Before beginning, I would like to inform you that no USA bank entered the morgue last night.
The FDIC decided to give the boys two extra weeks off due to their hard work for the past several months.
The bankers were surely ready with their fat fingers on the sell buttons in gold and silver as soon as the non farm payrolls were announced and they were weaker than expected. Gold had already reached $1764.00 during the night but when comex opened, the barrage begin. However gold would have none of this nonsense and it closed at $1747.00 up $11.70 on the day. Silver still remains a punching bag for the bankers as it lost 15 cents to $32.55. Let us now head over to the comex and assess trading, deliveries and inventory movements.
The total gold comex OI fell by a rather large 3591 contracts, from 430,118 to 426,527 despite gold's advance on Thursday. We lost some gold bankers along the way. The front delivery month in gold is exciting to watch.
Here the December month saw its OI fall from 6815 contracts to 3834 contracts for a loss of 2981. We had 4638 delivery notices on Thursday so we gained a huge additional 1691 gold contracts standing and lost nothing to cash settlements. It seems that we have some very anxious buyers of gold lining up at the comex to get whatever metal is available. The next big delivery month is February and here the OI fell from 264,239 to 262,255 for a loss of 1984 contracts. This is where some of the bankers threw in the towel. The estimated volume at the gold comex on Friday was a very tiny 122,281. The confirmed volume on Thursday was also anemic at 123,485. It seems that the MFGlobal scandal has had an effect on players wishing to invest.
They are fleeing the comex as fast as their little feet will carry them.
The total silver comex OI saw its OI fall 1401 contracts, from 98,068 to 96,667 a new multiyear low.
The lowest OI on record is around 90,000 contracts when silver was $4.00. However 10 years ago we also had high numbers of spreaders (calender spreads). If you take out these non economic spreads, we are at record low OI's with a much higher price of silver. The bankers are loathe to supply the paper as they know the game is up in silver. The next big delivery month is March and here the OI fell from 57,327 to 56,136.
The estimated volume at the silver comex was extremely anemic at 34,497. The confirmed volume on Thursday was also very low at 34,487 a difference of 10 contracts..
Inventory Movements and Delivery Notices for Gold: Dec. 3 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)
3347 (334,700 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
you will note that there was no activity whatsoever at the gold vaults.
We had no deposits, no withdrawals and no adjustments.
Thus the registered or dealer inventory remains at 3.34 million oz. Strange for a big delivery month!!
The CME notified us that we had 487 delivery notices on Friday for 48700 oz.
To obtain what is left to be served upon, I take the OI standing (3834) and subtract out Friday
deliveries (484) which leaves us with 3347 notice or 334,700 oz left to be served upon.
The increase in the number of oz standing in gold is due to the world clamoring to find the last morsels of physical metal. The dealer bankers are raiding the cookie jar trying to put of fires elsewhere.
The total number of gold oz standing in this delivery month of December is absolutely outstanding:
1,655,400 oz (served) + 334700 oz (to be served) = 1,990,100 oz or 61.9 tonnes.
If you combine the 1.77 tonnes of November we have 63.67 tonnes of gold standing or 62% of the registered gold inventory. It is absolutely strange that no gold is leaving the dealer to settle upon this huge number of gold oz standing.