Sunday, May 31, 2020

CME Stays Silent on Cause of COMEX Silver Price Glitch

by Ronan Manly, BullionStar:
Silver futures prices on the COMEX futures trading platform briefly plummeted at approximately 7:06am Singapore time yesterday, with the price for the front month (most active) September silver contract falling from a US$16.06 quote down to a low of US$14.34 all within a 1 minute interval. The futures price then recovered nearly all of its losses in the subsequent 2-3 minute period. High to low, this COMEX silver futures contract saw its price fall by just over 10.7{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}, before rebounding nearly 11{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}.

During this time when the COMEX price crashed, there was nothing fundamentally happening in the wider financial markets, or indeed in the physical silver market, to justify these price gyrations in COMEX silver futures prices. Which all goes to show that the COMEX ‘paper’ futures silver prices is completely detached from the physical silver market, and that COMEX silver futures prices have no anchoring in the real silver market.

Consumers and Businesses Buckle under their Debts

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by Wolf Richter, Wolf Street:
Bankruptcies surge as the “credit cycle” exacts its pound of flesh.

Commercial Chapter 11 bankruptcies – an effort to restructure the business, rather than liquidating it – jumped 16{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} year-over-year in June to 581 filings across the US. Total commercial bankruptcies of all types, by large corporations to tiny sole proprietorships, rose 2{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} year-over-year to 3,385 filings, according to the American Bankruptcy Institute. This was up 39{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} from June 2015 and up 18{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} from June 2014.

Commercial bankruptcies topped out at 9,004 in March 2010. By that time, credit conditions had been easing for a year, and liquidity was chasing yield. Not much later, even zombie companies – if they were large enough – were able to refinance their debts and borrow more to fund their operations and keep creditors happy. Bankruptcies fell sharply: In September 2015, they bottomed out at 2,217 filings.

JULY 7/RAID!!

GOLD: $1210.40 DOWN $13.40 Silver: $15.43 DOWN 53 cent(s)
from Harvey Organ:

In silver, the total open interest SURPRISINGLY ROSE BY A TINY 344 contract(s) UP to 207,805 WITH THE SMALL RISE IN PRICE THAT SILVER DELIVERED WITH YESTERDAY’S TRADING (UP 8 CENT(S) ON TOP OF THE CONSTANT TORMENT THESE PAST FEW WEEKS including today.

In ounces, the OI is still represented by just OVER 1 BILLION oz i.e. 1.0390 BILLION TO BE EXACT or 149{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MAY MONTH/ THEY FILED: 292 NOTICE(S) FOR 1,460,000 OZ OF SILVER

In gold, the total comex gold SURPRISINGLY ROSE BY A HUGE 9974 CONTRACTS DESPITE THE TINY RISE IN THE PRICE OF GOLD ($3.40 with YESTERDAY’S TRADING). The total gold OI stands at 472,831 contracts.

we had 3 notice(s) filed upon for 300 oz of gold.

Read More @ Harveyorganblog.com

Preserving Sanctity In Dark Times

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from Jesse’s Café Américain:
“Somebody, after all, had to make a start.”

Sophie Scholl

I hope to update the charts on Thursday, Friday at the latest. For now, here is some other knowledge.

Some say that most of the time everyone wants to be great, because they have a natural desire for acceptance, recognition, and praise. Perhaps this is so. And alas, some wish to be great in order to set themselves apart from the rest of humanity with which they not only feel no kinship, but despise.

Rethinking the Fed: More Tightening than Priced In? Next Financial Crisis Coming Up?

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by Mish Shedlock, Mish Talk:
Time and time again, the Fed sows seeds of the next financial crisis in actions it takes to mitigate the previous financial crisis that it caused.

Have we reached that point yet?

The Guardian reports Central Banks Raise Alarm Over New Crash After Steep Rise in Lending.

Soaring stock markets, which have become detached from underlying values, were another sign that unjustified exuberance had replaced last year’s overly pessimistic reaction to political events such as the US election and the UK’s Brexit vote, BIS cautioned in its annual report published on Sunday.

Jim Grant Explains the Gold Standard

by Peter Schiff, Schiff Gold:
The following article by Ryan McMaken was originally published on the Mises Wire and is reprinted with permission

Earlier this month in the Wall Street Journal, James Grant explored the latest academic attack on the gold standard — this time in the form of One Nation Under Gold by financial journalist James Ledbetter.

Not that the establishment economics profession needs another book trashing gold. Among the university- and government-employed PhDs who hand down their wisdom about economics from on high, few have anything but disdain for the yellow metal.

Here’s What “Stupid Cheap” Looks Like: The Inflation-Adjusted Silver Price

by Jeff Clark, GoldSilver:
A lot of readers liked the inflation-adjusted gold price chart we highlighted last month. It showed how dramatically undervalued it is, as well as how high it could reach when using the 1980 inflation formula.

Many of you asked to see the same chart in silver. Well, we aim to please. And what you’ll see below shows that silver’s undervaluation is even greater than gold’s.

Why We Must Adjust For Inflation

When trying to put the price of a particular asset into perspective, you have to adjust it for inflation. If you don’t, the long-term view is distorted and can lead to erroneous conclusions. It’d be akin to preparing your income taxes using 1980 forms.

Preparing For The Cashless Transition

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by James Wesley Rawles, Survival Blog:
Most western nations will soon adopt digital currency. Already, more than 80{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of day-to-day transactions in the First World are settled with debit cards, credit cards, PayPal, or checks. In Europe, the use of the EC card—a sort of interbank debit card—has become ubiquitous. Going “cashless” is the Big Trend.

With the now widespread use of smart phones, payment for many small transactions is as simple as just waving a phone at the checkout counter. (This is a so-called “contactless” or “mobile wallet” purchase.) Mobile wallets, such as Apple Pay, Google Pay, and Samsung Pay, are catching on rapidly. So rapidly, in fact, that some urbanites no longer carry any cash. At many stores, kiosks, and even restaurants this will likely become obligatory in the next few years. No smartphone? Sorry, “No soup for you!”

Time for a New Gold Standard for Asia

by Alasdair Macleod, GoldMoney:
Over half the world’s population, living in the Eurasian land mass, understands that gold is money. The leaders of the Asian nations also know that this is true as well. The leaders of the security and economic alliance of the Shanghai Cooperation Organisation, which now incorporates most of these peoples, also know that to become independent of Western hegemony and to forge their own way, they must abandon Western financial systems and markets, replacing them with a new monetary order, serving their own needs. This is demonstrated in the establishment of parallel multinational financial institutions, duplicating and replacing dollar-centric development banks and settlement organisations.