SILVER IN SLIGHT BACKWARDATION

COMEX Warehouse Stocks Mar 26, 2010

SILVER

ZERO ozs withdrawn from the dealer’s (registered) inventory
306,458 ozs withdrawn from the customer (eligible) inventory
Total dealer inventory 54.25 Mozs
Total customer inventory 61.54 Mozs
Combined Total 115.80 Mozs

GOLD

ZERO ozs withdrawn from the dealers (registered) category
ZERO ozs withdrawn from the customer (eligible) category
Total dealer inventory 2.01 Mozs
Total customer inventory 8.00 Mozs
Combined Total 10.02 Mozs

There was no movement of gold or silver into or out of the dealer inventory. There were 0.31 Mozs of silver withdrawn from the customer inventory.

There were 2 delivery notices issued in the MAR gold contract. The MAR gold contract total for the month is 718 notices or 71,800 ozs.

There were 11 delivery notices issued in the MAR silver contract. The total delivery notices for the month in silver stand at 4,088 or 20.4 Mozs.

Silver went into slight backwardation of 0.2 cents MAR/APR (16.894/16.892) while for MAR/MAY contracts it is 1.2 cents I contango. There is $0.1 of contango in gold MAR/APR and $1.2 of contango for MAR/JUN.

The open interest in the MAR gold contract reduced to 11 contracts, in silver it declined to 36 contracts.

The Open Interest in the APR gold contract is 125,193. This is very high when we are three days from first notice day. These contracts must be rolled or sold if they are not going to stand for delivery.
Cheers
Adrian

Dave from Denver…

backwardation alert

I just noticed this. Spot gold as per Kitco is trading about 60 cents above June gold and spot silver trading a couple cents above May silver. If this holds thru Sunday nite, we might see some serious upside fireworks next week. Especially since I just read that credit default swaps on US Govt bonds are trading wider than yields aaa-rated Euro-zone sovs. Means the market thinks the risk of default is greater for the US than for the euro. The article was in the Wall Street Journal.