Gold Bundesbank

I checked last night the gold inventory levels of foreign deposits at the FRBNY.
The account shows that 9.577 tonnes of gold left its vaults, and there is no doubt that this gold belongs to Germany as they are the only official country so far that has asked for it back and has not already received what was wished.

beach ball

Gold & silver are spiking again this morning, continuing their week long rallies that began on the March FOMC statement when the market realized the Fed has no intentions of seriously raising interest rates. 
While silver has already cleared initial resistance at $17, Gold is preparing for a battle at $1200…

Harvey Organ

Several months ago the COMEX had 303 tonnes of total gold.  Today the total inventory rests at 250.04 tonnes for a loss of 53 tonnes over that period.  Lately the removals  have been rising!
Following is a brief outline on gold and silver comex figures for today:

Harvey Organ

We now have our first foreign casualty in the meltdown on Austrian Hypo.
The German bank DuesselHyp, with a tiny writedown of 348 million euros has gone belly up. 

Is this foreshadowing a future nightmare when a tiny write off  of 1.5% of assets creates  a total meltdown of a bank?

Harvey Organ

In silver, the open interest rose Friday by another astonishing 2,745 contracts even though Thursday’s silver price was up by only 8 cents. The total silver OI continues to remain relatively high with today’s reading at 174,702 contracts. The front month of March rose by 4 contracts.
We are now within a whisker of multi year high in the OI near a multi year low price. 
This dichotomy has been happening now for quite a while and defies logic.

warning

The largest source of exported physical goods is China. Demand from other countries for China’s goods is declining, confirmed by the Baltic Dry Index* which is plumbing new lows. This slow-down in economic activity could easily burst the bubble of bank credit, which is in danger of collapsing under the massive burden of bad debts.
The signals are clear: the world has already entered a downturn in economic activity.
Therefore we can expect accelerated money-printing and the imposition of more negative interest rates in a forlorn attempt to avert economic reality.

Both gold and silver are now below their 50 MA as well as their 9 EMA; short and medium term bearish.
Gold needs a close above that 9 EMA as a first step to ending the downtrend.  If gold drops below $1166 (the previous low) it would be quite bearish- that would mark the end of the bullish 4-month “higher lows higher highs” pattern, and that would mark the end of the current medium-term uptrend.

In this excellent interview with Finance & Liberty’s Elijah Johnson, Silver Guru David Morgan provides an updated outlook on gold and silver, & discusses how the global currency war will impact gold and silver.
David Morgan’s full interview is below: