Registered Gold Hits All Time Low At COMEX

Dec. 20, 2013 3:58 PM ETGLD2 Comments
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Contrarian, Arbitrage, Commodities, Gold & Precious Metals

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Albert Sung is the author of Correlation Economics, monitoring breaking economic news on 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 Ashland, a competitor of Dow Chemical. Today, he works as a regulatory compliance consultant at J&J, but his real passion will stay in macro-economics. His experience in the chemical and pharmaceutical industry allows him to monitor the economy from a process engineering standpoint, analyzing macro-economic charts, correlations and trends.

You know what is very interesting? The registered gold at the COMEX hit a fresh new low. In just 1 day, the COMEX lost 20% of its total physical gold holdings.

We are now at a point that the COMEX could default instantly!

Eligible to registered gold leverage is now 15, a jump from 11 to 15, just in one day. You tell me if this is going to be sustainable.

If we look at open interest, we have 385432 or 38543200 ounces of gold against 490126 ounces of registered gold at the COMEX. That's a leverage of 38543200/490126 = 79. Up from 67 a month ago.

On the premium side we still see record silver premiums, both at APMEX and Shanghai:

And now even in gold. Here we go Arbitrage Opportunity, you can bet the GLD gets raided now until all the gold at the GLD ETF is gone.

Indeed, the GLD ETF is being raided again.

And by the way, the GLD outflows mean nothing, when the Chinese buy an ever increasing amount of gold at the same time.

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