11 September 2013

Claims Per Ounce of Deliverable Gold at the COMEX Rise to New High of 57.6

Based on yesterday's activity, the claims per deliverable ounce of gold on the COMEX has risen to a new high of 57.6 contracts per ounce.

As you know it is highly unlikely that all contract holders would ever stand for delivery.

But it is a useful indicator of how the open interest is going relative to available inventory. It suggests that higher prices may be in the offing.

The last two times that we saw these extremes there was a meaningful trend change in the price of gold from lower to higher.  This makes sense because it is higher prices that would cause those who are merely using the COMEX warehouses for storage to offer their bullion for potential sale.

The extremes we are seeing now are quite new since the bull market began back in 2003.

Let's see what happens.   But the message appears to be written on the wall.

Weighed, and found wanting.

Stand and deliver.