An ALL-OUT EXODUS OF GOLD CONTINUES FROM THE COMEX…

 

ALMOST 28 TONNES OF GOLD STANDING FOR OCTOBER/EXODUS OF GOLD CONTINUES FROM THE COMEX/SHANGHAI CONTINUES TO LEAD IN THE PRICING OF GOLD AS DUBAI AGREES TO USE THE SHANGHAI FIX AND NOT THE LONDON FIX/DONALD TRUMP INDICATES THAT HE MAY NOT ACCEPT ELECTION DECISION/EXISTING HOME SALES DOWN/PHILLY MFG INDEX DOWN

sd-bullion-flash-sale

Gold $1265.60 DOWN  $2.30

2016 Silver Eagles SaleSilver 17.50 DOWN 12 cents

In the access market 5:15 pm

Gold: 1266.00

Silver: 17.50

THE DAILY GOLD FIX REPORT FROM SHANGHAI AND LONDON

.

The Shanghai fix is at 10:15 pm est and 2:15 am est

The fix for London is at 5:30  am est (first fix) and 10 am est (second fix)

Thus Shanghai’s second fix corresponds to 195 minutes before London’s first fix.

And now the fix recordings:

Shanghai morning fix OCT 18 (10:15 pm est last night): $  1276.80

NY ACCESS PRICE: $1271.50 (AT THE EXACT SAME TIME)

Shanghai afternoon fix:  2: 15 am est (second fix/early  morning):$   1274.31

NY ACCESS PRICE: 1269.70 (AT THE EXACT SAME TIME)

HUGE SPREAD TODAY!!  5 dollars

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London Fix: OCT 20: 5:30 am est:  $1269.20   (NY: same time:  $1269.30:    5:30AM)

London Second fix OCT 20: 10 am est:  $1271.65  (NY same time: $1271.70 ,    10 AM)

Shanghai premium in silver over NY:  87 cents.

 

It seems that Shanghai pricing is higher than the other  two , (NY and London). The spread has been occurring on a regular basis and thus I expect to see arbitrage happening as investors buy the lower priced NY gold and sell to China at the higher price. This should drain the comex.

Also why would mining companies hand in their gold to the comex and receive constantly lower prices.  They would be open to lawsuits if they knowingly continue to supply the comex despite the fact that they could be receiving higher prices in Shanghai.

end

 
 

For comex gold: 

10  NOTICES FILED FOR 1000 OZ

 

For silver:

for the Oct contract month:  85 notices for 425,000 oz.

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Let us have a look at the data for today

.

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In silver, the total open interest ROSE by 3,939 contracts UP to 193,168. The open interest ROSE DRAMATICALLY EVEN as the silver price was UP ONLY 3 cents in yesterday’s trading .In ounces, the OI is still represented by just less THAN 1 BILLION oz i.e. .966 BILLION TO BE EXACT or 138% of annual global silver production (ex Russia &ex China).

In silver for October we had 85 notices served upon for 425,000 oz

In gold, the total comex gold ROSE by 6554 contracts with the RISE  in price of gold( $7.10 YESTERDAY) . The total gold OI stands at 503,615 contracts.

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

GLD

TODAY WE HAD A HUGE CHANGE AT THE GLD: A DEPOSIT OF 2.94 TONNES

Total gold inventory rests tonight at: 970.17 tonnes of gold

SLV

we had a good sized deposit of .855 million oz at the SLV/

THE SLV Inventory rests at: 363.140 million oz

.

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

1. Today, we had the open interest in silver ROSE by 3,939 contracts UP to 193,168 as the price of silver ROSE by 3 cents with yesterday’s trading.The gold open interest ROSE by 6,554 contracts UP to 503,615 as the price of gold ROSE $7.10 IN YESTERDAY’S TRADING.

(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

 

end

3. ASIAN AFFAIRS

i)Late  WEDNESDAY night/THURSDAY morning: Shanghai closed DOWN 0.261 POINTS OR 0.01%/ /Hang Sang closed UP 69.43 POINTS OR 0.30%. The Nikkei closed UP 236.59 POINTS OR 1.59% Australia’s all ordinaires  CLOSED UP 0.12% /Chinese yuan (ONSHORE) closed DOWN at 6.7380/Oil FELL to 51.03 dollars per barrel for WTI and 52.15 for Brent. Stocks in Europe: ALL IN THE GREEN   Offshore yuan trades  6.7425 yuan to the dollar vs 6.7380  for onshore yuan.THE SPREAD BETWEEN ONSHORE AND OFFSHORE WIDENS  A BIT  AS MORE USA DOLLARS   LEAVE CHINA’S SHORES

REPORT ON JAPAN  SOUTH KOREA NORTH KOREA AND CHINA

3a)THAILAND/SOUTH KOREA

none today

 

b) REPORT ON JAPAN

none today

c) REPORT ON CHINA

The USA has just lost a major ally in the Philippines

( zero hedge)

4 EUROPEAN AFFAIRS

i)Bank of England’s chief economist admits that QE is only a temporary benefit and it is more effective as a plunge protection item for stock markets.

 

( Andy Haldane/Bank of England/zero hedge)

ii)In the bailout agreements, the self employed has higher taxes to pay along with higher social security contributions.  Many northern Greek businesses moved their corporations over to Bulgaria where the contributions are lower and the corporate tax is 10% instead of 29%.  No wonder Greece is going nowhere!

( zero hedge)

iii)As expected, the ECB keeps its rates unchanged.  Now comes the press conference:

( zero hedge)
 

iv)The Euro jumps higher as stocks fall as Draghi suggests that QE cannot last forever.  He stated that the ECB has not discussed an extension of QE beyond March.( zero hedge)

v)Just take a look at the ECB’s balance sheet:  a massive bubble!

( zero hedge)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

 none today

6.GLOBAL ISSUES

none today

7.OIL ISSUES

Nigeria caught in a bind as they lower their official oil price by $1.00.  They state that there is a huge cargo glut playing havoc to the oil market

(courtesy zero hedge)

8.EMERGING MARKETS

none today

9.PHYSICAL STORIES

i)The ECB is urging the EU to curb virtual money e.g. bitcoin for fear of losing control:

( Canepa/Reuters)

ii)This story was brought to your attention before but it is worth repeating: Gold in India trades at a premium for the first time in 9 months

( Reuters/gata)

iii)Lawrie Williams states the following facts;

  1. the SGE is gaining in strength and they are now leading the pact in gold price
  2. the Dubai gold exchange is now contracted with the SGE in gold pricing and not the London Bullion Association
  3. Shanghai and India has seen their premiums to spot gold rise
  4. Shanghai is negotiating with other exchanges to use their fix as opposed to the London fix.

looks like the London fix is doomed!

( Lawrie Williams/Sharp’s Pixley)

iv)An update on the Chinese inclusion into the iMF’s SDR  currency pricing:

( Steve St Angelo/Tom Cloud/SRSRocco report)

 

10.USA STORIES WHICH MAY INFLUENCE THE PRICE OF GOLD/SILVER

i)The key event at last night’s debate was Trump suggesting that he may not accept the decision of voters on Nov 8

( zero hedge)

ii)California’s Attorney General launches a criminal probe into Wells Fargo over fake identity theft and other stuff

( zerohedge)

iii)[email protected]!! Initial claims jump over 5% this week to 260,000. Finally the poor data on the USA economy is finally catching up to the BLS’s faulty data releases over the past year:

( BLS/zero hedge)

iv)USA consumer confidence tumbles to its lowest levels since 2015:

( zero hedge)

v)Another indicator showing low growth in the USA” existing home sales down:

( zero hedge)

vi)The Philly Mfg index trends lower

(courtesy investing.com)
 

vii)Now it is Ambrose Evans Pritchard that is sounding the alarm bells for a huge USA recession:

He sites these important points:

1.the USA has engaged in multiple reverse repos as they remove liquidity from the system (as they prepare for raising rates in Dec).  He claims that this is not a good time to raise rates.

2.Global GDP has been in a steady fall these past 2 yrs.

3. total debt denominated in dollars outside the UDS has risen to 9.8 trillion this yr.

4. and this has caused 3 month euro dollars rates to rise to almost 1%.

storm clouds gathering!

(courtesy Ambrose Evans Pritchard/UKTelegraph).

 

end

Let us head over to the comex:

The total gold comex open interest ROSE BY 6,554 CONTRACTS to an OI level of 503,615 as the price of gold ROSE $7.10 with YESTERDAY’S trading.

We are in the delivery month is October and here the OI GAINED 180 contracts UP to 180. We had 11 notices filed yesterday so we GAINED 191 contract or 19,100 additional oz will  stand  for delivery.

The next delivery month is November and here the OI FELL by 143 contract(s) DOWN to 2861 contracts. This level is extremely elevated as generally November is a very poor delivery month.To give you an idea of size, on Oct 19 2015, we had an OI of only 266 contracts.The next contract month and the biggest of the year is December and here this month showed an increase of 4991 contracts up to 372,212.

Today we had  10 notices filed for 1000 oz of gold.
 
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And now for the wild silver comex results.  Total silver OI ROSE BY 3,939 contracts from  189,229 up to 193,168 as the  price of silver ROSE  to the tune of 3 cents yesterday.  We are moving  further from the all time record high for silver open interest set on Wednesday August 3:  (224,540).  The next non active delivery month is October and here the OI rose by 5 contracts up to 168. We had 0 notices filed yesterday so we gained 5 contracts or 25,000 additional oz will stand for delivery.The November contract month saw its OI LOSE 1 contract DOWN to 328.   The next major delivery month is December and here it ROSE BY 1,746 contracts UP to 150,923.

we had 85 notices filed for 425,000 oz

VOLUMES:

Today the estimated volume was 141,102 contracts which is fair.

Yesterday, the confirmed volume was 149,892,006 which is also fair.

today we had 1 notice filed for 5,000 oz of silver:

 
INITIAL standings for OCTOBER
 Oct 20.
 
Gold
Ounces
Withdrawals from Dealers Inventory in oz  NIL
Withdrawals from Customer Inventory in oz  nil
4800.17 oz
Manfra
 
SCOTIA
 
 
Deposits to the Dealer Inventory in oz nil oz
Deposits to the Customer Inventory, in oz 
 NIL oz
 
 
No of oz served (contracts) today
10 notices 
1000 oz
 
No of oz to be served (notices)
291 contracts
 29,100
oz
Total monthly oz gold served (contracts) so far this month
8545 contracts
854,500 oz
26.578 tonnes
Total accumulative withdrawals  of gold from the Dealers inventory this month    oz
Total accumulative withdrawal of gold from the Customer inventory this month    318,473.3 oz
 
Today we had 1 kilobar transactions,  and MORE GOLD leaving the comex
 
 
Today we had 0 deposit into the dealer:
 
total dealer deposits:  nil oz
 
We had zero dealer withdrawals:
 
 
total dealer withdrawals:  nil oz
 
.
We had 0 customer deposit;
 
 
 
total customer deposits;NIL
 
We had 2 customer withdrawal(s)
i) Out of MANFRA; 64.30 oz  (2 KILOBARS)
 
ii)Out of Scotia:  4733.87 OZ
 
 
 
total customer withdrawal: 4800.17  oz
 
We had 3 adjustment(s)
i) Out of DELAWARE: 6627.853 oz was adjusted from the dealer and this entered the customer account of Delaware
ii) Out of HSBC: 497.25 oz was adjusted from the dealer and this entered the customer account of HSBC
iii) Out of Scotia: 46,403.384 oz was adjusted out of the dealer and this entered the customer account of Scotia
total leaving the dealer:  53,528.487 oz in an obvious settlement for the huge amount of gold standing in October.
 
 
 
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Total dealer inventor 2,236,180.879 or 69.559 tonnes
Total gold inventory (dealer and customer) =10,463.561/480. or 325.460 tonnes 
 
Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 325.460 tonnes for a  gain of 22  tonnes over that period.  Since August 8 we have lost 29 tonnes leaving the comex. However I am including kilobar transactions and they are very suspect at best.
 
 
 
 
For October:
 
 

Today, 0 notices were issued from JPMorgan dealer account and 0 notices were issued form their client or customer account. The total of all issuance by all participants equates to 10 contracts  of which 0 notices were stopped (received) by jPMorgan dealer and  3 notice(s) was (were) stopped received) by jPMorgan customer account.

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To calculate the initial total number of gold ounces standing for the Oct contract month, we take the total number of notices filed so far for the month (8545) x 100 oz or 854,500 oz, to which we add the difference between the open interest for the front month of OCT (301 contracts) minus the number of notices served upon today (10) x 100 oz per contract equals 883,600 oz, the number of ounces standing in this  NON active month of September.
 
Thus the INITIAL standings for gold for the SEPT contract month:
No of notices served so far (8545) x 100 oz  or ounces + {OI for the front month (301) minus the number of  notices served upon today (10) x 100 oz which equals 864,500 oz standing in this non active delivery month of Oct  (27.483 tonnes).
 
we GAINED additional 19,100 oz standing in this active delivery month of October and I believe that this is a record standing for October. To give you an idea of size from last yr, we had only a little over 2 tonnes standing at the conclusion of Oct 2015!
 
 
 
 
The gold comex is an absolute fraud.  The use of kilobars and exact weights makes the data totally absurd and fraudulent! To me, the only thing that makes sense is the fact that “kilobars: are entries of hypothecated gold sent to other jurisdictions so that they will not be short with their underwritten derivatives in that jurisdiction.  This would be similar to the rehypothecated gold used by Jon Corzine
 
IN THE LAST TWO MONTHS  29 NET TONNES HAS LEFT THE COMEX.
 
end
 
And now for silver
 
OCT INITIAL standings
 Oct 20. 2016
Silver
Ounces
Withdrawals from Dealers Inventory NIL
Withdrawals from Customer Inventory
61,697.55 oz
 
CNT
Scotia
 
 
Deposits to the Dealer Inventory
421,138.110 OZ
CNT
Deposits to the Customer Inventory 
 
 187,820.600 oz
CNT
No of oz served today (contracts)
85 CONTRACT(S)
(425,000 OZ)
No of oz to be served (notices)
83 contracts
(415,000 oz)
Total monthly oz silver served (contracts) 441 contracts (2,205,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month  NIL oz
Total accumulative withdrawal  of silver from the Customer inventory this month  5,191,804.6 oz
today, we had 1 deposit into the dealer account:
i) into CNT: 421,138.100  oz
total dealer deposit: 421,138.100 oz
 
we had 0 dealer withdrawals:
 total dealer withdrawals: nil oz
 
we had 2 customer withdrawals:
i) Out of CNT:: 1025.65 oz
ii) out of Scotia: 60,671.900 oz
Total customer withdrawals: 61,697.55  oz
 
We had 1 customer deposits:
 
 i) Into CNT: 187,820.600 oz
total customer deposits;  187,820.600 oz
 
 
 we had 0 adjustment(s) 
 
 
Volumes:
 
Today the estimated volume was 59,240 which is VERY GOOD.
Yesterday the confirmed volume was 47,978 which is GOOD
 
The total number of notices filed today for the Oct contract month is represented by 85 contract(s )for 425,000 oz. To calculate the number of silver ounces that will stand for delivery in OCT., we take the total number of notices filed for the month so far at  441 x 5,000 oz  = 2,205,000 oz to which we add the difference between the open interest for the front month of OCT (168) and the number of notices served upon today (85) x 5000 oz equals the number of ounces standing 
 
Thus the initial standings for silver for the OCT contract month:  441(notices served so far)x 5000 oz +(168) OI for front month of SEPT ) -number of notices served upon today (85)x 5000 oz  equals  2,620,000 oz  of silver standing for the OCT contract month. THIS IS STILL A HUGE SHOWING FOR SILVER AS OCTOBER IS GENERALLY A VERY WEAK DELIVERY MONTH.
 
We gained 25,000 additional silver ounces THAT WILL STAND.
 
Total dealer silver:  29.707 million (close to record low inventory  
Total number of dealer and customer silver:   174.037 million oz
 
 
 
The total open interest on silver is NOW close to its all time high with the record of 224,540 being set AUGUST 3.2016.  The registered silver (dealer silver) is NOW NEAR  multi year lows as silver is being drawn out at both dealer and customer levels and heading to China and other destinations. The shear movement of silver into and out of the vaults signify that something is going on in silver.
 
 
end
 
And now the Gold inventory at the GLD
OCT 20/A HUGE CHANGE IN GOLD INVENTORY AT THE GLD OF 2.94 TONNES/INVENTORY RESTS AT 970.17 TONNES
OCT 19/no change in gold inventory at the GLD inventory/inventory rests at 967.21 tonnes
OCT 18/A DEPOSIT OF 1.78 TONNES OF GOLD INTO THE GLD/INVENTORY RESTS AT967.21 TONNES
OCT 17/ A DEPOSIT OF 3.86 TONNES OF GOLD INTO THE GLD/INVENTORY RESTS AT 965.43 TONNES/IN 10 DAYS 16.29 TONNES DEPOSITED
Oct 14./NO CHANGE IN INVENTORY AT THE GLD
OCT 13/a deposit of 2.67 tonnes of gold into the GLD/inventory rests  at 961.57 tonnes
Oct 12/No changes in inventory/inventory rests at 958.90 tonnes
Oct 11/ what!!! we had a gigantic 9.76 tonnes of inventory increase today/inventory rests at 958.90 tonnes.  (this was done with gold down?)
Oct 7:  949.14 tonnes
 
 
 
 
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Oct 20/ Inventory rests tonight at 970.17 tonnes
*IN LAST 14 DAYS:  21.04 TONNES ADDED INTO THE GLD
 

end

 
 
Now the SLV Inventory
oCT 20/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 363.140 MILLION OZ
oCT 19/a good sized change at the SLV inventory: a deposit of 855,000 oz/rests at 363.140 million oz/
OCT 18/NO CHANGES AT THE SLV INVENTORY RESTS AT 362.285 MILLION OZ
OCT 17/NO CHANGES AT THE SLV/INVENTOR RESTS AT 362.285 MILLION OZ/
oCT 14: A HUGE ADDITION (DEPOSIT) OF 1.138 MILLION OZ INTO THE SLV/INVENTORY RESTS AT 362.285 MILLION OZ
OCT 13/ NO CHANGES  in inventory at the SLV/Inventory rests at 361.147 million oz
Oct 12:NO CHANGES  in inventory at the SLV/Inventory rests at 361.147 million oz
Oct 11/ a withdrawal of 1.762 million oz of inventory from the SLV/Inventory rests at 361.147 million oz/
 
 
 
 
 
 
.
Oct 20.2016: Inventory 363.140 million oz
 
 end

NPV for Sprott and Central Fund of Canada

Central fund data not available today.

 
1. Central Fund of Canada: traded at Negative 3.8 percent to NAV usa funds and Negative 3.9% to NAV for Cdn funds!!!! 
Percentage of fund in gold 60.9%
Percentage of fund in silver:38.1%
cash .+1.0%( Oct 20/2016).
 
2. Sprott silver fund (PSLV): Premium FALLS to +0.80%!!!! NAV (OCT 20/2016) 
3. Sprott gold fund (PHYS): premium to NAV  RISES TO  1.03% to NAV  ( OCT 20/2016)
Note: Sprott silver trust back  into POSITIVE territory at 0.80% /Sprott physical gold trust is back into positive territory at 1.03%/Central fund of Canada’s is still in jail.
  1. Quote: It seems that Shanghai pricing is higher than the other  two , (NY and London). The spread has been occurring on a regular basis and thus I expect to see arbitrage happening as investors buy the lower priced NY gold and sell to China at the higher price. This should drain the comex.

    I have not been too convinced about this arbitrage business of late especially if the plan is to buy on the Comex and sell in Shanghai.  My understanding (which may be wrong) is that to sell in Shanghai you have to actually have the physical gold there registered.  The only way to arbitrage is therefore to have “buffer” gold already in Shangahi to sell at the same time as you “buy” on the Comex.  However this gold must have been bought at a price so that in order to make a profit you must buy on the Comex at a lower price than the gold in Shanghai cost you and/or sell at a higher price in Shanghai than the buffer gold cost you to make a profit.  In other words you had to take a futures bet on the gold price and pay for shipping and insurance.  You can take the same bet of course by going short on the Comex without gold moving costs and thus make more profit.  More shorting on the Comex leads to lower gold prices so as the arbitrageur is shorting gold he is betting that the price of gold will fall over time and his sentiment is that he will always buy the buffer gold at a higher price than the derivatives price.  Therefore he is betting he will take a loss on the buffer gold price.

    OK I’m confused now.  Somebody please explain it to me!  The combinations are maddening.

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