From BullMarketThinking Over the last 90 days without any announcement, stocks of gold held at Comex warehouses plunged by the largest figure ever on record during a single quarter since eligible record keeping began in 2001 (roughly the beginning of the bull market). See chart below. Total drainage of physical inventories reached nearly 2 million oz.'s of gold, which at today's prices represent roughly $3,000,000,000 dollars. According to chart sage Nick Laird, this data indicates that, "Eligible stocks which are owned in LBMA/Comex good delivery form are being drawn downwhich means they are being removed from the warehouses. As to how and why they are [being] removed, that is a mystery. [Up until now], eligible stocks were on the continual increase throughout the bull market. Now that trend has changed." What is most interesting in reviewing this chart data, is seeing where the largest drops have occurred. The largest inventory drainage is being reported from JP Morgan Chase & Scotia Mocatta warehouses. See charts below. Scotia Mocatta's gold stockpile removals were nominal in size when compared to JPM's, but registered in at over 650k oz's of gold, or over $1 billion dollars worth of physical gold was removed from its vaults over the last 90 days. Bottom line: While mainstream voices question whether or not gold is still in a bull market, smart money appears to be questioning something else. They appear to be asking themselves, "Do we want to continue storing our physical metal within the Comex system? How can we best whisk it away from fraud, theft, or bankruptcy (including our own)?" The timing of this trend change is also quite shocking, as it's happening during a time in which public sentiment towards the metals are at their worse levels in years.
Generally held urban myth is they practice fictional reserve banking with their inventories... thus first in gets a chair and soon the music stops
Its Soros "exiting / dumping" GLD .... oh wait, he is just taking delivery ..... Could you borrow me $17.000.000 so I can tak delivery myself? Please?
The myth i'm referring to is that "Total Comex Gold Stockpile = 9.27 Million Ounces" is a little creative accounting and real inventory is ?? maybe 1/2 of that. So In reality they will default with "a couple of Moz" still showing in the warehouse
So price will go through the roof due to supply not meeting demand or will it crash as people realize the paper gold they thought they owned is actually worthless?
Goldman Sachs reckons gold's buggered. From: http://blogs.marketwatch.com/thetel...old-goldman-sachs-slashes-2013-2014-forecast/
I guess all the gold miners should lock in current prices for future production before the price slips further south.
The very same was said in april 2011 for silver. Then the announced 'Comex run out of silver' and 'shortage' all of sudden changed to massive oversupply that brought price down 36%. In a few days. And there are plenty other examples of how a certain (high or low) stock didn't lead to a specific outcome. It happened that stock is high and the price drops afterwards, and it happens that the stock is high and the price rises afterwards. Same story for low stock. Gold is going to $1800. Shortage! Then some gold owners sell. Oversupply! Gold goes back to $1500. Then some become gold owner again. Gold goes back to $1800. Shortage! Then some gold owners sell. OMG a price mechanism!
What have margin hikes on the taking of Comex futures positions to do with IShares Silver Trust shares?
