#edgeforex #trading #market #forex #trader #forexsignals #banks #gold #restocking #valuts #inventory #silver #cryptocurrency #bitcoin banks

Banks are replenishing their gold reserves at a rate not seen in years.

The Comex vaults have been steadily depleted over the last several months, but 1.6 million ounces of gold have only appeared since March 1. We are only halfway through March, but this is the largest inflow since October 2020. 

This could simply be a restocking of the metal lost in January and February. It’s also possible that this is being used to support the massive delivery volume seen in March, which is typically a slow month. However, a third possibility is that the banks are preparing for a large volume of deliveries in April. 

Gold has only appeared in the last three days and is mostly in Eligible. The majority of it is not yet ready for delivery, but it can be moved over immediately if the owner so desires. 

Silver, on the other hand, continues to follow a different pattern than gold. It appears that the big players are currently focused solely on gold. In the last few days, nearly 3.9 million ounces have left Comex vaults. 

The mechanics can be seen by reading the detailed report. To meet the extremely strong delivery demand seen in March, metal that was listed as Eligible was being moved to Registered. Unlike gold, this metal has not been replenished and is still leaving Comex vaults. Over the last month, the Eligible category has lost 17.7 million ounces.

Gold

• Gold has reversed a 50% 12-month movement of metal out of the vault in a matter of days.
• Eligible has increased 7.2 percent in a single week. Registered could support 192k contracts standing for delivery in total This is 3.5 times the largest month on record (June 2020 at 55k contracts).
• The data shows the banks well capitalised to handle higher delivery volume.
• It should be noticed that most of this is probable still from the London vaults that came to New York in the profundities of the April 2020 liquidity emergency. Almost every vault is now adding to inventory, a complete reversal from last month
• JPMorgan now has positive flows over the last year, up 15.2 percent over the previous month. 
• Again, the net gain in JPMorgan inventory over the last year has been added in the last week. 
• As predicted by the margin analysis, all eyes appear to be on gold. The banks are clearly preparing for a high volume of deliveries. 
• Gold is the world’s true historical currency. Central banks have vast gold reserves (Russia wishes they had more).
•  If the market starts moving in a big way, gold will be the first to move. The gold stock crested in February of last year and has been consistently declining since, except for brief expands that don’t seem to endure.

Silver

• Silver stockpiles have shrunk by 29 million ounces, or 7.8 percent, in the last year. 
• This has been entirely concentrated in Registered, but the last month has seen a significant shift, with Eligible seeing the largest outflows. 
• The last month’s outflows from eligible accounts offset 85 percent of the inflows over the previous year. 
• Silver coverage is weaker than gold, with 8.4 open interest contracts for every available physical supply of Registered Depository Receipts (down from 9.8 on March 8). This is close to the June 2020 highs. 
• The current drop is entirely due to a drop in open interest from 168k on March 8 to 157k today. This drop in open interest occurred despite no increase in margin rates.
• Only the Delaware Depository has seen positive inflows in the last month, while six vaults have seen significant outflows. 
• In a single month, CNT lost 8.2 percent of its inventory. • Silver remains the forgotten metal. However, this is not entirely surprising. The question now is, why is this allowed to happen? None of the powers that be want the price of gold to skyrocket. It calls the entire fiat system into question. My current theory is that the banks choose when to fight and when to ride it. The momentum is strong right now, and they appear to be preparing to ride the wave. Prices fell this week, but there is clearly a bullish trend in the works.
• Silver, like gold, saw an increase in Registered around March 2020 but has since been draining, albeit more slowly.

Caution

• Notwithstanding, be mindful in light of the fact that there are switches set up that can make the market change direction quickly. Expect these levers to be used when they will have the greatest impact (e.g., speculation reaches a fever pitch). 
• This was evident on March 9, when margin requirements were raised while gold fell by $80. 
• Since early January, the Comex gold market has been flashing warning signs. This is still the case today. 
• The latest metal influx supports the idea that banks are preparing for increased delivery volume and potentially higher prices. 

Having said that, nothing is ever easy or simple in the market, even with over 12 years of experience.The bullish setup is in place, but this game has a few more surprises in store.