01 October 2013

COMEX Warehouse Gold Bullion: Price Moves Smell of Desperation As Inventory Remains Thin

'O sir, to willful men,
The injuries that they themselves procure
Must be their schoolmasters.”

William Shakespeare, King Lear

There were 3,215 ounces of gold bullion taken out of the HSBC warehouse.

The JPM warehouse had 7,143 ounces changed from deliverable to eligible. 

Perhaps the price action freed up some bullion from the GLD ETF.  They need it badly. The levels of gold bullion backing up the leveraged COMEX paper claims on gold exchange remain remarkably thin and oversubscribed.

The international monetary regime is changing.  Nothing could be more clear if one listens to what is being said, and sees what is being done. 

The European Central Banks have made their intentions quite clear, and the Asian monetary powers are in full preparation for their plans, whatever they may finally be.

The forces driving this change are powerful and founded in time and nature. We are watching history unfolding.

Today we saw the familiar methods of the past in a blatant pricing exercise that smelled of desperation. They can set the price by force in the markets in the short term, but they cannot produce that which they have taken, or fulfill that which is owed.  

Weighed, and found wanting.

Stand and deliver.