from ainsley bullion company today - re china, page-30

"So how do you explain the record amounts of gold being taken for physical delivery from the COMEX??"

This is another one of those urban myths. Like BIS making gold a Tier 1 asset a few months ago, and physical gold isn't actually being sold.... its 400 tonnes of paper gold instead.

These myths have their origins from the 'pumper' gold websites as our Perth Mint calls them

Regarding your point above, consider this statement from the Perth Mint's Bron Suchecki,


"First thing to notice is that even after the big gold drop being talked about, the total gold stock is still massively up on the 2001 bottom and the 1980 bull market. Not surprisingly, given the behaviour of SLV's holdings, COMEX silver hasn't dropped."

"So even after that COMEX stock drop in gold, we still have a coverage ratio that is way above that which applied in the 1980 bull and which is not down much on 2012. The current coverage of around 20% also needs to be kept in context of the percentage of open interest which stands for delivery, which for gold and silver over the past five years averages between 2% to 4%. So it looks like COMEX has plenty of stock on a historical basis."

http://goldchat.blogspot.com.au/2013/04/comex-stock-drawdown-single-most.html