Refer to my previous posts on this topic for more commentary and definitions.
During February, JPM, Deutsche Bank, and Bank of Nova Scotia issued 46%, 12%, and 28% of all settlements. HSBC and Barclays stopped or taken ownership of 59% and 29% of all settlements.
Month to date those who were short Feb gold futures contracts have been able to settle almost all open interest. In order to cover, 197,692 ounces of gold were added to registered COMEX inventory during February, which increased registered inventory to 637,592 ounces. About 75% of the increase or 151,019 ounces of gold was added to eligible inventory and is new to the COMEX system http://harveyorgan.blogspot.com/2014/02/feb-272014gld-and-slv-hold-constantgold.html The rest of the increase came out of eligible inventory. In summary, 637,592 ounces were needed in inventory to cover 592,000 ounces of open interest on first notice day. Gold prices are up 7% month to date, which helped secure the additional gold for COMEX inventory and settlement.
The shorts were able to cover. Although this month cost them a bit; 7% price increase. It has been almost a year since gold appreciated during a major delivery month. Amazing how the shorts were able to settle 592,000 ounces of contracts from first notice day with only 439,900 ounces in registered inventory at that time. As a long, I would have (and am) held out for much more than 7%.
March is a very small delivery month. Countdown to the big delivery month of April begins!
"5,920 Feb-2014 contracts filed for delivery on first notice day January 31st. 3,832 contracts settled by delivery and the remaining 2,088 contracts were 'lost' to the process and settled by other means."
ReplyDeleteFiling for delivery is a made up term. You can be long and stand for delivery, or you can be short and issue a delivery notice. Also commonly used are "stop" which refers to the long actually taking delivery, and "tender" which refers to the short giving up ownership of physical.
The contracts that were standing on day one did not file, they were just long and in position to take delivery. They have the option not to sell, and therefore could have all been settled by delivery. For whatever reason they chose to sell their short position (and hence fall into your 'lost' category.
Using made up terms is likely why harveys readership has dropped precipitously, at best the terms are confusing, at worst they are intentionially misleading. Seeing how he has not changed I tend to belive he falls to the latter, he gets to be supreme and his readers remained confused and look to him for explanation. Here's hoping you do better!
I have a question that is slightly off-topic: is it possible to invest in precious metals through a 401K, but is also trustworthy? I am thinking about Sprott Asset Management.
ReplyDeleteOops. Never mind. I went back and was checking out the portfauxlio and I saw PSLV and PHYS and some other things. No need to respond. I know that you are getting quite old.
ReplyDeleteEpic Research says that Gold edged higher as equities tumbled but the metal continued to struggle near lows due to weak physical demand.
ReplyDeleteSilver was up 0.3% at $18.52, off a 5-month high of $18.599 earlier in this session. capitalstars
ReplyDelete