goldWhile gold was BOMBED today, the GLD added a MONSTROUS 19 Tonnes to Inventory!

 

Harvey Organ

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

Gold $1209.00

silver: $15.18

 

ON Friday, once the COT report was received I wrote:

“Conclusions: the chance of a huge raid coming next week is 100%”
 
Our criminal bankers did not disappoint me!!
 

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.

(report Harvey)

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)

 
EUROPEAN AFFAIRS
 
i)Sunday afternoon:  The British pound  (Cable) tumbles as the mayor of London will campaign on the BREXIT side of things
 
ii)Sunday afternoon:  The British pound  (Cable) tumbles as the mayor of London will campaign on the BREXIT side of things:
 

(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:

( zero hedge)
 
 

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:

 
( Steen Jakobsen/Saxobank)
 

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:

( zero hedge)
 

vii) This does not bode well for European banking as HSBC records a quarterly loss on lower lending income plus huge bad loan charges:

 
( zero hedge)
 

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

 
i  A.) Turkey is furious at the USA as they state they are acting like the enemy.
Turkey is threatening the USA that they will not be able to utilize the Incirlik airport.
( zero hedge)
2.B)  It sure looks like Turkey and Russia will go to war and that may bring on World War III
(zero hedge)
 

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)

 

GLOBAL ISSUES

 

i)JPMorgan believes that the lower price of oil will cause 500 billion in stocks to be sold this year:

 
( zero hedge, JPMorgan)
 

ii) The two Canadian banks most exposed to a severe oil shock are:

1. CIBC
2. Bank of Nova Scotia
on a default by oil companies, these guys would need to cut their dividend and raise capital.
 
 ( zero hedge)
 

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.

Expect many mining and energy companies to follow BHP’s lead and cut their dividend and cut their CAPEX.  This will do wonders for the employment sector throughout the globe;
( zero hedge)
 

OIL MARKETS

 

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:

( zero hedge)
 
 

iii)The low price of oil is bringing sovereign Iraq to her knees

( Charles Kennedy/Oil price.com)
 

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:

 
(courtesy OPEC/zero hedge)

 
PHYSICAL MARKETS
 

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.

As stated by a participant:
 
“the market changed dramatically in 6 weeks”
 
( zero hedge)
 

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:

 
(Guggenheim/Minerd/zero hedge)
 
 

v)This will become another house of cards of which Fannie and Freddie will end up financing: Only 3% down mortgage program!!

( zero hedge)
 

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.

 

Today we had 75 notices filed for 7500 oz.
 
And now for the wild silver comex results. Silver OI rose by 676 contracts from 174900  up to 175,576 despite the fact that  the price of silver was down by 6 cents with respect to Friday’s trading. The next non active delivery month of February saw its OI fall by 0 contracts remaining at 1. We had 0 notices filed on Friday, so we neither lost nor gained any  silver contracts that will stand in this non active month of February. The next big active contract month is March and here the OI fell by 4,928 contracts down to 60,323.  The volume on the comex today (just comex) came in at 80,609 , which is huge. The confirmed volume yesterday (comex + globex) was huge  at 70,304. Silver is not in backwardation at the comex but is in backwardation in London. First day notice is a week from today, the 29th of February.
 
We had 0 notices filed for nil oz.
 

Feb contract month:

INITIAL standings for FEBRUARY

Feb 22/2016

Gold
Ounces
Withdrawals from Dealers Inventory in oz   nil
Withdrawals from Customer Inventory in oz  nil 64.30 ozManfra

2 kilobars

Deposits to the Dealer Inventory in oz nil
Deposits to the Customer Inventory, in oz    nil
No of oz served (contracts) today 75 contracts
(7500 oz)
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
Today, we had 0 dealer transactions
 
 
total dealer deposit; nil oz
total dealer withdrawals nil.
 
We had 1  customer withdrawals
 
i) Out of Manfra: 64.30 oz
 
total customer withdrawal: 64.30 oz oz
 
we had 0 customer deposits:
 
 
 

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;

.

 JPMorgan has a total of 72,439.454 oz or 2.253 tonnes in its dealer or registered account.
***JPMorgan now has 634,356.528 or 19.731 tonnes in its customer account.
 
Today, 0 notices was issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 75 contracts of which 0 notice 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 Jan contract month, we take the total number of notices filed so far for the month (2410) x 100 oz  or 241,000 oz , to which we  add the difference between the open interest for the front month of February (248 contracts) minus the number of notices served upon today (75) x 100 oz   x 100 oz per contract equals the number of ounces standing.
 
Thus the initial standings for gold for the February. contract month:
No of notices served so far (2410) x 100 oz  or ounces + {OI for the front month (248) minus the number of  notices served upon today (75) x 100 oz which equals 258,300 oz standing in this active delivery month of February (8.0342 tonnes)
 
we gained 3 contracts  or an additional 300 oz will stand for delivery
 
We thus have 8.0342 tonnes of gold standing and 8.9299 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.
 
Total dealer inventor 287,099.323 or 8.9912
Total gold inventory (dealer and customer) =6,669,383.072 or 207.445 tonnes 
 
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. 
 
JPMorgan has only 21.99 tonnes of gold total (both dealer and customer)
end
 
 
And now for silver
 

FEBRUARY INITIAL standings/

feb 22/2016:

Silver
Ounces
Withdrawals from Dealers Inventory nil
Withdrawals from Customer Inventory  1,631,036.308 ozDelaware

CNT,HSBC

Deposits to the Dealer Inventory nil
Deposits to the Customer Inventory 1,623,963.480 ozCNT

Brinks,HSBC

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

We had 3 customer withdrawals:
i) Out of Delaware: 171,900.79 oz
 
ii) Out of CNT:  839,012.75 oz
i11)Out of  HSBC: 1,021,980.390 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

 

The total number of notices filed today for the February contract month is represented by 0 contracts for nil oz. To calculate the number of silver ounces that will stand for delivery in February., we take the total number of notices filed for the month so far at (165) x 5,000 oz  = 825,000 oz to which we add the difference between the open interest for the front month of February (1) and the number of notices served upon today (0) x 5000 oz equals the number of ounces standing (830,000 oz)
 
Thus the initial standings for silver for the February. contract month:
165 (notices served so far)x 5000 oz +(1{ OI for front month of February ) -number of notices served upon today (0)x 5000 oz   equals  830,000 oz of silver standing for the February. contract month.
 
we neither lost nor gained any silver contracts that will  stand in this non active delivery month of February.
 
Total dealer silver:  28.904 million
Total number of dealer and customer silver:   155.195 million oz
 
Question: in a non active month again why so much activity in the silver comex?
 
 
 
 
 
 
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
 

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

 
 
Now the SLV:
Feb 22/ we have a good addition of 666,000 oz into inventory/Inventory rests at 311.618 million oz
FEB 19/no change in inventory/inventory rests at 310.952 million oz
 
FEB 18/no change in inventory/inventory rests at 310.952 million oz
fEB 17/ a huge withdrawal of 1.237 million oz of silver removed from the SLV/Inventory rests at 310.952 million oz.
 
Feb 16.2016: a huge deposit of 3.809 million oz of silver added to the SLV/Inventory rests at 312.189
 
FEB 12 no change in silver inventory/inventory rests this weekend at 308.380 million oz
feb 11/ a withdrawal of 619,000 oz/inventory rests at 308.380 million oz/
Feb 10/no change in inventory at the SLV/rests at 308.999 million oz/
Feb 9/no change in inventory at the SLV/Inventory rests at 308.999 million oz/
Feb 8/no change in inventory at the SLV/Inventory rests at 308.999 million oz
FEB 5/we had no change in silver inventory at the SLV/Inventory rests at 308.999 million oz
 
 
 
Feb 22.2016: Inventory 311.618 million oz.
 
1. Central Fund of Canada: traded at Negative 7.1 percent to NAV usa funds and Negative 6.9% to NAV for Cdn funds!!!!
Percentage of fund in gold 64.0%
Percentage of fund in silver:36.0%
cash .0%( feb 22.2016).
 
2. Sprott silver fund (PSLV): Premium to NAV falls to  +2.36%!!!! NAV (feb 22.2016) 
3. Sprott gold fund (PHYS): premium to NAV falls to +.06% to NAV feb 19/2016)
Note: Sprott silver trust back  into positive territory at +2.36%/Sprott physical gold trust is back into positive territory at +0.06%/Central fund of Canada’s is still in jail.
 
 

 

  1. One thing Harvey noted is that the ETF GLD gobbled up 23 tons of gold in 2 days  WTF.  Really !!??!?!  Bulls****   no way GLD got 23 tons of gold unless they stole it directly from Venezuela   Talk is that Venezuela’s gold was shipped to Swiss for conversion to Kilo bars and then to China

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