Gold Market News

First Japanese gold ETF due to launch Aug. 10

source

As well as Small-Lot Gold Futures Trading on TOCOM(100 grams per lot , margin = 12,000 Yen)

source

Korea : The government plans to establish an exchange for gold as early as next year.

By Lee Hyo-sik
Staff Reporter

"The government plans to establish an exchange for gold as early as next year to make gold transactions more transparent and discourage the smuggling of the precious metal.

According to the Ministry of Finance and Economy, the government will set up an exchange, an organization to manage and supervise gold distribution, next year to stem any illegal transactions and distribution of gold.

It will expand the exchange into a comprehensive commodity exchange, like New York Mercantile Exchange (NYMEX), to deal with not only gold, but diamond, crude oil and other commodities as well.

The exchange will operate separately from the Korea Exchange (KRX) on which stocks, bonds and derivatives are traded, the ministry said."

source

Gold Market Update

Gold trading is directionless, sentiment is negative as I observe at mainstream media publications.


Gold markets structural developments:


Small-Lot Gold Futures

100 gram gold contracts to be issued in China and Japan :



"BEIJING, June 26 -- The Shanghai Gold Exchange will launch individual gold bullion trading nationwide in July by teaming up with Industrial Bank."

-source


"TOCOM hopes to inaugurate the new section, aimed at attracting individual investors with reduced trading risks, on July 9. The basic trading unit will be lowered to 100 grams from one kilogram for the existing gold futures. The per-lot margin will be fixed at 12,000 yen for July compared with 90,000 yen for the existing market. Transactions will be settled with cash, not with physical delivery. The daily price fluctuation range will be initially set at 120 yen, twice as wide as for the existing gold futures."
-source


India Gold ETF's


"Sandesh Kirkire, CEO of Kotak Mahindra AMC:

Q: Can you put into perspective as to how much you would actually be investing in physical gold and how much would be in money markets?
A: I think a significant portion will be in physical gold and very marginal amount will remain in cash and cash equivalents. "

-source

Gold & Silver Open Interest Summery+ XAU & XAG Charts

Here is Gold and Silver open interest Summery table which aggregate the data of the COMEX (NYMEX), CBOT & TOCOM Exchanges.












Those are not charts of some hot stocks but charts of natural resources, rare minerals which experienced 20 years bear market , The Third Elliot wave is far from over and can easily exceed the old highs for silver and gold , this markets are relatively small when compared to the other financial markets.

















This is not the gold and silver bull market of the 1970's. The Information technology have changed the way markets works, today's market are almost completely computerized. Markets information is much more available to investors all over the world.


The 1980 highs are getting more and more relevant for gold.
















See relevant posts:

Long term Gold and Silver charts

Gold measuring (applicable for silver)

Physical vs paper gold

Gold Short positions

It is very difficult to know how much gold is really sold short because many trading houses are holding spread positions due to arbitrage trading. Also most of the positions seems to be OTC derivatives.

Here is a summery of the open Interest for the COMEX (NY) , CBOT and TOCOM (Japan), Options are not included.

COMEX (CFTC) : 361,704 x 100 oz = 36,170,400 oz
CBOT : (12,404 x 100 oz = 1,240,400 oz + 4,853 x 33.2 oz = 161119.6 oz) = 1,401,519.6 oz
TOCOM : 342,873 x 33 oz = 11,314,809 oz

COMEX + CBOT + TOCOM = 48,886,728 oz

Links :


BIS OTC DERIVATIVE REPORT REVIEW

DERIVATIVE OTC REPORT OCC

COMEX (CFTC)

CBOT

TOCOM