Gold Daily and Silver Weekly Charts - Comex Disclaimer On Its Precious Metals Warehouse

It was a dull day in the metals trade.

Early this morning a friend sent me a note saying that the CFTC had put a disclaimer on its warehouse inventory report.  At first I though it was a joke or some hoax. He sent me the links to their site, and I saw that it was true.

"The information in this report is taken from sources believed to be reliable; however, the Commodity Exchange, Inc. disclaims all liability whatsoever with regard to its accuracy or completeness. This report is produced for information purposes only."

My reaction to this from earlier today is here.

While I might agree that Comex is not a primary source of bullion purchasing, it is the gold and silver bullion they hold that is the basis of their trade. It is not supposed to be a pure exercise in paper pricing.

And the timing of this is a definite eyebrow-raiser given all that is happening with regard to the opaque short positions, the record lows in inventory that is reported, overall tightness in global physical supply, and the recent decision by the Hong Kong Exchange to force settle in cash and fold up its trading table.

The US Comex is the major price setting mechanism for gold and silver in the world.  

Shocking to say the least, especially since this looks like the kind of statement that an attorney might suggest to an organization that was concerned about their ability to deliver on contracts out of existing inventory according to the terms of their agreements.  It drops any pretense to inventory controls and audits.

SP 500 and NDX Futures Daily Charts - Rally Tuesday Fizzles

Stocks had a ranging day, closing with a small loss, as jitters over the upcoming Non-Farm Payrolls report caused the sideways consolidation to continue.

Tomorrow we get the ADP private employment report, Productivity and Unit Labor Costs.

Friday is the big one, the Non-Farm Payrolls.

Caveat Emptor: Another Level of Non-Quantifiable Risk Added to Trading Metals On the Comex

The disclaimer below has recently been added to the Comex warehouse report.  Sharp-eyed Dave from Denver and His Band of Merry Pranksters spotted this little addition at the bottom of the page.

This is from the report that shows the amount of gold and silver said to be available at the Comex.

"The information in this report is taken from sources believed to be reliable; however, the Commodity Exchange, Inc. disclaims all liability whatsoever with regard to its accuracy or completeness. This report is produced for information purposes only."

So much for even any pretext of audits and inventory controls.   Just numbers on a piece of paper when push comes to shove.

One can only wonder why the Exchange felt the need to add this statement now, after all these years.  Especially when Comex eligible gold inventory levels are approaching record lows, and there is widespread mistrust of certain parties and their opaque market positions on this list.

And there are rumours of forced cash settlements in lieu of bullion delivery floating around. The Hong Kong Metals Exchange just folded, and forced cash settlements. And banks are cancelling physical delivery arrangements.

How can someone who is trading metals and storing them at the warehouse not be concerned about a declaration of force majeure without liability recourse? What is the purpose of a commodities exchange when there are no representations made that they even possess what one is trading?

Who does the PR for these jokers? Or do they just not care anymore?

We'll have to call the Waffle House and see if Bart Chilton has any comments to make about this.

I wonder if we will see more disclaimers like this. The supermarket can put a disclaimer in the meat department that says that while they buy their product from believable sources, they make no representations or accept no liability with regard to the actual species of the meat which you are buying.

Weighed, and found wanting.

Gold Daily and Silver Weekly Charts - Fraud Will Continue Until Confidence Improves

Intraday commentary here:  Chasing Madoff, Chasing Metals.

The ISM Manufacturing number was grimly low this morning.  There will be more economic data coming out all week.

Benny and crew are reflating the stock and bond bubbles to bolster the bad debt in the financial sector, and to replenish the pension funds, which are heavily invested.  Most of the money being created is getting put in the pockets of the one percent, and little enough is reaching the real economy. 

The Fed may make their noises about tapering and so forth. The Fed and government may put out propaganda about a broad and sustainable recovery. And the Congress can make their show piece hearings about reform and justice.

It is not happening. 

Non-Farm Payrolls on Friday.  I would not even hazard a guess on which way they might spin this one.

On the first business day of June the US Mint reportedly sold 583,500 silver eagles. Dave from Denver says that this is 20% of last June's total sales.

I almost do not expect for gold and silver to break out until there is a failure to deliver.  The western central banks seem desperate to control the physical offtake of bullion versus financialization.

I am trying to prepare myself to see some remarkable things.  But this makes forecasting quite difficult.  So risk management is hard to accomplish, except for the longer term.  I cannot believe these jokers and what they are doing.

Stocks and bonds seem to be part of the endgame.   Keep your eyes open, and back against the wall. lol.