Thursday, August 13, 2020

HUGE VOLATILE DAY: YOUR KEY INDICATORS PREDICTING TROUBLE AHEAD: USA 10 YR TREASURY BOND YIELD: 2.85612

by Harvey Organ, Harvey Organ Blog:

CLOSING PRICE OF VIX: 28.85 BOTH AT DANGEROUS LEVELS/GOLD DOWN $4.70 TO $1312.60/SILVER DOWN 18 CENTS TO $16.20/USA PASSES A 2 YR BUDGET DEAL WHICH WILL ADD 2 TRILLION DOLLARS TO ITS DEFICIT/MOODY’S WARNS THE USE THAT IT MIGHT DOWNGRADE USA DEBT/CHINA ANNOUNCES THAT IT WILL COMMENCE ITS OIL YUAN CONTRACT SHORTLY AS WELL AS THE FUTURES CONTRACT WHICH WILL BEGIN ON MARCH 23.

GOLD: $1312.60 DOWN $4.70

Silver: $16.20 DOWN 18 cents

Closing access prices:

Gold $1316.80

silver: $16.36

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: $1329.50 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME: $1318.00

PREMIUM FIRST FIX: $9.80

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SECOND SHANGHAI GOLD FIX: $1329.52

NY GOLD PRICE AT THE EXACT SAME TIME: $1320.25

Premium of Shanghai 2nd fix/NY:$9.27

SHANGHAI REJECTS  NY /LONDON PRICING OF GOLD

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LONDON FIRST GOLD FIX: 5:30 am est $1316.05

NY PRICING AT THE EXACT SAME TIME: $1315.80

LONDON SECOND GOLD FIX 10 AM: $1314.10

NY PRICING AT THE EXACT SAME TIME. $1314.20

For comex gold:

FEBRUARY/

NUMBER OF NOTICES FILED TODAY FOR FEBRUARY CONTRACT: 141 NOTICE(S) FOR 14100 OZ.

TOTAL NOTICES SO FAR:1733 FOR 173300 OZ (5.3903 TONNES),

For silver:

jANUARY

0 NOTICE(S) FILED TODAY FOR

nil OZ/

Total number of notices filed so far this month: 199 for 995,000 oz

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Bitcoin: BID $8297/OFFER $8368: up $93(morning)

Bitcoin: BID/ $8311/offer $8381: UP $107  (CLOSING/5 PM)

 

end

 

FOR THOSE OF YOU WHO THINK THAT MARKETS ARE NOT MANIPULATED, I HAVE A WONDERFUL PIECE OF PROPERTY IN THE EVERGLADES TO SELL

 

TODAY, THE MANIPULATION WAS SO OBVIOUS.

Let us have a look at the data for today\

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In silver, the total open interest FELL BY A HUGE SIZED 9371 contracts from 202,505  FALLING TO 193,135 DESPITE  YESTERDAY’S SMALL 8 CENT GAIN IN SILVER PRICING.  WE  HAD CONSIDERABLE COMEX LIQUIDATION. HOWEVER, WE WERE AGAIN NOTIFIED THAT WE HAD ANOTHER HUGE SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:  3215 EFP’S FOR MARCH AND AND 0 EFP’S FOR MAY AND ZERO FOR ALL  OTHER MONTHS  AND THUS TOTAL ISSUANCE OF 3215 CONTRACTS.  WITH THE TRANSFER OF 3215 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. THE 3215 CONTRACTS TRANSLATES INTO 16.08 MILLION OZ.  WITH THE HUGE DROP IN OPEN INTEREST AT THE COMEX. WE SHOULD EXPECT BIGGER GAINS IN EFP TRANSFERS IN THE NEXT FEW DAYS WITH THE LARGE LOSS AT THE COMEX AS LONGS GAVE UP SEEKING METAL AT THIS EXCHANGE.

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

24,531 CONTRACTS (FOR 8 TRADING DAYS TOTAL 24,531 CONTRACTS OR 122.655 MILLION OZ: AVERAGE PER DAY: 3066 CONTRACTS OR 15.331 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH:  122.655 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 17.5% OF ANNUAL GLOBAL PRODUCTION

ACCUMULATION IN YEAR 2018 TO DATE SILVER EFP’S:  357.59 MILLION OZ.

ACCUMULATION FOR JAN 2018: 236.879 MILLION OZ

RESULT: A HUGE SIZED LOSS IN OI SILVER COMEX DESPITE THE SMALL  8 CENT GAIN IN SILVER PRICE.  WE HOWEVER HAD A GOOD SIZED EFP ISSUANCE OF 3215 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 FOR PHYSICAL SILVER . FROM THE CME DATA 3214 EFP’S  FOR  MONTHS MARCH AND MAY WERE ISSUED FOR TODAY  FOR A DELIVERABLE FORWARD CONTRACT OVER IN LONDON WITH A FIAT BONUS.  WITH YESTERDAY’S TRADING WE LOST  6156 OI CONTRACTS i.e. 3215 open interest contracts headed for London (EFP’s) TOGETHER WITH A DECREASE OF 9371  OI COMEX CONTRACTS. AND ALL OF THIS HAPPENED WITH THE SMALL RISE IN PRICE OF SILVER OF  8 CENTS AND A CLOSING PRICE OF $16.38 WITH RESPECT TO YESTERDAY’S TRADING. YET WE STILL HAVE A FAIR 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. 0.965 BILLION TO BE EXACT or 138% of annual global silver production (ex Russia & ex China).

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

In gold, the open interest FELL  BY ANOTHER CONSIDERABLE 7,499 CONTRACTS DOWN TO 519,362  DESPITE THE GOOD SIZED RISE IN PRICE OF GOLD WITH YESTERDAY’S TRADING ($5.20).HOWEVER, IN ANOTHER DEVELOPMENT, WE RECEIVED THE TOTAL NUMBER OF GOLD EFP’S ISSUED FOR TODAY AND IT TOTALED A HUGE SIZED  14,716 CONTRACTS OF WHICH  APRIL SAW THE ISSUANCE OF 14,716 CONTRACTS AND  JUNE SAW THE ISSUANCE OF 0 CONTRACTS AND THEN ALL OTHER MONTHS ZERO.    The new OI for the gold complex rests at 517,708. ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. 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 FEBRUARY 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 TODAY DESPITE YESTERDAY’S TRADING IN GOLD,  WE HAVE A GAIN OF 7217  CONTRACTS: 7499 OI CONTRACTS DECREASED AT THE COMEXAND A STRONG SIZED  14,716 OI CONTRACTS WHICH NAVIGATED OVER TO LONDON.(7219 oi gain in CONTRACTS EQUATES TO 22.45 TONNES)

YESTERDAY, WE HAD 13,622 EFP’S ISSUED.

ACCUMULATION OF EFP’S/ GOLD(EXCHANGE FOR PHYSICAL) FOR THE MONTH OF FEBRUARY STARTING WITH FIRST DAY NOTICE: 91,370 CONTRACTS OR 9,137,000  OZ OR 284.19 TONNES (8 TRADING DAYS AND THUS AVERAGING: 11,421 EFP CONTRACTS PER TRADING DAY OR 1,142,100 OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS :   SO FAR THIS MONTH IN 8 TRADING DAYS: IN  TONNES: 284.19 TONNES

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

THUS EFP TRANSFERS REPRESENTS 284.19/2200 x 100% TONNES =  12.91% OF GLOBAL ANNUAL PRODUCTION SO FAR IN FEBRUARY ALONE.

ACCUMULATION OF GOLD EFP’S YEAR 2018 TO DATE:  917.72 TONNES

ACCUMULATION OF GOLD EFP’S FOR JANUARY 2018: 653.22  TONNES

Result: A  HUGE SIZED DECREASE IN OI AT THE COMEX DESPITE THE GOOD SIZED RISE IN PRICE IN GOLD TRADING YESTERDAY ($5.20). IT IS WITHOUT A DOUBT THAT MANY OF THE DEPARTED COMEX LONGS  RECEIVED THEIR PRIVATE EFP CONTRACT  FOR EITHER  APRIL OR JUNE. HOWEVER, WE HAD ANOTHER GOOD SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 14,716 AS THESE HAVE ALREADY BEEN NEGOTIATED AND CONFIRMED.   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 14,716 EFP CONTRACTS ISSUED, WE HAD A NET GAIN IN OPEN INTEREST OF 7217 contracts ON THE TWO EXCHANGES:

14,716 CONTRACTS MOVE TO LONDON AND  7499 CONTRACTS DECREASED AT THE COMEX. (in tonnes, the GAIN in total oi equates to 22.45 TONNES).

we had: 141 notice(s) filed upon for 14100 oz of gold.

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

GLD

WITH TODAY’S TURMOIL, THE CROOKS WITHDREW ANOTHER 2 TONNES OF GOLD FROM THE GLD/INVENTORY RESTS AT 826.31

Inventory rests tonight: 826.31 tonnes.

SLV/

NO CHANGES IN SILVER INVENTORY AT THE SLV/ AGAIN WITH TODAY’S TURMOIL   NO CHANGE IN INVENTORY

/INVENTORY RESTS AT 314.045 MILLION OZ/

can someone please explain why GLD behaves differently to SLV????

end

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

1. Today, we had the open interest in silver FELL BY A GIGANTIC 9371 contracts from 202,506 DOWN TO 193,135 (AND now A LITTLE FURTHER TO THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) DESPITE  THE GOOD SIZED  RISE  IN PRICE OF SILVER  (8 CENTS WITH RESPECT TO  YESTERDAY’S TRADING).   OUR BANKERS USED THEIR EMERGENCY PROCEDURE TO ISSUE ANOTHER GOOD 3215 PRIVATE EFP’S FOR MARCH AND 0 EFP CONTRACTS OR MAY  (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  9371 CONTRACTS TO THE 3215 OI TRANSFERRED TO LONDON THROUGH EFP’S, SURPRISINGLY WE OBTAIN A LOSS OF 6156  OPEN INTEREST CONTRACTS DESPITE YESTERDAY’S GAIN IN SILVER PRICE.  WE STILL HAVE A GOOD AMOUNT OF SILVER OUNCES THAT ARE STANDING FOR METAL IN JANUARY (SEE BELOW). THE NET LOSS TODAY IN OZ ON THE TWO EXCHANGES:  30.78 MILLION OZ!!!

RESULT: A HUMONGOUS SIZED DECREASE IN SILVER OI AT THE COMEX DESPITE THE GOOD SIZED RISE OF 8 CENTS IN PRICE (WITH RESPECT TO YESTERDAY’S TRADING ). BUT WE ALSO HAD ANOTHER GOOD 3215 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE GOOD  SIZED AMOUNT OF SILVER OUNCES STANDING FOR FEBRUARY, 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 THURSDAY night/FRIDAY morning: Shanghai closed DOWN 132.19 points or 4.05% /Hang Sang CLOSED DOWN 943.85 or 3.10% / The Nikkei closed DOWN 508,24 POINTS OR 2.32%/Australia’s all ordinaires CLOSED DOWN 0.96%/Chinese yuan (ONSHORE) closed UP at 6.3041/Oil DOWN to 60.47 dollars per barrel for WTI and 64.30 for Brent. Stocks in Europe OPENED DEEPLY IN THE RED .   ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.3040. OFFSHORE YUAN CLOSED DOWN AGAINST  THE ONSHORE YUAN AT 6.3244//ONSHORE YUAN A LOT STRONGER AGAINST THE DOLLAR/OFF SHORE A LOT STRONGER TO THE DOLLAR/. THE DOLLAR (INDEX) IS  MUCH STRONGER AGAINST ALL MAJOR CURRENCIES EXCEPT CHINA YUAN.  CHINA IS NOT TOO  HAPPY TODAY.(INTERVENTION STRONGER CURRENCY AND WEAK MARKETS IN CHINA AND THROUGHOUT THE GLOBE

i

Read More @ HarveyOrganBlog.com

The First COMEX Gold Spec Wash of 2018 Is Underway – Craig Hemke (07/02/2018)

0

by Craig Hemke, Sprott Money:

Back on January 18, we wrote a post predicting that another pullback in gold prices was on the horizon. Here’s the link: https://www.sprottmoney.com/Blog/comex-open-intere…

In that post, we projected this latest price swoon based upon the experience of watching net positions expand and contract on the COMEX. The chart below was drawn up that day, but w’ve added the most recent peak, which came a week later:

Just as in 2016 and 2017, 2018 began with a 10% rally off of a December FOMC rate hike. And just as in 2016 and 2017, we are now in a period of consolidation:

In 2016, COMEX gold moved sideways to gradually higher from February to June. Last year, the same pattern played out from February to July. Will we see a repeat in 2018? Probably—but not identical. Instead, expect the pullbacks to be shallower and the peaks marginally higher. The dominant chart is still the weekly one with the big smiley face or bowl. Here it is again for your viewing pleasure:

Obviously, the symmetry is impressive. But it doesn’t show a breakout coming until July or August. So, as in 2017, we must expect a series of highs and lows—CoT buildups and CoT washes—until a breakout finally comes this summer.

Until then, expect the dollar to remain generally weak with a range-bound USDJPY, too. Maybe we’ll be wrong about this part, but why would we reasonably expect much else?

And then the fun really starts in the second half of the year. That’s when we expect our Three Themes of 2018 to push to the forefront: https://www.sprottmoney.com/Blog/the-three-major-t…

• Political Risk : Will the Democrats take control of Congress in the November elections, and how soon would they move to impeach Trump in 2019? Regardless, with this election pending, the battles over spending, immigration and debt will only intensify.

• Geo-Political Risk : Hostilities increasing in North Korea, the Middle East and Ukraine.

• De-Dollarization Risk : Somewhat a part of geo-political risk, but this also includes the CNY-Crude and other developments.

How do you manage all of this on a day-to-day basis? With patience.

Read More @ SprottMoney.com

When will the next credit crisis occur?

by Alasdair Macleod, GoldMoney:

The timing of any credit crisis is set by the rate at which the credit cycle progresses. People don’t think in terms of the credit cycle, wrongly believing it is a business cycle. The distinction is important, because a business cycle by its name suggests it emanates from business. In other words, the cycle of growth and recessions is due to instability in the private sector and this is generally believed by state planners and central bankers.

This is untrue, because cycles of business activity have their origin in the expansion and contraction of credit, whose origin in turn is in central banks’ monetary policy and fractional reserve banking. Cycles of credit are then manifest in variations of business activity. Cycles are the cause, booms and slumps the consequence. It follows that if we understand the characteristics of the different phases, we can estimate where we are in the credit cycle. 

With sound money, that is to say money that neither expands nor contracts, cycles in business activity cannot exist, except for plagues and wars which interrupt the balances between money-hoarding, saving and consumption. Any exceptions to this rule are bound to be insignificant and non-cyclical, because with a steady money supply, failures are random instead of cyclically clustered by monetary policy.

Capital is always allocated by entrepreneurs to favour the efficient production of the goods and services wanted by consumers. Allocations of earnings and profits to savings are set by entrepreneurial demands for monetary capital to finance production until the goods and services produced are sold. Failures, the result of errors of judgement by entrepreneurs, are inevitable, but are quickly accepted, and capital is redeployed accordingly. As soon as a non-commercial force, such as the state, corrupts the free market’s interplay between entrepreneurial production and consumer demand, the progression of an economy becomes unbalanced. Variations in the quantity of unbacked money to achieve a managed objective are particularly disruptive. The consequence, not accepted by the vested interests of interventionism, is a cycle of credit expansion leading to a compensating crisis.

This is the outcome of monetary policy. It creates nothing but an illusion of genuine economic activity by debasing the unit of account. In pursuing an objective of economic growth, governments are simply recording the application of the unsound money they and their licensed banks have created. It is our damnosa hereditas, our ruinous inheritance.

The purpose of this article is to establish where we are in the global credit cycle, and to estimate from that the likely time-scale to the next credit crisis. And yes, it is a global phenomenon, made more powerful by global synchronisation of monetary policies through forums such as the G20. Trying to understand where we are in the credit cycle of one particular nation misses out a bigger picture. But we can observe where we are in it by assessing the interplay between business sentiment and monetary factors.

Understanding the credit cycle

The credit cycle can be broken down into the following phases: post-crisis stabilisation, recovery, expansion and finally crisis. The transition from one phase to another is somewhat arbitrary, and each cycle differs in length and character. For these reasons, applying a statistical approach to identifying the different phases usually fails to elucidate analysis. It is far better to have an understanding of shifts in sentiment in the minds of consumers, producers and lending banks, and how they interact.

At the beginning of the credit cycle, central banks exert the most economic influence through monetary policy. They do this by ensuring, as far as they can, that the market does not clear. By this we mean that the accumulation of malinvestments in the previous cycle is protected, thus preserving jobs in businesses that in a free market would have been abandoned as producing an inadequate return. The capital employed in these unserviceable industries becomes locked in, not quickly redeployed as it would in an efficient economy. And by capital we include not just money, but all the other factors of production that must be acquired, including labour. 

In today’s interventionist, neo-Keynesian world, prices must never be allowed to adjust downwards to establish new price equilibriums, as they would in free markets. The balance between savings and immediate consumption is encouraged to adjust in favour of immediate spending to shore up falling prices. 

This gives us a basic rule, which has always held to date: by debasing the currency and reducing, eliminating or even reversing the time-preference inherent in unhampered free markets, central banks have always stoped the credit crisis from running its full course.[i] There were moments in the last two crises when this nearly did not happen. We all stared into an economic and financial abyss of complete systemic failure, with the potential to destroy the banks and all their customers’ balances. And without banks, the production of all goods and services were likely to cease or be provided through nationalisation. In both instances, the Fed under the chairmanship of Alan Greenspan and then Ben Bernanke came to the rescue. 

The first crisis of the new millennia was primarily the result of a credit-fuelled dot-com bubble unwinding and had similarities with the stock market crash of 1929, which preceded the depression. The Fed was not going to allow that to happen again, and stock and bond markets were rescued by aggressive reductions in interest rates. Consequently, monetary expansion regained its momentum, with a new feature developing, the alphabet soup of securitisation, amounting to extra, unrecorded off-balance sheet credit expansion through the growth of shadow banking.

Read More @ GoldMoney.com

London Paul: Gold & Silver / Asset Backed Cryptocurrencies Will Be the Future

by Rory Hall, The Daily Coin:

The other thing with gold, which is what I’ve said for many times, China and Russia have infinitely more gold than people realize. Russia has around 40,000 tons of gold, China is not quiet as much but is not far behind. That’s the reality. They’ve been building enormous gold reserves for years. Why? Because they are building for a future.

If people think that gold and silver have no relevance any more then why is the price so massively, heavily manipulated in a southerly direction? London Paul, The Daily Coin

Some people in the Western world have heard of the Shanghai Cooperation Organization (SCO), not very many, and even fewer understand what it is and what it does. Hardly anyone in the Western world has ever heard of the EurAsian Economic Union (EAEU) which is headed by Russia and includes 4 other nations, Kazakhstan, Armenia, Belarus, Kyrgyzstan. Does that mean this alliance is weak or is of little importance? Absolutely not. The nations that form the EAEU will be rolled into the Belt and Road Initiative. Once these nations become part of a much larger alliance and their economies began to benefit from these economic and social ties, these nations will be on par with nations like Greece or Spain or any of the smaller European nation states.

What is overlooked is the mineral wealth these nations are sitting on. The land within the heartland is extremely rich with minerals. Once the technology becomes available to these nations and the minerals are mined and brought to market the potential economic growth will be massive. It has been estimated that more than 70% of the global natural resources, including oil, gold and diamonds, are held within the heartland. If you’ve got gold, you’ve got money. If don’t have gold you’ve gotten a problem – Alasdair Macleod

Gold is coming back to the monetary system. It never left the monetary system it’s just not been used in everyday transactions for a number of years. This is going to change and according to London Paul, The Sirius Report, he believes the blockchain will allow this to happen. I would tend to agree that blockchain technology will be used to bring gold and silver, and possibly other assets, back to their rightful place as backing for currency or as currency itself.

 Chart courtesy  Schiff Gold
Chart courtesy Schiff Gold

 

These paper markets in London and New York will blow-up when the paper price of gold drops to zero or when just a fraction of the investors insist upon receiving physical gold in return.

The reality is London and New York markets are slitting their own throats with their market suppression of the gold and silver price. Undoubtedly higher gold and silver prices are coming. Eventually, there’s likely to be an arbitrage between the West and East prices and that’s going to become a reality.

What is coming is the ascent of sound money and the death of the U.S. dollar and in essence that’s what this much vaunted asset reset is all about. Basically, fiat money dies and sound money returns. London Paul, The Daily Coin

This in-depth conversation covers gold and silver from a global perspective along with the role of cryptocurrencies and blockchain, both today and their potential use in the future. London Paul paints a very realistic picture of gold and silver as money along with other assets backing currencies around the world. What benefit will this have to humanity? Will the debt based system finally be washed away? Only time will tell, however, it seems like there are nations around the world that are working towards a different type of system than the one that is currently in place.

Read More @ TheDailyCoin.org

Keiser Report: Not Rich Enough (E1186)

from RT:

In the second half, Max interviews JP Baric of MiningStore.co about the world of cryptocurrency mining. How does one decide which currencies to mine? What are the costs?

“He Who Has the Gold Makes the Rules” and Russia Is Getting the Gold

from SchiffGold:

Remember the golden rule: He who has the gold makes the rules.”

And the Russians have the gold. Or at least they are in the process of getting it.

The saying apparently originated in the Wizard of Id comic strip. And while it may have comical origins, it nevertheless rings true. At least it must in the minds of the Russians because they are buying a lot of gold.

According to the World Gold Council, Russian gold reserves increased 224 tons in 2017. It marked the third consecutive year of plus-200 ton growth, and Russia’s gold holdings have topped 1,800 tons. To put that into perspective, between 2000 and 2007, the Russian central bank held just 400 tons of gold.

Only a few central banks are piling up gold right now. Official gold reserves worldwide grew by 371 tons. The biggest purchasers of the yellow metal last year were Russia, Turkey, and Kazakhstan. And the Russians bought more gold than all other countries combined. Last year’s buying spree made Russia the sixth largest holder of gold in the world. And the Russians have almost caught up with the Chinese, at least based on China’s official numbers. (Many analysts think the Chinese have much more gold than they reveal publicly.)

Gold bullion now accounts for 17% of Russia’s total foreign reserve assets. That compares with China’s gold stores, which account for about 2.5% of its reserves.

As we reported last December, Russia’s growing gold hoard is helping the country establish economic and political stability and independence. And as Markets and Money writer Shae Russel noted, we shouldn’t ignore Russias growing hoard of gold.

Even though the precious metal isn’t at the center of the financial system today, gold still equals power.”

So, why do the Russians want gold? There are certainly a number of reasons. But chief among them – Putin wants to get away from the dollar and the euro. He wants monetary independence. Gold offers him that. As Macquarie Group metals analyst Matthew Turner told Bloomberg gold is as geopolitics-proof an investment as any in the age of sanctions.

Gold is an asset that is independent of any government and, in effect, given what is usually held in reserves, any western government. This might appeal given Russia has faced financial sanctions.”

Read More @ SchiffGold.com

ANOTHER RAID TODAY/GOLD DROPS $22.60 DOWN TO $1312.10/SILVER DROPS ANOTHER 32 CENTS TO $16.32

by Harvey Organ, Harvey Organ Blog:

COMEX GOLD ISSUES ANOTHER WHOPPING 14,039 EFP CONTRACTS TRANSFERRING THESE LONGS OVER TO LONDON/COMEX SILVER TRANSFERS 3408/ROYAL BANK OF SCOTLAND CAUGHT FORGING SIGNATURES: THEY WILL PROBABLY BE TOAST/CHINA’S NHA IN TECHNICAL DEFAULT THIS MORNING/USA 10 YR BOND YIELD BACK UP TO 2.84%/TROUBLE TOMORROW AS FUTURES ARE ALREADY DOWN BADLY/HUGE SWAMP STORIES/CHUCK GRASSLEY: DEMOCRATS IN TURMOIL

GOLD: $1312.10 down $22.60

Silver: $16.30 down 32 cents

Closing access prices:

Gold $1318.50

silver: $16.38

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: $1338.47 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME: $1329.70

PREMIUM FIRST FIX: $8.77

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SECOND SHANGHAI GOLD FIX: $1339.02

NY GOLD PRICE AT THE EXACT SAME TIME: $1331.90

Premium of Shanghai 2nd fix/NY:$8.12

SHANGHAI REJECTS  NY /LONDON PRICING OF GOLD

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LONDON FIRST GOLD FIX: 5:30 am est $1328.50

NY PRICING AT THE EXACT SAME TIME: $1328.10

LONDON SECOND GOLD FIX 10 AM: $1324.65

NY PRICING AT THE EXACT SAME TIME. $1324.40

For comex gold:

FEBRUARY/

NUMBER OF NOTICES FILED TODAY FOR FEBRUARY CONTRACT: 113 NOTICE(S) FOR 11300 OZ.

TOTAL NOTICES SO FAR:1537 FOR 153700 OZ (4.780 TONNES),

For silver:

jANUARY

13 NOTICE(S) FILED TODAY FOR

65,000 OZ/

Total number of notices filed so far this month: 139 for 695,000 oz

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Bitcoin: BID $8162/OFFER $8232: up $502(morning)

Bitcoin: BID/ $7802/offer $7822: UP $143  (CLOSING/5 PM)

 

end

Let us have a look at the data for today

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In silver, the total open interest FELL BY A TINY 700 contracts from 206,171  FALLING TO 205,470 WITH YESTERDAY’S  8 CENT FALL IN SILVER PRICING.  WE  HAD TINY COMEX LIQUIDATION. HOWEVER, WE WERE AGAIN NOTIFIED THAT WE HAD ANOTHER HUGE SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:  3408 EFP’S FOR MARCH AND AND 0 EFP’S FOR MAY AND ZERO FOR ALL  OTHER MONTHS  AND THUS TOTAL ISSUANCE OF 3408 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 3408 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. THE 3408 CONTRACTS TRANSLATES INTO 17.04 MILLION OZ

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

17,482 CONTRACTS (FOR 6 TRADING DAYS TOTAL 17,482 CONTRACTS OR 87.410 MILLION OZ: AVERAGE PER DAY: 2913 CONTRACTS OR 14.565 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH:  87.41 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 12.42% OF ANNUAL GLOBAL PRODUCTION

ACCUMULATION IN YEAR 2018 TO DATE SILVER EFP’S:  322.34 MILLION OZ.

ACCUMULATION FOR JAN 2018: 236.879 MILLION OZ

RESULT: A TINY SIZED LOSS IN OI SILVER COMEX WITH THE SMALL 8 CENT FALL IN SILVER PRICE.  WE HOWEVER HAD A GOOD SIZED EFP ISSUANCE OF 3408 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 FOR PHYSICAL SILVER . FROM THE CME DATA 3408 EFP’S  FOR  MONTHS MARCH AND MAY WERE ISSUED FOR TODAY  FOR A DELIVERABLE FORWARD CONTRACT OVER IN LONDON WITH A FIAT BONUS. WE REALLY GAINED  2708 OICONTRACTS i.e. 3408 open interest contracts headed for London (EFP’s) TOGETHER WITH A DECREASE OF 700  OI COMEX CONTRACTS. AND ALL OF THIS HAPPENED WITH THE FALL IN PRICE OF SILVER OF  8 CENTS AND A CLOSING PRICE OF $16.62 WITH RESPECT TO YESTERDAY’S TRADING. YET WE STILL HAVE A FAIR 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. 1.028 BILLION TO BE EXACT or 148% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT FEBRUARY MONTH/ THEY FILED: 13 NOTICE(S) FOR 65,000 OZ OF SILVER

In gold, the open interest FELL  BY A CONSIDERABLE 10,572 CONTRACTS DOWN TO 535.321  WITH THE FAIR SIZED FALL IN PRICE OF GOLD WITH YESTERDAY’S TRADING ($8.50). IN ANOTHER DEVELOPMENT, WE RECEIVED THE TOTAL NUMBER OF GOLD EFP’S ISSUED FOR TUESDAY AND IT TOTALED A HUGE SIZED  14,039 CONTRACTS OF WHICH  APRIL SAW THE ISSUANCE OF 14039 CONTRACTS AND  JUNE SAW THE ISSUANCE OF 0 CONTRACTS AND THEN ALL OTHER MONTHS ZERO.    The new OI for the gold complex rests at 535,321. ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. 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 FEBRUARY 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 TODAY WE HAVE A GAIN OF 3467  CONTRACTS: 10,572 OI CONTRACTS DECREASED AT THE COMEX AND A STRONG SIZED  14,039 OI CONTRACTS WHICH NAVIGATED OVER TO LONDON.(3467 oi gain in CONTRACTS EQUATES TO 10.78 TONNES)

YESTERDAY, WE HAD 5581 EFP’S ISSUED.

ACCUMULATION OF EFP’S/ GOLD(EXCHANGE FOR PHYSICAL) FOR THE MONTH OF FEBRUARY STARTING WITH FIRST DAY NOTICE: 63,032 CONTRACTS OR 6,303,200  OZ OR 196.055 TONNES (6 TRADING DAYS AND THUS AVERAGING: 10,505 EFP CONTRACTS PER TRADING DAY OR 1,050,500 OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS :   SO FAR THIS MONTH IN 6 TRADING DAYS: IN  TONNES: 177.53 TONNES

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

THUS EFP TRANSFERS REPRESENTS 177.53/2200 x 100% TONNES =  8.04% OF GLOBAL ANNUAL PRODUCTION SO FAR IN FEBRUARY ALONE.

ACCUMULATION OF GOLD EFP’S YEAR 2018 TO DATE:  829.84 TONNES

ACCUMULATION OF GOLD EFP’S FOR JANUARY 2018: 653.22  TONNES

Result: A  HUGE SIZED DECREASE IN OI AT THE COMEX WITH THE FALL IN PRICE IN GOLD TRADING YESTERDAY ($8.50). IT IS WITHOUT A DOUBT THAT MANY OF THE DEPARTED COMEX LONGS  RECEIVED THEIR PRIVATE EFP CONTRACT  FOR EITHER  APRIL OR JUNE. WE HAD ANOTHER GOOD SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 14,039 AS THESE HAVE ALREADY BEEN NEGOTIATED AND CONFIRMED.   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 14039 EFP CONTRACTS ISSUED, WE HAD A NET GAIN IN OPEN INTEREST OF 3467 contracts ON THE TWO EXCHANGES:

14039 CONTRACTS MOVE TO LONDON AND  10,572 CONTRACTS DECREASED AT THE COMEX. (in tonnes, the GAIN in total oi equates to 10.79 TONNES).

we had: 113 notice(s) filed upon for 11300 oz of gold.

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

GLD

WOW!!!, WITH ALL OF TODAY’S TURMOIL: A MASSIVE 12.08 TONNES OF GOLD WAS REMOVED FROM THE GLD AND NO DOUBT THAT THIS WILL TURN OUT TO BE CRIMINAL BEHAVIOUR

Inventory rests tonight: 829.27 tonnes.

SLV/

NO CHANGES IN SILVER INVENTORY AT THE SLV/ WITH ALL OF TODAY’S TURMOIL AND WHACKING OF SILVER

/INVENTORY RESTS AT 314.045 MILLION OZ/

 

can someone please explain why GLD behaves differently to SLV

end

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

1. Today, we had the open interest in silver FELL BY A TINY 700 contracts from 206,170 DOWN TO 205,470 (AND now A LITTLE FURTHER TO THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) WITH  THE SLIGHT FALL  IN PRICE OF SILVER  (8 CENTS WITH RESPECT TO  YESTERDAY’S TRADING).   OUR BANKERS USED THEIR EMERGENCY PROCEDURE TO ISSUE ANOTHER GOOD 3408 PRIVATE EFP’S FOR MARCH AND 0 EFP CONTRACTS OR MAY  (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 ZERO COMEX SILVER COMEX LIQUIDATION. IF WE TAKE THE  OI LOSS AT THE COMEX OF  700 CONTRACTS TO THE 3408 OI TRANSFERRED TO LONDON THROUGH EFP’S WE OBTAIN A GOOD GAIN OF 2708  OPEN INTEREST CONTRACTS.  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:13.54 MILLION OZ!!!

RESULT: A TINY SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE SMALL SIZED FALL OF 8 CENTS IN PRICE (WITH RESPECT TO YESTERDAY’S TRADING). BUT WE ALSO HAD ANOTHER GOOD 3408 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE GOOD  SIZED AMOUNT OF SILVER OUNCES STANDING FOR FEBRUARY, 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 DOWN 61.39 points or 1.82% /Hang Sang CLOSED DOWN 272.22 or 0.89% / The Nikkei closed UP 35.13 POINTS OR 0.16%/Australia’s all ordinaires CLOSED UP 0.87%/Chinese yuan (ONSHORE) closed UP at 6.2700/Oil DOWN to 63.21 dollars per barrel for WTI and 66.84 for Brent. Stocks in Europe OPENED DEEPLY IN THE GREEN.   ONSHORE YUAN CLOSED DOWN AGAINST THE DOLLAR AT 6.2700. OFFSHORE YUAN CLOSED DOWN AGAINST  THE ONSHORE YUAN AT 6.2820//ONSHORE YUAN A LOT STRONGER AGAINST THE DOLLAR/OFF SHORE A LOT STRONGER TO THE DOLLAR/. THE DOLLAR (INDEX) IS  MUCH STRONGER AGAINST ALL MAJOR CURRENCIES EXCEPT THE YUAN. CHINA IS NOT  TOO  HAPPY TODAY.(STRONGER CURRENCY BUT WEAK MARKETS THROUGHOUT THE GLOBE )

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