COMEX deliveries and registered gold (silver too)

rblong2us

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so its ok for JPM to drain the COMEX and leave it with so little phys that any further drawdown will have to be cash settled ?

Is this rats turning on each other or something pre planned ?
 

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On the ever shrinking GLD...
...
Jan 2.2014: we lost 3.6 tonnes of gold from the vaults at the GLD ...

Tonnes 794.62 - Ounces 25,547,852.70 - Value US$31,282 Billion
...
http://harveyorgan.blogspot.com/2014/01/jan-22014gold-and-silver-have-stellar.html

Weekly COMEX Gold Inventories: Slight Rise In Registered Gold But Claims Still Close To 80 Owners Per Ounce

Dec. 30, 2013 2:12 AM ET

Last week we saw COMEX registered gold inventories drop to their lowest level ever and the claims on each registered ounce rise to a stunning 92 owners-per-registered-ounce, ...

We know that 2013 has been a rough year for gold investors (ourselves included), but in terms of the situation at the COMEX warehouses, the historically low registered gold inventories, historically high claims on each registered ounce, and the large accumulation in the JP Morgan warehouses over the last few weeks are all things that seem bullish for gold.
...
http://seekingalpha.com/article/192...but-claims-still-close-to-80-owners-per-ounce
 

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After a brief pause in the decline of Comex Gold inventories, it looks like it has continued once again as there were several big withdrawals over the past few days. Not only was there a large removal of gold from the Comex today, the Registered (Dealer) inventories are now at a new record low.

Scotia Mocatta had 63,786 oz of gold withdrawn from its Registered category. This is quite significant as Scotia Mocatta’s total Registered gold inventories fell 41% in one day from 152,409 oz to 88,532 oz.

Furthermore, you will notice that the total Registered gold inventories are now down to record low 416,563 oz. The gold in the Eligible category is held by Customers at the Comex while the Registered inventories are the Dealer stocks.

A day prior to this update, there was 52,539 oz of gold withdrawn from JP Morgan’s Eligible category.

We can see just how much the Registered inventories have fallen since the take-down in the price of gold in April of 2013. The Comex held nearly 3 million oz of gold in its Registered category, but today it has fallen 86% to 416,563 oz.

The figures in this chart from 24hGold.com do not reflect the drop of 63,976 oz from the Comex today. As you can see, the bottom left hand corner of the chart only goes down to 431,530 oz.

According to the 1 month Registered gold inventory chart, there has been a huge draw-down since Dec. 12th. From a peak of 780,000 oz on Dec. 12th, the Registered inventories have declined 363,437 oz (46%).
...
More (incl. charts): http://srsroccoreport.com/big-comex...mex-gold-withdrawals-record-low-dealer-level/
 

Unobtanium

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Here an up to date chart with a little bit better resolution of recent activity:

 

rblong2us

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comment on Turds site from Maximillion on January 16, 2014 -


I've always been intrigued by the frequency of 0230hrs (0830hrs UK) smackdowns, and unsure as to the reasons why the Chinese did not simply step in and scoop up cheap contracts. Only recently has it dawned on me as to the potential reason, being that the Chinese may well be the perpetrators of the smack downs.

The initial problem I had reconciling this idea was that if the Chinese are buying up all the available gold, whilst they no doubt would have the incentive to cap or lower the price, it would be illogical to achieve this by increasing paper shorts which they then would be liable to deliver at contract expiration. Either way they can use the 100:1 trading vs delivery to maximize the amount of physical they can get their hands on, without collapsing the $'s value.

The clues to the solution IMO lies in last years wording change at the CME (re no guarantee all stated holdings exist), combined with the 100:1 paper vs physical trading, and the convenient get out clause whereby in the event of a non delivery the value may be settled in cash.

The Chinese, as we definitely know, have a substantial surplus of $ fiat, which can only decrease in value (ie purchasing power), as the supply increases or if the $ loses its status. The most logical thing they can do therefore, is to utilize some of this surplus fiat, to cap the prices of PM's, accumulate the physical, and either continue to roll forward their built up paper shorts, or pay off the contract holders on delivery date /default with the paper $ they hold.

So why aren't the western powers doing anything? Because they can't! If they've already lost the gold through leasing (as per the Germans trying to repatriate theirs), through their historic attempts to protect the $ status, and with some western banks still holding naked shorts, the wests hands are tied even though they would probably like/need a higher price! This is also likely to be the reason why JPM, as the top dog with the highest western status, is net long and building their own stack as quickly as supplies will allow.

I might be wrong but it's the most logical reason I can think of that ties it all together.
 

ancona

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At some point the Comex and GLD run out of physical stocks of metals, and that is the point where price discovery occurs.
 

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rblong2us

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Someones got em by the short n curlies .........

Give us our gold NOW or we will stand for delivery for all those paper contracts.

its got to be someone who is not so committed to the fiat system, so likely not ze Germans.

Russian, Middle East or Far East and not afraid of the odd air craft carrier ...........
 

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I saw that! Wow......I wonder if the two are connected? I would like to chase the dots between those two guys and see if there is a link.
http://www.zerohedge.com/news/2014-01-31/third-banker-former-fed-member-found-dead-inside-week

Russell Investments' Chief Economist (and former Fed economist) Mike Dueker was found dead at the side of a highway in Washington State. Police said the death appeared to be a suicide.
He may have jumped over a 4-foot (1.2-meter) fence before falling down a 40- to 50-foot embankment, Pierce County Detective Ed Troyer said yesterday
Hmm... As one poster on ZH wrote in the comments section

Who jumps down an "embankment" to commit suicide?
 

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It's been a while since I checked on the GLD inventory. Harvey reports:

April 21.2014: tonnage: 792.14.

Looks like they have a bit more than they had back in January when I last checked. Surprising, but worth keeping an eye on now with the negative GOFO.
 

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Harvey reports:

April 28.2014: tonnage 792.14

There has been no change at all over the last week (ie. no change was reported any day since the 21st). That seems a bit unusual.
 

rblong2us

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This comment from 'Ponzi' at the end of an article by Bron Sucheki of the Perth Mint trying to explain what COMEX and LMBA actually are -

http://research.perthmint.com.au/2015/08/07/a-very-silly-thing-to-think-about-comex/

what do we reckon ?




Zerohedge has become The Muppet Show and although it is fairly quick on the draw with news stories, it cannot be trusted to tell The Truth, The Whole Truth and Nothing But The Truth. Ponzi.

A case in point was an article last week claiming that 2.7 tons of Gold transferred from Brinks' Eligible inventory was evidence of desperate Chinese demand ("scrambling for the safety of gold"), solely because these appear to have been Kilo bars. ( http://www.zerohedge.com/news/... 10th para). Wasn't "China" supposed to have dumped twice this amount of Gold only last month? http://uk.businessinsider.com/... However, my understanding is that whilst COMEX, LBMA and Dubai accept 995-proof Kilo Bars http://www.lbma.org.uk/good-de... , the Shanghai Gold Exchange insists on 999.9 http://www.lbma.org.uk/assets/... , such that there was no possibility whatsoever that this could have represented a direct transfer from COMEX to China without being re-refined first. What it does suggest is that someone in the West hastily liquidated a large position, but of course that doesn't suit Zerohedge's dyed-in-the-wool penchant for goldbuggery, and so such niceties are conveniently overlooked. Ponzi.

As are these:

- COMEX leverage is currently not some nonsensical triple-digit number, but 29.17: anyone telling you otherwise does not know what "leverage" is, because with Gold currently at $1094/oz, for each 100oz contract you need to post $3,750 maintenance margin http://tinyurl.com/redneckdick... This is the case whether you wish to "print paper promises" or Un-print them by going Long - the Margin requirement is the same (with some SPAN offset for e.g. Calendar Spreads) Ponzi.

- The overwhelming bulk of deliveries (or "Settlements") of COMEX metals are by way of "Exchange For Physical", which is an entirely legitimate, normal and efficient mode of transferring ownership of physical metal from Eligible to Eligible inventory without a Warrant ever being attached http://www.24hgold.com/english... Anyone who tries to tell you that "eligible gold is "gold" that can not be used to satisfy inbound delivery requests without it being converted back to registered gold first" http://www.zerohedge.com/news/... (8th para) is either lying, stupid or probably both. Ponzi.

As long as the aggregate COMEX-authorised warehouse inventory exceeds the Open Interest in the front month contract, there is no immediate prospect of a delivery failure. At the present time OI in the August future is 3,838 contracts, or 383,800 oz http://www.cmegroup.com/tradin... whilst aggregate Warehouse Inventory amounts to 7,569,585 oz http://www.cmegroup.com/delive... - A POSITIVE COVERAGE RATIO OF 20:1. Even this figure significantly overstates the risk of a settlement problem, because in a typical month only about 3,000 contracts actually go into physical delivery http://www.cmegroup.com/delive... indicating that the real-world coverage ratio is more like 25:1 The notion that the Coverage Ratio is fractional and there are 100+ "paper promises" chasing after each ounce of physical Gold http://www.zerohedge.com/news/... is complete and utter bullshit. Ponzi.

Of course, these figures are probably all "painted" and the warehouses are empty except for cobwebs and shattered dreams: many semi-literate rednecks still appear to believe that COMEX operates some kind of sweet shop, where naughty Shorts have to queue up to buy Gold to settle their Futures positions. I think we should encourage them to continue in this belief, and perhaps introduce the notion that not only have the devious Chinese been secretly shaving 0.1 gramme of Gold off of every Kilo bar, but that TPTB are thinking of shortening the shop opening hours, introducing a quota system and are no longer accepting fiat currency as payment. Ponzi.

Personally, I am slowly losing my Salmon-like instinct to swim against this raging torrent of vacuous bullshit, and upon reflection I am content to let the Muppets get on with the show. In which vein, "Keep Stackin', or the Frog gets it!" Ponzi.
 
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