Comex Short and Long Gold and Silver Positions At End March 2015
Silver short positions increase 33% from November 2014.
Gold short positions remain constant since late last year.
Silver Short Positions on Comex Continue to Rise
The last time we visited COMEX short and long gold and silver positions we noted that while short positions were larger than long positions, both short and long gold and silver positions trade on COMEX in amounts that massively exceed what is physically available for delivery.
This does not deter the largest traders on COMEX (long and short) all of whom are bullion banks specializing in this type of trading.
Much of the trading on COMEX is between banks who trade gold and silver they don’t have to banks who buy gold and silver they don’t want.
COMEX vs. The Shanghai Gold Exchange
Comex is a paper market. In contrast, the Shanghai Gold Exchange is a physical bullion market.
COMEX delivers little gold in the course of a year compared to the Shanghai Gold Exchange.
Since we last updated the COMEX long and short positions in November 2014, the eight largest traders increased their silver short positions and while maintaining the size of their long positions. The eight largest traders have kept their short gold positions about the same, while decreasing their gold long positions.
Short Gold and Silver Positions on COMEX
2015 1.25 Ounce Canadian Silver Bison Coin from the Royal Canadian Mint Exclusive to JM Bullion
Days of World Production Required To Cover Short Contracts – March 31, 2015
The number of days of global silver production to cover COMEX short positions has increased sharply in 2015 from about 120 days global silver mining production to about 160 days. Gold short positions remained about the same at about 55 days of global gold mining production.
Days of World Production Required To Cover Short Contracts – November 11, 2014
The silver short positions of the eight largest traders in November required about 120 days of global silver mining production. The gold short positions required about 55 days of global gold mining production.
Dollar Value of Short Contracts March 31, 2015
The dollar amount required to cover short positions on COMEX is massively out of proportion of the amount of physical gold and silver available to deliver.
Long Gold and Silver Positions on COMEX
Fractional American Gold Eagles in 1/10, 1/4 and 1/2 oz Sizes for Smaller Budgets
Days of World Production Required To Cover Long Contract Deliveries – March 31,2015
The number of days of global gold and silver mining production required to cover COMEX short positions of the eight largest traders was about 50 and 100 days, respectively as of March 31, 2015.
Days of World Production Required To Cover Long Contract Deliveries – November 11, 2014
On November 11, 2014, the long positions of the eight largest traders would have required about 55 days global gold mining production and about 100 days of global silver mining production to satisfy delivery requirements.
Dollar Value of Long Contracts March 31, 2015
Click here to see the days of world production required to cover long contract delivery as of October 28, 2014.
The Shanghai Gold Exchange
As noted above, unlike COMEX, the Shanghai Gold Exchange (SGE) is a market that specializes in physical bullion trading.
Here is a chart showing the amount of physical gold actually delivered pursuant to trading on the Shanghai Gold Exchange.
For the week ended April 3, 2014, the SGE reported delivering 40.003 tons of gold and over 8,500 tons since 2009.
The Shanghai Gold Exchange delivered 40 tons of gold in the week ended April 3, 2015.
Currently, COMEX futures trading impacts the prices of gold and silver more than the actual supply and demand dynamics of gold or silver or any trading on the Shanghai Gold Exchange.
COMEX Default or Chinese Gold Revaluation?
The prices of gold and silver will finally adjust, most likely not because of a long predicted Harvey Organ style Comex failure of delivery default (you can’t beat the casino at the casino), but when China decides that it has enough gold to declare a new higher price.
The country with the most gold has an interest in valuing its gold at the highest possible price.
The United States revalued gold 69% higher in 1934 from $20.67 an ounce to $35 after it confiscated its citizens gold leaving it with the largest gold holdings in the world.
Will China soon do the same?