Harvey Organ: London is Out of Gold!

There is now no question that London is out of gold as London gets deeper into backwardation.
China’s major source of gold will now be the FRBNY.

 

Harvey Organ

Submitted by Harvey Organ:

Good evening Ladies and Gentlemen:
Here are the following closes for gold and silver today:

 

Gold:  $1186.80 up $12.30 (comex closing time)

Silver $16.42 up 31 cents (comex closing time)

 

In the access market 5:15 pm

Gold $1188.06

Silver: $16.40

 

 

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 1 notice serviced for 100 oz.  Silver comex filed with 143 notices for 715,000 oz

 

Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 241.14 tonnes for a loss of 62 tonnes over that period. Lately the removals have been rising.

 

In silver, the open interest fell again by 1,049 contracts as Friday’s silver price was down by 2 cents.  The total silver OI continues to remain extremely high with today’s reading at 177,810 contracts maintaining itself near 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 715 notices served upon for 715,000 oz.

 

 

In gold,  the total comex gold OI rests tonight at 410,701 for a gain of 446 contracts despite the fact  gold was down by $7.90 on Friday. We had 1 notice served upon for 100 oz.

 

 

Today, we no change in gold inventory at the GLD /  Gold Inventory rests at 741.75  tonnes. There is now no question that London is out of gold as London gets deeper into backwardation. China’s major source of gold will now be the FRBNY. China’s demand for gold this week: 51 tonnes.

empty-vault

In silver, /  /we had no change in  silver inventory to the SLV/ and thus the inventory tonight is 327.673 million oz

 

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

 

1. Today we had the open interest in silver fall by 1049 contracts as the silver was down in price on Friday.  The OI for gold rose by 446 contracts up to 410,701 contracts as the price of gold was down by $7.90 on Friday. GLD and SLV  remained constant with respect to the inventory levels.

(report Harvey)

 

2,Two important commentaries on Greece today:

i) an official for the European union states that it would be foolish to believe that Greece will not fail

ii) the IMF set to separate from the Troika/expect the ECB to announce haircuts to collateral provided by Greek banks to the Central Bank of Greece to the benefit of the ECB.

(zero hedge)

3. Australia to introduce a tax on savings

(Martin Armstrong)

4. Bill Holter’s commentary tonight on gold backwardation

5, USA factory orders down for 5th straight month

(zero hedge)

6. Dow Chemical fires 1750 workers and the market rejoices???

(zero hedge)

7. Lawrence Williams; gold demand for this week into China:  51 tonnes

(Lawrence Williams/Mineweb)

we have these and other stories for you tonight

 

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 rose by 496 contracts from 410,255 up to 410,701 despite the fact that gold was down by $7.90 on Friday (at the comex close).  We are in our next non active delivery month of May and here the OI rose by 1 contract rising to 227. We had zero notices filed on Friday.  Thus we gained 1 gold contract or an additional 100 ounces will stand for gold in May. The next big active delivery contract month is June and here the OI fell by 1,967 contracts down to 258,421. June is the second biggest delivery month on the comex gold calendar. The estimated volume today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was poor at 68,671. The confirmed volume yesterday ( which includes the volume during regular business hours + access market sales the previous day) was poor at 134,231 contracts. Today we had 1 notice filed for 100 oz.

 

And now for the wild silver comex results.  Silver OI fell by 1049 contracts from 178,859 down to 177810 as the price of silver was down in price by 2 cents, with respect to Friday’s trading. We are into the active delivery month of May. In our May delivery month the OI fell by 479 contracts down to 1248. We had 302 contracts filed upon with respect to Friday.  So we lost 177 contracts or 885,000 oz will not stand for delivery in this May delivery month. The estimated volume today was poor at 24,456 contracts (just comex sales during regular business hours. The confirmed volume yesterday (regular plus access market) came in at 35,658 contracts which is fair in volume. We had 143 notices filed for 715,000 oz today.

 

 

may initial standings

May 4.2015

 

Gold

Ounces

Withdrawals from Dealers Inventory in oz  nil
Withdrawals from Customer Inventory in oz  33,484.181 oz (HsBC. Manfra,Scotia)
Deposits to the Dealer Inventory in oz nil
Deposits to the Customer Inventory, in oz nil
No of oz served (contracts) today 1 contracts (100 oz)
No of oz to be served (notices)  226 contracts(22,600) oz
Total monthly oz gold served (contracts) so far this month 1 contracts(100 oz)
Total accumulative withdrawals  of gold from the Dealers inventory this month  nil
Total accumulative withdrawal of gold from the Customer inventory this month  33,484.181 oz

Today, we had 0 dealer transaction

 

 

 

Today, we had 0 dealer transaction

total Dealer withdrawals: nil oz

 

we had 0 dealer deposit

 

total dealer deposit: nil oz

 

we had 3 customer withdrawals

 i) Out of HSBC; 300.165 oz

ii) Out of Manfra; 32.15 oz

iii) Out of Scotia: 33,151.866 oz

 

total customer withdrawal: 33,484.181 oz

 

 

 

 

 

total customer deposit: nil oz

 

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 1 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 (1) x 100 oz  or 100 oz , to which we add the difference between the open interest for the front month of May (227) and the number of notices served upon today (1) x 100 oz equals the number of ounces standing.

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

No of notices served so far (1) x 100 oz  or ounces + {OI for the front month (227) – the number of  notices served upon today (1) x 100 oz which equals 22,700 oz standing so far in this month of May. (.706 tonnes of gold)

 

 

 

Total dealer inventory: 571,168.307 or 17.76 tonnes

Total gold inventory (dealer and customer) = 7,762,270.993. (241.14) tonnes)

 

 

Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 241.14 tonnes for a loss of 62 tonnes over that period. Lately the removals  have been rising!

 

end

 

 

And now for silver

 

May silver initial standings

May 4 2015:

Silver

Ounces

Withdrawals from Dealers Inventory nil oz
Withdrawals from Customer Inventory 60,139.45 oz (Scotia)
Deposits to the Dealer Inventory  33,830.400 (CNT
Deposits to the Customer Inventory 991.35 oz (CNT)
No of oz served (contracts) 143 contracts  (715,000 oz)
No of oz to be served (notices) 1105 contracts (5,525,000 oz)
Total monthly oz silver served (contracts) 1926 contracts (9,630,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month  nil
Total accumulative withdrawal  of silver from the Customer inventory this month 1,293,211.0  oz

 

Today, we had 1 deposits into the dealer account:

i) Into CNT: 33,830.400 oz

total dealer deposit: 33,830.400   oz

 

we had 0 dealer withdrawal:

total dealer withdrawal: nil oz

 

We had 1 customer deposits:

i) Into CNT:  991.35 oz

 

 

total customer deposits: 991.35  oz

We had 1 customer withdrawals:

i) Out of Scotia: 60,139.45 oz

 

total withdrawals;  60,139.45 oz

we had 0 adjustments:

 

 

Total dealer inventory: 62.205 million oz

Total of all silver inventory (dealer and customer) 174.654 million oz

.

The total number of notices filed today is represented by 143 contracts for 715,000 oz. To calculate the number of silver ounces that will stand for delivery in April, we take the total number of notices filed for the month so far at (1926) x 5,000 oz  = 9,630,000 oz to which we add the difference between the open interest for the front month of April (1248) and the number of notices served upon today (143) x 5000 oz equals the number of ounces standing.

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

1926 (notices served so far) + { OI for front month of April(1248) -number of notices served upon today (143} x 5000 oz = 15,155,000 oz of silver standing for the May contract month.

we lost 177 contracts or 885,000 oz will not stand for delivery.

 

Eagle

 

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:

may 4/no change in gold inventory at the GLD./741.75 tonnes

May 1/ we had a huge addition of 2.69 tonnes of gold into the GLD/Inventory rests tonight at 741.75 tonnes

 

April 30/ no change in gold inventory/739.06 tonnes of gold at the GLD

April 29/no change in gold inventory/739.06 tonnes of gold at the GLD

April 28/ no change in inventory/739.06 tonnes of gold at the GLD

April 27. we lost 3.29 tonnes of gold inventory at the GLD/Inventory rests tonight at 739.06 tonnes

April 24. no changes in gold inventory at the GLD/Inventory at 742.35 tonnes

April 23. no changes in gold inventory at the GLD/inventory at 742.35 tonnes

April 22. no changes in gold inventory at the GLD/inventory at 742.35 tonnes

April 21.2015: a huge addition of 3.26 tonnes of gold inventory at the GLD/Inventory rests at 742.35 tonnes

April 20.2015: no change in gold inventory at the GLD/Inventory rests at 739.06 tonnes

April 17.2015/ we had a huge addition of 3.01 tonnes of gold inventory at the GLD.  It looks like the raids at the GLD have stopped.

April 16.2015: no change in inventory at the GLD/total inventory at 736.08 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 : 741.75  tonnes.

end

 

And now for silver (SLV):

 

May 4/ no change in silver inventory at the SLV/327.673 million oz

May 1/no change in silver inventory at the SLV/327.673 million oz

April 30/no change in silver inventory at the SLV/327.673 million oz

April 29/ we lost 2.963 million oz of silver inventory from the SLV/inventory tonight 327.673 million oz

April 28/another huge addition of 1.434 million oz to the SLV/Inventory stands tonight at 330.636 million oz

April 27.we had a huge addition of 2.976 million oz to the SLV/Inventory stands tonight at 329.202 million oz

April 24/ we had a small withdrawal of 88,000 oz of silver at the SLV/326.226 million oz

April 23.no changes in silver inventory at the SLV/326.334 million oz of inventory

 April 22/no changes in silver inventory at the SLV/326.334 million oz of inventory

April 21.2015/we had another huge addition of 1.434 million oz of silver into the SLV

April 20/ no change in silver inventory tonight/SLV 324.900 million oz.

 

May 4/2015 we had no change in inventory at the SLV  / inventory rests at 327.673 million

 

end

 

 

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

Central fund of Canada data not available today/

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 6.7% percent to NAV in usa funds and Negative 6.8% to NAV for Cdn funds!!!!!!!

Percentage of fund in gold 61.3%

Percentage of fund in silver:38.3%

cash .4%

( May 4/2015)

 

2. Sprott silver fund (PSLV): Premium to NAV falls to-0.18%!!!!! NAV (May 4/2015)

3. Sprott gold fund (PHYS): premium to NAV rises to -.14% to NAV(May 4/2015

Note: Sprott silver trust back  into negative territory at -0.18%.

Sprott physical gold trust is back into negative territory at -.14%

Central fund of Canada’s is still in jail.