05 October 2013

Owners Per Ounce of Silver and Gold at the Comex

For those who say they are influenced by COMEX statistics, there is a noticeable divergence between the availability of gold and silver for delivery there at these prices, especially when compared to historical trends and averages.

One of the non-COMEX factors that someone with the bigger picture view of things would note is that unlike gold, there is no great store of silver bullion in the hands of banks that can be leased out to backstop speculative shortages that might occur. So while the situation in silver may appear to be benign, in fact in many ways it is still a bit thin.

However, there is an obvious flight of inventory in gold going from the speculative West to the accumulating East. And there does not seem to be the same phenomenon underway in silver. I base this not on the COMEX, but on looking at most of the ETFs and exchanges that publish public data from around the world. Keep in mind that the COMEX is largely speculative, and not a major delivery mechanism for gold and silver.

People like to view things that support their biases. But the facts are what they are.

There is something very odd going on with regard to the inventory of gold bullion available for sale, that does not square with its sharp decline in price.