Saturday, February 29, 2020

Does The CoT Structure Prohibit A Rally? – Craig Hemke

0

by Craig Hemke, Sprott Money:

Can the Comex metals rally from here given that the CoT structure is not yet fully “washed out”? Of course they can! While it’s sometimes easy and obvious to assume that rallies are imminent by the CoT structure, history shows us that a fully-washed CoT isn’t imperative for a bottom and rally.

Let’s start with an example of a full wash, rinse and spin in Comex gold. Note the all-time lows of December 2015. That’s as clean and washed as you’re likely ever going to see.

DATEPRICECOMMERCIAL NET SHORT

12/1/15$10602,911 (ALLTIME LOW)

5/3/16$1290294,901

5/31/16$1210214,038

7/5/16$1375340,207 (ALLTIME HIGH)

So, in this example, if you were waiting for a full CoT washout in May of 2016, you missed a $165 move in June.

DATEPRICECOMMERCIAL NET SHORT

12/27/16$1150134,022

4/18/17$1290211,064

7/11/17$121073,916

9/12/17$1330272,098

11/14/17$1283225,791 (range of 210,000-233,000 since 9/26/17)

In 2017, the range of positions hasn’t been as large but again, the CoT didn’t need to go to net flat in July before a new rally could begin.

So, anyway, the moral of the story is…While we’d all like to have the CoT give us a clear indication of a bottom, it doesn’t always do so. In fact, the CoT is far more useful at warning of TOPS than calling bottoms.

To that point, again note that THE ALLTIME HIGH in the Gold Commercial NET short position came on July 5, 2016 with price UP more than 30{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} from its bear market lows of just seven months earlier. Additionally, note that the price high of 2017 also came at the 2017 Commercial NET short high of 272,098. This was the highest Commercial NET short position since the CoT of October 4, 2016. And where was price then? $1280.

As this pertains to Comex silver, at TFMR we always pay attention to the Large Spec Net Long Ratio. This is derived by dividing the Large Spec GROSS short position into the Large Spec GROSS long position. History has show that anything below 2:1 starts to get bullish, near 3:1 is neutral and above 4:1 starts to get bearish.

Read More@ SprottMoney.com

GOLD RISES $10.40 TO $1292.40 AND SILVER RISES 13 CENTS

by Harvey Organ, Harvey Organ Blog:

SILVER SEES COMEX SILVER OI RISE BY 1919 CONTRACTS AND ON TOP OF THAT ANOTHER 1231 EXCHANGE FOR PHYSICAL CONTRACTS MOVE FOR A LONDON FORWARD/FOMC MINUTES SHOW FED DOVISH IN HOW THEY ARE HANDLING THE ECONOMY

GOLD: $1292.40  UP $10.40

Silver: $17.13 UP 13 cents

Closing access prices:

Gold $1292.60

silver: $17.15

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: $1290.11 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME: $1279.65

PREMIUM FIRST FIX: $10.46

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SECOND SHANGHAI GOLD FIX: $1291.12

NY GOLD PRICE AT THE EXACT SAME TIME: $1282.65

Premium of Shanghai 2nd fix/NY:$8.47

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LONDON FIRST GOLD FIX: 5:30 am est $1283.95

NY PRICING AT THE EXACT SAME TIME: $1282.85

LONDON SECOND GOLD FIX 10 AM: $1286.95

NY PRICING AT THE EXACT SAME TIME. 1288.00

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

5000 OZ/

Total number of notices filed so far this month: 885 for 4,425,000 oz

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Bitcoin: BID $8260 OFFER /$8287 up $173.00 (MORNING)

BITCOIN : BID $8175 OFFER: $8199 // UP $81 (CLOSING)

end

Let us have a look at the data for today

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In silver, the total open interest ROSE BY  1919 contracts from 197,483 UP TO 199,402 WITH RESPECT TO YESTERDAY’S TRADING  WHICH SAW SILVER RISE BY 7 CENTS AND STILL WELL BELOW THE HUGE $17.25 SILVER RESISTANCE.   WE HAD NO LONG COMEX LIQUIDATION.   WE WERE ALSO NOTIFIED THAT WE HAD  ANOTHER HUMONGOUS NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE : 1106 DECEMBER EFP’S WERE ISSUED ALONG WITH 125 EFP’S FOR MARCH FOR A TOTAL ISSUANCE OF 1231 CONTRACTS. (THE ISSUANCE FOR MARCH THAT WE HAVE SEEN THESE PAST FEW DAYS BOTHERS ME A LOT AS THIS IS SUPPOSE TO BE FOR EMERGENCY IN THE UPCOMING DELIVERY MONTH).  I GUESS WHAT THE CME IS STATING IS THAT THERE IS NO SILVER TO BE DELIVERED UPON AT THE COMEX AS THEY MUST EXPORT THEIR OBLIGATION TO LONDON. YESTERDAY WITNESSED  1078 EFP’S ISSUED.

RESULT: A MEDIUM SIZED RISE IN OI COMEX WITH THE 7 CENT PRICE RISE.  WE HAD NO COMEX LONGS  EXITED OUT OF THE SILVER COMEX .  HOWEVER FROM THE CME DATA 1231 EFP’S  WERE ISSUED FOR TUESDAY FOR A DELIVERABLE CONTRACT OVER IN LONDON WITH A FIAT BONUS. IN ESSENCE THE  DEMAND FOR SILVER PHYSICAL INTENSIFIES GREATLY. WE REALLY GAINED IN OI 3150 CONTRACTS i.e.  1231 open interest contracts headed for London (EFP’s) and another increase of 1919 contracts standing at the silver comex

In ounces, the OI is still represented by just UNDER 1 BILLION oz i.e. 0.997 BILLION TO BE EXACT or 142{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} 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 A GIGANTIC 18,949 CONTRACTS DESPITE THE FAIR SIZED RISE IN PRICE OF GOLD ($5.10) WITH RESPECT TO YESTERDAY’S TRADING. WE HAD CONSIDERABLE COMEX LONGS EXIT THE ARENA.  HOWEVER  THE TOTAL NUMBER OF GOLD EFP’S ISSUED YESTERDAY FOR TODAY  TOTALED  ANOTHER 8,101 CONTRACTS OF WHICH THE MONTH OF DECEMBER SAW 8036 CONTRACTS AND FEB SAW THE ISSUANCE OF 65 CONTRACTS. YESTERDAY, WE WITNESSED A TOTAL OF 21,428 EFP’S ISSUED FOR YESTERDAY.  The new OI for the gold complex rests at 531,612.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 LOSS OF 10,848 OI CONTRACTS: 18,949 OI CONTRACTS LEAVE THE COMEX  BUT 8101 OI CONTRACTS NAVIGATE OVER TO LONDON.

Result: A HUGE SIZED DECREASE IN OI  WITH THE FAIR SIZED RISE IN PRICE IN GOLD ON YESTERDAY ($5.10). WE  HAD AN LARGE  NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 8,101. THERE OBVIOUSLY DOES NOT SEEM TO BE ANY PHYSICAL GOLD AT THE COMEX AN 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.  IF YOU TAKE INTO ACCOUNT THE 8101 EFP CONTRACTS ISSUED, WE HAD A NET LOSS OPEN INTEREST OF 10,848:  8101 CONTRACTS MOVE TO LONDON AND 18,949 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:

No change in gold inventory at the GLD/

Inventory rests tonight: 843.39 tonnes.

SLV

TODAY WE HAD NO CHANGE IN SILVER INVENTORY AT THE SLV

INVENTORY RESTS AT 318.074 MILLION OZ

end

.

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

1. Today, we had the open interest in silver ROSE BY 1919 contracts from 197,483 UP  TO 199,402 (AND now A LITTLE CLOSER TO THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) WITH THE RISE IN SILVER PRICE (A GAIN OF 7 CENTS ). HOWEVER, OUR BANKERS  USED THEIR EMERGENCY PROCEDURE TO ISSUE ANOTHER HUGE  1106  PRIVATE EFP’S FOR DECEMBER (WE DO NOT GET A LOOK AT THESE CONTRACTS)  AND 125 EFP’S FOR MARCH FOR A TOTAL OF 1231 EFP CONTRACTS.  EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON. THIS IS QUITE EARLY FOR THESE EFP ISSUANCE..USUALLY WE WITNESS THIS ONE WEEK PRIOR TO FIRST DAY NOTICE AND THIS CONTINUES RIGHT UP UNTIL FDN.  WE ALSO HAD ZERO SILVER COMEX LIQUIDATION. IF WE ADD THE OI GAIN AT THE COMEX (1919 CONTRACTS) i.e. THOSE STAYING WAITING FOR COMEX SILVER DELIVERY,  TO THE 1231 OI TRANSFERRED TO EFP’S AND THUS OVER TO LONDON FOR FORWARDS, WE OBTAIN A NET GAIN (DEMAND) OF 3150 OPEN INTEREST CONTRACTS,

RESULT: A FAIR SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 7 CENT RISE IN PRICE (WITH RESPECT TO YESTERDAY’S TRADING). NOT ONLY THAT BUT  WE ALSO  HAD ANOTHER 1231 EFP’S ISSUED.. TRANSFERRING OUR COMEX LONGS OVER TO LONDON .  YESTERDAY WE EXPERIENCED 2998 EFP’S ISSUED FOR TRANSFER 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

)Late TUESDAY night/WEDNESDAY morning: Shanghai closed UP 19.97 points or .59{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} /Hang Sang CLOSED UP 185.42 pts or 0.62{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} / The Nikkei closed UP 106.67 POINTS OR 0.48{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Australia’s all ordinaires CLOSED UP 0.39{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Chinese yuan (ONSHORE) closed UP at 6.6180/Oil UP to 57.81 dollars per barrel for WTI and 63.15 for Brent. Stocks in Europe OPENED GREENM EXCEPT GERMAN DAX . ONSHORE YUAN CLOSED DOWN AGAINST THE DOLLAR AT 6.6180. OFFSHORE YUAN CLOSED AT VALUE TO THE ONSHORE YUAN AT 6.6179 //ONSHORE YUAN STRONGER AGAINST THE DOLLAR/OFF SHORE STRONGER TO THE DOLLAR/. THE DOLLAR (INDEX) IS WEAKER AGAINST ALL MAJOR CURRENCIES. CHINA IS VERY HAPPY TODAY.(MARKETS STRONG)

Read More @ HarveyOrganBlog.com

SELLING OUT OF PRECIOUS METALS & BUYING BITCOIN…. Very Bad Idea

by Steve St. Angelo, SRSrocco:

There is a new trend by individuals in the alternative media community who are now selling out of precious metals and buying into Bitcoin and cryptocurrencies.  While this may seem like a good idea, especially when Bitcoin and the cryptocurrencies reach new all-time highs, it is likely a big mistake.  Now, I am not saying that individuals shouldn’t invest in cryptocurrencies.  Rather, it’s a lousy idea to sell all of one’s precious metals holdings and put it all into Bitcoin and cryptocurrencies.

Recently, Sean at SGTReport published a short video in which part of the headlined was titled as “SILVER BULL CAPITULATES.”  In the video, Sean explains how past frequent guest and precious metal analyst, Andy Hoffman, has sold out of all his silver and is now only in Bitcoin and gold.  Andy explains in his interview on Crush The Street that he sold all of his silver this summer as he really has no interest in it.  He goes on to say, “Because, in a digital age, I just don’t believe people are going to store thousands of pounds of silver hoping that the gold-silver ratio is going to come down.”

I have to tell you, not only do I find this sort of thinking, utterly preposterous, I also find it quite troubling that analysts who have been promoting precious metals for the past decade are now implying that gold and silver are no longer high-quality stores of value.  I disagree entirely with this faulty and superficial analysis.

There are several reasons why I believe it is essential to hold most of one’s wealth in precious metals than in Bitcoin and cryptocurrencies.  However, the most important factor has to do with the fragile nature of a highly technical complex system that allows Bitcoin and cryptocurrencies to function.  It takes a tremendous amount of energy to maintain and power the internet, servers and computer systems that give life to Bitcoin and cryptocurrencies.

Unfortunately, the majority of the alternative and mainstream media analysts believe in the ENERGY TOOTH FAIRY ( a term coined by Louis Arnoux).  What do I mean by the ENERGY TOOTH FAIRY?  It is the belief by a significant portion of the public and analyst community that the advanced world economy and markets will continue to prosper and grow forever.  Yes, it’s true that some analysts, such as Harry Dent, believe that if we got rid of the corrupt bankers and politicians and allowed people to have a lot more babies, then economic growth will continue indefinitely.

For some odd reason, Harry Dent totally omits the impact of energy on his demographic analysis of the markets.  Does ole Harry not realize that the exponential increase in global oil production has coincided with the exponential growth in human population???  Of course not.  If he did, he would stop focusing on demographics and place his attention on what is happening in the global energy industry.

Regardless, selling out of one’s precious metals holdings might be unwise if we consider that the price of gold and silver are closer to their lows, and Bitcoin and the cryptos are reaching new highs.

PRECIOUS METALS PRICES NEAR LOWS vs. BITCOIN AT RECORD HIGHS

For example, the current gold price at $1,280 is only 10{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} above its annual average low of $1,160 set in 2015, while silver at $17 is only 8{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} higher than its average yearly low of $15.68 during the same year.  However, if we look at Bitcoin, the price is near its current high of $8,200:

Read More @ SRSrocco.com

Inflation and Gold – Precious Metals Supply and Demand

0

by Keith Weiner, Acting Man:

Reasons to Buy Gold

The price of gold went up $19, and the price of silver 42 cents. The price action occurred on Monday, Wednesday and Friday though so far, only the first two price jumps reversed. We promise to take a look at the intraday action on Friday.

File under “reasons to buy gold”: A famous photograph by Henri Cartier-Bresson of a rather unruly queue in front of a bank in Shanghai in 1949 in the final days of Kuomintang rule. When it dawned on people that the communists couldn’t be stopped, they frantically tried exchange their government-issued paper money for gold. In preparation for its exodus to Taiwan, the Kuomintang regime had forced everyone to exchange their gold, silver and foreign exchange for a new paper currency, the Jingyuanquan in 1948 (“golden yuan”) – which it promptly inflated with gay abandon, belying its name. It then tried to combat rising prices with price controls – a strategy that has reliably failed since at least the times of the Roman Empire. It reversed the policy a few months later, as even its main supporters became thoroughly fed up. The people in the picture above were among those who had clearly waited too long to take advantage of this policy reversal. [PT]

But first, we want to clarify something in light of our ongoing commentary about the struggles of the debtors and the lack of drivers for rising consumer prices. Just because farmers and restaurateurs are frantically producing and selling like mad, which results in soft prices, does not mean that people cannot begin to buy gold in earnest again.

There is no causal relationship between consumer prices and the price of gold. At times, they can be highly correlated, but then the correlation ends. For example, did you know that the age of Miss America correlated with the number of murders by steam and hot things for 10 years? Let’s look at a chart.

Gold price y/y change (right hand scale) vs. consumer price index y/y change (left hand scale) – click to enlarge.

NB: we had to put the two numbers, change in consumer prices and change in gold price on two different axes. Though both are percentage changes, gold changes are so much larger that if plotted on the same axis, consumer prices look almost like a flat-line.

You can see a tantalizing relationship between the two traces, at least for a time. At first (we began the graph in 1971 when President Nixon cut the dollar loose from gold), there is a striking correlation.

But then there is a marked change post-1981, and if there is a correlation (we have not done the math), it looks much more tenuous. This is when Reagan and Volcker beat inflation (in the mainstream Narrative), or objectively when interest began to fall, when marginal productivity of debt began its uncanny correlation with interest (which we believe is causal), and when yield purchasing power begins to show a kind of hyperinflation.

Offhand, we can think of two reasons to buy and own gold: participate in speculative mania and avoid default risk. Right now a speculative mania is occurring in crypto-currencies so that may (but not necessarily, beware correlation!) shunt such capital flows away from gold. As to default risk, there are signs of rising stress in high yield credit markets, but it’s early yet.

Fundamental Developments

Here are the charts of the prices of gold and silver, and the gold-silver ratio.

Read More @ Acting-Man.com

GOLD RISES BY $5.10 AND SILVER IS UP BY 7 CENTS

by Harvey Organ, Harvey Organ Blog:

A MONSTROUS 21,428 EFP’S TRANSFERRED OUT OF THE COMEX AND LANDS AS A FORWARD IN LONDON/SARA CARTER; PROOF OF CLINTONS AND OBAMA IN URANIUM ONE SCANDAL

GOLD: $1282.00  UP $5.10

Silver: $17.00 UP 7 cents

Closing access prices:

Gold $1280.70

silver: $16.97

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: $1287.34 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME: $1280.10

PREMIUM FIRST FIX: $7.24

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SECOND SHANGHAI GOLD FIX: $1288.21

NY GOLD PRICE AT THE EXACT SAME TIME: $1279.95

Premium of Shanghai 2nd fix/NY:$8.26

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LONDON FIRST GOLD FIX: 5:30 am est $1280.00

NY PRICING AT THE EXACT SAME TIME: $1280.55

LONDON SECOND GOLD FIX 10 AM: $1283.30

NY PRICING AT THE EXACT SAME TIME. 1283.30

For comex gold:

NOVEMBER/

 NUMBER OF NOTICES FILED TODAY FOR NOVEMBER CONTRACT:  1 NOTICE(S) FOR 100 OZ.

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

For silver:

NOVEMBER

0 NOTICE(S) FILED TODAY FOR

nil OZ/

Total number of notices filed so far this month: 884 for 4,420,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: BID $8198 OFFER /$8224 down $30.00 (MORNING)

BITCOIN : BID $8206 OFFER: $8235 // down $22 (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 LARGELY ANTICIPATED 7611 contracts from 205,094 DOWN TO 197,483 WITH RESPECT TO YESTERDAY’S TRADING  WHICH SAW SILVER FALL  BY A CONSIDERABLE 45 CENTS AND FALL WELL BELOW THE HUGE $17.25 SILVER RESISTANCE.   WE HAD CONSIDERABLE LONG COMEX LIQUIDATION.  HOWEVER   WE WERE ALSO NOTIFIED THAT WE HAD QUITE A HUMONGOUS NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE : 2998 DECEMBER EFP’S WERE ISSUED ALONG WITH 0 EFP’S FOR MARCH FOR A TOTAL ISSUANCE OF 2998 CONTRACTS. (THE ISSUANCE FOR MARCH THAT WE HAVE SEEN THESE PAST FEW DAYS BOTHERS ME A LOT AS THIS IS SUPPOSE TO BE FOR EMERGENCY IN THE UPCOMING DELIVERY MONTH).  I GUESS WHAT THE CME IS STATING IS THAT THERE IS NO SILVER TO BE DELIVERED UPON AT THE COMEX AS THEY MUST EXPORT THEIR OBLIGATION TO LONDON. THURSDAY WITNESSED  1078 EFP’S ISSUED FOR YESTERDAY.

RESULT: A HUGE SIZED RISE IN OI COMEX WITH THE 45 CENT PRICE FALL.  WE HAD CONSIDERABLE  COMEX LONGS  EXITED OUT OF THE COMEX .  HOWEVER FROM THE CME DATA 2998 EFP’S  WERE ISSUED FOR TUESDAY FOR A DELIVERABLE CONTRACT OVER IN LONDON WITH A FIAT BONUS. IN ESSENCE THE  DEMAND FOR SILVER PHYSICAL INTENSIFIES GREATLY. WE REALLY LOST ONLY 4613 CONTRACTS.

In ounces, the OI is still represented by just UNDER 1 BILLION oz i.e. 0.987 BILLION TO BE EXACT or 141{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT OCT MONTH/ THEY FILED: 3 NOTICE(S) FOR 15,000 OZ OF SILVER

In gold, the open interest FELL  BY A LESS THAN EXPECTED 9,277 CONTRACTS WITH THE HUGE SIZED FALL IN PRICE OF GOLD ($19.70) WITH RESPECT TO YESTERDAY’S TRADING. WE HAD CONSIDERABLE COMEX LONGS EXIT THE ARENA.  HOWEVER  THE TOTAL NUMBER OF GOLD EFP’S ISSUED YESTERDAY FOR TODAY  TOTALED A TOTALLY UNBELIEVABLE: 21,428 CONTRACTS OF WHICH THE MONTH OF DECEMBER SAW 21,428 CONTRACTS AND FEB SAW THE ISSUANCE OF 150 CONTRACTS. YESTERDAY, WE WITNESSED A TOTAL OF 12,711 EFP’S ISSUED FRIDAY  FOR MONDAY.  The new OI for the gold complex rests at 550,561. 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 TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION.  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 SEVERELY BACKWARD IN BOTH GOLD AND SILVER AND ON TOP OF THAT IT IS TAKING 6 TO 10 WEEKS TO OBTAIN PHYSICAL WHEN FORWARDS ARE DUE.

Result: A HUGE SIZED DECREASE IN OI  WITH THE MAMMOTH FALL IN PRICE IN GOLD ON YESTERDAY ($19.70). WE  HAD AN UNBELIEVABLE HUMONGOUS NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 21,428. THERE OBVIOUSLY DOES NOT SEEM TO BE ANY PHYSICAL GOLD AT THE COMEX AN 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. IF YOU TAKE INTO ACCOUNT THE 21,428 EFP CONTRACTS ISSUED, WE HAD A NET GAIN OPEN INTEREST OF 12,151:  21,428 CONTRACTS MOVE TO LONDON AND 9277 LEAVE THE COMEX.

we had:  1  notice(s) filed upon for 100 oz of gold.

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

GLD:

No change in gold inventory at the GLD/

Inventory rests tonight: 843.39 tonnes.

SLV

TODAY WE HAD NO CHANGE IN SILVER INVENTORY AT THE SLV

INVENTORY RESTS AT 318.074 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 7611 contracts from 205,094 DOWN  TO197,483 (AND now A LITTLE FURTHER FROM THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) WITH THE HUGE FALL IN SILVER PRICE (A LOSS OF 45 CENTS ). HOWEVER, OUR BANKERS  USED THEIR EMERGENCY PROCEDURE TO ISSUE A MONSTROUS 2998  PRIVATE EFP’S FOR DECEMBER (WE DO NOT GET A LOOK AT THESE CONTRACTS)  AND 0 EFP’S FOR MARCH FOR A TOTAL OF 2998 EFP CONTRACTS.  EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON. THIS IS QUITE EARLY FOR THESE EFP ISSUANCE..USUALLY WE WITNESS THIS ONE WEEK PRIOR TO FIRST DAY NOTICE AND THIS CONTINUES RIGHT UP UNTIL FDN.  WE ALSO HAD CONSIDERABLE  AMOUNT OF SILVER COMEX LIQUIDATION.

RESULT: A HUGE SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 45 CENT LOSS IN PRICE (WITH RESPECT TO YESTERDAY’S TRADING). HOWEVER, WE  HAD ANOTHER 2998 EFP’S ISSUED,TRANSFERRING OUR COMEX LONGS OVER TO LONDON TOGETHER WITH CONSIDERABLE  SILVER COMEX LIQUIDATION.  YESTERDAY WE EXPERIENCED 1078 EFP’S ISSUED FOR TRANSFER 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 MONDAY night/TUESDAY morning: Shanghai closed UP 18.10 points or .53{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} /Hang Sang CLOSED UP 557.76 pts or 1.91{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} / The Nikkei closed UP 154.72 POINTS OR 0.70{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Australia’s all ordinaires CLOSED UP 0.27{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Chinese yuan (ONSHORE) closed DOWN at 6.6336/Oil UP to 56.55 dollars per barrel for WTI and 62.36 for Brent. Stocks in Europe OPENED GREEN  . ONSHORE YUAN CLOSED DOWN AGAINST THE DOLLAR AT 6.6336. OFFSHORE YUAN CLOSED WEAKER TO THE ONSHORE YUAN AT 6.6362 //ONSHORE YUAN WEAKER AGAINST THE DOLLAR/OFF SHORE WEAKER TO THE DOLLAR/. THE DOLLAR (INDEX) IS STRONGER AGAINST ALL MAJOR CURRENCIES. CHINA IS   VERY HAPPY TODAY.(MARKETS STRONG)

Read More @ HarveyOrganBlog.com

New Gold-Backed Debit Card Launched In Partnership With MasterCard

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from ZeroHedge:

In recent years, there has been a major debate about the respective merits of gold versus Bitcoin, even though many, not all, gold bulls are also supporters of the latter. Gold advocates generally view favourably Bitcoin’s inherent characteristics of decentralisation, finite supply and ability to operate (so far) outside of the usual interference by western central banks. Having said that, the launch of Bitcoin futures on the CME in the coming weeks could lead to naked shorting of “paper Bitcoin” by any parties, including central banks and large commercial banks, who deem capping of the Bitcoin price necessary. As we discussed last week in “Financial Times: Sell Bitcoin Because The Market Is About To Become “Civilized”, this could align Bitcoin with one of the major issues which has held the gold market hostage for years, time will tell.

While many gold investors remain entrenched in the view that gold will (eventually) prove to be the better store of value, one thing many would acknowledge is that Bitcoin is likely to evolve into a superior means of payment. However, that could be in the process of changing.

A fintech start up is partnering with some financial heavyweights to create a payments system backed by physical – not paper – gold. According to the Financial Times.

The world’s oldest currency is being brought into the digital age with the launch of a debit card and app that will allow people to pay for goods in gold.

Fintech group Glint has teamed up with Lloyds Banking Group in the UK and MasterCard to create an app that enables people to load credit in various currencies, which can then be used to buy a portion of a physical gold bar. Customers use the app at the checkout to select whether to pay in a currency or gold, before transacting with their MasterCard.

The development marks the first time people in the UK and overseas can own just a portion of a gold bar through an app, which can then be used in mobile and debit card-based payments. The app also allows people to send gold to peers in the form of a digital payment. Jason Cozens, Glint’s chief executive and co-founder, said: “Everyone is familiar with gold as one of society’s oldest means of exchange, its universal acceptance, its reliability, its history as a store of wealth and as a means of underpinning the value of ‘paper’ currencies. “Unlike paper currencies, gold can’t be wiped out, devalued or corrupted.”

If you’ve been watching carefully Glint (website is glintpay.com) has been working towards this moment for some time. The Crunch reported a capital raising in August this year, noting the impressive list of backers.

Glint, a stealthy London fintech startup that promises a new “global currency,” has raised £3.1 million from a plethora of individual backers in the financial services and asset management space, alongside early-stage investor Bray Capital.

They comprise Haruko Fukuda, former CEO of the World Gold Council and NED of Investec Bank; Oliver Bolitho, formerly Chairman of Goldman Sachs Asset Management Asia; Hugh Sloane, co-founder of asset manager Sloane Robinson; and Lord Flight Of Worcester, formerly of Guinness Flight Global Asset Management.

Other supporters of the new app include the Tokyo Commodity Exchange, and NEC Capital Solutions, a technology integration company. The co-founder and COO of Glint, Ben Davies (right in the photo below), is well known to us for his media appearances – often lambasting manipulation of the gold price – and for running the precious metals investment fund, Hinde Capital. The CEO and co-founder, Jason Cozens, also has gold market experience, having set up “GoldMadeSimple.com, a website that allows investors to buy and store physical gold. Additionally, he set up two ecommerce and online marketing businesses.

Read More @ ZeroHedge.com

ANOTHER RAID ON GOLD AND SILVER AS PROMISED

by Harvey Organ, Harvey Organ Blog:

MASSIVE AMOUNTS OF GOLD EFP’S ISSUES WHICH MEANS STHAT THERE IS NO GOLD TO BE DELIVERED UPON AT THE GOLD COMEX AND FOR THAT MATTER A HUGE AMOUNT OF SILVER EFT’S ISSUES: SAME STORY AS GOLD/TRUMP LABELS NORTH KOREA AS A TERRORIST STATE/SOUTH KOREA DETECTS ROCKET ENGINE TESTING IN NORTH KOREA/GOOD REASON FOR GOLD AND SILVER TO GO DOWN: THE ECB IS PLANNING ON ELIMINATING DEPOSIT INSURANCE/GERMANY IN CHAOS TONIGHT AS THEY CANNOT FORM A GOVERNMENT AND THEY NEED TO HAVE AN NEW ELECTION AND MOST LIKELY MERKEL WILL NOT SERVE

GOLD: $1276.90  DOWN $19.70

Silver: $16.93 DOWN 45 cents

Closing access prices:

Gold $1276.90

silver: $16.93

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: $1296.26 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME: $1291.40

PREMIUM FIRST FIX: $4.86

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SECOND SHANGHAI GOLD FIX: $1294.99

NY GOLD PRICE AT THE EXACT SAME TIME: $1290.90

Premium of Shanghai 2nd fix/NY:$4.39

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LONDON FIRST GOLD FIX: 5:30 am est $1292.35

NY PRICING AT THE EXACT SAME TIME: $1291.50

LONDON SECOND GOLD FIX 10 AM: $1286.20

NY PRICING AT THE EXACT SAME TIME. 1286.30

For comex gold:

NOVEMBER/

 NUMBER OF NOTICES FILED TODAY FOR NOVEMBER CONTRACT:  1 NOTICE(S) FOR 100 OZ.

TOTAL NOTICES SO FAR: 1052 FOR 105,200 OZ (3.372TONNES)

For silver:

NOVEMBER

3 NOTICE(S) FILED TODAY FOR

15,000 OZ/

Total number of notices filed so far this month: 884 for 4,420,000 oz

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Bitcoin: BID $8100 OFFER /$8125 up $412.00 (MORNING)

BITCOIN : BID $8222 OFFER: $8247 // up $534 (CLOSING)

end

Let us have a look at the data for today

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In silver, the total open interest ROSE BY A HUGE 5,383 contracts from 199,711 UP TO 205,094 WITH RESPECT TO FRIDAY’S TRADING  WHICH SAW SILVER RISE  BY 24 CENTS AND BREAK THE HUGE $17.25 SILVER RESISTANCE.   WE HAD ZERO LONG COMEX LIQUIDATION AND FURTHER  WE WERE NOTIFIED THAT WE HAD QUITE A HUMONGOUS NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE : 1078 DECEMBER EFP’S WERE ISSUED ALONG WITH 0 EFP’S FOR MARCH FOR A TOTAL ISSUANCE OF 1078 CONTRACTS FOR MONDAY. (THE ISSUANCE FOR MARCH THAT WE HAVE SEEN THESE PAST FEW DAYS BOTHERS ME A LOT AS THIS IS SUPPOSE TO BE FOR EMERGENCY IN THE UPCOMING DELIVERY MONTH).  I GUESS WHAT THE CME IS STATING IS THAT THERE IS NO SILVER TO BE DELIVERED UPON AT THE COMEX AS THEY MUST EXPORT THEIR OBLIGATION TO LONDON. THURSDAY WITNESSED  927 EFP’S ISSUED FOR FRIDAY.

RESULT: A HUGE SIZED RISE IN OI COMEX WITH THE 24 CENT PRICE RISE.  ZERO  COMEX LONGS  EXITED OUT OF THE COMEX AND FROM THE CME DATA 1078 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

In ounces, the OI is still represented by just OVER 1 BILLION oz i.e. 1.025 BILLION TO BE EXACT or 146{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT OCT MONTH/ THEY FILED: 3 NOTICE(S) FOR 15,000 OZ OF SILVER

In gold, the open interest SURPRISINGLY ROSE BY A HUMONGOUS 28,707 CONTRACTS WITH THE FAIR SIZED RISE IN PRICE OF GOLD ($10.60) WITH RESPECT TO FRIDAY’S TRADING. WE HAD ZERO COMEX LONGS EXIT THE ARENA.  HOWEVER  THE TOTAL NUMBER OF GOLD EFP’S ISSUED ON FRIDAY FOR MONDAY  TOTALED AN UNBELIEVABLE: 12,711 CONTRACTS OF WHICH THE MONTH OF DECEMBER SAW 12,711 CONTRACTS AND FEB SAW THE ISSUANCE OF 0 CONTRACTS. ON THURSDAY, WE WITNESSED A TOTAL OF 4394 EFP’S ISSUED THURSDAY  FOR FRIDAY.  The new OI for the gold complex rests at 561,237. 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 TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION.  THE BANKERS AT THE COMEX  HAVE JUST STATED THAT THEY HAVE NO METAL!! THIS IS THE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NOT BACKED SILVER (AND GOLD) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS SEVERELY BACKWARD IN BOTH GOLD AND SILVER AND ON TOP OF THAT IT IS TAKING 6 TO 10 WEEKS TO OBTAIN PHYSICAL WHEN FORWARDS ARE DUE.

Result: A HUGE SIZED INCREASE IN OI DESPITE THE FAIR SIZED RISE IN PRICE IN GOLD ON FRIDAY ($10.60). WE  HAD A HUGE NUMBER OF COMEX LONG TRANSFERS TO LONDON THROUGH THE EFP ROUTE AS (12,711 EFP’S). THERE OBVIOUSLY DOES NOT SEEM TO BE ANY PHYSICAL AT THE COMEX AS WE ARE APPROACHING THE HUGE DELIVERY MONTH OF DECEMBER WHICH EXPLAINS THE HUGE ISSUANCE OF EFP’S. WE  HAD ZERO GOLD COMEX OI CONTRACTS LEAVE THE COMEX GOLD ARENA.

we had:  1  notice(s) filed upon for 100 oz of gold.

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

GLD:

No change in gold inventory at the GLD/

Inventory rests tonight: 843.39 tonnes.

SLV

TODAY WE HAD NO CHANGE IN SILVER INVENTORY AT THE SLV

INVENTORY RESTS AT 318.074 MILLION OZ

end

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

1. Today, we had the open interest in silver ROSE BY 5,383 contracts from 199,711 UP  TO 205,094 (AND now A LITTLE CLOSER TO THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) WITH THE CONSIDERABLE RISE IN SILVER PRICE (A GAIN OF 24 CENTS AND THE BREAKING OF THAT HUGE $17.25 RESISTANCE). OUR BANKERS  USED THEIR EMERGENCY PROCEDURE TO ISSUE 1078  PRIVATE EFP’S FOR DECEMBER(WE DO NOT GET A LOOK AT THESE CONTRACTS)  AND 0 EFP’S FOR MARCH FOR A TOTAL OF 1078 EFP CONTRACTS.  EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON. THIS IS QUITE EARLY FOR THESE EFP ISSUANCE..USUALLY WE WITNESS THIS ONE WEEK PRIOR TO FIRST DAY NOTICE AND THIS CONTINUES RIGHT UP UNTIL FDN.  WE ALSO HAD NO  AMOUNT OF SILVER COMEX LIQUIDATION.

RESULT: A HUGE SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 24 CENT GAIN IN PRICE (WITH RESPECT TO FRIDAY’S TRADING). WE  HAD ANOTHER 1078 EFP’S ISSUED ,TRANSFERRING OUR COMEX LONGS OVER TO LONDON TOGETHER WITH ZERO  SILVER COMEX LIQUIDATION.

(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 UP 9.49 points or .28{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} /Hang Sang CLOSED UP 61.27 pts or 0.21{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} / The Nikkei closed DOWN 135.04 POINTS OR 0.60{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Australia’s all ordinaires CLOSED UP 0.17{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Chinese yuan (ONSHORE) closed UP at 6.6318/Oil UP to 56.44 dollars per barrel for WTI and 61.97 for Brent. Stocks in Europe OPENED GREEN  . ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.6318. OFFSHORE YUAN CLOSED WEAKER TO THE ONSHORE YUAN AT 6.6412 //ONSHORE YUAN STRONGER AGAINST THE DOLLAR/OFF SHORE WEAKER TO THE DOLLAR/. THE DOLLAR (INDEX) IS STRONGER AGAINST ALL MAJOR CURRENCIES. CHINA IS  VERY HAPPY TODAY.

Read More @ HarveyOrganBlog.com