02 August 2013

COMEX Registered Gold Inventory Continues To Drift Lower - Chris Powell's Key Interview

Total gold at the COMEX, which includes eligible and registered bullion, remained steady at around 7 million ounces.

Registered gold, which is bullion that is considered as deliverable for those who choose to 'stand for delivery' on their futures contracts, remained a bit thin and decreased slightly to a little over 935,000 ounces.

So, the great tension between supply, demand, and price continues on, and will unfold over the next few weeks until the end of this delivery period on August 31st.

Here is Chris Powell's interview on King World News which is certainly worth hearing as an excellent summary of where the gold market stands today.

I have included the 'owners per ounce' chart update at the end of this. This helps to explicate the reason why such a shockingly low inventory of registered ounces is likely to result in higher prices, given the somewhat steady state of the open interest.

There are an unusually high number of potential owners for a low number of gold offered for delivery at these prices. Even an economist can understand that something will have to change to bring that into a more sustainable equilibrium.

Higher price is not the only outcome but certainly the most probable, all other things being equal, in a market economy.