Saturday, July 27, 2013

COMEX Inventories Declining Rapidly

"In my mind what happened was the powers that be thought, ‘What are we going to do here? We can’t have people find out that the central banks don’t have any gold because it’s all been leased and sold to Asia. So, what are we going to do? Well, let’s go bomb the COMEX (price), and maybe everyone will sell their GLD, and we will go in and buy the GLD and redeem the (physical) gold.’
As you know, 600 tons of gold was redeemed. 600 tons is a big number. So we’ve had a 30% increase in supply because of the GLD liquidation. Of course during this time period, all of the investment advisors who told people to sell were the same people that covered their shorts. So they (bullion banks) have gone from being short gold to being neutral on the COMEX.

We have seen the COMEX inventories decline rapidly. We know that all of the dealer inventory on the COMEX has already been spoken for by delivery notices, so essentially there will be zero (inventory) if they ever make the delivery."

- Eric Sprott via a recent King World News interview, read the full interview here: