Loading ...The Gold Short Squeeze Is Getting Physical, Beware The ‘Others’
snip
Conclusion
I suspect, though I cannot prove, that there isn’t all that much physical gold backing unallocated bullion accounts in London used by swaps to notionally hedge their Comex shorts in New York. If there was, then why not import the gold from London where it theoretically is? Isn’t that the point of being hedged physical gold in London? If there isn’t much there, that might be why so much gold is being imported specifically from other places into JFK, presumably much of it to the Comex vaults, which must be within a certain radius of New York City by Comex rules.
Comex now has enough gold in its vaults to cover 207,848 contracts. The active August contract still has 289,325 contracts of open interest on it at the time of writing July 19. We’ll see how many traders roll August into December by July 29 and how many do not, and how much physical gold Comex has left over come that date and into August. I suspect that much of the gold being imported into the US through JFK is being imported to physically cover the swaps’ Comex shorts. If even more “Others” stand for delivery on the 29th, the swaps will have to import even more. And the physical gold short squeeze, I believe, already well underway, will intensify still further.
https://seekingalpha.com/article/4359356-gold-short-squeeze-is-getting-physical-beware-others