Comex gold stockpiles witness the largest ever crack-up

NEW YORK (Scrap Monster) : Is it the end of a bull market run for Gold? Are the good times over for Gold mining firms? Speculations surrounding the industry are many. What exactly has been happening behind the scenes?

A close observation shows that the Comex stockpiles of the precious metal have eroded significantly in the past 90 days. The gold inventories witnessed their highest ever plunge in the history, as is evident from the graph below. Nearly 2 million oz’s of gold has been drawn down from the physical inventories.

Eligible stocks which until now had a continuous up move have bucked the trend. The Comex held eligible stocks witnessed sharp downfall. World’s leading financial conglomerates are reported to have reduced their exposure in the yellow metal. JP Morgan Chase’s reported gold stockpile dropped by over 1.2 million oz.’s during a span of 120 days (See the graph below)

ScotiaMocatta-another global leader in precious and base metals trading has also severely reduced its gold depositories recently. The firm removed around 650,000 oz’s of gold in the past three months. (See the graph below)

In short, the substantial erosion in precious metal holdings is assumed to be mainly triggered by the underlying weakest sentiments of the investor community to the entire metals pack.