tyb
failures to deliver have been going on for a long time. It's them having consequences of said failures that matters. The regulator the CFTC (Commodities Futures Trading Commission) has been an abject FAILURE in doing this and is in bed with the system) MUST enforce the rules of the COMEX in order for it to mean anything. In the past they have not. When they do it will matter…until then it won't.
They would not place position limits on the amount of contracts you could carry when they had the chance too.
This is an interdasting development at this point but it's not going to mean a thing until the CFTC is cleaned up
it means they do not have the physical amount to back up all the paper contracts-has been this way for a long time. In the past they would change the reporting structure to make it appear that they moved the required amount of physical around to satisfy the amount of paper contracts they carry. It's just smoke and mirrors and always has been.