problemIn the words of Bill Murphy of GATA today on remarking on gold’s huge advance in the access market:  “Houston, we have a problem”:

 

Harvey Organ

 

FED’S YELLEN CHICKENS OUT OF INCREASE IN INTEREST RATES/GOLD SKYROCKETS ON FED’S LACK OF ACCOUNTABILITY/GOLD ADVANCES TO $1263.00 IN THE ACCESS MARKET/SILVER TO $15.62/JAPAN SIGNALS IT MAY NOT CANCEL NIRP AS THEY DO ANOTHER U TURN/DEUTSCHE BANK REPORTS THAT IT WILL LOSE MONEY THROUGHOUT 2016 AND THUS IT’S STOCK PLUMMETS ON THE DAY/MORE TROUBLE IN BRAZIL AS ITS CENTRAL BANK HEAD HONCHO MAY LEAVE ON THE APPOINTMENT OF LULA/INSURANCE GIANT MUNICH RE PURCHASES GOLD AND STATES IT IS BECAUSE OF NEGATIVE INTEREST RATES/PEABODY, LARGEST USA COAL MINER MISSES INTEREST RATE PAYMENT AND MAY DECLARE BANKRUPTCY/CHINA AND KAZAKHSTAN WISH TO INCREASE CO OPERATION IN DEVELOPING A PHYSICAL MARKET FOR GOLD

Gold:  $1,229.30 down $1.10    (comex closing time)

Silver 15.21  down 5 cents

In the access market 5:15 pm

Gold $1262.60

silver:  15.62

 

In the words of Bill Murphy of GATA today on remarking on gold’s huge advance in the access market:  “Houston, we have a problem”

The Fed’s credibility has now been shot as Yellen backs away from increasing rates due to global disturbances.

 

 

At the gold comex today, we had a poor delivery day, registering 0 notices for nil ounces and for silver we had 230 notices for 1,150,000 oz for the active March delivery month.

Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 211.33 tonnes for a loss of 92 tonnes over that period.

In silver, the open interest fell by 2055 contracts down  to 166,180  with silver down by 9 cents yesterday. In ounces, the OI is still represented by .831 billion oz or 119% of annual global silver production (ex Russia ex China).

In silver we had 230 notices served upon for 1,150,000 oz.

In gold, the total comex gold OI fell by 6,624  contracts to 493,086 contracts as the price of gold was DOWN $14.00 with yesterday’s trading.(at comex closing). The fall in OI in gold should relieve a little pressure on our bankers.

We had another big change in gold inventory at the GLD, a deposit of 2.09 tonnes/ thus the inventory rests tonight at 792.23 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 no changes in inventory/ and thus the Inventory rests at 325.868 million oz

.

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

 

1. Today, we had the open interest in silver fell by 2055 contracts down to 166,180 as the price of silver was down 26 cents with yesterday’s trading. The total OI for gold fell by 6,624 contracts to 493,086 contracts as gold was down $14.00 in price from yesterday’s level.

(report Harvey)

2 a) Gold trading overnight, Goldcore

(Mark OByrne)

3. ASIAN AFFAIRS

 

i) TUESDAY night/ WEDNESDAY morning: Shanghai closed UP BY 6.11 POINTS OR 0.21% , /  Hang Sang closed DOWN by 31.07 points or  0.15% . The Nikkei closed DOWN 142.62 or 0.83%. Australia’s all ordinaires was UP 0.15%. Chinese yuan (ONSHORE) closed DOWN at 6.5200.   Oil ROSE  to 37.12 dollars per barrel for WTI and 39.38 for Brent. Stocks in Europe so far ALL MIXED . Offshore yuan trades  6.52118 yuan to the dollar vs 6.5200 for onshore yuan/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 (see below). Yesterday China signals that they are going to tax financial transactions

 ii report on Japan and CHINA

Kuroda again does a U Turn:  we are now pack to a potential increase in NIRP: down goes the Yen!  China’s decrease in the offshore yuan ends the short squeeze so Mr Kyle Bass can continue with his shorting!

( zero hedge)

 

iii) The Chinese consumer has been hit hard by the layoffs and the deteriorating conditions inside China:

( zero hedge)
 
 
EUROPEAN AFFAIRS
 
 
 
Yesterday we reported on the horrible results from Jefferies.  Today it is Deutsche bank reporting that it will not be profitable for the entire year.  The stock crashed!!
(courtesy zero hedge)
 
OIL MARKETS
 
 

i) Oil jumps on a supposed new meeting

( zero hedge)

ii) Big  Cushing, Oklahoma build but smaller gasoline draw causes crude to be confused;

( zero hedge)

iii)Oil will not stage a rally until Cushing Ok refining storage levels decline:

 
( Nick Cunningham/Oil Price.com)
 
 Kraken SDBullion

EMERGING MARKETS

 

More trouble in Brazil, as the chief of the Central Bank of Brazil is ready to resign amid the appointment of LULA as chief of staff in Rousseff’s government;

(courtesy zero hedge)

PHYSICAL MARKETS:

i A.  Reuters discusses the huge story of Munich Re purchasing huge quantities of gold.

(courtesy Reuters/Alexander Huebner/in Germany)

 

iB )Why is this not shocking to us;  JPMorgan corners the LME aluminum market

( zero hedge)
 

ii)Peabody, the largest USA coal producer has just skipped an interest payment and now warns of bankruptcy as it’s stock crashes

( zero hedge)
 

iii) Ambrose Evans Pritchard reports on the high USA core inflation as it rears its ugly head. He states that the global cycle is near the danger zone(Ambrose Evans Pritchard/UK Telegraph)

iv)Craig Hemke describes the huge net short position by the criminal commercials as well as the total high OI.  He knows that continue raids are forthcoming:

(courtesy Craig Hemke/TFMetals)
 

v) Moriarty states that Jim Richards is minimizing gold manipulation.  By stating the obvious he is actually emphasizing it:(courtesy Moriarty/321.gold.com/Chris Powell/GATA)

vi)Another biggy!! Kazakhstan and China will now join forces in developing a physical gold for gold;

( Koos Jansen/Bullion star)

 

USA MARKETS WHICH MAY INFLUENCE THE PRICE OF GOLD/SILVER

 

 

i) Housing starts beat expectations but permits slowing down.  This suggests further rent increases are coming in the months ahead:

( zero hedge)

ii) This will not be liked by the Fed as core CPI surges by 2.3% year over year, the biggest jump since Oct 2008.

( zero hedge)
 

iii)The decline in the USA manufacturing sector continues as industrial production

has fallen for its 4th straight month! A worse than expected .5% month over month
( zero hedge)
iv) The following is a must read as Stockman goes into detail the real earnings of the S and P and the phoniness of the non GAAP  as it relates to the true GAAP figures:
 
( David Stockman/contraCorner)
 
v)  The big FOMC decision  5 commentaries
 
a)And now the FOMC results:  Fed boxed in due to global uncertainty!!( zero hedge) 

b The decision:

(zero hedge/the Fed)

 

c)The Fed mouthpiece Sir Jon Hilsenrath hath spoken:

( Jon Hilsenrath/Wall Street Journal)

d)Immediate resultant action:

(zero hedge)
 
e)And the big winner of today’s Fed cowardly event:  GOLD

Faith in the cowardly Fed is fading fast!!
( zero hedge)
 
f)It seems that Goldman’s Brooks is crushing his clients with this predictions as to how to play this market:

( zero hedge)
 
 
Let us head over to the comex:
 
 
 
 

The total gold comex open interest fell to 493,086 for a loss of 6,624 contracts as the price of gold was down $14.00 in price with respect to yesterday’s raid and thus the reason for our bankers relentless attacks on our two precious metals today. 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 5 contracts up to 135.We had 1 notice filed upon yesterday, and as such we gained 6 contracts or an additional 600 oz will stand for delivery.  After March, the active delivery month of April saw it’s OI fall by 8,841 contracts down to 244,484. 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 125,540 which is awful.  The confirmed volume yesterday (which includes the volume during regular business hours + access market sales the previous day was  good at 211,875 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 fell by 2055 contracts from 168,235 down to 166,180 as  the price of silver was down by 26 cents with yesterday’s trading. The next big active contract month is March and here the OI fell by 99 contracts down to 946 contracts. We had 8 notices served upon yesterday, so we lost 91 contracts or an additional 455,000 ounces will not stand for delivery. The next contract month after March is April and here the OI fell by 50 contracts down to 345.  The next active contract month is May and here the OI fell by 1873 contracts down to 114,009. The volume on the comex today (just comex) came in at 27,599 , which is fair. The confirmed volume yesterday (comex + globex) was good at 41,893. Silver is now in backwardation at the comex until May in  which is unbelievable because it is a paper backwardation. In London it is in backwardation for several months.
 
We had 230 notices filed for 1,1500,000 oz.
 

March contract month:

INITIAL standings for MARCH

March 16/2016

Gold
Ounces
Withdrawals from Dealers Inventory in oz   nil
Withdrawals from Customer Inventory in oz  nil 16,139.300 oz(Manfra,Scotia)

502 kilobars

Deposits to the Dealer Inventory in oz nil
Deposits to the Customer Inventory, in oz  nil
No of oz served (contracts) today 0 contract
(nil oz)
No of oz to be served (notices) 135 contracts(13,500  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 127,007.9 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: another of these phony kilobar transactions
i) Out of Scotia:  16,075.000 oz
(500 kilobars)
ii) Out of Manfra 64.30 oz
total customer withdrawal: 16,131.300 oz  502 kilobars
 
 
we had 0 customer deposits:
total customer deposit: nil oz
 
 
 Kraken SDBullion
 
 
 

we had 0 adjustments

.
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 (135 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 (135) minus the number of  notices served upon today (0) x 100 oz which equals 72,000 oz standing in this non  active delivery month of March (2.239 tonnes).  This is an excellent showing for gold deliveries in this non active month of March.
 
we lost 1200 oz of additional gold standing for March delivery.
 
We thus have 2.239 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 2.239 tonnes (March) + 7.99 (total Feb)- .940 (probable delivery on March 1) tonnes -.0434 tonnes (March 11,12) = 9.2456 tonnes standing against 10.493 tonnes available.  .
 
Total dealer inventor 335,959.999 oz or 10.449 tonnes
Total gold inventory (dealer and customer) =6,794,318.789 or 211.33 tonnes 
 
Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 211.33 tonnes for a loss of 92 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 16/2016:

Silver
Ounces
Withdrawals from Dealers Inventory nil
Withdrawals from Customer Inventory  119,851.08 oz (Scotia,CNT/Delaware)
Deposits to the Dealer Inventory nil
Deposits to the Customer Inventory 3121.69 oz(Delaware)
No of oz served today (contracts) 230 contracts 1,150,000 oz
No of oz to be served (notices) 716  contract (3,580,000 oz)
Total monthly oz silver served (contracts) 725 contracts (3,625,000 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 9,174,004.2 oz

Today, we had 0 deposits into the dealer account: 

 

total dealer deposit; nil  oz

we had 0 dealer withdrawals:

total dealer withdrawals:  nil

 

we had 1 customer deposits

i) Into Delaware:  3121.69 oz

total customer deposits: 321.69  oz

We had 3 customer withdrawal:

i) Out of Scotia: 90,942.54 oz

ii) Out of Delaware: 2919.65 oz

iii) Out of CNT; 25,998.89 oz

 

:

total customer withdrawals:  119,851.08 oz

 
 

 

 we had 1 adjustments

i) Out of CNT:

616,449.580 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 230 contracts for 1,150,000 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 (72) x 5,000 oz  = 3,625,000 oz to which we add the difference between the open interest for the front month of March (946) and the number of notices served upon today (230) x 5000 oz equals the number of ounces standing 
 
Thus the initial standings for silver for the March. contract month:  725 (notices served so far)x 5000 oz +(946{ OI for front month of March ) -number of notices served upon today (230)x 5000 oz  equals  7,205,000 oz of silver standing for the March contract month.
 
we lost 59  contracts or an additional 295,000 oz  that will not stand.
No doubt these were cash settled as they are running out of real silver.
 
Total dealer silver:  30.492 million
 
Total number of dealer and customer silver:   155.451 million oz
 
Strange!! this month 5 million oz has moved into the dealer side in an non active delivery month.
 
 
 
 
 
 
 
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 16.2016:/we had a deposit of 2.09 tonnes of gold into the GLD/Inventory rests at 792.23 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

March 8/no changes in inventory at the GLD/Inventory rests at 793.12 tonnes

MARCH 7/a tiny loss of .21 tonnes of gold probably to pay for fees/inventory 793.12 tonnes

MARCH 4/another mammoth sized deposit of 7.13 tonnes of gold into GLD/Inventory rests at 793.33 tonnes.  This is no doubt a “a paper addition” and not physical

MAR 3/another good sized deposit of 2.37 tonnes of gold into the GLD/Inventory rests at 788.57 tonnes

MAR 2/another mammoth paper gold addition of 8.93 tonnes of gold into the GLD/Inventory rests at 786.20 tonnes.

March 1/a mammoth 14.87 tonnes of gold deposit into the GLD/inventory rests at 770.27 tonnes

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

March 16.2016:  inventory rests at 792.23 tonnes

end

 
 
 
 
Now the SLV
 
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 8/no change in inventory at e SLV/Inventory rests at 322.632 million oz
MAR 7/another huge deposit of 2.856 million oz/inventory rests at 322.632 million oz/
MAR 4/another huge deposit of 5.426 million oz /inventory rests at 319.776
MAR 3/a huge deposit of 2.732 million oz/inventory rests at 314.350 million oz
MAR 2/no change in silver inventory/rests tonight at 311.618 million oz
March 1/no change in silver inventory/rests tonight at 311.618 million oz
 
 
.
March 16.2016: Inventory 325/868 million oz.
 
1. Central Fund of Canada: traded at Negative 4.5 percent to NAV usa funds and Negative 6.1% to NAV for Cdn funds!!!!
Percentage of fund in gold 63.9%
Percentage of fund in silver:36.1%
cash .0%( Mar 16.2016).
 
2. Sprott silver fund (PSLV): Premium to NAV rises to  5.41%!!!! NAV (Mar 16.2016) 
3. Sprott gold fund (PHYS): premium to NAV rises  to -0.33% to NAV Mar 16.2016)
Note: Sprott silver trust back  into positive territory at +5.41%/Sprott physical gold trust is back into negative territory at -0.35%/Central fund of Canada’s is still in jail.
 

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