Tuesday, February 25, 2020

Russia getting ready to join the Shanghai Gold Exchange in opening their own physical gold market which includes futures contracts

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from Kenneth Schortgen, The Daily Economist:

In a new report that came out on Thursday, Dec. 21, the Moscow Exchange announced they will be launching their own gold futures market which will be deliverable in physical gold to investors.

Following in the footsteps of the Shanghai Gold Exchange which opened their own physical market in 2016, and gold futures market earlier this year, the two markets are likely to become interconnected, especially in light of China’s ready to be implemented yuan-denominated oil contract that can be converted to gold.

The Moscow Exchange will launch deliverable futures for gold in 2018 in a move to further prop up bullion market liquidity, bourse chief executive Alexander Afanasiev said on Thursday. 

These deliverable futures will be denominated in roubles and the weight will be measured in grams, said Igor Marich, who oversees the bourse’s money and derivatives market. 

The Moscow Exchange, previously known as Micex-RTS, is developing its infrastructure amid a Kremlin-backed bid to make Moscow one of the world’s leading financial hubs. 

Read More @ TheDailyEconomist.com

SD Market Alert: Gold & Silver Flight To Safety Is On As Bitcoin Crashes Hard

from SilverDoctors:

Investors are fleeing the speculative mania of Bitcoin and seeking refuge in the true flights to safety – gold & silver. Here’s an update…

Bad news for the cryptocurrency fans:

After hitting nearly $20,000 on Sunday night, just five days later the price for Bitcoin has been down as much as $9,000 from the highs.

A 10% move down is considered a correction.

A 20% move down is considered a bear market.

There is now way to describe a 45% move down as anything other than a crash.

I have long argued that Bitcoin is not digital gold, gold 2.0, or any of this safe haven, flight to safety, hedge against uncertainty stuff.

That would be gold and silver.

Period.

And sure enough:

Investors understand the difference between highly speculative risk gambles and quality, dependable and reliable gold & silver.

Read More @ SilverDoctors.com

What Happens If Crypto Profits Come Back Into Precious Metals?

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by Chris Franklin, Miles Franklin:

In a recent interview on Sprott Money News, legendary investor Eric Sprott mentioned a potential factor that could be a spark in the gold and silver markets. Specifically, he wondered what might happen if crypto profits continue to grow and some of them are recycled into the gold and silver space.

While many in the gold and silver community are skeptical about the crypto sector, there is also a lot of overlap. Many of the crypto supporters have a Libertarian background, and Bitcoin was essentially designed as a response to the flaws of central banking.

So while many have been focused on the debate over whether precious metals or cryptos will represent the future of money, perhaps more significant from an investing perspective is how the markets could affect each other.

Sure, there are investors in each that are committed to either precious metals or cryptos, but not both. Yet there are also many who see both alternative asset classes as great investments and appreciate a means of diversifying their bet against the dollar.

Consider the following that Sprott mentioned in his interview:

“There are analogies between gold and Bitcoin in the sense that the Bitcoin owner doesn’t like fiat currency, the Bitcoin owner doesn’t like commercial banks, and I think that those are both things that most of us precious metals owners also own.

When some of these people cash in their Bitcoin, where are they going to put that money? Some people are going to be selling here and they’re going to look for a place to put it. And it won’t take much to move things around in the precious metals market.

While it hasn’t been easy for gold and silver investors to accurately assess monetary conditions and then sit around and watch virtually every other asset class explode, the crypto market is still a positive development. Not only is money leaving the dollar and entering a community that is well aware of the problems with fiat currencies, but public attention of what metals owners have so long been aware of is continuing to grow.

Even the crypto speculators who might not be able to tell the difference between a crypto, a gold coin, and a football are at least brought into the conversation. Regardless of their initial reasons for investing, with the market going up and the mania continuing to build, even pure speculators are being introduced to the reality that the dollar is on borrowed time.

Read More @ MilesFranklin.com

GOLD ADVANCES $8.55 TO $1275.85/SILVER RISES 18 CENTS TO $16.37

from Harvey Organ, Harvey Organ Blog:

GOLD COMEX EFP’S : 6514/SILVER EFP’S: 921/BITCOIN COLLAPSES/COINBASE STOPS BUYING AND SELLING OF BITCOIN BECAUSE OF EXCESSIVE VOLUME/TRUMP SIGNS THE NEW TAX BILL INTO LAW/MORE SWAMP NEWS

GOLD: $1275.85 up $8.55

Silver: $16.37 up 18 cents

Closing access prices:

Gold $1274.80

silver: $16.42

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: $1276.55 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME: $1266.20

PREMIUM FIRST FIX: $10.35

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SECOND SHANGHAI GOLD FIX: $1277.56

NY GOLD PRICE AT THE EXACT SAME TIME: $1265750

Premium of Shanghai 2nd fix/NY:$10.06

SHANGHAI REJECTS NY /LONDON PRICING OF GOLD

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LONDON FIRST GOLD FIX: 5:30 am est $1268.85

NY PRICING AT THE EXACT SAME TIME: $1268.45

LONDON SECOND GOLD FIX 10 AM: $1268.85

NY PRICING AT THE EXACT SAME TIME. 1268.50??

For comex gold:

DECEMBER/

 NUMBER OF NOTICES FILED TODAY FOR DECEMBER CONTRACT: 149 NOTICE(S) FOR14,900 OZ.

TOTAL NOTICES SO FAR: 8979 FOR 897,900 OZ (27.928 TONNES),

For silver:

DECEMBER

31 NOTICE(S) FILED TODAY FOR

155,000 OZ/

Total number of notices filed so far this month: 6395 for 31,975,000 oz

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Bitcoin: BID $13,847/OFFER $14,000 DOWN $1740 (morning) 

BITCOIN : BID $14,320 :  OFFER 14,468  down $1274 (CLOSING)

end

Let us have a look at the data for today

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In silver, the total open interest SURPRISINGLY FELL BY A CONSIDERABLE  2117 contracts from 207,275 FALLING TO 201,108 DESPITE YESTERDAY’S TINY 2 CENT FALL IN SILVER PRICING.  WE HAD GOOD  COMEX LIQUIDATION.  WE WERE AGAIN NOTIFIED THAT WE HAD ANOTHER SMALL SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE: A RESPECTABLE 921 EFP’S FOR MARCH (AND ZERO FOR DEC AND OTHER MONTHS) AND THUS TOTAL ISSUANCE OF 921 CONTRACTS. HOWEVER THE MOVEMENT ACROSS TO LONDON IS NOT AS SEVERE AS IN GOLD AS THERE SEEMS TO BE A MAJOR PLAYER TAKING ON THE BANKS AT THE COMEX.  STILL, WITH THE TRANSFER OF 921 CONTRACTS, WHAT THE CME IS STATING IS THAT THERE IS NO SILVER (OR GOLD) TO BE DELIVERED UPON AT THE COMEX AS THEY MUST EXPORT THEIR OBLIGATION TO LONDON. YESTERDAY WITNESSED 1196 EFP’S FOR SILVER ISSUED. ALSO KEEP IN MIND THAT THERE CAN BE A DELAY OF 24 HRS IN THE ISSUING OF EFP’S. I BELIEVE THAT WE MUST HAVE HAD SOME BANKER SHORT COVERING

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

42,751 CONTRACTS (FOR 16 TRADING DAYS TOTAL 42,751 CONTRACTS OR 213.75 MILLION OZ: AVERAGE PER DAY: 2,672 CONTRACTS OR 13.260 MILLION OZ/DAY)

RESULT: A GOOD SIZED FALL IN OI COMEX DESPITE THE TINY  2 CENT FALL IN SILVER PRICE WHICH INDICATES SOME BANKER SHORTCOVERING.   WE HAD CONSIDERABLE COMEX SILVER LIQUIDATION . WE ALSO HAD A SMALL SIZED SIZED EFP ISSUANCE OF 921 CONTRACTS  WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON AS FORWARDS:  FROM THE CME DATA 921 EFP’S  WERE ISSUED TODAY (FOR MARCH EFP’S)  FOR A DELIVERABLE CONTRACT OVER IN LONDON WITH A FIAT BONUS.  WE REALLY LOST 1117 OI CONTRACTS i.e. 921 open interest contracts headed for London (EFP’s) TOGETHER WITH A DECREASE OF 2117 OI COMEX CONTRACTS. AND ALL OF THIS  HAPPENED WITH THE FALL IN PRICE OF SILVER BY 2 CENTS AND A  CLOSING PRICE OF $16.19 WITH RESPECT TO YESTERDAY’S TRADING. 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 OVER 1 BILLION oz i.e. 1.005 BILLION TO BE EXACT or 143% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT DECEMBER MONTH/ THEY FILED: 31 NOTICE(S) FOR 155,000 OZ OF SILVER

In gold, the open interest ROSE BY A CONSIDERABLE 3160 CONTRACTS UP TO 455,498 WITH THE TINY SIZED RISE  IN PRICE OF GOLD YESTERDAY ($1.10).  HOWEVER,  THE TOTAL NUMBER OF GOLD EFP’S ISSUED YESTERDAY FOR TODAY  TOTALED A CONSIDERABLE  6514 CONTRACTS OF WHICH THE MONTH OF DECEMBER SAW 0 CONTRACTS AND FEB SAW THE ISSUANCE OF 6514 CONTRACTS. The new OI for the gold complex rests at 455,498. DEMAND FOR GOLD INTENSIFIES GREATLY AS WE CONTINUE TO WITNESS THE HUMONGOUS 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 WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.  IN ESSENCE WE HAVE A GOOD GAIN OF 9674 OI CONTRACTS: 3160 OI CONTRACTS INCREASED AT THE  COMEX  AND A GOOD SIZED  6514 OI CONTRACTS WHICH NAVIGATED OVER TO LONDON.

YESTERDAY, WE HAD 5230 EFP’S ISSUED.

ACCUMULATION OF EFP’S/ GOLD(EXCHANGE FOR PHYSICAL) FOR THE MONTH OF DECEMBER STARTING WITH FIRST DAY NOTICE:  191,105 CONTRACTS OR 19.105 MILLION OZ OR 594.09 TONNES(16 TRADING DAYS AND THUS AVERAGING: 11,944 EFP CONTRACTS PER TRADING DAY OR 1.1944 MILLION OZ/DAY)

Result: A GOOD SIZED INCREASE IN OI DESPITE THE TINY SIZED RISE IN PRICE IN GOLD TRADING YESTERDAY ($1.10). WE  HAD A GOOD SIZED  NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 6514. 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 6514 EFP CONTRACTS ISSUED, WE HAD A NET GAIN IN OPEN INTEREST OF 9674  contracts:

6513 CONTRACTS MOVE TO LONDON AND A 3160 CONTRACTS INCREASED AT THE  COMEX. (in tonnes, the gain  equates to 31.25 TONNES)

we had:  149  notice(s) filed upon for 14,900 oz of gold.

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

GLD:

Today, A HUGE CHANGE: A DEPOSIT OF 1.48 TONNES OF  GOLD INTO THE GLD/

Inventory rests tonight: 837.50 tonnes.

SLV/

THIS MAKES A LOT OF SENSE: IF SILVER UP 18 CENTS TODAY:

A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF:755,000 OZ ???

INVENTORY RESTS AT 325.582 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 A CONSIDERABLE SIZED 2117 contracts from 207,945 DOWN  TO 201,108 (AND now
A LITTLE FURTHER FROM THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) DESPITE THE TINY FALL IN PRICE OF SILVER OF 2 CENTS YESTERDAY . HOWEVER,OUR BANKERS  USED THEIR EMERGENCY PROCEDURE TO ISSUE ANOTHER  921  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 CONSIDERABLE COMEX SILVER COMEX LIQUIDATION. BUT, IF WE TAKE THE  OI LOSS AT THE COMEX OF 2117 CONTRACTS TO THE 921 OITRANSFERRED TO LONDON THROUGH EFP’S  WE OBTAIN A LOSS OF  1196  OPEN INTEREST CONTRACTS, AS WE MUST HAVE HAD SOME BANKER SHORT COVERING.  WE STILL HAVE A  HUGE AMOUNT OF SILVER OUNCES THAT ARE STANDING FOR METAL IN DECEMBER (SEE BELOW). THE NET LOSS TODAY IN OZ: 5.598 MILLION OZ!!! 

RESULT: A GOOD SIZED DECREASE IN SILVER OI AT THE COMEX DESPITE THE TINY  2 CENT FALL IN PRICE (WITH RESPECT TO YESTERDAY’S TRADING).  BUT WE ALSO  HAD ANOTHER 921 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

i)Late THURSDAY night/FRIDAY morning: Shanghai closed DOWN 2.99 points or 0.09% /Hang Sang CLOSED UP 210.95 pts or 0.72% / The Nikkei closed UP 36.66 POINTS OR 0.16%/Australia’s all ordinaires CLOSED DOWN 0.19%/Chinese yuan (ONSHORE) closed UP at 6.5759/Oil UP to 58.05 dollars per barrel for WTI and 64.50 for Brent. Stocks in Europe OPENED ALL RED . ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.5759. OFFSHORE YUAN CLOSED UP AGAINST  THE ONSHORE YUAN AT 6.5679 //ONSHORE YUAN  STRONGER AGAINST THE DOLLAR/OFF SHORE STRONGER TO THE DOLLAR/. THE DOLLAR (INDEX) IS  SLIGHTLY STRONGER AGAINST ALL MAJOR CURRENCIES. CHINA IS   HAPPY TODAY.(GOOD MARKETS

Read More @ HarveyOrganBlog.com

If Stock Market Investors Panic, What Could Happen To The Price Of Silver?

by Chris Marcus, Miles Franklin:

While it’s becoming more well known by the day that gold and silver are being manipulated lower due to paper short-selling, many still wonder what will be the spark to change current market dynamics. Today let’s consider the stock market, and how even a small reallocation into silver could send the price soaring.

Recently thestreet.com reported that, “Bloomberg’s World Exchange Market Capitalization index pegs global equity values at a record $76.3 trillion, a tally that tops the $75.3 trillion figure the International Monetary Fund uses to value the global economy.”

Of course that’s just a drop in the bucket compared to the bond and currency markets. And when derivatives are factored in, some analysts estimate the amount is actually in the quadrilions! That’s a lot of money, especially when compared to the size of the silver market.

According to silver expert Ted Butler, “today less than 1.5 billion oz remain in the form of 1000 oz bars (and less than 1 billion oz of that can be documented).”

At current silver prices of approximately $16 per ounce, 1.5 billion ounces comes out to $24 billion. Not a big market that could seemingly handle large investment inflows without moving higher.

Certainly with the way the stock market has soared while silver has languished in recent years it can be easy to lose track of how fast the silver price can move. But go back to the end of 2010 when Ben Bernanke launched his second quantitative easing program and silver rose to $49 in a relatively short period of time.

So what happens if even a small percentage of stock market investors panic based on the continued monetary, fiscal, and political dysfunction that seems to grow by the day? During the last crisis in 2008 the metals initially traded lower. But as time went by and more money was created, a new generation of investors began learning about monetary policy and buying silver.

The never ending paper selling that seems to accompany so many of the mysterious spikes down in price has quelled silver interest in recent years. But while the popping of the mainstream asset bubbles has taken longer to manifest than many precious metals owners might prefer, nothing has changed regarding the underlying fundamentals.

The Federal Reserve is still backed into that corner where it either continues to print in order to support equity, bond, and real estate prices, or raises rates and watches those markets crash. Fed officials including Janet YellenSan Francisco Fed President John Williams, and Chicago Fed President Charles Evans are already talking about how inflation is too low and rates might need to be lowered again, and ultimately more money printing is likely on the way.

Of course in past years we’ve all been reminded that just because the fundamentals dictate a certain outcome doesn’t mean the rest of the crowd is going to jump in at the same time. However after watching how the price action in the cryptos has created a public mania that brings more attention into the sector, it’s interesting to imagine a similar effect in the silver market.

Read More @ MilesFranklin.com

STRONG GOLD IN 2018 vs NEW WORLD CURRENCY

by Egon von Greyerz, Gold Switzerland:

In 1988, the UK magazine, The Economist forecast that 2018 would be the year of a new currency which they named the Phoenix. Quite a mind boggling prediction 30 years ago really, especially since 2018 in fact looks like a year when a major currency upheaval could take place.

For conspiracy theorists, the Economist’s owners consist of a number of elite families and bankers including the Rothschilds. Was this a plan which has been in the making for a very long time? Or is it sheer fluke that a major currency event might take place in the year that the Economist predicted.

So what could be the events that will lead to a major disruption in currency markets and in the world economy in 2018:

DOLLAR COLLAPSE

The demise of the dollar as the reserve currency of the world is a certainty. It is only a question of when it will take place. The dollar does not qualify as the rock of the world currency system. Since the gold backing of the dollar ceased in 1971, it has lost 98% in real terms when measured against gold. But also against most other currencies, the dollar has lost greatly. In Swiss francs for example, the dollar is down 77% since 1971. The dollar is backed by massive debts and deficits. The US has not had a real Budget surplus since 1960 and has been running Trade deficits since 1975. The dollar is backed by nothing but debts and a weakening military. It is living on borrowed time.

FALL OF PETRODOLLAR AND RISE OF PETROYUAN

In 1974 the US agreed to support Saudi Arabia financially and militarily on the condition that the Saudis priced oil in dollars. Since most of the world bought oil from Saudi Arabia at that time, it led to a major demand for dollars which is still the case. That was the beginning of the Petrodollar which has enabled the US to live above its means for 44 years. But from 2018 the Petrodollar will gradually be replaced by the Petroyuan and also the Petroruble. China, the world’s largest oil importer, will together with Russia and Iran switch from trading oil in dollars. This will be backed by a futures contract in Petroyuan with a potential convertibility to gold. Except for further military intervention in the Middle East, the US now has little chance of stopping this major strike against the dollar. The US is currently virtually self-sufficient in oil production and is no longer a major trading partner of Saudi Arabia. Therefore, the US neither can nor will stop Saudi Arabia moving its sphere of activity from West to East.

THE CRYPTO BUBBLE AND THE CRYPTODOLLAR

The major event this year which has convinced many that we have a new currency system which is controlled by no country and no central bank is of course the Cryptocurrencies led by Bitcoin. In 2017, we have seen a mania in cryptos of massive proportions. At the beginning of the year, the market cap of all cryptos was $17 billion. As of today, there are 1,360 cryptos with a total value of $588 billion. That is a 34 fold or 3,300% increase in the value of cryptocurrencies in just one year. There are 589 cryptos valued over $1 million with Bitcoin being the biggest at $312 billion.

BITCOIN A BIGGER BUBBLE THAN TULIP BULBS

How can anyone believe that the world can function with a payment system that has 1,360 currencies which is continuing to grow exponentially with a new ICO (Initial Coin Offering) virtually every day.

Read More @ GoldSwitzerland.com

GOLD RISES BY $1.10 TO $1267.25/SILVER IS DOWN 2 CENTS TO $16.19

by Harvey Organ, Harvey Organ Blog:

COMEX GOLD EFP’S ISSUED: 5230 CONTRACTS/SILVER COMEX EFP’S 1465 CONTRACTS/BITCOIN FALLS OVER 1045 DOLLARS TO $15,300.00/GOOD NUMBER OF SWAMP STORIES TONIGHT

GOLD: $1267.25 up $1.10

Silver: $16.19 DOWN 2 cents

Closing access prices:

Gold $1267.00

silver: $16.14

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: $1278.65 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME: $1267.95

PREMIUM FIRST FIX: $10.50

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SECOND SHANGHAI GOLD FIX: $1275.38

NY GOLD PRICE AT THE EXACT SAME TIME: $1265.55

Premium of Shanghai 2nd fix/NY:$9.83

SHANGHAI REJECTS NY /LONDON PRICING OF GOLD

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LONDON FIRST GOLD FIX: 5:30 am est $1265.85

NY PRICING AT THE EXACT SAME TIME: $1265.70

LONDON SECOND GOLD FIX 10 AM: $1264.55

NY PRICING AT THE EXACT SAME TIME. 1263.40??

For comex gold:

DECEMBER/

 NUMBER OF NOTICES FILED TODAY FOR DECEMBER CONTRACT:  21 NOTICE(S) FOR 2100 OZ.

TOTAL NOTICES SO FAR: 8830 FOR 883,000 OZ (27.465 TONNES),

For silver:

DECEMBER

129 NOTICE(S) FILED TODAY FOR

645,000 OZ/

Total number of notices filed so far this month: 6364 for 31,820,000 oz

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Bitcoin: BID $16,605/OFFER $16,724 UP $261 (morning) 

BITCOIN : BID $15,300 :  OFFER 15,425  down $1047 (CLOSING)

end

Let us have a look at the data for today

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In silver, the total open interest SURPRISINGLY FELL BY  478 contracts from 207,275 FALLING TO 203,225 DESPITE YESTERDAY’S 8 CENT RISE IN SILVER PRICING.  WE HAD TINY  COMEX LIQUIDATION. HOWEVER  WE WERE AGAIN NOTIFIED THAT WE HAD ANOTHER GOOD SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE: A RESPECTABLE  1465 EFP’S FOR MARCH (AND ZERO FOR DEC AND OTHER MONTHS) AND THUS TOTAL ISSUANCE OF 1465 CONTRACTS. HOWEVER THE MOVEMENT ACROSS TO LONDON IS NOT AS SEVERE AS IN GOLD AS THERE SEEMS TO BE A MAJOR PLAYER TAKING ON THE BANKS AT THE COMEX.  STILL, WITH THE TRANSFER OF 1465 CONTRACTS, WHAT THE CME IS STATING IS THAT THERE IS NO SILVER (OR GOLD) TO BE DELIVERED UPON AT THE COMEX AS THEY MUST EXPORT THEIR OBLIGATION TO LONDON. YESTERDAY WITNESSED 1089 EFP’S FOR SILVER ISSUED. ALSO KEEP IN MIND THAT THERE CAN BE A DELAY OF 24 HRS IN THE ISSUING OF EFP’S.

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

41,830 CONTRACTS (FOR 15 TRADING DAYS TOTAL 41,830 CONTRACTS OR 209.15 MILLION OZ: AVERAGE PER DAY: 2,788 CONTRACTS OR 13.943 MILLION OZ/DAY)

RESULT: A GOOD SIZED FALL IN OI COMEX DESPITE THE  8 CENT RISE IN SILVER PRICE.   WE HAD TINY COMEX SILVER LIQUIDATION BUT WE ALSO HAD A FAIR SIZED SIZED EFP ISSUANCE OF 1465 CONTRACTS  WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON AS FORWARDS:  FROM THE CME DATA 1465 EFP’S  WERE ISSUED TODAY (FOR MARCH EFP’S)  FOR A DELIVERABLE CONTRACT OVER IN LONDON WITH A FIAT BONUS.  WE REALLY GAINED 987 OI CONTRACTS i.e. 1465 open interest contracts headed for London (EFP’s) TOGETHER WITH A DECREASE OF 478 OI COMEX CONTRACTS. AND ALL OF THIS  HAPPENED WITH THE RISE IN PRICE OF SILVER BY 8 CENTS AND A  CLOSING PRICE OF $16.21 WITH RESPECT TO YESTERDAY’S TRADING. 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 OVER 1 BILLION oz i.e. 1.016 BILLION TO BE EXACT or 145% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT DECEMBER MONTH/ THEY FILED: 8 NOTICE(S) FOR 40,000 OZ OF SILVER

In gold, the open interest FELL BY A 1257 CONTRACTS DOWN TO 452,338 DESPITE THE FAIR SIZED RISE  IN PRICE OF GOLD YESTERDAY ($5.00).  HOWEVER,  THE TOTAL NUMBER OF GOLD EFP’S ISSUED YESTERDAY FOR TODAY  TOTALED A CONSIDERABLE  5230 CONTRACTS OF WHICH THE MONTH OF DECEMBER SAW 0 CONTRACTS AND FEB SAW THE ISSUANCE OF 5230 CONTRACTS. The new OI for the gold complex rests at 452,880. DEMAND FOR GOLD INTENSIFIES GREATLY AS WE CONTINUE TO WITNESS THE HUMONGOUS 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 WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.  IN ESSENCE WE HAVE A GOOD GAIN OF 3983 OI CONTRACTS: 1257 OI CONTRACTS DECREASED AT THE  COMEX  AND A GOOD SIZED  5230 OI CONTRACTS WHICH NAVIGATED OVER TO LONDON.

YESTERDAY, WE HAD 8815 EFP’S ISSUED.

ACCUMULATION OF EFP’S/ GOLD(EXCHANGE FOR PHYSICAL) FOR THE MONTH OF DECEMBER STARTING WITH FIRST DAY NOTICE:  184,591 CONTRACTS OR 18.459 MILLION OZ OR 574.15 TONNES(15 TRADING DAYS AND THUS AVERAGING: 12,306 EFP CONTRACTS PER TRADING DAY OR 1.2306 MILLION OZ/DAY)

Result: A TINY SIZED DECREASE IN OI DESPITE THE FAIR SIZED RISE IN PRICE IN GOLD TRADING YESTERDAY ($5.00). WE  HAD A GOOD SIZED  NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 5230. 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 5230 EFP CONTRACTS ISSUED, WE HAD A NET GAIN IN OPEN INTEREST OF 3983  contracts:

5230 CONTRACTS MOVE TO LONDON AND A 1257 CONTRACTS DECREASED AT THE  COMEX. (in tonnes, the gain  equates to 12.38 TONNES)

we had:  21  notice(s) filed upon for 2100 oz of gold.

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

GLD:

Today, NO CHANGE IN GOLD INVENTORY AT THE GLD/

Inventory rests tonight: 836.02 tonnes.

SLV

 

NO CHANGE IN SILVER INVENTORY AT THE SLV:

INVENTORY RESTS AT 326.337 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 A TINY SIZED 478 contracts from 207,945 DOWN  TO 203,360 (AND now A LITTLE FURTHER FROM THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) DESPITE THE TINY RISE IN PRICE OF SILVER OF 8 CENTS YESTERDAY . HOWEVER,OUR BANKERS  USED THEIR EMERGENCY PROCEDURE TO ISSUE ANOTHER  1465  PRIV
ATE
 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 TINY COMEX SILVER COMEX LIQUIDATION. BUT, IF WE TAKE THE  OI LOSS AT THE COMEX OF 478 CONTRACTS TO THE 1465 OI TRANSFERRED TO LONDON THROUGH EFP’S  WE OBTAIN A GAIN OF  987  OPEN INTEREST CONTRACTS, AND YET WE STILL HAVE A  HUGE AMOUNT OF SILVER OUNCES THAT ARE STANDING FOR METAL IN DECEMBER (SEE BELOW). THE NET GAIN TODAY IN OZ: 4.935 MILLION OZ!!! 

RESULT: A TINY SIZED DECREASE IN SILVER OI AT THE COMEX DESPITE THE  8 CENT RISE IN PRICE (WITH RESPECT TO YESTERDAY’S TRADING).  BUT WE ALSO  HAD ANOTHER 1465 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

i)Late WEDNESDAY night/THURSDAY morning: Shanghai closed UP 12.45 points or 0.38% /Hang Sang CLOSED UP 132.97 pts or 0.45% / The Nikkei closed DOWN 25.62 POINTS OR 0.11%/Australia’s all ordinaires CLOSED DOWN 0.19%/Chinese yuan (ONSHORE) closed DOWN at 6.5840/Oil UP to 58.03 dollars per barrel for WTI and 64/42 for Brent. Stocks in Europe OPENED ALL GREEN . ONSHORE YUAN CLOSED DOWN AGAINST THE DOLLAR AT 6.5840. OFFSHORE YUAN CLOSED UP AGAINST  THE ONSHORE YUAN AT 6.5713 //ONSHORE YUAN  WEAKER AGAINST THE DOLLAR/OFF SHORE STRONGER TO THE DOLLAR/. THE DOLLAR (INDEX) IS  SLIGHTLY STRONGER AGAINST ALL MAJOR CURRENCIES. CHINA IS   HAPPY TODAY.(STRONGER MARKETS)

Read More @ HarveyOrganBlog.com

Is Gold Ready To Move Higher?

by Dave Kranzler, Investment Research Dynamics:

The simple answer to that question is: who knows, eventually it will. I like to look at the Commitment of Traders report for signals. I think the COT offers better information than looking at charts, although I like to use my COT analysis in conjunction with charts. My fund partner keeps a database of COT gold and silver data going back to May 2005. Over this time, there’s been a strong correlation between the direction of gold, the net long position of the hedge funds, the net short position of the banks and the total open interest in gold (silver) futures.

Over this time period (Since May 2005), the total open interest in Comex gold futures has averaged 429k contracts. The hedge fund net long position in gold futures has averaged 142.8k and the bank net short position has averaged 168.1k contracts. Since 2015, we’ve had two price cycles starting with the low in December 2015. At the December 2015 low in gold, the hedge fund net long position was 9,750k contracts and the bank net short was 2.9k contracts.  The December hedge fund net long was an extraordinary low net long position and the bank net short was extraordinarily low. This makes sense given that mid-December marked the bottom of the nearly 6-year bear cycle within the secular gold bull market.

If we go back July 2016, the open interest in Comex gold has declined 206k contracts – a staggering 26 million ozs – 737 tonnes (25% worth of gold produced annually).   The Comex banks were short an eye-popping 340k contracts – 34 million ounces, or 964 tonnes of paper gold. This represents an undeniably enormous effort by the Fed via the Comex banks to cap the price of gold.

As of the last COT report (Dec 12th, the hedge fund net long was 107k and the bank net short was 119k. The overall open interest was 446k, about 20k contracts above the average open interest since May 2005.  In a “horsehoes and handgrenades” context,  we should have seen the bottom a week ago.

The open interest report thru Tuesday (Dec 19th) showed 446k open interest. Assuming most of that drop in o/i was decline in the hedge fund net long and bank net short, we should start to head higher, but don’t expect this happen continuously, in parabolic crypto-coin fashion.  The gold bubble is yet to occur.   I can’t promise that gold will move higher from here.  The best we can do is assess probabilities based on historical data relationships as they apply currently.

I want to mention briefly that Dennis Gartman has exited the long position in gold in his theoretical portfolio. Gartman’s market calls have a spectacular track record as a reliable contrarian indicator. I kid you not. This would suggest that the gold market is at or near a bottom.

Read More @ InvestmentResearchDynamics.com

Keiser Report: Bitcoin vs Gold (E1165)

from RT:

Max and Stacy discuss how bitcoin killed gold, and Max interviews author Jim Rickards of Meraglim.com about predictive data analytics and artificial intelligence.