There is no reasons to doubt Morgan's read of COMEX contracts. I like his attitude, "read the contract." I would like to. Can anyone refer me to a copy of COMEX precious metals contracts?
This raises the big question of why anyone would use the COMEX to trade in precious metals if there are situations where you could be stuck with fiat currency instead of bullion. The current price of paper gold must be discounted for this risk. Amazingly one can still purchase physical from coin dealers for example for near paper gold prices. The discount can be this small only because every COMEX trader thinks they will be able to get out before there's a run on the vault.
Run you fools . . .