25 September 2013

Gold Daily and Silver Weekly Charts - CFTC Sees Nothing and Moves Along

As you most likely have already heard, the CFTC announced today that they have closed their five year investigation into manipulation in the silver market without further comment except that they have seen nothing.

I was disappointed but not surprised, since the regulators and politicians in the US and the UK are deeply wound in a credibility trap. Intraday commentary on that here.

It appears that JP Morgan is embroiled in a settlement over mortgage debt antics that is now rumoured to be in the $11 billion range for this one investigation alone.

As you know, September is considered a non-active delivery month, even though there is the usual delivery schedule as I have posted it below.    Can anyone tell me exactly why it is that some months, like August, October, and December are active delivery months and September and November are not?  I am quite curious.  I doubt it is just custom, and must have some basis in the rules. 

I asked several old gold hands today who certainly know more about the gritty details and they could not say, other than that some months are active in the futures, and others are more active in delivery.  The exception is December which is active in both.  If you know of some specific reason I should like to hear it.

Note: Since no one responded I spent some time and found the answer on the CME site here:
"Trading is conducted for futures contracts with delivery in February, April, June, August, October and December, falling within a 24-month period."
So let's see this last week of September pass, and look forward to October, wherein the rather thin inventory at the COMEX may be in for another run through the gauntlet of real things.

Speaking of real activity in real things, there was little activity in the COMEX bullion warehouses yesterday, with just 30 bars of customer gold being received at the Scotia Mocatta warehouse. 

It appears that the five tonnes withdrawal from the day before has not shifted to another COMEX domain but has said sayonara, and gone to other climes, perhaps not to return for some time and higher prices.

Have a pleasant evening.