07 August 2015

A very silly thing to think about Comex

Last month I covered Comex warehouse stocks in response to “a lot of chatter about the potential or certainty of failed settlement and Comex default”, making a number of points:
  • inventory can be converted from eligible to registered relatively quickly
  • including eligible inventory give a very different picture of warehouse stocks and owners per ounce
  • the actual percentage that stand for delivery is only 2-4%
  • current registered stocks vs open interest is well within current delivery rates
For those who focused on the registered stocks only, recent Comex deliveries have caused some disbelief. The best example of this is this piece by Zero Hedge. They way they word some statements could be misconstrued by investors new to precious metal, so as an education service below are some quotes from the article and some clarifications. [read more]


  1. I presume you are all over the fact that China is now updating gold holdings on a monthly basis, and that in this their first month of reporting it increased by about 24 tonnes, or roughly triple the implied rate of accumulation the past six years, right? :)

  2. Yes, I want to wait until the next month's report to see if that rate continues. It is a very interesting development after years of them hiding their figures.