Harvey Organ: COMEX Players Are Refusing Fiat & Demanding Only Physical Metal!

gold or fiatThe amount standing for gold at the comex in May is simply outstanding at 6.886 tonnes. The previous May 2015, we had only .08 tonnes standing so you can certainly witness the difference as the demand for gold by investors/sovereigns is on a torrid pace. This makes the excitement for June gold that much more intense as more players are refusing fiat and demanding only physical metal.
JAPAN’S TANKEN MFG SURVEY AT DISMAL 3 YR LOWS/CHINA FURIOUS AT THE USA FOR INTRODUCING HUGE TARIFFS AGAINST CORROSION RESISTANT STEEL/SPAIN’S BANCO POPULARE PLUMMETS 20% ON A RIGHTS OFFERING AS THIS TROUBLED BANK TRIES TO SHORE UP ITS FINANCES

2016 Silver Eagles Sale

 

Good evening Ladies and Gentlemen:

Gold:  $1,220.50 DOWN $3.25    (comex closing time)

Silver 16.34  UP 8 cents

 

In the access market 5:15 pm

Gold $1220.20

silver:  16.32

 

i) the May gold contract is a non active contract.  Yet we started the month with 5.67 tonnes of gold standing and it has increased every single day and today sits at 6.886 tonnes of gold standing:

The amount standing for gold at the comex in May is simply outstanding at 6.886 tonnes. The previous May 2015, we had only .08 tonnes standing so you can certainly witness the difference as the demand for gold by investors/sovereigns is on a torrid pace. This makes the excitement for June gold that much more intense as more players are refusing fiat and demanding only physical metal.

I will be reporting daily as to how which is standing for delivery through the active month of June.  June is the second largest delivery month after December.

Despite the whacking of silver, it’s OI refused to decline like gold. Our bankers and the CFTC are “quite baffled” by this. We are now in our 6th year of high open interest in silver with a low price.  This has never happened before.

If I am a betting man, it looks to me like China is the long taking delivery in gold and they are the longs waiting patiently to strike in silver.

Let us have a look at the data for today

.

At the gold comex today we had a POOR delivery day, registering 0 notices for NIL ounces for gold,and for silver we had 19 notices for 95,000 oz for the non active May delivery month.

Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 256.189 tonnes for a loss of 47 tonnes over that period

.

In silver, the open interest FELL by 1793 contracts DOWN to 201,889 DESPITE THE FACT THAT THE PRICE OF SILVER WAS UP by  2 cents with respect to YESTERDAY’S trading..In ounces, the OI is still represented by just over 1 BILLION oz i.e. .1.009 BILLION TO BE EXACT or 144% of annual global silver production (ex Russia &ex China)

In silver we had 19 notices served upon for 95,000 oz.

In gold, the total comex gold OI fell by a CONSIDERABLE 17,864 contracts DOWN to 525,094 as the price of gold was DOWN $5.40 with yesterday’s trading(at comex closing). They certainly got the liquidation in gold but not silver.

 

With respect to our two criminal funds, the GLD and the SLV:

We had no change in gold inventory at the GLD  The inventory rests at 868.66 tonnes. .

We had no change in silver inventory at the SLV/Inventory rests at 335.739 million oz

.

First, here is an outline of what will be discussed tonight:

1. Today, we had the open interest in silver FALL by 1793 contracts DOWN to 201,889 as the price of silver was UP by 2 cents with YESTERDAY’S trading. The gold open interest FELL by 17,864 contracts as  gold was down $5.40 yesterday. Somebody big is standing FOR SILVER and surrounding the comex with paper longs ready to ponce once called upon to take out physical silver.I also believe that for the first time we are witnessing players wishing to stand for real physical in gold.  Gold investors, in the May contract month, are refusing the tempting fiat offer as they want only physical.

(report Harvey).

 

2 a) Gold trading overnight, Goldcore

(Mark OByrne/off today

2b)  Gold trading earlier this morning;

(Mark O’byrne)

3. ASIAN AFFAIRS

i)Late  WEDNESDAY night/ THURSDAY morning: Shanghai closed UP  BY 7.37 PTS OR 0.26%  /  Hang Sang closed UP 29.06 OR 0.14%. The Nikkei closed UP 15.11 POINTS OR 0.09% . Australia’s all ordinaires  CLOSED UP 0.29% Chinese yuan (ONSHORE) closed UP at 6.5576 .  Oil ROSE to 49.88 dollars per barrel for WTI and 50.15 for Brent. Stocks in Europe MOSTLY IN THE GREEN . Offshore yuan trades  6.5611 yuan to the dollar vs 6.5576 for onshore yuan.THE SPREAD BETWEEN ONSHORE AND OFFSHORE WIDENS A BIT.

REPORT ON JAPAN  SOUTH KOREA AND CHINA

a) REPORT ON JAPAN

From Reuters:

 

The all important Tankan manufacturing sentiment was released and it was at a 3 year low:

 “Tankan manufacturing sentiment at three-year low: The Reuters Tankan sentiment index for manufacturers fell to 2 in May from 10 in April, driven by exporting industries, with the survey projection pointing to 5 in August. According to the report, the service sector index fell to 19 in May from 23 in April, weighed by retailers, while the survey projection points to 18 in August. The story attributes the decline to the rising yen’s impact on exporters as well as domestic demand via tourism spending”

b) REPORT ON CHINA

i)Here are some comments on what will happen inside China. I strongly believe that the correct response is Daiwa.

The author believes hat the yuan will fall to 7.5 to the dollar, something that Kyle Bass and Soc Gen agree.  They believe that the FX reserves will fall to below 2 trillion dollars in 2 years.

( Daiwa/zero hedge)

 

ii)Late this afternoon we get word that the USA will add a huge 450% anti dumping duties on corrosion resistant steel.  China is absolutely furious!

( zero hedge)

 

4.EUROPEAN AFFAIRS

Spain’s 7th largest bank Banco Popular saw its shares plummet by 20% as there is a new rights offering trying to shore up its balance sheet.  The bank now must issue over 2 billion of new shares.  The low interest environment is killing this bank along with all of the others:

(courtesy Business Recorder and special thanks to Mark. W for sending this to me)

5.RUSSIAN AND MIDDLE EASTERN AFFAIRS

Saudi officials crack down on the futures contract in the Saudi Riyal as it falters four months out.  This could lead to a huge black swan event.  If the dollar continues to rise, the peg will suffer more and this would cause oil ( a commodity) to fall with the rise in the dollar.  Massive USA dollars leaves the Kingdom which itself causes problems.  Thus the Saudi’s must devalue their riyal, something they do not wish to do.  However if they devalue then there will be a run on all mid-eastern currencies as they must devalue also to stay competitive.

( zero hedge)

 

6.GLOBAL ISSUES

David Stockman comments on the intensifying global reflation ripping apart the globe.

a must read..

( David Stockman/ContraCorner)

7.OIL ISSUES

i)Nigeria has a new terrorist group attacking oil facilities. Today  Niger Delta Avengers (NDA)  pre-announced a morning raid on Chevon and sure enough it is off line.  Nigeria is in deep financial trouble;

( zero hedge)

ii)Oil tops 50 dollars for the first time since October

( zero hedge)

 

iii)With rising oil prices and with the Saudis worried about Iran, Cunningham is betting the farm that the oil freeze is over and they will all pump at full blast

( Cunningham/Oil Price.com)

8.EMERGING MARKETS

none today

 570x400_ATB_HarpersFerry

9. PHYSICAL MARKETS

i)A great graphic of the London Gold Market and where gold is stored.  This is a repat from two weeks ago but it is worth repeating.

( Bullion star/Ronan Manly)

ii)Nick Barisheff cannot figure out why billionaires are buying ETF’s like GLD which probably has no gold and not buying his bulllion fund which is 100% allocated like Central Fund and Sprott

(courtesy  GATA/Barisheff)
iii)A major Japanese electronics maker approached First Majestic Silver Corp. for the first time last month seeking to lock in future stock, a sign of supply concerns that could boost the metal’s price ninefold, according to the best-performing producer of the metal.

“For an electronics manufacturer to come directly to us — that tells me something is changing in the market,” said Keith Neumeyer, chief executive officer of First Majestic, the top stock in Canada and among its global peers this year. “I think we’ll see three-digit silver,” he said, predicting the metal could surge to $140 an ounce by as early as 2019.

(courtesy Bloomberg)

USA STORIES WHICH MAY INFLUENCE THE PRICE OF GOLD/SILVER

i)Core durables slump which sends the dollar reeling:

( zero hedge)

Let us head over to the comex:

The total gold comex open interest FELL to an OI level of 525,094 for a CONSIDERABLE LOSS of 17,864 contracts AS THE PRICE OF GOLD WAS DOWN $5.40 with respect to YESTERDAY’S TRADING.  We are now entering the NON active delivery month of MAY. For the past two years, we have strangely witnessed two interesting developments and we have generally seen two phenomena happen respect to the gold open interest:  1) total gold comex collapses in OI as we enter any delivery month  and 2) a continual drop in the amount of gold standing in that month as that month progresses. IT SURE SEEMS THAT THE LATER HAS STOPPED. ACTUALLY WE HAVE WITNESSING A GRADUAL RISE IN AMOUNT STANDING THROUGH THE MONTH.  THE MONTH OF May saw its OI fall by  53 contracts DOWN to 18. We had 53 notices filed YESTERDAY so we NEITHER GAINED NOR LOST ANY gold contracts that  will stand for delivery in this non active delivery month of May. We have started the month with 5.6 tonnes and gained in ounces standing everyday but two which remained neutral. The next big active gold contract is June and here the OI FELL by 43,769 contracts DOWN to 88,374 as those paper players that wished to stay in the game rolled to August AND THE REST EITHER STAYED PUT FOR NOW OR LEFT PERMANENTLY. The estimated volume today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was excellent at 24,672. The confirmed volume  yesterday (which includes the volume during regular business hours + access market sales the previous day was EXCELLENT at 467,470 contracts if many rollovers. The comex is not in backwardation. We are two trading days away from first day notice, the reading tomorrow and the reading on Tuesday which in reality is Friday’s as we are always 24 hrs back.

(THIS MONDAY IS MEMORIAL DAY AND THERE WILL BE NO USA TRADING.  THUS ONLY 2 TRADING DAYS REMAIN.

Today we had 0 notices filed for NIL oz in gold.

 

And now for the wild silver comex results. Silver OI FELL by 1,793 contracts from 203,682 DOWN to 201,889 despite the fact that the price of silver was UP BY 2 cents with YESTERDAY’S TRADING. For the first time in over 2 years, we have not witnessed a liquidation of open interest as we ENTERED first day notice .  The next active contract month is May and here the OI FELL by 12 contracts DOWN to 576. We had only 5 notices filed yesterday so we LOST 7 SILVER CONTRACTS OR AN ADDITIONAL 35,000 OZ WILL NOT  stand in this non-active delivery month of May. The next non active month of June saw its OI FALL by 58 contracts DOWN to 599 OI. The next big delivery month is July and here the OI fell by 1,710 contracts DOWN to 132,065. The volume on the comex today (just comex) came in at 47,641 which is  GOOD. The confirmed volume YESTERDAY (comex + globex) was VERY GOOD at 55,201. Silver is  in backwardation up to June AND A LITTLE DEEPER. London is in backwardation for several months.
 
We had 19 notices filed for 95,000 oz.
 

MAY contract month:

INITIAL standings for MAY

May 26.
Gold
Ounces
Withdrawals from Dealers Inventory in oz   nil
Withdrawals from Customer Inventory in oz  nil  NIL
Deposits to the Dealer Inventory in oz 22,472.85 OZBRINKS

 

699 KILOBARS

Deposits to the Customer Inventory, in oz    177.039.37 ozBRINKS,SCOTIA

INCL. 251 KILOBARS

 

No of oz served (contracts) today 0 contracts
(NIL oz)
No of oz to be served (notices) 18 CONTRACTS1800 OZ
Total monthly oz gold served (contracts) so far this month 2196 contracts (219,600 oz)
Total accumulative withdrawals  of gold from the Dealers inventory this month   nil
Total accumulative withdrawal of gold from the Customer inventory this month  365,954.4 OZ

Today we had 1 dealer deposits

i) into the dealer Brinks:  22,472.85 oz 699 KILOBARS

total dealer deposit:  31,936.63 0z  699 KILOBARS

Today we had 0 dealer withdrawals:

total dealer withdrawals:  nil oz

Today we had 2 customer depositS:

 

i) Into BRINKS: 8969.65 oz  or (251 kilobars)

ii) Into Scotia:  168,969.72 oz

Total customer deposits;  177,039.37 OZ

Today we had 0 customer withdrawals:

 

total customer withdrawals: NIL OZ

Today we had 0 adjustment:

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 0 contracts of which 0 notices 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 MAY contract month, we take the total number of notices filed so far for the month (2196) x 100 oz  or 219,600 oz , to which we  add the difference between the open interest for the front month of MAY (18 CONTRACTS) minus the number of notices served upon today (0) x 100 oz   x 100 oz per contract equals 221,400 oz, the number of ounces standing in this non active month.  This number is huge for May. IT NOW SEEMS THAT THE AMOUNT STANDING FOR GOLD IN MAY WILL HOLD AND WITH THAT IT WILL BRING MUCH EXCITEMENT TO JUNE 
 
Thus the initial standings for gold for the MAY. contract month:
No of notices served so far (2196) x 100 oz  or ounces + {OI for the front month (18) minus the number of  notices served upon today (0) x 100 oz which equals 221,400 oz standing in this non  active delivery month of MAY(6.886 tonnes).
WE NEITHER GAINED NOR LOST ANY GOLD OZ STANDING IN THIS NON DELIVERY MONTH OF MAY.
Since the comex allows GLD shares to be used for settling, it may take quite a while for the physical gold to enter the comex vaults.  So far I have seen little evidence of any settling of contracts but I will continue to monitor it for you. 
 
We thus have 6.886 tonnes of gold standing for MAY and 22.311 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.
We now have partial evidence of gold settling for last months deliveries We now have 6.886 TONNES FOR MAY + 12.3917 tonnes (April) +2.2311 tonnes (March) + 7.99 (total Feb)- .940 (probable delivery on March 1) tonnes -.0434 tonnes (March 11,12,17,18) + March 31: 1.2470 and then  April 1,2: – .0006 tonnes  and last week April 16 .3203 and April 22 .(0009 tonnes) + april 29  .205 tonnes + May 5:  3.799 and May 6: 1.607 tonnes – MAY 12  .0003- May 18: 1.5635 tonnes-May 19/   2.535 tonnes  = 17.232 tonnes still standing against 22.311 tonnes available.
2016 Silver Eagles Sale
 
Total dealer inventor 717,303.903 tonnes or 22.311 tonnes
Total gold inventory (dealer and customer) =8,236,460.621 or 256.189 tonnes 
 
Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 249.98 tonnes for a loss of 47 tonnes over that period. 
 
JPMorgan has only 22.79 tonnes of gold total (both dealer and customer)
JPMorgan now has only .900 tonnes left in its dealer account.
May is not a very good delivery month and yet 6.886 tonnes of gold is standing.  What is different from other months is that the bankers cannot offer any fiat to those standing. They want the real stuff. We are extremely close to the all time highs in both gold and silver OI.
 
 end
And now for silver
 

MAY INITIAL standings

 May 26.2016

Silver
Ounces
Withdrawals from Dealers Inventory nl oz
Withdrawals from Customer Inventory  10,042.68 ozBRINKS
Deposits to the Dealer Inventory nil oz
Deposits to the Customer Inventory  nil
No of oz served today (contracts) 19 CONTRACTS 95,000 OZ
No of oz to be served (notices) 557 contracts2,275,000 oz
Total monthly oz silver served (contracts) 2164 contracts (10,820,000 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  9,774,692.8 oz

today we had 0 deposit into the dealer account

total dealer deposit:nil oz

we had 0 dealer withdrawals:

total dealer withdrawals:  nil

we had 0 customer deposits:

Total customer deposits: nil oz.

 

We had 1 customer withdrawals

i) out of BRINKS: 10,042.68 oz

:

total customer withdrawals:  10,042.68 oz

 
 SilverMapleSDBullion

 

 we had 1 adjustment

 

ii) out of DELAWARE

9,610.161 oz was adjusted out of the customer and this landed into the dealer account of DELAWARE

The total number of notices filed today for the MAY contract month is represented by 19 contracts for 95,000 oz. To calculate the number of silver ounces that will stand for delivery in May., we take the total number of notices filed for the month so far at (2164) x 5,000 oz  = 10,820,000 oz to which we add the difference between the open interest for the front month of MAY (576) and the number of notices served upon today (19) x 5000 oz equals the number of ounces standing 
 
Thus the initial standings for silver for the MAY contract month:  2164 (notices served so far)x 5000 oz +{576 OI for front month of MAY ) -number of notices served upon today (19)x 5000 oz  equals 13,605,000 oz of silver standing for the MAY contract month.
TODAY, WE LOST 7 CONTRACTS OR AN ADDITIONAL 35,000 OZ WILL NOT STAND FOR DELIVERY.
 
Total dealer silver:  30.124 million
Total number of dealer and customer silver:   153.647 million oz
The open interest on silver is NOW AT CLOSE an all time high with the record of 207,394 being set May 18.2016. The registered silver (dealer silver) is close to multi year lows as silver is being drawn out and heading to China and other destinations. The shear movement of silver into and out of the vaults signify that something is going on in silver.
The reason for the raid today in both gold and silver is probably for the following 4 reasons:
1. The  options expiry for comex ENDED YESTERDAY. HOWEVER  THE OTC AND LBMA OPTIONS HAVE EXPIRY ON MAY 31.20116 AT AROUND NOON OUR TIME.
2. the stranglehold on the May front gold contract month
2. the continued drama in high silver OI
4. potential problem for the bankers in June gold.
end
And now the Gold inventory at the GLD
May 26./no change at the GLD/Inventory rests at 868.66 tonnes
May 25./no change in gold inventory at the GLD/Inventory rests at 868.66 tonnes
MAY 24/ a good sized withdrawal of 3.86 tonnes of paper gold from the GLD/Inventory rests at 868.66 tonnes
May 23./this is rather impossible: another huge deposit of 3.26 tonnes into the GLD with the price of gold down again today?/inventory rests at 872.52 tonnes
May 20/what!!!A MONSTER DEPOSIT OF :8.92 TONNES OF GOLD INTO THE GLD INVENTORY/AND WITH GOLD DOWN $2.80??/INVENTORY RESTS AT 869.26
May 19/ANOTHER HUGE DEPOSIT OF 4.46 TONNES OF GOLD INTO THE GLD/iNVENTORY RESTS AT 860.34 TONNES
May 18 /no changes in inventory at the GLD/Inventory rests at 855.89 tonnes.
May 17/ we had a huge deposit of 4.76 tonnes of gold into the GLD/Inventory rests tonight at 855.89 tonnes/in the last two and 1/2 weeks we have added 50 tonnes of gold and this most likely was all paper gold addition..
May 16./ today we had no changes in inventory at the GLD/Inventory rests at 851.13 tonnes
May 13./another addition of 5.94 tonnes of gold into the GLD/Inventory rests at 851.13 tonnes
May 12/another huge deposit of 3.27 tonnes in gold inventory at the GLD/inventory rests at 845.19 tonnes
May 11/another huge deposit of 2.67 tonnes in gold inventory at the GLD/Inventory rests at 841.92 tonnes
May 10/Another huge deposit of 2.38 tonnes in gold inventory at the GLD/Inventory rests at 839.25 tonnes
May 9/Surprisingly we had another deposit of 2.68 tonnes of gold into the GLD with gold down!! Inventory 836.87 tonnes
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

May 26.:  inventory rests tonight at 868.52 tonnes

end

Now the SLV Inventory
May 26./ no change in silver inventory at the SLV/Inventory rests at 335.739 million oz
May 25./no change in silver inventory at the SLV/Inventory rests at 335.739
MAY 24/no change in inventory at the SLV/Inventory rests at 335.739 million oz
May 23./we had a small withdrawal of 285,000 oz and that generally means payment of fees.Inventory rests at 335.739 million oz
May 20/WE HAD A GOOD SIZED DEPOSIT OF 951,000 OZ INTO THE SLV/INVENTORY RESTS AT 336.024 MILLION OZ
May 19/no changes in silver inventory at the SLV/Inventory rests at 335.073 million oz
May 18/no changes in silver inventory at the SLV/Inventory rests at 335.073 million oz/
May 17/no change in silver inventory at the SLV/Inventory rests at 335.073 million oz/
May 16./no changes in silver inventory at the SLV/Inventory rests at 335.073 million oz
May 13./no change in silver inventory at the SLV/inventory rests at 335.073 million oz
May 12/no change in silver inventory/rests tonight at 335.073 million oz/
 May 11.2016/no change in silver inventory/rests tonight at 335.073 million oz/
May 10.2016/we had a huge withdrawal of 1.046 million oz in silver leaving the SLV,no doubt for Shanghai which lately has been gobbling up whatever inventory it could lay its hands on/Inventory rests at 335.073 million oz.
May 9. no change in silver inventory/rests at 336.119 million oz.
.
May 26.2016: Inventory 335.739 million oz
end

NPV for Sprott and Central Fund of Canada

will update on this site later tonight/

 Kraken SDBullion
1. Central Fund of Canada: traded at Negative 5.0 percent to NAV usa funds and Negative 4.7% to NAV for Cdn funds!!!!
Percentage of fund in gold 61.8%
Percentage of fund in silver:36.8%
cash .+1.4%( May 25/2016). /no data today
2. Sprott silver fund (PSLV): Premium rises  to -0.14%!!!! NAV (MAY 26.2016) 
3. Sprott gold fund (PHYS): premium to NAV  rises TO +0.57% to NAV  ( MAY 26.2016)
Note: Sprott silver trust back  into NEGATIVE territory at -14% /Sprott physical gold trust is back into positive territory at +0.57%/Central fund of Canada’s is still in jail.
It looks like Eric Sprott got on the nerves of our bankers as they lowered the premium in silver to -0.14%.  Remember that Eric is to get 75 million dollars worth of silver in a new offering.