August 7, 2012
I was going to post this into the previous note but then decided that it needed it’s own thread.
The Gold Comex is dying. As we speculated late last year (http://www.tfmetalsreport.com/blog/3120/thought-experiment), confidence in the fairness of the CME and Comex is leading investors and traders worldwide to exit the exchange. Growing awareness of the paper game manipulation is surely affecting things but, in my opinion, the biggest driver of this exodus is the failure of the CME Group to adequately backstop customer accounts following the collapse of MFG last October and PFG last month.
The proof is in the numbers so let’s go back and review some so that we can look at this in the proper perspective.
3/21/09 – QE is just beginning as the world is stabilizing following the events of 2008. Total gold OI is 388,000.
12/30/09 – Gold ends the year near $1100 and the total OI has risen to 491,712.
11/11/10 – Gold is now $1400 and QE2 has just been announced. Total OI is now 644,738.
1/25/11 – We had the huge and strange story about a massive, deferred month hedge being taken off and total OI fell 81,000 contracts in one day to 499,000. Very strange.