Monday, May 20, 2019

OPEN INTEREST IN SILVER SKYROCKETS PAST 203,000 CONTRACTS OR 1.02 BILLION OZ/SILVER WITHSTANDS ANOTHER ATTACK BY OUR BANKERS

by Harvey Organ, Harvey Organ Blog:

JEROME POWELL NAMED FED CHAIR/BITCOIN RISES ABOVE $7,000 PER COIN/TRUMP RELEASES HIS NEW TAX REFORM AND IS MET WITH LUKEWARM RESPONSE/UBS STATES THAT IT HAS NO CHANCE IN PASSING

GOLD: $1277.55  UP $1.55

Silver: $17.12 down 6  cents

Closing access prices:

Gold $1276.80

silver: $17.12

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: $1300.00 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME:  $1280.50

PREMIUM FIRST FIX:  $19.50(premiums getting larger)

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SECOND SHANGHAI GOLD FIX: $1297.80

NY GOLD PRICE AT THE EXACT SAME TIME: $1278.00

Premium of Shanghai 2nd fix/NY:$19.80 PREMIUMS GETTING LARGER)

CHINA REJECTS NEW YORK PRICING OF GOLD!!!!  

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LONDON FIRST GOLD FIX:  5:30 am est  $1276.40

NY PRICING AT THE EXACT SAME TIME: $1276.65

LONDON SECOND GOLD FIX  10 AM: $1279.20

NY PRICING AT THE EXACT SAME TIME. 1277.40 ??

For comex gold:

NOVEMBER/

NOTICES FILINGS TODAY FOR OCT CONTRACT MONTH: 57 NOTICE(S) FOR  5700  OZ.

TOTAL NOTICES SO FAR: 766  FOR 76,600 OZ  (2.382TONNES)

For silver:

NOVEMBER

 

 261 NOTICE(S) FILED TODAY FOR

 

1,305,000  OZ/

Total number of notices filed so far this month: 828 for 4,140,000 oz

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Bitcoin:  $7243 bid /$7262 offer up $489.00  (MORNING)

BITCOIN CLOSING;$7027 BID:7047. OFFER  UP $273.00

end

LADIES AND GENTLEMEN:

THERE ARE MAJOR FORCES AT WORK CORNERING THE SILVER MARKET ESPECIALLY AT THE COMEX.

 

Let us have a look at the data for today

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In silver, the total open interest  ROSE BY A HUMONGOUS SIZED 5050 contracts from 198 ,853 UP TO 203,903 WITH  YESTERDAY’S DRAMATIC TRADING IN WHICH SILVER ROSE BY A HUGE 48 CENTS.  THE CROOKS ARE STILL HAVING AN AWFUL TIME TRYING TO COVER THEIR MASSIVE SILVER SHORTS SO THEY TRY TO CONTINUE WITH THEIR TORMENT. NEWBIE SPEC LONGS ENTERED THE ARENA TO WHICH THE CROOKS SUPPLIED THE NECESSARY SHORT PAPER

RESULT: A GOOD SIZED RISE IN OI COMEX  WITH THE  48 CENT PRICE GAIN.  OUR BANKERS COULD NOT COVER ANY OF THEIR HUGE SHORTFALL. THEY NEEDED TO SUPPLY THE NECESSARY SHORT PAPER AS NEWBIE LONGS ENTERED THE ARENA

 In ounces, the OI is still represented by just OVER 1 BILLION oz i.e.  1.019 BILLION TO BE EXACT or 146{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT OCT MONTH/ THEY FILED: 261 NOTICE(S) FOR 1,305,000  OZ OF SILVER

In gold, the open interest SURPRISINGLY FELL BY A TINY 787 CONTRACTS DESPITE THE GOOD SIZED RISE IN PRICE OF GOLD ($6.60) .  The new OI for the gold complex rests at 531,131. DID SOME OF THE BANKERS CAPITULATE AND COVER?

NO EFP’S WERE ISSUED FOR THE UPCOMING NOVEMBER CONTRACT MONTH.

Result: A SMALL SIZED  DECREASE IN OI DESPITE THE RISE IN PRICE IN GOLD ($6.60).  WE MAY HAVE HAD A TINY AMOUNT OF GOLD SHORT COVERING BY THE BANKS. IT DOES NOT LOOK LIKE ANY EFP’S WERE ISSUED FOR NOVEMBER.

we had: 57 notice(s) filed upon for 5700  oz of gold.

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

GLD:

Strange! with gold up $6.60 yesterday and $1.55 today, we still had a huge withdrawal of 3.55 tonnes of gold from  inventory at the GLD/

Inventory rests tonight: 846.04 tonnes.

SLV

TODAY WE HAD A TINY 137,000 OZ LEAVE THE SLV AND THIS WAS TO PAY FOR FEES ETC.

INVENTORY RESTS AT 319.018 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 5050 contracts from 198,853  UP TO 203903 (AND now A LITTLE CLOSER TO THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) DESPITE THE FALL IN SILVER PRICE (GAIN OF 48 CENTS).   OUR BANKERS WERE AGAIN UNSUCCESSFUL IN THEIR ATTEMPT TO COVER ANY OF THEIR SILVER SHORTS. NEWBIE LONGS IN SILVER ENTERED THE ARENA TO WHICH THE BANKERS WERE OBLIGED TO SUPPLY THE NECESSARY SHORT PAPER

RESULT:  A GOOD SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 48 CENT GAIN IN PRICE  (WITH RESPECT TO YESTERDAY’S TRADING). OUR BANKER FRIENDS WERE UNSUCCESSFUL IN THEIR ATTEMPT TO COVER ANY OF OUR SILVER SHORTS . .NO EFP’S WERE ISSUED FOR THE UPCOMING NOVEMBER CONTRACT.  HOWEVER THE BANKERS DID SUPPLY NEWBIE LONGS AS THE BANKERS CONTINUED TO GO NET SHORT AS THEY FELT THEY HAD TO OBLIGE SUPPLYING THE PAPER. SILVER IS BECOMING THE NEW BITCOIN.

(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 WEDNESDAY night/THURSDAY morning: Shanghai closed DOWN 12.60 points or .37{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} /Hang Sang CLOSED DOWN 75.42 pts or 0.26{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} / The Nikkei closed UP 119.04 POINTS OR 0.53{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Australia’s all ordinaires CLOSED DOWN 0.06{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Chinese yuan (ONSHORE) closed UP  at 6.6112/Oil DOWN to 54.32 dollars per barrel for WTI and 60.23 for Brent. Stocks in Europe OPENED IN THE RED  .  ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.612. OFFSHORE YUAN CLOSED AT VALUE OF THE ONSHORE YUAN AT 6.613  //ONSHORE YUAN  STRONGER AGAINST THE DOLLAR/OFF SHORE STRONGER TO THE DOLLAR/. THE DOLLAR (INDEX) IS WEAKER AGAINST ALL MAJOR CURRENCIES. CHINA IS VERY HAPPY TODAY.

Read More @ HarveyOrganBlog.com

Gold, Goldmoney and Menē

by Alasdair, Macleod, GoldMoney:

Gold, ornamentation and money: that was the sequence of events. Man discovered gold, found it malleable, durable and attractive. It was first used for ornamentation, then as social economics evolved into the division of labour, its value as ornamentation and its physical properties made it the most enduring medium for money. Even to this day, Asians representing most of the world’s population still understand this connection between gold, ornamentation and money.

Goldmoney has recently backed a new venture, Menē. Menē manufactures and retails gold and platinum jewellery at prices tied to market values for the physical metal, with a buy-back option, again linked to the market price. The objective is to re-establish the link between the use of precious metals as money and as a medium of exchange. (Please refer to the disclosure note at the end of this article.)

Westerners in the developed world have mostly forgotten the linkage, but this is only in relatively modern times. Nor was this some passing fancy of the Eurasian continent, where gold and silver’s usage as money is as old as any recorded civilisation.

The durability of gold is truly remarkable. It is worth visiting the Cairo Museum just to see gold artefacts wrought over 3,000 years ago, looking so fresh they could have left the goldsmith’s studio yesterday. The death mask of Tutankhamun is simply breath-taking.i

It wasn’t only the Egyptians. The link between gold and value was evident in the art of nearly all European civilisations, many of which had little contact with the others. The existence of gold and silver coins and artefacts from Greece, Rome, and even the Celtic tribes is common knowledge. The great torc of Snettisham was made over 2,000 years ago, and can be seen in the British Museum, looking as fresh as the day it was wrought in Celtic Britain.ii

Read More @ GoldMoney.com

BITCOIN vs. GOLD: Which One’s A Bubble & How Much Energy Do They Really Consume

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by Steve St. Angelo, SRSrocco:

If you are investing in either Bitcoin or Gold, it’s important to understand which asset is behaving more like a bubble than the other.  While it’s impossible to understand how the market will value these two very different assets in the future, we can provide some logical analysis that might remove some of the mystery associated with the market price of Bitcoin versus Gold.

I’ve read some analysis on Bitcoin profitability and energy consumption that seemed unreliable, so I thought I would put my two cents in on the subject.

For example, many sites are using the Digiconomist’s work on Bitcoin energy consumption.  However, I believe this analysis has overstated Bitcoin’s energy consumption by a large degree.  According to the Digiconomist, Bitcoin’s annual electric use is approximately 24 TerraWatts per year (TWh/yr):

In a recent article that was forwarded to me by one of my readers, How Many Barrels Of Oil Are Needed To Mine One Bitcoin, the author used the information in the chart above to calculate the energy cost to produce each Bitcoin.  He stated that the average energy cost for each Bitcoin equals 20 barrels of oil equivalent.  Unfortunately, that data is grossly overstated.

If we look at another website, the author explains in great detail the actual energy cost to produce each Bitcoin.  According to Marc Bevand, he calculated on July 28th, that the average electric consumption of Bitcoin was 7.7 TWh/yr, one-third of the Digiconomist’s figure.  Here is a chart and table from Marc Bevand’s site showing how he arrived at the figures:

This graph shows the increase in Bitcoin’s hash rate and the efficiency of the Bitcoin Miners at the bottom.  If you want to read more detail of the analysis, I suggest you click on the link (Marc Bevand: Electricity consumption of Bitcoin: a market-based and technical analysis)

The table above shows the Bitcoin energy consumption analysis on Feb 26th at a Best Guess (average) of 4.12-4.73 TWh/yr.  However, Marc updated the data again on July 28th, as the hash rate increased, to show total Bitcoin energy consumption rose to 7.15-8.27 TWh/yr.  I took the average of his range to be 7.7 TWh/yr.

Nonetheless, I had to update the number once again because it has been three months since Marc calculated his figures.  I decided to increase the 7.7 TWh/yr rate by 45{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} to account for the past three months.  I arrived at the 45{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} figure by using the 75{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} increase in Marc’s energy consumption figures from Feb to July.  His energy consumption figures increased approximately 15{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} per month.  Thus, three months equals 45{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}.

Read More @ SRSrocco.com

Will The New Bitcoin CME Futures Contract Benefit Gold?

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by Dave Kranzler, Investment Research Dynamics:

The Chicago Mercantile Exchange (CME) announced a plan to launch Bitcoin futures by the end of the year. The price of Bitcoin surged to a new record in response to the announcement.  It was reminiscent of the dot.com era, when a dot.com stock would jump 10{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} if Maria Bartiromo merely whispered the name of the company on CNBC.

Ironically, the cheers for this new contract from the Bitcoin faithful could turn out to be analogous to chickens in the barnyard cheering at the appearance of Colonel Sanders.

GATA released an article about the new Bitcoin futures contract titled “So Long Cryptos.” I’m sure that editorial stance puzzled most Bitcoin price-momentum chasers.  Crypto aficionados, for now, overlook the fact that CME futures are used aggressively to push around the dollar-based Comex gold and silver futures contracts.

As GATA points out, the ability to manipulate precious metals futures contracts by the official entities motivated to suppress the price of gold is reinforced by the volume trading discounts given from the CME to Governments and Central Banks who trade on the CME.

If there any reason to assume that the same volume discounts will not be extended to the Bitcoin contract?  Another curious feature of the Bitcoin contract is that it will be settled in cash.  I would point out the original intent behind futures contracts was to enable producers and users to agree ahead of time on a price that would be paid for the delivery of the underlying commodity associated with the futures contract.  Futures were a financing tool intended to facilitate the production and distribution of the underlying commodity product.

The Bitcoin futures contract is settled only in cash – U.S. dollars.  To wit, does this not theoretically sabotage the intended purpose of Bitcoin, which is to provide an alternative to fiat currencies?  Why would you want to receive fiat dollars rather than delivery of the underlying?

Technically this is not a bona fide futures contract. It’s a derivative of the “index” price of Bitcoin but it does not facilitate the production and distribution of Bitcoin.  As such, it’s an instrument of pure speculation. By definition, this opens the door to manipulation by the entities who might be motivated to control the price of Bitcoin. Oh, by the way, those entities can buy and sell the contracts at a price advantage to the speculators by virtue of the volume discounts.

At least with gold and silver contracts, the contract enables the contract owner to take delivery of the actual physical commodity connected to the contract. To a limited extent, this mechanism serves to prevent the complete unfettered manipulation of gold and silver via the Comex futures contract.

With the Bitcoin futures contract, the contract owner is paid cash.  The absence of a requirement to deliver actual Bitcoins enables the issuance of an unlimited number of fiat dollar-based paper Bitcoin contracts which can be used to drive the price lower by increasing the supply of the contract relative to the demand.  So much for the idea that Bitcoin supply issuance is firmly capped. This could  actually be quite entertaining to observe

Read More @ InvestmentResearchDynamics.com

Gold & Silver Looking Strong Going Into FOMC Day Despite That Pesky Problem

from SilverDoctors:

SD Midweek: Gold, silver, platinum and palladium are all poised and looking ready to rally, even if there is that open-ended problem…

On the fundamental side, today could be a very big day. Is the house going to release their tax plan today? What is the Fed going to put in its FOMC statement due to hit the tape at 2:00 p.m. EST? Are we going to get another terrorist attack?

With all the uncertainty, the “fear” barometer doesn’t even care:

Unbelievable that the VIX has gaped down. Of course, the Fed wouldn’t want any eyebrows raised going into the finishing day of the two-day meeting. There is no press conference this month, and as a reminder, nearly everybody is certain the Fed will hold and absolutely nobody believes the Fed will cut:

The dollar is starting to look more like a bear rally than a head-n-shoulders pattern:

The dollar needs to get to 96 in a hurry or it risks fizzling out on the charts. We were skeptical when we called out the forming pattern a few weeks back, because the left-side shoulder was not pronounced, but a gradually sloping descent. Sure, we could get a gradually sloping ascent up to 96, but it would be unwise to call it a bottom in the dollar. The dollar now has over three full years of strength, and our President openly wants a weaker dollar.

Read More @ SilverDoctors.com