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Mints, Refineries, Brokerages Out Of Stock - COMEX Gold Inventories Plummet

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Today’s AM fix was USD 1,462.25, EUR 1,123.43 and GBP 947.79 per ounce. 
Yesterday’s AM fix was USD 1,446.50, EUR 1,107.07 and GBP 937.64 per ounce.

Comex Gold Inventory Plummet

Gold climbed $33.90 or 2.37% yesterday to $1,464.30/oz and silver surged +4.83%.

Gold has surged 4.9% in dollar terms so far this week and is headed for its biggest weekly gain in one-and-a-half years. Gold has recovered in all currencies and is up by 4.8% in euro terms and 3.7% in sterling terms. 

Therefore, gold has recovered nearly half of its recent sharp decline and is now just 7% below its price ($1,560/oz) prior to the futures induced sell off on April 12th and 15th.

The manipulated sell off on the COMEX has led to bargain hunting and a surge in physical coin and bar buying internationally. Gold bullion inventories on the COMEX are being depleted rapidly (see chart and data below) and certain bullion products are either out of stock or production and distribution has been suspended.

The gold sell off has stoked a frenzy among coin, bar and jewelry buyers from China to India and the U.S. and Europe.

Government mints and refineries around the world have confirmed that demand for bullion coins and bars is surging and they are struggling to keep up with the demand as are brokerages who are running out of stock, particularly of smaller coins and bars.

The Perth Mint has experienced “unprecedented activity” and one of its busiest weeks ever. Some customers are experiencing “long delays” in securing certain bullion coins and bars.

The Perth Mint have suspended production of many silver bullion products (2013 Australian Lunar snake silver bullion coins - 1 kilo, 10oz, 5oz, 2oz, 1/2oz and 2013 Australian Kookaburra silver bullion coins - 10oz. 1oz and 1/2oz) but is continuing to offer 2013 Australian Kookaburra silver bullion coins (1oz and 1 kilo).

Many bullion dealers internationally have been cleared out of stock and buyers have to be less selective in which coins and bars they buy. This is leading to rising premiums on coins and bars and to delays in buyers receiving their bullion.

The U.S. Mint’s sales of gold coins are heading for the highest in almost three years following the biggest plunge in futures prices since 1980.

 


Gold Prices and US Mint Gold Coin Sales (1 Year)

The Bloomberg Chart of the Day shows the surge in American Eagle gold coins this month and the slump last week in futures.

Sales of gold coins from the U.S. Mint in April are set for the biggest month since December 2009 and the U.K. Mint has confirmed that gold coin purchases have tripled in April.

The risk of currency devaluations in Japan and internationally and then the confiscation of deposits in Cyprus was already leading to increased physical demand, particularly in Japan and Europe. 

Bullion buyers who were getting ready to allocate capital to the gold market saw the sell off as an opportunity to buy gold at much cheaper prices and were quick to take the opportunity. The tragic events in Boston and increased geopolitical risk may have also encouraged U.S. buyers who have been buying record amounts of gold coins at these lower prices.

 


Gold in USD, 5 day – (Bloomberg)

Demand in the Middle East and Asia, particularly China and India has also surged. This very important facet of gold demand continues to be ignored by gold bears.

The World Gold Council noted how there is a shortage of gold bars in Dubai, a primary trading hub for precious metals in the Middle East.

Gold physical demand has surged in India and China after the price drop. The two gold buying behemoths account for more than half of annual global bullion demand.

Gold imports by China from Hong Kong have surged this month as mainland buyers increased purchases after domestic prices sank to the cheapest in more than 2 1/2 years.

Volumes for the benchmark spot contract on the Shanghai Gold Exchange, China’s biggest cash bullion market, exceeded 20 metric tons every day since April 16. That’s more than four times the daily average in 2012, according to exchange data compiled by Bloomberg. Volumes reached a record 43,272 kilograms (43 metric tons) on April 22 alone.

This puts the rumour of Cyprus’ 15 tonne gold sale in perspective.

Retail sales tripled across China on April 15-16, according to the China Gold Association. Shipments to China reached a record 114,405 kilograms in December, according to data from Hong Kong’s Census and Statistics Department, which may release April data in June.

“Given that the trading volume has been so huge on the Shanghai Gold Exchange, the import volume in April should definitely reach a very high level,” said Qu Mingyu, a trader at Bank of China Ltd., one of the country’s three largest bullion banks.

 


Gold in USD, 1 Year – (Bloomberg)

Gold stockpiles held at warehouses monitored by COMEX, fell sharply this week according to  CME data:   

===============================================================================

                           April 24   April 23   April 22   April 19   April 18

                               2013       2013       2013       2013       2013

===============================================================================

Grand total               7,990,799     8,345,509   8,583,373  8,781,910  8,917,901

 30-day average       9,181,556     9,240,083    9,288,168  9,330,848  9,370,087

 Daily change              -354,710    -237,864      -198,536   -135,991    -32,497

 5-day avg. %                 -6.1%        -4.6%           -3.6%      -2.7%      -2.3%

-------------------------------------------------------------------------------

Total registered          2,174,090  2,210,736  2,281,503  2,280,400  2,371,583

 30-day average           2,634,576  2,649,134  2,664,740  2,674,676  2,684,738

 Daily change                    -36,646    -70,767      1,103    -91,183       -389

 5-day avg. %                      -17.1%     -18.8%     -15.5%     -12.8%     -10.2%

-------------------------------------------------------------------------------

 

===============================================================================

                           April 24   April 23   April 22   April 19   April 18

                               2013       2013       2013       2013       2013

===============================================================================

Total eligible            5,816,709  6,134,773  6,301,870  6,501,509  6,546,317

 30-day average           6,546,980  6,590,949  6,623,428  6,656,172  6,685,349

 Daily change              -318,064   -167,097   -199,639    -44,808    -32,108

 5-day avg. %                 -1.5%       1.8%       1.8%       1.9%       1.3%

                          --------------------Brink’s, Inc.--------------------

Total                       624,888    623,602    622,749    622,749    622,749

 Registered                 494,576    494,576    494,576    494,576    494,576

 Eligible                   130,311    129,025    128,173    128,173    128,173

                          -------------------Scotia Mocatta--------------------

Total                     2,930,817  3,020,611  3,491,842  3,241,037  3,255,905

 Registered                 501,155    537,801    378,053    607,465    622,333

 Eligible                 2,429,662  2,482,810  3,113,788  2,633,572  2,633,572

                          -------------------HSBC Bank, USA--------------------

Total                     3,486,233  3,491,642  1,286,265  3,524,073  3,632,317

 Registered                 378,053    378,053    780,334    378,053    378,053

 Eligible                 3,108,179  3,113,589    505,931  3,146,020  3,254,264

 

================================================================================

                           April 24   April 23   April 22   April 19   April 18

                               2013       2013       2013       2013       2013

================================================================================

                          ----------Manfra, Tordella & Brookes, Inc.-----------

Total                        26,946     26,946     26,946     26,946     26,946

 Registered                  19,971     19,971     19,971     19,971     19,971

 Eligible                     6,975      6,975      6,975      6,975      6,975

                          --------------JP Morgan Chase Bank NA----------------

Total                       921,916  1,182,708  3,155,571  1,367,103  1,379,983

 Registered                 780,334    780,334    608,568    780,334    856,650

 Eligible                   141,581    402,374  2,547,003    586,769    523,333

================================================================================

NOTE: Levels are in troy ounces. SOURCE: CME Group Inc.  

COMEX gold inventories are registered gold bullion bars that meet the standards for delivery under gold futures contracts and for which a receipt from an Exchange-approved  depository or warehouse has been issued.

JP Morgan’s eligible gold inventories fell by more than 70% this week which suggests there may be supply issues in the larger London good delivery gold bar market also. This is important to keep an eye on next week.

The death of the gold market is greatly exaggerated and gold’s long term secular bull market is set to continue due to very large and increasing physical demand for bullion internationally.

Ignore the gold doomsters who do not understand gold and have been wrong about it throughout the gold bull market of the last 12 years.

This is a buying opportunity. Secure your allocated bullion and take delivery of gold and silver bullion coins and bars while they are available and premiums, while higher, remain relatively low.

The violent sell off in the gold futures market has shook weak hands out of the market but gold’s long term fundamentals remain sound and it remains a vital diversification for all wishing to protect themselves from currency devaluations and the significant systemic risk of today.

GoldCore April Insight
The recent fall in the price of gold has proved to be a gift to other investors as small denomination bars, at the time of writing, are now difficult to source in India, Singapore, Japan, China and Europe.

In this month’s edition of Insight Chris Sanders argues that the real issue is that we are not accumulating enough capital to replace depreciating assets, particularly with regard to the production of energy. Accompanying this alarming reality is the apparent reckless abandon with which the banking fraternity in the US is ‘bending’ COMEX’s rules and over in Cyprus, treating depositors’ savings as their own personal safety net.

In this edition of GoldCore Insight you will find out about:

• The Cyprus rubicon - depositors' savings are fair game

• How energy will shape our future

• The importance of owning physical bullion

Download here

 

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Fri, 04/26/2013 - 15:37 | 3503589 Haager
Haager's picture

I bet that I'm still able to get physical gold below the Comex-price, for sure in some rogue-nations. Maybe I'll need to change dollars first into something more useful.

Speaking about Comex-prices my guts tell me that it hasn't bottomed yet.

Fri, 04/26/2013 - 15:18 | 3503542 chinaboy
chinaboy's picture

If the COMEX warehouse is low on gold, gold shorts need to have a lot of bars in their basement in order to deliver. 

Fri, 04/26/2013 - 15:06 | 3503505 lakecity55
lakecity55's picture

I did notice in Dubai while passing thru they had less stock in the PM cases than before a while back.

Here in Dhaka the regional news has more jewelry stuff in it, probably even more in India.

Fri, 04/26/2013 - 14:22 | 3503308 MillionDollarBoner_
MillionDollarBoner_'s picture

Said it many times b4 but worth repeating...

The deal in place is that the bullion banks have to supress hard asset prices so China can buy them cheap. In exchange the Chicoms continue to buy - or continue to hold - US T-bills. In turn this facilitates issue of T-bills to raise cash to backstop the bullion banks and other TBTF institutions.

The game ends when China has all the hard assets.

Keep on stackin' ;0)

 

 

 

Fri, 04/26/2013 - 14:52 | 3503438 sosoome
sosoome's picture

Have heard this before, and it makes more sense to me than any other of the manipulation stories.

Fri, 04/26/2013 - 15:09 | 3503517 lakecity55
lakecity55's picture

Yep. Inscrutable chinamen have patience, keep the game going, then pop out the Au-backed Yuan.

Unlike Libya, Iran, Iraq, they are too big to attack for threatening to go to a gold-backed currency or trade oil for Au.

Fri, 04/26/2013 - 15:57 | 3503640 Marco
Marco's picture

A gold backed yuan is not worth more than a non gold backed yuan ... at least not if it's not a minted coin (and it is it doesn't matter if it's a yuan or not). Ask yourself, what faith do you have in China not arbitrarily devaluing the Yuan at any moment they see fit? Gold has a long tradition ... but by now so does fiat currency, no government issued currency will ever be as good as gold again in the way of pre 20th century eras.

As for trading gold for oil, if they take the USA's place they will run into the same problem as the USA ... you can only fund a trade deficit with a gold backed currency for a short time before you get bled dry of gold.

Fri, 04/26/2013 - 16:15 | 3503703 lakecity55
lakecity55's picture

OK, but was there not restraint on the dollar pre-nixon unpegging the Au standard?

It seems if they tie it to Au they have a superior currency, as the dollar was, even though petrodollars are used for oil transactions.

Fri, 04/26/2013 - 14:19 | 3503289 dizzyfingers
dizzyfingers's picture

HongCha: me too.

Fri, 04/26/2013 - 14:17 | 3503282 dizzyfingers
dizzyfingers's picture

More clusterfugging.

Fri, 04/26/2013 - 14:05 | 3503228 Machine Parts
Machine Parts's picture

Do you expect me to talk?

No, Mr. Bond, I expect you to die!

Fri, 04/26/2013 - 14:02 | 3503200 Hongcha
Hongcha's picture

"...as long as there are counterparties stupid enough to do business with them."

Part and parcel of the Decline of the West.  The buyers are in Asia and will take their business to Asians.  Western dominance of these markets is in a free fall.

Amerika dominates only in the poisons it spreads across the globe (Hollywood, drug culture, consumerism, weapons) and has lost its innovative, inspirational and inventive properties.

Amerika will emerge from its Dark Age when we stop electing sociopaths.

And then I will start spelling it with a 'c' again.  I love my country and despise its leadership.  A great number of the people are stupified but there are healthy nodes in many places.

Fri, 04/26/2013 - 14:41 | 3503389 donsluck
donsluck's picture

In this matter, Asia has a LONG way to go. If you can trust "official" holdings numbers ;)

http://www.businessinsider.com/countries-by-gold-reserves-march-2013-3?op=1

Fri, 04/26/2013 - 16:21 | 3503715 lakecity55
lakecity55's picture

If these guys here in Bangladesh quit fighting hindu vs moslem and consider themselves as nationalists, they could organize and produce a lot of wealth.

As long as they are rioting, nobody will want to invest in infrastructure.

Fri, 04/26/2013 - 13:57 | 3503182 Quinvarius
Quinvarius's picture

Greshams law says there is no amount of physical metal they can come up with to stop the hoarding until the paper system is backed by gold again.  Just keep taking it.  Good money will always be taken out of circulation as bad money circulates.  And our current paper money system is the most toxic form of money the world has ever seen.

Fri, 04/26/2013 - 14:35 | 3503351 johnnymustardseed
johnnymustardseed's picture

Paper smashes physical

Fri, 04/26/2013 - 14:56 | 3503452 Quinvarius
Quinvarius's picture

It would be a historical first.

Fri, 04/26/2013 - 13:47 | 3503160 TheMonetaryRed
TheMonetaryRed's picture

I fear that retail investors are going to find out once again how little they matter.

Fri, 04/26/2013 - 13:45 | 3503149 sosoome
sosoome's picture

What about the refineries?

 

All you say is "struggling to keep up". What are production rates of the refineries and the round makers? Are they sitting around idle due to no raw material, or are they going gangbusters trying to catch up?

You say refineries "out of stock".

Please clarify.

Fri, 04/26/2013 - 13:43 | 3503138 sosoome
sosoome's picture

The last time Comex inventory took a nosedive, price collpsed too:

http://www.lemetropolecafe.com/img2013/Midas/0425/C.png

just sayin

Fri, 04/26/2013 - 14:20 | 3503301 cynicalskeptic
cynicalskeptic's picture

VERY different economic times.  Little in common with today.   Interst rates remain effectively zero and the mnony supply expansion continues to be expanded without limit.  Trillions of worthless 'assets' continue to be carrried on the books of banks and governments that are CONSCIOUSLY trying to inflate thier way out of this mess.  

If you can see a workable 'end game' that doesn't involve either a rapid collapse or long drawn out decline, please hshare it with us.   I'd love to hear some good news.  (and saying that the dollar is 'better' than the rest because it will be the last to collapse is NOT 'good' news).

 

IMO the 'best' you can hope for is that this all is a deliberately engineered collapse - as Bix Weir imagines - one designed to reset the whole system that was planned by a few in the US to overthrow the rule of banks and rebuild the US using hoarded and hetetofore hidden natural resources.  However even that ends up with an economically isolated US sticking the rest of the world with the consequences of its proflagcy, and a long period of rebuilding a lost industrial base.

But personally, I doubt anyone is that smart or altruistic to act in the interests of the nation as a whole.   Seems like we're do for collapse and a government tightening the screws to simply hold onto power.

Fri, 04/26/2013 - 14:34 | 3503342 sosoome
sosoome's picture

All I did was point out a historical fact. No need to get all "end game" on me.

Fri, 04/26/2013 - 14:37 | 3503361 donsluck
donsluck's picture

History is, by definition, fact. This is more of a future, or speculative site. In other words, so what?

Fri, 04/26/2013 - 14:54 | 3503447 bluprint
bluprint's picture

I found it useful, if only as a baseline. It seems to me the question: "Has this ever happened before and what was the result?" is a pretty good starting place for any speculation regarding an existing condition.

Fri, 04/26/2013 - 14:47 | 3503422 sosoome
sosoome's picture

"And those who ignore history,..."

Not saying it will repeat or that it won't. Not saying to obsess on where we've been.

Failure to factor in historical knowledge, however, opens one up for a skewed view forward.

Fri, 04/26/2013 - 13:12 | 3503015 petaloka
petaloka's picture

Funniest "bubble" I have ever seen. People are buying with both hands while prices are dropping.

 

Fri, 04/26/2013 - 14:56 | 3503450 Diogenes
Diogenes's picture

Only bubble I have ever seen, where prices have dropped $500 in 2 years , and $100 in 2 weeks. Usually bubbles indicate rising prices.

Fri, 04/26/2013 - 13:06 | 3502988 mt paul
mt paul's picture

new age alchemy 

turn paper into gold ...

Fri, 04/26/2013 - 12:55 | 3502930 de3de8
de3de8's picture

Glad my order in early and shipped. Just need it in my grubby little hands.

Fri, 04/26/2013 - 12:51 | 3502912 dontgoforit
dontgoforit's picture

Gold is so heavy.  Wears holes in one's pockets very quickly.  And, being soft, it gets all nicked up real easy.  Guess I'll sell that old tooth.  Better see my dentitst first, though.

Fri, 04/26/2013 - 14:36 | 3503347 donsluck
donsluck's picture

So, I can guess that you are carrying at least $150 in gold at all times?

Fri, 04/26/2013 - 12:13 | 3502718 richard007
richard007's picture

OK, so why aren't GOLD prices climbing with all this record consumption?

Funny business by Central Bank?

Fri, 04/26/2013 - 13:02 | 3502963 Al Huxley
Al Huxley's picture

Ypu mean 'Comex Gold' prices?  They're not climbing because they don't have that much to do with real gold, unless you're a retail buyer, trying to snap up a few ounces here and there (and in my experience, even that's getting difficult to do).   If Comex had to actually deliver on their paper promises, prices would be higher, but since they don't have that obligation, they can fuck with the price any way they want, as long as there are counterparties stupid enough to do business with them.

Fri, 04/26/2013 - 13:28 | 3503095 Fuh Querada
Fuh Querada's picture

That's the only issue that sometimes has me doubting the GATA manipulation thesis - how could technical funds or other speculators be so fucking stupid as to let themselves be buggered rigid time and time again, year in year out, by the takedowns.

Fri, 04/26/2013 - 14:33 | 3503336 MillionDollarBoner_
MillionDollarBoner_'s picture

The  big boys dont get screwed, they participate following tip-offs. Read Andrew Macguire's emails to those schills at the CFTC.

How is that investigation going now, Bart?

Bart!?! Hellooooo!?!

Fri, 04/26/2013 - 14:29 | 3503321 disabledvet
disabledvet's picture

Never listen to someone who is incapable of giving only one answer all the time.'"he talk stupid." I will grant if this is a risk/ARB trade "you have to be a massive buyer" in order to show to Mr Unlimited Liquidity "that you've got the product." ("I see your Schwartz is as big as mine.") of course if you LOSE that trade...well, let's just say "that's why there's an OCEAN of Silver in Chicago." don't be confused by the goal folks...traders live and die by their access to the Bank's capital. And their JOB is to take risk.

Fri, 04/26/2013 - 12:40 | 3502836 LawsofPhysics
LawsofPhysics's picture

So many paper promises, so little physical collateral of real value.

Fri, 04/26/2013 - 13:35 | 3503113 El Oregonian
El Oregonian's picture

"The importance of owning physical bullion".

This article can be boiled down to this last sentence. Period.

 

Fri, 04/26/2013 - 13:48 | 3503147 Dane Bramage
Dane Bramage's picture

"On sale for a limited time!!!"  

Fri, 04/26/2013 - 14:10 | 3503215 Bastiat
Bastiat's picture

Options expiration price manipulation . . . they had to wait until London closed, too.   We'll see if try for some follow through early next week as the Chinese banks are closed, I've read.

Fri, 04/26/2013 - 14:36 | 3503360 MillionDollarBoner_
MillionDollarBoner_'s picture

Its not manipulation its "profit taking"

/sarc

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