Tag: COMEX

The rebound for gold and silver off the lows associated with the recent Non-Farm Payrolls and FOMC continued with gold taking and holding 1280 and silver putting a stick in the ground above 16.50. I lightened up on a largish short term position I had put on at the time. I did circle these instances of short term lows on the chart as you may recall.
As noted with the publication of the new Comex options calendars yesterday, today was an options expiration for precious metals.
February is the new active month for gold contracts. March is the next active contract for silver.
Although it still matters for pricing, the Comex listed warehouse complex is starting to resemble a museum. Very little gold flows in or out of its approved warehouses, excepting for those in Hong Kong which is by far their largest source of physical gold movement.
Silver is a bit different, because CNT is an active wholesaler of physical silver for the Mint among others, and it uses the Comex to warehouse its inventory flows. But I just don’t see the shortage of physical silver in the same light as gold. It is easy to see that JPM is sitting on a massive hoard which is interesting.
Gold is a funny market now. In some ways it reminds me of a ponzi scheme in which a relatively small amount of free float physical gold is being leveraged over a very large and growing number of commitments.

This post was published at Jesses Crossroads Cafe on 26 DECEMBER 2017.