Monday, October 14, 2019

What Is Money? (Yes, We’re Talking About Bitcoin)

by Charles Hugh Smith, Of Two Minds:

Good ideas don’t require force. That describes the Internet, mobile telephony and cryptocurrencies.

What is money? We all assume we know, because money is a commonplace feature of everyday life. Money is what we earn and exchange for goods and services. Everyone thinks the money they’re familiar with is the only possible system of money—until they run across an entirely different system of money.

Then they realize money is a social construct, a confluence of social consensus and political force– what we agree to use as money, and what our government mandates we use as money under threat of punishment.

We assume that our monetary system is much like a Law of Nature: since it’s ubiquitous, it must be the only possible system.

But there are no financial Laws of Nature for money. In the past, notched sticks served as money. In other non-Western cultures, giant stone disks (rai, a traditional form of money on the island of Yap) and even salt served as money.

In our experience, 1) money is issued by a government or central bank (i.e. a currency), and each of these currencies is the sole form of legal money (legal tender) in the nation-state that issues the currency; 2) each of these currencies is available in physical coins and paper bills and digitally as entries in bank and credit card accounts; 3) our currency is borrowed into existence by the central bank or by fractional reserve lending in private banks, and 4) this currency meets all of the utility traditionally required of money:

1. It is divisible into smaller units, i.e. a dollar is divided into quarters, dimes, nickels and pennies, or it is a small unit (for example, the Japanese yen, which is roughly equivalent to a U.S. penny).

2. It is secure, i.e. everyone can’t just print or make their own in unlimited quantities.

3. It is fungible, meaning all the units are interchangeable.

4. It is easily transportable.

5. It has a market value that’s easily discoverable, so buyers and sellers can confidently exchange it for goods and services.

But history informs us that money doesn’t have to be issued by governments,nor does it have to be borrowed into existence by banks, nor does every form of money have to satisfy all five requirements; it’s possible to have multiple forms of money which each serve different purposes.

In other words, our system of money is merely one of many possible systems of money. With the advent of digital cryptocurrencies, the range of monetary systems has expanded greatly.

We tend to look at money as value-neutral and apolitical, but as a social construct, it reflects specific social and political values. As I’ve explained in previous posts, our money is created and distributed at the very top of the wealth-power pyramid.

This feature of our money optimizes the accumulation of wealth and power in the top of the pyramid, and thus our social contract of money guarantees the concentration of wealth and thus rising wealth-power inequality.

To understand why, we need to start with money’s three basic functions.

 

As a general rule, money is:

1. A store of value (i.e. it serves as a reliable repository of wealth);

2. As means of exchange between buyers and sellers;

3. A tool for recording transactions of credit/debt (i.e. it facilitates recording transactions and keeping track of credits, debts, assets and payments).

Modern-day government-issued currencies perform all three roles. The U.S. dollar, for example, acts as a store of purchasing power, a global means of exchange, and as a tool to keep track of transactions, debts and financial assets.

But in other social constructs, different kinds of money perform different functions.The giant stone disks on Yap (rai) are a store of value, and a means of exchange for high-value items.

But the recording of transactions involving the rai is done in an oral-history ledger: the transfer of ownership of a particular rai is recorded in the community memory, and so the heavy 2-meter-high stone doesn’t have to actually move in physical space to transfer ownership. As a result, a stone rai resting at the bottom of the lagoon is a perfectly functional store of value and means of exchange.

The rai are quarried on another island, and not easily counterfeited. They are not necessarily interchangeable; the value of each one is recorded in the oral record. But since a rai isn’t divisible, or easily transportable, another form of money is used for day-to-day transactions.

The point here is there is no intrinsic reason why the three primary functions of money have to be satisfied by one single currency.

Nor is there any intrinsic reason why one form of money has to be equally tradable for all goods and services. In some cultures, certain forms of money hold symbolic value and are used solely for transactions of symbolic import, for example, as a wedding dowry.

Read More @ OfTwoMinds.com

BITCOIN RISES TO $15,808 PER COIN

by Harvey Organ, Harvey Organ Blog:

ANOTHER RAID WITH GOLD FALTERING BY $12.70 TO $1263.95 AND SILVER IS DOWN 19 CENTS TO $15.77/ GOLD HAS ANOTHER 11000 PLUS EFP TRANSFER TO LONDON/SILVER HAS 3800 PLUS CONTRACTS TRANSFERRED/PALESTINIAN PLAN ANOTHER INTIFADA/SAUDI ALSO RESPONDS THAT THERE WILL BE CONSEQUENCES/IN THE USA IT LOOKS LIKE WE MAY HAVE A GOVERNMENT SHUTDOWN/IT NOW LOOKS LIKE DEPUTY DIRECTOR OF THE FBI MCCABE TOLD AGENTS TO LIE ABOUT BENGHAZI

GOLD: $1251.25 DOWN $12.70

Silver: $15.77 DOWN 19 cents

Closing access prices:

Gold $1247.70

silver: $15.72

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: $1271.43 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME: $1263.70

PREMIUM FIRST FIX: $7.73

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SECOND SHANGHAI GOLD FIX: $1265.25

NY GOLD PRICE AT THE EXACT SAME TIME: $1257.95

Premium of Shanghai 2nd fix/NY:$7.30

SHANGHAI REJECTS NY /LONDON PRICING OF GOLD

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LONDON FIRST GOLD FIX: 5:30 am est $1256.80

NY PRICING AT THE EXACT SAME TIME: $1256.80

LONDON SECOND GOLD FIX 10 AM: $1255.00

NY PRICING AT THE EXACT SAME TIME. 1254.40

For comex gold:

DECEMBER/

 NUMBER OF NOTICES FILED TODAY FOR DECBER CONTRACT:  38 NOTICE(S) FOR 3800 OZ.

TOTAL NOTICES SO FAR: 6033 FOR 603300 OZ (18.765 TONNES),

For silver:

DECEMBER

84 NOTICE(S) FILED TODAY FOR

420,000 OZ/

Total number of notices filed so far this month: 5231 for 26,155,000 oz

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Bitcoin: BID $14,777/OFFER $14,811, up $1200 (morning) 

BITCOIN : BID $15,808 OFFER: $15908 // UP $2281 (CLOSING)

end

Let us have a look at the data for today

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In silver, the total open interest ROSE BY HUGE 1661 contracts from 192,970 RISING TO 194,631 DESPITE YESTERDAY’S  10 CENT FALL IN SILVER  AND NOW WELL BELOW THE HUGE $17.25 SILVER RESISTANCE.   WE HAD SURPRISINGLY NO  COMEX LIQUIDATION AS WE WERE AGAIN NOTIFIED THAT WE HAD ANOTHER GIGANTIC NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE :  3903 EFP’S FOR MARCH (AND ZERO FOR DEC AND OTHER MONTHS) AND THUS TOTAL ISSUANCE OF 3903 CONTRACTS.   I GUESS 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. YESTERDAY WITNESSED 2881 EFP’S FOR SILVER ISSUED.

ACCUMULATION FOR EFP’S/SILVER/ STARTING FROM FIRST DAY NOTICE/FOR MONTH OF DECEMBER:  19,357 CONTRACTS (FOR 5 TRADING DAYS TOTAL 19.357 CONTRACTS OR 96.78 MILLION OZ: AVERAGE PER DAY: 3,871 CONTRACTS OR 19.35 MILLION OZ/DAY)

RESULT: A GOOD SIZED RISE IN OI COMEX DESPITE THE 10 CENT FALL IN SILVER PRICE.  HOWEVER  WE HAD ALL OF OUR COMEX LONGS WHICH EXITED OUT OF THE SILVER COMEX  TRANSFERRED THEIR OI TO LONDON THROUGH THE EFP ROUTE:  FROM THE CME DATA 3903 EFP’S  WERE ISSUED TODAY  FOR A DELIVERABLE CONTRACT OVER IN LONDON WITH A FIAT BONUS. IN ESSENCE THE  DEMAND FOR SILVER PHYSICAL INTENSIFIES GREATLY. WE REALLY GAINED 5564 OI CONTRACTS i.e. 3903 open interest contracts headed for London (EFP’s) TOGETHER WITH A INCREASE OF 1661 OI COMEX CONTRACTS. AND ALL OF THIS INCREASED DEMAND  HAPPENED WITH THE FALL IN PRICE OF SILVER BY ANOTHER 10 CENTS WITH A LOW CLOSING PRICE OF $15.96 YESTERDAY. YET WE STILL HAVE A MASSIVE 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. 0.973 BILLION TO BE EXACT or 139% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT DECEMBER MONTH/ THEY FILED: 84 NOTICE(S) FOR 420,000 OZ OF SILVER

In gold, the open interest FELL BY A CONSIDERABLE 8679 CONTRACTS DOWN TO 464,116  DESPITE THE SMALL RISE  IN PRICE OF GOLD  YESTERDAY ($1.45).  HOWEVER,  THE TOTAL NUMBER OF GOLD EFP’S ISSUED WEDNESDAY FOR THURSDAY  TOTALED ANOTHER GIGANTIC 11,871 CONTRACTS OF WHICH THE MONTH OF DECEMBER SAW 0 CONTRACTS AND FEB SAW THE ISSUANCE OF 11871 CONTRACTS. The new OI for the gold complex rests at 465,793. DEMAND FOR GOLD INTENSIFIES GREATLY AS WE WITNESS THE HUGE NUMBER OF EFP TRANSFERS TOGETHER WITH THE MASSIVE AMOUNT OF GOLD OUNCES STANDING FOR DECEMBER. 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 AND ON TOP OF THAT IT IS TAKING A FURTHER 13 WEEKS TO OBTAIN PHYSICAL FROM THE POINT WHEN FORWARDS BECOME DUE. IN ESSENCE WE HAVE A NET GAIN OF 3192 OI CONTRACTS: 8679 OI CONTRACTS LEFT THE  COMEX  BUT  11,871 OI CONTRACTS NAVIGATED OVER TO LONDON. THE CME HAS BEEN VERY TARDY IN THEIR REPORTING OF EFP ISSUANCE.  THEY ARE IMMEDIATELY REMOVING COMEX OPEN INTEREST NUMBERS BUT DELAYING RELEASE OF EFP’S FOR 24 HOURS OR GREATER AS NO DOUBT THEY ARE NEGOTIATING WITH THE LONGS FOR A FIAT BONUS.

YESTERDAY, WE HAD 21,484 EFP’S ISSUED.

ACCUMULATION OF EFP’S/ GOLD(EXCHANGE FOR PHYSICAL) FOR THE MONTH OF DECEMBER STARTING WITH FIRST DAY NOTICE:  75,623 CONTRACTS OR 7.5623 MILLION OZ OR 235 TONNES (5 TRADING DAYS AND THUS AVERAGING:15,124 EFP CONTRACTS PER TRADING DAY OR 1.524 MILLION OZ)

Result: A LARGE SIZED DECREASE IN OI DESPITE THE SMALL SIZED RISE IN PRICE IN GOLD YESTERDAY ($1.45). WE  HAD A LARGE  NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 11,871. THERE OBVIOUSLY DOES NOT SEEM TO BE MUCH PHYSICAL GOLD AT THE COMEX AND YET WE REACHED THE HUGE DELIVERY 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 11,871 EFP CONTRACTS ISSUED, WE HAD A NET GAIN OPEN INTEREST OF 3192  contracts:

11,871 CONTRACTS MOVE TO LONDON AND 8679 CONTRACTS LEFT THE  COMEX. THE NET GAIN ON THE TWO EXCHANGES IN OZ: 3,192,000 OZ AND IN TONNES: 9.918 TONNES

we had:  38  notice(s) filed upon for 3800 oz of gold.

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

GLD:

Today, a BIG CHANGE in gold inventory at the GLD/A WITHDRAWAL OF 2.66 TONNES FROM THE GLD

Inventory rests tonight: 842.81 tonnes.

SLV

TODAY WE HAD  NO CHANGES IN SILVER INVENTORY AT THE SLV:

INVENTORY RESTS AT 321.713 MILLION OZ

end

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

1. Today, we had the open interest in silver SURPRISIN
GLY ROSE BY A LARGE 1661 contracts from 192,970 UP  TO 194,631 (AND now A LITTLE FURTHER FROM THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) DESPITE THE LOSS IN PRICE OF SILVER PRICE AND CONTINUAL BOMBARDMENT (A FALL OF 10 CENTS ). HOWEVER,OUR BANKERS  USED THEIR EMERGENCY PROCEDURE TO ISSUE ANOTHER HUGE  3903  PRIVATE EFP’S FOR MARCH (WE DO NOT GET A LOOK AT THESE CONTRACTS AS IT IS PRIVATE BUT THE CFTC DOES AUDIT THEM).  EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  WE HAD ZERO COMEX SILVER COMEX LIQUIDATION. IF WE TAKE THE OI GAIN AT THE COMEX (1661 CONTRACTS)   TO THE 3903 OI TRANSFERRED TO LONDON THROUGH EFP’S  WE OBTAIN A NET GAIN OF  5564  OPEN INTEREST CONTRACTS, ON TOP OF THE HUGE AMOUNT OF SILVER OUNCES THAT ARE STANDING FOR METAL IN DECEMBER (SEE BELOW). THE NET GAIN IN OZ: 27.82 MILLION OZ!!! 

RESULT: A HUGE SIZED INCREASE IN SILVER OI AT THE COMEX DESPITE THE 10- CENT FALL IN PRICE (WITH RESPECT TO YESTERDAY’S TRADING).  BUT WE ALSO  HAD ANOTHER 3903 EFP’S ISSUED TRANSFERRING  COMEX LONGS OVER TO LONDON . TOGETHER WITH THE HUGE AMOUNT OF SILVER OUNCES STANDING FOR DECEMBER, DEMAND FOR PHYSICAL SILVER INTENSIFIES DESPITE THE CONSTANT RAIDS.

(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 MONDAY night/TUESDAY morning: Shanghai closed DOWN 21.91 points or .67% /Hang Sang CLOSED UP 78.79 pts or 0.28% / The Nikkei closed UP 320.99 POINTS OR 1.45%/Australia’s all ordinaires CLOSED UP 0.51%/Chinese yuan (ONSHORE) closed DOWN at 6.6100/Oil DOWN to 56.09 dollars per barrel for WTI and 61.48 for Brent. Stocks in Europe OPENED ALL GREEN .    ONSHORE YUAN CLOSED DOWN AGAINST THE DOLLAR AT 6.6180. OFFSHORE YUAN CLOSED DOWN AGAINST  THE ONSHORE YUAN AT 6.6228 //ONSHORE YUAN WEAKER AGAINST THE DOLLAR/OFF SHORE WEAKER TO THE DOLLAR/. THE DOLLAR (INDEX) IS SLIGHTLY STRONGER AGAINST ALL MAJOR CURRENCIES. CHINA IS NOT  HAPPY TODAY.(SHANGHAI MARKET VERY  WEAK)

 

Read More @ HarveyOrganBlog.com

China To Test Trade Petro-Yuan Oil Contracts THIS WEEKEND

from SilverDoctors:

Bloomberg just went full Petro-yuan. There’s just one glaring omission. Here’s the details…

One of the main understandings a person gets when they wake up to gold and silver is the inevitable death of the Petro-dollar.

By now most in the precious metals space should be keen on the fact that China is the up-and-comer in the gold market.

From the Shanghai Gold Exchange roll-out last year, and the IMF SDR basket inclusion the year before, China has been rising with it’s role in global finance.

If there was a theme to China this year, it would be the highly polarizing rise of the Petro-yuan theme.

Today this theme has come front and center in the MSM.

Here’s Bloomberg just today:

China’s moves to set up trading oil in yuan have sparked enthusiasm about what could be a shift in the global financial system: a reduced role for the U.S. dollar. Players like Adam Levinson, founder of hedge fund Graticule Asset Management Asia, call it a “huge story” to come.

But with policy makers prioritizing market stability over internationalization, plans laid back in 2012 to start oil-futures trading priced in yuan or dollars in Shanghai that year are still pending. The latest from the city’s International Energy Exchange: it’s coming soon, with test trades scheduled this weekend.

Let’s stop there for a moment.

Notice the key words “market stability”.

Note to self: The Fed has a mandate for “price stability”. Interesting.

Secondly, they will begin test trades this weekend. Interesting.

Bloomberg continues:

As the world’s largest energy consumer and an increasing source of investment capital for oil-producing nations, China has an interest in using its own currency rather than that of a geopolitical competitor. One hurdle for setting up a rival to Brent or West Texas Intermediate: Overseas oil producers and traders would need to swallow China’s capital controls and penchant for occasional market interventions.

Hmmm: Overseas oil producers and traders will need to swallow ‘capital controls’ and ‘occasional market interventions’?

I’m sure oil producing countries would take those headaches and even losses eight days a week rather than having the war machine of the United States bombing their lands into the stone age all the while occupying their lands either before or after the fact.

The article continues:

“The dollar is so entrenched that it’s difficult to see that role diminishing,” said Shady Shaher, head of macro strategy at Dubai-based lender Emirates NBD PJSC. “It makes sense in the long-run to look at transactions in yuan, because China is a key market,” though it will take years to develop, he said. 

Of course they would say that. The Dubai based Emirates NBD is full of a bunch of too-big-to fail “systemically important financial institutions” (specifically a bunch of Standard Chartered alumni) who will run the dollar until the dollar no longer serves them.

Will it take days, months, or “years to develop” as the banker claims?

We can be sure of one thing: If a too-big-too-fail banker is talking, they are either misdirecting at best, or lying at worst, so any timelines thrown out by big-shots in banking are to be taken with a grain of salt.

Most of the time, they are on the other side of the trade anyway, meaning they say one thing but mean another.

For example: “It could take years” could just as well mean “coming next month”.

But let’s save the best of the Bloomberg article for last:

Chinese regulators have made it clear that they want stability in financial markets, including the new futures contracts to be listed” for oil, said Li Zhoulei, an analyst with Everbright Futures Co. in Shanghai. “It remains to be seen how the crude contract can gain influence and at the same time avoid excessive volatility.”

Read More @ SilverDoctors.com

GOLD HOLDS: UP $1.45 TO $1263.95/SILVER IS STILL HELD UNDER WATER AT $15.96 DOWN 10 CENTS

by Harvey Organ, Harvey Organ Blog:

COMEX HAS OVER 21,000 GOLD EFP TRANSFERS TO LONDON (OVER 2.1 MILLION OZ)/SILVER EFP OVER 4400 CONTRACTS OR 22.2 MILLION OZ/ BITCOIN RISES ABOVE $13,000/LARGEST BITCOIN MINER EXCHANGE HAS ALL OF ITS BITCOIN STOLEN ($50 MILLION DOLLARS WORTH) AND THESE CANNOT BE REPLACED; OWNERS LOSE THEIR INVESTMENT/TRUMP RECOGNIZES JERUSALEM AS ISRAEL’S CAPITAL AND WILL MOVE EMBASSY IN 6 MONTHS OR SO/ THERESA MAY WITNESSES THE POUND DROP AS THERE MAY BE A MUTINY IN HER PARTY

GOLD: $1263.95  UP $1.45

Silver: $15.96 DOWN 10 cents

Closing access prices:

Gold $1263.70

silver: $15.97

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: $1272.97 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME: $1266.07

PREMIUM FIRST FIX: $6.90

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SECOND SHANGHAI GOLD FIX: $1274.72

NY GOLD PRICE AT THE EXACT SAME TIME: $1267.70

Premium of Shanghai 2nd fix/NY:$7.02

SHANGHAI REJECTS NY /LONDON PRICING OF GOLD

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LONDON FIRST GOLD FIX: 5:30 am est $1268.55

NY PRICING AT THE EXACT SAME TIME: $1268.70

LONDON SECOND GOLD FIX 10 AM: $1263.20

NY PRICING AT THE EXACT SAME TIME. 1264.71???

For comex gold:

DECEMBER/

 NUMBER OF NOTICES FILED TODAY FOR DECBER CONTRACT:  2981 NOTICE(S) FOR 298,100 OZ.

TOTAL NOTICES SO FAR: 5995 FOR 599,500 OZ (18.646 TONNES)

For silver:

DECEMBER

137 NOTICE(S) FILED TODAY FOR

685,000 OZ/

Total number of notices filed so far this month: 5147 for 25,735,000 oz

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Bitcoin: BID $12,612/OFFER $12,673, up $987 (morning) 

BITCOIN : BID $13,152 OFFER: $13,212 // UP $1527 (CLOSING)

end

Let us have a look at the data for today

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In silver, the total open interest ROSE BY HUGE 2915 contracts from 190,005 RISING TO 192,970 DESPITE YESTERDAY’S HUGE 28 CENT FALL IN SILVER  AND NOW WELL BELOW THE HUGE $17.25 SILVER RESISTANCE.   WE HAD SURPRISINGLY NO  COMEX LIQUIDATION AS WE WERE AGAIN NOTIFIED THAT WE HAD ANOTHER GIGANTIC NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE :  4432 EFP’S FOR MARCH (AND ZERO FOR DEC AND OTHER MONTHS) AND THUS TOTAL ISSUANCE OF 4452 CONTRACTS.   I GUESS 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. YESTERDAY WITNESSED 2881 EFP’S FOR SILVER ISSUED.

ACCUMULATION FOR EFP’S/SILVER/ STARTING FROM FIRST DAY NOTICE/FOR MONTH OF DECEMBER:  15,454 CONTRACTS (FOR 4 TRADING DAYS TOTAL 15,454 CONTRACTS OR 77.27 MILLION OZ: AVERAGE PER DAY: 3,863 CONTRACTS OR 19.31 MILLION OZ/DAY)

RESULT: A HUGE SIZED RISE IN OI COMEX DESPITE THE 28 CENT FALL IN SILVER PRICE.  HOWEVER  WE HAD ALL OF OUR COMEX LONGS WHICH EXITED OUT OF THE SILVER COMEX  TRANSFERRED THEIR OI TO LONDON THROUGH THE EFP ROUTE:  FROM THE CME DATA 4432 EFP’S  WERE ISSUED TODAY  FOR A DELIVERABLE CONTRACT OVER IN LONDON WITH A FIAT BONUS. IN ESSENCE THE  DEMAND FOR SILVER PHYSICAL INTENSIFIES GREATLY. WE REALLY GAINED 7347 OI CONTRACTS i.e. 4432 open interest contracts headed for London (EFP’s) TOGETHER WITH A INCREASE OF 2915 OI COMEX CONTRACTS. AND ALL OF THIS INCREASED DEMAND  HAPPENED WITH THE FALL IN PRICE OF SILVER BY ANOTHER 28 CENTS WITH A LOW CLOSING PRICE OF $16.06 YESTERDAY. YET WE STILL HAVE A MASSIVE 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. 0.964 BILLION TO BE EXACT or 138% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT DECEMBER MONTH/ THEY FILED: 137 NOTICE(S) FOR 685,000 OZ OF SILVER

In gold, the open interest FELL BY A TINY 611 CONTRACTS DOWN TO 472,795  DESPITE THE HUGE FALL  IN PRICE OF GOLD  YESTERDAY ($12.50).  HOWEVER,  THE TOTAL NUMBER OF GOLD EFP’S ISSUED TUESDAY FOR WEDNESDAY  TOTALED ANOTHER GIGANTIC 21,484 CONTRACTS OF WHICH THE MONTH OF DECEMBER SAW 0 CONTRACTS AND FEB SAW THE ISSUANCE OF 21,484 CONTRACTS. The new OI for the gold complex rests at 473,438. DEMAND FOR GOLD INTENSIFIES GREATLY AS WE WITNESS THE HUGE NUMBER OF EFP TRANSFERS TOGETHER WITH THE MASSIVE AMOUNT OF GOLD OUNCES STANDING FOR DECEMBER. 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 AND ON TOP OF THAT IT IS TAKING A FURTHER 13 WEEKS TO OBTAIN PHYSICAL FROM THE POINT WHEN FORWARDS BECOME DUE. IN ESSENCE WE HAVE A NET GAIN OF 20,905 OICONTRACTS: 611 OI CONTRACTS LEFT THE  COMEX  BUT  21,484 OI CONTRACTS NAVIGATED OVER TO LONDON. THE CME HAS BEEN VERY TARDY IN THEIR REPORTING OF EFP ISSUANCE.  THEY ARE IMMEDIATELY REMOVING COMEX OPEN INTEREST NUMBERS BUT DELAYING RELEASE OF EFP’S FOR 24 HOURS OR GREATER AS NO DOUBT THEY ARE NEGOTIATING WITH THE LONGS FOR A FIAT BONUS.

YESTERDAY, WE HAD 11,033 EFP’S ISSUED.

ACCUMULATION OF EFP’S/ GOLD(EXCHANGE FOR PHYSICAL) FOR THE MONTH OF DECEMBER STARTING WITH FIRST DAY NOTICE:  63,752 CONTRACTS OR 6.375 MILLION OZ OR 198 TONNES (4 TRADING DAYS AND THUS AVERAGING:15,938 EFP CONTRACTS PER TRADING DAY OR 1.594 MILLION OZ)

Result: A SMALL SIZED INCREASE IN OI  WITH THE HUGE SIZED FALL IN PRICE IN GOLD YESTERDAY ($12.50). WE  HAD A HUMONGOUS  NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 21,484. THERE OBVIOUSLY DOES NOT SEEM TO BE MUCH PHYSICAL GOLD AT THE COMEX AND YET WE REACHED THE HUGE DELIVERY 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 21,484 EFP CONTRACTS ISSUED, WE HAD A NET GAIN OPEN INTEREST OF 20,905  contracts:

21,484 CONTRACTS MOVE TO LONDON AND 611 CONTRACTS LEFT THE  COMEX. THE NET GAIN IN OZ: 2.091 MILLION OZ AND IN TONNES: 65.04 TONNES

we had:  2981  notice(s) filed upon for 298,100 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 at the GLD/

Inventory rests tonight: 845.47 tonnes.

SLV

TODAY WE HAD  NO CHANGES IN SILVER INVENTORY AT THE SLV:

INVENTORY RESTS AT 321.713 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 HUMONGOUS 2915 contractsfrom 190,055 UP  TO 192,970 (AND now A LITTLE FURTHER FROM THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) DESPITE THE HUGE LOSS IN PRICE OF SILVER PRICE AND CONTINUAL BOMBARDMENT (A FALL OF 28 CENTS ). HOWEVER,OUR BANKERS  USED THEIR EMERGENCY PROCEDURE TO ISSUE ANOTHER HUGE  4432  PRIVATE EFP’S FOR MARCH (WE DO NOT GET A LOOK AT THESE CONTRACTS AS IT IS PRIVATE BUT THE CFTC DOES AUDIT THEM).  EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  WE HAD ZERO COMEX SILVER COMEX LIQUIDATION. IF WE TAKE THE OI GAIN AT THE COMEX (2915 CONTRACTS)   TO THE 4432 OI TRANSFERRED TO LONDON THROUGH EFP’S  WE OBTAIN A NET GAIN OF  7347 OPEN INTEREST CONTRACTS, ON TOP OF THE HUGE AMOUNT OF SILVER OUNCES THAT ARE STANDING FOR METAL IN DECEMBER (SEE BELOW). THE NET GAIN IN OZ: 36.73 MILLION OZ!!! 

RESULT: A HUGE SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 28 CENT FALL IN PRICE (WITH RESPECT TO YESTERDAY’S TRADING).  BUT WE ALSO  HAD ANOTHER 4432 EFP’S ISSUED TRANSFERRING  COMEX LONGS OVER TO LONDON . TOGETHER WITH THE HUGE AMOUNT OF SILVER OUNCES STANDING FOR DECEMBER, DEMAND FOR PHYSICAL SILVER INTENSIFIES.

(report Harvey)

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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 MONDAY night/TUESDAY morning: Shanghai closed DOWN 9.71 points or .29% /Hang Sang CLOSED DOWN 618.00 pts or 2.34% / The Nikkei closed DOWN 445.34 POINTS OR 1.97%/Australia’s all ordinaires CLOSED DOWN 0.45%/Chinese yuan (ONSHORE) closed DOWN at 6.6150/Oil DOWN to 56.89 dollars per barrel for WTI and 62.20 for Brent. Stocks in Europe OPENED MOSTLY IN THE RED .    ONSHORE YUAN CLOSED DOWN AGAINST THE DOLLAR AT 6.6150. OFFSHORE YUAN CLOSED DOWN AGAINST  THE ONSHORE YUAN AT 6.6180 //ONSHORE YUAN WEAKER AGAINST THE DOLLAR/OFF SHORE WEAKER TO THE DOLLAR/. THE DOLLAR (INDEX) IS SLIGHTLY STRONGER AGAINST ALL MAJOR CURRENCIES. CHINA IS NOT  HAPPY TODAY.(MARKETS VERY  WEAK)

Read More @ Harvey Organ Blog:

GOLD: Another Tradable Low Coming

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by Turd Ferguson, TF Metals:

The divergence from the USDJPY correlation illuminates The Bullion Bank effort to smash price below the 200-day MA and flush out as many Spec longs as possible before the next rise. We saw this is May and in July and we are seeing it again now.

I have no doubt that what you are about to read is correct.

Since last Monday, when the USDJPY was forcibly rallied from below 111, the total change in this all-important HFT driver is 130 “pips”…from 110.90 to 112.20. After discovering and then closely following the yen-gold correlation for over three years, we’ve learned that a one point move in the USDJPY generally correlates to a $10-12 move in the price of Comex Digital Gold.

The current 130 pip move should thus translate into roughly a $15 drop in Comex gold. Considering that price was $1298 last Monday, the current price should be around $1283. Instead, I have a last of $1267. Why the 2X difference?

It’s simple. Over the past several days there has been a concerted and coordinated effort to rig price below the 200-day moving average. And why have The Banks taken this action? In order to engender the same type of Spec long liquidation seen in May and July of this year and displayed on the chart below from October 24:

The CoT survey of last Tuesday gave two alarms that allowed The Banks to trigger this current action.

  1. The Large Spec NET long position in Comex gold had reached 224,417 contracts. This was the highest level in 90 days.
  2. The Large Spec GROSS short position fell to just 62,967 contracts. This was the lowest seen since 9/6/16 and thus the second-lowest level seen since 2012.

Judging that the CoT was ripe to be flushed, The Banks took action, striking yesterday at 9:07 am EST. Note the 12,000 contract dump that finally shoved price well-below the 200-day. The selling action that took price another $10 lower in the three hours that followed was brought upon by Spec long liquidation upon seeing price fall below this critical technical indicator.

Read More @ TFmetals.com

End of Year Reminder: Sell ETF Losses; Buy Physical Metals—No Wash Sale Rule

by Jeff Clark, GoldSilver:

We know our readers invest in precious metals in various ways. One way is through ETFs. If you are one of these investors, pay taxes to the U.S., and are holding onto any positions with a loss since the time you bought, here’s a heads-up: if you act by December 31, you can capture that loss on your taxes without losing your exposure to metals.

The “wash sale” rule was designed to discourage people from selling securities at a loss simply to claim a tax benefit. Section 1091 of the U.S. Tax Code defines a “wash sale” as a transaction in which an investor sells a security at a loss, but then repurchases the same or a “substantially similar” security within 30 days (before or after the sale date).

However, in its current form, the wash sale rule only applies to “securities,” and physical precious metals are not included in the definition of “securities.” This means the rule does not apply to bullion ETF holders who sell those securities for a loss and buy physical metals within 30 days before or after their sale of the bullion ETF. While both the bullion ETF and physical metals give you exposure to the price of metals and the volatility insurance that comes with it, the investments are sufficiently different in nature that they do not trigger the wash sale rule.

So, if you have losses on any bullion-backed ETF—gold, silver, platinum or palladium—you can claim that loss on this year’s taxes if you sell it for a loss any time before December 31. But, you can immediately buy physical metals with the proceeds. (This obviously assumes the sale is not in a tax advantaged retirement account.)

There are obvious advantages to this strategy: you can not only claim the loss on your income tax return, but you are permitted to buy physical metals with the proceeds right away. Further… 

1) Precious metals prices are low. Gold and silver are one-third and two-thirds below their 2011 highs, respectively.  It’s bargain hunting season. You can buy gold and silver at the same prices as seven years ago.

2) You can own PHYSICAL metal. Owning a tangible form of wealth not only comes with greater security than a paper form of gold, but it also carries many distinct advantages ETFs and most other investments don’t. I challenge you to glance at the list in that last link and not see how gold and silver bullion can be advantageous to you.

There aren’t many tax strategies left that can work to your advantage as an investor. But this one offers the opportunity to claim a loss and swap buy a superior product that Mike and everyone else at GoldSilver is convinced will soon be the next great financial bubble.

Read more @ GoldSilver.com

Andy Schectman – Anomalies in Metals Markets Persist

by Kerry Lutz, Financial Survival Network:

Andy Schectman runs one of the most trusted companies in the bullion space. He’s confident that the numerous anomalies popping up in the metals markets spell big profits down the road. Things like Palladium selling for more than Platinum. Numistmatic coins selling at par to bullion. And many others. Markets tend to normalize over time and that means profits will result.

Click HERE to listen

Read More @ FinancialSurvivalNetwork.com