To date this year, gold inventories at the COMEX have dropped by more than 36% which means the COMEX is holding the least amount of gold it has in the past 9 years. The inventories are down from about 11 million ounces to 7 million ounces.
What does this all mean?
It is definitely in line with what is happening in the physical market. The supplies are tight, the market is in backwardation and it is likely that the premiums will rise soon considering all of the above. On top of that we are entering a strong seasonal pattern for gold and silver.