price rise, a more fundamental reason, and less reported upon, is likely
to be the continuing decline of COMEX gold inventories.
Bullion buyers internationally and particularly in Asia are taking
delivery of physical gold which is draining inventories on the COMEX.
COMEX inventories fell another 1.5% yesterday (see table).
Brinks has seen a massive decline in its gold inventories in recent
days. The huge decline in Brinks inventories is being seen soon after a
similar decline in JP Morgan’s gold inventories.
Brinks inventories have fallen from 570,000 ounces on July 3rd to
257,000 ounces today which is a drop of 313,000 ounces - a drop of 55%
in just one week.
The entire inventories on the COMEX, of bullion banks and
depositories is now just 7.096 million ounces and is worth just $9.1
billion at today’s prices. This is a very small amount vis á vis the
amount of money in stocks, bonds, cash and other assets today throughout
the world and in Asia where much of the gold seems to be flowing East.
This has all the hallmarks of a ‘run’ on the COMEX and needs to be
monitored. A default on the COMEX would see the price of physical gold
rise substantially and potentially in a very short period of time..."
at http://www.zerohedge.com/contributed/2013-07-11/gold-surges-50-or-33-brinks-sees-55-decline-gold-inventories-week
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