… Been very interesting watching Comex last few months, loving it in fact... IMO...PM's to mean revert to the true supply & demands parameters of proper physical market fundamentals that was so rudely interrupted in 2011...
...All only IMO... Post GFC & gold at $1900/oz, so vested Sovereign interests obviously needed to stem capital flight to the wealth preserving PM's. Whether one subscribes to conspiracy or other manipulative theories, the facts certainly show the price was/is certainly 'controlled'... I doubt it mattered too much where the price sat as long as it traded within a range & if it got too uppity, it could easily be knocked down with the paper derivatives. The market takers were also the market makers, so profited both ways... good for some while it lasted, but most detrimental to the Industry & plenty of others besides. But the market will always mean revert to wherever it ought be...
...Thus far (13th) the initial standings for gold June contract month: no. of notices served (14,352) x 100 oz + OI for the front month (1649) minus the number of notices served upon today (103) x 100 oz which equals 1,577,900 oz (or 49.449 tonnes) standing in this active delivery month of June.... huge... with the amount standing for gold in May holding (actually increased as the month progressed) & rolled into June. Then add the 16.724 tonnes (standings) as rolled over from Feb, Mar, Apr = a total of 66.173 tonnes currently (13 June) still standing for delivery, ie, not settling for fiat paper. To roll over any standings into the next month, one's fiat account needs to be replenished by the 1st new Notice Day, therefore, someone obviously has ever deepening pockets...
...So there currently is 66.173 tonnes standing for delivery (& this month not yet done). Comex holds a total of 273.2 tonnes (both Customer & Dealer) but of this, only 51.487 tonnes is Registered as gold for sale in the Dealer Inventory. Not enough to satisfy those still standing & not wanting USD, despite any premiums that may accompany a fiat settlement.. For mine, the deep pockets can only be a Sovereign(s)... Given that JPM is the largest Comex player (38 – 40% from memory) &, of course, only interested in profit... also interesting that JPM is a registered entity in China, doing Far East business since 1921. JPMorgan Chase Bank (China) Company Limited is a fully-licensed bank incorporated and operating under the laws and regulations of the People's Republic of China. Licenses include derivatives, forex, local currency trading, govt bond underwriting, trade finance, cash management & commercial banking.... Their shady dealings in the US only involve handing over some filthy lucre to the SEC, but to cross the Eastern Commissars might be foolhardy??...
...Anyway, methinks the day of the paper PM derivatives is done & dusted. When?.. I'd hazard a guess at around Sept, given that the Yuan officially enters the IMF basket on the 1st Oct.... 'tho I'd expect a few more attacks & PM's to wobble a bit but the baby bull is an adolescent now & will prevail, (besides, why wouldn't China keep taking physical at the lows)...
...IMO, gold has now pretty much decoupled from any USD or FED influence & should it hold $1290+ for a few days in the next week, I'd not be surprised for it to be $1350 odd in Sept., nor to to be surprised if I woke in Oct to find the SGE fix was 50 – 100 – 150 or more than the previous day's Globex close...
...Nor has it been kept a secret that for years they've encouraged their populace to purchase PM's, perhaps to negate any internal strife when they crash their currency prior to a resetting for the IMF basket?..Wonder if it will re-emerge with a golden hue??..
...Off to Perth tomorrow for middle son's 40th, he reckons on treating himself at Barbagallo's Toy shop, but I reckon on dragging him to the Hay/Hill St corner to liberate something more pertinent, some more pet rocks whilst they're still obtainable...
