Claims Per Deliverable Ounce Rises Above 55 at These Prices - JPM's Odd Warehouse Deliveries

There was nothing in or out of the Comex warehouses yesterday with regard to gold bullion.

TFMetals had some very interesting observations on recent actions in the Comex, in which JPM brought in two tranches of perfectly even metric tonnes to their warehouse.

Anyone who knows the nature of actual gold bars in use understands that they are never crafted even to the ounce, and certainly not to the tonne.

And one has to wonder where such a large amount of gold was found outside the Comex in 100 oz bars and/or from what refinery it has recently been certified Comex good.  Or were the customary requirements waived for some reason on introducing new bullion bars into the Comex complex for them?  Are they self-certifying now? 

They are on the quantities.  As you know, the CME has added a specific disclaimer to their warehouse report that say they perform no audit or inspection whatsoever on what the Banks might report in bullion, and assume no responsibility.

Be all this as it may, the number of claims per ounce of registered metal continues to climb with expanding open interest, and now stands at around 55, which is very high.    And about 40 percent of that deliverable gold sits in the JPM managed warehouse.

Given the potential for a dislocation to the exchange, and the widespread gimmickry that has been uncovered with the Banks and their commodity activity, I would like to think that the CME and CFTC might rouse themselves to have a look.

As I recall, someone who is a hero to the markets said, 'trust, but verify.' And the grounds for trust these days are stretched exceptionally thin.

Weighed and found wanting.

Stand and deliver.

Gold Daily and Silver Weekly Charts - FOMC and Option Expiration Next Week

As a reminder Monday, 28 October is the November options expiration on the Comex.

November is not a particularly significant month for the futures in precious metals, but relative to supply the open interest is rising, so we *might* see a gut check some day, perhaps Tuesday or Wednesday.

This would also cover the traditional whacking on the metals around an FOMC meeting announcement on Wednesday. I doubt very much we will see anything new out of the Bernanke Fed as he winds down his tenure. We may see some acknowledgement of the damage which the government shutdown has done to the real economy.

I have linked to two pieces on it in the sidebar news, the charge and the denial,  but have not commented on the allegations made by Mr. Jeffrey Christian at the Silver Summit this week that whistleblower Andrew Maguire is 'a fake.' Maguire has denied it in a statement at TFMetals, but has not yet made a more expansive and complete response.

Since none of my thinking depends on anything that Maguire has said, and I do not know him or the validity of what he says, it does not concern me overmuch.  I said as much the last time I spoke on this topic here.   But I have some friends who have confidence in him, and I would hate to see them disappointed and badly played. 

I am expecting something like an interview in KingWorldNews, and I would hope they don't beat the teasers on this to death for drama's sake.  A whistleblower must present their bona fides since it is a portion of their claim to credibility.  I look forward to clearing the air on this before it becomes even more nonsensical with ex-wives and he said, he said.   A frank and undeniable rebuttal is what is owed to their audience, and the mystery has become a bit much. 

And it is good to remember that the reason we must tolerate all this nonsense is because of the appalling lack of transparency in the positions and transactions in the gold and silver markets, and the uneven performance of the regulators who put forward five year investigations into verifiably odd actions in markets, and then shut them down without any report whatsoever. It hardly inspires confidence, and I think people around the world are viewing these antics with increasing disdain.

In the meanwhile, the markets go forward, and whatever has been hidden will be revealed. Eventually.

Have a pleasant weekend.

SP 500 and NDX Futures Daily Charts - Trick or Treat?

Stocks were drifting higher for much of the day as Amazon's beat on revenues cheered the markets.

The economic news not so much.

Next week is another FOMC decision on October 30. Do we think the Fed will have a trick or a treat for the market?

More of the same from their treat bowl is most likely with little new being done or said, as Bernanke winds down his tenure at the Fed.  They may acknowledge done to GDP by the government shutdown.

Have a pleasant weekend.

NAV Premiums of Certain Precious Metal Trusts and Funds

Still thin, but a bit less so.