Harvey Organ: Huge Greek Bank Run Begins Now!

Quite a day today. First off the ECB has decided that it will not fund Greece anymore and that should kick off a huge bank run tomorrow.
Let’s head immediately to see the major data points for today:

 

Submitted by Harvey Organ: 

Good evening Ladies and Gentlemen:

Here are the following closes for gold and silver today:

Gold: $1263.60 up $4.10   (comex closing time)
Silver: $17.38 up 7 cents  (comex closing time)

 

 

In the access market 5:15 pm

 

Gold $1269.25
silver $17.38

 

 

Gold/silver trading:  see kitco charts on right side of the commentary.

 

Quite a day today. First off the ECB has decided that it will not fund Greece anymore and that should kick off a huge bank run tomorrow.

Also it did not take the soft peg of the Swiss franc to the Euro at 1.05 to be broken causing more losses for the Swiss national bank.  Then Turkey saw the Turkish lira plummet.  To indicate how bad things are with respect to the global economy we again saw the Baltic Dry Index crash. We have these and many more important stories to relate to you this evening.

 

Following is a brief outline on gold and silver comex figures for today:

 

The gold comex today had a poor delivery day, registering 69 notices served for 6900 oz. We have now seen weak consecutive delivery notice days . Silver comex registered 0 notices for nil oz .

 

Three months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 252.23 tonnes for a loss of 51 tonnes over that period.

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In silver, the open interest surprisingly rose by a huge 4106 contracts despite Tuesday’s silver price was up by only 8 cents. The total silver OI continues to  remain relatively high with today’s reading at 168,486 contracts.

We had 0 notices filed  for nil oz

In gold we  had a good sized drop in OI as gold was down by $16.50 yesterday.  The total comex gold OI rests tonight at 419,524 for a loss of 2,967 contracts. On the first day notice, we have a shocking surprise in that only 55 notices were filed upon.  On this second day notice we again received a tiny 16 notices for 1600 oz. On this third day, only 6 notices and today only 69 contracts.  It seems that the boys are having trouble locating some physical gold.

 

 

Today, we had a huge increase in  tonnage of gold inventory at the GLD/Inventory at 767.93 tonnes

 

In silver, /SLV  adds a rather large 1.149 million oz of silver inventory to the SLV/Inventory 320.463

 

 

We have a few important stories to bring to your attention today…

 

Let’s head immediately to see the major data points for today

.

First: GOFO rates: the crooks are no longer reporting.

 

 

Let us now head over to the comex and assess trading over there today.

Here are today’s comex results:

The total gold comex open interest fell today by a rather large 2,967 contracts from 422,491 down to 419,524 with gold down by $16.50 yesterday (at the comex close).  We are now in the big delivery month of the active February contract  and here the OI fell by 817 contracts  from  2,104 all the way down to 1287. We had only 6 contracts served yesterday.  Thus we lost a huge 811  contracts or 81,100 oz standing for delivery for the February contract and no doubt were bought out with fiat.  The next contract month of March saw it’s OI fall by 20 contracts down to 1199.  The next big active delivery month is April and here the OI fall by 3,120 contracts down to 291,548. The estimated volume today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est)  was awful at 77,428. The confirmed volume yesterday ( which includes the volume during regular business hours  + access market sales the previous day) was fair at 194,637 contracts. However the HFT boys followed the bankers momentum with a huge amount of trading yesterday.Today we had 69 notices filed for 6900 oz .

And now for the wild silver comex results. Silver OI surprisingly rose by 4106 contracts from  164,380 all the way up to 168,486 despite the fact that silver was only up by 8 cents yesterday. The bankers could not shake any silver leaves from the silver tree.  We are now in the non active contract month of February and here the OI rose by 5 contracts up to 42.   We had 16 notices filed yesterday so we gained 21  contracts or 105,000  additional oz will stand for delivery in this February contract month.   The next big active contract month is March and here the OI rose by 518 contracts up to 97,243. The estimated volume today was awful at 17,631 contracts  (just comex sales during regular business hours). The confirmed volume yesterday was excellent (regular plus access market)  at 61,731 contracts. We had 0 notices filed for nil oz today.

February initial standings

 

Feb 4.2015

Gold

Ounces

Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz 32.15 oz (one kilobar) Brinks
Deposits to the Dealer Inventory in oz nil oz
Deposits to the Customer Inventory, in oz 109,310.000  oz (3400 kilobars) Scotia
No of oz served (contracts) today 69 contracts(6900 oz)
No of oz to be served (notices)  1218 contracts ,(121,800 oz)
Total monthly oz gold served (contracts) so far this month  146 contracts(14,600 oz)
Total accumulative withdrawals  of gold from the Dealers inventory this month

Total accumulative withdrawal of gold from the Customer inventory this month

 125.10 oz

Today, we had 0 dealer transactions

we had 0 dealer withdrawals:

total dealer withdrawal: nil oz

 

we had 0 dealer deposits:

total dealer deposit: nil oz

 

we had 0 customer withdrawal

 

total customer withdrawal: nil  oz

 

 

we had 1 customer deposit:

 

i) Into Scotia:  109,310.000  (3400  kilobars)

total customer deposits;  3400 kilobars or 109,310.0000

We had 0 adjustments

 

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 69 contracts of which 0 notices were stopped (received) by JPMorgan dealer and 53 notices were stopped (received) by JPMorgan customer account.

To calculate the total number of gold ounces standing for the December contract month, we take the total number of notices filed for the month (146) x 100 oz  or 14,600 oz , to which we add the difference between the OI for the front month of February (1287 contracts)  minus the number of notices served today x 100 oz (69 contracts) x 100 oz = 136,400 oz, the amount of gold oz standing for the February contract month. 4.24 tonnes)

 

Thus the initial standings:

 

146 (notices filed for the month x( 100 oz) or 14,600 oz + { 1287 (OI for the front month of Feb)- 69 (number of notices served upon today) x 100 oz per contract} = 136,400 oz total number of ounces standing for the February contract month. (4.24 tonnes)

 

 

 

Total dealer inventory: 769,022.858 oz or 23.91 tonnes

Total gold inventory (dealer and customer) = 8.109 million oz. (252.23) tonnes)

 

 

Several weeks ago we had total gold inventory of 303 tonnes, so during this short time period 51 tonnes have been net transferred out. However I believe that the gold that enters the gold comex is not real.  I cannot see continual additions of strictly kilobars.

 

 

 

end

 

 

And now for silver

 

 

 February silver: initial standings

 

 

feb 4 2015:

Silver

Ounces

Withdrawals from Dealers Inventory nil oz
Withdrawals from Customer Inventory 23,360.710  oz (Brinks,HSBC,CNT )
Deposits to the Dealer Inventory  nil
Deposits to the Customer Inventory nil
No of oz served (contracts) 0 contracts  (nil oz)
No of oz to be served (notices) 42 contracts (210,000 oz)
Total monthly oz silver served (contracts) 309 contracts (1,545,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month
Total accumulative withdrawal  of silver from the Customer inventory this month  196,530.0 oz

Today, we had 0 deposit into the dealer account:

total dealer deposit: nil   oz

we had 0 dealer withdrawal:

total dealer withdrawal: nil oz

 

 

We had 0 customer deposits:

 

total customer deposit nil oz

 

 

We had 3 customer withdrawals:

i) Out of CNT:  10,410.86 oz

ii) Out of Brinks: 11,951.900 oz

iii) Out of Delaware: 997.95 oz

total customer withdrawal: 23,360.710 oz

 

we had 1 adjustments

i) out of Delaware: 5,000.000 oz was adjusted out of the dealer and this landed into the customer account of Delaware. how could this be possible?

 

Total dealer inventory: 67.791 million oz

Total of all silver inventory (dealer and customer) 178.021 million oz

.

The total number of notices filed today is represented by 0 contracts for nil oz. To calculate the number of silver ounces that will stand for delivery in January, we take the total number of notices filed for the month (309) x 5,000 oz    = 1,545,000 oz  to which we add the difference between the OI for the front month of February (42)- the number of notices served upon today (0) x 5,000 oz per contract = 1,755,000 oz,  the number of silver oz standing for the February contract month

Initial standings for silver for the February contract month:

309 contracts x 5000 oz= 1,545,000 oz + (42) OI for the front month – (0) number of notices served upon x 5000 oz per contract =  1,755,000 oz, the number of silver ounces standing.

 

we gained 21  contracts or 105,000 oz of additional silver  will not standing for this February contract month

 

It seems that some major entity is after some silver supplies. It looks like they all gave up trying to get physical from the gold comex.

 

 

 

 

 

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

vs no sellers of GLD paper.

 

And now the Gold inventory at the GLD:

 

Feb 4/2015; we had another addition of 2.99 tonnes added to the GLD inventory/Inventory tonight 767.93

 

 

Feb 3.2015: today a withdrawal  of 1.79 tonnes of  gold inventory removed from the GLD/Inventory at  764.94

 

 

feb 2/ a huge addition of 8.36 tonnes of “paper” gold inventory/Inventory tonight at 766.73 tonnes

 

 

jan 30. we had no change in gold inventory/Inventory at 758/37 tonnes

Jan 29/we had an addition of 5.67 tonnes of gold inventory at the GLD/Inventory at 758.37 tonnes

Jan 28/no changes in gold inventory at the GLD/Inventory at 952.44 tonnes

Jan 27.we had a monstrous “paper” addition of 9.26 tonnes of gold into the GLD tonight/Inventory at 952.44 tonnes

Jan 26.2015: another volatile day as they added  1.79 tonnes/743.44 tonnes of gold.

Jan 23/the action at the GLD is very volatile:  today they added 1.20 tonnes of gold to their inventory/Inventory 741.65

Jan 22 no change in gold inventory at the GLD/Inventory 740.45 tonnes

Jan 21.2015: Tonight, we lost 1.79 tonnes of gold from the GLD/Inventory 740.45 tonnes

 

 

 

 

Feb 4/2015 / we had an addition of 2.99 tonnes  of   gold inventory at the GLD/

inventory: 767.93 tonnes.

 

 

 

The registered vaults at the GLD will eventually become a crime scene as real physical gold departs for eastern shores leaving behind paper obligations to the remaining shareholders. There is no doubt in my mind that GLD has nowhere near the gold that say they have and this will eventually lead to the default at the LBMA and then onto the comex in a heartbeat (same banks).

 

 

GLD : 767.93 tonnes.

 

 

 

end

 

 

 

 

And now for silver (SLV):

 

 

Feb 4/we had a small withdrawal of 136,000 oz of silver from the SLV vaults/Inventory/320.327 million oz

 

feb 3.2015: we had a good addition of 1.149 million oz of silver inventory/inventory 320.463 million oz

Feb 2 no change in silver inventory at the SLV/inventory at 319.314

million oz.

jan 30  no change in silver inventory at the SLV/inventory at 319.314

million oz

Jan 29/no change in silver inventory/SLV inventory at 319.314 million oz

Jan 28/no changes in silver inventory/SLV inventory at 319.314 million oz

Jan 27/no change in silver inventory/SLV inventory at 319.314 million oz

Jan 26.2015: no change in silver inventory/SLV inventory at 319.314 million oz

jan 23/2015/ a  huge addition of 1.053 million oz.  This entity is also being quite volatile/Inventory at SLV 319.314 million oz.

Jan 22 a huge reduction of 6.75 million oz/Inventory at 318.261 million oz

Jan 21 no change in silver inventory/Inventory at 325.011 million oz

 

 

 

 

 

feb 4/2015 we had a small withdrawal of 136,000 oz of  silver

SLV inventory registers: 320.327 million oz

 

 

end

 

 

 

And now for our premiums to NAV for the funds I follow:

Note: Sprott silver fund now for the first time into the negative to NAV

Sprott and Central Fund of Canada.
(both of these funds have 100% physical metal behind them and unencumbered and I can vouch for that)

 

1. Central Fund of Canada: traded at Negative  5.3% percent to NAV in usa funds and Negative 5.0 % to NAV for Cdn funds!!!!!!!

Percentage of fund in gold 61.4%

Percentage of fund in silver:38.2%

cash .4%

 

( feb 4/2015)

 

 

2. Sprott silver fund (PSLV): Premium to NAV rises to + 3.37%!!!!! NAV (Feb 4/2015)

3. Sprott gold fund (PHYS): premium to NAV falls to -.13% to NAV(feb 4 /2015)

Note: Sprott silver trust back  into positive territory at +3.37%.

Sprott physical gold trust is back in negative territory at -.13%

Central fund of Canada’s is still in jail.

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