COMEX Warehouse Stocks Jan 14, 2011

SILVER INVENTORY DRAWDOWN CONTINUES

SILVER

149 ozs withdrawn from the dealer’s (registered) inventory
250,092 ozs withdrawn from the customer (eligible) inventory
Total dealer inventory 45.22 Mozs
Total customer inventory 59.18 Mozs
Combined Total 104.40 Mozs

GOLD

ZERO ozs withdrawn from the dealers (registered) category
ZERO ozs withdrawn from the customer (eligible) category
Total dealer inventory 3.07 Mozs
Total customer inventory 8.58 Mozs
Combined Total 11.66 Mozs

There were no movements at all in gold (do we believe that?). There were 149 ozs of silver withdrawn from the dealers’ inventory (you have to be kidding me!!). 0.25 Mozs of silver were withdrawn from the customer inventory while 0.18 Mozs were transferred from the customer inventory to the dealer inventory by way of an internal "adjustment".

There were 113 delivery notices issued in the JAN gold contract. The JAN gold delivery notice total for the month is 593 notices or 59,300 ozs.

There were 28 delivery notice issued in the JAN silver contract. The JAN silver delivery notice total for the month is 431 or 2.2 Mozs.

The open interest in JAN gold is 50 contracts and in JAN silver it is 34 contracts. There clearly will be no delivery concerns for this month. The next big delivery threats for the cartel are FEB gold and MAR silver. The huge OI in FEB gold decreased by 13,026 contracts to 277,338 contracts. The silver MAR open interest only decreased by 683 contracts to 73,626 contracts. Silver OI for MAR is showing no signs of backing off and this is despite the cartel trying very hard because the volume traded at 78,266 contracts exceeded the open interest!. The open interest in MAR represents 368 million ozs of silver. The gold total OI increased by 2,638 contracts and in silver it decreased by 1,178 contracts. The lack of liquidation is a real problem for the cartel!
Cheers
Adrian