Comex Gold Warehouse Stocks Swell As Physical Demand Slumps

By Debbie Carlson
Kitco News

gold22Light physical gold demand has been a common theme in the gold market for the past few months, with gold forward rates and Shanghai Gold Exchange premiums low or sometimes negative.

Another sign, albeit less widely watched, is the rise in Comex gold warehouse stocks. As of Aug. 25, the combined total of registered and eligible warehouse stocks was 9.863 million troy ounces, the highest since March 11, 2013, when they were at 9,863,758.707 ounces, according to CME Group data. But a recent peak in the 11 million ounces level was as high in January 2013.

In 2013, Comex warehouse stocks were in a decline, said Erica Rannestad, senior analyst, precious metals demand at Thomson Reuters GFMS. This year, however, Comex warehouse stocks have been rising. In mid-April Comex warehouse stocks were around 7.9 million ounces.

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