by Bill Holter
As you know, May COMEX gold which traditionally is a non-event was anything but this year. Last year, a total of 2,500 ounces stood for delivery, this year the number was 221,000 ounces. The amount standing on April 30 was 5.6 tons which steadily grew throughout the month to 6.89 tons. This “growth” throughout the month is something that has never happened before to my knowledge.
Now we get the first notice day for June and it’s a whopper! 15,493 contracts are standing for delivery which equates to 1.5493 million ounces or 48.193 tons (last year June had 26.3 tons stand for delivery which bled down during the month). COMEX claims 23 tons of registered gold. There appears to be 17 tons from prior months PLUS the 6.8 tons of May standing that this 23 tons will need to service. The 48 tons for June is EXTREMELY heavy, what will happen if June copies May and the amount standing grows by 20%. Where will this gold come from?