Jim’s Mailbox

Posted at 12:06 PM (CST) by & filed under Jim's Mailbox.


I have been following the December Deliveries and posted the following on a Precious metals message board. I thought you might appreciate the potential situation right now on the COMEX that I see…

CIGA Liambert


Still 597K ounces outstanding in position to issue delivery (Tuesday Final).

109K ounces have stood for delivery so far (Including another 35K today), JP Morgan has been the long side on 90% of these ounces, so they are acquiring even more gold.

Outstanding registered gold in the warehouses increased from 590K to 655K. This increase is essential because, as discussed in another post, there wasn’t enough registered ounces to actually assign all the potential deliveries in December.

The shorts at the COMEX have or had a problem for sure. The problem is this – there is not enough registered gold to cover all the warrant transfers. That means shorts must be scrambling to find registered gold, or to find eligible gold they can transfer into register gold. IMO, this is indicated by how few of the outstanding futures have actually been issued for delivery after 3 days into the delivery period (~20%).

This problem does not mean that COMEX has no gold left, it means that there is so little left that it is starting to impact the basic issue for delivery process of COMEX during their biggest month. The cupboard is pretty bare of registered gold to satisfy the December party that is going on. Now, AFTER the issue for deliveries are executed (109K so far) and all the DEC warrants are transferred to the longs, IF these longs start pulling the gold out of the registered category, and the registered ounces drop way down, then I think we can say COMEX is in actual trouble – potentially having this problem again and again for ANY delivery month, not just the big December delivery month. But that is a big IF.

Dear CIGAs,

It’s time to fish. It’s time to buy – get your fishing lines ready…

Smart money is accumulating.

Best Regards,
CIGA Luis Ahlborn Sequira