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Thursday, February 7, 2013

Gold Run? 43 Tonnes of Gold Stand for February Delivery on 1st Notice Day

empty COMEX vaultT

It seems that the gold repatriation request from Germany gave ideas to many investors, countries and sovereign or investment funds. Case in point, if we analyse the delivery requests on the COMEX for the month of February, we see that they are reaching the astronomical amount of 43,26 tons of physical gold, or 1,391,000 ounces of gold to deliver.

Why is this information paramount ?
As explained by Harvey Organ :

Because, for comparison purposes, delivery requests for the month of December 2012, normally a record month for deliveries, amounted to only 10 tons of gold.

Secondly, because the COMEX is normally a « paper » gold market in which investors rarely request converting their contracts into physical gold. Large investors, bullion banks and investment funds looking to acquire physical gold generally do it on the LBMA in London. Thus it’s possible that the LBMA is also showing signs of scarcity, with this movement toward the COMEX to acquire physical gold.

And, thirdly, because since the ‘70s, it’s the first time that there is such a request for physical gold delivery from the COMEX.

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