Chart: COMEX Gold Inventory

button-vaporize-comex-white-backNOTE: Latest COMEX Gold Inventory chart is to the right, in the sidebar.

Here’s the latest COMEX Gold Inventory chart. (If you can’t see it click the title of the post above.)

comex-gold-inventory-2009-01-06

Please, let me be the first to call myself an idiot.

No, I insist! Really.

In the previous “Vaporize COMEX” charts I plotted the MTD deliveries against the inventory numbers provided by COMEX. I subtracted the delivery ounces from the reported inventory assuming the inventory levels would be adjusted downward after the end of the delivery month. It looked as if 48.1% of COMEX gold had been depleted.

Wrong-o, moose breath!

All my previous charts were wrong. It appears the reported inventory levels have already been reduced by the “net” delivery amounts.

In other words, the major gold and silver speculators are playing a shell game: when they “take delivery” they just move the metal from one “registered” pile in one of the COMEX-approved warehouses to another. There is, so far, rarely any actual physical delivery. The chart above shows almost no metal has left the warehouse.

On Nov 28, first notce day for Dec gold deliveries, COMEX reported 2,855,567 “registered” ounces. On Dec 31, the day after final notice day, COMEX reported 2,826,953 “registered” ounces. This is an inventory depletion of only 1.0%.

Cornholio, I think you may have mentioned something along these lines when you said there was no way COMEX would be busted. Sure looks to me like you’re right.

Assuming COMEX is honestly reporting their inventory levels, and that the gold physically exists, it’s gonna take some seriously deep pockets to bust COMEX.

About COMEX Failing to Deliver on “MiNY” Contracts
I know some of you have been getting excited about this story:
Is Comex Doing Fractional Reserve Delivery of Gold?
But is this really significant? IMO COMEX is just discouraging miNY contract holders from taking delivery by setting the bar a little higher. If you have to have three miNYs to take physical delivery you might as well just pony up for the full contract. It doesn’t seem COMEX has any problems delivering 100 oz bars.

What do YOU think? Comments are opened below…