27 August 2015

JPM Customer Delivers 500 Gold Contracts of Bullion, Goldman Takes Most For the House

It is not possible to interpret the action fully from this report below.  Let me stipulate that up front.

It seems that a 'customer' trading with JPM has allowed 500 of their August gold receipts to be taken for 'delivery.' And most of them, 442 to be exact, were picked up by Goldman Sachs for their 'House' account.

In and of itself this may not be so significant. For example, we do not know who the 'customer' at JPM might be, or why they might have been selling their bullion receipts. Perhaps they were just raising some cash to cover stock losses.

And we do not know why Goldman picked up receipts for 44,200 ounces of gold at $1124. And what exactly this 'house account' might be.

Goldman has been stopping, or taking deliveries, for their House account pretty steadily this month.

Don't be too impressed by the words, because a 'delivery' just means paper receipts change hands.  Most of the time nothing really happens to the bullion, at least in The Bucket Shop.  It just gets shoved around the plate.  Up for delivery, back to storage, rinse and repeat.

I do like to keep track of how many receipts are marked 'deliverable' or offered for sale at the prevailing price, compared to the potential number of claims, or active contracts.

This is how it is for gold.   Silver, not so much.

CNT seems to be using the Comex for an actual sale and delivery and withdrawal mechanism for their actual business of obtaining a supply of bullion for their wholesale customers.

What an odd thing to do, actually transact deals between people who will take and use what they sell.  Well, they are an oversized coin shop, so you will have to excuse them.

And as the pit slugs will be quick to point out, we do not know exactly what this transaction on this report 'means.'  That is in the nature of these markets and their reports.  It could have been this, it could have been that.   Don't stand too close to the table kid.

I just thought it was interesting, and wanted to make a note of it for future reference.   I am curious to see how things in the warehouse reports set up for the big month of December.

And besides, it's nice to watch someone busy doing God's work.