An ALL-OUT EXODUS OF GOLD CONTINUES FROM THE COMEX…
ALMOST 28 TONNES OF GOLD STANDING FOR OCTOBER/EXODUS OF GOLD CONTINUES FROM THE COMEX/SHANGHAI CONTINUES TO LEAD IN THE PRICING OF GOLD AS DUBAI AGREES TO USE THE SHANGHAI FIX AND NOT THE LONDON FIX/DONALD TRUMP INDICATES THAT HE MAY NOT ACCEPT ELECTION DECISION/EXISTING HOME SALES DOWN/PHILLY MFG INDEX DOWN
THE DAILY GOLD FIX REPORT FROM SHANGHAI AND LONDON
The Shanghai fix is at 10:15 pm est and 2:15 am est
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 morning fix OCT 18 (10:15 pm est last night): $ 1276.80
NY ACCESS PRICE: $1271.50 (AT THE EXACT SAME TIME)
Shanghai afternoon fix: 2: 15 am est (second fix/early morning):$ 1274.31
NY ACCESS PRICE: 1269.70 (AT THE EXACT SAME TIME)
HUGE SPREAD TODAY!! 5 dollars
London Fix: OCT 20: 5:30 am est: $1269.20 (NY: same time: $1269.30: 5:30AM)
London Second fix OCT 20: 10 am est: $1271.65 (NY same time: $1271.70 , 10 AM)
Shanghai premium in silver over NY: 87 cents.
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:
10 NOTICES FILED FOR 1000 OZ
for the Oct contract month: 85 notices for 425,000 oz.
Let us have a look at the data for today
In silver, the total open interest ROSE by 3,939 contracts UP to 193,168. The open interest ROSE DRAMATICALLY EVEN as the silver price was UP ONLY 3 cents in yesterday’s trading .In ounces, the OI is still represented by just less THAN 1 BILLION oz i.e. .966 BILLION TO BE EXACT or 138% of annual global silver production (ex Russia &ex China).
In silver for October we had 85 notices served upon for 425,000 oz
In gold, the total comex gold ROSE by 6554 contracts with the RISE in price of gold( $7.10 YESTERDAY) . The total gold OI stands at 503,615 contracts.
With respect to our two criminal funds, the GLD and the SLV:
TODAY WE HAD A HUGE CHANGE AT THE GLD: A DEPOSIT OF 2.94 TONNES
Total gold inventory rests tonight at: 970.17 tonnes of gold
we had a good sized deposit of .855 million oz at the SLV/
THE SLV Inventory rests at: 363.140 million oz
First, here is an outline of what will be discussed tonight:
1. Today, we had the open interest in silver ROSE by 3,939 contracts UP to 193,168 as the price of silver ROSE by 3 cents with yesterday’s gold open interest ROSE by 6,554 contracts UP to 503,615 as the price of gold ROSE $7.10 IN 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 DOWN 0.261 POINTS OR 0.01%/ /Hang Sang closed UP 69.43 POINTS OR 0.30%. The Nikkei closed UP 236.59 POINTS OR 1.59% Australia’s all ordinaires CLOSED UP 0.12% /Chinese yuan (ONSHORE) closed DOWN at 6.7380/Oil FELL to 51.03 dollars per barrel for WTI and 52.15 for Brent. Stocks in Europe: ALL IN THE GREEN Offshore yuan trades 6.7425 yuan to the dollar vs 6.7380 for onshore yuan.THE SPREAD BETWEEN ONSHORE AND OFFSHORE WIDENS A BIT AS MORE USA DOLLARS LEAVE CHINA’S SHORES
REPORT ON JAPAN SOUTH KOREA NORTH KOREA AND CHINA
b) REPORT ON JAPAN
c) REPORT ON CHINA
The USA has just lost a major ally in the Philippines
( zero hedge)
4 EUROPEAN AFFAIRS
i)Bank of England’s chief economist admits that QE is only a temporary benefit and it is more effective as a plunge protection item for stock markets.
( Andy Haldane/Bank of England/zero hedge)
ii)In the bailout agreements, the self employed has higher taxes to pay along with higher social security contributions. Many northern Greek businesses moved their corporations over to Bulgaria where the contributions are lower and the corporate tax is 10% instead of 29%. No wonder Greece is going nowhere!
( zero hedge)
iii)As expected, the ECB keeps its rates unchanged. Now comes the press conference:
iv)The Euro jumps higher as stocks fall as Draghi suggests that QE cannot last forever. He stated that the ECB has not discussed an extension of QE beyond March.( zero hedge)
v)Just take a look at the ECB’s balance sheet: a massive bubble!
( zero hedge)
5. RUSSIAN AND MIDDLE EASTERN AFFAIRS
Nigeria caught in a bind as they lower their official oil price by $1.00. They state that there is a huge cargo glut playing havoc to the oil market
(courtesy zero hedge)
i)The ECB is urging the EU to curb virtual money e.g. bitcoin for fear of losing control:
ii)This story was brought to your attention before but it is worth repeating: Gold in India trades at a premium for the first time in 9 months
iii)Lawrie Williams states the following facts;
- the SGE is gaining in strength and they are now leading the pact in gold price
- the Dubai gold exchange is now contracted with the SGE in gold pricing and not the London Bullion Association
- Shanghai and India has seen their premiums to spot gold rise
- Shanghai is negotiating with other exchanges to use their fix as opposed to the London fix.
looks like the London fix is doomed!
( Lawrie Williams/Sharp’s Pixley)
iv)An update on the Chinese inclusion into the iMF’s SDR currency pricing:
( Steve St Angelo/Tom Cloud/SRSRocco report)
10.USA STORIES WHICH MAY INFLUENCE THE PRICE OF GOLD/SILVER
i)The key event at last night’s debate was Trump suggesting that he may not accept the decision of voters on Nov 8
( zero hedge)
ii)California’s Attorney General launches a criminal probe into Wells Fargo over fake identity theft and other stuff
iii)[email protected]!! Initial claims jump over 5% this week to 260,000. Finally the poor data on the USA economy is finally catching up to the BLS’s faulty data releases over the past year:
( BLS/zero hedge)
iv)USA consumer confidence tumbles to its lowest levels since 2015:
( zero hedge)
v)Another indicator showing low growth in the USA” existing home sales down:
( zero hedge)
vi)The Philly Mfg index trends lower
vii)Now it is Ambrose Evans Pritchard that is sounding the alarm bells for a huge USA recession:
He sites these important points:
1.the USA has engaged in multiple reverse repos as they remove liquidity from the system (as they prepare for raising rates in Dec). He claims that this is not a good time to raise rates.
2.Global GDP has been in a steady fall these past 2 yrs.
3. total debt denominated in dollars outside the UDS has risen to 9.8 trillion this yr.
4. and this has caused 3 month euro dollars rates to rise to almost 1%.
storm clouds gathering!
(courtesy Ambrose Evans Pritchard/UKTelegraph).
Let us head over to the comex:
The total gold comex open interest ROSE BY 6,554 CONTRACTS to an OI level of 503,615 as the price of gold ROSE $7.10 with YESTERDAY’S trading.
We are in the delivery month is October and here the OI GAINED 180 contracts UP to 180. We had 11 notices filed yesterday so we GAINED 191 contract or 19,100 additional oz will stand for delivery.
The next delivery month is November and here the OI FELL by 143 contract(s) DOWN to 2861 contracts. This level is extremely elevated as generally November is a very poor delivery give you an idea of size, on Oct 19 2015, we had an OI of only 266 next contract month and the biggest of the year is December and here this month showed an increase of 4991 contracts up to 372,212.
And now for the wild silver comex results. Total silver OI ROSE BY 3,939 contracts from 189,229 up to 193,168 as the price of silver ROSE to the tune of 3 cents yesterday. We are moving further from the all time record high for silver open interest set on Wednesday August 3: (224,540). The next non active delivery month is October and here the OI rose by 5 contracts up to 168. We had 0 notices filed yesterday so we gained 5 contracts or 25,000 additional oz will stand for November contract month saw its OI LOSE 1 contract DOWN to 328. The next major delivery month is December and here it ROSE BY 1,746 contracts UP to 150,923.
we had 85 notices filed for 425,000 oz
Today the estimated volume was 141,102 contracts which is fair.
Yesterday, the confirmed volume was 149,892,006 which is also fair.
today we had 1 notice filed for 5,000 oz of silver:
|Withdrawals from Dealers Inventory in oz||NIL|
|Withdrawals from Customer Inventory in oz nil||
|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||oz|
|Total accumulative withdrawal of gold from the Customer inventory this month||318,473.3 oz|
Today, 0 notices were issued from JPMorgan dealer account and 0 notices were issued form their client or customer account. The total of all issuance by all participants equates to 10 contracts of which 0 notices were stopped (received) by jPMorgan dealer and 3 notice(s) was (were) stopped received) by jPMorgan customer account.
|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)||441 contracts (2,205,000 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||5,191,804.6 oz|
NPV for Sprott and Central Fund of Canada
Central fund data not available today.