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COMEX Gold Stocks At Record Lows As SGE Volumes Surge 61%

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Today’s AM fix was USD 1,237.25, EUR 908.61 and GBP 757.19 per ounce.
Yesterday’s AM fix was USD 1,238.00, EUR 908.56 and GBP 753.91 per ounce.

Gold fell $2.80 or 0.23% yesterday, closing at $1,240.60/oz. Silver slipped $0.04 or 0.2% closing at $20.15/oz.

Gold prices are marginally lower again today in most currencies. Gold is more than 1% higher in Australian dollars after a very poor jobs number in Australia raised concerns about Australian asset bubbles and the Australian economy. The Aussie dollar has fallen by 4.4% against gold so far this year.

Technically, gold is looking sounder. Support is at $1,220, $1,200 and of course what appears to be a double bottom at $1,180/oz. A close above $1,270 could see gold quickly move to test resistance at $1,300 and $1,330.


Portion of Registered Comex Gold Stocks at Record Low: Bloomberg Industries Chart

The supply demand fundamentals of the gold market remain sound with the flow of gold from West to East.

COMEX gold stocks have fallen to new record lows (see chart) showing demand for physical bullion remains very robust. Indeed, the scale of the fall in COMEX gold stocks since 2007 and which accelerated in early April 2013 is important to note.


Daily Shanghai Gold Exchange Volumes Surge 61% Yoy: Bloomberg Industries Chart

Conversely, on the Shanghai Gold Exchange (SGE), volumes surged in the year 2013, particularly since the peculiar, sudden price drop in April and volumes traded surged 61% year on year.

The London bullion market has seen intermittent shortages of 400 ounce gold bars. Traders said the shortage of London Good Delivery Bars was pushing premiums for physical delivery for 400 ounce bars as high as 50 cents.

Physical buyers view the 28% sharp sell off in 2013 as an opportunity. They continue to accumulate on prices below the $1,300 per ounce level.

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Thu, 01/16/2014 - 22:00 | Link to Comment new game
new game's picture

gold is a funny one, cause everyone acts so stoic about but it yet they emo off the charts about the shit when threatened as to the usefull value it represents. problem that arrises is they have to convert back to a money to get what they want. or hold it. only two options.

end of the day they hold and build this thesis to justify its ownership.

after holding i realized i could hold on to more usefull substances that also hold much more value due being usefull to do something. lead, gun or tractor for example. to each his or her own. sorry if your toes hurt...

Thu, 01/16/2014 - 21:36 | Link to Comment jharry
jharry's picture

I wish someone here saw the real big picture, but alas, he or she doesn't.  See you in the funny papers!

Thu, 01/16/2014 - 21:54 | Link to Comment logicalman
logicalman's picture

Why not share your thoughts, othewise you are just typing.

Thu, 01/16/2014 - 11:32 | Link to Comment Sonic the porcupine
Sonic the porcupine's picture

What does underlying physical supply have to do with the manipulated paper gold markets?

Thu, 01/16/2014 - 13:05 | Link to Comment GrinandBearit
GrinandBearit's picture

Quick answer...

Absolutely nothing.

Thu, 01/16/2014 - 11:58 | Link to Comment thunderchief
thunderchief's picture

Two of the Feds biggest miscalculations have been...

1 Hammering the price of gold would lead to a deluge of physical selling.

2 Getting India to impose capital controls will free up 1000 tons of gold.

When these people screw up, its big, as in handing the entire western gold market and all physical gold to the east.

That is such a monumental grand historical fuckup it should take your breath away.

Thu, 01/16/2014 - 12:07 | Link to Comment Sonic the porcupine
Sonic the porcupine's picture

I don't know why captial controls in India didn't work. We all know how well making something illegal eliminates the demand for it. For example in the US, prostitutes, marijuana, and guns are completely out of the hands of those for whom it is illegal to possess.

Thu, 01/16/2014 - 11:20 | Link to Comment NoWayJose
NoWayJose's picture

You have to love the trend for gold to be exchanged in a communist country rather than in the UK or the US, as traders and gold producers seek a less manipulated market...

Thu, 01/16/2014 - 11:31 | Link to Comment fijisailor
fijisailor's picture

Yes.  Who knows what the Chicom central planners are up to.

Thu, 01/16/2014 - 11:15 | Link to Comment Sufiy
Sufiy's picture


Arthur Cutten: COMEX Gold Potential Claims Per Deliverable Ounce Rises to Historical High 112 to 1


  After issuing his Buy Signal on Gold, Arthur reports the new historical all-time-high leverage at COMEX with 112 potential owners for each one ounce of Gold! http://sufiy.blogspot.co.uk/2014/01/arthur-cutten-comex-gold-potential.h... Arthur Cutten: JPM Holds the Whip Hand on the Comex - Gold Buy Signal GLD, MUX, TNR.v, GDX

 "Arthur Cutten has issued his Buy Signal on Gold. He has a very conservative approach and his article speaks for itself."

Thu, 01/16/2014 - 15:16 | Link to Comment Fuh Querada
Fuh Querada's picture

"BO POLNY" * issued a buy signal in June 2013, accompanied by a genuflection from Jim Sinclair.

*at the time I thought this was an anagram challenge

Thu, 01/16/2014 - 13:55 | Link to Comment redux2redux
redux2redux's picture

That's like a game of musical chairs where there is one chair for 112 people.

 

When the music stops, it is going to get ugly.

Thu, 01/16/2014 - 12:47 | Link to Comment Save_America1st
Save_America1st's picture

Tick-Tock...Tick-Tock...and then...KABOOM!

Better have all the phyzz you can possibly stack dialed in before the SHTF on the Crimex, folks!!!

Thu, 01/16/2014 - 11:04 | Link to Comment The Shodge
The Shodge's picture

Ok, we've heard this countless of times now. WHEN are the suckers gona be empty????

Thu, 01/16/2014 - 11:02 | Link to Comment Save_America1st
Save_America1st's picture

Check this out as well.  Excellent read with lots of links:

Fun With The GLD via TFMetalsReport

http://www.tfmetalsreport.com/blog/5397/fun-gld

 

Thu, 01/16/2014 - 11:00 | Link to Comment Save_America1st
Save_America1st's picture

Anybody own any Osisko Mining???

Goldcorp Offers To Buy Osisko Mining: The Bottom Is In

http://www.silverdoctors.com/goldcorp-offers-to-buy-osisko-mining-the-bottom-is-in/

From the article:

Goldcorp has offered Osisko shareholders $2.4 billion in stock and cash to buy the shares of Osisko Mining (OSK).  In terms of proven and potential gold in the ground, OSK is one of the best ways to play a big recovery in the price of gold and the precious metals mining industry.  Goldcorp has always been the most likely buyer of Osisko so it was just a matter of time before this deal happened.  For the record, Osisko is one of the bigger stock positions in the fund I manage.  I have been waiting since 2010 for GG to takeover OSK.  This is just the beginning.
Goldcorp knows where the price of gold is headed and this why they are buying Osisko now.  They also probably know that the window of opportunity to buy 30 million ounces of gold in the ground at this price is quickly closing.  In other words, this deal marks the turn in the massive gold and mining stock sell-off of the last two-plus yearsWhile I expect Goldcorp to sweeten its offer, don’t get caught up in the details of this transaction and miss the big picture:  the bottom is in and gold is back on track to resume the upward trajectory it was on in 2011.

Thu, 01/16/2014 - 11:48 | Link to Comment Save_America1st
Save_America1st's picture

read the last sentence of the excerpt above...I think the author knew that was going to happen:

 

While I expect Goldcorp to sweeten its offer, don’t get caught up in the details of this transaction and miss the big picture:  the bottom is in and gold is back on track to resume the upward trajectory it was on in 2011.

 

Point being that this move shows that although paper price may still go down, the big guns are now out there starting to shake things up in the mining sector.  They're saying that if we own or can find the good jr. miners out there then it might be time to start buying.  The mining sector will most likely be the canary in the coal mine or the catalyst that starts the drive upwards in physical while busting the paper Crimex market.  Once mining shares get rocking and the bottom is confirmed and in the rear view mirror, well, Katie bar the fucking door, because there's gonna be a stampede into every mining stock with gold or silver in it's name even if it's just a clump of dirt.  Then the phyzz market is going to catch fire and we're off to the races of the next big upleg in this bull run. 

Fuck I can't wait...just got goosebumps writing that! LOL  People better be ready to get on that rocket early...and they might see a little more losses before it takes off, because it's stupid and nearly impossible to time the bottom perfectly and catch that knife. 

But at this point in the miners and in phyzz the downside risk is nearly nothing...the miners are on life support but there's a lot of big money waiting to breath life into them and some will be 50 to 100 baggers!  It's going to be insane as we over-shoot to the upside over the next 5 years or so. 

Goosebumps again!  Damn, I'm ready for a beer!!! LOL

Keep stackin' that phyzz folks!!! 

Thu, 01/16/2014 - 13:40 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

up, down, good, bad: why are people so emotional about trading and/or long-term asset value?
Wouldn't it be better to have barely any emotion to ensure mistakes aren't made?

Thu, 01/16/2014 - 15:21 | Link to Comment Fuh Querada
Fuh Querada's picture

Those are the HFT algos

Fri, 01/17/2014 - 04:03 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

and smart traders. Judge by math, not by emotions. Emotions can't bring you profitable trades.

Thu, 01/16/2014 - 11:59 | Link to Comment fijisailor
fijisailor's picture

Agree with you 100%.  I'm only pointing out that this particular deal may not happen as planned.

Thu, 01/16/2014 - 10:44 | Link to Comment new game
new game's picture

sold into last wiggle as bottom to come-jmo.

if wrong ask me if i care...

Thu, 01/16/2014 - 10:38 | Link to Comment Uchtdorf
Uchtdorf's picture

What if everybody just stopped talking about gold and actually bought some? I have a dream...

Thu, 01/16/2014 - 10:44 | Link to Comment LawsofPhysics
LawsofPhysics's picture

"What if everybody just stopped talking about gold and actually bought some physical and took delivery" - Fixed.

Thu, 01/16/2014 - 11:24 | Link to Comment ltsgt1
ltsgt1's picture

The Chinese are waiting in line to do just that.

Thu, 01/16/2014 - 11:32 | Link to Comment LawsofPhysics
LawsofPhysics's picture

many people are.

Thu, 01/16/2014 - 10:31 | Link to Comment Papasmurf
Papasmurf's picture

Gold's price wiggled again.  Time for another article.

Thu, 01/16/2014 - 13:48 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

I'm honestly getting pretty sick of the goldcore pre-format report.
It's mostly useless, showing out of date prices & useless commentary on the change with like 2 sentences that are marginally better information.
And just marginally. the comment from sufiy is pretty much the only real useful info found here today.

Thu, 01/16/2014 - 10:27 | Link to Comment SAT 800
SAT 800's picture

Good delivery bars abailable at $1245 right now; for all practical purposes the spot price.

Thu, 01/16/2014 - 10:24 | Link to Comment SAT 800
SAT 800's picture

The Comex Gold Stocks are a fractional representation of the open interest, the number of active contracts, which is quite low. Also there is competition in the form of the Shanghai Exchange, and others. They don't indicate anything about "demand". All in all the Comex presents a picture that looks like bottom formation for the PM prices; I think it's more likely they'll trade up this year than down; but I'm frequently wrong.

Thu, 01/16/2014 - 14:51 | Link to Comment El Oregonian
El Oregonian's picture

Who cares what the price of physical is now, it doesn't matter, just keep stacking. You'll be putting your family in financial security, so it doesn't matter what the price is, just keep stacking as you can afford it.

Thu, 01/16/2014 - 10:19 | Link to Comment Gringo Viejo
Gringo Viejo's picture

Gotta love these guys that hold onto TA for dear life.
Give me a break Schmedrick..........

Thu, 01/16/2014 - 13:50 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

it's not even TA. It's not analysis & it's not technical.
There's no such things as double-bottoms, cup-and-handle, head-and-shoulder or linear left-to-right across the entire chart levels of "support" or "resistance".
It's bullshit, an assertion with no math, no back-testing & no analysis at all.
It's flat out seeing pictures in the clouds & making shit up.
Not technical, not analysis. Until I see an equation with back-testing to prove it, it's not TA.

Thu, 01/16/2014 - 23:48 | Link to Comment TheReplacement
TheReplacement's picture

The most successful deals ever made, from the point of view of the manipulaters, were made because of emotions.  Emotions and guts win a lot is my point.  Of course it helps to be the one creating the emotions and to have the guts to take advantage.  I suppose the willingness to take advantage is a moral question.  Some people just want to make money.  Others want to own a country like England.

Even with TA a bright boy or girl can probably manipulate fellow insiders to control the system for their exclusive benefit.  To do so they might leverage the fear of economic catastrophe upon the masses.

Does that sound familiar?

You cannot remove the human element.  Why don't you people understand that?

Fri, 01/17/2014 - 04:03 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

it's a lie - that's what I understand.
Presenting emotion is a trick, just like waving hands in a magic trick.
It's to pull your eyes away from the real mechanics of what happened.

It's not emotion that's the human element at play, it's deceptive calculation.

Thu, 01/16/2014 - 21:19 | Link to Comment SILVERGEDDON
SILVERGEDDON's picture

That is the Cock And balls Analysis System. 

if you cling on to it, you suck. 

Thu, 01/16/2014 - 15:18 | Link to Comment Fuh Querada
Fuh Querada's picture

"Yes but we have obtained great results for our clients with the 43 1/2 day exponential moving average combined with a proprietary oscillator ! "

Thu, 01/16/2014 - 20:44 | Link to Comment logicalman
logicalman's picture

If they diddn't convert what they got to phyz, they've reaaly not got much.

Do NOT follow this link or you will be banned from the site!