29 November 2016

And the December Gold and Silver Contract 'Deliveries' Begin

For the first day of December, 493,800 ounces of gold have been taken for delivery at 1187.50.  This represents a nominal first day delivery value of $586,387,500.

The 'big customer' at Goldman and the house account at Macquarie continue to disgorge their gold positions, in size, through the delivery process.

The buyers of these positions are the house accounts at HSBC, Nova Scotia, and JP Morgan, in addition to the big 'customer' at Morgan.

As for silver, the big deliverers of the December contract positions were customers at Goldman and Intl FCStone, and a smaller amount from the house account at Nova Scotia.

The big takers of December silver were the house accounts at Macquarie and JP Morgan.

As you may recall, JP Morgan is holding the biggest hoard of silver on the Comex in its warehouses, with over 81 million of the almost 179 million ounces of silver on deposit.

Still, if history is any indicator, these gold deliveries are merely the pushing of paper claims for a smaller percentage of physical silver around the plate, with little physical metal actually going anywhere.

Not so for silver, which continues to see large inflows and outflows of physical metal, especially in the warehouses of wholesaler CNT.