The big gold squeeze

Some charts don’t need many words… Below is the Comex registered inventory as at 15 January.  Almost by definition Comex (futures) trades are speculative.  We have seen inventories drop from around 3,000,000 oz to just 370,000 oz in 2013.  ETFs saw about 30m oz leave.  Where do you think all that gold went?  To strong hands like China, India, Eastern central banks, and indeed the likes of our customers.  370,000 oz is about 11.5 tonne.  China imported over 100 times that last year alone!  These strong hands buy physical gold, not paper futures or ETF’s and they don’t give it up until the price is extremely compelling.  That price could come when someone asks for something that is simply not there.  This chart shows how close that is and many commentators think it will be soon.