COMEX Warehouse Stocks June 18, 2010

THE SILVER DRAIN CONTINUES

SILVER

ZERO ozs withdrawn from the dealer’s (registered) inventory
600,295 ozs withdrawn from the customer (eligible) inventory
Total dealer inventory 52.08 Mozs
Total customer inventory 65.61 Mozs
Combined Total 117.69 Mozs

GOLD

302 ozs withdrawn from the dealers (registered) category
129 ozs withdrawn from the customer (eligible) category
Total dealer inventory 2.98 Mozs
Total customer inventory 7.81 Mozs
Combined Total 10.79 Mozs

The gold movement was yet another farce. If the 302 ozs withdrawn from the dealer inventory is the rate at which gold will be withdrawn to meet the 2 Mozs standing for delivery it will take 25 years to complete the deliveries!

In silver the big drain of inventories continued. 0.6 Mozs were withdrawn from the customer inventory.

There were 86 delivery notices issued in the JUN gold contract. The JUN gold delivery notice total for the month is 20,191 notices or 2,019,100 ozs. JPM issued 0 and stopped 60, Deutsche Bank issued none and stopped 11, BNS issued 0 and stopped 14, while HSBC issued 60 and stopped none.

There were 2 delivery notices issued in the JUN silver contract. The total delivery notices for the month in silver stand at 38 or 0.19 Mozs.

There is 0.9 cents of contango in silver JUN/JUL and 5.5 cents JUN/SEP. In gold there is $0.2 contango JUN/JUL and $1.2 JUN/AUG.

The open interest in JUN gold is 599 contracts or 0.06 Mozs. With the delivery notices issued the total gold standing for delivery could be 2.1 Mozs or 70% of the dealer inventory!

The physical squeeze is just getting started. The sentiment suggests most traders and investors are asleep at the wheel. That is incredibly bullish.
Cheers
Adrian