Comex Gold Inventories Collapse By Largest Amount Ever On Record

ksammut

Comex Gold Inventories Collapse By Largest Amount Ever On Record

derryb

metal continues to flow from west to east at bargain prices. Only way to prevent it is to let prices rise. Ben, wake up.

ksammut

<< <i>metal continues to flow from west to east at bargain prices. Only way to prevent it is to let prices rise. Ben, wake up. >>



You are right on the mark.

cohodk

eligible stocks were on the continual increase throughout the bull market. Now that trend has changed.”


Cant get any more blunt than that.

CaptHenway

What does it mean that JPM's stock was at zero just over two years ago, and is now returning to that point? Did they simply park it in COMEX for 24 months, and might they now it taking it out according to some plan?

cohodk

<< <i>What does it mean that JPM's stock was at zero just over two years ago, and is now returning to that point? Did they simply park it in COMEX for 24 months, and might they now it taking it out according to some plan? >>



Maybe they helped to run prices higher, rather than supress prices as many like to think. They like to fleece the sheeple right, so why not fleece them when they are scared, when QE rhetoric is high, when they are emotional leading up to an election. Nah, JPM wouldnt do something like that.

piecesofme

Maybe they helped to run prices higher, rather than supress prices as many like to think. They like to fleece the sheeple right, so why not fleece them when they are scared, when QE rhetoric is high, when they are emotional leading up to an election. Nah, JPM wouldnt do something like that

Hindsight is 20/20, although I will give you credit for sticking to the non-manipulation side of the story...when this very well may be what happened, but I'm still not convinced.

jmski52

cohodk, are you saying that shrinking gold inventories are related to the gold price? That's all you really think?

It's not being destroyed, i.e. - it's going somewhere.

cohodk

<< <i>

It's not being destroyed, i.e. - it's going somewhere. >>



So what if it is? Let's say you have all the gold, then you sell it all to me. What changed?

cohodk

<< <i>cohodk, are you saying that shrinking gold inventories are related to the gold price? That's all you really think?

It's not being destroyed, i.e. - it's going somewhere. >>



Or let's try this. The rising inventories corrolated to higher prices. So to increase inventories, where did it come from in the first place?

roadrunner

Central banks leased the gold to bullion banks over the past 15-20 years. Probably on the order of 10,000-15,000 tonnes.

Bullion banks sold the gold into the markets to play various carry trades. They still technically "owe" that gold to the CB's.

The gold has moved from Western CB's to Eastern CB's. Why does it matter where the gold is?

Would make any difference in today's financial/monetary world if the US had 1,000 tonnes of gold inventory while China had 8,000 tonnes?

If it doesn't matter which CB holds the gold, why don't all the western CB's just dump their depreciating gold assets and get them into producing assets like stocks, bonds, RE, derivatives?

Oops, nevermind.....they already learned that lesson from 1999-2011.

derryb

<< <i>Why does it matter where the gold is? Would make any difference in today's financial/monetary world if the US had 1,000 tonnes of gold inventory while China had 8,000 tonnes? >>


It appears to matter to the central banks who have recently been buying record amounts. They obviously know what many, but not all, of us know - gold is real money.

Central banks know that their gold will outlive their fiat currency. History has confirmed this numerous times. The more agressive the CBs become at buying gold, the more we realize that the fiat is dying.

It was announced today that Cyprus will be selling 400 million euro of its gold to finance part of its bailout. What are the odds that a central bank ends up with it?

CaptHenway

So, is it the leased gold coming back out of Comex so that it can be returned to the Central Banks?

Does anybody know, or is it all just guesswork?

jmski52

It's not being destroyed, i.e. - it's going somewhere. >>

So what if it is? Let's say you have all the gold, then you sell it all to me. What changed?

The Balance of Trade changed, years ago. And now they don't want more dollars (or US Treasuries). I've been trying to tell you.........

jmski52

Or let's try this. The rising inventories corrolated to higher prices. So to increase inventories, where did it come from in the first place?

Let's try this. Rising inventories were the result of mining, and the incentive to increase inventories was a continuing massive devaluation in the Dollar. It came from whoever was willing to sell it and needed the Dollars to transact some current business or to balance some ongoing imbalances.

cohodk

Would make any difference in today's financial/monetary world if the US had 1,000 tonnes of gold inventory while China had 8,000 tonnes? If it doesn't matter which CB holds the gold, why don't all the western CB's just dump their depreciating gold assets and get them into producing assets like stocks, bonds, RE, derivatives?


This is the basis of our differing opinions. My thought is that even if the USA had no gold holdings at all, then the USA would still be the worlds dominant superpower. The gold does absolutely nothing to enhance the stature of the USA.

Your question about selling gold and putting it into derivatives is akin to selling the Grand Canyon and buying derivative. Why should the USA sell? It doesnt need to trade it for any "promises". It is just an inanimate thing that some people view as the ultimate in barter.

jmski52

It is just an inanimate thing that some people view as the ultimate in barter.

I should add more context,

It is just an inanimate thing that some people view as the ultimate in barter (when the government destroys it's own currency due to overspending, overwhelming debt and gross mismanagement).