When The World’s Largest Gold Vault Gets Cleaned Out

Let’s look at some charts below. What’s going on? What do these graphs mean?

You’ll see ten years’ worth of graphical data concerning gold trades on COMEX, which is an exchange that offers warehouse services for clients who trade metals. That is, COMEX stores gold at designated sites, on behalf of its clients. When you read about “gold trading,” this is the gold that gets traded.

Let’s back up for a moment. COMEX holds metal on deposit to settle futures contracts, to back-up buy/sell deals and to secure transfers between parties. On occasion, gold gets withdrawn from COMEX warehouses. (Too many occasions in recent months, as we’ll see below.)

As part of its “exchange” service, COMEX issues daily reports that detail its stock of gold, silver, copper, platinum, palladium and more. That is, COMEX states exactly how much metal is stored in its warehouses, and how much metal is available for trades.

In general, the idea behind daily COMEX reports is for traders to know how much metal is there to support futures contracts. The data also give insight into what large gold (and other metal) owners are doing in terms of trades and settlements, as well as how much metal is being drawn out for delivery. So far, so good.

Read More: dailyreckoning.com/when-the-worlds-largest-gold-vault-gets-cleaned-out/