Sunday, September 19, 2021

Texas Freeze Raises Electricity to $900 to Charge a Telsa

from 21st Century Wire:

As a result of the record-breaking freeze in Texas, massive demands have sent retail energy and electricity prices skyrocketing.

One power supplier, Griddy, went so far as to tell 29,000 of their customers – now fully exposed to the real-time swings in wholesale power markets – to switch to another provider because spot electricity prices pushed as high as $9,000 a megawatt-hour.

In recent years, Texas officials were lured into adopting supposed ‘green’ energy policies and production, and promoted the sale of electric cars, including Telsa motors, whose billionaire owner Elon Musk has recently begun relocating a large part of the company’s operation to the Lone Star state. But at the current price per megawatt-hour, charging your Tesla is liable to set you back about $900.

THE COMING MIDDLE EAST OIL CRISIS: The Collapse Of Net Oil Exports

by Steve St. Angelo, SRSRocco Report:

The Middle East is heading for a crisis in its oil industry.  Unfortunately, the market doesn’t realize there is any danger on the horizon because it mainly focuses on how much oil the Middle East is producing rather than its exports.  You see, it doesn’t really matter how much oil a country produces but rather the amount of its net oil exports.

A perfect example of this is Mexico.  As I mentioned in a recent article, NEXT OIL DOMINO TO FALL? Mexico Becomes A Net Oil Importer, Mexico is now a net importer of oil for the first time in more than 50 years.  Furthermore, the IEA – International Energy Agency, published in their newest OMR Report that Mexico is forecasted to lose another 170,000 barrels per day of oil production in 2019.  Thus, this is terrible news for the United States southern neighbor as it will have to import even more oil to satisfy its domestic consumption.

Surging Russian-Chinese Trade Pressures Petrodollar

by Tom Luongo, Tom Luongo:

The latest trade figures on Chinese/Russian trade should be further warning to the U.S. that economic sanctions do not work. In May 2017 Russian and China agreed to increase bilateral trade to $80 billion by the end of 2018.

Well, they’re a year ahead of schedule.

The official figures for 2017 came in at $84.07 billion.

They did more than $8.1 billion in business in December alone. With the opening of the new ESPO oil pipeline connecting Siberia to China doubling the amount of oil China can import to 600,000 barrels per day we’ll see those numbers continue to accelerate.

And that’s the key. Remember, the massive $400 billion gas deal China made with Gazprom in 2014 hasn’t begun delivering gas. The first Power of Siberia pipeline isn’t due to be completed until 2019. The second Power of Siberia pipeline is on the table after this one.

And the two countries just agreed to a third pipeline to bring gas in from Russia’s far east last month.

So, despite back-biting from western media about the profitability of these projects, they are going forward and the two countries continue to strengthen fundamental ties to one another.

Greasing the Skids

We are now just a week away from trading yuan-denominated oil futures on the Shanghai International Energy Exchange(INE). Trading begins January 18th.

And while that won’t change the face of oil futures overnight, it will begin shifting price discovery away from U.S. dollar markets. It will also improve external yuan liquidity as well as visibility for Russian oil on the global market.

The Shanghai contract is for Medium Sour crude which is closer to the type of oil mainly produced by Russia. Russian Urals crude is considered Medium Sour. Saudi Arabia’s and most of OPEC is sour oil (higher in sulfur with a lower pH). With the OPEC production cuts which Russia agreed to emulate, mostly hit this market.

Both WTI and Brent crude are benchmarks for Light Sweet Crude like that of the U.S. shale producers, Venezuela, Nigeria and Libya. So, this contract is designed to properly price other grades of oil not tailored to U.S. refinery needs.

And for that reason alone it will be a major competitor in the long run. The current oil market is heavily fragmented because there is no direct futures market for Sour grades of crude.

Shanghai’s contract is changing that game. Between this and that profits from it can be converted to gold via the Shanghai Gold Exchange, gives this market immediate credibility.

The effects of this have been over-stated on the one hand by hard-money advocates and under-stated on the other by entrenched financial analysts.

The important takeaway is that China has created the first unassailable and above-ground challenge to the petro-dollar oil trade. To break the world’s use of the dollar as the sole settlement currency for oil required the right contract issued by a country the U.S. can’t immediately invade and conduct a regime change operation in – like in Iraq and Libya.

Russia wins here because now there is a path for its Urals grade to become an international benchmark like WTI and Brent. And since Gazprom prefers to price its long-term gas contracts based on underlying oil prices rather than the more volatile natural gas price, this is also a win in the long run for them.

Gold convertibility is a means to deepen China’s sovereign debt markets by making it less risky to hold Chinese bonds. The lack of true yuan convertibility is the big impediment to people holding them. So, gold convertibility creates a viable exit route.

A Means to an End

Increasing trade between Russia and China has to and will go far beyond energy for its partnership to thrive. The oil trade is simply a means to building the underlying capital flow between the two countries. It makes it easier for Russian businesses to get access to Chinese capital and vice versa.

And this rapid acceleration of bilateral trade is necessary in the face of more severe U.S. economic sanctions against Russia likely coming next month. The way to avoid sanctions is to build alternate means to do business.

We will continue to target Russian banks and financial oligarchs with the idea of curtailing economic growth by cutting out their ability to source overseas capital. And again, this is why China is so important to Russia.

Because the more we push them away the more they can turn to their Chinese partners for assistance and the U.S. doesn’t dare sanction China, no matter how much President Trump bloviates about it.

China announced last week that it would not longer be accumulating U.S. treasury assets. Presumably, this mean that it will no longer recycle its trade surplus with the U.S. to halt appreciation of the Yuan versus the dollar.

Read More @ TomLuongo.me

John Rubino – Argentina, Iran and Oil

by Kerry Lutz, Financial Survival Network:

John Rubino is back… Turmoil has again swept the Argentine economy. Overnight short term rates have been raised to 40 percent as the currency crashes. And to think just last year they were issuing 100 year bonds with a 7.9% coupon. Who were the lucky investors getting that slop? Hopefully not hapless American pension funds. And then there’s Iran. Today, Trump will decide what to do about the agreement with Iran. The smart money is betting he abrogates it, witness the price of oil breaking $70. Is war in the offing?

Click HERE to Listen

China’s control over global oil trade soars to 12% in just two months since yuan denominated market opened in March

by Kenneth Schortgen, The Daily Economist:

China is quickly establishing a proven track record that when they finally decide to open a competing market against the West, it doesn’t take long before they achieve significant dominance in that sector. Case in point was their establishment of a Yuan denominated gold price in early 2016 which in a very short amount of time led the Shanghai Gold Exchange to surpass both London and New York to become the largest physical gold market in the world.

In March of this year China decided to take on the West’s stranglehold on oil pricing and its foundation behind dollar hegemony through the Petrodollar. And in just two short months, this new Yuan denominated oil market has seized 12% of the global oil trade, with an even greater share expected in the near future thanks to the U.S.’s tearing up of the Iran Deal.

The Coming Collapse Of U.S. Shale Oil Production

by Steve St. Angelo, SRSRocco Report:

The death of U.S. Energy Independence will occur when the collapse of shale oil production begins.  And when U.S. shale oil production finally peaks and declines, it could fall much more rapidly than we realize.  The rate at which U.S. shale oil production declines in the future is based on two key factors, remaining reserves, and the oil price.

Before I get into the remaining shale oil reserves, let’s first consider the price.  When the oil price collapsed from mid-2014 to a low at the beginning of 2016, frackers cut drilling considerably.  From March 2015 to September 2016, total U.S. shale oil production fell approximately 600,000 barrels per day (info Shaleprofile.com).  However, this decline was not due to the peak in production, but rather, because the low oil price made drilling shale oil uneconomical.

Californians Learning The Hard Way That Solar Panels Don’t Work In Blackouts

by Alicia Luke, Freedom OutPost:

California residents are learning the hard way their solar panels can’t keep their lights on.

Many residents didn’t understand that their solar panels would stop working when the power was cut because only solar panels that were installed with a battery backup will keep working.

Venezuelan Constituent Assembly Approves Oil-Backed Crypto

by Irina Slav, Safe Haven:

Venezuela’s National Constituent Assembly has finally given the go-ahead to the country’s oil-backed cryptocurrency, El Petro, after initially declaring it unconstitutional. According to a statement by Vice President Tareck El Assaimi, the decree passed by the establishment will “establish the basis for the management of these alternative mechanisms in financial and commercial activities.”

The El Petro was first offered in pre-sale in February, and following the launch President Nicolas Maduro said proceeds had reached US$735 million. The actual sale of the cryptocurrency began a month later, and Maduro claims this has raised US$5 billion to date. There is no evidence of these proceeds yet. The cryptocurrency is backed by 5 billion barrels in oil reserves from the Ayacucho bloc 2 in the Orinoko belt.

Shale Oil Keeps Growing on Trees

by Steve St. Angelo, SRSRocco Report:

The United States Geological Society (USGS) today released a report stating there is an estimated 46.3 billion barrels of theoretical, technically recoverable, as yet undiscovered light tight oil reserves in the Wolfcamp, Bone Springs and Avalon shaley carbonate formations in the Delaware Basin of West Texas. Shale oil, it seems, keeps growing on trees.

NOTE:  Article written by Mike Shellman on Dec 6th at the OilyStuffblog.com

Future U.S. Oil Production Will Collapse Just As Quickly As It Increased

by Steve St. Angelo, SRSrocco:

While U.S. oil production reached a new peak of 10.25 million barrels per day, the higher it goes, the more breathtaking will be the inevitable collapse.  Thus, as the mainstream media touts the glorious new record in U.S. production that has both surpassed its previous peak in 1970 and Saudi Arabia’s current oil production, it’s a bittersweet victory.

Why?  There are two critical reasons the current record level of U.S. oil production won’t last and is also, a house of cards.  First of all, oil production profiles tend to be somewhat symmetrical.  They rise and fall in the same manner.  While this doesn’t happen in every country or every oil field, we do see similar patterns.  For example, this similar trend is taking place in both Argentina and Norway:

Here we can see that oil production increased, peaked and declined in a similar pattern in both Argentina and Norway.  However, many countries had their domestic oil industries impacted by wars, geopolitical events, and or enhanced oil recovery techniques that have resulted in altered production profiles.  Regardless, the United States experienced a symmetrical oil production profile from 1930 to 2007:

As we can see in the chart, U.S. oil production from 1930 to 2007 increased and then declined in the same fashion.  On the other hand, the new Shale Oil Production trend is much different.  What took 23 years for U.S. oil production to double from 5 million barrels per day (mbd) in 1947 to a peak of nearly 10 mbd in 1970, was accomplished in less than a decade with the new shale oil industry.  Total U.S. oil production doubled from 5 mbd in 2009 to over 10 mbd currently.

For those Americans or delusional individuals who believe the U.S. oil industry will be able to continue producing a record amount of oil for the next several decades, you have no idea about the financial carnage taking place in the U.S. shale oil industry.  This leads me to the second reason.  The U.S. Shale Industry hasn’t made any money producing oil since the industry took off in 2008.  And it’s even worse than that.  Not only have they not made any money, but they have also spent a lot of investor money (most that will never be returned) and added a massive amount of debt to their balance sheets.

Read More @ SRSrocco.com

GOLD DOWN $2.45 TO $1352.95/SILVER DOWN 8 CENTS TO $16.84

by Harvey Organ, Harvey Organ Blog:

HUGE EFP TRANSFER IN GOLD OF 22,672 CONTRACTS/SILVER EFP ISSUANCE: 1731 CONTRACTS/THE KEY USA/YEN CROSS PLUMMETS TO CLOSE TO 106.00/TWO BIG USA DATA POINTS TODAY; PPI IS SCORCHING HOT AND THAT MEANS INFLATION AROUND THE CORNER/INDUSTRIAL PRODUCTION FALTERS MEANING STAGFLATION MAY BE UPON US/MORE SWAMP STORIES FOR YOU TONIGHT

GOLD: $1352.95 DOWN $2.45

Silver: $16.84 DOWN 8 cents

Closing access prices:

Gold $1353.50

silver: $16.88

SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)

SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)

SHANGHAI FIRST GOLD FIX: $XXXX DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME: $XXXX

PREMIUM FIRST FIX: $3.78

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SECOND SHANGHAI GOLD FIX: $XXXX

NY GOLD PRICE AT THE EXACT SAME TIME: $1333.50

discount of Shanghai 2nd fix/NY:$1.20

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LONDON FIRST GOLD FIX: 5:30 am est $1353.70

NY PRICING AT THE EXACT SAME TIME: $1353.90

LONDON SECOND GOLD FIX 10 AM: $1352.45

NY PRICING AT THE EXACT SAME TIME. $1351.900

For comex gold:

FEBRUARY/

NUMBER OF NOTICES FILED TODAY FOR FEBRUARY CONTRACT: 1 NOTICE(S) FOR 100 OZ.

TOTAL NOTICES SO FAR:1784 FOR 178400 OZ (5.5489 TONNES),

For silver:

FEBRUARY

1 NOTICE(S) FILED TODAY FOR

5,000 OZ/

Total number of notices filed so far this month: 308 for 1,540,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: BID $9638/OFFER $9714: up $198(morning)

Bitcoin: BID/ $99029/offer $9999: up $492  (CLOSING/5 PM)

 

end

Let us have a look at the data for today\

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In silver, the total open interest ROSE BY A HUGE SIZED 3070 contracts from 194,056  RISING TO 197,126 WITH  YESTERDAY’S HUGE  35 CENT GAIN IN SILVER PRICING.  WE  HAD ZERO COMEX LIQUIDATION. HOWEVER, WE WERE AGAIN NOTIFIED THAT WE HAD ANOTHER GOOD SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:  1731 EFP’S FOR MARCH AND AND 0 EFP’S FOR MAY AND ZERO FOR ALL  OTHER MONTHS  AND THUS TOTAL ISSUANCE OF 1731 CONTRACTS.  WITH THE TRANSFER OF 1731 CONTRACTS, WHAT THE CME IS STATING IS THAT THERE IS NO SILVER (OR GOLD) TO BE DELIVERED UPON AT THE COMEX AS THEY MUST EXPORT THEIR OBLIGATION TO LONDON. ALSO KEEP IN MIND THAT THERE CAN BE A DELAY OF 24 HRS IN THE ISSUING OF EFP’S. THE 1731 CONTRACTS TRANSLATES INTO 8.915 MILLION OZ DESPITE  WITH THE CONTINUAL DROP IN OPEN INTEREST IN SILVER AT THE COMEX.

ACCUMULATION FOR EFP’S/SILVER/ STARTING FROM FIRST DAY NOTICE/FOR MONTH OF FEBRUARY:

36,852 CONTRACTS (FOR 12 TRADING DAYS TOTAL 36,852 CONTRACTS OR 184.26 MILLION OZ: AVERAGE PER DAY: 3071 CONTRACTS OR 15.355 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH:  184.26 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 26/32% OF ANNUAL GLOBAL PRODUCTION

ACCUMULATION IN YEAR 2018 TO DATE SILVER EFP’S:  432.60 MILLION OZ.

ACCUMULATION FOR JAN 2018: 236.879 MILLION OZ

RESULT: A HUGE SIZED GAIN IN OI SILVER COMEX WITH THE HUGE  35 CENT GAIN IN SILVER PRICE.  WE ALSO HAD A GOOD SIZED EFP ISSUANCE OF 1731 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER . FROM THE CME DATA 1731 EFP’S  FOR  MONTHS MARCH AND MAY WERE ISSUED FOR TODAY  FOR A DELIVERABLE FORWARD CONTRACT OVER IN LONDON WITH A FIAT BONUS.   WE GAINED  4801 OICONTRACTS i.e. 1731 open interest contracts headed for London (EFP’s) TOGETHER WITH A INCREASE OF 3070  OI COMEX CONTRACTS. AND ALL OF THIS HAPPENED WITH THE HUGE RISE IN PRICE OF SILVER OF  35 CENTS AND A CLOSING PRICE OF $16.92 WITH RESPECT TO YESTERDAY’S TRADING. YET WE STILL HAVE A FAIR AMOUNT OF SILVER STANDING AT THE COMEX.

In ounces AT THE COMEX, the OI is still represented by just UNDER 1 BILLION oz i.e. 0.986 BILLION TO BE EXACT or 141% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT FEBRUARY MONTH/ THEY FILED: 1 NOTICE(S) FOR 5,000 OZ OF SILVER

In gold, the open interest  ROSE BY A HUMONGOUS 16,637 CONTRACTS UP TO 528,382 WITH THE GIGANTIC SIZED RISE IN PRICE OF GOLD WITH YESTERDAY’S TRADING ($27.40). HOWEVER, IN ANOTHER DEVELOPMENT, WE RECEIVED THE TOTAL NUMBER OF GOLD EFP’S ISSUED FOR TODAY AND IT TOTALED AN ATMOSPHERIC SIZED  22,672 CONTRACTS OF WHICH  APRIL SAW THE ISSUANCE OF 21,922 CONTRACTS AND  JUNE SAW THE ISSUANCE OF 750 CONTRACTS AND THEN ALL OTHER MONTHS ZERO.    The new OI for the gold complex rests at 528,382. ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. DEMAND FOR GOLD INTENSIFIES GREATLY AS WE CONTINUE TO WITNESS A HUGE NUMBER OF EFP TRANSFERS TOGETHER WITH THE MASSIVE INCREASE IN GOLD COMEX OI  TOGETHER WITH  THE TOTAL AMOUNT OF GOLD OUNCES STANDING FOR FEBRUARY COMEX. EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER (BIG RISE IN BOTH GOFO AND SIFO) AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES. IN ESSENCE TODAY DESPITE YESTERDAY’S TRADING IN GOLD,  WE HAVE A GAIN OF 39,309  CONTRACTS: 16,637 OI CONTRACTS INCREASED AT THE COMEX AND A GIGANTIC SIZED  22,672 OI CONTRACTS WHICH NAVIGATED OVER TO LONDON.(39,309 oi gain in CONTRACTS EQUATES TO 122.26 TONNES)

YESTERDAY, WE HAD 6481 EFP’S ISSUED.

ACCUMULATION OF EFP’S/ GOLD(EXCHANGE FOR PHYSICAL) FOR THE MONTH OF FEBRUARY STARTING WITH FIRST DAY NOTICE: 131,430 CONTRACTS OR 13,143,000  OZ OR 408.80 TONNES (12 TRADING DAYS AND THUS AVERAGING: 10,952 EFP CONTRACTS PER TRADING DAY OR 1,095,200 OZ/ TRADING DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS :   SO FAR THIS MONTH IN 12 TRADING DAYS: IN  TONNES: 408.80 TONNES

TOTAL ANNUAL GOLD PRODUCTION, 2017, THROUGHOUT THE WORLD EX CHINA EX RUSSIA: 2200 TONNES

THUS EFP TRANSFERS REPRESENTS 408.80/2200 x 100% TONNES =  18.58% OF GLOBAL ANNUAL PRODUCTION SO FAR IN FEBRUARY ALONE.

ACCUMULATION OF GOLD EFP’S YEAR 2018 TO DATE:  1042.2 TONNES

ACCUMULATION OF GOLD EFP’S FOR JANUARY 2018: 653.22  TONNES

Result: A  HUGE SIZED INCREASE IN OI AT THE COMEX WITH THE HUGE SIZED GAIN IN PRICE IN GOLD TRADING YESTERDAY ($27.40). IT IS WITHOUT A DOUBT THAT MANY OF THE DEPARTED COMEX LONGS  RECEIVED THEIR PRIVATE EFP CONTRACT  FOR EITHER  APRIL OR JUNE. HOWEVER, WE HAD ANOTHER GOOD SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 22,672 CONTRACTS AS THESE HAVE ALREADY BEEN NEGOTIATED AND CONFIRMED.   THERE OBVIOUSLY DOES NOT SEEM TO BE MUCH PHYSICAL GOLD AT THE COMEX AND YET WE ALSO OBSERVED A HUGE DELIVERY MONTH FOR THE MONTH OF DECEMBER. I GUESS IT EXPLAINS THE HUGE ISSUANCE OF EFP’S…THERE IS HARDLY ANY GOLD PRESENT AT THE GOLD COMEX FOR DELIVERY PURPOSES. IF YOU TAKE INTO ACCOUNT THE 22,672 EFP CONTRACTS ISSUED, WE HAD A NET GAIN IN OPEN INTEREST OF 39,309 contracts ON THE TWO EXCHANGES:

22,672 CONTRACTS MOVE TO LONDON AND  16,637 CONTRACTS INCREASED AT THE COMEX. (in tonnes, the GAIN in total oi equates to 122.26 TONNES).

we had: 1 notice(s) filed upon for 100 oz of gold.

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With respect to our two criminal funds, the GLD and the SLV:

GLD

WITH GOLD DOWN $2.45 TODAY, NO CHANGE IN GOLD INVENTORY AT THE GLD/

Inventory rests tonight: 823.66 tonnes.

SLV/ 

NO CHANGES IN SILVER INVENTORY AT THE SLV/ AGAIN WITH TODAY’S HUGE RISE IN SILVER PRICE:   NO CHANGE IN INVENTORY

/INVENTORY RESTS AT 314.045 MILLION OZ/

end

First, here is an outline of what will be discussed tonight:

1. Today, we had the open interest in silver ROSE BY A HUGE 3070  contracts from 194,056 UP TO 197,126 (AND now A LITTLE FURTHER TO THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) DESPITE  THE HUGE SIZED FALL  IN PRICE OF SILVER  (35 CENTS WITH RESPECT TO  YESTERDAY’S TRADING).   OUR BANKERS USED THEIR EMERGENCY PROCEDURE TO ISSUE ANOTHER GOOD 1731 PRIVATE EFP’S FOR MARCH AND 0 EFP CONTRACTS OR MAY  (WE DO NOT GET A LOOK AT THESE CONTRACTS AS IT IS PRIVATE BUT THE CFTC DOES AUDIT THEM) AND 0 EFP’S FOR ALL OTHER MONTHS .  EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON. WE HAD SOME COMEX SILVER COMEX LIQUIDATION. IF WE TAKE THE  OI GAIN AT THE COMEX OF  3070 CONTRACTS TO THE 1731 OI TRANSFERRED TO LONDON THROUGH EFP’S, WE OBTAIN A GAIN OF  4801  OPEN INTEREST CONTRACTS .  WE STILL HAVE A GOOD AMOUNT OF SILVER OUNCES THAT ARE STANDING FOR METAL IN JANUARY (SEE BELOW). THE NET GAIN TODAY IN OZ ON THE TWO EXCHANGES:  24.00 MILLION OZ!!!

RESULT: A HUGE SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE HUGE SIZED GAIN OF 35 CENTS IN PRICE (WITH RESPECT TO YESTERDAY’S TRADING ). BUT WE ALSO HAD ANOTHER GOOD 1731 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE GOOD  SIZED AMOUNT OF SILVER OUNCES STANDING FOR FEBRUARY, DEMAND FOR PHYSICAL SILVER INTENSIFIES AS WE WITNESS MAJOR BANK SHORT COVERING ACCOMPANIED BY INCREASES IN GOFO AND SIFO RATES INDICATING SCARCITY.

(report Harvey)

.

2.a) The Shanghai and London gold fix report

(Harvey)

2 b) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

)Late WEDNESDAY night/THURSDAY morning: Shanghai closed /Hang Sang CLOSED UP 599.83 or 1.97% / The Nikkei closed UP 310.81 POINTS OR 1.47%/Australia’s all ordinaires CLOSED UP 1.16%/Chinese yuan (ONSHORE) closed UP at 6.3415/Oil DOWN to 60.58 dollars per barrel for WTI and 63.84 for Brent. Stocks in Europe OPENED DEEPLY IN THE GREEN  .   ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.3415. OFFSHORE YUAN CLOSED UP AGAINST  THE ONSHORE YUAN AT 6.2980//ONSHORE YUAN A LITTLE STRONGER AGAINST THE DOLLAR/OFF SHORE A LOT STRONGER TO THE DOLLAR/. THE DOLLAR (INDEX) IS A LOT WEAKER AGAINST ALL MAJOR CURRENCIES .  CHINA IS  HAPPY TODAY AS THEY BEGIN THEIR NEW YEAR ONE WEEK HOLIDAY TOMORROW

Read More @ HarveyOrganBlog.com