COMEX Suspends Registration of Elemetal Gold & Silver In Wake of Federal Probe

The COMEX has suspended registration of the Elemetal Refining, LLC gold and silver brands (sister company of Elemetal Direct and Provident Metals, one of the largest Precious Metals Wholesalers and Retailers in the US respectively) in the wake of the Federal Probe into alleged illegal gold smuggling:

*Update:

Unsubstantiated reports are now indicating that Scotia Bank has recalled its entire line of credit extended to Elemetal, and that Elemetal is currently in the process of shutting down operations entirely at its Jackson, Ohio facility (formerly known as Ohio Precious Metals) with all product being returned to Scotia Bank at the conclusion. 

From the CME

Special Executive Report
DATE: March 31, 2017
SER#: 7886
SUBJECT: Suspension of Warranting of Elemetal Refining, LLC (ELEM) Gold and Silver Brands

Effective March 31, 2017, 6:00 p.m. Central Time (CT), Commodity Exchange, Inc. (“COMEX” or “Exchange”) will suspend registration (warranting) of the Elemetal Refining, LLC (ELEM) gold and silver brands (Brand Mark “ELEMETAL REFINING AND JACKSON IN A CIRCLE WITH A STYLIZED E AND M IN AN INNER CIRCLE”) for delivery against the Exchange’s Gold and Silver futures contracts.

As such, any unwarranted ELEM gold (100-troy ounce bars and kilo bars) and silver at Exchange-approved depositories will no longer be deemed, or reported as, eligible for registration. Any currently registered (warranted) ELEM gold and silver through 6 p.m. CT on March 31, 2017 will continue to be deliverable against the Exchange futures contracts until such warrant is cancelled.

Once the warrant is cancelled, the material cannot be re-warranted until further notice. The Exchange notes that pursuant to an active review under their Incident Management Process, the London Bullion Market Association has moved ELEM to the LBMA Gold and Silver Former Lists, effective March 31, 2017.

The Commodity Futures Trading Commission (“CFTC”) will be notified of the aforementioned during the week of April 3, 2017 via the weekly notification procedures set out in Part 40 of the CFTC’s Regulations.

Please refer questions on this subject to: Market Surveillance Registrar’s Office:

Terry Gehring [email protected] +1 312 435 3644

Products: Nadine Brown [email protected] +1 212 299 2223

Research Joann Arena [email protected] +1 212 299 2356

http://www.cmegroup.com/notices/ser/2017/03/SER-7886.pdf

 

We suspect we may be about to see another MF Global style event in which the big boy bankers (in this case Scotia Bank rather than JPMorgan) front run everyone else in a mad scramble to grab assets…

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