Quixote2
21st April 2010, 10:47 AM
http://agoracom.com/ir/ECU/forums/discussion/topics/415464-want-to-buy-a-future-contract-and-take-delivery/messages/1367307#message
Want to buy a future contract and take delivery?
Here is one person's ongoing saga, just remember there is no shortage:
I just want to bring you up to date on where we stand with delivery. Your bar was delivered at the HSBC depository in N.Y. (where 90% of metals deliveries are made). The way that we have always been able to have metals sent out to the customer was once you received the delivery notice and the WDR was converted to your name we with the client called HSBC and gave them instructions on where to send the bar. The customer would wire in funds to HSBC to cover the processing and shipping charges through the USPS and the bar would be sent (assuming it was less than 75lbs.).
When I called HSBC on Monday to make sure they had the conversions and to make them aware that you intended to take physical possession they informed me that at the end of last year they changed their policies regarding sending the metals (please read to the end as there is good news). Basically they started following the same procedures that the full sized Comex contract follows that we had spoken about prior to you opening your account (bonded "armored" courier or customer picked up at the depository), and that they no longer send the metals by postal service. They explained that this was part of their broader effort to get out of the "retail" business and focus solely on the institutional side of the business. December was the last delivery cycle for silver so the March deliveries we received last week were our first attempts for customers like yourself to take physical possession since the change at HSBC. Not only was this a surprise to me and Myfuturesonline.com it also came as a surprise to our clearing firms (such as ADMIS) as HSBC did not notify anyone of this change. I was particularly surprised when I talked to my friend who is a V.P. at the exchange when she told me that she wasn’t even aware of this change.
I’ve spent the better part of the last day and a half trying to find out how we could make the arrangements to get the bar to you. The different options include:
1. You fly to N.Y. and pick the bar up at HSBC personally
2. We arrange to have your bar sent through bonded courier. The quotes I received were in the ball park of $5,900.00 for your single bar.
3. I spoke to a friend of mine that is a precious metals dealer who may exchange a bar for your warehouse receipt for a nominal fee. He will let me know definitively on Friday if he would be willing to do this.
Finally, the good news. I phoned some of my contacts at the other depositories and found that one of them, Brinks (who is one of the 5 exchanged approved depositories) is very willing to work with us to send the silver bar similarly to the way that HSBC use to in the past. The logistics are that instead of shipping through the USPS, Brinks uses UPS. And we would have to transfer the silver bar from the HSBC depository to the Brinks depository before sending the bar out. They assure me that this is a very easy process and should not cause much of a delay. They are sending me the details of how to facilitate this and we should know how to proceed by tomorrow. I apologize for this hiccup, but am confident that we can still have the silver to you before the end of the month. Please let me know if you have any questions or concerns.
Best Regards,
Robert
Then later on, I received more information:
Hi G,
I know that you were hoping to get the silver bar sooner than later. It appears that we have two choices for how to send your bar, either ground shipment or 2 day air. The cost for the 2 day air would be a total of about $480.00 and they do not deliver to residences with this option. I am getting the rates for the ground and will let you know what those cost would be, but wanted to make you aware of both options.
Regards,
Robert
Finally, over the phone I was quoted $350 for delivery by ground. I am going to keep looking into other ways to get the metal. This nonsense hasn't discouraged me, to the contrary, it has invigorated me (and caused be to purchase more futures contracts). I had thought of getting a Uhaul and picking it up, but the metal would be hanging out in the motel parking lot at night, which isn't ideal. I have also looked into taking a train with the metal from New York, but the passenger trains don't really allow for freight, just 2 carry ons and 3 checked bags (of no more then 50lbs each).
If you have any suggestions you might have on a more economical way of taking delivery would be appreciated.
Cheers,
G
Well, I hope I can get out of my paper metals before things explode. Here is the next chapter. Long-story-short, a 3 week delay because HSBC says they are doing an audit and need to get the metal back from Brinks. All this for 1 mini-contract. What a joke.
Cheers,
G
I finally have those rates and what we need to do next. To ground ship through the USPS the cost would be $382.00 to your address in Coupeville. To facilitate the shipment you will need to provide two signed letters, one to HSBC notifying them to release the bar to Brinks, and one to Brinks instructing them to ship your bar to your address. I have attached two sample letters that you can use. Once you have signed them you can scan and email them. If you would like me to be a liaison for you with the depositories you can email both letters to me and I will make sure that the exchanges receive them and aid in the transfer. If you would like to deal directly with the depositories let me know and I will send you the contacts of the individuals you need to deal with.
The two factors that will determine how long it will take for you to receive the shipment: 1. HSBC has recently done an audit of their vaults, during the audit they emptied several of their vaults and used Brinks vaults to store the metal. Your bar was included in this audit. Brinks has begun sending the metals back to HSBC this week. The process will take up to 3 weeks and should be done before the end of the month. As soon as your bar is back at HSBC they will release it to Brinks, so if your bar came back this week it will be shipped next week. If it’s in the last shipment it will not be shipped until the end of the month. 2. The USPS. Our experience has been about 10-14 days to Washington State .
Want to buy a future contract and take delivery?
Here is one person's ongoing saga, just remember there is no shortage:
I just want to bring you up to date on where we stand with delivery. Your bar was delivered at the HSBC depository in N.Y. (where 90% of metals deliveries are made). The way that we have always been able to have metals sent out to the customer was once you received the delivery notice and the WDR was converted to your name we with the client called HSBC and gave them instructions on where to send the bar. The customer would wire in funds to HSBC to cover the processing and shipping charges through the USPS and the bar would be sent (assuming it was less than 75lbs.).
When I called HSBC on Monday to make sure they had the conversions and to make them aware that you intended to take physical possession they informed me that at the end of last year they changed their policies regarding sending the metals (please read to the end as there is good news). Basically they started following the same procedures that the full sized Comex contract follows that we had spoken about prior to you opening your account (bonded "armored" courier or customer picked up at the depository), and that they no longer send the metals by postal service. They explained that this was part of their broader effort to get out of the "retail" business and focus solely on the institutional side of the business. December was the last delivery cycle for silver so the March deliveries we received last week were our first attempts for customers like yourself to take physical possession since the change at HSBC. Not only was this a surprise to me and Myfuturesonline.com it also came as a surprise to our clearing firms (such as ADMIS) as HSBC did not notify anyone of this change. I was particularly surprised when I talked to my friend who is a V.P. at the exchange when she told me that she wasn’t even aware of this change.
I’ve spent the better part of the last day and a half trying to find out how we could make the arrangements to get the bar to you. The different options include:
1. You fly to N.Y. and pick the bar up at HSBC personally
2. We arrange to have your bar sent through bonded courier. The quotes I received were in the ball park of $5,900.00 for your single bar.
3. I spoke to a friend of mine that is a precious metals dealer who may exchange a bar for your warehouse receipt for a nominal fee. He will let me know definitively on Friday if he would be willing to do this.
Finally, the good news. I phoned some of my contacts at the other depositories and found that one of them, Brinks (who is one of the 5 exchanged approved depositories) is very willing to work with us to send the silver bar similarly to the way that HSBC use to in the past. The logistics are that instead of shipping through the USPS, Brinks uses UPS. And we would have to transfer the silver bar from the HSBC depository to the Brinks depository before sending the bar out. They assure me that this is a very easy process and should not cause much of a delay. They are sending me the details of how to facilitate this and we should know how to proceed by tomorrow. I apologize for this hiccup, but am confident that we can still have the silver to you before the end of the month. Please let me know if you have any questions or concerns.
Best Regards,
Robert
Then later on, I received more information:
Hi G,
I know that you were hoping to get the silver bar sooner than later. It appears that we have two choices for how to send your bar, either ground shipment or 2 day air. The cost for the 2 day air would be a total of about $480.00 and they do not deliver to residences with this option. I am getting the rates for the ground and will let you know what those cost would be, but wanted to make you aware of both options.
Regards,
Robert
Finally, over the phone I was quoted $350 for delivery by ground. I am going to keep looking into other ways to get the metal. This nonsense hasn't discouraged me, to the contrary, it has invigorated me (and caused be to purchase more futures contracts). I had thought of getting a Uhaul and picking it up, but the metal would be hanging out in the motel parking lot at night, which isn't ideal. I have also looked into taking a train with the metal from New York, but the passenger trains don't really allow for freight, just 2 carry ons and 3 checked bags (of no more then 50lbs each).
If you have any suggestions you might have on a more economical way of taking delivery would be appreciated.
Cheers,
G
Well, I hope I can get out of my paper metals before things explode. Here is the next chapter. Long-story-short, a 3 week delay because HSBC says they are doing an audit and need to get the metal back from Brinks. All this for 1 mini-contract. What a joke.
Cheers,
G
I finally have those rates and what we need to do next. To ground ship through the USPS the cost would be $382.00 to your address in Coupeville. To facilitate the shipment you will need to provide two signed letters, one to HSBC notifying them to release the bar to Brinks, and one to Brinks instructing them to ship your bar to your address. I have attached two sample letters that you can use. Once you have signed them you can scan and email them. If you would like me to be a liaison for you with the depositories you can email both letters to me and I will make sure that the exchanges receive them and aid in the transfer. If you would like to deal directly with the depositories let me know and I will send you the contacts of the individuals you need to deal with.
The two factors that will determine how long it will take for you to receive the shipment: 1. HSBC has recently done an audit of their vaults, during the audit they emptied several of their vaults and used Brinks vaults to store the metal. Your bar was included in this audit. Brinks has begun sending the metals back to HSBC this week. The process will take up to 3 weeks and should be done before the end of the month. As soon as your bar is back at HSBC they will release it to Brinks, so if your bar came back this week it will be shipped next week. If it’s in the last shipment it will not be shipped until the end of the month. 2. The USPS. Our experience has been about 10-14 days to Washington State .