24 August 2013

COMEX Registered Gold Falls To a New Low As JPM Takes a Large Delivery From Scotia Mocatta

Registered (deliverable) gold on the COMEX fell to a new low as JPM took delivery of 28,809 ounces from Scotia Mocatta.

There were a few transfers from the Eligible to Registered category with the only one of note being 4,605 ounces at Scotia Mocatta.

This is activity that occurred on Thursday.  We will have the information on Friday next week.  Let's see if the higher prices have shaken any more gold loose from weaker hands.

Next week we will see an option expiry on the COMEX for the precious metals on Tuesday,  and the end of the August delivery period on Friday.

The 'owners per ounce' remains very high at a little over 48 potential claims for every ounce of gold in the registered (deliverable) category.  It will take higher prices to move more of the gold from 'eligible,'  or stored in an approved COMEX warehouse, to 'registered,' or available for delivery.

Although it remains fairly stable at around 7 million ounces, the drop in total gold from all categories in all COMEX warehouses from over 11 million ounces at the beginning of the year is stunning.  It takes a bit of work to get that gold back into the system.  And much of it seems to have headed to other shores, and may not be coming back at any price.

I think that in their arrogance and greed, the gold cartel may have gone a bit too far in their latest pricing gambit, and painted themselves into a corner.  Higher prices may cause more accumulation of physical bullion by the ETFs, and nothing seems to halt the strong demand for physical bullion from Asia.  The writing is on the wall.

Weighed, and found wanting.

Stand and deliver.