The Deliverable supply of gold according to the Commodities Exchange (COMEX) and CME = Registered + 50% of Eligible.
This means that there is far less gold than imagined in COMEX vaults to meet gold futures contracts deliveries.
CME’s latest letter to the CFTC, dated 9 December 2024 (after the NY-LN spread had already started to blow out), says that: “Deliverable supply is calculated as the sum of total reported registered gold with total reported eligible gold, after taking a 50% discount for eligible gold.”
Out here in the real world, this means that , based on the latest CME Gold Stocks report of 28th March, instead of 22.75 million ounces of registered and 20.59 million ounces eligible (for a total of 43.34 million ounces (434,300 contracts)) being available for delivery against CME’s gold futures contracts, as many in MSM claim, there are actually 22.75 million ounces of registered and 10.29 million ounces of eligible (for a total of 33.04 million ounces (330,000 contracts)) of available deliverable supply.
This amount is 25% less than just adding registered and eligible together.
Watch for the shorts to spin this one.
See CME letter to CFTC, pages 9-11 of pdf: https://www.cftc.gov/sites/default/files/filings/ptc/24/12/ptc12092410790.pdf
