Today was first notice day for February delivery in gold, and as usual, we had a waterfall raid in gold to $1655. The cartel MO has long been to raid gold and silver on options expiration as well as first notice day, to help prevent longs from standing for delivery.
While the the cartel raid was successful based on the paper futures price, it was an epic fail based on physical gold delivery requests, as a monumental 1.391 million ounces, or 43.26 tonnes of gold stood for delivery today on first notice day.
To put this number in perspective, December delivery in gold, which is traditionally the largest delivery month of the year, saw less than 10 tonnes stand for delivery.
Has the Buba’s gold repatriation request ignited a full-fledged run on the cartel gold bank?
Today we had first day notice and what a surprise. We had a massive 1,391,000 million oz of gold stand or 43.26 tonnes of gold. I have been following the gold and silver comex data from the mid 1970’s and I have never seen anything like this before. You will recall that this past December we had only 10 tonnes of gold delivered upon. Generally December is the biggest delivery month of the year. The comex is not a physical market. If one needs physical they generally head over to London at the LBMA and purchase the metal over there. The high amounts standing may mean that our gentlemen from Eastern persuasion are having difficulty finding metal and thus they are heading over to our neck of the woods to obtain this very valuable commodity.
The total comex gold open interest rose 425 contracts to settle at 431,137 from Wednesday’s level of 430,712. We now have the number of contracts for gold standing as today is first day notice. The total number of contracts standing for gold is a whopping 13,910 contracts or 1,310,900 oz of gold which translates to 43.26 tonnes of gold. I am sure that Blythe will be one busy girl these next few weeks as she tries to entice some longs standing to accept paper instead of metal. The next non active contract month is March and here the OI rose from 1087 up to 1211 for a gain of 124 contracts. The estimated volume today at the gold comex was fair at 161,916. The confirmed volume yesterday was quite good at 245,696.
In all the years that I have covered the comex I have never seen such a high amount of gold standing. The comex is a paper market and too see such a high level of gold standing seems to suggest that the gold investor boys (and sovereigns) are crossing the pond because physical gold is scarce. London must be out or close to it.