24 September 2013

Fives Tonnes of Customer Gold Leave the HSBC Vault

On Monday 173,582 ounces, or roughly five tonnes, of customer gold was withdrawn the HSBC warehouse.

This takes the total gold in all of the COMEX warehouses to a new low of 6,860,160 ounces in 100 oz. bars.

The portion of this that is deliverable or 'dealer gold' remains at 672,000 ounces.

While this is adequate for the non-active delivery month of September, these are slim numbers for the upcoming active delivery month of October, and hardly appropriate for the contracts that are held through December, at least at these prices.

I will include additional charts as appropriate later on this evening.

These inventory figures indicate that option expiration shenanigans aside, higher prices will be required to move more gold into the dealer category and clear the markets at the COMEX.  The blatant price manipulation in paper has led to a tough situation for the banking cartel which seems to be at the apogee of their power, despite a prominent role in the financial crisis of only five years ago.
"When I despair, I remember that all through history the ways of truth and love have always won. There have been tyrants, and murderers, and for a time they can seem invincible, but in the end they always fall. Think of it--always."

Mohandas K. Gandhi
Weighed, and found wanting.

Stand and deliver.