BREAKING NEWS: COMEX Registered Gold Inventories Plummet 73% In One Day

Looks like something big is about to take place on the Comex as Registered Gold inventories declined a whopping 73% in one day.  This is a very suprising update as Comex Gold inventories haven’t experienced much movement over the past few months.

Well, this all changed today as a stunning 201,345 oz (73%) of the total 275,325 oz of Registered Gold was transferred to the Eligible Category today:

COMEX-Gold-Inventories-012616

As we can see, 21,200 oz was transferred from Brinks Registered Inventories, 84,881 transferred from HSBC and 95,269 from Scotia Mocatta.  There are only 73,980 oz of Registered Gold remaining in the Comex inventories:

COMEX-Total-Gold-Inventories-012616

This is the lowest level of Registered Gold inventories on the Comex for more than 20 years.  There are now only 2.3 metric tons of Registered Gold remaining at the Comex. 

This has to be one of the most surprising movements of Comex Registered Gold inventories ever.  It will be interesting to see what happens over the next few months as the broader stock markets continue to crash while precious metal physical investment surges.It seems to me that this huge decline of Registered Gold Inventories suggests that the end of the Comex Exchange as a price setting mechanism is now even closer at hand.

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42 Comments on "BREAKING NEWS: COMEX Registered Gold Inventories Plummet 73% In One Day"

  1. Moving it from registered to eligible means no longer available for physical delivery, right?

    Perhaps some entity was about to stand for physical delivery…and they had to prevent that??

    • Someone also could have puechased that gold from an entity willing to sell it, then have that gold stored in a vault. (Eligible). To be sold when the price rises dramatically. If someone was to take delivery, and the gold now be there, then the pants come off! This is only good for the someone who got the gold, not good for the comex. Better get yours while the gettin is good!

      • thats right, it means no longer available for delivery at this price range
        – gold comes back on the market when it is perceived as fairly or over valued

        zerohedge today also represents this as 542 oz of paper per phyzical oz (Lehman Bros went down at 35:1 leverage !)

        pass the hat around folks we only need $84 million to scrape the barrel and force settlement. Shanghai gold bourse, looks like you might need to bring forward your April phyz-only price setting schedule

        • All the metals promoters keep beating on this dead horse as if makes some difference. It doesn’t. For one to equate a trading/paper market to a pure physical market is misleading and just totally insane. They are two completely markets and the number of people who don’t understand this and have bought into this fear porn is staggering. Most have lost their ass and some their life’s savings. Entities who purchase large amounts of gold, silver, copper and aluminum do not use the COMEX. It is primarily used by two groups of entities: miners who hedge against their inventories so if price goes down, they will not receive a collateral call from their lender. This is the same as a wheat farmer who uses the futures wheat market to hedge against his harvest in case prices collapse and he loses everything, or the cotton farmer, the sugar cane growers, etc., etc., etc., Without these markets to hedge, farmers, miners, etc. would eventually go broke. The other participates in these markets are the speculators/ traders who want to be in this market but never want the associated delivery and storage cost. They take the money and run into the next trade. No entity who trades the crude futures market wants a tanker full of crude parked in his back yard although it would be an interesting conversation between the spouses and of course the neighbors. As I hope you can understand the contract to inventory ratios are meaning as it is a trading/paper/futures market and not a physical one. There is another very important reason why the COMEX and for that matter all US financial markets will not stop functioning as they have been deemed vital and are part of the National Security Apparatus. They fail, the US fails. This will not happen regardless of all the fear porn these metals promoters spout and the number of times they keep repeating it. Just take a look at the alternative media sites and it is all fear porn from a total economic collapse, to a dollar collapse, to a food train collapse,to a collapse of all banks and businesses, to an electricity and water collapse, etc., etc., etc.. This is all BS! As Europe and South America economies continue to slow, huge amount of capital are flowing into the dollar. They simply have no other place to park it. Are you really going to place billions if not trillions in an Italian banks? of course not! All this capital wants the markets to go down and go down hard and when they perceive them low enough, they are going to buy and they will buy on the cheap. This is the smart money and the dumb money is selling. As the world economy continues to slow as all commodities, the industrial demand for silver will also, (making up 70% of demand). No record amount of silver coin sales is going to change the overall change which is down. Folks that is just the facts and reality!

          • “As I hope you can understand the contract to inventory ratios are meaning as it is a trading/paper/futures market and not a physical one”.

            What they mean is increasing leverage for manipulation on gold, and silver, the most manipulated item listed on the COMEX. Unsustainable indefinitely.

            ” As Europe and South America economies continue to slow, huge amount of capital are flowing into the dollar”.

            That has cooled off some with the Fed raising interest rates and threatening more raises…and the dollar index topping since early December.

            “No record amount of silver coin sales is going to change the overall change which is down. Folks that is just the facts and reality!”

            Oh but it most certainly can. Industrial demand is down. But overall demand is up in silver. That too is unsustainable indefinitely.

            You have a lot of faith in the sustainability of the current financial system. If you have money to save or invest choose wisely. What has worked won’t be for long.

          • if you really beleive that the increasing bifurcation of phyz and paper markets is inconsequential and sustainable then i have a three word reply for you:
            London Gold Pool

  2. I know Scotia Bank was downgraded by Moody’s in the last day or so.

  3. Michael Penthouse | January 26, 2016 at 3:59 pm | Reply

    Let’s do this again and remove all gold for rampant speculation!

  4. This BIG!

    Something just “SNAPPED” at the COMEX.

    Deliverable gold at 73,979 ounces
    Yet, gold open interest sits at 40 MILLION ounces!!!

    This is a ratio of 542 paper gold claims for each 1 ounce of physical!!!

    • I’m sorry, that’s simply false. Open interest doesn’t make any claims on deliverable physical gold.

      Before pushing “ideas” like this at least read the brochure for how the system works.

      • JK – we all understand that 40 million ounces won’t be delivered but the paper claims on Gold as of right now are in fact 542 to every registered physical ounce of Gold.

        • No, the claim of 542:1 is WRONG. In fact it’s nonsensical.

          There’s 7.74m toz of eligible gold in COMEX-approved vaults. Eligible means that the gold is there but there is no warrant attached to it. A warrant is an electronic slipsheet which can be generated at any time.

          So, indeed if the need arises to physically deliver gold, the grand total available is 7,813,556 toz.

          The gold futures quotes clearly state that in the next delivery month, which is February, there are currently about 73,000 lots in open interest. That is 7,300,000 toz of gold.

          And at least 1/3 of that OI is spread. That means that one party has both long and short open positions. Which cancel each other out!

          So at best we are talking about an open interest of 4.86m toz against an available stack of 7.81m toz.

          What effing idiotic ratio do you keep coming up with people??? Seriously, have you all lost your minds? Why not compare the combined shoe sizes of the COMEX board of directors to the number of movies you saw last month and say that’s somehow relevant to the price setting mechanism for gold…

          Don’t believe everything that gets published online. Some of it is pure BS.

      • JK –

        Get who’s facts straight? Suggest yours.

        There are at present 11.4 million contracts “standing” on the comex for the next delivery month which is? You guessed it! February! Where is the physical coming from to satisfy demand? Granted, the crimex, ah, I mean comex, will pull all their old tricks of arm twisting the holders into rolling over, cash settle, or trade off their positions. Waiting to see.

  5. Hmmm. I’m not with enough experience to understand all of this, but, smart enough to know PAPER GOLD will eventually cause the most severe capitol loss ever recorded on record, not unlike junk bonds nobody wants, or, can sell. The ETF folks must REALLY be sweating now…I ONLY use SPROTT Physical for my small Paper Gold investments..95% is true physical in my own vaults.
    THE stupidest thing Politicians, and whomever controls the USA gold supply ever did was to let all this gold leave OUR Country for the East…a balance shift that will slam the door shut on COMEX, and, any leverage ability here to back Dollars with Gold…..otherwise, it’s(SGE) the best darn thing to happen, as far as playing Gold POKER…”Your Bluffing” will not work…these Synthetic Paper Gold(and Silver, I suppose) issuers are backed into a corner they cannot exit..only by FREEZING Accounts, can they get out for the hills, with thousands of angry stupified Investors in tow with shotguns…
    There is NO way Gold Miners can/will be able to fill the void left when the shelves are empty…the lag time will be the greatest Gold Bull run ever seen.

    • “THE stupidest thing Politicians, and whomever controls the USA gold supply ever did was to let all this gold leave OUR Country for the East…a balance shift that will slam the door shut on COMEX, and, any leverage ability here to back Dollars with Gold…”

      Somewhat related….
      http://plata.com.mx/mplata/articulos/articlesFilt.asp?fiidarticulo=281

      • https://youtu.be/5GaSVJbGi4A
        From what I understand most gold is/was under the NYFED and as we know the FED RESERVE aint Federal and has no reserves so…………what do THEY care if we run out of gold ?
        They own all the banks except in IRAN, N.KOREA, HUNGARY,ICELAND,and one or two others[?] so the only ones left holding the bag are Americans. Certainly not the Bush and Clinton Crime families or the other NEO-CON ZIONIST cabal who overthrew legit US Govt over 14 yrs ago! Treason pays well.

  6. Apparently the SGE has decided to no longer publishing their delivery volume stats …..

    http://www.gata.org/node/16128

    ……… hhhhhhhhmmmmmmmmmmmmmmm.

    • Heard that too, but didn’t have a link. Thanks! It seems a rude divorce is in the cards between the real world and the paper stuffing.

  7. And I thought they had recently moved a few tons into registered to reduce the leverage for the February slam down, a kind of “just in case we can’t force them to take cash” insurance. The only reason that kind of makes sense is they need the gold for something else otherwise it might as well languish in registered to be ignored by the paper traders.

    If there is any truth in this then the ability of the bullion banks to suppress the paper gold price must be curtailed somewhat and the hedge funds are not running into a trap this time around, or at least a smaller trap. Maybe gold is heading North at last?

  8. Not so fast Steve:

    1. I agree with Craig Hemke’s comments as below:

    http://www.tfmetalsreport.com/blog/7403/new-record-low-comex-gold-inventory

    2. The amounts are so small now that it takes almost nothing to have a major impact on the cover ratio. An addition of just 6 Tonnes to Registeredd would bring the ration down tobelow 100.

    So as Craig suggests, at least wait until the next report to see if JPM makes a warehouse adjustment.

    What is important though, is the fact that at present with 2 Tonnes of Registered Gold for physical delivery in the total Comex system, the SGE now delivers more physical Gold EVERY SINGLE DAY. WHich makes a mockery of the fact that the price of Gold is still set by Comex. It has to change…

    • QUOTE: “What is important though, is the fact that at present with 2 Tonnes of Registered Gold for physical delivery in the total Comex system, the SGE now delivers more physical Gold EVERY SINGLE DAY. WHich makes a mockery of the fact that the price of Gold is still set by Comex. It has to change…” UNQUOTE.

      Thats why (IMO) the SGE just stopped reporting their delivery volumes ….. in other words, the Chinese would like the price discovery charade at the COMEX to continue so they can keep vacuuming up the worlds Gold supply at artificially low prices.

      • Yes, I am with you on that. BUT, what then becomes of the Shanghai Gold Fix and Physical Furures contract in CNY? If they want these to be succesful as they wish to take over the pricing of Gold from the West (Which all evidence suggests they do), these items will indirectly put greater pressure on Comex? Perhaps they know that but want to obfuscate the picture in the interim?

        I also believe that the Chinese see Gold pricing in CNY as MORE of a Forex mechanism than as a mechanism to control Gold prices. If they allow the price of Gold to increase in CNY, Comex would have to follow in paper Gold prices because, if it didn’t the arbs would take delivery and sell in Shanghai and/or the value of the CNY would (translated through Gold) fall against the USD without any ‘intervention’ by Beijing. Either way, China wins. Very clever IMHO.

        • They are still a few months away …. so they’d rather keep vacuuming up as much mis-priced Bullion as possible …. the SGE is delivering over 50 times more physical than the COMEX – so of course the Chinese are currently enjoying the price benefits of COMEX Paper Gold; it keeps the acquisitions costs low for the Chinese.

          • Yes agreed. The Chinese don’t want to be accused of rocking the boat and want to take advantage of Western stupidity for as long as possible. After the Shanghai fix and physical futures excgange kicks in, especially because they will force Western banks to participate, they can hide behind “market forces”: whatever that means these days!

    • philipat,

      Yes, I read Turd’s piece on this subject. It will be interesting to see if JP Morgan does receive all the gold and what category it goes into. Regardless, to see these 3 vaults lose that much of the Registered is still an important factor.

      At some point, the COMEX will become a totally worthless exchange.

      steve

      • Steve,

        Yes agreed, especially after the new Shanghai physical futures market and fix in Yuan get started. This, together with the now widely recognised knowledge that SGE is delivering more in a week than Comex delivers in a year must have an impact on the credibility of Comex. But, remembering that the real manipulation is conducted by the CB/BIS/ESF complex, I wouldn’t expect them to surrender and retreat, especially when in reality only the BB’s are allowed to stand for delivery; and they aren’t about to piss on the Fed? There is no reason why, in a market that does not deliver (No pun intended), leverage (Cover ratio of Regsitered) could not rise to several thousand:1. So long as nobody stands for delivery (And they have that covered), it makes no difference to “Market sentiment” when “The market” IS the same players?

  9. gold must be revalued … somewhere around $20,000 oz … the sheep automatically laugh when they hear this …but it is the only way to deal with the debt …. and it can happen look at history i.e 1933 that will give you an example that the sky was always blue the whole time , even though we decided it wasn’t for a while

  10. Hypothetically –

    What if this is nothing more than the COMEX preparing to shift the pricing mechanism over to SGE in April?

    No registered = a reason to make the shift. Or maybe no need for registered as the shift makes the need for delivery moot.

    If either of these are true, then many with paper claims are going to get cashed out in March.

    • SGE gold fix will not change anything as all moves made by SGE during the last years.

      Total clearing by LME is fat greater than comex volumes and it is the comex which is the leading market, not the LME.

      Comex will remain the sole leading market while chinese oligarchy does not decide to bid up shanghai and/or comex as important spreads between both actions cannot live more than a few seconds or minutes.

      Until now, they are refusing any gold reevaluation. Without their wish gold will probably continue to plummet at least in USD term.

  11. This is an interesting change from years past and likely indicates something, but it’s not clear what that is. I doubt many people here could name even one company that gets their supplies by taking gold or silver delivery at the COMEX. Yet these same people scream that a delivery default will turn everything upside down. 🙂

    Mike

  12. Last year China alone delivered more physical Gold on its exchanges than the entire planet mined out of the ground during the entire year of 2015;

    https://youtu.be/FOXUQ5EwKl4?t=38m35s

    The Shanghai Gold Exchange alone delivered 52 times more physical Gold than the COMEX did during 2015 …. as someone said earlier; the SGE is making a Mockery of the COMEX price discovery process.

    • It was me. And, incidentally, to be clear your statement is correct but with the rider “World production of Gold excluding Russia and China” which never departs their respective shores. Exluding these two producers, the rest of the world produces around 2,400 Tonnes, so yes the SGE physical delievries were greater than this amount.

      However, remember also that the PBOC does NOT buy Officilal (Monetary) Gold through SGE because SGE operates entirely in CNY and PBOC wishes to recycle USD reserves. It buys Official Gold all over the world and this need NOT be reported by the exporting country because it is Monetary Gold, excluded from International reporting requirements.

      Nobody knows how much Official Gold Beijing purchases or holds but my point is that your atatement actually underestimates China’s total consumption of Gold because SGE is only a proxy for Chinese wholesale demand and EXCLUDES PBOC Official purchases.

  13. “Now, COMEX sits with a whopping 2.3 tons left of registered gold (73,000 ounces) coming into the February delivery month. As of tonight, there are still 114,219 Feb. contracts open which represents 11.4 million ounces!”

    http://news.goldseek.com/GoldSeek/1453907160.php

    I don’t know the commodities futures markets, but if this is wrong tell the author of the article.

  14. question for you folks!

    How come the Comex price in gold is rizing +0.44% at (1,121.2 $), and the spot gold is down 0.95% at (1,114.2˘$) at 15:40 EU time? Has this discrepancy ever happened before. And if can someone tell me the difference between Spot and Comex?

  15. Means nothing. It is abundantly clear that the paper gold traders manipulate the market up and down and sideways, not the physical. When the paper gold speculators exit the marketplace the price falls back to supply and demand fundamentals. When 400 tons of paper gold was dumped in 2013 the price crashed. Does it mean gold inventories anywhere on the planet changed significantly? American capitalist BS smoke and mirrors and distractions and disinformation creates market bubbles and then they are the ones to take-the-money-and-run for the exit doors first.

    • Anthony,

      Yes, in the short term, changes in physical inventories didn’t impact price. However, I believe the overall trend lower in Registered Gold Inventories does matter at some point. And I don’t see this a 5-10 year plan. More like over the next 2-3 years.

      steve

      • Steve,

        Both registered and eligible stacks are physically available. It doesn’t matter in which category is the gold reported. Why is this so hard to understand? Why do you need to republish BS from other websites, even though it is abundantly clear to anyone who has even a passing knowledge of how the COMEX delivery process work, that it is nonsense.

        Eligible can be converted into registered with a few strokes on a keyboard. Why is it so profoundly important to you that the registered stack is currently low. It’s low probably because they don’t anticipate any meaningful physical delivery in Jan and/or Feb. That’s it.

        Contracts get cancelled out (spreading) or are rolled over. Rarely is there delivery. That’s how a futures market works.

        • It is problematic and significant because the REASON gold is kept in the elligible category is because its owners dont want to sell AT THIS PRICE. The price has to rise for most of that inventory to go registered.
          And if the eligible holders get a whiff that gold price is anticipated to rise significantly, its a self feeding cycle as they still refuse to place it in registered even as the price is rising

          • following this, even if a lot of the eligible is owned by Comex itself, comex is massively incentivised to squeeze the life out of the registered inventory with supressed prices from rehypothecated contracts, and then sell the actual eligible inventory when the price suddenly catapults
            and if this is NOT the comex’s plan it should be because otherwise it will soon be INSOLVENT when 500 to 1 contracteed need to be settled when they lose faith in the game or call its bluff and scoop the pool

          • You don’t know who owns what in the registered (or eligible) category and neither do I. That’s not an argument, just another hopeless speculation pointing in the direction of a rising gold price. I like to cite facts as I did in my above comments, yet Steve never even replied, nor did he correct his glaring factual errors. Just as long as the ad and sales incomes come in rolling, nothing else matters.

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