Big COMEX Gold Withdrawals & New Record Low Dealer Inventory

After a brief pause in the decline of Comex Gold inventories, it looks like it has continued once again as there were several big withdrawals over the past few days.  Not only was there a large removal of gold from the Comex today, the Registered (Dealer) inventories are now at a new record low.

Scotia Mocatta had 63,786 oz of gold withdrawn from its Registered category.  This is quite significant as Scotia Mocatta’s total Registered gold inventories fell 41% in one day from 152,409 oz to 88,532 oz.


(click on image to see larger size)

Furthermore, you will notice that the total Registered gold inventories are now down to record low 416,563 oz.  The gold in the Eligible category is held by Customers at the Comex while the Registered inventories are the Dealer stocks.

A day prior to this update, there was 52,539 oz of gold withdrawn from JP Morgan’s Eligible category.

We can see just how much the Registered inventories have fallen since the take-down in the price of gold in April of 2013.  The Comex held nearly 3 million oz of gold in its Registered category, but today it has fallen 86% to 416,563 oz.

Registered Gold Inventories 10914 NEW RECORD LOW

The figures in this chart from do not reflect the drop of 63,976 oz from the Comex today.  As you can see, the bottom left hand corner of the chart only goes down to 431,530 oz.

According to the 1 month Registered gold inventory chart, there has been a huge draw-down since Dec. 12th.  From a peak of 780,000 oz on Dec. 12th, the Registered inventories have declined 363,437 oz (46%).

1 Month Registered Inventory Chart

In addition, the GLD ETF has shed 1,108,673 oz from its inventories in the same time period which puts the total decline for the Comex & GLD stocks since Dec. 12th, at 1,472,110 oz.

It looks like a great deal of gold is still heading East as the West continues to live on borrowed paper time.

Big Withdrawal From Comex Silver Inventories

It has been a while since we have seen a large withdrawal of silver from the Comex.  Since Sept. 2013, inventories at the Comex have seen a steady build from 161 million oz. to nearly 177 million oz.

However, there were two large and one small withdrawal from the Comex silver inventories today which totaled 1,354,270 oz.


 (click on image to see larger size)

Some analysts see the build in Comex Silver inventories as a bearish outlook for price in the future.  While we have seen a substantial build in total silver inventories at the Comex, the majority of it has been in the Eligible (Customer) category.

From May of 2011 when the price of silver reached its peak, Comex silver inventories hit a low of 86 million.  Today the total is 175 million.

Here are the changes in Comex Silver Inventories:

May 2011 Registered = 26 million oz

Jan 2013 Registered = 50 million oz (increase of 24 million oz)

May 2011 Eligible = 60 million oz

Jan 2013 Eligible = 125 million oz (increase of 65 million oz)

Despite the large build in Comex Silver inventories, this will not be detrimental for the price going forward when we consider upcoming positive factors in the silver market.

This will be discussed in my next article, INSTITUTIONAL BUYING:  The Coming Silver Game-Changer… coming this weekend.

IMPORTANT UPDATE:  In the next few weeks I will be adding a new section to the site called the REPORT PAGE.  On the REPORT PAGE, there will be Free & Paid Reports.

I mentioned a few weeks ago that I was going to put out a BOMB-SHELL that may change many previously held assumptions.  I still plan on putting out that report, however it will be part of a U.S. & GLOBAL COLLAPSE REPORT that will be my first Paid Report.

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13 Comments on "Big COMEX Gold Withdrawals & New Record Low Dealer Inventory"

  1. I appreciate and look for your articles and opinion. I’m hoping your new paid service will be affordable along the lines of Turd Furgeson’s paid service. I appreciate tthe month to month subscription and it’s affordable 10.00 a month fee. Hopefully your paid service will allow the average little guy access as well as the big hogs in the investment world? I guess we’ll see soon enough?

    • stumpydogface,

      Just to let you know, I will not be offering “Paid Service” as it pertains to a subscription service. However, I will offer new FREE & PAID REPORTS. The Paid Reports will be modestly priced.

      I will still continue to offer the same public articles as I have before. The PAID REPORTS will contain information and data not published in the public articles. While some of this information will be published in the public articles, it will only be a small percentage.

      Lastly, there may be some Paid Reports that will entitle the individual first access before it goes public in say a month or two. And again… only a portion of the information in the Paid Report would go public.


  2. Steve,

    Your work is consistently excellent and you must be working on the data fulltime. So I find it very reasonable that you now want to earn a living from doing so. I wish you well with the new approach.

  3. Steve,

    Sorry, no edit function and I forgot to add as follows: I have yet to see any sensible explanation of Comex Registered inventories in December versus deliveries. At the beginning of December 2013, Comex had sufficient Registered Gold to deliver about 3K Contracts. But JPM alone stopped about 6.5K Contracts. And there were others. SO where did this extra physical Gold come from? It just doesn’t seem to add up?

    Can it be assumed that JPM/The Fed/BIS settled in paper because they don’t want to destroy The Comex (And LBMA), without which they couldn’t continue to manipulate the “Gold Price” by dumping short paper Gold? My worry is that JPM will use its paper long corner in Gold NOT to make another $3 Billion on the way back up BUT as “Dry Powder” to dump into a new contrived down leg? The “Paper Losses” can be booked by JPM as “Trading losses by clients on directional positions” and Mr. Yellen’s printer can immediately offset the losses?

    It is clear that The Fed etc. have gone a very long way in the Gold manipulation game and it is not likely that they will surrender until the game is otherwise over. The trading patterns (The Globex “Dumps” and London Fix takedowns) have been without shame and/or fear of any “Regulator” issues of late. So why would they stop now when they can run the presses 24/7 if necessary?

    I suppose that, on the other side of this, they DO need SOME physical to keep the game going and it really does appear that “The cupboard is bare”?

    I would be very interested to hear your views.

    • philipat,

      It is difficult to determine what JP Morgan & the Fed are doing behind the scenes. All we can do is speculate. I do agree that Comex is settling a lot of contracts with paper, but this is not my specialty. I focus on the longer term.

      However, it is interesting to see the Dealer Inventory continue to decline. We must remember the Eligible inventories do belong to customers and I believe a portion also belongs to the Gold ETFs, such as the GLD.

      You say that JP Morgan’s long position may now be used to drive the price lower. While the paper price of gold could go lower, I find it hard that it would fall much lower than the break-even price by the miners. I believe there are a group of professional trader-investors who realize that if the price of gold went below its cost of production… that would be a huge buy signal.

      Again, I am more interested in the longer term outlook for the precious metals. I believe we will be hitting global peak oil production within the next year or two. Depending on the price of West Texas Oil, U.S. shale oil production could peak also within the next 1-2 years.

      Everything is based on energy and the Chinese. When either pull the plug…. then we have a whole different ballgame.


  4. Oh boy.. I have to say, the silver picture actually looks bad. There seems to be no shortage at all, even at these prices, below production cost for most primary silver miners.

    So we can only hope that when gold goes up (eventually), silver will follow.

    • Markus,

      Don’t be so pessimistic. I have seen huge declines in the Comex inventories during the 1990’s. with no apparent change in price. The take-down in the silver in May 2011 as well as Sept 2012 and April 2013 has driven investors world-wide from investing in silver.

      I have stated several times. To kill the price of silver… you have to kill INVESTMENT DEMAND. While the build in silver inventories may seem bearish at first glance, I believe its meaningless in the mid to longer term.

      Check out my newest article to come out on silver Sunday-Monday.


      • Steve,

        OK, yes, I’m sure you are right. You know a lot more about this than I do; more in fact than most people out there writing. But I’m going to have to side with Markus’ comments above.

        I’m just a guy with a Geology degree that went on to another profession. I read a lot. I write to, ask questions, and get replies from a surprising number of people who write and are interviewed…and I don’t write to the nuts out there. I only know a bit though compared to you.

        I think the declines and eventual depletion of Comex, other ETF’s, and London gold is what will liberate silver from bondage. Steadily increasing Comex inventories of silver are by themselves bearish for silver prices if JPM and the government want to cap the spot. With inventory they can…unless gold prices break from spot and lead silver with it.

        Steve when you say ” I have stated several times. To kill the price of silver… you have to kill INVESTMENT DEMAND. While the build in silver inventories may seem bearish at first glance, I believe its meaningless in the mid to longer term.

        I have a lot of understanding of that, and I assure other readers Steve is right on that.

        Gold may have to lead silver out of bondage [drag the price upward at first] but when investor demand hits silver it will surprise many bulls how high the price of silver in dollars, pounds, euros, yen, etc. will go.

        I’d be very surprised if that upside explosion in gold and silver can be suppressed through to the end of this decade, even if we weren’t approaching peak cheap oil/gas.

        • David,

          I don’t believe the build in silver inventories at the COMEX is bearish. I will explain why in my newest article to come out Sunday-Monday.


  5. My guess is that when the Morgue takes large deliveries of comex gold contracts as they did in december, and their registered and elegible catagories do not rise, then they must be settling in cash ( so as not to stress the already low inventories).

    Phillpat, I don’t think the Morgue wants to crash the price any lower with their new long corner on comex gold as that would cause mines to shut down. It is clear that they are using this long corner to cap any rises in comex gold, as we have seen in the last few weeks.

    Also, their primary purpose in amasing so many long contracts is to have amunition to sell into the market if their is another black or grey swan, such as when the Swiss announced that they would print Francs in unlimited quantities. When the next extremely gold bullish event occurs, the Morgue will sell massive numbers of contracts at the market in seconds in order to crash the price just prior to the announced bullish event. This will trip the Algo’s into selling on the news instead of buying; we have seen this several times before.

    Do you think the inventory numbers support this theory?

  6. None of this matters until it matters.And that day is rapidly approaching.

    Just keep buying physical bullion and keep your head down.Simple.

  7. Goldcorp has made an offer to buy Osisko.

    Osisko with 10 million ounces in ‘proven & recoverable’ and a further 7 million ounces in ‘measured & indicated’ gold reserves, is a prime target for take-over by large mining concerns.

    Could this be a precious metals bottom indicating move? Sure looks like it. Get ready to back up the truck. This kind of opportunity comes along just once in a lifetime, if you’re lucky. Stay tuned.

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