GLD “ADDS” A MONSTROUS 19.33 TONNES TO ITS INVENTORY/SILVER ADDS 666,000 OZ TO ITS INVENTORY/GOLD BOMBED 20 DOLLARS TODAY/GOLD AND SILVER OI AT THE COMEX CONTINUES TO RISE/BRITISH POUND TUMBLES AS MAYOR OF LONDON GOES TO THE EXIT SIDE/HSBC RECORDS A QUARTERLY LOSS/BHP BILLITON SLASHES DIVIDEND AS WELL AS CUT CAPEX AS EARNINGS FALL BY 92%/TROUBLES CONTINUE FOR VALEANT AS THEY ARE GOING TO RESTATE EARNINGS/WITH NIRP FIRMLY IN PLACE IN JAPAN, CITIZENS ARE BUYING SAFES TO PUT THEIR YEN SO THEY WOULD NOT HAVE TO PLACE THEM IN THE BANKS/PMI’S THROUGHOUT THE GLOBE PLUMMET: FIRST CHINA, THEN EUROPE, THEN USA/
Gold: $1,209.50 down 20.90 (comex closing time)
Silver 15.18 down 19 cents
In the access market 5:15 pm
ON Friday, once the COT report was received I wrote:
At the gold comex today, we had a GOOD delivery day, registering 75 notices for 7500 ounces. Silver saw 0 notices for NIL oz.
Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 207.44 tonnes for a loss of 96 tonnes over that period.
In silver, the open interest rose by 676 contracts up to 175,576. In ounces, the OI is still represented by .878 billion oz or 125% 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 a large 1672 contracts to 442,125 contracts as the price of gold was up $4.30 with Friday’s trading.(at comex closing)
We had another mammoth addition in gold inventory at the GLD,this time a huge deposit of 19.33 tonnes of gold / thus the inventory rests tonight at 732.99 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 another addition in inventory to the tune of 666,000 iz and thus the Inventory rests at 311.618 million oz.
First, here is an outline of what will be discussed tonight:
1. Today, we had the open interest in silver rose by 676 contracts up to 175,576 as the price of silver was up 6 cents with Friday’s trading. The total OI for gold rose by 676 contracts to 442,125 contracts as gold rose by $4.30 in price from Friday’s level.
2 a) Gold trading overnight, Goldcore
3. ASIAN AFFAIRS
i)Late SUNDAY night/ MONDAY morning: Shanghai closed UP slightly BY 67.71 POINTS OR 2.37 / Hang Sang closed UP by 178.59 points or 0.93% . The Nikkei closed UP 143.88 or 0.90%. Australia’s all ordinaires was down 0.98%. Chinese yuan (ONSHORE) closed down at 6.5209. Oil GAINED to 30.81 dollars per barrel for WTI and 34.30 for Brent. Stocks in Europe so far deeply in the GREEN . Offshore yuan trades 6.5246 yuan to the dollar vs 6.5200 for onshore yuan/
ii) The NIRP policy in Japan causes many Japanese citizens to buy safes so store their yen.Also in Switzerland we witness a 17% increase in the circulation of 1,000 Swiss franc notes also because of NIRP in that country
( zero hedge)
(courtesy zero hedge)
iii)And the official story showing Johnson stating that he will campaign for the UK to leave the European Union:
( zero hedge)
iv) Monday morning: The Pound crashes:
v)Steen Jakobsen explains what Brexit really means. It certainly looks like immigration will the huge issue and may tip the scales to the no side along with the declining economy in Britain:
vi) The Danish Central bank head claims that monetary policy has no more positive effect on its economy. It is certainly correct. However other central bankers do not agree as they start on the path of NIRP and a cashless society:
vii) This does not bode well for European banking as HSBC records a quarterly loss on lower lending income plus huge bad loan charges:
viii) We have highlighted to you, lower PMI in China and in the EU. Now we witness the powerful German manufacturing sector faltering and this is a good indicator as to how the world is suffering from a lack of aggregate demand.(courtesy zero hedge)
RUSSIAN AND MIDDLE EASTERN AFFAIRS
ii) Multiple suicide attacks in the ancient city of HOMS a predominately Shiite stronghold by ISIS and then the threat that Damascas is next:( zero hedge)
i)JPMorgan believes that the lower price of oil will cause 500 billion in stocks to be sold this year:
ii) The two Canadian banks most exposed to a severe oil shock are:
iii)After the market closed; the giant BHP Billiton slashed its dividend by 3/4 on a huge 92% profit plunge. They they announced a 4.9 billion shale oil writedown.
i)Banks are selling energy loans at cents on the dollar to ensure their own survival.
We have a word for this: PANIC
( zero hedge)
ii) Oil jumps to 33$ despite IEA glut and warnings from Abu Dhabi`s biggest bank that 20 dollar oil is possible. Oil ramps higher in sympathy with the higher USA:Yen ramp:
iii)The low price of oil is bringing sovereign Iraq to her knees
iv) Amazing, the price of oil continues to rise against the markets huge overhang of supply: Just take in what El Badri is crying out:
i) Thirty six tonnes of gold has been traced from Venezuela to Switzerland. It is here that the gold is made in kilobars and then onto China:(courtesy Koos Jansen)
ii) Andrew Maguire has noted that now it is physical purchases of gold that is thwarting the gold suppression scheme
( Andrew Magure/Kingworldnews/Eric King)
iii) Next weekend is the G20 meeting. Will there be a reset in the gold price?
( zero hedge/GATA)
iv)Doug Pollitt of Toronto states that an order for 30 tonnes will be troublesome to obtan and create havoc for our gold shorters:
( Doug Pollitt/GATA)
v) And finally we have Bill Holter delivering a huge commentary:
It is entitled:
“Something changed, maybe the G-20 will tell us?”
vi)Lawrence Williams of Sharp’s Pixley asks a terrific question this morning as to how the ETF’s could purchase 33 tonnes of gold on Friday and then on Sunday night/Monday morning, gold is sold down by 20 dollars ?
(courtesy Williams/Sharp’s pixley)
vii)Lawrence Williams reports that the actual increase in gold reserves by Russia in January is 21.8 tonnes and not 700,00 oz
( Lawrence Williams/Sharp’s Pixley)
USA STORIES WHICH WILL INFLUENCE THE PRICE OF GOLD/SILVER
i)What a novel idea: let’s check withholding taxes and see if they are rising with an increase in the supposed job front. Trimtabs have been doing these calculations and state that taxes withheld are stalling and so is the USA economy
( zero hedge)
ii) Remember CLO’s in the last financial debacle that occurred in 2008? Well they are baaack…. as the equity NAV value of 348 of their debt instruments fall below zero.
iii) Early this morning China announced a drop in their PMI and then Europe. It seems that the entire globe is seeing their manufacturing sector plummet. And then came the USA and they also announced a very weak PMI. However what is most damaging in the USA is the decline in the service PMI. Remember it is the service industry that is 70% of GDP:
( zero hedge)
iv)Bond yields fell today despite the higher Dow/ S and P. This does not bode well for the market. The author gives 3 explanations as to why bond rates are heading lower:
v)This will become another house of cards of which Fannie and Freddie will end up financing: Only 3% down mortgage program!!
Let us head over to the comex:
The total gold comex open interest rose to 1672 for a gain of 1672 contracts as the price of gold was up $4.30 in price with respect to yesterday’s trading. 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, and 2) a continual drop in the amount of gold standing in an active month. Today, both scenarios were in order. In February the OI fell by 30 contracts down to 248. We had 3 notices filed on yesterday, so we lost 27 contracts or an additional 2700 oz will not stand for delivery. The next non active delivery month of March saw its OI fall by 36 contracts down to 1946. After March, the active delivery month of April saw it’s OI rise by 651 contracts up to 307,474. The estimated volume today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was 200,624 which is fair. The confirmed volume yesterday (which includes the volume during regular business hours + access market sales the previous day was fair at 194,228 contracts. The comex is in backwardation until March.
Feb contract month:
INITIAL standings for FEBRUARY
|Withdrawals from Dealers Inventory in oz||nil|
|Withdrawals from Customer Inventory in oz nil||64.30 ozManfra
|Deposits to the Dealer Inventory in oz||nil|
|Deposits to the Customer Inventory, in oz||nil|
|No of oz served (contracts) today||75 contracts
|No of oz to be served (notices)||173 contracts (17,300 oz )|
|Total monthly oz gold served (contracts) so far this month||2410 contracts (241,000 oz)|
|Total accumulative withdrawals of gold from the Dealers inventory this month||nil|
|Total accumulative withdrawal of gold from the Customer inventory this month||531,649.4 oz|
we had 1 adjustment
i) Out of Scotia:
6,387.547 oz was adjusted out of the customer and this landed in the dealer account of scotia;
FEBRUARY INITIAL standings/
|Withdrawals from Dealers Inventory||nil|
|Withdrawals from Customer Inventory|| 1,631,036.308 ozDelaware
|Deposits to the Dealer Inventory||nil|
|Deposits to the Customer Inventory||1,623,963.480 ozCNT
|No of oz served today (contracts)||0 contracts nil oz|
|No of oz to be served (notices)||1 contract (5,000 oz)|
|Total monthly oz silver served (contracts)||165 contracts (825,000 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||14,994,008.0 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 3 customer deposits:
i) Into CNT: 1007.89 oz
ii) Into Brinks: 600,975.200 oz
iii) Into HSBC 1,21,980.390 oz
total customer deposits: 1,623,963.480 oz
total withdrawals from customer account 1,623,963.480 oz
we had 1 adjustment:
Out of Delaware:
i) we had 5,101.300 oz removed from the dealer account and this landed into the customer account of Delaware
And now the Gold inventory at the GLD:
Feb 22/A huge addition of 19.33 tonnes of gold to its inventory/Inventory rests at 732.96 tonnes/ How could this happen: a huge addition of gold coupled with a huge downfall of 20 dollars in gold.
FEB 19/a huge deposit of 2.68 tonnes of gold into the GLD/Inventory rests at 713.63 tonnes
fEB 18/no change in gold inventory at the GLD/Inventory rests at 710.95 tonnes
fEB 17/no change in gold inventory at the GLD/Inventory rests at 710.95 tonnes
Feb 16.a huge withdrawal of 5.06 tonnes from the GLD/the loss was probably a paper loss/inventory at 710.95 tonnes
fEB 12/ a huge deposit of 11.98 tonnes/inventory rests at 716.01 tonnes. With gold in severe backwardation in London, I really believe that the gold added was paper gold and not real pbhysical/
Feb 11/no change in inventory/inventory rests at 702.03 tonnes
Feb 10/ a withdrawal of 1.49 tonnes of gold from the GLD/Inventory rests at 702.03 tonnes
Feb 9./a huge addition of 5.06 tonnes of gold into the GLD/Inventory rests at 703.52 tonnes/ (no doubt that this addition is paper gold/not physical/
Feb 8/no change in inventory/inventory rests at 698.46 tonnes
FEB 5/another massive 4.84 tonnes added to the GLD/Inventory rests at 698.46 tonnes/this is a paper gold addition and this vehicle is nothing but a fraud. There is no metal behind it.
Feb 22.2016: inventory rests at 732.96 tonnes