Peter's Blog

COMEX: Bank of America Backstops Strong Delivery Volume in Silver

As we round out August in the COMEX, gold delivery was strong and silver was dominated by the odd mechanizations of Bank of America.

Comex Update: House Accounts See Largest Net Delivery Volume on Record

Gold saw the largest delivery volume in 2022 with 33,593 contracts delivered so far and 244 remaining in open interest. Since 2020, only December and February last year recorded larger volumes.

13-Week Money Supply Growth Hits Multi-Decade Low

Money Supply growth was positive in July at $42B but sits well below the $161B seen last year. As the chart below shows, Money Supply growth has collapsed since February. Last year started with 5 straight months above $200B whereas 2022 has only seen one month above $100B and that was January.

Gold and Silver Price Analysis: Caution Warranted in the Short-Term

The price analysis last month concluded that the market might have seen capitulation. It suggested the FOMC and GDP could spark a short squeeze based on the overly bearish COTs report. While gold rebounded strongly, it ran into stiff resistance and more hawkish talk by the Fed. With a large pullback from recent highs, is gold about to […]

Comex Inventories Plummet – Is a “Vault-Run” Underway?

Gold and silver deliveries on the Comex have surged since March 2020. While delivery volume in 2021 and 2022 are below the massive amount seen in 2020, overall volume is very elevated compared to pre-Covid levels.

Treasury Runs Second Largest July Deficit of All Time

The Federal Government ran a $211B deficit in July. Except for February, this was the largest deficit since last July when the Treasury ran a deficit of $302B, and it was the second-largest July deficit ever.

July CPI Pauses – Is Peak Inflation Over?

The latest seasonally adjusted inflation rate for July came in nearly flat at -0.03%. This was on the heels of a blisteringly hot June number of 1.35%. While inflation did surprise to the downside, it had been expected to be much lower due to the fall in oil and drop in gasoline prices. The YoY […]

US Debt: The Sting of Higher Interest Rates is Just Getting Started

The Treasury increased the total debt by $27B in June. Activity slowed in the latest month across all instruments, but particularly the conversion of short-term to long-term. After massive moves to extend debt maturity and shrink short-term debt by $530B over 4 months (shown below by the large negative turquoise bars), July went very quiet.

Jobs Report: Be Careful What You Wish For

According to the BLS, the economy added 528k jobs in July, blasting past analyst estimates of 250k. The strong report comes on the heels of a Fed meeting last week that made a point to state they are hyper-focused on the job market as a sign of a weakening economy. The White House and Fed […]

Is a Falling Trade Deficit Further Proof of Recession?

The June trade deficit fell for a fourth straight month to -$79.6B. While the deficit continues to drop from all-time highs, it is still larger than any month before 2022. June eclipsed December 2021 by $750M. December was a new record then, so the current deficit should be put into the context of longer history […]