Just wanted to add a few things before the end of the day.
First of all, things are really beginning to quiet down in NY ahead of the Christmas holiday. Trading is light and price continues in it's new range of 1600-1645. The OI of the Feb12 gold contract continues to shrink as it fell another 3700 contracts yesterday to 243,246. Today's Comex gold volume was not even 100,000. Interestingly, the Jan12 contract continues to be bought. The OI rose another 100 contracts yesterday to 1212. We'll have to watch how these numbers change in the next couple of weeks.
I'm going to start watching the Mar12 silver OI, too. Here's the trend from this week:
- At last Friday's close, it was 55,356.
- Monday's close was 56,532
- Tuesday, the day of a $0.66 rally in silver, saw the OI fall back to 55,641. (JPM short covering?)
- The OI at yesterday's close was 55,736.
All in all, quite a stable OI picture, especially when compared to gold. Volume, however, is pathetic. Today, the total silver Comex volume was estimated to be just 21,000 contracts. As mentioned in the previous post, back in April silver would trade 20,000 contracts in about 30 minutes. The dropoff is staggering.
Lastly, our good buddy Ned Naylor-Leyland made an appearance on CNBC Europe yesterday. Though it appears that CNBC attempted to wipe the interview from their site, Ned was able to capture it and post it to the Cheviot site. A link is provided below. Though there are many priceless moments in the skit, my favorite lies at about the 1:25 mark. There, a talking head mentions something about being told that "Chinese demand for physical was falling". The look on Ned's face will make you laugh.
OK, that's all for now. Have a great evening. TF