- Comex Gold Inventory: Do You Really Trust The Banks?
“The information in this report is taken from sources believed to be reliable; however, the Commodity Exchange, Inc. disclaims all liability whatsoever with regard to its accuracy or completeness. This report is produced for information purposes only.” – The disclaimer now posted on the Comex gold and silver daily warehouse stock report as of Monday, June 3, 2013.
How would you like to get your bank statement in the mail from JP Morgan or Bank of America and see this disclaimer added at the bottom: “The information in this account statement is taken from sources believed to be reliable; however, JP Morgan Chase & Co. disclaims all liability whatsoever with regard to its accuracy or completeness. This account statement is produced for information purposes only.” What would go through your mind if that was stamped clearly on your next account statement?
The CME “believes” the inventory reports are “reliable” but will not back up the accuracy. Do you trust those numbers? Before you answer that question, keep in mind that the big banks have already been accused and successfully prosecuted for reporting and business fraud in several other areas of their operations. Also keep in mind that the numbers produced by the CME on a daily basis come from reports generated by the banks themselves. The numbers ARE NOT subjected to the scrutiny of any regular independent physical audit.
With that said, there has been a lot of discussion lately about the amount of gold inventory on the Comex in relation to the amount of futures contracts. The imbalance in paper vs the total amount physical gold as reported is catastrophic to the Comex should enough accounts who are long gold demand delivery.