FOR THE 3RD STRAIGHT MONTH, NO GOLD GOES TO GERMANY AS FRBNY INVENTORY REMAINS CONSTANT/GOLD AND SILVER HOLD AFTER ANOTHER ATTACK INITIATED LAST NIGHT/OPEN INTEREST IN GOLD AND SILVER REMAIN EXTREMELY ELEVATED/THE CHAIRMAN OF CHINA’S LARGEST STEEL COMPANY HANGS HIMSELF ONE DAY BEFORE BOND MATURES/THE UNEMPLOYMENT RATE IN CHINA CONTINUES TO SOAR/ANCIENT CITY OF PALMYRA SYRIA LIBERATED: PUTIN CONGRATULATES SYRIAN ARMY, OBAMA MUM ON THE ISSUE/ATLANTA FED LOWERS FIRST QUARTER GDP ESTIMATE TO NOW ONLY .6%/CALIFORNIA RAISES MINIMUM WAGE TO $15.00 OVER A SIX YR PERIOD/STATE OF CONNECTICUT GOING AFTER YALE UNIVERSITY’ ENDOWMENT/ILINOIS LOSES BIG SUPREME COURT DECISIO ON PENSION REFORM//MORE HEADACHES FOR VALEANT AS THESE GUYS ARE ONE STEP CLOSER TO BANKRUPTCY
Gold: $1,220.90 down $1.50 (comex closing time)
Silver 15.19 UNCHANGED
In the access market 5:15 pm
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 0 notices for nil oz for the active March delivery month.
Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 212.17 tonnes for a loss of 91 tonnes over that period.
In silver, the open interest FELL by only 1333 contracts DOWN to 170,580 as the silver price was down by 7 cents with respect to Thursday’s trading . In ounces, the OI is still represented by .852 billion oz or 122% of annual global silver production (ex Russia ex China).
In silver we had 0 notices served upon for nil oz.
In gold, the total comex gold OI rose by 306 contracts to 497,522 contracts despite the fact that the price of gold was down $2.30 with Thursday’s trading.(at comex closing). I was expecting a larger contraction in OI in both gold and silver and as such expect continual raids in both metals
we had no changes in the GLD despite gold’s drubbing for the past 3 days/ thus the inventory rests tonight at 823.74 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 tonight, and thus the Inventory rests at 328.914 million oz
First, here is an outline of what will be discussed tonight:
1. Today, we had the open interest in silver fell by 1333 contracts down to 170,580 as the price of silver was down 7 cents with Thursday’s trading. The total OI for gold rose by 306 contracts to 497,522 contracts despite the fact that gold was down $2.30 in price from Thursday’s level.
2 a) Gold trading overnight, Goldcore
2b COT report/
3. ASIAN AFFAIRS
i)Late SUNDAY night/ MONDAY morning: Shanghai closed DOWN BY 21.61 POINTS OR 0.73% , / Hang Sang closed FOR HOLIDAY The Nikkei closed UP 131.62 POINTS OR 0.71% . Australia’s all ordinaires was CLOSED FOR THE HOLIDAY. Chinese yuan (ONSHORE) closed DOWN at 6.5161. Oil ROSE to 39.62 dollars per barrel for WTI and 40.46 for Brent. Stocks in Europe MOSTLY CLOSED FOR HOLIDAY . Offshore yuan trades 6.5222 yuan to the dollar vs 6.5161 for onshore yuan.
REPORT ON JAPAN
REPORT ON CHINA
Friday trading in China:
ii)Yuan weakens for the 6th straight day as China sends a signal to the USA not to raise rates once or less they will massively devalue sending shock waves around the globe.
( zero hedge)
iv) It sure looks like China is preparing for massive layoffs. However they do not want social unrest, so they warn officials that their jobs are on the line with citizens protest:
( zero hedge)
v)Sunday night/Monday morning
Early this morning, we get a report from New York based China Beige Book International, a corporation which tries to give an honest assessment of what is going on in China. It revealed a huge plunge in their unemployment rate to a 4 yr low as China desperately tries to adjust from a smoke-stack export model to a domestic consumption model. Their problem is that they will have million of people unemployed and if China cannot get these people relocated, there will be massive, social unrest:
( zero hedge)
vi)Hugh Hendry is another extremely bright individual and we must always pay attention to what he says. He was invited for a conversation with another brilliant individual by the name of Raoul Pal, a close friend of Grant Williams (Hmmm fame). They have a paid webcast and their thoughts are always enlightening.
Today’s talk was about China. Strangely Hendry went against his host as stated that if China devalues by 20% (to 8 yuan/dollar)” the world is over, everything hits the wall”. He states that the USA dollar will rise to astronomical heights, causing scarcity of that currency together with a collapse of all commodity prices and in turn, a collapse in emerging markets with huge defaults on their sovereign bonds etc.He describes if that happens, China will be king of a MAD MAX world and who would want that? Hendry states that the only way out for China is for a stronger yuan, yet with a high Debt to GDP ratio of 350% he does not know how this is possible.
We now have two competing forces out there on China:
a) Kyle Bass who states that China must devalue
b) Huge Hendry who believes that China can muddle along at current yuan levels as the percentage of world trade has not been hurt at all, despite the lower amounts of world trade.
this is a must see/read.
( zero hedge)
i)SCARY!! Belgian nuclear guard murdered Thursday night and had his access badge stolen.
( ZERO HEDGE)
ii)Like Japan the demographics in Europe is just awful as the birth rate is around 1.5 children per woman. There is just not enough new workers to pay for the retirees
Russian and Middle Eastern Affairs
i) Interesting!!! Jordan blames Turkey for terror in Europe as Erdogan supplied the necessary stuff to ISIS. They also blames Israel for not attacking ISIS on their borders. The Israelis had two enemies right on their border with Syria, Hezbollah and ISIS. Israeli did the correct strategy by letting both of them attack each other and they stayed out of their way:
( zero hedge)
ii) The ancient city of Palmyra has been rescued by Hezbollah forces and Iran. Putin congratulated ASSAD but no congratulatory message was sent by Obama:
( zero hedge)
i) A very important warning from Deutsche bank. They are stating that global trade has lagged behind GDP growth. They actually state that peak global trade occurred in 2007 and has been downhill since. I have always used the Baltic Dry Index as a barometer of global trade and with the index at just above 400, having fallen from 10,000 in 2009, you can visually see the writing on the wall. Thus currency wars to get a little bigger piece of a declining trade is futile
It is now official, the entire surge in price of oil was nothing but the biggest short squeeze ever
( zero hedge)
i)Our good friends over at Barrick are being continuing to be plagued with lawsuits over their failure to bring Pasqua Lama into production.
ii)Doorknobs!! These idiots (New Gold) are hedging again:
( Kovan/NationalPost Toronto)
iii)We have Ted Butler’s latest piece. I am not in agreement with his thesis that JPMorgan has acquired over 500 million physical oz. However if he is right, it is criminal activity to the highest degree: knocking down the price of a commodity so as to acquire it cheaply.
( Ted Butler)
iv) Bill Holter’s latest piece is entitled:
“THE RALLY YOU NEVER SELL!!”
USA STORIES WHICH WILL INFLUENCE THE PRICE OF GOLD/SILVER
i)The final figures for 2015 are now in and the USA GDP came it as expected at 1.4% Corporate profits plunged. However first quarter 2016 is heading southbound in a hurry:
( zero hedge)
ii)Although the TVIX or the double levered long VIX complex falls to record lows, something unusual is happening in that the number of shares outstanding for the TVIX has risen remarkably in a similar fashion to the Blackrock ETF of a few weeks ago. VIX is a volatility index and a rise in volatility means trouble for the market. Is the Dow/NYSE reaching an airpocket?
iii) The so called “restaurant recovery” is now over in the USA as casual dining sales tumble for the 4th straight month. It will be interesting if the BLS reports a higher bartender and waiter increase in jobs to be announced next week
v)Because spending fell with the revised first quarter report, the Atlanta Fed has no choice but to lower its GDP for first quarter to 1% or less:
vii)Thanks to Obamacare, the USA citizens spent the most on health care this last year:
( zero hedge)
viii)The Illinois supreme court rejects Chicago’s Pension reform bid and this sets the stage for Chicago and Illinois’s insolvency:
x)As Connecticut has a huge funding problem as the budget defict surges, they are seeking to tax the Yale University Endowment as a plug:
First Valeant must testify under oath
Second: the firm may have a merger agreement violation on that 1 billion pharmaceutical acquisition of a female libido drug
( zero hedge)
xiii)For your enjoyment a full account of who Valeant rose to great heights from its infancy in 2009 to its now probable ultimate collapse. Stockman states that there are other Valeants trading on the NYSE ready to blow
( David Stockman/ContraCorner)
xiv) Wrap up with Greg Hunter and Dr Paul Craig Roberts
(Greg Hunter/Craig Roberts
Let us head over to the comex:
The total gold comex open interest rose to 497,522 for a gain of 306 contracts despite the fact that the price of gold was down $2.30 in price with respect to Thursday’s trading. I expected a much deeper slide in OI. As I stated before the holiday weekend: “Expect our bankers to undergo relentless attacks on our two precious metals.” They have not disappointed us with their antics. 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, both scenarios were in order. The front March contract month saw its OI fall by 24 contracts down to 28.We had 0 notice filed upon yesterday, and as such we lost 24 contracts or an additional 2400 oz will not stand for delivery. .After March, the active delivery month of April saw it’s OI fall by 26,977 contracts down to 125,328. The estimated volume today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was fair at 208,167. The confirmed volume yesterday (which includes the volume during regular business hours + access market sales the previous day was good at 242,029 contracts. The comex is not in backwardation. First day notice is this Thursday, March 31. The options for the comex is over today. However we still have LBMA options and OTC options which expire March 31.2016.
Today we had 0 notices filed for nil oz in gold.
March contract month:
INITIAL standings for MARCH
|Withdrawals from Dealers Inventory in oz||nil|
|Withdrawals from Customer Inventory in oz nil||64.30 ozbrinks|
|Deposits to the Dealer Inventory in oz||NIL|
|Deposits to the Customer Inventory, in oz||4639.228 ozDelaware,HSBC
|No of oz served (contracts) today||0 contracts
|No of oz to be served (notices)||28 contracts(2800 oz)|
|Total monthly oz gold served (contracts) so far this month||696 contracts (69,600 oz)|
|Total accumulative withdrawals of gold from the Dealers inventory this month||nil|
|Total accumulative withdrawal of gold from the Customer inventory this month||192,293.3 oz|
Today we had 0 dealer deposits
Total dealer deposits; nil oz
Today we had 0 dealer withdrawals:
total dealer withdrawals: nil oz
Today we had 3 customer deposits:
i) Into Delaware: 1812.651 oz
ii) Into HSBC: 897.577 oz
iii) Into Scotia: 1929.000 oz (60 kilobars)
total customer deposits: 4,639.228 oz
Today we had 1 customer withdrawals:
i) Out of Brinks; 64.30 oz 92 kilobars
total customer withdrawals; 64.30 oz
Today we had 0 adjustment:
MARCH INITIAL standings
|Withdrawals from Dealers Inventory||nil|
|Withdrawals from Customer Inventory||218,179.480. ozScotia,CNT,
|Deposits to the Dealer Inventory||nil|
|Deposits to the Customer Inventory||nil|
|No of oz served today (contracts)||0 contractsnil oz|
|No of oz to be served (notices)||116 contracts (580,000, oz)|
|Total monthly oz silver served (contracts)||1199 contracts (5,995,000 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||11,136,487.2 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 0 customer deposits
total customer deposits: nil oz
We had 3 customer withdrawals:
i) Out of Scotia:
ii) Out of CNT: 181,749.000 oz??? How can this be possible?
iii) Out of Brinks:
total customer withdrawals: 218,179.480 oz
we had 1 adjustment
i) Out of CNT: 29,505.43 oz was adjusted out of the customer account and this landed into the dealer account of CNT
|Gold COT Report – Futures|
|Change from Prior Reporting Period|
|non reportable positions||Change from the previous reporting period|
|COT Gold Report – Positions as of||Tuesday, March 22, 2016|
And now for our silver COT:
|Silver COT Report: Futures|
|Small Speculators||Open Interest||Total|
|non reportable positions||Positions as of:||154||123|
|Tuesday, March 22, 2016||© SilverSeek.com|
And now the Gold inventory at the GLD
March 28/no change in inventory at the GLD/Inventory rests at 823.74 tonnes
March 24.2016: a deposit of 2.08 tonnes of gold into its inventory/and this after a big drubbing these past two days??/Inventory rests at 823.74 tones
March 23/no changes at the GLD today despite the gold drubbing. Inventory rests at 821.66 tonnes
March 22./no changes in inventory at the GLD/Inventory rests at 821.66 tonnes
MARCH 21/another big deposit of 2.68 tonnes/inventory rests tonight at 821.66 tonnes
(and this was done with gold down $10.00 today!!)
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 28.2016: inventory rests at 823.74 tonnes