probably hate you for bothering them.
     
  4. Weatherman

    Weatherman In GIM since 2006 Site Supporter Gold Chaser

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    Bobster, Great first post! How long was the time from when you began the delivery process until you received the bars?
     
  5. HistoryStudent

    HistoryStudent Midas Member Midas Member

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    You realize that you are talking about $100,000

    grand herein for 5000 ounces plus costs give or take right?
     
  6. Harvey

    Harvey Seeker Seeker

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  7. HistoryStudent

    HistoryStudent Midas Member Midas Member

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    :haha: Knowing the FRACTIONAL banking system as such - my humble guess - would be that many people have the same serial numbers on their
    special SAFELY KEPT silver stored for them.

    When the first 5% ask for delivery - a great surprise will await the other GREATER FOOLS that trusted the banksters who printed the
    US dollar down to 1% of its value against their MISSION statement to keep the value of the dollar.

    Those other greater fools will receive what the ETF holder gets in the end (pun intended) - about 1% of today's worth - thanks to the change they voted for.... :haha:

    They get short changed about 99%....
    :dance::dance:
     
  8. mqracing

    mqracing New Member

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    Boy... I'd love to see a discrete photo of your five thousand ouncers stacked high.... that's close to 350 pounds of silver.... yellzee.

    I'd have to reinforce the floorboards in my lil ole shack :=)
     
  9. bobster

    bobster New Member

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    It was a total of about three weeks. I could probably have cut that in half or more, but I got distracted and delayed communications a few times. I also could have used overnight mail for the release authorization.
     
  10. andial

    andial Sir Midas Member

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    bobster you have accumulated way more Silver in 3 weeks than I have been able to in 17 years. Good for you. :goodnight:
     
  11. HistoryStudent

    HistoryStudent Midas Member Midas Member

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    Dig faster...
     
    andial likes this.
  12. branshew

    branshew Seeker Seeker

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    To do list:

    1) Take Delivery
    2) Have assay completed.



    Let us know when you get to the bottom of your list.
     
  13. HistoryStudent

    HistoryStudent Midas Member Midas Member

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    That's why I like the 100s and even those have some drawbacks too.

    Although those 70 pound blocks of silver are really something to behold.

    10 of the 100s has the same feel for a sore back...

    Sadly, everything in life is full of risks.

    And the BIGGEST risk now is FIAT FRNs, IMVHO....:36_1_37:
     
  14. Strawboss

    Strawboss Intergalactic Silver Guru Gold Chaser

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    I would NOT take a picture of them and post - I have read in more than 1 place that the digital technology today embeds gps coordinates when you take pictures that people that know what they are doing can extract from a photo posted online.

    Just saying...
     
    Silver Buck likes this.

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