COMEX Registered Gold Falls To a New Low As JPM Takes a Large Delivery From Scotia Mocatta

Registered (deliverable) gold on the COMEX fell to a new low as JPM took delivery of 28,809 ounces from Scotia Mocatta.

There were a few transfers from the Eligible to Registered category with the only one of note being 4,605 ounces at Scotia Mocatta.

This is activity that occurred on Thursday.  We will have the information on Friday next week.  Let's see if the higher prices have shaken any more gold loose from weaker hands.

Next week we will see an option expiry on the COMEX for the precious metals on Tuesday,  and the end of the August delivery period on Friday.

The 'owners per ounce' remains very high at a little over 48 potential claims for every ounce of gold in the registered (deliverable) category.  It will take higher prices to move more of the gold from 'eligible,'  or stored in an approved COMEX warehouse, to 'registered,' or available for delivery.

Although it remains fairly stable at around 7 million ounces, the drop in total gold from all categories in all COMEX warehouses from over 11 million ounces at the beginning of the year is stunning.  It takes a bit of work to get that gold back into the system.  And much of it seems to have headed to other shores, and may not be coming back at any price.

I think that in their arrogance and greed, the gold cartel may have gone a bit too far in their latest pricing gambit, and painted themselves into a corner.  Higher prices may cause more accumulation of physical bullion by the ETFs, and nothing seems to halt the strong demand for physical bullion from Asia.  The writing is on the wall.

Weighed, and found wanting.

Stand and deliver.

Moyers: America's Gilded Capital and Losing Democracy to the Predator Class

"The political class has reached some kind of critical mass in the 21st century. There is something going on in Washington that needed to be called out. I do not think it can be sustained, and I think it is indecent. It is not how Americans want their government and their capital city to be."

I strongly recommend that you watch this inside look at the culture of unwarranted privilege, unprincipled greed, and self-delusional narcissism amongst the ruling elite in Washington and New York.

There appears to be nothing, up to and including pardons for serious crimes and excuses made for genocide, that cannot be bought and paid for in the Gilded Capital of the US.

Welcome to The Hunger Games.




I think Mark should talk with Elizabeth Warren, and that perhaps the voters should send more people like her to the Congress.

America’s Gilded Capital
August 23, 2013

Mark Leibovich covers Washington, D.C., as chief national correspondent for The New York Times Magazine. In his new book, This Town, he writes about the city’s bipartisan lust for power, cash and notoriety.

It’s the story of how Washington became an occupied city; its hold on reality distorted by greed and ambition. Leibovich pulls no punches, names names, and reveals the movers, the shakers and the lucrative deals they make — all in the name of crony capitalism.

Gold Daily and Silver Weekly Charts - Inverse Head and Shoulders Bottom Continues to Form

There is an inverse head and shoulder bottom forming up in gold, and even on the weekly silver chart now.

I have taken the liberty of putting some preliminary marks on the chart to show my current thinking of how it may shape up. If the formation does not continue to evolve I may change or remove them. But I thought now was the time to share my preliminary thinking from my own 'shadow chart.'

While the 100 DMA was taken out today in gold, I do not think it is all that predictive or important, except that a few traders may favor it as an indicator. There are much more powerful technical indicators at work now.

What I have labeled 'neck 1' on the gold chart at 1420 is much more important, because it not only marks the first tentative neckline of the inverse head and shoulders, but it also marks the breakout point from the short term uptrending channel in which gold finds itself now. Not to mention that it also breaks the intermediate downtrend. I have included a 'closeup' of this chart area for your convenience.

Next week is an option expiration on the COMEX. I have not followed the balance of puts and calls, because while it is still important in the short run, the paper game is quickly losing traction, as the leverage increases, and the actual pile of bullion at their disposal and their other vain imaginings become smaller and less relevant to the world of real people and things.

So lets see how it goes. Hope to see you Sunday evening, with a possible talk, or interlude of music, in between.

SP 500 and NDX Futures Daily Charts - The Necessity of Regulation To Insure Market Efficiency

"There are so many questions as to why, but each comes back to this: The markets are not set up to be 'fair and orderly' for investors; they are set up for the benefit of very fast, sophisticated pickpockets."

Jon Najarian, Blame HFT For Yesterday's NASDAQ Mess

Personally speaking, there is merit in saying that quite a bit of the blame rests with the SEC, which after all is responsible for regulating the markets and setting the 'tone' for their behavior, by action and example.

And of course the myth, promoted out of self-interest, that any and all regulation is bad, because people are naturally rational, long term in their thinking, and virtuous.   And therefore they need no governance but their own wills. Markets always and everywhere are subject to distortion and corruption by the powerful without transparency and the equal justice of independent regulation and the law.

"In questions of power, then, let no more be said of confidence in man, but bind him down from mischief by the chains of the Constitution."

Thomas Jefferson

Yes there is a balance to be struck, but reform is not to be found in the mindless tearing down of past wisdom in the name of deregulation for its own sake, except if one would prefer to have no place to stand when the cold winds of the powerful and the unscrupulous blow without impediment across the land.