It looks like something big may be happening on the Comex gold exchange soon. After several months of little change in gold inventories, the Registered Gold inventories on the Comex plummeted 73% – in a single trading day.
A stunning 201,345 ounces of the total 275,325 ounces of Registered Gold was transferred to the Eligible Category on on January 26.
Here’s the report from SRSrocco Report:
“… 21,200 oz was transferred from Brinks Registered Inventories, 84,881 transferred from HSBC and 95,269 from Scotia Mocatta. There are only 73,980 oz of Registered Gold remaining in the Comex inventories.
“This is the lowest level of Registered Gold inventories on the Comex for more than 20 years. There are now only 2.3 metric tons of Registered Gold remaining at the Comex.
“This has to be one of the most surprising movements of Comex Registered Gold inventories ever. It will be interesting to see what happens over the next few months as the broader stock markets continue to crash while precious metal physical investment surges. It seems to me that this huge decline of Registered Gold Inventories suggests that the end of the Comex Exchange as a price setting mechanism is now even closer at hand.”
This latest update begs the obvious question: How can a precious metals exchange set the global price for gold when it’s rapidly running out of the physical metal?
It looks like we may not have to wait very long to discover the answer.
Do you agree with this report that the end of the Comex exchange as a price setting mechanism is now closer at hand than ever?