As we can see in the chart, the trend has been lower, with a cliff-like decline at the beginning of 2013. This was during the time when the gold price fell from $1,650 to $1,150 in just six months. Savvy traders who were trying to exit their gold positions by getting the best possible price, did so by knocking the price down by over $100 on many days. Nothing like exiting a trade strategically… CNBC style.
Regardless, the Registered Gold inventories fell from 5.3 Moz in 2006 to a lousy 275,000 oz today. We must remember, Registered Inventories are gold stocks that are ready to be delivered into the market. Some analysts may say this really isn’t that big of a deal because there is still 6.4 Moz worth of gold at the COMEX.
While this is true, I would imagine most of that 6+ Moz of Eligible Gold stocks are held in tight hands. And who knows of much of that 6.1 Moz of Eligible Gold stocks are actually there at the COMEX or how many claims on put on each ounce?