The Comex futures market is enormous relative to the physical gold actually sitting in its vaults, and the exchange's own delivery notices and inventory reports are how traders track the gap between the two.
1. Registered versus eligible stock
Comex-approved warehouses report two categories of stored gold: eligible, gold that meets exchange purity and storage standards but isn't currently offered up for delivery, and registered, gold specifically designated as available to satisfy a delivery request. Only registered stock counts toward what could actually be delivered against open futures contracts.
2. What a delivery notice actually represents
When a futures contract nears expiration, a holder wanting physical gold rather than a cash settlement or a rolled-forward position, issues a delivery notice. This happens for only a small fraction of total open contracts, since most market participants use futures for price exposure or hedging rather than to physically acquire metal.
3. Why the registered-to-open-interest ratio gets attention
Comparing registered stock to total open interest gives a rough sense of how much physical gold theoretically backs the paper claims on the exchange. A shrinking ratio has periodically drawn commentary suggesting tighter physical availability, though in practice, most contract holders roll or cash-settle rather than demand delivery, so the ratio is a structural indicator to watch rather than a signal that a delivery squeeze is imminent.