THE SPREAD BETWEEN ONSHORE AND OFFSHORE NARROWS AGAIN AS POBC ATTEMPTS TO STOP USA DOLLARS FROM LEAVING CHINA’S SHORES.
GOLD ADVANCES BY $8.30/SILVER BY 11 CENTS AND SURPASSES BIG RESISTANCE AT 18 DOLLARS/OPEN INTEREST IN SILVER RISES TO 199,000 PLUS CONTRACTS/SOUTH KOREA’S COURT ISSUES AN ARREST WARRANT FOR CEO LEE/CITIZENS IN GREECE REMOVING HUGE AMOUNTS OF EUROS AS THEY ARE FRIGHTENED OF THE STALEMATE WITH RESPECT TO THE NEGOTIATIONS WITH EU AND IMF/MADDOG MATTIS ISSUES ULTIMATUM TO NATO: EITHER SPEND FOR THE DEFENSE OF NATO OR USA WILL PULL FUNDING
Gold at (1:30 am est) $1240.00 UP $8.30
silver was : $18.06: UP 11 CENTS
Access market prices:
THE DAILY GOLD FIX REPORT FROM SHANGHAI AND LONDON
The Shanghai fix is at 10:15 pm est last night and 2:15 am est early this morning
The fix for London is at 5:30 am est (first fix) and 10 am est (second fix)
Thus Shanghai’s second fix corresponds to 195 minutes before London’s first fix.
And now the fix recordings:
Shanghai FIRST morning fix Feb 16/17 (10:15 pm est last night): $ 1243.46
NY ACCESS PRICE: $1235.60 (AT THE EXACT SAME TIME)/premium $8.06
Shanghai SECOND afternoon fix: 2: 15 am est (second fix/early morning):$ 1244.06
NY ACCESS PRICE: $1233.80 (AT THE EXACT SAME TIME/2:15 am)
SPREAD/ 2ND FIX TODAY!!: 10.26
China rejects NY pricing of gold as a fraud/arbitrage will now commence fully
London FIRST Fix: Feb 16/2017: 5:30 am est: $1236.75.75 (NY: same time: $1237.21 (5:30AM)
London Second fix Feb 16.2017: 10 am est: $1240.55(NY same time: $1240.50 (10 am)
It seems that Shanghai pricing is higher than the other two , (NY and London). The spread has been occurring on a regular basis and thus I expect to see arbitrage happening as investors buy the lower priced NY gold and sell to China at the higher price. This should drain the comex.
Also why would mining companies hand in their gold to the comex and receive constantly lower prices. They would be open to lawsuits if they knowingly continue to supply the comex despite the fact that they could be receiving higher prices in Shanghai.
For comex gold:
NOTICES FILINGS FOR FEBRUARY CONTRACT MONTH: 1 NOTICE(S) FOR 100 OZ. TOTAL NOTICES SO FAR: 5125 FOR 512,500 OZ (15.941 TONNES)
For silver: FEBRUARY
24 NOTICES FILED FOR 120,000 OZ/
TOTAL NO OF NOTICES FILED: 406 FOR 2,030,000 OZ
Let us have a look at the data for today
In silver, the total open interest ROSE by 3,865 contracts UP to 199,203 with respect to YESTERDAY’S TRADING. In ounces, the OI is still represented by just less THAN 1 BILLION oz i.e. .996 BILLION TO BE EXACT or 142% of annual global silver production (ex Russia & ex China).
FOR THE NEW FRONT FEBRUARY MONTH: THEY FILED: 24 NOTICE(S) FOR 120,000 OZ
In gold, the total comex gold ROSE BY 5,018 contracts WITH THE RISE IN THE PRICE GOLD ($7.80 with YESTERDAY’S trading ).The total gold OI stands at 420,146 contracts
we had 1 notice(s) filed upon for 100 oz of gold.
With respect to the GLD and the SLV:
We had no change in tonnes of gold at the GLD:
Inventory rests tonight: 843.54 tonnes
we had no changes in silver into the SLV
THE SLV Inventory rests at: 334.713 million oz
First, here is an outline of what will be discussed tonight:
1. Today, we had the open interest in silver ROSE by 3,865 contracts UP to 199,203 AS SILVER WAS UP 8 CENTS with YESTERDAY’S trading. The gold open interest ROSE by 5,018 contracts UP to 420,146 WITH THE RISE IN THE PRICE OF GOLD OF $7.80 (YESTERDAY’S TRADING)
2.a) The Shanghai and London gold fix report
2 b) Gold/silver trading overnight Europe, Goldcore
and in NY: Bloomberg
3. ASIAN AFFAIRS
i)Late WEDNESDAY night/THURSDAY morning: Shanghai closed UP 16.63 POINTS OR .52%/ /Hang Sang CLOSED UP 112.83 POINTS OR 0.47% . The Nikkei closed DOWN 90.45 POINTS OR 0.47% /Australia’s all ordinaires CLOSED UP 0.07%/Chinese yuan (ONSHORE) closed UP at 6.85873/Oil ROSE to 53.39 dollars per barrel for WTI and 56.04 for Brent. Stocks in Europe ALL IN THE RED. Offshore yuan trades 6.8451 yuan to the dollar vs 6.85873 for onshore yuan.THE SPREAD BETWEEN ONSHORE AND OFFSHORE NARROWS AGAIN AS POBC ATTEMPTS TO STOP USA DOLLARS FROM LEAVING CHINA’S SHORES. ONSHORE YUAN STRONGER AS IS OFFSHORE YUAN COUPLED WITH THE WEAKER DOLLAR
REPORT ON JAPAN SOUTH KOREA NORTH KOREA AND CHINA
3a)THAILAND/SOUTH KOREA/NORTH KOREA
South Korea Court has issued an arrest warrant for Samsung’s Lee
b) REPORT ON JAPAN
The banks in Japan are having real trouble with profitability due to negative interest rates. On top of that, they are having a tough time with the B. of J’s communication re their yield curve policy where they are capping the long term rate at 0%.
It seems that the banks in Japan are undergoing Mutiny on the Bounty as they do not trust them one bit. With a debt to GDP of 250% who could blame them
( zero hedge)
c) REPORT ON CHINA
This is not good: rumours are circulating that USA ships will not be allowed to pass through the China South seas.
( zero hedge)
4. EUROPEAN AFFAIRS
A terrific commentary from Mish Shedlock today. He comments on the Chatham House poll which suggests that only 20% of Europe approves of the immigration policy of of the EU. The number one problem in France is the violence/chaos/ created by Muslims. Shedlock suggests that the polls in the upcoming election may have it wrong and that the real support for Le Pen may be much stronger
(courtesy Mish Shedlock/Mishtalk)
Meet the probable new German Chancellor when the elections will be held in Sept/2017
( Bornsdorf/Saxo Bank)
This should be alarming to the EU.
1.In the last 45 days:2.5 billion euros left the bank
2. from the beginning of the crisis in 2011, 120 billion euros have left the bank system
3. from a report in Nov 2015: in the preceding one yr: 45 billion euros have left the banking system of which 36 billion euros never returned.
Ladies and gentlemen; we have another bank run. I guess more controls are coming!
5. RUSSIAN AND MIDDLE EASTERN AFFAIRS
Tillerson meets Lavrov. You can bet that Crimea will be discussed and Russia will no doubt state that this is a non starter:
( zero hedge)
7. OIL ISSUES
8. EMERGING MARKETS
9. PHYSICAL MARKETS
i)Craig Hemke reports that the increase in inflation in the uSA is not sudden at all as the dollar has been depreciating for quite some time
( Craig Hemke/TFMetals)
ii)Agnico Eagle will invest in infrastructure to the too of 1.2 billion dollars in the Canadian Artic:
(COURTESY DANIELLE BOCHOVE/BLOOMBERG)
iii)Seeking alpha is got it right concerning Agnico Eagle. The stock stumbled today despite increasing reserves as well as indicating that they will hit 2.0 million oz of production by 2020
( seeking alpha)
iv)We have been pointing this out to you already this year: Chinese holdings of USA treasuries dropping like a stone
( Bloomberg News/GATA)
v)Trading in the physical markets today: copper and oil booth down due to the world finally perceiving that there is no growth:
vi)John Brimelow reports that premiums of 10 dollars per oz is quite prevalent in the Indian gold market indicating robust demand.
Over at the SGE a whopping 162 tonnes of gold was received on Monday. This is just one day’s report and it is the highest on record. Kranzler comments on the last two trading days with respect to gold as the bullion banks supplied huge quantities of paper gold trying to tame the gold price
( Dave Kranzler/IRD)
i)Initial jobless claims raise but still the lowest levels in many years.
ii)Housing starts disappoints and this is coupled with a huge rise in building permits (driven by rentals).
( zero hedge)
( zero hedge)
iv)The CEO of insurance giant Aetna claims that Obamacare is in a death spiral because of huge premiums and risk polls are deteriorating. This is causing insurance companies pulling out of exchanges:
( zero hedge)
(courtesy zero hedge)
vi)Maddog rejects any military cooperation with Russia especially in Syria
( zero hedge)
vii)UNBELIEVABLE!! Wall Street Journal reports that uSA intelligent officials have withheld information from President Trump due to concerns that it could be leaked or compromised.
what on earth is going on in the USA?
( zero hedge)
ix)Your new Labour secretary and the fellow should be an easy confirmation. However the Donald is still angry on the leaks
Let us head over to the comex:
The total gold comex open interest ROSE BY 5,018 CONTRACTS UP to an OI level of 420,146 WITH THE RISE IN THE PRICE OF GOLD ( $7.80 with YESTERDAY’S trading). We are now in the contract month of FEBRUARY and it is one of the better delivery months of the year. In this next big active delivery month of February we had a LOSS of 110 contracts DOWN to 930. We had 1 notice(s) served upon yesterday and therefore we LOST 109 contracts or an additional 10,900 oz will not stand for delivery and NO DOUBT THEY WERE CASH SETTLED. The next non active contract month of March saw it’s OI RISE by 0 contracts REMAINING AT 2022.The next big active month is April and here the OI ROSE by 3038 contracts UP to 275,116.
We had 1 notice(s) filed upon today for 100 oz
And now for the wild silver comex results. Total silver OI ROSE by 3,865 contracts FROM 195,338 UP TO 199,203 AS THE PRICE OF SILVER ROSE TO THE TUNE OF 8 CENTS with respect to YESTERDAY’S trading. We are moving CLOSER TO the all time record high for silver open interest set on Wednesday August 3/2016: (224,540).
The active month of February saw the OI FALL by 2 contract(s) DOWN TO 148. We had 26 notice(s) served YESTERDAY so we GAINED 24 CONTRACTS or an additional 120,000 oz will stand for delivery.
The next big active delivery month is March and here the OI decrease by 10,389 contracts down to 80,326 contracts. For comparison purposes last year on the same date only 78,261 contracts were standing.
We had 24 notice(s) filed for 120,000 oz for the FEBRUARY contract.
VOLUMES: for the gold comex
Today the estimated volume was 190,451 contracts which is good.
Yesterday’s confirmed volume was 234,771 contracts which is very good
volumes on gold are getting higher!
|Withdrawals from Dealers Inventory in oz||nil|
|Withdrawals from Customer Inventory in oz||
|Deposits to the Dealer Inventory in oz||nil oz|
|Deposits to the Customer Inventory, in oz||
|No of oz served (contracts) today||
|No of oz to be served (notices)||
|Total monthly oz gold served (contracts) so far this month||
|Total accumulative withdrawals of gold from the Dealers inventory this month||NIL oz|
|Total accumulative withdrawal of gold from the Customer inventory this month||207,001.3 oz|
Today, 0 notice(s) were 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 1 contract(s) of which 0 notices were stopped (received) by jPMorgan dealer and 0 notice(s) was (were) stopped/ Received) by jPMorgan customer account.
March 2016: 2.311 tonnes (March is a non delivery month)
|Withdrawals from Dealers Inventory||nil|
|Withdrawals from Customer Inventory||
|Deposits to the Dealer Inventory||
|Deposits to the Customer Inventory||
|No of oz served today (contracts)||
|No of oz to be served (notices)||
|Total monthly oz silver served (contracts)||410 contracts (2,050,000 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||5,911,824.7 oz|
And now the Gold inventory at the GLD
FEB 16/we had no changes in the GLD inventory today/Inventory rests at 843.54 tonnes
Feb 15./another deposit of 2.67 tonnes of gold into the GLD inventory despite another attempted whacking of gold/inventory rests at 843.54 tonnes
FEB 14/another deposit of 4.14 tonnes of gold into the GLD inventory/rests at 840.87 tonnes
FEB 13/another deposit of 4.15 tonnes of gold into the GLD/Inventory rests at 836.73 tonnes
Feb 10/no changes at the GLD/Inventory rests at 832.58 tonnes
feb 9/no changes at the GLD/Inventory rests at 832.58 tonnes
Feb 8/another “deposit” of 5.63 tonnes of gold into the GLD/The addition is a paper addition/total inventory: 832.58 tonnes
Feb 7/another huge fake deposit of 8.30 tonnes of gold into the GLD/the addition is a paper addition and no doubt not physical/ total inventory: 826.95 tonnes
FEB 6/a huge deposit of 7.43 tonnes of gold into the GLD/Inventory rests at 818.65 tonnes
FEB 3/no change in gold inventory at the GLD/Inventory rests at 811.22 tonnes
Feb 2/another huge deposit of 1.48 tonnes/inventory rests at 811.22 tonnes
Feb 1/a huge “deposit” of 10.67 tonnes of gold into the GLD/Inventory rests at 809.74 tonnes. this should stop GLD from sending gold to Shanghai.
JAN 31/no change in gold inventory at the GLD/Inventory rests at 799.07 tonnes
jan 30/no change in gold inventory at the GLD/Inventory rests at 799.07 tonnes
Jan 27/no changes at the GLD/Inventory rests at 799.07 tonnes
Jan 26/no changes at the GLD/Inventory rests at 799.07 tonnes/
jan 25/another exactly the same withdrawal as yesterday: 5.04 tonnes and again this was used in the whacking of gold today/inventory rests at 799.07 tonnes
jan 24/a huge withdrawal of 5.04 tonnes and probably this was used today in the whacking of gold/inventory rests at 804.11 tonnes
Jan 23/a big change/this time a deposit of 1.19 tonnes of gold into the GLD/inventory rests at 809.15 tonnes. The drainage of gold from the GLD to Shanghai has now stopped!
Jan 20/no changes in gold inventory a the GLD/Inventory rests at 807.96 tonnes
Jan 19/no changes in gold inventory at the GLD/Inventory rests at 807.96 tonnes
Jan 18/no changes in gold inventory at the GLD/Inventory rests at 807.96 tonnes
Jan 17/17/a deposit of 2.96 tonnes of gold/inventory at the GLD rests at 807.96 tonnes. I guess there is no more gold inventory to sent to C+Shanghai
Jan 13/17/there were no changes in gold inventory at the GLD/Inventory rests at 805.00 tonnes
Jan 12/2017/no change in gold inventory at the GLD/Inventory rests at 805.00 tonnes
Jan 11/no change in gold inventory at the GLD/Inventory rests at 805.00 tonnes
JAN 10/no changes in gold inventory at the GLD/Inventory rests at 805.00 tonnes
JAN 9/A WITHDRAWAL OF 8.87 TONNES OF GOLD FROM THE GLD/INVENTORY RESTS AT 805.00 TONNES