For the week ending November 6, gold withdrawals from the SGE were 44.97 tonnes. This put the YTD total withdrawals at 2,210 tonnes. Gold withdrawals YTD from the SGE are running 29% higher than last year and 20% higher than 2013, which was a record year for withdrawals:
Smaugld.com has compiled an excellent summary of the gold withdrawal statistics on the SGE plus some data on Central Bank holdings globally. You can read his post here: China and Gold.
China’s “consumption” of gold this year is on track to exceed the total amount of gold produced this year by mines globally. India is on track to import close to 50% of world gold production this year. Russia adds to its Central Bank gold holdings every month. In June alone it added 800,000 ozs, over 23 tonnes.
On the other hand, paper manipulation of all of the markets by western Central Banks – specifically the S&P 500 and gold by the Federal Reserve – is starting to reach an insane extreme. Today was a prime example as the S&P 500 futures spent most of the overnight session starting Sunday evening down 8-12 points. Gold was up $12 most of the night.
As the U.S. stock market opened, gold began to get hit and the S&P 500 popped from down 8 into positive territory. This was after extremely negative economic and earnings reports were released. Then, as gold faded back to Friday’s closing levels, around 1:30 p.m. EST the S&P went parabolic, rising 30 points on absolutely no news or reported events that would have possibly triggered a sudden surge like this.
As it so happens, on a preliminary basis, it looks like 11,215 gold contracts were added to the Comex futures open interest tally. This is 1.12 million paper ounces, or 74x more paper gold than the amount of gold reported to be available for delivery on the Comex. The total paper gold to deliverable gold (as reported) is 290:1.
Given that the appetite for gold from the east exceeds the amount of gold produced to feed that appetite on a “hand-to-mouth” basis, we can only speculate as to the sources being tapped by the BIS/Fed/Bank of England/ECB to feed the gold consuming beast.
What I will say with 100% certainty is that if you want to own gold but do not have possession of it – or at least have it safekept with an extremely trustworthy custodian – you will probably never have a chance to hold that gold in your hand. It is gone and it if it’s not gone by now, it will be gone by the time you understand the reasons why it is gone.
The only question now in my mind is how far will the bullion banks have to stretch the paper game in order to keep the price contained and the interest from the hoi polloi in gold subdued. If the entities holding the long positions in Comex paper do not hold the paper short-sellers accountable, what’s to stop them from taking that 290:1 up to 500:1 if they have to?
The insane degree of intervention in the markets reflects sheer desperation by the manipulators to keep the wheels on the system. When the intervention fails, the reaction by the markets will be spectacular to watch.