Saturday, July 11, 2020

New York Fed official celebrates a century of market rigging

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by Chris Powell, GoldSeek:

Dear Friend of GATA and Gold:

Last month an official of the Federal Reserve Bank of New York celebrated a century of cooperation by central banks in secret interventions in the markets. His address was posted on the internet sites of the New York Fed and the Bank for International Settlements, but mainstream financial news organizations have yet to take note of it.

The official, Simon M. Potter, executive vice president of what the New York Fed calls its Markets Group, spoke December 20 at the bank’s “Commemoration of the Centennial of the Federal Reserve’s U.S. Dollar Account Services to the Global Official Sector”:

https://www.newyorkfed.org/newsevents/speeches/2017/pot171220

https://www.bis.org/review/r180112a.htm

Central banks, Potter said, often prefer and sometimes require their foreign exchange reserve managers to use the account services of other central banks.

“This is especially true,” Potter explained — with GATA’s emphasis added below — “for liquidity tranches of reserve portfolios where safety and accessibility are critical for the execution of core central banking functions, including foreign-exchange reserve management, foreign-exchange intervention, time-sensitive official payments, macro-prudential policy, lender-of-last-resort responsibilities, and other central bank operations that may require the use of foreign assets and currencies. …

“For the world’s major central banks, the maintenance of operational links through reciprocal account relationships is integral to their ability to engage in global financial stability operations. Having accounts, settlement instructions, tested and secure lines of communication, and business processes already in place at the time of or leading up to a crisis enhances major central banks’ ability to respond to crises efficiently and flexibly.

“There are numerous historical examples, both known and unknown to the public, of these account relationships being used to support the stability of the global financial system, perhaps best exemplified historically by the Bretton Woods network of central bank swap lines.

“More recently, in nearly every major international incident over the past 20 years that has prompted a coordinated response by the world’s major central banks — be it coordinated foreign-exchange interventions by the major central banks in the wake of the 2011 Fukushima disaster, the swap lines established during the 2008 financial crisis, or swap lines in the wake of 9/11 — the reciprocal accounts among major central banks formed the backbone for the actual or potential execution of stabilization policies. Without these accounts, coordinated central bank action in pursuit of financial stability objectives would be either severely handicapped or entail high risks in terms of the safety, confidentiality, and reliability of these operations.”

Read More @ GoldSeek.com

Silver As A Strategic Metal and Why Prices Will Soar – Jim Willie

by Jim Willie, Silver Phoenix:

The arguments in favor of silver as an investment asset are growing rapidly. In the opinion of the Jackass website, silver is the most under-valued hard asset in existence, with the highest potential for price appreciation on the globe. To begin with, central banks own no silver, but do own huge tracts of gold. Industry has huge demand for silver, but a trifling amount for gold demand. The investment demand is another key factor in favor of silver, but also for gold. Ever since the tech telecom bust in 2000, the precious metals growth curve has been evident. Ever since the subprime bond disaster in 2007, followed by the Lehman strangulation in 2008, the precious metals growth curve has continued. It is suppressed like holding back a team of six stagecoach Clydesdale horses by simple leather straps held by mere men with computers on their backs. Ever since the QE inflation policy of monetizing the USGovt debt, the monetary role of Gold & Silver has never been more acute in modern history. But silver offers much more.

Monetary Abuse

Since 2012 with the African style monetary policy, also shared at times by South American nations, the US Federal Reserve has been forced to succumb to hyper monetary inflation of the unsterilized variety. It is the most dangerous form of monetary policy to adopt, a sign of utter desperation. With the desperation has come astonishing price capping of the precious metals market, while at the same time reliance upon isolated wars to steal central bank gold at vaults of defenseless nations. The effect upon economies, hardly ever spoken of by the devoted lapdog financial press, replete with their drone message of a fake sluggish recovery, is for profound capital destruction after seven full years of liquidity spew. The economic stimulus will find even more monetary abuse from greater deficit spending, thus more motive to own precious metals. To be sure, the QE bond purchase initiative is kept within the financial sector for service to the banker masters who have captured the USGovt. This is self-dealing on its face. However, hyper monetary inflation always causes capital ruin in an assured sequence, which cannot be averted, even by Fascist Business Model dictums and propaganda.

The response to monetary abuse has always been a return to honest money and viable sound monetary systems. This time will be no different, in its return to Gold & Silver as foundation, except that the movement will come from the East, led by a global insurrection. The West can join the strong sturdy secure movement, or be left behind. Even England recognizes the shift in global winds, eager to build the RMB Trading Hub in London. The Chinese are leading the global reform movement, and are likely to encourage the growth of the German RMB Hub in Frankfurt. The Germans have significantly more trade with Russia & China than the fascist core in London Centre, offering excellent leading edge product lines and world class engineering which the British cannot ever match.

Broken Meters

If QE were indeed stimulus, then the USEconomy would have responded after a couple years of the wretched cursed policy at work. It serves Wall Street and the banking sector, and nothing else. The capital ruin and damage are evident in the constant negative GDP (with proper inflation adjustment), the high jobless rate, and the hopelessly rigged financial markets. The USFed has no business propping up the stock market or the corporate bond market, nor the crude oil market. But they have seen fit to consider stocks and crude oil as critical assets, and thus in need of support (to be read as price rigs). The effect of seven years of QE has been a bloated balance sheet at the USFed with $4.5 trillion in toxic assets. The leading toxic asset is the pristine AAA subprime USTreasury Bond. In the last week, China has just downgraded the USGovt debt to a B type grade, which means non-investment grade. In order to keep it all in check, all under control, the USFed must resort to coordinated efforts. They use QE to purchase bonds that are being dumped for foreign creditors. They also use Interest Rate Swap contracts to fabricate fake bond demand, with the levers held at the Exchange Stabilization Fund operated by the dutiful corrupted USDept Treasury. The ESFund is multi-$trillion machinery.

If the entire QE process were stimulus, then the resulting Money Velocity would not be in such dire condition. It was in decline until the Lehman subprime events in 2008, and it continues in decline since QE was put into force in 2012. Perhaps it creates stimulus to the bond market, but nothing but a gigantic wet blanket on Main Street and the tangible USEconomy.

No single graph demonstrates the failure of monetary policy more than this Money Velocity horrendous decline. That is why it never appears in the Wall Street Journal or New York Times, but the Golden Jackass site shows it periodically as a measure of failure. When the toxic vat of the USFed balance sheet reverses, along with those of other central banks, the flow will be from sovereign bonds (like the USTBond) into gold bullion. The trend will be to replace the global banking reserves with hard assets like gold bullion. Both Gold & Silver will become monetary metals. However, a whiff of something very new and refreshing is in the wind. Silver might instead become a core strategic asset for the energy sector, thus binding with the monetary role of Gold. The Paradigm Shift is to have an energy angle, and silver is at its core. Note the parallel from the Petro-Dollar, where the USDollar was intricately linked to the energy sector.

Fractures And Rebellion

Ten years of tremendous monetary expansion should have been accompanied by ten years of gold price appreciation to keep pace. Instead profound price suppression has been enforced. It is breaking down with the bust of the Petro-Dollar, and the dismantled derivative structures that have held the USDollar, the USTBond, and crude oil together. Both Japan and China have halted USTBond purchases. Now Germany is shedding USTBonds in favor of RMB-based sovereign bonds. They talk little of adding gold bullion, since such news cannot be cited in the Western press by fascist fiat rules. Such might be deemed financial terrorism by the Washington fascists. The straw dog argument should always be noted, then dismissed as absurd. Critics claim that there is inadequate Gold & Silver supply to match the rising money supply, the monetary aggregate. They claim the money growth was necessary and urgent in order to manage the global financial crisis that they created in 2007 and 2008. Hokum! There is plenty of Gold & Silver to cover the huge amount of money growth in the last several years, provided the precious metals prices are multiples higher. It is coming like day follows night, as the banker cabal cannot hold back the coiled spring.

The rise of the non-USD platforms is very powerful and gaining enormous momentum. While the United States is busy igniting wars like in Ukraine, Syria, Djibouti, Yemen, with furtive efforts to engage armed conflict in more nations like Iran, North Korea, and the South China Sea, the Eastern Hemisphere has gone on strike with respect to the King Dollar Court and its not so hidden war of terror in the currency defense. The lost global currency reserve is near, the movement having gained momentum in the last two years. It seems the eastern response to the Ukraine War plus the Iran squabbles, has been to build non-USD platforms and to construct workarounds for the feeble sanctions. See the Jackass article from December on the topic, entitled “The Integrated Non-Dollar Platforms” (HERE). Clearly the United States is using war to defend the USDollar, a development which will not stand and cannot continue. When the Jackass made the war defense forecast back in 2005, it was considered foolish and silly. Not anymore! The rebellion from the East will be coordinated, broadbased, and severe in its effect. The paper mache armor constructed by the fascist tagteam of the USFed and USDept Treasury cannot stop a bullet, cannot avoid fire, and cannot serve in the financial war. The rise of non-USD platforms is the battle cry waged against the King Dollar, whose financial war takes place in the global seas of false liquidity poured out by the banker cabal and subservient central bank franchise system.

With a weak economy, gaping $trillion deficits, rigged financial markets, permitted sovereign bond fraud, dependence upon QE inflation, rejected global trade unions, the Eastern resistance is clear. Furthermore, the Belt & Road Initiative, combined with numerous non-USD platforms, signals the united rebellion. The global system will endure fractures with the broader trade payments done outside the USDollar, the rise of the RMB-Oil-Gold contracts in Shanghai, and the upcoming China-Saudi oil purchases in RMB terms. Next on tap is the introduction of the Gold Trade Note, expected to be built atop the Shanghai integrated contracts. The RMB Trading Hubs will also feature Panda Bonds, where foreign entities like the Italian Govt can issue bonds to finance deficits in RMB terms, thus attracting Chinese investment with no currency risk.

Two extremely important developments have captured global attention in the last couple weeks. US allies are buying crude oil in Euro terms, which should enrage Washington. The effect is to bring about a USD index decline and rise of the Euro. It is almost comical, since the European Economy generally is not chugging along with any gusto whatsoever, outside the German border. But the effect is on financial markets, not the economy. The EU will suffer on its export trade, just like in 2009 before the Euro Central Bank caved in to reduce interest rates (a correct Jackass forecast). The second important development is more psychological in its financial warfare. The exposure of gold vaults by Russia and China serves as a challenge to the Untied Socialist States to match the challenge. The USGovt gold reserves are vacant, as Fort Knox serves as a nerve gas warehouse with a couple barrels of old gold coins in the dusty corner. To be sure, the Gold Standard is coming from the Eastern corridor. The Global Paradigm Shift is well along in the great transition. The Gold Trade Note will supplant the USTreasury Bill in trade payment. The CIPS bank transaction system will work around the abused SWIFT system. The vast multi-$trillion cornucopia of Eastern infra-structure projects linked to the Belt & Road Initiative will continue unabated, uninterrupted, and unrivaled in human history.

The global rebellion will take place in the form of trade payment done outside the USDollar, and sharp reductions in USTreasury Bonds held in banking systems. When the USDollar loses the bulk of its global currency reserve status, its privileges and deep advantages will fall away. The people will not recognize the lost reserve factor, but they will surely notice the powerful profound pervasive effects. They will come in the form of price inflation entering the room from the imported channels. They will come in the form of supply shortage from rejection of USTBills in trade payment at port facilities. They will come in the form of social disorder as a result of inflation and shortage. The public response will be a vast torrent to purchase silver in protection, which could become a matter of survival. The more wealthy will prefer to protect their fortunes with gold. In times of great crisis, expect silver to be used to purchase the standard items like food, fuel, and rent. Expect gold to be used to purchase cars, homes, and businesses. The coming crisis from the lost USDollar reserve status is inevitable. It demands preparation. It will mark an important turning point in US history.

Pep Talk On Precious Metals

For those losing faith from multiple years of suppressed Gold & Silver prices, take heart. The Voice responded to a sequence of probing Jackass questions with a firm statement founded in hope, confidence, pointing to a new dawn in financial structures. It is next to impossible to explain to people how things are going to unfold if they do not understand the concept of mal-investment and the difference between currency and money. The ZIRP exhibits the distortions in faulty investments from zero percent money, while QE exhibits the distortions in pure bold rabid inflation. Precious metals are unique, serving as the only true store of value, standard of value and measure of value, besides being a medium of exchange. If one has physical metal stored and understands the inherent control with its direct access at any given moment, it has been and remains the safest way to protect wealth from the current powerful debasement. While people rush into crypto-currencies, they need to realize that crypto-currencies are not crypto-money yet. Once hard asset backed crypto-money is issued, it will be backed by primarily precious metals, structured on the blockchain technology. Crypto-money will wipe the floor with crypto-currencies and $billions will be lost in the process.

Read More @ Silver-Phoenix500.com

Online gold sales showing cryptocurrency sellers likely rushing into precious metals as market severely corrects

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by Kenneth Schortgen, The Daily Economist:

One of the most discussed topics in the alternative financial realm is what might Bitcoin and other cryptocurrency holders do with their sudden fortunes made in the cryptocurrencies.  For early investors in the sector, spending their profits like there is no tomorrow appears to be the ‘song of the day’.
 

Lamborghinis. Diamond-encrusted jewelry fashioned into the shape of the bitcoin logo. Large homes converted into communal living spaces. These are just some of the things that the newly minted bitcoin millionaires of San Francisco spend their fortunes on – well, the comparatively small fragment that they feel comfortable spending. 

In a feature story for the New York Times, longtime tech reporter Nellie Bowles chronicles the lives of some of bitcoin’s earliest and most fanatical devotees. Many of these people – men in their earlier 20s (men control more than 90% of extant bitcoin wealth, the Times notes) – are committed to furthering the “blockchain revolution” that they believe will reshape the world. 

But for now, at least, many of them are hunkered down in living spaces with nicknames like “The crypto castle”, where they’re working on startups and telling anybody who will listen to invest. – Zerohedge

However there is another segment of cryptocurrency investors who appear to be taking their profits and moving into a different safe haven market.  And with a new report out on Jan. 17 that shows that as the cryptocurrencies experience a 50% or more correction, online sales of gold have jumped over 400% during that same period.

Gold coin sales jumped fivefold on Tuesday at one of Europe’s largest online dealers as Bitcoin suffered its biggest selloff since December. 

The company sold almost 30 kilograms, worth $1.2 million in the spot market, director Daniel Marburger said. Bitcoin dropped 23 percent on Tuesday and slid to within $8 of the $10,000 level today. About $300 billion was knocked off the global market for digital assets in the last three days, shaking investors in the nascent market. 

Read More @ TheDailyEconomist.com

GOLD RISES ANOTHER $2.20 UP TO $1338.95/SILVER DOWN 3 CENTS

by Harvey Organ, Harvey Organ Blog:

GOLD AND SILVER WHACKED IN THE ACCESS MARKET/GOLD REGISTERS A REMARKABLE 23,183 EFP CONTRACTS TRANSFERRING FROM THE GOLD COMEX FOR LONDON BASED FORWARDS/SILVER REGISTERS A HUGE 7310 EFP CONTRACT TRANSFERS TO LONDON/MORE SWAMP STORIES

GOLD: $1338.95 UP $2.20

Silver: $17.17 DOWN 3 cents

Closing access prices:

Gold $1327.00

silver: $17.00

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: $1346.38 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME: $1338.80

PREMIUM FIRST FIX: $7.58

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SECOND SHANGHAI GOLD FIX: $1342.50

NY GOLD PRICE AT THE EXACT SAME TIME: $1333.25

Premium of Shanghai 2nd fix/NY:$9.25

SHANGHAI REJECTS NY /LONDON PRICING OF GOLD

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LONDON FIRST GOLD FIX: 5:30 am est $1337.35

NY PRICING AT THE EXACT SAME TIME: $1336.65

LONDON SECOND GOLD FIX 10 AM: $1335.65

NY PRICING AT THE EXACT SAME TIME. $1335.00

For comex gold:

JANUARY/

NUMBER OF NOTICES FILED TODAY FOR JANUARY CONTRACT: 0 NOTICE(S) FOR NIL OZ.

TOTAL NOTICES SO FAR: 449 FOR 44900 OZ (1.3965 TONNES),

For silver:

jANUARY

52 NOTICE(S) FILED TODAY FOR

260,000 OZ/

Total number of notices filed so far this month: 625 for 3,125,000 oz

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Bitcoin: BID $10,088/OFFER $10,193 DOWN $1255 (morning)

 Bitcoin: BID   11,186/OFFER  $11,294 DOWN  $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 RATHER LARGE  3912 contracts from 200,423 FALLING TO 196,511 DESPITE YESTERDAY’S 5 CENT RISE IN SILVER PRICING.  WE HAD CONSIDERABLE COMEX LIQUIDATION BUT WITHOUT A DOUBT WE WITNESSED ANOTHER FAILED MAJOR BANK SHORT- COVERING OPERATION YESTERDAY AS SPECS CONTINUE TO POUR IT ON. NOT ONLY THAT , WE WERE AGAIN NOTIFIED THAT WE HAD ANOTHER GIGANTIC SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:  7310 EFP’S FOR MARCH AND ZERO FOR OTHER MONTHS  AND THUS TOTAL ISSUANCE OF 7310 CONTRACTS. HOWEVER THE MOVEMENT ACROSS TO LONDON IS NOT AS SEVERE AS IN GOLD AS THERE SEEMS TO BE  MAJOR PLAYERS WILLING TO TAKE ON THE BANKS AT THE COMEX. STILL, WITH THE TRANSFER OF 7310 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. 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 JANUARY:

31,554 CONTRACTS (FOR 12 TRADING DAYS TOTAL 31,554 CONTRACTS OR 157.770 MILLION OZ: AVERAGE PER DAY: 2629 CONTRACTS OR 13.147 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH:  157.77 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 22.5% OF ANNUAL GLOBAL PRODUCTION

RESULT: A LARGE SIZED LOSS IN OI COMEX DESPITE THE GOOD 5 CENT RISE IN SILVER PRICE WHICH USUALLY INDICATES ANOTHER FAILED BANKER SHORT-COVERING. WE ALSO HAD A HUGE SIZED EFP ISSUANCE OF 7310 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX . FROM THE CME DATA 7310 EFP’S WERE ISSUED FOR TODAY  FOR A DELIVERABLE FORWARD CONTRACT OVER IN LONDON WITH A FIAT BONUS. WE REALLY GAINED 3398 OI CONTRACTS i.e. 7310 open interest contracts headed for London (EFP’s) TOGETHER WITH A DECREASE OF 3912  OI COMEX CONTRACTS. AND ALL OF THIS HAPPENED WITH THE RISE IN PRICE OF SILVER OF 5 CENTS AND A CLOSING PRICE OF $17.20 WITH RESPECT TO YESTERDAY’S TRADING. YET WE STILL HAVE A GOOD AMOUNT OF SILVER STANDING AT THE COMEX.

In ounces AT THE COMEX, the OI is still represented by just UNDER 1 BILLION oz i.e. 0.9860 BILLION TO BE EXACT or 141% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT JANUARY MONTH/ THEY FILED: 52 NOTICE(S) FOR 260,000 OZ OF SILVER

In gold, the open interest ROSE BY A CONSIDERABLE 7341 CONTRACTS UP TO 582,333 WITH THE SOLID  RISE IN PRICE OF GOLD WITH YESTERDAY’S TRADING ($2.30).  IN ANOTHER HUGE DEVELOPMENT, WE RECEIVED THE TOTAL NUMBER OF GOLD EFP’S ISSUED TUESDAY FOR WEDNESDAY AND IT TOTALED A GIGANTIC SIZED  23,183 CONTRACTS OF WHICH THE MONTH OF FEBRUARY SAW 23,183 CONTRACTS AND APRIL SAW THE ISSUANCE OF 0 CONTRACTS   The new OI for the gold complex rests at 582,333. DEMAND FOR GOLD INTENSIFIES GREATLY AS WE CONTINUE TO WITNESS A HUGE NUMBER OF EFP TRANSFERS TOGETHER WITH THE MASSIVE INCREASE IN GOLD COMEX OI  TOGETHER WITH  THE TOTAL AMOUNT OF GOLD OUNCES STANDING FOR JANUARY COMEX. 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 (BIG RISE IN BOTH GOFO AND SIFO) AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES. IN ESSENCE WE HAVE ANOTHER MONSTROUS GAIN OF 30,530 OI CONTRACTS: 7341 OI CONTRACTS INCREASED AT THE COMEX AND AN ATMOSPHERIC SIZED  23,183 OI CONTRACTS WHICH NAVIGATED OVER TO LONDON.

YESTERDAY, WE HAD 7163 EFP’S ISSUED.

ACCUMULATION OF EFP’S/ GOLD(EXCHANGE FOR PHYSICAL) FOR THE MONTH OF JANUARY STARTING WITH FIRST DAY NOTICE: 121,948 CONTRACTS OR 12,194 MILLION OZ OR 379.31 TONNES(12 TRADING DAYS AND THUS AVERAGING: 10,162 EFP CONTRACTS PER TRADING DAY OR 1,016,200 OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS :   SO FAR THIS MONTH IN 12 TRADING DAYS: IN  TONNES: 379 TONNES

TOTAL ANNUAL GOLD PRODUCTION, 2017, THROUGHOUT THE WORLD EX CHINA EX RUSSIA: 2200 TONNES

THUS EFP TRANSFERS REPRESENTS 379/2200 TONNES =  17.22% OF GLOBAL ANNUAL PRODUCTION SO FAR IN JANUARY ALONE.

Result: A HUGE SIZED INCREASE IN OI AT THE COMEX WITH THE SMALL  RISE IN PRICE IN GOLD TRADING ON YESTERDAY ($2.30). WE HAD ANOTHER ATMOSPHERIC SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 23,183. THERE OBVIOUSLY DOES NOT SEEM TO BE MUCH PHYSICAL GOLD AT THE COMEX AND YET WE ALSO OBSERVED A HUGE DELIVERY MONTH FOR THE 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 23,183 EFP CONTRACTS ISSUED, WE HAD A NET GAIN IN OPEN INTEREST OF 30,530 contracts ON THE TWO EXCHANGES:

23.183 CONTRACTS MOVE TO LONDON AND  7341 CONTRACTS INCREASED AT THE COMEX. (in tonnes, the gain in total oi equates to 100.40 TONNES)

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

With gold up again today, we had no changes in inventory from the GLD:

Inventory rests tonight: 828.96 tonnes.

SLV/ 

NO CHANGES IN SILVER INVENTORY AT THE SLV/

INVENTORY RESTS AT 316.348 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 3912 contracts from 200,423 DOWN TO 196,511 (AND now A LITTLE FURTHER FROM THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) DESPITE  THE FAIR SIZED RISE IN PRICE OF SILVER TO THE TUNE OF 5 CENTS WITH RESPECT TO  YESTERDAY’S TRADING.  WE HAD WITHOUT A DOUBT ANOTHER FAILED  SHORT COVERING FROM OUR BANKERS AS THEY HAVE CAPITULATED. NOT ONLY THAT BUT OUR BANKERS USED THEIR EMERGENCY PROCEDURE TO ISSUE ANOTHER GIGANTIC 7310 PRIVATEEFP’S FOR MARCH (WE DO NOT GET A LOOK AT THESE CONTRACTS AS IT IS PRIVATE BUT THE CFTC DOES AUDIT THEM) AND 0 EFP’S FOR ALL OTHER MONTHS .  EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON. WE HAD SOME COMEX SILVER COMEX LIQUIDATION. IF WE TAKE THE  OI LOSS AT THE COMEX OF 3912 CONTRACTS TO THE 7310 OITRANSFERRED TO LONDON THROUGH EFP’S WE OBTAIN A GAIN OF 3398 OPEN INTEREST CONTRACTS IN CONJUNCTION WITH ANOTHER FAILED  BANKER SHORT COVERING. WE STILL HAVE A GOOD AMOUNT OF SILVER OUNCES THAT ARE STANDING FOR METAL IN JANUARY (SEE BELOW). THE NET GAIN TODAY IN OZ ON THE TWO EXCHANGES: 16.99 MILLION OZ!!!

RESULT: A STRONG SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE SMALL RISE OF 5 CENTS IN PRICE (WITH RESPECT TO YESTERDAY’S TRADING). BUT WE ALSO HAD ANOTHER 7310 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE GOOD  SIZED AMOUNT OF SILVER OUNCES STANDING FOR JANUARY, DEMAND FOR PHYSICAL SILVER INTENSIFIES AS WE WITNESS MAJOR BANK SHORT COVERING ACCOMPANIED BY INCREASES IN GOFO AND SIFO RATES INDICATING SCARCITY.

(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 8.07 points or 0.24% /Hang Sang CLOSED UP 78.66 pts or 0.25% / The Nikkei closed DOWN 83.47 POINTS OR 0.35%/Australia’s all ordinaires CLOSED DOWN 0.51%/Chinese yuan (ONSHORE) closed WELL UP at 6.4348/Oil UP to 63.48 dollars per barrel for WTI and 68.74 for Brent. Stocks in Europe OPENED ALL RED.   ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.4348. OFFSHORE YUAN CLOSED DOWN AGAINST  THE ONSHORE YUAN AT 6.4364 //ONSHORE YUAN MUCH STRONGER AGAINST THE DOLLAR/OFF SHORE SLIGHTLY WEAKER TO THE DOLLAR/. THE DOLLAR (INDEX) IS  MUCH STRONGER AGAINST ALL MAJOR CURRENCIES. CHINA IS VERY  HAPPY TODAY.(GOOD MARKETS )

 

Read More @ HarveyOrganBlog.com

Why Gold – The Science Behind Gold

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by Roy Sebag, GoldMoney:

Goldmoney’s mission is to provide global access to gold for secure savings and transactions, making an extraordinary element useful and empowering again.

Technology and progress are essentially a history of experiments with elements, and of experiments in cooperation.

At Goldmoney we believe that cooperation and saving in gold as a unit of elemental-measurement promotes a more equitable distribution of wealth and opportunity, and aligns prosperity within the natural limits of our planet. In an age of rapid change and limited opportunities for secure savings, we contend that saving in gold can empower individuals and foster cooperation.

By reexamining the elemental properties of gold, it becomes clear that gold provides a globally neutral, natural unit of account in relation to all other elements required by humans. The scientific properties of gold in our natural and human systems reconciled independently over thousands of years. We ask you to consider an alternative view of gold’s usefulness, one absent the emotive politics of money, fear and greed.
 

Elements, Oxygen, Time

  • Everything known to exist in the universe, on this planet, and even life itself can be broken down to 92 naturally-occurring elements, the basic building blocks of everything.
     
  • The elements, or combinations of elements (compounds) most desired by humans become known as natural resources, or natural resource commodities. All industry on planet earth, from farming to manufacturing to technology is based on the consumption of these resources; agricultural, fishing and forestry products, hydrocarbon energy sources, and metals.
     
  • Oxygen is the third most abundant element and enables life, but also reacts with many of the compounds we require, eventually destroying these resources through cycles. Over time, oxygen causes nearly every commodity to rot, tarnish, rust, or oxidize, establishing an expiration date or finite life for most of the things we consume.
     

The finite life of most compounds means that we cannot save what we need to survive beyond a limited period of time.
 

Gold – The Rarest, Immortal Commodity

  • Of the 92 naturally occurring elements, eight are known as the “noble metals”. The elemental particles making up these eight elements are organized in a manner that makes them unreactive with air, or “immortal” as pure elements. Put differently, the oxygen, carbon dioxide, and gases that make up our air have no tarnishing effect on these elements through the life cycles of humans.
     
  • Of the eight noble metals, only four became broadly employed as commodities: gold, silver, platinum, and palladium. Of the four, gold is the rarest on earth and visually discernible due to its color and purity.
     
  • In day to day life gold is rarely preferred over other basic elements or immediately necessary commodities. Grains are more useful as food, energy sources for heat and transport, industrial metals for shelter, tools, and to distribute electricity and data.
     
  • None of these daily commodities last over long periods of time in their most useful form however; they are costly to store, costly to transport, or costly to reconfigure if they can be repurposed.
     
  • These perishable compounds and commodities do not last throughout the life of an individual either; a younger, physically able person cannot save the essential commodity surpluses for later and less able years.
  •  

Therefore, the storage and movement of the basic elements we need requires cooperation, and gold has been an important part of this cooperation throughout history. We’ll explain how, but first we need to know a little about its cost and value.
 

Opportunity cost and gold

  • Because gold is substantially rarer than the elements and compounds we need to survive, producing gold requires humans to forego production of the more immediately necessary or desired elements or resources.
     
  • As an example of this opportunity cost, humans dig up a ton of average copper-containing rock, and spend all the labor and energy required to break it down, we are able to extract 5,000 grams of copper. For this same effort we would only get 1 gram of gold from a ton of average gold-containing rock.
     
  • Compared to our food and energy resources, we have to exhaust a lot more of these other resources in order to produce gold, all depending on the relative abundance of elements.
     

For this reason gold as an element remains cost-proportional to all other basic resources over time, even if all short term values fluctuate depending on local conditions or immediate needs.
 

Finding value in a unique element

  • Because it requires substantial effort to produce gold, and that we forego alternate uses of near term energy, labor and food to produce it, there must be important uses for it.
     
  • Relative usefulness is defined by the laws of physics, not subjective economics, and gold’s properties and usefulness are significant. Gold doesn’t decay or tarnish in our atmosphere, it conducts energy over long periods of time without breaking down, its density and malleability enable very small amounts of gold to be extremely useful in thin layers or small spaces, and its noble metal properties mean that it doesn’t react with most other elements, meaning that it’s purity, luster and radiance are effortlessly maintained through millennia.
     
  • These elemental properties define gold’s usefulness as a commodity, a commodity whose cost will always remain proportional to the cost of other elements due to the earth’s relative endowment.
     

These are the properties we found most useful during our experiments with the elements, but we learned an even greater use in our experiments with cooperation.

Finding value in an element that transcends time with little cost or effort

  • Cooperation and sharing enable us to produce more for everyone than we could ever achieve individually. Over time this cooperation is essential, otherwise young and old would have no way to survive; there is no way to produce for yourself when young, and no way store essential commodities for an old age. This is the basis of the formation of community.
     
  • The development of cooperation and trust requires a system of accounting for each community’s production. It is wasteful, if not impossible, to bring all perishable goods to one place at one time for trade, and with no ability to redistribute or save a surplus.
     
  • The function of community through sharing therefore requires one of two systems: 1- a complex system of remembering debts and favors, or 2- (preferably) a lasting-intermediate commodity that can be exchanged over and over with very little cost, to be possessed in the interim of exchanges of the essential, immediately useful, but quickly decaying commodities.
     
  • Over thousands of years of experiments, civilizations consistently resolved that gold was the most useful element to possess and trade as an accepted form of value.
     
  • Gold’s elemental properties afford this usefulness, as gold only needs to be produced once but is extremely efficient over time, it can be exchanged perpetually with very little cost compared to the cooperative value it brings.
      

Gold was first a natural resource desired for its elemental properties and usefulness, but one that eventually achieved the more important role of enabling widespread cooperation.
 

Gold is an elemental unit of account and elemental store of value; in the past, present and future

  • Gold’s value as an elemental unit of account and store of value is both scientific and natural, as opposed to economic.

Read More @ GoldMoney.com

HODL! The Crypto Sell-off Storm Will Pass… The Data Tells The REAL Story!

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by SGT, SGT Report.com:

I just read this cogent, insightful analysis from my friend Jean-Claude (it makes me feel well traveled just to say his name), and I wanted to share it with you.  It’s GOOD news for crypto HODL’ers, so here goes…

Loved the interview with Craig. Great job! He made a really good point regarding the futures market. Even if they could take the upper hand with the futures, “They just can’t roll them out fast enough to follow the massive buying interest that can quickly move to other coins”. It is not a feasible/sustainable strategy in my opinion. Time will tell if Clif is correct about them shooting themselves in the foot. 

Ok so take a look at this technical chart for bitcoin:

Bitcoin has completed this ABC re-tracement pattern MANY times before and there was no Futures involved at the time. I am not convinced the futures are having the effect they wanted – but i’m keeping a close eye on it. As with previous instances, the ABC retracement is a buying opportunity. Once, the C is completed, we will never see those prices again. Same was true at 5k, 3k, 1k, 800$ etc.  See chart below.

But the really big story in the above technical chart is the “Massive buy volume” candle at the bottom of the chart. As Craig would say, this is not the shoeshine boy and the taxi driver buying bitcoin. This is big money coming in buying hand over fist. This is happening while exchanges and local BTMs are deliberately bottlenecking the simpletons from getting in on the dips. Coinbase and many other exchanges have limit orders in place and will not let you buy your desired quantity. Local BTMs in Ottawa are charging 45% premiums tonight as i am writing this email!!!  See snap shot below.

So really, at 10k bitcoin, if you want to hold one in your wallet today it will still cost you 14 500$. That is the same thing that happens to silver when it flash crashes and the premiums skyrocket in the “real world” (not in the fake paper game world). You’ll remember it was impossible to buy physical silver at 12$….

Also, another thing to note is that Bitcoin, in just looking at the bitcoin/usd chart for the last 3 years, will show you that it has corrected every year between the 4th and 15th of January. This too, was happening when no futures markets were around. Follow this ling to see the charts. So again, i’m still keeping a close eye on the futures but I don’t think the have a major role to play in this current retracement. 

Knowing and understanding all this gives me the intestinal fortitude to not only HODL but to also “try” best they will let me to buy the dips and to lower my dollar cost average. 

Like Craig and you Sean, i also am a BIG fan of Silver and continue to hold physical as a hedge to my cryptos. 

Love you guys. Keep up the great work!

Jean-Claude

Peak Gold? South Africa Mines Could Be Out of Gold in 39 Years

by Peter Schiff. SchiffGold:

South Africa may run out of gold within four decades, according to the Environmental Economic Accounts Compendium published by African Statistics Day.

Analysts say that at current production levels, South Africa has only 39 years of accessible gold reserves remaining. This is significant considering South Africa ranks as the number five gold producing country in the world, and could be another sign the world is approaching, or has reached “peak gold.”

Peak gold is the point where the amount of gold mined out of the earth will begin to shrink every year, rather than increase, as it has done pretty consistently since the 1970s. During the Denver Gold Forum last September, the World Gold Council chairman said he thinks the world may have already reached that point. And he’s not the only one. Franco-Nevada chairman Pierre Lassonde also expects a significant dip in gold production in the coming years. During an interview with the  German financial newspaper Finanz und Wirtschaft last fall, Lassonde said we’re seeing a significant slowdown in the number of large deposits being discovered.

The big question is how will the industry replace the massive gold mines that have produced large amounts of the yellow metal over the last 130 years or so?

The situation is particularly acute in South Africa.

As a Business Insider article pointed out, large goldfields such as South Africa’s Witwatersrand Basin are nearing the end of their life cycles. More than 40% of all the gold mined in human history came from the Witwatersrand Basin. But annual gold output in South Africa has plummetted. In 1970, South African mines produced 1,000 tons of gold. Since then, production has steadily dropped. The country only produced 167.1 tons in 2016. That represents an 83% drop from the 1970 peak.

The fact they have already dug out most of the easy to reach gold represents one of the biggest challenges facing South African miners. As mining analyst Kobus Neil told MoneyWeb, the deeper the mines go, the further the miner has to travel, which comes with additional costs and safety concerns.

As you dig deeper into the ground, you need a higher gold price to make those resources economical, if there isn’t a favorable gold price, those resources can’t be mined economically.”

Even with gold prices rising, mining companies are having a difficult time coving the higher cost of mining the harder to reach, lower quality deposits of gold left in the earth.

“We continue to try and manage costs in order to ensure the sustainability of the operations. Given the above-inflation increases in wages (approximately 50% of operating costs) and electricity prices (approximately 20% of operating costs), this has been a challenge,” Senior vice president at Sibanye-Stillwater James Wellsted told MoneyWeb.

Read More @ SchiffGold.com

CRYPTOCURRENCIES CRUSHED WITH BITCOIN FALLING TO $10,480

by Harvey Organ, Harvey Organ Blog:

GOLD WITHSTANDS BANKER ATTACK AND RISES $2.30 TO $1336.75/SILVER RISES 5 CENTS TO $17.20/ EFP ISSUANCE FOR GOLD”:7163 CONTRACTS AS THESE MORPH INTO LONDON BASED FORWARDS/SILVER ISSUANCE; 483 CONTRACTS/INTERESTING SWAMP STORIES FOR TODAY

GOLD: $1336.75 UP $2.30

Silver: $17.20 UP 5 cents

Closing access prices:

Gold $1338.50

silver: $17.20

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: $1348.63 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME: $1341.00

PREMIUM FIRST FIX: $7.63

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SECOND SHANGHAI GOLD FIX: $1346.42

NY GOLD PRICE AT THE EXACT SAME TIME: $1339.32

Premium of Shanghai 2nd fix/NY:$7.16

SHANGHAI REJECTS NY /LONDON PRICING OF GOLD

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LONDON FIRST GOLD FIX: 5:30 am est $1334.95

NY PRICING AT THE EXACT SAME TIME: $1334.65

LONDON SECOND GOLD FIX 10 AM: $1333.85

NY PRICING AT THE EXACT SAME TIME. $1333.10

For comex gold:

JANUARY/

NUMBER OF NOTICES FILED TODAY FOR JANUARY CONTRACT: 12 NOTICE(S) FOR 1200 OZ.

TOTAL NOTICES SO FAR: 449 FOR 44900 OZ (1.3965 TONNES),

For silver:

jANUARY

31 NOTICE(S) FILED TODAY FOR

155,000 OZ/

Total number of notices filed so far this month: 573 for 2,865,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: BID $12,319/OFFER $12,429 DOWN $1225 (morning)

 Bitcoin: BID   10,480/OFFER  $10,586 DOWN  $3086(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 3979 contracts from 196,444 RISING TO 200,423 WITH FRIDAY’S 20 CENT RISE IN SILVER PRICING.  WE HAD NO COMEX LIQUIDATION BUT WITHOUT A DOUBT WE WITNESSED ANOTHER FAILED MAJOR BANK SHORT- COVERING OPERATION ON FRIDAY. NOT ONLY THAT , WE WERE AGAIN NOTIFIED THAT WE HAD ANOTHER SMALL SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:  483 EFP’S FOR MARCH AND ZERO FOR OTHER MONTHS  AND THUS TOTAL ISSUANCE OF 483 CONTRACTS. HOWEVER THE MOVEMENT ACROSS TO LONDON IS NOT AS SEVERE AS IN GOLD AS THERE SEEMS TO BE  MAJOR PLAYERS WILLING TO TAKE ON THE BANKS AT THE COMEX. STILL, WITH THE TRANSFER OF 483 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. 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 JANUARY:

24,244 CONTRACTS (FOR 11 TRADING DAYS TOTAL 24,244 CONTRACTS OR 121.220 MILLION OZ: AVERAGE PER DAY: 2204 CONTRACTS OR 11.020 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH:  121.220 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 19.04% OF ANNUAL GLOBAL PRODUCTION

RESULT: A HUGE SIZED GAIN IN OI COMEX WITH THE GOOD 20 CENT RISE IN SILVER PRICE WHICH USUALLY INDICATES ANOTHER FAILED BANKER SHORT-COVERING. WE ALSO HAD A SMALL SIZED EFP ISSUANCE OF 483 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON AS FORWARDS. SPECULATORS WERE MORE INTERESTED IN ATTACKING THE SILVER COMEX INSTEAD OF MOVING THEIR LONGS TO LONDON. FROM THE CME DATA 484 EFP’SWERE ISSUED FOR TODAY  FOR A DELIVERABLE FORWARD CONTRACT OVER IN LONDON WITH A FIAT BONUS. WE REALLY GAINED 4462 OI CONTRACTS i.e. 483 open interest contracts headed for London (EFP’s) TOGETHER WITH A INCREASE OF 3979  OI COMEX CONTRACTS. AND ALL OF THIS HAPPENED WITH THE RISE IN PRICE OF SILVER OF 20 CENTS AND A CLOSING PRICE OF $17.15 WITH RESPECT TO FRIDAY’S TRADING. YET WE STILL HAVE A GOOD 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. 1.0020 BILLION TO BE EXACT or 140% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT JANUARY MONTH/ THEY FILED: 31 NOTICE(S) FOR 155000 OZ OF SILVER

In gold, the open interest ROSE BY A CONSIDERABLE 10,992 CONTRACTS UP TO 574,992 WITH THE SOLID  RISE IN PRICE OF GOLD WITH FRIDAY’S TRADING ($11.65). IT LOOKS LIKE OUR BANKERS STARTED TO COVER THEIR GOLD SHORTS IN A SIMILAR FASHION TO WHAT WE ARE WITNESSING IN SILVER. IN ANOTHER HUGE DEVELOPMENT, WE RECEIVED THE TOTAL NUMBER OF GOLD EFP’S ISSUED FRIDAY FOR MONDAY AND IT TOTALED A GOOD SIZED  7163 CONTRACTS OF WHICH THE MONTH OF FEBRUARY SAW 7163 CONTRACTS AND APRIL SAW THE ISSUANCE OF 0 CONTRACTS   The new OI for the gold complex rests at 574,992. DEMAND FOR GOLD INTENSIFIES GREATLY AS WE CONTINUE TO WITNESS A HUGE NUMBER OF EFP TRANSFERS TOGETHER WITH THE MASSIVE INCREASE IN GOLD COMEX OI  TOGETHER WITH  THE TOTAL AMOUNT OF GOLD OUNCES STANDING FOR JANUARY COMEX. 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 (BIG RISE IN BOTH GOFO AND SIFO) AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES. IN ESSENCE WE HAVE ANOTHER GOOD GAIN OF 18,155 OI CONTRACTS: 10,992 OI CONTRACTS INCREASED AT THE COMEX AND A GOOD SIZED 7163 OI CONTRACTS WHICH NAVIGATED OVER TO LONDON.

FRIDAY, WE HAD 11170 EFP’S ISSUED.

ACCUMULATION OF EFP’S/ GOLD(EXCHANGE FOR PHYSICAL) FOR THE MONTH OF JANUARY STARTING WITH FIRST DAY NOTICE: 98,765 CONTRACTS OR 9.8765 MILLION OZ OR 307.20 TONNES (11 TRADING DAYS AND THUS AVERAGING: 8,978 EFP CONTRACTS PER TRADING DAY OR 8,978 OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS :   SO FAR THIS MONTH IN 11 TRADING DAYS: IN  TONNES: 307 TONNES

TOTAL ANNUAL GOLD PRODUCTION, 2017, THROUGHOUT THE WORLD EX CHINA EX RUSSIA: 2200 TONNES

THUS EFP TRANSFERS REPRESENTS 307/2200 TONNES =  13.95% OF GLOBAL ANNUAL PRODUCTION SO FAR IN JANUARY ALONE.

Result: A CONSIDERABLE SIZED INCREASE IN OI AT THE COMEX DESPITE THE SOLID  RISE IN PRICE IN GOLD TRADING ON YESTERDAY ($11.65). WE HAD ANOTHER FAIR SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 7163. THERE OBVIOUSLY DOES NOT SEEM TO BE MUCH PHYSICAL GOLD AT THE COMEX AND YET WE ALSO OBSERVED A HUGE DELIVERY MONTH FOR THE 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 7163 EFP CONTRACTS ISSUED, WE HAD A NET GAIN IN OPEN INTEREST OF 18,155 contracts ON THE TWO EXCHANGES:

7163 CONTRACTS MOVE TO LONDON AND  10,992 CONTRACTS INCREASED AT THE COMEX. (in tonnes, the gain in total oi equates to 56.47 TONNES)

we had: 12 notice(s) filed upon for 1200 oz of gold.

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

GLD

With gold up again today, we had no changes in inventory from the GLD:

Inventory rests tonight: 828.96 tonnes.

SLV/ 

NO CHANGES IN SILVER INVENTORY AT THE SLV/

INVENTORY RESTS AT 316.348 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 A CONSIDERABLE 3979 contracts from 196,444 UP TO 200,423 (AND now A LITTLE CLOSER TO THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) WITH  THE GOOD RISE IN PRICE OF SILVER TO THE TUNE OF 20 CENTS WITH RESPECT TO  FRIDAY’S TRADING.  WE HAD WITHOUT A DOUBT ANOTHER FAILED  SHORT COVERING FROM OUR BANKERS AS THEY HAVE CAPITULATED.HOWEVER THIS TIME THEY WERE JOINED BY GOLD. NOT ONLY THAT BUT OUR BANKERS USED THEIR EMERGENCY PROCEDURE TO ISSUE ANOTHER SMALL 483 PRIVATE EFP’S FOR MARCH (WE DO NOT GET A LOOK AT THESE CONTRACTS AS IT IS PRIVATE BUT THE CFTC DOES AUDIT THEM) AND 0 EFP’S FOR ALL OTHER MONTHS .  EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON. WE HAD NO COMEX SILVER COMEX LIQUIDATION. IF WE TAKE THE  OI GAIN AT THE COMEX OF 43979 CONTRACTS TO THE 483 OITRANSFERRED TO LONDON THROUGH EFP’S WE OBTAIN A GAIN OF 4462 OPEN INTEREST CONTRACTS IN CONJUNCTION WITH ANOTHER FAILED  BANKER SHORT COVERING. WE STILL HAVE A GOOD AMOUNT OF SILVER OUNCES THAT ARE STANDING FOR METAL IN JANUARY (SEE BELOW). THE NET GAIN TODAY IN OZ ON THE TWO EXCHANGES: 22.31 MILLION OZ!!!

RESULT: A STRONG SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE SOLID RISE OF 20 CENTS IN PRICE (WITH RESPECT TO FRIDAY’S TRADING). BUT WE ALSO HAD ANOTHER 483 EFP’S ISSUEDTRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE GOOD  SIZED AMOUNT OF SILVER OUNCES STANDING FOR JANUARY, DEMAND FOR PHYSICAL SILVER INTENSIFIES AS WE WITNESS MAJOR BANK SHORT COVERING ACCOMPANIED BY INCREASES IN GOFO AND SIFO RATES INDICATING SCARCITY.

(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 26.11 points or 0.77% /Hang Sang CLOSED UP 565.88 pts or 1.87% / The Nikkei closed UP 236.93 POINTS OR 1.00%/Australia’s all ordinaires CLOSED DOWN 0.35%/Chinese yuan (ONSHORE) closed WELL UP at 6.4422/Oil UP to 63.95 dollars per barrel for WTI and 69.38 for Brent. Stocks in Europe OPENED GREEN EXCEPT LONDON.   ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.4422. OFFSHORE YUAN CLOSED UP AGAINST  THE ONSHORE YUAN AT 6.4388 //ONSHORE YUAN MUCH STRONGER AGAINST THE DOLLAR/OFF SHORE STRONGER TO THE DOLLAR/. THE DOLLAR (INDEX) IS  MUCH WEAKER AGAINST ALL MAJOR CURRENCIES. CHINA IS STILL  HAPPY TODAY.(GOOD MARKETS )

Read More @ HarveyOrganBlog.com

“Harry’s Dented logic” revisited – Bill Holter

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by Bill Holter, Miles Franklin:

I believe I have written a couple of times in the past regarding Harry Dent’s “dented logic”. I did so after reading fearful e-mails from holders of gold and silver. Well, Harry Dent is at it again. He has advertisements everywhere, the latest posing as an “article” on Zerohedge where he says gold will be crushed to $700 in a market panic.

He claims a financial and market meltdown is coming to which I wholeheartedly agree because the math not only supports this, it guarantees it at some point. The problem is this, he is trying to scare anyone and everyone he can AWAY from gold by claiming gold will trade to down to $700 and maybe even $250!

First, if gold were to “trade” down to $700, it would solely be traded at that price on paper exchanges and virtually no physical gold would ever change hands at the “exchange prices”. We saw this in 2008 when gold and silver prices were crashed on the COMEX and LBMA. For example, silver was quoted at around $9 an ounce …but the problem for buyers was they could not find much of any real physical silver available for under $15! Before going further, I should mention it is a distinct possibility that paper prices do actually collapse for the simple reason they are only “contracts” and not actually metal. As Jim has long asked, “what is the value of a contract that cannot perform”? The answer of course is zero, and this is exactly where contracts that cannot deliver real metal should approach.

The core flaw to Dent’s logic is that “deflation” will take hold and he claims gold will go down in a deflationary scenario. History does not support this. In fact, “cash” has always been THE best place to be during credit liquidations (deflation). Since the advent of paper currencies, until today’s fiat experiment, most all paper currencies were “backed” by gold. Looking back to the 1930’s deflation, gold not only did not “go down”, it skyrocketed versus almost all everyday goods, wages, and assets …AND was revalued over 70% higher versus dollars! Both Dent and Martin Armstrong claim the dollar was THE best performing asset in the 1930’s, this is simply not true. Yes it was a good thing to have “dollars” (liquidity), but it was far better (70% better) to have gold.

As I have said in the past many times, today’s dollar is not your grandfather’s dollar. In fact, it is actually the opposite! To explain, back in the day, gold and dollars were interchangeable at a rate of $20.6. In other words, you could walk into a bank with $20.67 and walk out with a one ounce Liberty or vice versa. In short, dollars were “backed by gold” because they were interchangeable. Today, the dollar is not backed by anything. Yes it can be said it is backed by the full faith and credit of the U.S. …or even “mandated” by the U.S. military.

The fatal flaw in the thought the U.S. dollar will be the “safe haven” is believing the “value” to gold was a backing BY the dollar when in fact it was the reverse. What Harry Dent, Armstrong and others would have you believe is scrip, issued by a mathematically bankrupt issuer is “real and safe money”. Nothing could be further from the truth. Gold has been the backing to paper monies going back hundred’s of years. Each time it was discovered there was not enough gold to back the quantity of paper outstanding …the paper failed! This phenomenon has taken longer in today’s world via the use of financial engineering and “credit” to hide the reality, but the reality still lurks and will burst forth on a global basis rather than just regional as in the past. Without going into a full article, the world today is engulfed in the greatest credit bubble in history …fueled by the greatest money printing in history …U.S. DOLLARS!

Read More @ MilesFranklin.com