11 December 2015

Hong Kong Gold Warehouse Movements

Back in July I pondered what happened to 110 tonnes of gold in one of the Hong Kong gold warehouses registered by CME for its kilo futures contract. The chart below updates the figures and shows that wherever the gold went, its is gone for good.

Those that get worked up about Comex “leverage” ratios should be interested in the fact that the Hong Kong warehouse report only shows eligible stocks and has never shown any registered, which probably has something to do with the fact that the delivery notice report shows no issues/stops for the kilo contract so far this year. Forget your 300:1 Comex “leverage” – that would put the OI/Registered Stocks ratio as divide by zero error, or in other words, the CME’s Hong Kong contract has infinite leverage!

Read more here.

1 comment:

  1. It is never an easy task to decipher correctly when it comes to statistics derived from the finance sector. It is easy to get confused (or manipulated) by the figures which can only be figured out upon a discovery of an unexpected twist of events.