Tuesday, December 11, 2018

360 video: Take a look around the London Silver Vaults

from Silver Seek:

Deep beneath Chancery Lane in central London are the London Silver Vaults, containing the largest retail collection of antique silver in the world.

Use our 360 video to discover it for yourself.

Something Wicked This Way Comes: Economic Meltdown

from GoldSilver (w/ Mike Maloney):

https://www.youtube.com/watch?v=7X3B0TfDLXc

HUGE VOLATILE DAY: YOUR KEY INDICATORS PREDICTING TROUBLE AHEAD: USA 10 YR TREASURY BOND YIELD: 2.85612

by Harvey Organ, Harvey Organ Blog:

CLOSING PRICE OF VIX: 28.85 BOTH AT DANGEROUS LEVELS/GOLD DOWN $4.70 TO $1312.60/SILVER DOWN 18 CENTS TO $16.20/USA PASSES A 2 YR BUDGET DEAL WHICH WILL ADD 2 TRILLION DOLLARS TO ITS DEFICIT/MOODY’S WARNS THE USE THAT IT MIGHT DOWNGRADE USA DEBT/CHINA ANNOUNCES THAT IT WILL COMMENCE ITS OIL YUAN CONTRACT SHORTLY AS WELL AS THE FUTURES CONTRACT WHICH WILL BEGIN ON MARCH 23.

GOLD: $1312.60 DOWN $4.70

Silver: $16.20 DOWN 18 cents

Closing access prices:

Gold $1316.80

silver: $16.36

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: $1329.50 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME: $1318.00

PREMIUM FIRST FIX: $9.80

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

SECOND SHANGHAI GOLD FIX: $1329.52

NY GOLD PRICE AT THE EXACT SAME TIME: $1320.25

Premium of Shanghai 2nd fix/NY:$9.27

SHANGHAI REJECTS  NY /LONDON PRICING OF GOLD

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

LONDON FIRST GOLD FIX: 5:30 am est $1316.05

NY PRICING AT THE EXACT SAME TIME: $1315.80

LONDON SECOND GOLD FIX 10 AM: $1314.10

NY PRICING AT THE EXACT SAME TIME. $1314.20

For comex gold:

FEBRUARY/

NUMBER OF NOTICES FILED TODAY FOR FEBRUARY CONTRACT: 141 NOTICE(S) FOR 14100 OZ.

TOTAL NOTICES SO FAR:1733 FOR 173300 OZ (5.3903 TONNES),

For silver:

jANUARY

0 NOTICE(S) FILED TODAY FOR

nil OZ/

Total number of notices filed so far this month: 199 for 995,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: BID $8297/OFFER $8368: up $93(morning)

Bitcoin: BID/ $8311/offer $8381: UP $107  (CLOSING/5 PM)

 

end

 

FOR THOSE OF YOU WHO THINK THAT MARKETS ARE NOT MANIPULATED, I HAVE A WONDERFUL PIECE OF PROPERTY IN THE EVERGLADES TO SELL

 

TODAY, THE MANIPULATION WAS SO OBVIOUS.

Let us have a look at the data for today\

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

In silver, the total open interest FELL BY A HUGE SIZED 9371 contracts from 202,505  FALLING TO 193,135 DESPITE  YESTERDAY’S SMALL 8 CENT GAIN IN SILVER PRICING.  WE  HAD CONSIDERABLE COMEX LIQUIDATION. HOWEVER, WE WERE AGAIN NOTIFIED THAT WE HAD ANOTHER HUGE SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:  3215 EFP’S FOR MARCH AND AND 0 EFP’S FOR MAY AND ZERO FOR ALL  OTHER MONTHS  AND THUS TOTAL ISSUANCE OF 3215 CONTRACTS.  WITH THE TRANSFER OF 3215 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 3215 CONTRACTS TRANSLATES INTO 16.08 MILLION OZ.  WITH THE HUGE DROP IN OPEN INTEREST AT THE COMEX. WE SHOULD EXPECT BIGGER GAINS IN EFP TRANSFERS IN THE NEXT FEW DAYS WITH THE LARGE LOSS AT THE COMEX AS LONGS GAVE UP SEEKING METAL AT THIS EXCHANGE.

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

24,531 CONTRACTS (FOR 8 TRADING DAYS TOTAL 24,531 CONTRACTS OR 122.655 MILLION OZ: AVERAGE PER DAY: 3066 CONTRACTS OR 15.331 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH:  122.655 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 17.5% OF ANNUAL GLOBAL PRODUCTION

ACCUMULATION IN YEAR 2018 TO DATE SILVER EFP’S:  357.59 MILLION OZ.

ACCUMULATION FOR JAN 2018: 236.879 MILLION OZ

RESULT: A HUGE SIZED LOSS IN OI SILVER COMEX DESPITE THE SMALL  8 CENT GAIN IN SILVER PRICE.  WE HOWEVER HAD A GOOD SIZED EFP ISSUANCE OF 3215 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 3214 EFP’S  FOR  MONTHS MARCH AND MAY WERE ISSUED FOR TODAY  FOR A DELIVERABLE FORWARD CONTRACT OVER IN LONDON WITH A FIAT BONUS.  WITH YESTERDAY’S TRADING WE LOST  6156 OI CONTRACTS i.e. 3215 open interest contracts headed for London (EFP’s) TOGETHER WITH A DECREASE OF 9371  OI COMEX CONTRACTS. AND ALL OF THIS HAPPENED WITH THE SMALL RISE IN PRICE OF SILVER OF  8 CENTS AND A CLOSING PRICE OF $16.38 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. 0.965 BILLION TO BE EXACT or 138% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT FEBRUARY MONTH/ THEY FILED: 0 NOTICE(S) FOR NIL OZ OF SILVER

In gold, the open interest FELL  BY ANOTHER CONSIDERABLE 7,499 CONTRACTS DOWN TO 519,362  DESPITE THE GOOD SIZED RISE IN PRICE OF GOLD WITH YESTERDAY’S TRADING ($5.20).HOWEVER, IN ANOTHER DEVELOPMENT, WE RECEIVED THE TOTAL NUMBER OF GOLD EFP’S ISSUED FOR TODAY AND IT TOTALED A HUGE SIZED  14,716 CONTRACTS OF WHICH  APRIL SAW THE ISSUANCE OF 14,716 CONTRACTS AND  JUNE SAW THE ISSUANCE OF 0 CONTRACTS AND THEN ALL OTHER MONTHS ZERO.    The new OI for the gold complex rests at 517,708. 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 7217  CONTRACTS: 7499 OI CONTRACTS DECREASED AT THE COMEXAND A STRONG SIZED  14,716 OI CONTRACTS WHICH NAVIGATED OVER TO LONDON.(7219 oi gain in CONTRACTS EQUATES TO 22.45 TONNES)

YESTERDAY, WE HAD 13,622 EFP’S ISSUED.

ACCUMULATION OF EFP’S/ GOLD(EXCHANGE FOR PHYSICAL) FOR THE MONTH OF FEBRUARY STARTING WITH FIRST DAY NOTICE: 91,370 CONTRACTS OR 9,137,000  OZ OR 284.19 TONNES (8 TRADING DAYS AND THUS AVERAGING: 11,421 EFP CONTRACTS PER TRADING DAY OR 1,142,100 OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS :   SO FAR THIS MONTH IN 8 TRADING DAYS: IN  TONNES: 284.19 TONNES

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

THUS EFP TRANSFERS REPRESENTS 284.19/2200 x 100% TONNES =  12.91% OF GLOBAL ANNUAL PRODUCTION SO FAR IN FEBRUARY ALONE.

ACCUMULATION OF GOLD EFP’S YEAR 2018 TO DATE:  917.72 TONNES

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

Result: A  HUGE SIZED DECREASE IN OI AT THE COMEX DESPITE THE GOOD SIZED RISE IN PRICE IN GOLD TRADING YESTERDAY ($5.20). 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: 14,716 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 14,716 EFP CONTRACTS ISSUED, WE HAD A NET GAIN IN OPEN INTEREST OF 7217 contracts ON THE TWO EXCHANGES:

14,716 CONTRACTS MOVE TO LONDON AND  7499 CONTRACTS DECREASED AT THE COMEX. (in tonnes, the GAIN in total oi equates to 22.45 TONNES).

we had: 141 notice(s) filed upon for 14100 oz of gold.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD

WITH TODAY’S TURMOIL, THE CROOKS WITHDREW ANOTHER 2 TONNES OF GOLD FROM THE GLD/INVENTORY RESTS AT 826.31

Inventory rests tonight: 826.31 tonnes.

SLV/

NO CHANGES IN SILVER INVENTORY AT THE SLV/ AGAIN WITH TODAY’S TURMOIL   NO CHANGE IN INVENTORY

/INVENTORY RESTS AT 314.045 MILLION OZ/

can someone please explain why GLD behaves differently to SLV????

end

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

1. Today, we had the open interest in silver FELL BY A GIGANTIC 9371 contracts from 202,506 DOWN TO 193,135 (AND now A LITTLE FURTHER TO THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) DESPITE  THE GOOD SIZED  RISE  IN PRICE OF SILVER  (8 CENTS WITH RESPECT TO  YESTERDAY’S TRADING).   OUR BANKERS USED THEIR EMERGENCY PROCEDURE TO ISSUE ANOTHER GOOD 3215 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 LOSS AT THE COMEX OF  9371 CONTRACTS TO THE 3215 OI TRANSFERRED TO LONDON THROUGH EFP’S, SURPRISINGLY WE OBTAIN A LOSS OF 6156  OPEN INTEREST CONTRACTS DESPITE YESTERDAY’S GAIN IN SILVER PRICE.  WE STILL HAVE A GOOD AMOUNT OF SILVER OUNCES THAT ARE STANDING FOR METAL IN JANUARY (SEE BELOW). THE NET LOSS TODAY IN OZ ON THE TWO EXCHANGES:  30.78 MILLION OZ!!!

RESULT: A HUMONGOUS SIZED DECREASE IN SILVER OI AT THE COMEX DESPITE THE GOOD SIZED RISE OF 8 CENTS IN PRICE (WITH RESPECT TO YESTERDAY’S TRADING ). BUT WE ALSO HAD ANOTHER GOOD 3215 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

i)Late THURSDAY night/FRIDAY morning: Shanghai closed DOWN 132.19 points or 4.05% /Hang Sang CLOSED DOWN 943.85 or 3.10% / The Nikkei closed DOWN 508,24 POINTS OR 2.32%/Australia’s all ordinaires CLOSED DOWN 0.96%/Chinese yuan (ONSHORE) closed UP at 6.3041/Oil DOWN to 60.47 dollars per barrel for WTI and 64.30 for Brent. Stocks in Europe OPENED DEEPLY IN THE RED .   ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.3040. OFFSHORE YUAN CLOSED DOWN AGAINST  THE ONSHORE YUAN AT 6.3244//ONSHORE YUAN A LOT STRONGER AGAINST THE DOLLAR/OFF SHORE A LOT STRONGER TO THE DOLLAR/. THE DOLLAR (INDEX) IS  MUCH STRONGER AGAINST ALL MAJOR CURRENCIES EXCEPT CHINA YUAN.  CHINA IS NOT TOO  HAPPY TODAY.(INTERVENTION STRONGER CURRENCY AND WEAK MARKETS IN CHINA AND THROUGHOUT THE GLOBE

i

Read More @ HarveyOrganBlog.com

New Wyoming Legal Tender Law Recognizes Gold and Silver as Money

0

by Peter Schiff, Schiff Gold:

Gold and silver are money. But most governments treat precious metals like a commodity. They don’t accept it as payment. Worse than that, they tax it. Think about the absurdity of this policy. You don’t tax money!

Fortunately, we’re beginning to see a shift. Many states are repealing taxes on gold and silver, and treating precious metals more like money. Wyoming is the latest state to reform its laws.

These policies not only ease the burden on investors, it opens the door to use gold and silver in everyday transactions, a foundational step for the people to undermine the Federal Reserve’s monopoly on money.

Last week, a Wyoming bill that defines gold and silver specie as legal tender and eliminates all taxes levied on it became law without the governor’s signature.

“This Is Where The Next Financial Crisis Will Come From” – Deutsche Bank

0

by Mark O’Byrne, GoldCore:

In an extensive, must-read report published on Monday by Deutsche Bank’s Jim Reid, the credit strategist unveiled an extensive analysis of the “Next Financial Crisis”, and specifically what may cause it, when it may happen, and how the world could respond assuming it still has means to counteract the next economic and financial crash.

In our first take on the report yesterday, we showed one key aspect of the “crash” calculus: between bonds and stocks, global asset prices are the most elevated they have ever been.

With that baseline in mind, what happens next should be obvious: unless one assumes that the laws of economics and finance are irreparably broken, a deep recession and a market crash are inevitable, especially after the third biggest and second longest central bank-sponsored bull market in history.

But what will cause it, and when will it happen?

Needless to say, these are the questions that everyone in capital markets today wants answered. And while nobody can claim to know the right answer, here are some excerpts from what DB’s Jim Reid, one of the best strategists on Wall Street, thinks will take place.

Below we present the key excerpts from his must read report;

* * *

We think that the post Bretton Woods (1971-) global financial system remains vulnerable to financial crises. A simple internet search of financial crises through history (Figure 1, LHS chart) confirms that the frequency has increased over this period. Examples include the UK secondary banking crisis (1975), the two Oil shocks (1970s), numerous EM defaults (mid-1980s), US Savings and Loans mass failures (late 80s/early 90s), various Nordic financial crises (late 80s), Japanese stock bubble bursting (1990-), various ERM shocks/devaluations (1992), the Mexican Tequila crisis (1994), the Asian crisis (1997), the Russian & LTCM crisis (1998), the Dot.com crash (2000), the various accounting scandals (02/03), the GFC (08/09) and the Euro Sovereign crisis (10-12).

A more quantitative search backs this up (Figure 1, RH chart). We show the number of DM countries ({5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}) in our sample back to 1800 experiencing one of the following on a YoY basis; -15{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} Equities, -10{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} FX, -10{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} Bond move, a sovereign default, or +10{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} inflation. This is our crisis/shock indicator. 0{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} equals no country with one of these conditions met, 100{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} equals all in our sample with one being met.

It would therefore take a huge leap of faith to say that crises won’t continue to be a regular feature of the current financial system that has been in place since the early 1970s. The near exponential growth of finance and its liberalisation since this point has encouraged this trend.

Read More @ goldcore.com

Looks Like The COT Report Wins Again, As Gold And Silver Fall Sharply

0

by John Rubino, Dollar Collapse:

Eventually physical demand for precious metals will swamp the games being played in the paper (i.e., futures contract) markets. So every time the commitment of traders report (COT), which tracks those paper games, turns bearish while gold and silver continue to rise, the precious metals community watches hopefully for signs that fundamentals are at long last about to ignite a massive bull run.

The past couple of months followed this script (see Lightening-Fast COT Reversal: Now Fairly Bearish For Gold And Silver) as gold and silver kept rising for a while in the face of growing resistance in the paper market.

Here’s a more detailed explanation from Hebba Investments via Seeking Alpha:

The latest Commitment of Traders (COT) report, showed another rise in speculative longs for the EIGHTH straight
week. This two-month streak with the net speculative position of gold traders rising every week, has just tied the record-longest gains streak achieved – in the history of the COT report (going back to 2006) it has never risen for NINE consecutive weeks. History for COT nerds (like myself) could be made next week if gold speculators continue their torrid streak.

About the COT Report

The COT report is issued by the CFTC every Friday, to provide market participants a breakdown of each Tuesday’s open interest for markets in which 20 or more traders hold positions equal to or above the reporting levels established by the CFTC. In plain English, this is a report that shows what positions major traders are taking in a number of financial and commodity markets.

Though there is never one report or tool that can give you certainty about where prices are headed in the future, the COT report does allow the small investors a way to see what larger traders are doing and to possibly position their positions accordingly. For example, if there is a large managed money short interest in gold, that is often an indicator that a rally may be coming because the market is overly pessimistic and saturated with shorts – so you may want to take a long position.

There are many ways to read the COT report, and there are many analysts that focus specifically on this report (we are not one of them) so we won’t claim to be the exports on it. What we focus on in this report is the “Managed Money” positions and total open interest as it gives us an idea of how much interest there is in the gold market and how the short-term players are positioned.

Moving on, the net position of all gold traders can be seen below:

 

Source: GoldChartsRUS

The red-line represents the net speculative gold positions of money managers (the biggest category of speculative trader), and as investors can see, we saw the net position of speculative traders increase by 18,000 contracts to 250,000 net speculative long contracts. We are now approaching some of the all-time highs in gross and net speculative positions – so gold investors need to be wary.

As for silver, the action week’s action looked like the following:

 

Source: GoldChartsRUS

The red line which represents the net speculative positions of money managers showed an increase in the net-long silver speculator position as their total net position increased by around 10,000 contracts from a net speculative short position to a net long position of 62,000. Silver speculators are a bit further away from their all-time highs than gold speculators, but are still moving up strongly.

We have been Extremely Bearish the last few week and have been dead wrong in our short-term call. When that happens, you have to re-evaluate your call and make sure that the logic is still valid to the situation.

Our bearish thesis was primarily based on the fact that speculative positions are extremely bullish levels, while physical demand remains at some of the lowest levels seen in the last few years. Additionally, the Federal Reserve seems to be tightening monetary policy, while some of the risk-on events (North Korea, US Debt Ceiling, etc.) seem to be calming down. None of this has changed.

Read More @ DollarCollapse.com

PAUL MANAFORT ARRESTED TODAY ON 12 COUNTS OF TAX EVASION AND MONEY LAUNDERING

by Harvey Organ, Harvey Organ Blog:

GOLD REBOUNDS HIGHER BY $5.30 AND SILVER IS UP BY 8 CENTS/CHINA’S STOCK MARKET AND BOND MARKET FALL BADLY WITH THE YIELD CURVE ALREADY INVERTED SIGNIFYING THEIR ECONOMY IS SLOWING DOWN

GOLD: $1276.15 UP $5.30

Silver: $16.83 UP 8  cents

Closing access prices:

Gold $1276.20

silver: $16.86

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: $1287.00 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME:  $1271.87

PREMIUM FIRST FIX:  $15.13(premiums getting larger)

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

SECOND SHANGHAI GOLD FIX: $1288.17

NY GOLD PRICE AT THE EXACT SAME TIME: $1270.30

Premium of Shanghai 2nd fix/NY:$17.87 PREMIUMS GETTING LARGER)

CHINA REJECTS NEW YORK PRICING OF GOLD!!!!  

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

LONDON FIRST GOLD FIX:  5:30 am est  $1272.75

NY PRICING AT THE EXACT SAME TIME: $1271.15

LONDON SECOND GOLD FIX  10 AM: $1272.00

NY PRICING AT THE EXACT SAME TIME. 1273.70 ??

For comex gold:

OCTOBER/

NOTICES FILINGS TODAY FOR OCT CONTRACT MONTH: 82 NOTICE(S) FOR  8200  OZ.

TOTAL NOTICES SO FAR: 3332  FOR 333,200 OZ  (10.326TONNES)

For silver:

OCTOBER

 

 1 NOTICE(S) FILED TODAY FOR

 

5,000  OZ/

Total number of notices filed so far this month: 1095 for 5,475,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin:  $6192 bid /$6212 offer up $458.00  (MORNING)

BITCOIN CLOSING;$6097 BID:6117. OFFER  UP $362.00

end

 

Tomorrow is options expiry for the LBMA/London contracts and they generally expire at around 9 am to 11 am. Tomorrow is also first day notice for gold and silver comex and November is a non active month for both.

Let us have a look at the data for today

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

In silver, the total open interest SURPRISINGLY ROSE BY A good sized 2210 contracts from  194 ,053 UP TO 195,983 DESPITE  FRIDAY’S TRADING IN WHICH SILVER FELL BY 5 CENTS.  THE CROOKS ARE STILL HAVING AN AWFUL TIME TRYING TO COVER THEIR MASSIVE SILVER SHORTS SO THEY CONTINUE TO TORMENT. THIS IS OPTIONS EXPIRY WEEK FOR BOTH GOLD AND SILVER SO WE MUST EXPECT SOFTNESS IN OUR METAL PRICES UNTIL THE 31ST OF OCTOBER. THEY ARE ALSO TARGETING THE 200 DAY AVERAGE FOR GOLD AT $1266.00

RESULT: A SURPRISING GOOD SIZED RISE IN OI COMEX  WITH THE  5 CENT PRICE LOSS.  OUR BANKERS COULD NOT COVER ANY OF THEIR HUGE SHORTFALL.

 In ounces, the OI is still represented by just UNDER 1 BILLION oz i.e.  0.980 BILLION TO BE EXACT or 140{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of annual global silver production (ex Russia & ex China).

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

In gold, the open interest SURPRISINGLY FELL BY A HUGE 8,635 CONTRACTS DESPITE THE RISE IN PRICE OF GOLD ($2.15) .  The new OI for the gold complex rests at 519,426. THE LOSS OF OI CONTRACTS WAS DUE TO THE ISSUING OF “EMERGENCY” EFP CONTRACTS WHERE A LONG RECEIVES A FIAT BONUS PLUS A DELIVERABLE PRODUCT ON A DIFFERENT EXCHANGE SUCH AS A LONDON FORWARD.  WE SEEMS THAT IN EXCESS OF 8700 EFP CONTRACTS WERE ISSUED AT THIS MONTH END FOR NOVEMBER. 

 

Result: A HUGE SIZED  DECREASE IN OI DESPITE RISE IN PRICE IN GOLD ($2.15).WE HAD CONSIDERABLE EFP’S ISSUED AT MONTH END AS THE CME USES THIS “EMERGENCY” VEHICLE IF NOT GOLD IS AVAILABLE TO BE DELIVERED UPON LONGS AT THE COMEX. 

we had: 82 notice(s) filed upon for 8200  oz of gold.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD:   

STRANGE!! WITH GOLD UP FOR TWO DAYS: , A HUGE CHANGE  in gold inventory at the GLD/ A WITHDRAWAL OF 1.18 TONNES OF GOLD FROM THE GLD

Inventory rests tonight: 850.77 tonnes.

SLV

STRANGE:  WITH SILVER UP THESE PAST TWO TRADING DAYS WE HAD A BIG WITHDRAWAL IN SILVER INVENTORY AT THE SLV:  1.133 MILLION OZ

INVENTORY RESTS AT 319.155 MILLION OZ

 

end

.

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

1. Today, we had the open interest in silver SURPRISINGLY ROSE  BY A CONSIDERABLE 2210 contractsfrom 193,773  UP TO 195,983(AND now A LITTLE CLOSER TO THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) .  OUR BANKERS WERE AGAIN UNSUCCESSFUL IN THEIR ATTEMPT TO COVER ANY OF THEIR SILVER SHORTS.

RESULT:  A SURPRISING GOOD SIZED INCREASE IN SILVER OI AT THE COMEX DESPITE THE 5 CENT LOSS IN PRICE  (WITH RESPECT TO YESTERDAY’S TRADING). OUR BANKER FRIENDS WERE UNSUCCESSFUL IN THEIR ATTEMPT TO COVER ANY OF OUR SILVER SHORTS . EXPECT SOFTNESS FOR THE REST OF THE WEEK AS WE ARE NOW IN OPTIONS EXPIRY WEEK. NO EFP’S WERE ISSUED FOR THE UPCOMING NOVEMBER CONTRACT

(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

i)Late SUNDAY night/MONDAY morning: Shanghai closed DOWN 26.47 points or .77{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} /Hang Sang CLOSED DOWN 102.66 pts or 0.36{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} / The Nikkei closed UP 3.22 POINTS OR 0.01/Australia’s all ordinaires CLOSED UP 0.14{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Chinese yuan (ONSHORE) closed UP  at 6.645/Oil UP to 53.97 dollars per barrel for WTI and 60.52 for Brent. Stocks in Europe OPENED  MIXED  .  ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.6450. OFFSHORE YUAN CLOSED AT VALUE OF THE ONSHORE YUAN AT 6.644 AND //ONSHORE YUAN  STRONGER AGAINST THE DOLLAR/OFF SHORE STRONGER TO THE DOLLAR/. THE DOLLAR (INDEX) IS WEAKER AGAINST ALL MAJOR CURRENCIES. CHINA IS HAPPY TODAY.

Read More @ HarveyOrganBlog.com

MAJOR GOLD MARKET INDICATOR SHIFT: Trouble For Future Supply

by Steve St. Angelo, SRSrocco:

One of the major gold market indicators experienced a major shift in 2017.  If we look at this gold indicator over the past several years, this recent trend reversal suggests something has fundamentally changed in the gold market… and in a BIG WAY.

According to the World Gold Council, global gold scrap supply declined significantly during the first half of 2017 even though the price of gold increased.  Global gold scrap supply plunged to 563 metric tons (mt) in the first half of 2017 compared to 702 mt during the same period last year:

Now, what is interesting about this decline in gold scrap supply is that it took place even though the gold price increased to $1,238 versus $1,221 during the same period last year.  Normally, gold scrap supply increases with price.  This actually took place when the price of gold increased from $1,075 in 1H 2015 to $1,221 during 1H of 2016.  As the gold price jumped nearly $150 during this period, global gold scrap supply increased from 617 mt to 702 mt.  Normally, when the gold price increases, individuals take advantage by selling old jewelry or scrap into the market.

However, this normal trend changed in 2017 as global gold scrap supply declined 20{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} to 563 mt, even as the gold price increased.  This suggests that the market is now holding onto its gold rather than sell it into the market… even at higher prices.

While this recent negative shift in global gold scrap supply seems interesting when we look at the change over the past few years, it’s even more surprising when we go back to 2010.  In 2010 when the price of gold was trading lower than the level today, global gold scrap supply was considerably higher.  How much higher?  Look at the chart below:

In 2010, the gold scrap market supplied 1,683 mt (54 million oz) into the market based on an average price of $1,224 for the year.  That was a stunning 54 million oz additional gold supply into the market.  While global gold scrap supply fluctuated along with price over the next six years, something seriously changed in 2017.

If we assume that in the second half of 2017 the market will supply about the same amount of gold scrap as in the first half, I estimate total global scrap supply will be 1,150 mt (37 million oz).  Which means, as the price of gold has increased in 2017, global gold scrap supply will fall by almost a third, or 32{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} versus 2010.

This is a loss of 533 mt or 17 million oz of gold from the market, even though the price has risen from its low at the end of 2015.  As I stated, this major gold market indicator trend shift suggests that individuals are now holding onto their gold rather than sell it for a higher FIAT MONETARY PRICE.

Furthermore, the declining amount of global gold scrap supply will put more pressure on the market going forward.  For example, world gold scrap supply of 1,683 mt in 2010, accounted for 61{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of global mine supply of 2,744 mt.  This year, estimated gold scrap supply of 1,150 mt would only account for 35{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of the 3,250 mt of forecasted world mine supply.

What a change in seven years.  This falling gold scrap supply into the global market means any increase in demand will start putting a pressure on the price as the World Stock and Bond markets start to crack and rollover in the next few years.  Ironically, we are actually seeing a surprising increasing of demand interesting sectors of the market.

Read More @ SRSrocco.com

Silver: Once and Future Money

by Jim Rickards, Daily Reckoning:

The Roman Republic and the later Roman Empire had gold coins called the aureus and solidus, but they also minted a popular silver coin called the denarius. One denarius was the daily wage for unskilled labor and Roman soldiers.

Of course, in the late Empire, the aureus, solidus and denarius were all debased by mixing the gold and silver with base metals. The decline of the Roman Empire went hand in hand with the decline of sound money.

In the early ninth century AD, Charlemagne greatly expanded silver coinage to compensate for a shortage of gold. This was successful in stimulating the economy of the predecessor of the Holy Roman Empire. In a sense, Charlemagne was the inventor of quantitative easing over 1,000 years ago. Silver was his preferred form of money.

Under the U.S. Coinage Act of 1792, both gold and silver coins were legal tender in the U.S. From 1794 to 1935, the U.S. Mint issued “silver dollars” in various designs. These were widely circulated and used as money by everyday Americans. The American dollar was legally defined as one ounce of silver.

The American silver dollar of the late eighteenth century was a copy of the earlier Spanish Real de a ocho minted by the Spanish Empire beginning in the late sixteenth century. The English name for the Spanish coin was the “piece of eight,” (ocho is the Spanish world for “eight”) because the coin could easily be divided into one-eighth pieces.

Until 2001 stock prices on the New York Stock Exchange were quoted in eighths and sixteenths based on the original Spanish silver coin and its one-eight sections.

Until 1935 U.S. silver coins were 90% pure silver with 10% copper alloy added for durability. After the U.S. Coinage Act of 1965, the silver content of half-dollars, quarters and dimes was reduced from 90% to 40% due to rising price of silver and hoarding by citizens who prized the valuable silver content of the older coins.

The new law signed by President Johnson in 1965 marked the end of true silver coinage by the U.S. Other legislation in 1968 ended the redeemability of old “silver certificates” (paper Treasury notes) for silver bullion.

Thereafter, U.S. coinage consisted of base metals and paper money that was not convertible into silver; (gold convertibility had already ended in 1933).

Let’s hope that the U.S. is not following in the footsteps of the Roman Empire in terms of a political decline coinciding with the substitution of base metals for true gold and silver coinage.

In 1986, the U.S. reintroduced silver coinage with a .999 pure silver one-ounce coin called the American Silver Eagle. However, this is not legal tender although it does carry a “one dollar” face value. The silver eagle is a bullion coin prized by investors and collectors for its silver content. But it is not money.

Who in their right mind would pay a full ounce of silver for goods or services worth only a buck?

In short, silver is as much a monetary metal as gold, and has just as good a pedigree when it comes to use in coinage. Silver has supported the economies of empires, kingdoms and nation states throughout history.

It should come as no surprise that percentage increases and decreases in silver and gold prices denominated in dollars are closely correlated.

Silver is more volatile than gold and is more difficult to analyze because it has far more industrial applications than gold. Silver is useful in engines, electronics and coatings.

Interestingly, gold is used very little other than as money in bullion form. Gold has some highly specialized uses for coating and ultra-thin wires, but these are a very small part of the gold market.

Read More @ DailyReckoning.com

Wyoming House Votes Overwhelmingly to Remove Taxation from Gold and Silver

0

from Activist Post:

The Wyoming State House today overwhelmingly approved a bill which helps restore constitutional, sound money in Wyoming.

State Representatives voted 44-14 to pass House Bill 103 sending the measure introduced by Representative Roy Edwards (R-Gillette) to the Senate for a hearing.

Backed by the Sound Money Defense League, Campaign for Liberty, and Money Metals Exchange, HB 103 is a bill that removes all state taxation from gold and silver bullion and coins and reaffirms their legal tender status in Wyoming, in keeping with Article 1, Section 10 of the U.S. Constitution.

Testifying before the House Minerals, Business, and Economic Development Committee last week, Sound Money Defense League Policy Director Jp Cortez made the case to Wyoming legislators that charging sales taxes on money itself is beyond the pale. In effect, states that collect taxes on purchases of precious metals are inherently saying gold and silver are not money at all.

Representative Edwards said in support of HB 103, “Imagine going to the grocery store and asking the clerk for change for a $20 bill and being charged 80-cents in tax. That’s what we’re doing in Wyoming by charging sales taxes on precious metals and we’re taking steps to change that.”

Wyoming does not have an income tax. However, it does have a sales tax and it assesses this tax against precious metals bullion.  If HB 103 becomes law, Wyoming would join all its neighboring states (South Dakota, Idaho, Utah, Colorado, Nebraska) and more than 30 other states that do not assess a sales tax against precious metals.

Other states have eliminated income taxation on gold and silver (Arizona and Utah) or have established precious metals depositories to help citizens save and transact in gold and silver bullion (Texas).

Cortez’s testimony highlighted the harmful effects of inflation that flow from the Federal Reserve System and how erecting barriers to precious metal ownership harms those most negatively impacted by currency debasement – wage earners, savers, those on a fixed income – and local business owners who lose business to out-of-state dealers that don’t subject buyers with unfair taxation.

Read More @ ActivistPost.com

No Pain No Gain: It’s Best To Prepare For Pain This Week In Gold & Silver Prices

from Silver Doctors:

SD Outlook: looks like were going lower, so buyers have great opportunity here. If you’re not a buyer right now, prepare for more pain. Here’s why…

Editor’s Note: There will not be a SD Midweek Update on Wednesday.

*****

This is the week where both fundamentals and technical data dumps can have an effect on the cartel’s ability to smash the price of the metals.

Meaning they will be able to strong arm gold and silver with ease.

“Smart Money Is Moving into Gold as Volatility Returns”, By Olivier Garret, CEO of Hard Assets Alliance

by Turd Ferguson, TF Metals Report:

Two months ago, we hosted a conference featuring 25 world-famous asset managers, investment experts, and economists who discussed their economic outlook and predictions.

I’m talking big names like “bond king” Jeff Gundlach, David Rosenberg, Louis Gave, and others.

As you can imagine, these speakers usually don’t talk much about gold. They’re more concerned with stocks, funds, bonds, and the like.

But this year was different.