February was a very interesting period. Two big vaults, GLD and COMEX, reported interesting developments.
In February 2016 GLD experienced the third highest monthly inflow of gold in its history (violet arrow). Higher inflows happened only in February 2009 (red arrow) and in May 2010 (blue arrow). Note that these higher inflows were reported at the beginning of the last bull run in gold prices.
At COMEX there was a little bit different development (or, better say, a lack of it). Despite a big move up in gold prices, at the end of February there was only a fractional amount of gold at COMEX. Please, remember that the registered ounces represent gold, which may be used at gold futures market.
As the chart shows, there were only 240 thousand ounces to be used at futures market. It was four times less than in September 2014. Simply put, any small call for the gold delivery may be undeliverable. It is like to break the bank at the casino.
Summing up - the two developments at GLD and COMEX are, in my opinion, extremely bullish for gold in the long-term.