Let me stipulate up front that when it comes to the global gold market, the Comex has actual gold flows that are so meager compared to the amount of trading which occurs on paper that I have described it as The Bucket Shop.
As of Wednesday, only 171,613 ounces (5.13 tonnes) were ‘up for delivery.’ In a global market where the daily deliveries are measured in metric tonnes, that is a very small amount.
In terms of overall active Comex contracts, that represents a paper to physical leverage of roughly 263 to 1, compared to a historic trend of about 24:1.
And as I looked things over, I was struck by the fact that of those meager ounces available, 101,312 (3.2 tonnes) were from the vaults of Nova Scotia, or roughly 60% of the total.
That struck a chord in my memory, so I looked over the list of deliveries for the month of October.
Of the pathetically small amount of 240 contracts, or 24,000 ounces (.75 tonnes) delivered in the entire month, 17,600 have come from the ‘house account’ at Nova Scotia.
And the ‘takers’ of those few ounces have been the ‘house accounts’ at JP Morgan and HSBC.
So what I am trying to prove with all this? Nothing. I am merely showing an interesting trend change that has gone largely overlooked, except in some notable exceptions of the ‘smart money.’
And I am documenting some facts for those who have a mind to see them, and to establish a record that people can refer to when these jokers blow up yet another market through their reckless obsession with gambling large.
It shows that in a world of global gold flows, very little is moving in the Comex warehouses, and the little that is changing hands seems to be moving between the houses of three of the big bullion banks.
The big action in the precious metal bullion markets is in Asia.
And gold and silver are steadily flowing from West to East.
This is a trend, and it has significance to those who are willing to see it.
