Saturday, January 25, 2020

RUSSIA TELLS THE USA THAT IF THEY FREEZE RUSSIA HOLDINGS OF GOLD AND CASH AT THE FRBNY, THEN THEY WILL DECLARE THAT AS AN ACT OF FINANCIAL WAR

by Harvey Organ, Harvey Organ Blog:

YOUR TYPICAL BANKER RAID WITH OPTIONS EXPIRY TOMORROW/GOLD DOWN $12.80 AND SILVER IS DOWN 32 CENTS

GOLD: $1283.10  DOWN $12.30

Silver: $16.56 DOWN 32 cents

Closing access prices:

Gold $1283.20

silver: $16.53

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: $1298.33 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME: $1295.95

PREMIUM FIRST FIX: $2.35

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SECOND SHANGHAI GOLD FIX: $1300.95

NY GOLD PRICE AT THE EXACT SAME TIME: $1295.80

Premium of Shanghai 2nd fix/NY:$5.15

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LONDON FIRST GOLD FIX: 5:30 am est $1294.85

NY PRICING AT THE EXACT SAME TIME: $1294.60

LONDON SECOND GOLD FIX 10 AM: $1283.85

NY PRICING AT THE EXACT SAME TIME. 1284.10

For comex gold:

NOVEMBER/

 NUMBER OF NOTICES FILED TODAY FOR NOVEMBER CONTRACT:  0 NOTICE(S) FOR nil OZ.

TOTAL NOTICES SO FAR: 1064 FOR 106,400 OZ (3.309 TONNES)

For silver:

NOVEMBER

0 NOTICE(S) FILED TODAY FOR

NIL OZ/

Total number of notices filed so far this month: 886 for 4,430,000 oz

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Bitcoin: BID $10,850/OFFER $10,890 up $968 (morning) 

BITCOIN : BID $9882 OFFER: $9922 // UP $160 (CLOSING)

end

Let us have a look at the data for today

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In silver, the total open interest FELL BY  A CONSIDERABLE 4813 contracts from 191,084 DOWN TO 186,272 WITH RESPECT TO YESTERDAY’S TRADING  WHICH SAW SILVER FALL 17 CENTS AND NOW WELL BELOW THE HUGE $17.25 SILVER RESISTANCE.   WE HAD CONSIDERABLE LONG COMEX LIQUIDATION.  HOWEVER WE WERE ALSO NOTIFIED THAT WE HAD ANOTHER LARGE NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE : 3061 DECEMBER EFP’S WERE ISSUED ALONG WITH 1821 EFP’S FOR MARCH FOR A TOTAL ISSUANCE OF 4882 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 820 EFP’S FOR SILVER ISSUED.

RESULT: A FAIR SIZED FALL IN OI COMEX WITH THE DROP IN SILVER PRICE OF 17 CENTS. 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 4882 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 69 OI CONTRACTS i.e.  4882 open interest contracts headed for London (EFP’s) TOGETHER WITH A DECREASE OF 4813 OI COMEX CONTRACTS.

In ounces AT THE COMEX, the OI is still represented by just UNDER 1 BILLION oz i.e. 0.933 BILLION TO BE EXACT or 133% of annual global silver production (ex Russia & ex China).

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

In gold, the open interest COLLAPSED IN A MUCH GREATER FASHION TO WHICH WE HAVE WITNESSED DURING THE PAST TWO YEARS AS WE APPROACH AN ACTIVE DELIVERY MONTH LIKE THIS ONE, I.E. DECEMBER.  THE TOTAL OI FELL BY 34,986 CONTRACTS DOWN TO 503,810 DESPITE THE RISE IN PRICE OF GOLD ($0.55) WITH RESPECT TO YESTERDAY’S TRADING. (PRELIMINARY NUMBERS WERE DOWN BY 12,000 CONTRACTS SO SOMETHING WENT HORRIBLY WRONG FOR THE CME). HOWEVER  THE TOTAL NUMBER OF GOLD EFP’S ISSUED TODAY  TOTALED ANOTHER 13,058 CONTRACTS OF WHICH THE MONTH OF DECEMBER SAW 7171 CONTRACTS AND FEB SAW THE ISSUANCE OF 5887 CONTRACTS. ??? (EMERGENCY??)   The new OI for the gold complex rests at 503,810. DEMAND FOR GOLD INTENSIFIES GREATLY AS WE WITNESS THE HUGE NUMBER OF EFP TRANSFERS. 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 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 HAD A NET LOSS OF 21,928 OI CONTRACTS: 34,986 OI CONTRACTS LOST AT THE  COMEX OI  BUT OF THAT TOTAL  13,058 OI CONTRACTS NAVIGATED OVER TO LONDON. THE CME HAS BEEN VERY TARDY IN THEIR REPORTING OF EFP ISSUANCE.  MY BET IS THAT WITH TOMORROW’S READING WE WILL HAVE A SURPLUS OF 22,000++ OI NAVIGATING TO LONDON.

YESTERDAY, WE HAD 10,304 EFP’S ISSUED.

Result: A HUGE SIZED DECREASE IN OI  WITH THE TINY SIZED RISE IN PRICE IN GOLD YESTERDAY ($0.55). WE  HAD AN LARGE  NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 13,058. THERE OBVIOUSLY DOES NOT SEEM TO BE ANY PHYSICAL GOLD AT THE COMEX AND YET WE ARE APPROACHING THE HUGE DELIVERY MONTH OF DECEMBER. I GUESS IT EXPLAINS THE HUGE ISSUANCE OF EFP’S…THERE IS NO GOLD PRESENT AT THE GOLD COMEX FOR DELIVERY PURPOSES.  IF YOU TAKE INTO ACCOUNT THE 13,058 EFP CONTRACTS ISSUED, WE HAD A NET LOSS OPEN INTEREST OF 21,928 contracts:

13,058 CONTRACTS MOVE TO LONDON AND  34,986 CONTRACTS REMOVED FROM   THE COMEX.

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, a big change in gold inventory at the GLD/a withdrawal of 2.66 tonnes

Inventory rests tonight: 839.55 tonnes.

SLV

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

INVENTORY RESTS AT 317.130 MILLION OZ

end

.

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

1. Today, we had the open interest in silver FELL BY 4813 contracts from 191,085 DOWN  TO 186,272 (AND now A LITTLE FURTHER FROM THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) WITH THE LOSS IN PRICE OF SILVER PRICE (A LOSS OF 17 CENTS ). HOWEVER, OUR BANKERS  USED THEIR EMERGENCY PROCEDURE TO ISSUE ANOTHER HUGE  3061  PRIVATE EFP’S FOR DECEMBER (WE DO NOT GET A LOOK AT THESE CONTRACTS)  AND 1821 EMERGENCY EFP’S FOR MARCH FOR A TOTAL OF 4882 EFP CONTRACTS.  EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  WE ARE NOW WITHIN ONE DAY OF FIRST DAY NOTICE AND THIS IS THE SCENE WHERE IN THE PAST WE DID SEE MASSIVE COMEX OI CONTRACTION ALTHOUGH IT WAS MORE PRONOUNCED IN GOLD THAN WITH SILVER.  IT STILL CONTINUES UNABATED AND WE NOW KNOW THE REAL REASON FOR THE CONTRACTION:  THE TRANSFER OF OI TO LONDON. TODAY WE HAD CONSIDERABLE COMEX SILVER COMEX LIQUIDATION. BUT IF WE ADD THE OI LOSS AT THE COMEX (4813 CONTRACTS)   TO THE 4882 OI TRANSFERRED TO LONDON THRO
UGH EFP’S  WE OBTAIN A NET GAIN OF 69  OPEN INTEREST CONTRACTS,

RESULT: A LARGE SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 17 CENT FALL IN PRICE (WITH RESPECT TO YESTERDAY’S TRADING).  BUT WE ALSO  HAD ANOTHER 4882 EFP’S ISSUED.. TRANSFERRING OUR COMEX LONGS OVER TO 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 TUESDAY night/WEDNESDAY morning: Shanghai closed UP 4.21 points or .13% /Hang Sang CLOSED DOWN 57.02 pts or 0.19% / The Nikkei closed UP 40.96 POINTS OR 0.49%/Australia’s all ordinaires CLOSED UP 0.48%/Chinese yuan (ONSHORE) closed DOWN at 6.6027/Oil DOWN to 57.79 dollars per barrel for WTI and 63.80 for Brent. Stocks in Europe OPENED GREEN EXCEPT LONDON.    ONSHORE YUAN CLOSED DOWN AGAINST THE DOLLAR AT 6.6027. OFFSHORE YUAN CLOSED DOWN AGAINST  THE ONSHORE YUAN AT 6.6039 //ONSHORE YUAN WEAKER AGAINST THE DOLLAR/OFF SHORE WEAKER TO THE DOLLAR/. THE DOLLAR (INDEX) IS WEAKER AGAINST ALL MAJOR CURRENCIES. CHINA IS  HAPPY TODAY.(MARKETS STRONG)

Read More @ HarveyOrganBlog.com

Gold’s Global Supply Artery: Heading for Cardiac Arrest

by David Smith, Money Metals:

An oceanic-scale demand push from “all parts Far East” is building, as the desire to own gold and silver promises to place an increasingly solid foundation for years to come.

China, India, and Southeast Asia have historically accumulated precious metal as a savings vehicle, a hedge against political uncertainty (e.g. India’s surprise call-in last year of 80% of the country’s paper currency), and as an expression of affection. China’s newly-emerging affluent middle class alone is set to become larger than the population of the U.S. Frank Holmes collectively refers to these elements as “love and fear trades”.

China’s One Belt-One Road (OBOR) Initiative – the world’s largest-ever construction project – is designed to link 60% of the world’s population in a cooperative financial and economic matrix. Taken together, the continued migration of gold supply from West to East is baked into the cake.

For a deeper understanding of how and why China is leading the charge – and going about capturing an outsized portion of the global gold supply – see my essay from last summer, titled China’s Get the Gold Plan: Part II.

Even as the West ships much of its remaining gold eastward (largely via Swiss refineries who “repurpose” it into .9999 fine gold), countries like Germany and Turkey have stepped up to the plate, becoming noteworthy demand drivers in their own right.

Fund managers are finally realizing that gold deserves to be a permanent portfolio asset holding category. In The Morgan Report and in Riches in Resources, David Morgan has written extensively about this for both individual investors and institutional clients. Just one more “silent lever” by which a long-term, rock-solid foundation is being built under gold’s demand… and price.

Gold Supply Vein Seizures

Metaphorically-speaking, available data strongly suggests (with evidence mounting sharply since 2015), that over the next few years an ongoing narrowing of the global gold supply’s veins and arteries is leading to a series of demand seizures, climaxing in a systemic “heart attack”.

South Africa’s Gold Production Keeps Heading Further South

South Africa’s Witwatersrand Basin has been the source of almost 40% of all the gold ever recovered. But the government has become so obdurate that its current declining rank as the world’s 7th largest producer looks set to fall even more.

They have once again decided to “amend” the country’s mining code, demanding higher royalties and increased Black Empowerment participation, leading to a dire warning from the rating agency Moody’s. It states that “If the substantial expansionary investment required to reconfigure loss-making mining operations and make them profitable is not forthcoming, mines will either be restructured or closed.”

South Africa’s next move on the resource supply chessboard follows recent gambits against other large gold producers in Indonesia (Freeport) and Tanzania (AngloGold). Dave Forest, who keeps track of this in his letter, Pierce Points, remarks:

Mining “nationalism” has re-introduced one of the most crippling elements a mining producer – or explorer can face…unpredictability.

If there is no certainty that some sort of “rule of law” will prevail, then trying to anticipate/ predict how much gold and copper will/can be produced in a given operation flies out the window. Look how much is going on right now as gold hovers “merely” around $1,300 per ounce. What do you think that this witches’ brew of greed, corruption, power-grabbing and incompetency is going to produce when gold trades – as it will before long- at $2,000, $3,000, $5,000 or more?

Even without heavy-handed regulations, South African mining would be facing increasing costs as they go deeper to access gold and platinum. The way things are going, the last nails in the coffin appear set to be hammered into place. In the early 1970s, annual production topped out at an amazing 1,000 tons. Since 2000, gold production has literally fallen off a cliff, as it spirals downward toward a paltry 200 tons/year.

When a Gold Giant Speaks, You Should Listen…

Pierre Lassonde is a giant in the mining business. In 1982, he co-founded Franco-Nevada, the first publicly-traded gold royalty company, which now has a seven billion dollar market cap. He played a critical role in the growth of Newmont Mining, the world’s second largest gold producer. When he speaks, you and I should pay attention… In a recent interview, discussing the global gold supply going forward, Lassonde said:

Production is declining and this is going to put an enormous amount of pressure on prices down the road. If you look back to the 70s, 80s, and 90s, in each of those decades the industry found at least one 50+ million ounce gold deposit, at least ten 30+ million ounce deposits and countless 5 to 10 million ounce deposits. But if you look at the last 15 years, we found no 50 million ounce deposit, no 30 million ounce deposit, and only very few 15 million ounce deposits. So where are those great big deposits we found in the past? How are they going to be replaced? We don’t know. We do not have those ore bodies in sight…

Read More @ MoneyMetals.com

There’s No Silver Deficit, and Hasn’t Been One For 10 Years

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by David Morgan, Market Oracle:

The ongoing debate in the industry is whether or not there is a surplus or a deficit of silver supply. However, to silver expert David Morgan of The Morgan Report, there hasn’t been a deficit in at least a decade. “In the past, we were in a deficit, from 1990 to 2006. From 2006 until now, we’ve been in a surplus,” he told Kitco News at the Silver & Gold Summit in San Francisco. “We are not and have not been in a silver deficit for the last 10 years.” However, Morgan remains optimistic that silver prices can move higher. “We have a good base here, we’re at the launch point in next 3-6 months,” he said. “2018 is going to be a good year for silver.”

David Morgan

Mr. Morgan has followed the silver market for more than thirty years. He wrote the book, Get the Skinny on Silver Investing. Much of his Web site, Silver-Investor.com, is devoted to education about the precious metals, it is both a free site and does have a members only section. To receive full access to The Morgan Report click the hyperlink.

Read More @ MarketOracle.co.uk

Banks Again Defending Silver’s 200-Day Moving Average – Craig Hemke

by Craig Hemke, Sprott Money:

The Bullion Bank trading desks, which are routinely short thousands of metric tonnes of digital silver, are once again attempting to keep price below the 200-day moving average.

And why is this so important to The Banks? For the most basic reasons of all…greed and profit.

The only data available to measure the size of the Bank net short position in Comex silver comes from the corrupt and compromised CFTC. Though it seems useless to use CFTC-generated data, unfortunately we have no other choice. To that end, as of the most recent reporting, we find Bank positions as follows:

• As measured by the latest Commitment of Traders Report, the NET position of the “commercials” in Comex silver is 80,436 contracts short. As measured by the latest Bank Participation Report, the NET position of the 24 Banks involved in Comex silver is 69,473 contracts short. For the sake of simplicity, let’s just use the smaller BPR number and round it up t0 70,000 contracts NET SHORT for The Banks that trade on the Comex.

At 5,000 ounces of digital silver per Comex contract, 70,000 contracts is a net short position of 350,000,000 ounces or about 40% of total 2017 global mine supply. (It’s also about 150% of the total amount of silver allegedly held in the Comex vaults but we’ll save that topic for another day.)

For the purpose of this discussion, let’s just look at that 350,000,000 ounce NET short position. Consider the size of that position and then do the simple math of realizing that a $1 move in either direction means a $350MM trading gain or trading loss for these Bank desks.

Now, getting back to the title of this post and The Banks desire to keep price below the 200-day moving average. Why is this so important to them? Again, it’s greed and profit.

As you can see below, on just three previous occasions in 2017, price has been able to briefly move above the critical 200-day MA. In February, the subsequent rally in price was about 60¢. In April, the move was nearly identical but in August, price moved over $1 in two weeks once the 200-day was breached.

So why defend the 200-day again now? First and foremost, The Banks (because of their massive NET short position) do NOT want a rally into year end that might prompt even more interest and speculator buying into 2018. More important though is the simple greed factor as another $1 move up in price would be a $350MM paper loss against their net short position!

Read More @ SprottMoney.com

Quotes, Gloats, and Anecdotes from the Silver & Gold Summit

by Jeff Clark, GoldSilver.com:

I attended the Silver & Gold Summit in San Francisco November 20 and 21. It was great connecting with the many people I know in the industry, but I will tell you that a) attendance was low, and b) crypto promoters were out in force. It turned out to be more of a gold and crypto conference than anything else. Some of the more lively sessions were the gold vs. crypto debates, and one company offered “free bitcoin!” if you opened an account with them.

I talked to many exhibitors and speakers and attendees, and it seemed the first question on most investor’s minds was how high bitcoin will go, and when the bubble will pop—not if it will pop. Most seemed to believe bitcoin is in a bubble, with the only outstanding question how high the price goes.

But the low attendance and focus on an alternative asset reminded me a lot of when I attended a similar conference in the spring of 2007. Interest in gold was flat, the Dow was roaring, and uranium was the flavor of the day. Of course 18 months later the Dow was crashing, the uranium market was obliterated, and gold and silver were on the cusp of beginning a historic run-up. The “low interest” in precious metals ended up serving as a signal for one of the greatest buying opportunities. I have a feeling we’re at a similar juncture now.

Without further ado, here are some of the more interesting quotes, gloats, and anecdotes from the conference you might find interesting (for the most part I’m paraphrasing from my notes)…

Rick Rule, Chairman of Sprott Resources: “Gold’s biggest competitor is not bitcoin but the 10-year government bond, which is near the end of a 35-year bull market.”

Doug Casey, Casey Research: “Bitcoin is in a bubble, but it’s going to get bigger before it blows up.” Doug stated he has 7 figures invested in the stocks of crypto companies, but said he plans to sell out of most positions at some point. He also reconfirmed his view that gold will be the next great bubble, and gold stocks the next super-bubble.

Jim Rickards: “The shoeshine boy has said to buy cryptos: an elderly lady in a small coffee shop in my tiny New England town asked me if she should buy bitcoin.”

“I’ll never sell one bitcoin—ever!” Bitcoin newsletter writer. (I almost wanted to point out to him that the Nasdaq still hasn’t recovered from the tech wreck of the late 1990s.)

Cryptos panel, when asked for their short and long-term outlook for the market: most said crypto prices are headed higher in the short term (1-2 years) but not in the long-term (3 years or more), except the guy who said he’ll never sell a bitcoin.

Frank Holmes, Chairman of HIVE Blockchain Technology: “Most bubbles pop due to excessive leverage.” At this statement a few panelists pointed out that the CME is starting a bitcoin futures contract, which will allow both shorting and leverage.

Jim Rickards: “Cryptos will never replace gold. And government intervention is a certainty once they go after the terrorists and child pornographers that use them.”

“There will be no Merry Christmas if you don’t own gold, silver, and bitcoin. There will be a major disruptive event the first week of December, and that’s when a major shift into precious metals begins.” Bo Polny, Gold 2020 Forecast.

Rob McEwen, CEO McEwen Mining: ”A prolonged period of cheap money and the shift of investor focus to gold as a haven from geopolitical and financial risk could boost the price of gold to over $5,000 an ounce within five years—if that happens there is going to be a tsunami of money looking for a place to go.”

Bud Conrad, former chief economist of Casey Research: “The biggest buyer of US stocks has been the companies themselves—the stock market is a bubble.”

Bud’s not exaggerating. In fact, share buybacks have almost perfectly tracked the price of the S&P 500 for the past decade, until lately.

 

Read More @ GoldSilver.com

GOLD UP $6.45 BUT SILVER IS FLAT/BITCOIN UP $1375 TODAY

by Harvey Organ, Harvey Organ Blog:

GOLD: $1294.85  UP $6.45

Silver: $17.05 DOWN 0 cents  (FLAT)

Closing access prices:

Gold $1294.25

silver: $17.05

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: $1294.62 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME: $1289.93

PREMIUM FIRST FIX: $4.69

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SECOND SHANGHAI GOLD FIX: $1294.62

NY GOLD PRICE AT THE EXACT SAME TIME: $1290.70

Premium of Shanghai 2nd fix/NY:$3.92

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LONDON FIRST GOLD FIX: 5:30 am est $1294.70

NY PRICING AT THE EXACT SAME TIME: $1294.05

LONDON SECOND GOLD FIX 10 AM: $1294.70

NY PRICING AT THE EXACT SAME TIME. 1294.90

For comex gold:

NOVEMBER/

 NUMBER OF NOTICES FILED TODAY FOR NOVEMBER CONTRACT:  0 NOTICE(S) FOR nil OZ.

TOTAL NOTICES SO FAR: 1053 FOR 105,300 OZ (3.375 TONNES)

For silver:

NOVEMBER

1 NOTICE(S) FILED TODAY FOR

5,000 OZ/

Total number of notices filed so far this month: 886 for 4,430,000 oz

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Bitcoin: BID $9651/OFFER $9681 up $1433 (morning) 

BITCOIN : BID $9635 OFFER: $9664 // UP $1419 (CLOSING)

end

 

Today is option expiry on the Comex.  Thursday is the last day for OTC options and as such we will see the same drill:  the bankers doing their thing keeping gold/silver suppressed and to make options expire worthless.

 

 

Let us have a look at the data for today

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In silver, the total open interest FELL BY 2754 contracts from 197,872 DOWN TO 195,118 WITH RESPECT TO FRIDAY’S TRADING  WHICH SAW SILVER FALL BY 8 CENTS AND STILL WELL BELOW THE HUGE $17.25 SILVER RESISTANCE.   WE HAD MINOR LONG COMEX LIQUIDATION.   HOWEVER WE WERE ALSO NOTIFIED THAT WE HAD  ANOTHER LARGE NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE : 1670 DECEMBER EFP’S WERE ISSUED ALONG WITH 0 EFP’S FOR MARCH FOR A TOTAL ISSUANCE OF 1670 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. FRIDAY WITNESSED  1297 EFP’S FOR SILVER ISSUED.

RESULT: A SMALL SIZED FALL IN OI COMEX WITH THE 8 CENT PRICE FALL.  WE HAD SOME COMEX LONGS  EXITED OUT OF THE SILVER COMEX BUT MOST OF THEM TRANSFERRED THEIR OI TO LONDON THROUGH THE EFP ROUTE:  FROM THE CME DATA 1670 EFP’S  WERE ISSUED FOR MONDAY FOR A DELIVERABLE CONTRACT OVER IN LONDON WITH A FIAT BONUS. IN ESSENCE THE  DEMAND FOR SILVER PHYSICAL INTENSIFIES GREATLY. WE REALLY ONLY LOST  1084 OI CONTRACTS i.e.  1670 open interest contracts headed for London (EFP’s) TOGETHER WITH A DECREASE OF 2754 OI COMEX CONTRACTS.

In ounces, the OI is still represented by just UNDER 1 BILLION oz i.e. 0.976 BILLION TO BE EXACT or 139% 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 FELL BY 4929 CONTRACTS WITH THE FAIR SIZED FALL IN PRICE OF GOLD ($4.00) WITH RESPECT TO FRIDAY’S TRADING.   HOWEVER  THE TOTAL NUMBER OF GOLD EFP’S ISSUED FRIDAY FOR MONDAY  TOTALED  ANOTHER 9,547 CONTRACTS OF WHICH THE MONTH OF DECEMBER SAW 9377 CONTRACTS AND FEB SAW THE ISSUANCE OF 170 CONTRACTS.    The new OI for the gold complex rests at 536,299. DEMAND FOR GOLD INTENSIFIES DESPITE THE CONSTANT RAIDS.  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 METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NOT 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 6 TO 10 WEEKS TO OBTAIN PHYSICAL FROM THE POINT WHEN FORWARDS BECOME DUE. IN ESSENCE WE HAD A NET GAIN OF 5,348 OI CONTRACTS: 4,929 OI CONTRACTS LOST AT THE  COMEX OI  AND 9,547 OI CONTRACTS NAVIGATE OVER TO LONDON. CONSIDERING MOST OF OUR TRADERS WERE AWAY ON FRIDAY, YOU HAVE TO MARVEL AT THE HUGE EFP’S ISSUED ON FRIDAY IN GOLD (AND FOR THAT MATTER SILVER AS WELL)

FRIDAY  (ISSUED ON WEDNESDAY FOR FRIDAY), WE HAD 14,179 EFP’S ISSUED.

Result: A SMALL SIZED DECREASE IN OI  WITH THE FAIR SIZED FALL IN PRICE IN GOLD ON FRIDAY ($4.00). WE  HAD AN LARGE  NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 9,547. THERE OBVIOUSLY DOES NOT SEEM TO BE ANY PHYSICAL GOLD AT THE COMEX AND YET WE ARE APPROACHING THE HUGE DELIVERY MONTH OF DECEMBER. I GUESS IT EXPLAINS THE HUGE ISSUANCE OF EFP’S…THERE IS NO GOLD PRESENT AT THE GOLD COMEX FOR DELIVERY PURPOSES.  IF YOU TAKE INTO ACCOUNT THE 9547 EFP CONTRACTS ISSUED, WE HAD A NET GAIN OPEN INTEREST OF 5,348 contracts:  9547 CONTRACTS MOVE TO LONDON AND 4,929 CONTRACTS LEAVE  THE COMEX.

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:

this makes sense!! with gold up $6.40 today we had a big withdrawal of 1.18 tonnes from gold inventory at the GLD/

Inventory rests tonight: 842.21 tonnes.

SLV

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

INVENTORY RESTS AT 317.130 MILLION OZ

end

.

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

1. Today, we had the open interest in silver FELL BY 2754 contracts from 197,960 DOWN  TO 195,118 (AND now A LITTLE FURTHER FROM THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) DESPITE THE SLIGHT FALL IN SILVER PRICE (A LOSS OF 8 CENTS ). HOWEVER, OUR BANKERS  USED THEIR EMERGENCY PROCEDURE TO ISSUE ANOTHER HUGE  1670  PRIVATE EFP’S FOR DECEMBER (WE DO NOT GET A LOOK AT THESE CONTRACTS)  AND 0 EFP’S FOR MARCH FOR A TOTAL OF 1670 EFP CONTRACTS.  EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  WE ARE NOW GETTING CLOSE TO FIRST DAY NOTICE AND THIS IS THE SCENE WHERE IN THE PAST WE DID SEE MASSIVE COMEX OI CONTRACTION ALTHOUGH IT WAS MORE PRONOUNCED IN GOLD THAN WITH SILVER. IT STILL CONTINUES UNABATED AND WE NOW KNOW THE REAL REASON FOR THE CONTRACTION:  THE TRANSFER OF OI TO LONDON. TODAY WE HAD MINIMAL COMEX SILVER COMEX LIQUIDATION. IF WE ADD THE OI LOSS AT THE COMEX (2754 CONTRACTS)   TO THE 1670 OI TRANSFERRED TO LONDON THROUGH EFP’S  WE OBTAIN A NET LOSS OF ONLY  1054  OPEN INTEREST CONTRACTS,

RESULT: A SMALL SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 8 CENT FALL IN PRICE (WITH RESPECT TO FRIDAY’S TRADING). NOT ONLY THAT BUT  WE ALSO  HAD ANOTHER 1670 EFP’S ISSUED.. TRANSFERRING OUR COMEX LONGS OVER TO LONDON .&nbs
p; ON WEDNESDAY (FOR FRIDAY) WE EXPERIENCED 1297 EFP’S ISSUED FOR TRANSFER TO LONDON.

(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 SUNDAY night/MONDAY morning: Shanghai closed DOWN 31.59 points or .94% /Hang Sang CLOSED DOWN 180.13 pts or 0.60% / The Nikkei closed DOWN 54.86 POINTS OR 0.24%/Australia’s all ordinaires CLOSED UP 0.12%/Chinese yuan (ONSHORE) closed UP at 6.603-/Oil DOWN to 58.46 dollars per barrel for WTI and 63.48 for Brent. Stocks in Europe OPENED GREEN.    ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.6030. OFFSHORE YUAN CLOSED UP AGAINST  THE ONSHORE YUAN AT 6.600 //ONSHORE YUAN STRONGER AGAINST THE DOLLAR/OFF SHORE STRONGER TO THE DOLLAR/. THE DOLLAR (INDEX) IS WEAKER AGAINST ALL MAJOR CURRENCIES. CHINA IS NOT  HAPPY TODAY.(MARKETS VERY WEAK)

Read More @ HarveyOrganBlog.com

The Hyperinflation That Was Not – Keith Weiner

by Keith Weiner, Sprott Money:

Last week, we made a very controversial statement. We are happy to write the truth, and let the chips fall where they may (e.g. our thoughtful disagreement with Ted Butler about price manipulation). We can accept the flak that we get for this, so long as our position is understood. Some criticized our approach as mere technical analysis , and therefore insufficient to the task of explaining the dynamics of the gold and silver markets. But whether we quibble with this characterization of our work or not, we believe that the points we made and the unique data we published stand. No one, including Mr. Butler, responded substantively to our data or logic. People can read and choose sides, and we’re OK with that.

But last week , we said something that we feel was not well understood. And it is one of the most important ideas in monetary economics, and the key to understanding banking.

The Federal Reserve, of course, is a key participant in this monetary inflation scheme. Does the Fed have a printing press? Does the Fed print?

Like any bank, the Fed borrows to fund its purchases of interest-paying assets. It earns a spread between what it pays (currently about 1.25%) and what its asset portfolio pays (over 2%)… Unlike any commercial bank, there is a law that obligates us to treat the Fed’s liabilities as if they were money .

Borrowing is pretty close to the opposite of printing. So how is it possible that there is so much contention on this issue? Perhaps it would be more accurate to say that, in Austrian circles, there is little contention: Monetary Metals are just heretics!

If the Fed printed, then hyperinflation would have come, and this is what many Austrians predicted. For example, one famous personality predicted at FreedomFest in July 2009, that we would have hyperinflation by the end of that year.

Printing would create a flood of worthless paper. Apart from the sheer quantity of it (trillions), would be the absurdity, the meaninglessness of it. Though many call the dollar “worthless paper”, it is not worthless. It is still quite worthful—a dollar can buy over 24 milligrams of gold, not to mention food, fuel, housing, artwork, and laptops on which we can pontificate about matters monetary.

But suppose an organized crime ring printed up $3,500,000,000,000, and went on a shopping spree. These forgers begin buy everything from cases of Cristal to paintings by Cézanne, from Maybach cars to Malibu homes. What would happen?

They would push up the prices of everything. Relentless buying by price-insensitive purchasers lifts all offers and keeps moving them up. Of course, if you have a printing press then it does not matter to you if Cristal is $200 or $20,000. You can easily print more. Price only matters to those who have to earn before they spend (or liquidate the family estate ).

So the net result of printing would be relentlessly but probably steadily rising prices. At first. Until people begin to see the game and look forward to its inevitable denouement. Then something happens. Economist Ludwig von Mises described the “Crack Up Boom”:

But then finally the masses wake up. They become suddenly aware of the fact that inflation is a deliberate policy and will go on endlessly. A breakdown occurs. The crack-up boom appears. Everybody is anxious to swap his money against “real” goods, no matter whether he needs them or not, no matter how much money he has to pay for them. Within a very short time, within a few weeks or even days, the things which were used as money are no longer used as media of exchange. They become scrap paper. Nobody wants to give away anything against them.

We must reckon with the fact that this did not happen. Here is a graph showing the prices of crude oil and wheat from the start of the first “quantitative easing” to the end of “zero interest rate policy”.

Both commodities go up, though wheat went down first. They end lower than they start. Notably, wheat (and other commodities) began to fall by late 2012. Oil was last to join the party (due, we believe, to geopolitical risks rather than monetary effects) in mid-2014.

We don’t want to quibble here. The question is not: “did oil go up proportionally to the increase in the quantity of dollars?” Oil went up about 133% from start to peak in April 2011, while M1 measure of money supply went up 20% during the same period. Then as M1 increased by an additional 63%, oil went sideways before declining 69% from its peak.

The question is: “what did the Fed do?” Obviously, it did not print and buy wheat or oil (nor give the dollars to someone else who did).

The Fed exchanged dollars for bonds (Treasury and mortgage). This leads to two questions. One, what is the nature of a dollar and of a bond? Two, what does it mean for the Fed to make such an exchange?

There is much confusion today because we call the dollar “money”. In the classical gold standard, the paper dollar was redeemable. That is, anyone could bring dollar bills to a bank and exchange them for gold coins. The bill, or note, is a credit instrument. It is paper evidencing an obligation to pay money on demand. The gold is the money.

Now that the dollar is irredeemable, there is a temptation to use shorthand and say that the dollar itself ismoney, to define money as just a medium of exchange. But if the dollar is money, what is the difference between the dollar and the bond? Both are forms of credit.

The difference is duration.

Read More @ SprottMoney.net