Today bourses around the globe plummeted as many have figured out that the Friday accord was really a phony and would not solve the economic crisis in Europe. No doubt today we had many getting out of GLD/SLV and into real metals. Confidence is now beginning to wane. The price of gold finished the session at $1664.20 down $47.80 dollars. The price of silver fell to $30.94 down $1.23. I would like to emphasize to you that these prices are paper gold price and paper silver price. The clowns continue to whack the paper price with no profit motive just to keep the price down and show the world that everything is fine. Let us now head over to the comex and see how trading fared with respect to inventory movements and deliveries.
The total comex gold hardly budged with today's reading shedding only 187 contracts from Friday's, coming in at 424,055. In another shocker, the front delivery month of December mysteriously saw its OI rise from 1356 to 1545 for a gain of 189 contracts despite 276 deliveries on Friday. Thus we gained 465 contracts or 46,500 oz of gold standing. The next big delivery month is February and here the OI fell slightly from 262,295 to 261,430. The estimated volume today was high but I will bet most of the sales were short sales by the bankers as they have no backing for gold. The confirmed volume on Friday with no raid came in at 113,304.
The total silver comex OI fell slightly by a little over 400 contracts to 96,348. The front delivery month of December saw its OI fall 15 contracts to 376 from 391. Since we had zero deliveries on Friday, we thus again lost 15 contracts to cash settlements. Notice the contrast to gold. The next delivery month for silver is March and here the OI fell by approximately 1500 contracts to rest tonight at 52,576. The estimated volume today was surprisingly tiny at 37,978 despite the big raid. The confirmed volume on Friday was 35,454.
Inventory Movements and Delivery Notices for Gold: Dec. 12 2011:
Withdrawals from Dealers Inventory in oz
Withdrawals from Customer Inventory in oz
Deposits to the Dealer Inventory in oz
Deposits to the Customer Inventory, in oz
No of oz served (contracts) today
No of oz to be served (notices)
1524 (152,400 oz)
Total monthly oz gold served (contracts) so far this month
Total accumulative withdrawal of gold from the Dealers inventory this month
Total accumulative withdrawal of gold from the Customer inventory this month
Strange day at the gold vaults today.
Still no gold deposit into the dealer. The entire action was with the customer.
On the deposit side of things we had another of those perfectly round 32,000 oz and the vault
is HSBC. Since I have been reporting on the nice round deposits generally going to Brinks, I guess the boys are trying to throw the scent somewhere else. You just do not get exact deposits like this.
On the withdrawal side:
1. 40,027 oz from HSBC (notice the ..27) this is a normal withdrawal.
2. 64 oz from Manfra.
total withdrawal: 40,091 oz.
we had a tiny 98 oz adjustment as a customer leased this gold to the dealer.
The total registered gold remains at 3.347 million oz
The CME notified us that we had 21 delivery notices for 2100 oz of gold.
The total number of notices filed so far this month total 18,199 for 1,819,900 oz.
To obtain what is left to be filed, I take the OI standing (1545) and subtract out today's deliveries (21)
which leaves us with 1524 notices or 152400 oz left to be served.
Thus the total number of gold oz standing in this delivery month of December rises to the following:
1,818,900 oz (already served) + 152400 oz (to be served upon) = 1,972,300 oz or 61.34 tonnes
or 60% of registered dealer gold.
Yet no gold has been withdrawn by the dealer to settle upon these longs. To me it means that much of the comex gold is settling with GLD paper and that paper is encumbered elsewhere. The only gold that is leaving the comex on settling is when the customer asks for the gold to be removed from all registered comex vaults.