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Largest delivery day on record at the COMEX.

solarion

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#2
Good. Drain them MFers of every last flake of AU dust.

Die Crimex...DIE!
 

ZZZZZ

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#3
Moar:

The Comex Has Big Problems

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-- Published: Friday, 29 May 2020 | Print | 2 Comments

By Dave Kranzler

An article from Bloomberg was published 2 days ago which alleged that “New York Gold Traders Drown in Glut…” The Comex is now reporting there’s 26 million ozs of gold in Comex vaults, 17 million of which is in the “eligible” account. This is up from 9 million total ozs at the end of March, 5.5 million of which was “eligible.”

I find it amusing that the mainstream media swallows the Comex data reports without fact-checking or insisting on an independent audit of the bars. Ronan Manly of Bullionstar published a research piece in which he dug up a letter from the CME to the CFTC which stated that the CME believes the deliverable supply of “eligible” is 50% of the reported number. That’s if we take the CME’s estimate prima facie.

The world was told 6 weeks ago that it was impossible to transport gold bars oversees and a scheme was rigged to make London gold (400 oz bars) available on a fractional basis to satisfy Comex deliveries at the option of the party taking delivery. But the bars were to
remain in London. Suddenly the Comex “found” several million ozs of gold in its warehouse stock report. Bars that are unaccounted for and supposedly sitting in London vaults.

In all likelihood, the 17 million ozs of gold added to Comex vaults is likely from double-counting bars in London. I know many of those reading this might find this to “conspiratorial,” but it’s been long acknowledged that the LBMA is running a fractional bullion system.

That said, assume the 26mm ozs of gold are real. Discount the 17mm “eligible” by the CME self-admitted discount factor of 50% and that leaves 17.5 million alleged gold ozs available for delivery. But the gold contract open interest is 510,000 contracts, or 51 million ozs of paper gold. In relation to 17 million ozs of gold that may be available for delivery, it’s highly misleading – and probably intentionally misleading – to call the supply of gold in NYC a “glut.”

Add to this deceptive Bloomberg article a report from Reuters that CME banks are pulling back from the Comex. To begin with, HSBC attributed its $200 million dollar hit from gold trading to its London operations. The article also claims that 400 tonnes of gold have been shipped to NYC despite the narrative in April that gold couldn’t be moved from London to NY. I surmise the “movement” of gold is digital-based. As Bill Murphy commented, “we were told there’s trouble getting gold to NY – now they say there’s too much…Don’t believe any of it – they are scared to death about something.”

There’s a big problem at the Comex and that’s why the bullion banks are pulling away from it. ScotiaMocatta is closing its precious metals operations and taking a loss to do it. Mocatta Bullion has been in operation since 1684 and was one of the largest operators on the Comex in gold and silver.

I’m not sure it’s even credible to say the bullion banks are pulling away from the Comex. The gold open interest was over 800,000 contracts (80 million ozs of gold) earlier this year. The banks have been working hard to reduce their open interest and short exposure – that much is true. But historically the open interest on the Comex for gold has ranged between 200,000 and 400,000 contracts. In that context how can a drop in o/i to 500k contracts be considered “pulling back?”

Since late August 2019, the activity on the Comex has been what many of us consider strange, if not engulfed with the scent of desperation. The fractional 400 oz gold contract and the two articles discussed above are a few examples out of many. Recall the CME introduced the “pledged gold” category back in October 2019. “Pledge gold” is just another from paper derivative gold. HSBC jumped on that designation immediately. We find out a few months later that HSBC had impaled itself on its gold trading and custodial activities and required the “pledge gold” designation in order to meet the collateral requirements as clearing member of the CME.

As with the fiat currency fractional banking monetary system, the bullion market in London and NYC has become a fractionalized system of derivatives and other forms of paper gold (leases, hypothecation, lending) backed by a tiny amount of real physical gold relative to the amount of paper claims. This fractional bullion system is crumbling at its core and the propagandist articles like the ones above being disseminated through the mainstream media are a reflection that something is seriously wrong at the Comex.

If you don’t have possession of the gold you think you own, you do not own it. The world will eventually understand why that assertion is true…

http://news.goldseek.com/GoldSeek/1590771230.php
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EO 11110

CENSORSHIP KILLS
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dont the vipers just buy out those standing for delivery? instead of getting your bar of gold at 1700 dollars an ounce, we'll give you 1900 and no bar delivery
 

Someone_else

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dont the vipers just buy out those standing for delivery? instead of getting your bar of gold at 1700 dollars an ounce, we'll give you 1900 and no bar delivery
I am sure you are correct. And if I were they buyer getting paid $1900 for my $1700 order, I would immediately do it again.
 

ZZZZZ

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#6
Even Moar.

"The Largest Ever Physical Transfer Of Gold"

by Tyler Durden
Sat, 05/30/2020 - 16:00
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Two months ago, when the market was in a state of near-total chaos as a result of a sudden collapse in global supply chains due to the hasty coronavirus lockdowns, one market that saw unprecedented turmoil was that of physical gold.

As we pointed out in late March, due to a sudden breakdown in physical gold supply as the world's top gold refiners, those located in the southern Swiss town of Ticino, namely Valcambi, Pamp and Argor-Heraeus, suddenly stopped producing gold, the result was a record divergence in the price of spot gold vs gold futures contracts...

... with gold futures decoupling and trading far above spot prices.


The resulting record divergence in gold futures vs spot (in some way analogous to what happened to the price of the prompt WTI contract in April, when the May WTI contract traded as low as ($40) as traders were willing to pay buyers to store oil in a world where there was suddenly no space for the physical commodity), unleashed a flood of physical gold into the US as a record scramble by traders rushing to take advantage of this arbitrage opportunity by shipping bullion to New York sparked what Bloomberg said "may be one of the largest ever physical transfers of the metal."
"The flows into New York are unprecedented," Allan Finn, the global commodities director at logistics and security provider Malca-Amit told Bloomberg as his company’s teams in New York have been working 24 hours a day to cope with unprecedented demand for physical gold while navigating lockdowns, flight disruptions and social distancing.

Since late March, no less than 550 tons of gold - worth $30 billion at today’s price and roughly equal to global mine output in the period - have been added to Comex warehouse stockpiles; hundreds of tons of that was imported. On its own that amount of gold would represent the 11th largest sovereign holding, larger than the ECB's official 504.8 tons of gold.



Traditionally, while tens of billions of dollars of gold change hands every day in financial markets, a much smaller amount tends to physically move between vaults in trading hubs like London, Zurich and New York. But that has not been the case in the past two months: it all started to change as the Covid-19 crisis affected the supply chain. As Bloomberg explains what we first highlighted two months ago:

"when planes were grounded and Swiss refineries closed in late March, traders were worried they wouldn’t be able to get gold to New York in time to deliver against futures contracts. That caused futures, which typically trade in lockstep with the London spot price, to soar to a premium of as much as $70 an ounce.​
That created an opportunity for enterprising traders: buy gold somewhere in the world at the spot price, sell futures, and benefit from the difference by shipping the metal to New York."​
The scale of the trade has been revealed in exchange reports, import and export data and comments from some of the leading precious metals shipping and vaulting companies. It all came to a head on Thursday, when traders declared their intent to deliver a record 2.8 million ounces of gold against the June Comex contract, the largest daily delivery notice in exchange data going back to 1994.


The bulk of this gold came from Switzerland, as Swiss gold exports to the US surged, reaching 111.7 tons in April, the highest on record. Already in March gold imports topped $3 billion, according to the Census Bureau, the highest in at least a decade.


To meet the unprecedented demand for physical gold, refineries as far away as Australia have ramped up output of kilobars - the form typically delivered on the Comex - to ship to New York.

For Brink’s Managing Director Mark Woolley, the spike in demand to ship gold to New York has been unlike anything he’s seen in 20 years in the market.

“The amount of metal that we’ve successfully moved into New York is pretty significant,” he said Thursday on a webinar hosted by the London Bullion Market Association. “It’s probably not far off the total amount of metal that’s been mined in this period.”
As discussed previously, the CME Group which owns Comex, responded to the unprecedented market dislocation and the sudden lack of physical gold in New York by introducing a new contract allowing the delivery of 400-ounce bars, the type traded in London. Still, “other changes need to be at least considered,” according to LBMA Chairman Paul Fisher.

Valcambi 400 oz "Good Delivery" Gold bar.


With investor demand for physical off the charts, the enormous movement of gold has been a blessing for logistics companies but also a curse: not only have passenger flights - on which shipments are typically transported - been grounded, but New York City, where many Comex warehouses are located (recall JPM's giant gold vault just happened to be located right next to the NY Fed's), has also been a hotspot for the virus.
To deal with flows, Loomis International U.K. opened up additional vault capacity. Malca-Amit considered using airports in Boston and Philadelphia, but hasn’t needed to yet, Finn said.​
That said, while large volumes and virus-related restrictions at vaults and airports caused some delivery delays, much of the spike in the premium for futures contracts in March - which left banks such as HSBC suffering hundreds of millions in losses - was driven by perception rather than reality, Finn said.

"My own personal opinion is that any assessment on the inability to get gold in was ill-informed at the time and was made on assumptions rather than fact," he said.

Still, the bonanza for precious metals shippers may last a while. As we pointed out last week, large deliveries have seen June Comex futures drop to a discount to spot prices this week, but later dated futures are still at a premium. In fact, according to BofA, in a world in which central banks are flooding markets will trillions in freshly printed fiat and faith in the monetary system is quietly shrinking one day at a time, the one asset the "smart money" wants - as it dumps stocks - is, you guessed it, gold.



In fact, a simple correlation between the flood in the global money supply and the price of gold suggests the yellow metal has about $1000 of upside.


Meanwhile, as investor interest in other precious metals picked up, futures for silver and platinum have also traded at premiums to spot: “The guys in New York have done a great job,” said Brian Hayward, head of Loomis International U.K.

"We’re seeing a lot of silver head that way right now" Hayward said in what may be very good news for fans of silver, which recently hit record lows against gold...


... a move which may very soon reverse violently.

https://www.zerohedge.com/commodities/largest-ever-physical-transfer-gold
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Peter52

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#7
As we pointed out in late March, due to a sudden breakdown in physical gold supply as the world's top gold refiners, those located in the southern Swiss town of Ticino, namely Valcambi, Pamp and Argor-Heraeus, suddenly stopped producing gold, the result was a record divergence in the price of spot gold vs gold futures contracts...
That's not true.
The USA imported almost 100 tons of gold from Switzerland in March and a record amount of 111 tons in April.

March divergence between gold spot and gold futures quotes was not caused by covid-19 and logistic problems.
It was a major sign of the gold price mechanics breaking down due to the loss of confidence of the market in the un-backed Comex futures.
Comex futures didn't start to be un-backed in March 2020.

This loss of confidence is still there and is causing gold futures volume to move from New York (Comex) to London (LME).
Gold Futures Trading Moving From Comex To LME

Most interestingly, the LME is owned by Chinese banks.
Currently the Chinese see the POG between 2200 and 2500 $.
I don’t see China pricing their liquid contract much under $2200 US Dollars. Bottom line, we see gold at $2200 to $2500 based upon that structure, and what’s coming down the pipe.
 

GOLDBRIX

God,Donald Trump,most in GIM2 I Trust. OTHERS-meh
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#8
More Investors taking Physical on Gold Contracts, Crazy Numbers COMEX could be in trouble:
NOTE: I do not know this site or these guys. I can not vouch for the credibility. DYODD
 

GOLDBRIX

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#9
Part II.