Harvey Organ: HUGE RISE IN COMEX SILVER OPEN INTEREST!

HarveyOrgan1In silver, the open interest rose by 2351 contracts even though Monday’s silver price was down by 3 cents.
The total silver OI continues to remain extremely high with today’s reading at 186,356 contracts now at multi-year highs!

 

Harvey Organ

Submitted by Harvey Organ:

Good evening Ladies and Gentlemen:

 

Here are the following closes for gold and silver today:

Gold:  $1177.30 up $4.10 (comex closing time)

Silver $15.95  unchanged (comex closing time)

 

In the access market 5:15 pm

Gold $1176.30

Silver: $15.97

 

 

 

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

 

At the gold comex today, we had a poor delivery day, registering 0 notices serviced for nil oz.  Silver comex filed with 0 notices for nil oz.

Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 245.82 tonnes for a loss of 57 tonnes over that period.

 

In silver, the open interest rose by 2351 contracts even though Monday’s silver price was down by 3 cents.   The total silver OI continues to remain extremely high with today’s reading at 186,356 contracts now at multi-year highs despite a record low price. This dichotomy has been happening now for quite a while and defies logic. There is no doubt that the silver situation is scaring our bankers to no end.

In silver we had 0 notices served upon for nil oz.

 

In gold,  the total comex gold OI rests tonight at 407,893 for a loss of  contracts despite the fact that gold was up $5.40 on Monday. We had 0 notices filed for nil oz.

 

Late last night, we had no change in gold inventory at the GLD. Thus the inventory rests tonight at 708.70 tonnes. The appetite for gold coming from China is depleting not only gold from the LBMA and GLD but also the comex is bleeding gold.

 

In silver, /we had a huge addition of 3.393 million oz in silver inventory at the SLV/Inventory rests at 323.001 million oz

 

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

1. Today, we had the open interest in silver rise by  contracts despite the fact that silver was down in price by 3 cents on Monday.  The OI for gold fell by 512 contracts down to 407 contracts despite the fact that  the price of gold was up by $5.40 on Monday.

(report Harvey)

2,TF Metals (Craig Hemke) talks about the latest banking participation report

(Turd Ferguson TF Metals report)

3. Today, 2 important commentaries on Greece

zero hedge, Bloomberg)

4. Dave Kranzler of IRD believes that the huge rise in global interest rates has already caused credit derivatives (interest rate swaps) to blow up.

(Dave Kranzler iRD)

5.  The rise in bond yields is now causing huge problems with the junk bond market as many flee the ETF’s

(courtesy Bloomberg)

6.Russia’s Gazprom is now settling in yuan for gas purchases to China instead of dollars.

(zero hedge)

7. The two co CEO’s of Deutsche bank were canned leaving one to believe they have some serious derivative problems.  Today, prosecutors from the city of Wiesbaden raided the central offices of Deutsche bank in Frankfurt.

(/zero hedge)

8. Saudi Minister warns that the Saudis may have to obtain nuclear weapons if they are not satisfied with the Iran nuclear deal

(zero hedge)

 

9. Precious metals trading overnight from Asia/Europe

(Goldcore)

10. Trading from Asia and Europe overnight

(zero hedge)

11. Trading of equities/ New York

(zero hedge)

 

12. HSBC lays off 50,000 workers globally as the economy contracts

(zero hedge)

13.  3 commentaries on the USA housing problems

(Dave Kranzler, IRD,zero hedge)

 

we have these plus other stories to bring your way tonight. But first……..

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 by 512 contracts from 408,405  up to 407,893 despite the fact that  gold was up $5.40 yesterday (at the comex close).  We are now in the big active delivery contract month of June.  Here the OI fell by 23 contracts down to 1074. We had 1 notice served upon yesterday.  Thus we lost 22 contracts or an additional 2200 oz will not stand for delivery.  No doubt, again, we had a huge number of cash settlements and the farce continues.  The next contract month is July and here the OI rose by 266 contracts up to 8.  The next big delivery month after June will be August and here the OI fell slightly by 2 contracts  to 269,770. No doubt that the cash settled June contracts, having been bought out for fiat, rolled into August. The estimated volume today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was poor at 61,209. The confirmed volume on Monday (which includes the volume during regular business hours + access market sales the previous day) was poor at 113,882 contracts. Today we had 0 notices filed for nil oz.

And now for the wild silver comex results.  Silver OI rose by 2351 contracts from 184,005 up to 186,356 despite the fact that the price of silver was down in price by 3 cents, with respect to Monday’s trading.  The front non active  delivery month of June saw it’s OI fall by 6 contract to 35 . We had 6 contracts delivered upon yesterday.  Thus we neither gained nor lost any ounces of silver standing in this non active June contract month. The estimated volume today was poor at 25,82 contracts (just comex sales during regular business hours. The confirmed volume on Monday (regular plus access market) came in at 56,956 contracts which is very good in volume. We had 0 notices filed for nil oz today.

June initial standing

June 9.2015

Gold

Ounces

Withdrawals from Dealers Inventory in oz    nil
Withdrawals from Customer Inventory in oz  nil
Deposits to the Dealer Inventory in oz nil
Deposits to the Customer Inventory, in oz 18,212.757 oz (Delaware,Scotia) includes 500 kilobars
No of oz served (contracts) today 0 contracts (nil oz)
No of oz to be served (notices) 1074 contracts (107,400 oz)
Total monthly oz gold served (contracts) so far this month 2599 contracts(259,900 oz)
Total accumulative withdrawals  of gold from the Dealers inventory this month nil
Total accumulative withdrawal of gold from the Customer inventory this month  81,065.2 oz

Today, we had 0 dealer transaction

 

total Dealer withdrawals: nil oz

 

we had 0 dealer deposit

total dealer deposit: nil oz
we had 0 customer withdrawals

 

total customer withdrawal: nil oz

 

We had 2 customer deposits:

i) Into Delaware:  2137.757 oz

ii) Into Scotia:  16,075.000 oz

Total customer deposit: 18,212.757 oz

 

We had 0  adjustments:

 

 

Today, 0 notices was issued from JPMorgan dealer account and 10 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 were stopped (received) by JPMorgan dealer and 0 notices were stopped (received) by JPMorgan customer account

To calculate the total number of gold ounces standing for the May contract month, we take the total number of notices filed so far for the month (2599) x 100 oz  or 259,900 oz , to which we add the difference between the open interest for the front month of June ( 107) and the number of notices served upon today (0) x 100 oz equals the number of ounces standing.

Thus the initial standings for gold for the June contract month:

No of notices served so far (2599) x 100 oz  or ounces + {OI for the front month (1077) – the number of  notices served upon today (0) x 100 oz which equals 367,300 oz standing so far in this month of June (11.42 tonnes of gold).  Thus we have 11.42 tonnes of gold standing and only 17.07 tonnes of registered or for sale gold is available:

 

Total dealer inventory 548,748.592 or 17.06 tonnes

Total gold inventory (dealer and customer) = 7,903,214.415 (245.82 tonnes)

 

Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 245.82 tonnes for a loss of 57 tonnes over that period.

 

end

 

And now for silver

June silver initial standings

June 9 2015:

Silver

Ounces

Withdrawals from Dealers Inventory nil
Withdrawals from Customer Inventory 777,491.910 oz (CNT,Brinks)
Deposits to the Dealer Inventory  nil
Deposits to the Customer Inventory  1,013,127.78 oz (CNT,JPM,Scotia)
No of oz served (contracts) 0 contracts  (nil oz)
No of oz to be served (notices) 35 contracts(175,000 oz)
Total monthly oz silver served (contracts) 214 contracts (1,070,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month 526,732.4  oz
Total accumulative withdrawal  of silver from the Customer inventory this month 2,446,709.9 oz

Today, we had 0 deposits into the dealer account:

total dealer deposit: nil   oz

 

we had 0 dealer withdrawals:

 

total dealer withdrawal: nil oz

 

We had 2 customer deposits:

i) Into Delaware:  4003.38 oz

ii) Into JPMorgan: 606,844.100 oz

 

 

total customer deposit: 610,847.48  oz

 

We had 2 customer withdrawal:

i) Out of Scotia:  122,372.63 oz

ii) Out of CNT: 634,138.98 oz

total withdrawals from customer;  756,511.610 oz

 

we had 0 adjustment

 

Total dealer inventory: 57.845 million oz

Total of all silver inventory (dealer and customer) 178.729 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 June, we take the total number of notices filed for the month so far at (214) x 5,000 oz  = 1,070,000 oz to which we add the difference between the open interest for the front month of June (35) and the number of notices served upon today (0) x 5000 oz equals the number of ounces standing.

Thus the initial standings for silver for the June contract month:

214 (notices served so far) + { OI for front month of June (35) -number of notices served upon today (0} x 5000 oz ,= 10,875,000 oz of silver standing for the June contract month.

we neither gained nor lost any silver ounces in this non active delivery month of June.

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:

 

June 9/ no change in gold inventory at the GLD/Inventory rests at 708.70 tonnes

June 8/ a big withdrawal of 1.19 tonnes of gold from the GLD/Inventory rests at 708.70 tonnes

June 5/no change in gold inventory at the GLD/Inventory rests at 709.89 tonnes

June 4/ no change in gold inventory at the GLD/Inventory rests at 709.89 tonnes

June 3/late last night: a huge withdrawal of 4.18 tonnes. Tonight’s inventory rests at 709.89

June 2/no change in gold inventory at the GLD/Inventory rests at 714.07 tonnes

June 1/ we had a huge withdrawal of 1.79 tonnes of gold from the GLD/Inventory rests tonight at 714.07 tonnes

May 29/ no changes in gold inventory at the GLD/Inventory rests at 715.86 tonnes

 

June 9 GLD : 708.70  tonnes.

 

end

 

And now for silver (SLV)

June 9/ a monster of an addition to the tune of 3.393 million oz/inventory rests at 323.001 million oz.

June 8/no change in inventory/SLV inventory rests at 319.608 milion oz.

June 5 a huge addition of 1.433 million oz of silver added to the SLV/Inventory at 319.608 million oz

June 4/no change in silver inventory/rests tonight at 318.175 million oz

June 3/ we had a small withdrawal of 138,000 oz of silver inventory/Inventory rests at 318.175 million oz

June 2/ we had a huge addition of 1.243 million oz of silver inventory at the SLV./Inventory rests at 318.313 million oz

June 1/no change in inventory at the SLV/Inventory rests at 317.07 million oz

May 29/no changes in inventory at the SLV/Inventory rests at 317.07 million oz

 

June 9/2015:a huge addition of 3.393 million oz of silver/ inventory at the SLV now rests at 323.001 million oz/ lately silver has been rising at the SLV with a constant price of silver!!

 

end

 

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

 

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 8.1% percent to NAV in usa funds and Negative 7.7% to NAV for Cdn funds!!!!!!!

Percentage of fund in gold 61.4%

Percentage of fund in silver:38.2%

cash .4%

 

( June 9/2015)

 

2. Sprott silver fund (PSLV): Premium to NAV falls to +.28%!!!!! NAV (June 9/2015)

3. Sprott gold fund (PHYS): premium to NAV falls to – .24% to NAV(June 9/2015

Note: Sprott silver trust back  into positive territory at +.28%.

Sprott physical gold trust is back into negative territory at -.24%

Central fund of Canada’s is still in jail.

 

Last week Sprott formally launches its offer for Central Trust gold and Silver Bullion trust:

SII.CN Sprott formally launches previously announced offers to Central GoldTrust (GTU.UT.CN) and Silver Bullion Trust (SBT.UT.CN) unitholders (C$2.64)
Sprott Asset Management has formally commenced its offers to acquire all of the outstanding units of Central GoldTrust and Silver Bullion Trust, respectively, on a NAV to NAV exchange basis.
Note company announced its intent to make the offer on 23-Apr-15 Based on the NAV per unit of Sprott Physical Gold Trust $9.98 and Central GoldTrust $44.36 on 22-May, a unitholder would receive 4.45 Sprott Physical Gold Trust units for each Central GoldTrust unit tendered in the Offer.
Based on the NAV per unit of Sprott Physical Silver Trust $6.66 and Silver Bullion Trust $10.00 on 22-May, a unitholder would receive 1.50 Sprott Physical Silver Trust units for each Silver Bullion Trust unit tendered in the Offer.