2.14 million gold ounces was delivered, or taken out of COMEX inventory, on Friday. Some large buyer took physical possession of their 21,400 gold futures contracts. This is the largest one day total since data began in 1994.
Contracts representing 17.6 million gold oz traded on Friday. The entire world only produced 6.6 million gold ounces in a year. Silver futures traded 548 million ounces just on Friday. The total yearly production of silver is just 800 million ounces.
True price discovery is limited on COMEX due to large banks with bottomless pockets that short sell unlimited amounts of contracts representing millions of ounces of sliver and gold.
The COMEX only holds 17.7 million ounces of gold and 297.6 million silver ounces. If investors continue to choose to take physical delivery of gold and silver, the COMEX will lose relevance.
We’ve seen China rise to become the price discovery leader in precious metal prices over the past year. As COMEX inventories are drained, gold and silver will trade based on pure physical supply and demand.
Investors, central banks, and countries around the world are choosing to swap worthless dollars for physical gold and silver. These parties seek to diversify their portfolio away from the USD’s accelerating loss of purchasing power in the USD. As the trend continues demand will only increase. Physical gold and silver will become scarce driving the price much higher.
The GP is up 19.1% year to date beating gold 12.6%, the GDX 13.8%.
The GP10X is doing even better up 23.9% so far in 2024.
The Golden Portfolio is your Ultimate Gold Investment and is no doubt the best way to play gold.
