COMEX Gold Stocks at Dangerous Lows

Summary:  An article recently featured at Seeking Alpha discusses an emerging trend that may prove bullish for gold. The trend has to do with gold stocks in COMEX warehouses available for delivery. COMEX has two different types of gold – registered and eligible. Registered stocks can be used to deliver on a futures contract, whereas eligible is gold being held for banks and private parties and not eligible. A high ratio of registered gold means there are many more owners per ounce. COMEX gold inventories continue declining – according to the author’s most recent numbers, the current ratio stands at 57, which is up from 50.62 a month ago. As far as investors, this means if we take COMEX’s current “registered” inventory of around 665,000 ounces and multiply it by the current gold price, we’d land somewhere in the neighborhood of $885 million. This means the typical hedge fund could easily buy all of the gold available on the registered COMEX market. Read a more extensive summary here, or the full article here.