COMEX Warehouse Stocks Aug 26, 2010

GOLD IN BACKWARDATION FOR SECOND DAY SILVER INVENTORY DRAIN CONTINUES

SILVER

ZERO ozs withdrawn from the dealer’s (registered) inventory
496,796 ozs withdrawn from the customer (eligible) inventory
Total dealer inventory 51.91 Mozs
Total customer inventory 58.99 Mozs
Combined Total 110.90 Mozs

GOLD

ZERO ozs withdrawn from the dealers (registered) category
19,824 ozs deposited in the customer (eligible) category
Total dealer inventory 2.58 Mozs
Total customer inventory 8.30 Mozs
Combined Total 10.88 Mozs

There were 20Kozs of gold deposited in the customer inventory. In silver 0.5 Mozs were withdrawn from the customer inventory. Furthermore there were 0.56 Mozs of silver transferred from the customer inventory to the dealer inventory by way of an internal “adjustment”.

There were 185 delivery notices issued in the AUG gold contract. The AUG gold delivery notice total for the month is 7,038 notices or 703,800 ozs. JPM issued 15 and stopped 0, HSBC issued none and stopped 178, BNS issued 170 and stopped none and GS issued none and stopped 5.

There were 0 delivery notices issued in the AUG silver contract. The total delivery notices for the month in silver stand at 22 or 110,000 ozs.

The Open Interest in the AUG gold contract stands at 360 contracts. Together with the delivery notices issued the potential total amount standing for delivery in AUG could be 740Kozs or 28% of the dealer inventory.

There are still a massive 21,466 contracts of open interest in SEP silver or 107 Mozs; this is very high for this time of the month. Today’s action is not going to dissuade anyone from standing for delivery! The Cartel is in deep trouble.

Yesterday gold closed in backwardation AUG/SEP of 40 cents ($1239.5/$1239.1). This is very important because gold has only been in backwardation a handful of times in the history of the Comex. THEN today gold closed again in backwardation but this time even larger of $1.20 ($1235.4/$1234.2). This is not casual happenstance. This is a very important indication of physical market shortage especially in the context of a total Waterloo defeat of the cartel in the option expiry today.
Cheers
Adrian