Tag: comex

RELENTLESSLY FLOWING FROM WEST TO EAST

Guest Post by Jesse

Gresham’s law is an economic principle that states ‘when a government overvalues one type of money and undervalues another, the undervalued money will leave the country or disappear from circulation into hoards, while the overvalued money will flood into circulation.’

Notice the ‘sea change’ that occurred with Shanghai gold flows starting in 2013.

There were about 49 tonnes, or 1,575,000 troy ounces, of gold delivered from Shanghai in the latest week.

No matter what the pundits say about ‘gold bugs’ and all that sort of nonsensical disparagement, the central banks of the world have been net buyers of gold since about 2007, and the major countries of The Silk Road are buying gold bullion by the tonne each and every week.

Are they all unenlightened idiots? Goldbugs?

Are the central bankers of the world fools and dupes?

Or are we being misled by the global Banks?    Hard to believe, right?

Gold bullion is moving from West to East.

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WILL THE LAW OF SUPPLY & DEMAND EVER MATTER AGAIN?

The charts below reveal a dramatic decrease in physical gold on hand in the U.S. to back up all the paper derivatives floating out there. The physical gold has flowed from West to East over the last few years. The price of gold has been driven to 5 year lows through the use of paper derivatives, as the physical supply isn’t keeping up with the demand by any stretch of the imagination. 

The question is how long can this go on? In a real market, constrained supply and huge demand means higher prices. Higher prices would reveal the fallacy of central banks having everything under control. Can bankers manipulate derivatives forever to keep the price of gold from reaching its true fair value?

Historic Registered Low


Do Not Look at These Charts Showing Registered ‘Deliverable’ Gold Bullion In New York

 Guest Post by Jesse

 

“The sense of responsibility in the financial community for the community as a whole is not small. It is nearly nil.”

John Kenneth Galbraith, The Great Crash of 1929

Here are a few charts that show the rather striking decline in ‘registered’ gold, that is gold available for those standing for delivery, in the Comex warehouses.

‘Standing’ by the way means standing around and waiting for someone to choose to fulfill your request for your contract to be fulfilled with actual bullion before the cut off date.

You can see from the first chart that the likelihood of someone actually standing for delivery and receiving bullion has never been less at The Bucket Shop.  Real metal is unfashionable amongst our financial sophisticates.

As for delivery and withdrawal of bullion, it is getting stronger and stronger in the East.  Second chart.  What can one say at such embarrassing behaviour?  What a bunch of rubes!

Anyone Who Believes The Comex Numbers Is A Dope

Via Investment Research Dynamics

 

“The information in this report is taken from sources believed to be reliable; however, the Commodity Exchange, Inc. disclaims all liability whatsoever with regard to its accuracy or completeness. This report is produced for information purposes only.” – disclaimer now posted on the Comex gold and silver daily warehouse stock report as of Monday, June 3, 2013 – Investment Research Dynamics – June 4, 2013

Yesterday I published an article detailing the Comex gold futures to deliverable physical gold ratio that is now north of 200:1.  But an erudite colleague of mine, John Titus of “Best Evidence,” correctly pointed out that:  “They are probably bluffing.  In other words, the real number is significantly higher than 200:1.”

For the record, John does more thorough research on the economic numbers and reports that he studies than anyone I’ve ever come across.  And he does it with the trained analytic eye of a seasoned patent litigation attorney.

Let’s put everything in perspective.  The numerical reports from which fancy graphs and and dry detailed data presentations are created originate from the Too Big To Fail Banks. I’ve said for quite some time that IF the bullion banks who control the Comex and the LBMA are submitting honest data reports for the Comex and LBMA, it would be the only business line in which they do not hide the truth and report fraudulent numbers.  What is the probability of that?

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CHINA KEEPS ACCUMULATING PHYSICAL GOLD

Guest Post by Jesse

34.53 Tonnes of Gold Withdrawn from the Shanghai Gold Exchange In Latest Week

The Comex is a rounding error compared to the global physical market for precious metals.

Shanghai saw 34 tonnes of gold withdrawn last week.

There are less than 18 tonnes of registered (for sale at these prices) gold in all the Comex warehouses, and very little of it sees even a changing of hands, much less withdrawn.

This is why I call it a bucket shop. It has stopped being a major price setting mechanism for actual buyers and sellers of the physical metals, devolving into a speculative pricing platform.

This mispricing of risk and investment will have the usual consequences.

Gold and silver are natural currencies. And it is their physical nature that makes them resistant to long term manipulation.

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