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Albert Sung is the author of the Katchum Macro-Economic Blog, monitoring breaking economic news from a day to day basis. He started investing in 2008 because of the economic crisis and holds a masters degree in chemical engineering. Previously, he worked several years as a process engineer at... More
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  • Gold Tightness Has Now Translated To Silver Tightness (COMEX Update) 2 comments
    Mar 10, 2013 11:06 AM | about stocks: GLD, SLV

    I have a small warning here for the COMEX stock.

    I predicted that the total gold stock would come down here. That's because I saw a very high surge in registered gold from J.P. Morgan's vault. And several months later the total gold stock hit new lows (Chart 1).

    There is a tight gold market right now, as we see lease rates go above 0%. GOFO rates are still at record lows and premiums are highest ever. APMEX premium on silver coins just went to the highest level on Friday, namely 18%.

    (click to enlarge)

    Chart 1: COMEX gold

    A new thing has happened now in the silver COMEX stock. For the first time this year, we see the eligible silver stock go down. I also see that the registered silver went up, probably the same that has happened with gold. So I expect that total silver will now start to go down and we will see tightness in the silver market. We also see that the commercial shorts have finally covered their shorts.

    (click to enlarge)

    Chart 2: COMEX silver

    The future is again bright for precious metals...

    Disclosure: I am long AGQ.

    Stocks: GLD, SLV
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  • The_Hammer
    , contributor
    Comments (5150) | Send Message
    << For the first time ever, we see the eligible silver stock go down.>>


    can u explain the significance of this? First time ever is a big deal.
    10 Mar 2013, 12:05 PM Reply Like
  • Katchum
    , contributor
    Comments (615) | Send Message
    Author’s reply » Maybe I should rephrase to: "First time this year". I like to exagerrate, if you hadn't noticed yet.
    10 Mar 2013, 12:07 PM Reply Like
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