my-shorts-on-fireGIGANTIC RISE IN SILVER OI AS IT SEEMS THAT SOMEONE BIG IS WILLING TO TAKE ON THE CROOKS…

 

Harvey Organ

DESPITE THE LOW PRICE OF GOLD/SILVER, GLD ADDS A WHOPPING 11.89 TONNES TO ITS INVENTORY/SLV ADDS 2.665 MILLION OZ/GOLD WHACKED/SILVER HELD UP PRETTY GOOD/GOLD AND SILVER SHARES REFUSE TO BUCKLE/GIGANTIC RISE IN SILVER OI AS IT SEEMS THAT SOMEONE BIG IS WILLING TO TAKE ON THE CROOKS/COMEX GOLD OI ALSO RISES/JAPANESE 10 YR BOND YIELD FALLS TO -.107% AFTER HITTING -.137%: ALSO THE 30 YR RATE PLUNGES/IN BRAZIL, ROUSSEFF REMAINS DEFIANT DESPITE IMPEACHMENT VOTE IN APRIL/ IN OIL TWO DEVELOPMENTS: I) USA RIGS INCREASE AND II) OIL CONTANGO IS DISAPPEARING/WILL CAUSE OIL TO FALTER/IN USA, THE UNIV. OF MICHIGAN CONSUMER CONFIDENCE INDEX FALTERS

Gold:  $1,253.80 down $10.70    (comex closing time)

Silver 15.81  down 22 cents

In the access market 5:15 pm

Gold $1255.30

silver:  15.80

 

Yesterday afternoon as soon as the CME released the open interest on gold and silver I knew that a raid was coming and I emailed the CFTC that it would be forthcoming.  This morning I wrote to them again telling them that the “boys did not disappoint me” with their antics.

However this afternoon’s data is quite telling.  The OI on silver skyrocketed by almost 9,000 contracts to almost 177,500 contracts.  Now both comex gold and comex silver are at multi year highs.  The last time gold was at 500,000 was in late Sept 2012 and the gold price was $1700.00 USA. We are at the same OI but 445 dollars apart. The open interest with respect to silver has been at these elevated levels for years.  No doubt we have a strong entity waiting in the wings (the longs) to pounce on silver when it is convenient for them.

Kraken SDBullion

Let us have a look at the data for today.

 

At the gold comex today, we had a poor delivery day, registering 0 notices for nil ounces and for silver we had 242 notices for 1210,000 oz for the active March delivery month.

Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 213.23 tonnes for a loss of 90 tonnes over that period.

In silver, the open interest rose by an astonishing 8985 contracts up to 177,490 as the silver up by 81 cents yesterday . In ounces, the OI is still represented by .888 billion oz or 127% of annual global silver production (ex Russia ex China).

In silver we had 242 notices served upon for 1,210,000 oz.

In gold, the total comex gold OI rose also by a huge 6711 contracts to 508,262 contracts as the price of gold was UP $35.20 with yesterday’s trading.(at comex closing). The rise in OI in gold should add considerable  pressure on our bankers and thus expect future raids.

We had another big change in gold inventory at the GLD, another identical whopping deposit of 11.89 tonnes/ thus the inventory rests tonight at 818.98 tonnes. The appetite for gold coming from China is depleting not only gold from the LBMA and GLD but also the comex is bleeding gold. Our 670 tonnes of rock bottom inventory in GLD gold has been broken. It looks to me that China has taken the last amounts of physical gold from the GLD. I guess the only place left for China to receive physical gold, after they deplete the GLD will be the FRBNY and the comex.   In silver,/we had A BIG change in inventory, ANOTHER DEPOSIT OF 2.665 MILLION OZ/ and thus the Inventory rests at 328.533 million oz

.

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

 

1. Today, we had the open interest in silver rose by 8985 contracts up to 177,490 as the price of silver was UP 81 cents with yesterday’s trading. The total OI for gold rose by 6,711 contracts to 508,262 contracts as gold was up $35.20 in price from yesterday’s level.

(report Harvey)

 

2 a) Gold trading overnight, Goldcore

(Mark OByrne)

 

b) COT report

(Harvey)

3. ASIAN AFFAIRS

 

i) Late  THURSDAY night/ FRIDAY morning: Shanghai closed UP BY 50.31 POINTS OR 1.73% , /  Hang Sang closed UP by 167.82 points or  0.82% . The Nikkei closed DOWN 211.57 or 1.25%. Australia’s all ordinaires was UP 0.24%. Chinese yuan (ONSHORE) closed UP at 6.4731.   Oil ROSE  to 40.82 dollars per barrel for WTI and 42.09 for Brent. Stocks in Europe so far ALL IN THE GREEN . Offshore yuan trades  6.4726 yuan to the dollar vs 6.4731 for onshore yuan/ON WEDNESDAY, China’s industrial production collapsed along with retail sales. JAPAN RE SIGNALS that they may continue with nirp a little longer which sends the USA/Yen spiraling northbound/markets in Japan tumble . Japan’s exports plummet (see below).ON WEDNESDAY, China signals that they are going to tax financial transactions. This morning they AGAIN raise the yuan trapping the shorts with huge losses

.

ii) report on Japan

.

WOW!!  a) Japanese yields climb to -.137% and ends up at -.107% this morning. Yields on the 30 yr Japanese bond is barely above zer0.  The yield curve inverts which means that Japan is now in a recession.

(courtesy zero hedge)

( zero hedge)
 
b) Bloomberg’s Mark Cudmore describes how NIRP has totally fired the Japanese economy:

 
(courtesy Mark Cudmore/zero hedge)
 
 
iii) report on China
 
As soon as the bubble burst in the stock market last year, one can easily see where the next bubble surfaced:  housing especially in Tier one cities like Shenzen, Beijing and Shanghai.
With average earnings oof around $1,200 / month how on earth can citizens pay exorbitant prices for homes .  (see stories below).  The answer of course is  the funding of the down payment with Peer to Peer loaning from the shadow banking sector
 
(courtesy zero hedge)
 
4, EUROPEAN AFFAIRS

Catalonia is blackmailing Spain to pay its overdue bank loans. If Spain does no pay then Catalonia defaults sending their entire country into disarray

(courtesy zero hedge)

 

5.RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

The deal ,announced today between the EU and Turkey, does not a chance of working.  But Erdogan certainly receives 3 billion and quite possibly 6 billion euros

( zero hedge)

 

6.GLOBAL ISSUES

 

i)Caterpillar, a terrific stock to measure what is going on in the global economy is signalling an industrial depression yet it’s stock has risen by 30% from its lows. In yesterday’s reporting of earnings, they stated that the bottom has now fallen out and they are in a freefall!

( zero hedge)

ii)And the following is causing major headaches for our central bankers.  As many nations are now in NIRP and the rest at ZIRP or close to it as well as undergoing massive QE, they are finding their currencies rising instead of falling and thus defeating the purpose of stimulating their economies.

( zero hedge)
 
7. EMERGING MARKETS
 

OH OH! Rousseff is defiant as an impeachment vote is set for April

(courtesy zero hedge

 
8. OIL MARKETS
 
i)WTI PLUNGES! OPEC has reached its production limits and Iran continues to increase.
 
( zero hedge)
 
ii)This is interesting:  crude extends it’s losses due to an INCREASE in oil rig counts.  This is the first increase in 3 months

( zero hedge)
 
iii)This is very important news, the contango on oil is collapsing;  the higher price of oil has seen many producers hedge their oil because they do not believe that the price will remain lofty in 2017.  This has caused the contango to collapse.  Contango means higher future prices than spot, so if contango is falling it means the spot is rising against a falling future price.  Contango in oil is essential for storage.  A lower contango will force oil out of storage and flood the market!

 
(courtesy zero hedge)
 
9. PHYSICAL MARKETS
 
i)Silver overnight rose to above $16.00, as the gold/silver ratio tumbled the most in 5 months down to 78 from 81.  The gold/silver ratio has only been higher than 80 on 3 occasions and all 3 of those occasions were periods of extreme turmoil
(zerohedge)
 
ii) An outstanding commentary from Alasdair Macleod as he equates the debt bubble today to the Mississippi bubble of 1716-1720/

a very important read..
(courtesy Alasdair Macleod)
 
iii)The ECB is prepared to go further into NIRP if necessary, it’s chief economist states:( Chan/London’s Telegraph/GATA)
 
iv)Lawrence Williams on gold exports into Switzerland.  Bars are then fabricated into kilobars heading into Mainland China( Lawrie Williams/Sharp’s Pixley)
 
 
10. USA STORIES WHICH MAY INFLUENCE THE PRICE OF GOLD/SILVER 
 
i)The consumer is 70% of GDP and today, we see that the consumer confidence index from the University of Michigan tumbled to a 5 month low of 90 from an expected reading of 92.2.  Not only that, but the “hope’ component tumbles in total contrast to the rise in the stock market. Makes no sense!

( zero hedge/University of Michigan Consumer confidence index)
 
ii)Former bellwether for the luxury goods sector , sees first quarter earnings down 20% as the global economy continues to spiral southbound:( zero hedge)

 

 iii)The USA has two major subprime problems:

a) student loans

b) auto loans

Tonight, the auto delinquencies soar past crisis 2008.

(courtesy zero hedge)

 

iv) Let us end the week with this wrap up courtesy of greg Hunter

( Greg Hunter/USAWatchdog)

 

Let us head over to the comex:

 
 
 
 

The total gold comex open interest rose to 508,262 for a gain of 6711 contracts as the price of gold was up $35.20 in price.  Expect our bankers to undergo relentless attacks on our two precious metals. For the past two years, we have strangely witnessed two interesting developments with respect to the gold open interest:  1) total gold comex collapse in OI as we enter an active delivery month or for that matter an inactive month, and 2) a continual drop in the amount of gold standing in an active month.   Today, only the first scenario was in order as we actually gained in actual ounces of gold standing. The front March contract month saw its OI rise by 1 contract up to 150.We had 0 notices filed upon yesterday, and as such we gained 1 contract or an additional 100 oz will stand for delivery.  After March, the active delivery month of April saw it’s OI rise by 4,152 contracts up to 252,604. This high level is scaring our crooked bankers. The estimated volume today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was 199,049 which is very good..  The confirmed volume yesterday (which includes the volume during regular business hours + access market sales the previous day was  good at 239,272 contracts. The comex is not in backwardation .

 

Today we had 0 notice filed for 100 oz in gold.
 
And now for the wild silver comex results. Silver OI rose by 8985 contracts from 168,505 up to 177,490 as the price of silver was up by 81 cents with yesterday’s trading. The next big active contract month is March and here the OI fell by 40 contracts down to 675 contracts. We had 4 notices served upon yesterday, so we lost 36 contracts or an additional 180,000 ounces will not stand for delivery. The next contract month after March is April and here the OI rose by 5 contracts up to 368.  The next active contract month is May and here the OI rose by 7571 contracts up to 123,500. This level is exceedingly high. The volume on the comex today (just comex) came in at 44,837 , which is very good. The confirmed volume yesterday (comex + globex) was humongous at 86,776. Silver is now not in backwardation at the comex.   In London it is in backwardation for several months.
 
We had 242 notices filed for 20,000 oz.
 

March contract month:

INITIAL standings for MARCH

March 18/2016

Gold
Ounces
Withdrawals from Dealers Inventory in oz   nil
Withdrawals from Customer Inventory in oz  nil 1,662.47 OZbrinks,Scotia

includes 30 kilobars

Deposits to the Dealer Inventory in oz nil
Deposits to the Customer Inventory, in oz  64,300.000 OZ2,000 KILOBARS
No of oz served (contracts) today 0 contract
(nil oz)
No of oz to be served (notices) 150 contracts(15,000  oz)
Total monthly oz gold served (contracts) so far this month  585 contracts (58,500 oz)
Total accumulative withdrawals  of gold from the Dealers inventory this month   nil
Total accumulative withdrawal of gold from the Customer inventory this month 128,670.4 oz
Today, we had 0 dealer transactions
 
total dealer deposit:  nil oz
 
 
we had no dealer withdrawals
 
total dealer withdrawals: nil oz.
 
We had 2 customer withdrawals:
i) Out of Brinks:  697.97 oz
ii) Out of Scotia:  964.500 oz (30 kilobars)
total customer withdrawal:1662.47  oz
 
 
we had 1 customer deposit:
i) we had another of our famous kilobar deposits:
Into Scotia: 64,300.000 oz  (2000 kilobars)
total customer deposit: 64,300.00 oz
 
 
 
 
 
 

we had 1 adjustment:

out of Brinks:

201.65 oz was adjusted out of the dealer and this landed into the customer account.

 

 

.
Today, 0 notices was issued from JPMorgan dealer account and 0 notice were issued from their client or customer account. The total of all issuance by all participants equates to 0 contracts of which 0 notices was stopped (received) by JPMorgan dealer and 0 notices were stopped (received)  by JPMorgan customer account. 
 
To calculate the initial total number of gold ounces standing for the Mar contract month, we take the total number of notices filed so far for the month (585) x 100 oz  or 58,500 oz , to which we  add the difference between the open interest for the front month of March (150 contracts) minus the number of notices served upon today (0) x 100 oz   x 100 oz per contract equals the number of ounces standing.
 
Thus the INITIAL standings for gold for the March. contract month:
No of notices served so far (585) x 100 oz  or ounces + {OI for the front month (150) minus the number of  notices served upon today (0) x 100 oz which equals 73,400 oz standing in this non  active delivery month of March (2.286 tonnes).  This is an excellent showing for gold deliveries in this non active month of March.
 
we gained 14 contracts or  1400 additional gold ounces will stand for March delivery.
 
We thus have 2.286 tonnes of gold standing and 10.449 tonnes of registered gold for sale, waiting to serve upon those standing.  The bankers are still doing their best in cash settling as there is not enough registered gold to satisfy those that are standing.
 
We now have partial evidence of gold settling for last months deliveries We now have 2.286 tonnes (March) + 7.99 (total Feb)- .940 (probable delivery on March 1) tonnes -.0434 tonnes (March 11,12,17,18) = 9.2926 tonnes standing against 10.493 tonnes available.  .
 
Total dealer inventor 335,558.349 oz or 10.439 tonnes
Total gold inventory (dealer and customer) =6,856,956.319 or 213.28 tonnes 
 
Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 213.28 tonnes for a loss of 90 tonnes over that period. 
 
JPMorgan has only 21.16 tonnes of gold total (both dealer and customer)
end
 
 
And now for silver
 

MARCH INITIAL standings/March 18/2016:

Silver
Ounces
Withdrawals from Dealers Inventory nil
Withdrawals from Customer Inventory 54,476.47 oz (Scotia,Brinks,Delaware)
Deposits to the Dealer Inventory 581,753.79 ozCNT
Deposits to the Customer Inventory 18,212.48 ozcnt
No of oz served today (contracts) 242 contracts 1210,000 oz
No of oz to be served (notices) 433  contract (2,165,000 oz)
Total monthly oz silver served (contracts) 971 contracts (4,855,000 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 10,150,743.6 oz

 

today we had 1 deposits into the dealer account

i) into CNT: 581,753.79 oz

total dealer deposit: 581,753.79 oz

we had 0 dealer withdrawals:

total dealer withdrawals:  nil

 

we had 1 customer deposits

 

i) Into CNT:  18,212.48 oz

total customer deposits: 18,212.48  oz

 

We had 3 customer withdrawal:

i) Out of Scotia: 50,421.87 oz

ii) Out of Delaware: 2038.700 oz

iii) Out of Brinks; 2015.85 oz

:

total customer withdrawals:  54,476.420 oz

 
 

 

 we had 1 adjustment

i) Out of CNT:  617,589.34 oz was adjusted out of the customer account and this landed into the dealer account of CNT

 

The total number of notices filed today for the March contract month is represented by 242 contracts for 1210,000 oz. To calculate the number of silver ounces that will stand for delivery in March., we take the total number of notices filed for the month so far at (971) x 5,000 oz  = 4,855,000 oz to which we add the difference between the open interest for the front month of March (675) and the number of notices served upon today (242) x 5000 oz equals the number of ounces standing 
 
Thus the initial standings for silver for the March. contract month:  971 (notices served so far)x 5000 oz +(675{ OI for front month of March ) -number of notices served upon today (242)x 5000 oz  equals  7,020,000 oz of silver standing for the March contract month.
 
 
we lost 36 contracts or an additional 180,000 oz  that will not stand.
 
No doubt this was cash settled as they are running out of real silver.
 
Total dealer silver:  31.691 million
Total number of dealer and customer silver:   155.074 million oz
 
It sure looks like we are going to have a commercial failure in silver.
 
 
 
 
end
 
At 3:30 pm we receive the COT report which shows position levels for our major players.
Let us head over to the gold COT:
 
Gold COT Report – Futures
Large Speculators Commercial Total
Long Short Spreading Long Short Long Short
247,659 78,147 77,007 118,610 304,141 443,276 459,295
Change from Prior Reporting Period
-5,236 62 805 2,117 -7,724 -2,314 -6,857
Traders
175 103 92 49 59 268 216
 
  Small Speculators      
  Long Short Open Interest    
  49,810 33,791 493,086    
  -3,710 833 -6,024    
  non reportable positions Change from the previous reporting period  
COT Gold Report – Positions as of Tuesday, March 15, 2016
Our large speculators:
 
Those large specs that have been long in gold pitched 5236 contracts from their long side.
Those large specs that have been short in gold added a tiny 62 contracts
 
Our Commercials:
Those commercials that have been long in gold added 2117 contracts to their long side
Those commercials that have been short in gold  COVERED 7724  contracts from their short side.  (WOW!!!)
 
Our small specs;
Those small specs that have been long in gold pitched 3710 contracts from their long side
Those small specs that have been short in gold added 833 contracts to their short side.
The data is from last Tuesday March 8 to this past Tuesday March 15.  It does not include the huge gain in gold on Wednesday.
 
 
Conclusions:
what more can I say.  Did the commercials get scared away by covering some of the shorts.  Did they know what the Fed would do on Wednesday? The commercials went net long by 9841 contracts.
 
end
 
And now for our silver COT
 
 
Silver COT Report: Futures
Large Speculators Commercial
Long Short Spreading Long Short
76,606 18,533 19,118 46,447 116,471
-3,273 -1,462 591 -987 -1,778
Traders
91 52 44 35 43
Small Speculators Open Interest Total
Long Short 166,180 Long Short
24,009 12,058 142,171 154,122
-26 -1,046 -3,695 -3,669 -2,649
non reportable positions Positions as of: 144 126
  Tuesday, March 15, 2016   © SilverSeek.co
Our large specs:
 
Those large specs that have been long in silver pitched 3273 contracts from their long side
Those large specs that have been short in silver covered 1462 contracts from their short side.
 
Our Commercials;
 
Those commercials that have been long in silver pitched 987 contracts from their long side
Those commercials that have been short in silver covered 1778 contracts from their short side exactly like our gold commercials
 
Our small specs:
Those small specs that have been long in silver added a tiny 37 contracts to their long side
Those small specs that have been short in silver covered 1080 contracts from their short side.
 
Conclusions: Commercials go net long by 808 contracts.
Are they scared about something?
 
end
 
 
The two ETF’s that I follow are the GLD and SLV. You must be very careful in trading these vehicles as these funds do not have any beneficial gold or silver behind them. They probably have only paper claims and when the dust settles, on a collapse, there will be countless class action lawsuits trying to recover your lost investment.There is now evidence that the GLD and SLV are paper settling on the comex.***I do not think that the GLD will head to zero as we still have some GLD shareholders who think that gold is the right vehicle to be in even though they do not understand the difference between paper gold and physical gold. I can visualize demand coming to the buyers side:i) demand from paper gold shareholders ii) demand from the bankers who then redeem for gold to send this gold onto China
end
 

And now the Gold inventory at the GLD:

 

March 18.I GIVE UP!! WITH GOLD DOWN TODAY, THE CROOKS OVER AT GLD ADDED ANOTHER IDENTICAL 11.89 TONNES OF PAPER GOLD INTO THEIR INVENTORY.

INVENTORY RESTS THIS WEEKEND AT 818.98 TONNES. IF I WAS A SHAREHOLDER OF THIS ENTITY I WOULD BE VERY WORRIED.

 

March 17/we had a whopper of a deposit tonight: 11.89 tonnes/with London in backwardation this is nothing but a paper addition/inventory rests tonight at 807.09 tonnes

March 16.2016:/we had a deposit of 2.09 + 2.97(last in the evening)  tonnes of gold into the GLD/Inventory rests at 795.20 tonnes

March 15/ no changes in gold inventory at the GLD/Inventory rests at 790.14 tonnes

March 14/a huge change in gold inventory at the GLD, a withdrawal of 8.63 tonnes/Inventory rests at 790.14 tonnes

March 11 /despite the high volatility of gold last night and today, somehow the GLD added 5.95 tonnes of gold without disturbing anyone./inventory rests this weekend at 798.77 tonnes

March 10/a deposit of 2.08 tonnes of gold into the GLD/Inventory rests at 702.82 tonnes

March 9/a withdrawal of 2.38 tonnes of gold from the GLD/Inventory rests at 790.74

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

March 18.2016:  inventory rests at 818.98 tonnes

 

end

 

Now the SLV
 
March 18/ANOTHER WHOPPING DEPOSIT OF 2.665 MILLION OZ/INVENTORY RESTS AT 328.533 MILLION OZ
 
March 17/no changes in silver inventory at the SLV/Inventory rests at 325.868 million oz
March 16./no changes in silver inventory at the SLV/Inventory rests at 325.868 million oz
March 15/ no changes in silver inventory at the SLV/Inventory rests at 325.868 million oz/
March 14/we had another huge deposit of 1.903 million oz into the SLV/Inventory rests at 325.868 million oz.
THUS IN TWO DAYS, WE HAVE ADDED A MONSTROUS 3.236 MILLION OZ AND YET THE PRICE OF SILVER GOES DOWN ON TWO MASSIVE RAID DAYS.
March 11/another huge addition of 1.333 million oz of inventory entered the SLV/Inventory rests at 323.965 million oz
March 10/no change in inventory at the SLV/Inventory rests at 322.632 million oz
March 9/no change in inventory at the SLV/Inventory rests at 322.632 million oz/
 
 
.
March 18.2016: Inventory 328.533 million oz
 
.end
 
 
 
1. Central Fund of Canada: traded at Negative 7.7 percent to NAV usa funds and Negative 6.5% to NAV for Cdn funds!!!!
Percentage of fund in gold 63.4%
Percentage of fund in silver:36.6%
cash .0%( Mar 18.2016).
2. Sprott silver fund (PSLV): Premium to NAV falls to  3.94%!!!! NAV (Mar 18.2016) 
3. Sprott gold fund (PHYS): premium to NAV rises  to -0.04% to NAV Mar 18.2016)
Note: Sprott silver trust back  into positive territory at +3.94%/Sprott physical gold trust is back into negative territory at -0.04%/Central fund of Canada’s is still in jail.
  1. Keep stacking the shiny, that is all.

    Paper is what I wipe my ass with, physical silver and gold I stack with my hands.

    You can have the paper and I will take the phizz.

    Spring is in the air. Enjoy life’s simple moments.

    Keep stacking and packing

Leave a Reply