Friday, April 19, 2019

A2A with Brent Cook of Exploration Insights

by Turd Furguson, TF Metals:

With the mining shares already up 10{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} YTD and seemingly poised for a breakout, what a great time to pick the brain of the always-insightful Brent Cook of Exploration Insights.

First of all, here’s a chart of the HUI index showing the pending breakout of the shares, in general:

Brent was extraordinarily generous with his time and expertise today so it would be impossible for me to list all of the specific companies and shares that we discussed. Instead, you’re just going to have to listen to the entire program. And you won’t be disappointed! You might actually learn a thing or two along the way!

Thanks again to Brent for all his efforts and we strongly encourage everyone with an interest in the sector to check out Brent’s newsletter at http://www.explorationinsights.com

Click HERE to listen.

Read More @ TFMetals.com

CARTEL THROW 2 MILLION OZ OF GOLD KNOCKING GOLD (AND SILVER) DOWN BUT LO AND BEHOLD BOTH METALS RECOVER AS THE DOLLAR TANKS

by Harvey Organ, Harvey Organ Blog:

GOLD UP $6.00 ON THE DAY/SILVER UP 9 CENTS/HURRICANE HARVEY TO HIT TEXAS COAST TONIGHT AND LINGER THERE: NO DOUBT WILL CAUSE TERRIFIC DAMAGE/SEARS HOLDINGS IS ON DEATH WATCH/GOOGLE TO REFUND MONEY DUE TO FAKE ADVERTISING HITS/YELLEN AND DRAGHI SPEECHES: A NOTHING BURGER

GOLD: $1292.85  UP $6.00

Silver: $17.07  UP 9 CENTS

Closing access prices:

Gold $1291.25

silver: $17.04

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: $1293.25 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME:  $1285.85

PREMIUM FIRST FIX:  $7.40

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SECOND SHANGHAI GOLD FIX: $1293.25

NY GOLD PRICE AT THE EXACT SAME TIME: $1286.70

Premium of Shanghai 2nd fix/NY:$6.55

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LONDON FIRST GOLD FIX:  5:30 am est  $1287.05

NY PRICING AT THE EXACT SAME TIME: $1287.65

LONDON SECOND GOLD FIX  10 AM: $1285.30

NY PRICING AT THE EXACT SAME TIME. $1281.00???????????????????????????

For comex gold:

AUGUST/

NOTICES FILINGS TODAY FOR APRIL CONTRACT MONTH: 0 NOTICE(S) FOR  NIL  OZ.

TOTAL NOTICES SO FAR: 4584 FOR 458,400 OZ  (14.258 TONNES)

For silver:

AUGUST

 

 46 NOTICES FILED TODAY FOR

 

230,000  OZ/

Total number of notices filed so far this month: 1178 for 5,890,000 oz

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end

TODAY THE BANKERS THREW 2 MILLION OZ OF PAPER SHORTS TRYING TO KNOCK GOLD OFF ITS PERCH.  IT SUCCEEDED FOR ONLY ONE HOUR AS GOLD REBOUNDED ON NEWS OF YELLEN’S DOVISH SPEECH AT JACKSON HOLE. GOLD FINISHED UP $6.00 AND SILVER WAS UP 9 CENTS. LATE IN THE AFTERNOON DRAGHI’S SPEECH WAS ALSO A NOTHING BURGER AND THAT PROPELLED THE EURO NORTHBOUND (AND THE SINKING OF THE USA DOLLAR INDEX BREAKING THE 93 BARRIER TO 92.56.

I JUST CANNOT WAIT UNTIL I SEE THE OPEN INTEREST FOR BOTH GOLD AND SILVER FOR TODAY.  THEY WILL BE RELEASED LATE IN THE EVENING OR IF THEY CONTINUE LIKE THEY DID LAST WEEK, IT WILL BE RELEASED AT 2 PM SATURDAY.

 

I WILL PLACE THEM  BETWEEN THE XXX’S AS SOON AS I OBTAIN IT: (AND A COMMENT ON IT)

 

 

XXXXXXXXXXXXXXXXXXXXXXXXX

PRELIMINARY OI FOR MONDAY, AUGUST 28

 

 

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Let us have a look at the data for today

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In silver, the total open interest FELL by A CONSIDERABLE 3703 contracts from 192,116 DOWN TO 188,413 DESPITE THE TINY FALL IN PRICE THAT SILVER UNDERTOOK WITH  YESTERDAY’S TRADING (DOWN 9 CENTS). IT SEEMS THAT WE HAD A TRANSFER FROM SILVER OI’S TO SILVER EFP’S AS WE ARE APPROACHING FIRST DAY NOTICE. IN GOLD THE OBLITERATION IS HUGE, BUT IN SILVER IT IS MINOR. THE ISSUANCE OF EFP’S DESTROYS THE PRICE DISCOVERY MECHANISM BECAUSE WE HAVE NO PHYSICAL PRICE ANYWHERE IN THE EQUATION. THE LONGS RECEIVE A FIAT BONUS PLUS A “DELIVERABLE” PRODUCT WHICH IS NO DOUBT A LONDON BASED FORWARD.

RESULT: A LOWER OI WITH A SLIGHT PRICE DECREASE AND TWO RAID FAILURES.

 In ounces, the OI is still represented by just UNDER 1 BILLION oz i.e.  0.944 BILLION TO BE EXACT or 135{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MAY MONTH/ THEY FILED: 46 NOTICE(S) FOR 230,000OZ OF SILVER

In gold, the open interest ROSE BY A CONSIDERABLE 2,984 CONTRACTS DESPITE THE FALL  in price of gold ($2.15 LOSS  YESTERDAY .). The new OI for the gold complex rests at 509,211.

AS IN SILVER, THE GEOPOLITICAL LANDSCAPE WITH TRUMP THREATENING TO CLOSE GOVERNMENT IF HE DID NOT GET HIS WALL CAUSED A HUGE NUMBER OF NEWBIE SPECS TO AGAIN ENTER THE GOLD ARENA WITH THE COMMERCIALS SUPPLYING THE NECESSARY PAPER. WE HAD TWO UNSUCCESSFUL RAIDS AGAINST GOLD YESTERDAY AND IT HAD NO REAL EFFECT ON THE PRICE. PLEASE NOTE THAT WE DO NOT GET AN OBLITERATION OF OI IN A NON ACTIVE MONTH. THE BANKERS CALLED UPON THEIR TROOPS TO ORCHESTRATE ANOTHER RAID ON OUR PRECIOUS METALS AND THAT ENDED IN FAILURE AS WELL.

Result: A GOOD SIZED GAIN IN OI with A SMALL FALL IN PRICE IN GOLD.

we had: 0 notice(s) filed upon for NIL oz of gold.

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

GLD:

Today, no changes in gold inventory:

Inventory rests tonight: 799.29 tonnes

IN THE LAST 30 TRADING DAYS: GLD SHEDS 37.68 TONNES YET GOLD IS HIGHER BY $60.35 .

SLV

Today:  WE HAD NO CHANGES IN SILVER INVENTORY TONIGHT:

INVENTORY RESTS AT 333.178 MILLION OZ

 

end

.

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

1. Today, we had the open interest in silver FALL BY 3,703 contracts from 192,116 DOWN TO 188,413 (AND now A LITTLE FURTHER FROM THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) WITH YESTERDAY’S 9 CENT LOSS IN TRADING. SILVER RESPONDED TO THE GEOPOLITICAL CLIMATE WHEREBY TRUMP THREATENED TO SHUT DOWN GOVERNMENT UNLESS HE GOT HIS WALL. NEWBIE SPECS ENTERED THE ARENA. SOME  OLD SPECS, THOSE STILL PLAYING THE HARLEM GLOBETROTTERS VS WASHINGTON GENERALS GAME, TENDERED FOR EFP’S. HOWEVER THE LOSS WAS TINY WHEN WE NORMALLY COMPARE  THE OBLITERATION WE GET IN GOLD. DEMAND FOR SILVER DID NOT DISSIPATE AT ALL, THEY JUST RECEIVED ANOTHER DELIVERABLE PRODUCT IN LONDON.(A FORWARD)

RESULT:  A MUCH LOWER OI AT THE COMEX, WITH A TINY LOWER PRICE. (AND A GAIN IN DELIVERABLE PRODUCT IN LONDON)

(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 UP 60.00 POINTS OR 1.83{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}   / /Hang Sang CLOSED UP 329.56 POINTS OR 1.20{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/ The Nikkei closed UP 98.84 POINTS OR 0.51{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Australia’s all ordinaires CLOSED UP 0.03{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Chinese yuan (ONSHORE) closed UP at 6.6560/Oil UP to 47.73 dollars per barrel for WTI and 52.41 for Brent. Stocks in Europe OPENED GREEN. Offshore yuan trades  6.6560 yuan to the dollar vs 6.6560 for onshore yuan. NOW THE OFFSHORE MOVED STRONGER  TO THE ONSHORE YUAN/ ONSHORE YUAN STRONGER (TO THE DOLLAR)  AND THE OFFSHORE YUAN IS MUCH STRONGER TO THE DOLLAR AND THIS IS COUPLED WITH THE WEAKER DOLLAR. CHINA IS HAPPY TODAY

Read More @ HarveyOrganBlog.com

Constitutional Court Upholds Suspension Of Tahoe’s Mining License… Shares Fall 20{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}

by Steve St. Angelo, SRSrocco:

According to unconfirmed sources, Tahoe Resources has learned that the Guatemalan Constitutional Court issued a decision yesterday to uphold the lower court’s preliminary ruling to suspend its mining license at Tahoe’s Escobal Mine.  This new ruling caused Tahoe’s shares to sell off more than 20{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} during trading today. 

I first wrote about the trouble at Tahoe Resources Escobal Mine in my article, WORLD’S 2ND LARGEST SILVER MINE SHUT DOWN: Implications For Company & Market:

First, after the Guatemalan Supreme Court suspended operations at Escobal, Tahoe’s stock price took a real beating falling 33{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} that day.  In the past week, Tahoe’s stock price decline 40{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}:

A lot of investors were caught by surprise as Tahoe Resources has been making a lot of money from its mines, especially from its Escobal Silver Mine in Guatemala.  For example, in 2016 Tahoe Resources reported profits of $118 million on revenue of $784 million.  That is a stunning 15{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} margin of profit… and the majority of that profit was from the Escobal Mine.

Second, the rich profits from the Escobal Mine came at a cost.  And the cost was in the way of “serious human rights violations through its operations,” stated by several sources.  Unfortunately, many investors that follow the Mainstream financial media do not understand that the Escobal Mine has been, and continues to be, a subject of human rights abuse and violations from day one.

When the Guatemalan lower court first temporarily suspended the mining license at Tahoe’s Escobal Mine back in July, the shares of the company fell 40{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}.  After the ruling by the Guatemalan Constitutional Court to uphold the lower courts decision yesterday to suspend Tahoe’s Escobal mining license, the shares fell another 20{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} today:

When I first wrote about the suspension of Tahoe’s Escobal mining license, I received some push-back from those that were invested in the company.  While I can understand the frustration, I try to put out as much objective data as I can about the mining industry.  I wrote about Tahoe’s problems with its Escobal Mine back in 2014.

By doing more research recently, I found out that the company hired a U.S. security defense contractor, International Security Defense Management LLC, in 2011 to deal with the local protesters and community leaders.

This passage comes from the site, TAHOE ON TRAIL website:

The Escobal project depends on a militarized security strategy to suppress opposition and has led to violence and criminalization

•In 2011, Tahoe Resources hired a US security and defense contractor – International Security and Defense Management, LLC – that boasts experience with corporations working in war zones like Iraq and Afghanistan to develop a security plan that has treated peaceful protest and community leaders as if they were armed insurgents.

•In June 2012, Tahoe sued the Guatemalan government, stating that protests were hindering its operations and that the State was not doing enough to allow its activities to proceed.

•Between 2011 and 2013, some 90 people were slapped with unfounded criminal charges and made to endure legal processes causing them distress and hardship. Several spent months in jail before being cleared of all charges.
•A Guatemalan court dismissed Tahoe’s lawsuit against the state in February 2013.

•Nonetheless, on March 26, 2013, the Guatemalan government secretly commenced a pilot initiative in San Rafael Las Flores called the “Inter-Institutional Group on Mining Affairs” that frames opposition to mining as a threat to national security. Coronel Ricardo Bustamante, Technical Secretary for the National Security Commission, oversees the group whose office in San Rafael Las Flores was set up with support from Tahoe Resources. Tahoe Resources refers to it as a “High-Level Commission […] to address community issues and oversee security matters.” Guatemalan activists call it “counterinsurgency” and “a military intelligence operation.

•The Guatemalan government imposed a military siege in May 2013 in municipalities where people overwhelmingly voted against mining.

•The “inter-institutional project” continues; two military posts remain in the area.

So, the important question is…. Why does a mining company have to hire a private military type security company if it has the support of the local community??

I have to say, people who have come in defense of the Tahoe Resources Escobal Mine by claiming those that support the local population as LEFTISTS… really pisses me off.  And I will tell you why.

We in the Alternative Media continue to write and complain about the CONTROL OF THE CORRUPT ELITE.  This is one of the major talking points on most alternative blogger website.  Unfortunately, it seems that some precious metals analysts in the alternative media seem to forget that this principle also pertains to people dealing with the same corruption and abuse in other countries.

I gather the locals living next to the Escobal Mine in Guatemala do not deserve the same JUSTICE as we do in the Alternative Media in our fight against the corrupt elite.

Read More @ SRSrocco.com

3 Major Banks Are Now Warning of Another Global Recession

by The Anti Media:

Highlighting conditions similar to the lead-up to the 2008 financial crisis, three major Wall Street banks this month issued warnings that a proverbial “Winter Is Coming” for planet-wide financial markets. From Bloomberg:

“HSBC Holdings Plc, Citigroup Inc. and Morgan Stanley see mounting evidence that global markets are in the last stage of their rallies before a downturn in the business cycle.

“Analysts at the Wall Street behemoths cite signals including the breakdown of long-standing relationships between stocks, bonds and commodities as well as investors ignoring valuation fundamentals and data. It all means stock and credit markets are at risk of a painful drop.”

Andrew Sheets, chief cross-asset strategist at Morgan Stanley, wrote in a note to traders Tuesday that a large part of the problem is that investments are increasingly untethered to Forex (FX), the decentralized global market for the trading of currencies.

“Equities have become less correlated with FX, FX has become less correlated with rates, and everything has become less sensitive to oil,” Sheets wrote.

Morgan Stanley’s financial model shows that global assets are the least correlated they have been in a decade. Essentially, investors are basing decisions solely on factors specific to the individual stock and ignoring larger outside drivers like manufacturing data — just as they did in the last half of the 2000s.

As this occurs, relationships between assets break down, as Sheets wrote Tuesday:

“These low macro and micro correlations confirm the idea that we’re in a late-cycle environment, and it’s no accident that the last time we saw readings this low was 2005-07.”

All this investor confidence has led to a decrease in stock market volatility. That’s not a good thing, says Steven Major, global head of fixed-income research for HSBC Holdings.

“Low volatility across asset classes may give a false sense of security and bond markets may be caught napping,” Major wrote in a note to clients on August 8. He added that “years of international spillover from quantitative easing” increase the risk that local triggers will have a greater impact on global markets.

Strategists from Citigroup, as well, fear that governments’ attempts to implement economic stimulus following the 2008 crisis — and the fact that those efforts are easing — could join with other factors to produce the next worldwide recession, as Bloomberg noted Tuesday:

Read More @ TheAntiMedia.com

Conspiracy Theorists Can Relax! Steve Mnuchin Peers Through Ft. Knox Window And Confirms Gold Is Still There!

by Jeff Berwick, The Dollar Vigilante:

Imagine it was 1937 and you stored your gold with someone… let’s call them Uncle Sam.

After about 20 years you told Sam that you’d like to see the gold and make sure it was still there. He said sure; you can come and take a quick look. And you did… and you were satisfied that it looked like the gold was still there.

Decades then went by… more than 40 years in fact… and you told Sam that you’d like to make sure the gold is still there.

He replied, “Sure, but you can’t count it or touch it or anything. You can just look through the window and see it is still there.”

“Oh, and another thing,” said Sam, “We get to select the person who can take a quick look.”

You’d start to get quite suspicious, wouldn’t you? It had been more than 40 years since you were even allowed to see the gold and more than 60 years since the last time Sam allowed you to count it.

“Who do you select to take a look for us?” you asked, eyebrows furrowed.

“Steve Mnuchin,” said Uncle Sam.

That is exactly what has happened with the gold supposedly stored by the US government in Fort Knox.

The last time the gold was even counted was in 1953. And the last time anyone was even allowed to take a quick peek at it was 1974!

And just this week, Treasury Secretary, Steve Mnuchin, went on behalf of the American people to take a quick look and confirm the gold is still there.

After all, who could you possibly trust more than Steve Mnuchin. The man who spent 17 years working in investment banking, most notably with Goldman Sachs, was a business partner with George Soros and was sued over his involvement with Bernie Madoff securities.

Yet, in the most nonchalant way possible, this week, Mnuchin quipped to an audience in Louisville, Kentucky, “I assume the gold is still there.”

And then, he mosied over to Fort Knox, walked in, walked out and tweeted…. And I kid you not, “Glad gold is safe.”

That’s it! He didn’t count it or check to see the books to see if it had been leant out to anyone, didn’t have some assays done to ensure it was actually gold and not an alloy.

None of that. He just took a quick glance to see there was some gold there. Good enough! No need to check again for another 50 years!

What else would you expect from a US federal government whose own auditors say their books have been completely unauditable for 20 years. Or how the Pentagram still can’t find over 6.5 trillion dollars.

So now, after nearly 50 years of nobody auditing the gold, one of the most untrustworthy people in the world took a gander and declared that everything is fine.

And the mouth breathing, government educated, fluoridated, chem-trailed, GMO’ed and vaccinated tax slaves in the US were too busy working three jobs even to notice.

We’d make more of a kerfuffle about the whole thing ourselves if it weren’t for the fact that the total amount of gold held in Fort Knox, if it truly is still there and still owned by the federal government, if sold today, would only cover the expenses of the US government for less than two weeks.

That’s right.

At today’s price of $1290, the total value of the gold holdings at Fort Knox, if they are really there (again, the only one who has seen the gold in the last half century is Steve Mnunchin) are worth about $200 billion.

In June, alone, the US government spent $429 billion.

So, if all the gold at Ft. Knox was sold, it’d cover about 14 days of expenses.

So, in terms of the importance of the gold holdings in the US government’s balance sheet, it is actually negligible.

Some, though, might say the gold held at Fort Knox is important if the US were to ever go back to a gold standard.

Well, for one thing, don’t hold your breath for that to ever happen.

If the US government put the US dollar on a gold standard that was managed by itself or by the Fed or Treasury to the extent that it was adopted in the classical sense it would bankrupt the government and/or severely tie its hands.

While this would be the best news possible for nearly everyone on Earth… What are the chances the US government would destroy itself on purpose? Not very likely.

And, even if it somehow did, it still wouldn’t be easy, nor necessarily very free-market.

It is hard to predict how they would do it if they did. That is, would they choose to have the dollar be backed by a weight in gold or would the gold price be fixed? Would the government erect state banks as it did before the Fed? Or would it redefine and use the Fed to regulate the exchangeability between dollars and gold? Or would it be the Treasury directly? Another way that has been discussed is to incorporate gold as a top tier asset under the latest Basel guidelines, which implies little difference in the analysis. Or they could create a Fedcoin backed by gold, and the token could rely on a program of some type of inflationism built into it.

But it’s not likely they would abandon fractional reserve banking altogether.

Whatever the case, if it is a government directive it is not likely to be “sound.” It is likely to be rigged. It is likely to tilt the playing field, as usual.

Some gold bugs, though, would point out that if the US were to somehow go back to a gold standard, the value of gold would likely have to increase dramatically.

Read More @ TheDollarVigilante.com

TWO HUGE WHACKS ON GOLD AND SILVER TODAY BUT OUR PRECIOUS METALS ARE STILL RESILIENT: GOLD DOWN ONLY $2.15 AND SILVER DOWN 9 CENTS

by Harvey Organ, Harvey Organ Blog:

GREECE HIT WITH A HUGE INFLUX OF MIGRANTS FROM TURKEY/ISRAEL WARNS PUTIN THAT IRAN MUST LEAVE SYRIA OR ELSE THEY WILL ATTACK/TRUMP WANTS HIS WALL: IF NOT HE WILL SHUT DOWN GOVERNMENT/CITY OF HARTFORD WILL LIKELY FILE FOR BANKRUPTCY PROTECTION

GOLD: $1286.85  DOW $2.15

Silver: $16.98  DOWN 9 CENTS

Closing access prices:

Gold $1290.40

silver: $17.08

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: $1294.05 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME:  $1287.80

PREMIUM FIRST FIX:  $6.25

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SECOND SHANGHAI GOLD FIX: $1293.21

NY GOLD PRICE AT THE EXACT SAME TIME: $1289.60

Premium of Shanghai 2nd fix/NY:$3.61

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LONDON FIRST GOLD FIX:  5:30 am est  $1285.90

NY PRICING AT THE EXACT SAME TIME: $1286.20

LONDON SECOND GOLD FIX  10 AM: $1289.00

NY PRICING AT THE EXACT SAME TIME. $1289.10

For comex gold:

AUGUST/

NOTICES FILINGS TODAY FOR APRIL CONTRACT MONTH: 0 NOTICE(S) FOR  NIL  OZ.

TOTAL NOTICES SO FAR: 4584 FOR 458,400 OZ  (14.258 TONNES)

For silver:

AUGUST

 

 28 NOTICES FILED TODAY FOR

 

140,000  OZ/

Total number of notices filed so far this month: 1132 for 5,600,000 oz

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end

 

As I have mentioned we are in options expiry week and you should expect pressure on gold/silver for the next 6 trading days. Today, the bankers twice repelled gold/silver’s advance as they try and keep gold under $1300 and silver under $17.00. The USA has only $82. billion left in the kitty with a burn rate of around 3 billion per day. David Stockman believes that there is little chance for a clean rise in the debt ceiling without huge concessions to Democrats. This article is a must read..

Let us have a look at the data for today

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In silver, the total open interest ROSE by A HUGE 4,889 contracts from 187,227 UP TO 192,116 DESPITE THE TINY RISE IN PRICE THAT SILVER UNDERTOOK WITH  YESTERDAY’S TRADING (UP 9 CENTS). NO DOUBT THE GEOPOLITICAL LANDSCAPE WITH TRUMP THREATENING THAT HE WANTS HIS WALL OR HE WILL SHUT DOWN GOVERNMENT CAUSED MANY TO ENTER THE PRECIOUS METALS ARENA.  THE BANKERS HAD NO CHOICE BUT TO SUPPLY THE NECESSARY SHORT PAPER WITH THE NEWBIE SPECS ENTERING THE ARENA WITH RECKLESS ABANDON… SOME OLDER SPECS EXITED WITH A PROFIT.YESTERDAY,  THE BANKERS WERE TELEGRAPHING A RAID THIS MORNING (SILVER SUBDUED IN PRICE COMPARED TO GOLD) WHICH FAILED AGAIN.  THE BANKERS ARE GETTING QUITE NERVOUS WITH THEIR CONTINUED FAILED ATTEMPTS TO CONTROL THE PRECIOUS METALS ARENA.   

RESULT: A MUCH HIGHER OI WITH A SLIGHT PRICE INCREASE.

 In ounces, the OI is still represented by just UNDER 1 BILLION oz i.e.  0.966 BILLION TO BE EXACT or 138{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MAY MONTH/ THEY FILED: 28 NOTICE(S) FOR 140,000OZ OF SILVER

In gold, the open interest ROSE BY A CONSIDERABLE 5,784 CONTRACTS WITH THE RISE  in price of gold ($3.35 GAIN  YESTERDAY .). The new OI for the gold complex rests at 506,227.

AS IN SILVER, THE GEOPOLITICAL LANDSCAPE WITH TRUMP THREATENING TO CLOSE GOVERNMENT IF HE DID NOT GET HIS WALL HAD A HUGE NUMBER OF NEWBIE SPECS ENTER THE GOLD ARENA WITH THE COMMERCIALS SUPPLYING THE NECESSARY PAPER. SOME OLD SPECS SOLD FOR A PROFIT, THINKING THAT THE PRECIOUS METALS WILL ALWAYS LOWER IN PRICE DURING OPTIONS EXPIRY WEEK.

Result: A HUGE GAIN IN OI with A RISE IN PRICE IN GOLD.

we had: 0 notice(s) filed upon for NIL oz of gold.

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

GLD:

Today, no changes in gold inventory:

Inventory rests tonight: 799.29 tonnes

IN THE LAST 29 TRADING DAYS: GLD SHEDS 37.68 TONNES YET GOLD IS HIGHER BY $54.35 .

SLV

Today:  WE HAD A BIG CHANGE IN SILVER INVENTORY TONIGHT: A WITHDRAWAL OF 1.229 MILLION OZ/

INVENTORY RESTS AT 333.178 MILLION OZ

 

end

.

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

1. Today, we had the open interest in silver RISE BY 4,889 contracts from 187,227 UP TO 192,116 (AND now A LITTLE CLOSER TO THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) WITH YESTERDAY’S 9 CENT GAIN IN TRADING. SILVER RESPONDED TO THE GEOPOLITICAL CLIMATE WHEREBY TRUMP THREATENED TO SHUT DOWN GOVERNMENT UNLESS HE GOT HIS WALL. NEWBIE SPECS ENTERED THE ARENA.  OLD SPECS THINKING THAT OPTIONS EXPIRY WEEK  NEVER WITNESSES A SILVER RISE, SOLD SOME OF THEIR LONGS FOR A PROFIT.  THE BANKERS HAD NO CHOICE BUT TO SUPPLY SOME NEW SHORTS AND AGAIN THEY COULD NOT COVER. THE BANKERS KEPT  SILVER IN CHECK TELEGRAPHING AN ATTEMPTED RAID WHICH AGAIN FAILED THIS MORNING

 

RESULT:  A MUCH HIGHER OI WITH A TINY HIGHER PRICE.

(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 16.19 POINTS OR 0.49{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}   / /Hang Sang CLOSED UP 166.93 POINTS OR .43{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/ The Nikkei closed DOWN 80.81 POINTS OR 0.42{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Australia’s all ordinaires CLOSED UP 0.15{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Chinese yuan (ONSHORE) closed UP at 6.6617/Oil DOWN to 48.14 dollars per barrel for WTI and 52.34 for Brent. Stocks in Europe OPENED GREEN , Offshore yuan trades  6.6613 yuan to the dollar vs 6.6617 for onshore yuan. NOW THE OFFSHORE MOVED STRONGER  TO THE ONSHORE YUAN/ ONSHORE YUAN STRONGER (TO THE DOLLAR)  AND THE OFFSHORE YUAN IS MUCH STRONGER TO THE DOLLAR AND THIS IS COUPLED WITH THE STRONGER DOLLAR. CHINA IS NOT  HAPPY TODAY

Read More @ HarveyOrganBlog.com

Leaked Mnuchin Pic Shows ONLY 1 GOLD Bar Left at Fort Knox!!!

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from SilverDoctors:

The photo from just now is epic! We are breathless, speechless, and not quite sure what to make of it… 

“You mean to tell me this is all that’s left???”

Read More @ SilverDoctors.com

The Truth About the Fort Knox Gold

by Jim Rickards, Daily Reckoning:

One of the little-known items on the Fed’s balance sheet is a vital asset it received from the U.S. Treasury a long time ago…

During the Great Depression, in 1933, President Roosevelt issued an executive order requiring anyone with gold to surrender it to a Federal Reserve bank or any member bank of the Federal Reserve system.

The Federal Reserve banks also required the commercial banks to hand over their gold to the Fed. Now, suddenly, the gold went out of the commercial banks into the Federal Reserve Bank.

But under the Gold Reserve Act of 1934, the Fed was ordered to surrender all its gold to the Treasury Department. All the nation’s gold in effect came under direct government ownership.

Now, this is key: The Federal Reserve is actually a private system, while the Treasury is an arm of the U.S. government. And the Fifth Amendment of the Constitution prevents the government from taking private property without just compensation.

To get around that legality, the “just compensation” was a gold certificate the Treasury issued to the Fed in exchange for its physical gold.

To this day, the Fed carries that gold certificate on its balance sheet.

The Treasury officially values its gold at $42 an ounce. That was the official gold price from 1973, two years after the U.S. abandoned the Bretton Woods system. Of course, the market price of gold today is almost $1,300 an ounce.

But if you take the face value of the gold on the Fed balance sheet, divide it by $42 an ounce and then come up with a number of ounces and convert that into tons, it comes out to over 8,000 tons.

That’s highly interesting, because that’s how much gold the Treasury currently owns.

The Treasury needs at least 8,000 tons of gold to back up that paper certificate it handed the Fed back in the 1930s to satisfy the Fifth Amendment.

If you take the 8,000 tons on the Fed balance sheet in the form of this gold certificate, market to market at $1,300, that mounts to well over $300 billion.

So the secret to the Fed’s balance sheet is its “hidden gold asset,” that gold certificate it received from the Treasury in the 1930s.

Nobody talks about this or admits it. But our whole system is based on gold.

But what about the gold in Fort Knox? Is it actually there?

There is a lot of confusion on this subject.

First off, Fort Knox was built in 1937 partly to house gold that the Treasury was scooping up after the Gold Reserve Act took effect. The gold had been kept it in vaults in the basement of the Treasury. But they ran out of space, so they built Fort Knox to house the gold.

Many gold bugs and conspiracy theorists say there is no actual gold in Fort Knox. They say the reason the government will not audit the gold, for example, is because the gold is not there.

But the truth is quite the opposite.

If you are the Fed or the Treasury and you want people to think that gold is unimportant — which they do — why would you audit it?

You audit things that are important. You do not audit things that are unimportant. If the Fed doesn’t want you to think that gold is important, it follows that they would not audit it. Auditing it pays gold too much respect.

I am in favor of an audit, just to be clear. But the fact that the government does not audit the gold does not tell you that the gold is not there. They just do not want you to pay any attention to it.

But is the gold actually in Fort Knox?

Let me say it right now: Yes, the gold is there. I actually have some evidence that the gold is there from military sources.

Incidentally, most people think all the Treasury gold is in Fort Knox. But that is not correct. A little more than half the gold is at Fort Knox, but the rest is stored at West Point on the Hudson River in New York.

Read More @ DailyRickards.com

U.S. Banks Precious Metals Derivative Exposure Surged In The Beginning Of 2017

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by Steve St. Angelo, SRSrocco:

According to the most recent report on the U.S. Financial Institutions Derivatives trading activity, the U.S. banks held a record amount of precious metals contracts in the first quarter of 2017. Not only did the U.S. banks report a record amount of precious metals contracts, but they also held an unprecedented quantity in notional value of commodity and equity derivative contracts.

There just seems to be a lot of paper floating around in our highly inflated stock, bond, and Forex markets. And… there needs to be. Without an ever increasing amount of leverage via their derivative bets and hedging, these markets would be in serious trouble. Furthermore, the practice of using contracts to hedge bets upon on other derivative bets has put the financial market in a highly fragile state.

The Office of the Comptroller of the Currency (OCC) put out its First Quarter 2017 Quarterly Report on Bank Trading and Derivative Activities. In that report, they published the following chart on the U.S. Banks’ notional value in precious metals contracts:

As we can see in the chart, the overall trend has continued higher since 2000. What is interesting is that the notional value of precious metals contracts held by the U.S. banks was even greater in the first quarter of 2017 versus Q4 2012 when the prices of the precious metals were much higher.

In looking at previous data, some quarters reported a larger amount of precious metals contracts, which was due to the banks adding short contracts as the price of precious metals increased. However, Q1 2017 of $43.6 billion was up considerably versus the $28.3 billion in Q1 2016.

For example, in Q3 2016, U.S. banks also held $43.6 billion in precious metals contracts. Again, this was due to a lot of short contracts held by the U.S. banks when the gold price surged to a high of $1,366 in the third quarter of 2016. As the gold price sold off over the next several months, the precious metals contracts declined in the fourth quarter of 2016:

We can see this in the last bar on the chart on the right. But what is interesting is the significant increase in U.S. banks’ precious metals exposure in the first quarter of 2017, shown in the first chart above, when the number of short gold contracts the large U.S. banks held declined significantly in the graph below:

Now, this is only showing the U.S. banks’ gold contracts. These contracts do not include other precious metals, such as silver, platinum, and palladium. However, gold is by far the largest market. If we include the FX contracts (forward exchange contracts), the total notional amount is enormous:

The total notional amount of U.S. banks’ FX & Gold Contracts was a stunning $34.5 trillion in the first quarter of 2017, up from $30.7 trillion at the end of 2016.  Here is the definition of a Forward Exchange Contract by Investopedia:

Forward Exchange Contract: A forward exchange contract is a special type of foreign currency transaction. Forward contracts are agreements between two parties.

Forward contracts are not traded on exchanges, and standard amounts of currency are not traded in these agreements. They cannot be canceled except by the mutual agreement of both parties involved. The parties involved in the contract are generally interested in hedging a foreign exchange position or taking a speculative position.

The nature of forward exchange contracts protects both parties from unexpected or adverse movements in the currencies’ future spot rates.

So, these FX Contracts are hedges on the movements of different fiat currencies spot prices. We don’t know the percentage breakdown of the Gold or FX contracts. However, I would imagine the majority being in the FX Contracts that are hedging the different fiat currencies.

Read More @ SRSrocco.com