COMEX Warehouse Stocks May 26, 2010

SILVER

ZERO ozs withdrawn from the dealer’s (registered) inventory global annual production! Watch this space.
639,170 ozs withdrawn in the customer (eligible) inventory global annual production! Watch this space.
Total dealer inventory 52.60 Mozs global annual production! Watch this space.
Total customer inventory 64.82 Mozs global annual production! Watch this space.
Combined Total 117.42 Mozs

GOLD

ZERO ozs withdrawn from the dealers (registered) category global annual production! Watch this space.
127,913 ozs deposited in the customer (eligible) category global annual production! Watch this space.
Total dealer inventory 3.12 Mozs global annual production! Watch this space.
Total customer inventory 7.62 Mozs global annual production! Watch this space.
Combined Total 10.74 Mozs

There was a very large deposit of 128Kozs of gold deposited in the customer inventory. There were a gob-smacking 496Kozs of gold transferred from the customer inventory to the dealer inventory by way of an internal “adjustment”. Is this customer gold being leased to meet the expected massive June delivery demand?

In silver there were 0.64 Mozs of silver withdrawn from the customer inventory. There was no change in the dealer inventory. There are 21 Mozs in delivery notices that have been issued this month and there is no indication any significant amount of silver has left the Comex.

There were 2 delivery notices issued in the MAY gold contract. The MAY gold delivery notice total for the month is 2,046 notices or 204,600 ozs.

There were 9 delivery notices issued in the MAY silver contract. The total delivery notices for the month in silver stand at 4,208 or 21 Mozs.

There is 0.3 cents of contango in silver MAY/JUN and 1.4 cents MAY/JUL. In gold there is $0.1 contango MAY/JUN and $0.9 MAY/JUL.

The open interest in silver for the MAY contract declined to 28 contracts. This is 0.2 Mozs which coupled with the already issued delivery notices puts the total likely demand for silver delivery for the month at 21.2 Mozs. That represents 40% of the dealer inventory of approximately 52.6 Mozs.

There is still a massive open interest in JUN gold of 156,156 contracts. First notice day is 28th May and these contracts must be sold, rolled or be fully paid to stand for delivery. This is a very large open interest at this stage. It represents 15 million ozs of gold which is almost 5 times what the dealers have in their inventory and 21% of global annual production! Watch this space.

Adrian

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