Chinese Consumers Rush for Gold

Gold poked its nose through $1,300 spot a few moments after Comex trading began in New York on Monday morning… and that was all the excitement there was.  The gold price closed about six bucks lower than that, but I wouldn't read anything into it.  Volume was on the light side.  Yesterday was options expiry in both gold and silver… and today its the futures market.

Silver's high [around $21.63 spot] was shortly before London opened on Monday morning… with a secondary high at the same time as gold's high… minutes after the New York open.  It managed to close at exactly Friday's closing price.  There are still 228 September silver contracts open.  This situation has to resolve itself by the end of trading on Thursday.

Here's the world's reserve currency's chart for Monday.  Nothing so see here, folks.

The share prices followed the gold price, with the HUI finished down 0.89% on the day.

The CME reported Monday's Comex delivery as follows.  In gold, 60 contracts were posted for delivery on Wednesday… and in silver it was 19.  JPMorgan is still trading in its house [proprietary] trading account.  It wasn't a lot… but they're still there.  The link is here.

Neither the GLD or SLV ETF had a report on Monday… and there was no sales report from the U.S. Mint either.  But I must correct an error I made in my Saturday column regarding the one-ounce 24-K gold buffaloes.  The mint isn't making any more this year… that part I got right.  But I said that the U.S. Mint had only made 10,000 in 2010… and that premiums would skyrocket.  Unfortunately, I was only looking at the September sales numbers when I made that statement.  Year-to-date the mint has produced 209,000 of them, so you can forget about the big premiums I was mentioning.  I thank two [very polite] readers for pointing out the error of my ways.

The Comex-approved depositories had a busy Friday… and at the end of the day they reported a decline in their silver inventories of 989,234 ounces.  Most of the action was at Brinks and HSBC… and the link is here.

Here's an interesting graph that I got from Nick Laird yesterday.  It's captioned "United States National Debt and the Presidents Responsible For It"… and that's pretty much all the explanation that's needed.

Here's another graph that I've had sitting in my in-box for the last couple of weeks.  I swiped it from an article posted over at theoildrum.com.  I don't normally post a graph on oil… but this one is quite interesting. It's captioned "Global Crude and Liquid Energy".  I see nothing on this graph that doesn't indicate that peak oil occurred in 2005… as production has flat-lined for the last five years… and shows no signs of revival.