CPM Group: "No shortage of gold in Comex"

Last week Wrote we at Hollandgold that there is no imminent shortage of gold in the Comex. In doing so, we refuted the persistent rumors that there would be almost no gold left for physical rendition. Our analysis is confirmed by the CPM Group, a consulting firm specializing in the commodity and precious metals market.

In a short report, they write that the gold stock of the Comex is relatively high from a historical perspective. When you compare the entire stocks (Registered + Eligible) with the 'open interest', you see that in a historical perspective there is still a relatively large amount of gold available. Even when the stocks are compared to the physical delivery, it appears that there is no question of an unprecedented shortage in the gold market.

No shortages

The CPM Group writes in its market commentary that this is not a new phenomenon. Also in August 2013, the blogosphere There has already been plenty of speculation about shortages and impending supply problems at the Comex. At the time, the CPM Group also launched a News out to debunk the rumors.

The CPM Group writes in its market commentary that gold is an excellent investment for the longer term at the moment and at the current price. But in the short term, according to the consultancy, we should not count on a large increase in the gold price.

The CPM Group is highly critical of parties in the gold market that spread the false rumors about the Comex as a reason to buy gold. This is what they write in their market commentary.

"With the fall in the price of gold and other precious metals and the continued weakness in the market, some gold marketing groups have become even more desperate in convincing investors to buy gold. They have seized on misleading market commentary to suggest that the price of gold is going to 'explode' because there is a fundamental scarcity in the market. This is one of the false narratives used to talk up the gold market."

Click for a larger version (Source: CPM Group)

Click for a larger version (Source: CPM Group)