Less And Less Gold At COMEX

There is less and less gold in the COMEX vaults, especially the gold classified as "Registered". This category comprises gold, which is being used in the futures market transactions. On September 18 there were only 162,034 registered ounces of gold. Having in mind that the current open interest in futures contracts is standing at 42,410,400 ounces, the physical gold stored at COMEX covers only 0.38%  of gold, which is in the game. This is the smallest fraction since many years (or even ever). Please, look at the chart below:

Simply put, there is practically no physical gold to back up a virtual futures market, which is an extraordinary bullish (for gold) situation.

A Few Positive Developments For Gold Bugs

Gold, silver and the entire precious metals market are still in their medium-term bear market. But there are a few developments, which support investing in this market today. Please, look at the chart below:

While the PM market is still  going down, the stronger price action of GDXJ (gold and silver juniors) against GDX (big gold and silver miners) supports investments in PM stocks.

Another development:

These days the PM stocks are at their lowest level against gold in modern history. Simply put, they are totally undervalued against gold.

I do not know whether the PM stocks will go down or up but the investors looking for value should definitely find value in the PM stocks.