DEC 4/STRONG RALLY FOR GOLD AND SILVER TODAY AS THE COMMERCIALS ARE CLOSE TO NET LONG AT THE COMEX/SLV HAS A HUGE ADDITION OF 2.21 MILLION OZ OF SILVER/DRAGHI CORRECTS HIS POLICY ERROR OF YESTERD…

Jon Gold, Market Commentary, Precious Metals, Silver

Gold: $1083.30 up $22.00 (comex closing time)
Silver $14.50 up 45 cents
In the access market 5:15 pm
Gold $1086.50
Silver: $14.55
At the gold comex today, we had an extremely poor delivery day, registering 4 notices for 400 ounces. And this is the biggest delivery month of the year for gold? Silver saw 29 notices for 145,000 oz.
Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 200.52 tonnes for a loss of 102 tonnes over that period.
In silver, the open interest fell by smallish 419 contracts despite the fact that silver was up 7 cents with respect to yesterday’s trading. Generally we are witnessing a massive OI contraction once we approach the first few days of an active delivery month and they did not disappoint us with first day notice results. I promised you that we should start to see the OI in silver start to rise from this level but today we had a tiny setback. The total silver OI now rests at 164,446 contracts In ounces, the OI is still represented by .822 billion oz or 117% of annual global silver production (ex Russia ex China).
In silver we had 29 notices served upon for 145,000 oz.
In gold, the total comex gold OI fell by a large 3802 contracts as the OI fell to 394,847 contracts despite the fact that gold was up by $7.50 with respect to yesterday’s trading. Yesterday it stated this:’ It sure looks like the commercials were buying and the oblivious specs were the shorters.’ I guess the specs started to cover today.
We had no change in gold inventory at the GLD, / thus the inventory rests tonight at 638.80 tonnes. The appetite for gold coming from China is depleting not only gold from the LBMA and GLD but also the comex is bleeding gold. Our 670 tonnes of rock bottom inventory in GLD gold has been broken. It looks to me that China has taken the last amounts of physical gold from the GLD. I guess the only place left for China to receive physical gold, after they deplete the GLD will be the FRBNY and the comex. In silver, we had a huge deposit of 2.287 million oz into SLV/Inventory rests at 321.507 million oz
First, here is an outline of what will be discussed tonight:

This post was published at Harvey Organ Blog on December 4, 2015.