Gold Registered for Delivery at the CME Warehouses Plunges To a New Low

Over 200,000 ounces of gold bullion were withdrawn from the registered (deliverable) category in the Comex licensed warehouses at the least.

That takes the new total down to a little under 74,000 ounces of actual physical bullion registered for delivery at these prices.  I will check later but I do believe this is a new low for this century.

Since January is pretty much a non-delivery month for an increasingly non-delivering exchange, it may not mean all that much, but it is interesting to watch for all the reasons we have discussed previously.

And it is a fairly recent phenomenon with no other good explanation that those holding their gold at CME licensed warehouse do not with to hold their gold in a deliverable category at these prices.

Or they enjoy doing useless and pointless paperwork, as some would have you believe.

One should keep an open mind about things.  But some reasonably persuasive data to back up the theories from the perennial apologists for the bullion banks would be more persuasive.

When something has not happened before, and other evidence suggests that something has radically changed, I do not think that it is wise to just dismiss it.

This should send the 'potential claims per ounce' back towards those highs from the end of last year.

My own theory as you know is that traders who are holding gold in these warehouses do not wish to take the risk of losing it in a physical short squeeze, or have otherwise encumbered the gold and do not wish to risk a delivery and loss of the physical bullion.

There could be another reason for this.  I have surely not heard anything remotely plausible yet, just the usual tortured rationales from the perennial bullion bank apologists and creatures of a failing bullion hypothecation system.

Gold Is In a 'Flight To Safety' - Cup and Handle?

Maybe not so much in the US where the people are still largely unaware of most global financial events and currencies, and certainly of the historical role of gold.

But the strong upward correlation of the US Dollar and Gold of late are evidence of a strong 'flight to safety' trade.

In a flight to safety the price of gold bullion would likely lead silver and the miners. If at some point silver can pick up the baton and run higher, then we might think a proper bottom has been set and a new bull leg could be forming.

Speaking of that, as I have noted previously, gold *might* be forming a rounded or cup and handle bottom.  I am watching it forming on the gold chart although I have not yet marked it explicitly.

We have not seen many chart formations come to fruition because of the relentless capping of the prices with synthetic gold.

Gold Price Change Since 2000 in Various Global Currencies

Still Digging Out But Comfortable and Safe

We got clobbered by the Northeastern US snowstorm.  The snow itself was about 25 inches, and was not all that wet which is good.   I hear from friends and family that Virginia and Maryland got it much worse.

But the drifting was rather impressive here in the hills to say the least.  And this is from someone who grew up in the lake effect snowbelt on the shores of Lake Erie.  Three to four foot drifts ran across the yard front and back, and of course literally buried the cars and the better part of the driveway.

But although we were ready for it, we never lost power, so thanks be to God for that.

My poor little snowblower was chugging its 22 year old Tecumseh engine's heart out, but it did the job.  I probably should get a new one with a bigger front scoop, but this one still starts first try and runs like a champ, and gets the job done.  Some of the newer ones seem a little 'tinny' by comparison.

We dug ourselves out, and helped an elderly neighbor get cleared out as well, and I am beat.  The most formidable barriers were the four feet high compacted snow hillocks at the street from the plows.

And of course we cleared a spot in the backyard for the Shih Tzu who is now mobile, although still a bit wobbly.

Now I have to take some people various places. The trains are not running here yet, and still life goes on.

So here are a few early charts.  I have also included an economic event calendar, and highlighted the 4Q GDP advance number and the FOMC rate decision.

See you tomorrow.