Today, the bankers got a good look at the real OI for today in both gold and silver, and they decided en masse that it was necessary to orchestrate a raid.
The problem of course was the fact that many investors were waiting in the wings and they gobbled up many of the huge offerings from our bankers.
RAID FOILED AGAIN/GOLD AND SILVER ADVANCE/EUROPEAN INVESTORS TOTALLY DISSATISFIED WITH THE DEAL TO RESCUE OUR INSOLVENT ITALIAN BANKS/THE ITALIAN STOCK EXCHANGE HALTED ALL ITALIAN BANK STOCKS FROM TRADING IN MID AFTERNOON/VALEANT GIVEN A NOTICE OF DEFAULT BY ONE COMPANY WHO DID NOT GO ALONG WITH THE DEAL/FUN AND GAMES TOMORROW
Good evening Ladies and Gentlemen:
Gold: $1,259.70 up $2.70 (comex closing time)
Silver 16.22 up 25 cents
In the access market 5:15 pm
Today, the bankers got a good look at the real OI for today in both gold and silver(remember that OI is always reported one day late and this gives the house a huge advantage) and they decided en masse that it was necessary to orchestrate a raid. The problem of course was the fact that many investors were waiting in the wings and they gobbled up many of the huge offerings from our bankers.
Over on the other side of the pond in London, physical gold and silver are disappearing off the planet and thus it is much harder for the bankers to do their usual and customary (and criminal) raids. The OI for both gold and silver no doubt will be much higher tomorrow and the bankers will need to burn themidnight oil deciding whether to raid or not.
Let us have a look at the data for today
At the gold comex today, we had a GOOD delivery day, registering 123 notices for 12300 ounces for gold,and for silver we had 0 notices for nil oz for the non active April delivery month.
Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 214.39 tonnes for a loss of 85 tonnes over that period.
In silver, the open interest rose by a whopping 4,750 contracts UP to 180,058 as the silver price was UP 59 cents with respect to yesterday’s bullish trading. In ounces, the OI is still represented by .900 billion oz or 128% of annual global silver production (ex Russia ex China). We are now at multi year highs in OI with respect to silver
In silver we had 0 notices served upon for NIL oz.
In gold, the total comex gold OI ROSE BY A GIGANTIC 14,345 contracts UP to 498,189 contracts as the price of gold was UP $14.10 with YESTERDAY’S trading.(at comex closing).
We had another big change in the GLD, a withdrawal of 2.67 tonnes / thus the inventory rests tonight at 815.14 tonnes. The fact that gold has a huge three days, I rather suspect that the bankers need to get their hands on physical quickly and the thus raided the GLD cookie jar. The appetite for gold coming from China is depleting not only gold from the LBMA and GLD but also the comex is bleeding gold. Our 670 tonnes of rock bottom inventory in GLD gold has been broken. It looks to me that China has taken the last amounts of physical gold from the GLD. I guess the only place left for China to receive physical gold, after they deplete the GLD will be the FRBNY and the comex. In silver,we had no changes and thus the Inventory rests at 336.151 million oz.
First, here is an outline of what will be discussed tonight:
1. Today, we had the open interest in silver RISE by 4750 contracts UP to 180,058 as the price of silver was UP 59 cents with YESTERDAY’S trading.Today, the bankers TRIED TO ATTACK AND AGAIN THEY FAILED. The total OI for gold rose by 14,345 contracts to 498,189 contracts as gold was UP $14.10 in price from yesterday’s level. THE HIGH OI FOR GOLD WAS THE REASON FOR THE ATTEMPTED RAID TODAY.
2 a) Gold trading overnight, Goldcore
b) COT report
3. ASIAN AFFAIRS
i)Late MONDAY night/ TUESDAY morning: Shanghai closed down 10.31 POINTS OR 0.34% (even with last hr rescue) / Hang Sang closed UP 63.63 OR 0.31%. The Nikkei closed UP 177.66 POINTS OR 1.13% . Australia’s all ordinaires CLOSED UP 0.89%. Chinese yuan (ONSHORE) closed UP at 6.4606. Oil ROSE to 40.66 dollars per barrel for WTI and 43.12 for Brent. Stocks in Europe ALL IN THE GREEN . Offshore yuan trades 6.4702 yuan to the dollar vs 6.4606 for onshore yuan. LAST WEEK:Japanese INDUSTRIAL PRODUCTION plunges the most in almost 5 years as negative interest rates ARE KILLING BUSINESS./JAPANESE TANKEN CONFIDENCE INDEX PLUMMETS/JAPAN HAS NEVER RECOVERED FROM THOSE BAD DATA RELEASES/TODAY THE USA/YEN CROSS REMAINS AT THE 108 CROSS SETTING OFF GLOBAL TENSIONS WHICH IN TURN IS CAUSING THE SPECIAL MEETING AT THE FED.
REPORT ON JAPAN SOUTH KOREA AND CHINA
a) REPORT ON JAPAN
ii)Our famous Mr Yen, Eisuke Sakakibara now says that Japan’s currency may strengthen to 100 yen to the dollar. He states that intervention will be fruitless. Although Japanese officials state that the 100 yen to the dollar is no problem for the Japanese economy it will surely wreck havoc on the rest of the world especially with the trillions of yen carry traders getting annihilated.
( zero hedge)
iii)An extremely important paper where the former chief IMF economist Olivier Blanchard admits how the end game will be played out. He discusses that Japan already has 34% of all Japanese issuance of bonds and by next year they will approach 50%. He then states that there will be a scarcity of sellers which will force Japan to taper buying of bonds. This will then force yields higher and with that deflation will turn on a dime into hyperinflation
iv)China will still due to stealth devaluation despite the blasting from USA’s Lew.
Even though the yuan/yuan has been stable, take a look at how the yuan is behaving against its currency basket: falling!!
The Japanese yen is out of ammo to cause its currency to falter. The USA has made a decision to lower its currency (thus hurting the yen by causing it to rise as well as causing the Euro to rise) so as not to allow the devaluation of the yuan against it.
( zero hedge)
v) a terrific article on the plight of China:
i) Italy announced its long awaited rescue for its troubled banking sector. They have 360 billion euros of non performing loans. So they now set up a fund called Atlas or Atlante to buy up the troubled loans. The problem: the fund is only 5 billion euros.
( zero hedge)
WHAT A JOKE: the IMF has now cut its global growth forecast for 2016 to 3.2% from 3.4%.
These guys have no clue and their forecasting skills are worth zero
( zero hedge)
i)Early this morning, Bloomberg oil strategist Julian Lee warns us not to be bullish on the DOHA freeze talks scheduled for April 17.2016:
( zero hedge)
ii)This phony headline sends the Dow and Nasdaq skyrocketing. It was total garbage:
Crude, Stocks Soar On Russia-Saudi “Production Freeze” Headline
iii)Well that did not last long! Oil falters after a surprisingly large inventory build:
i)Silver continues to be the star performer as we have highlighted to you, the commercials seem to be “getting out of Dodge”
( zero hedge)
ii)Silver continues to be the star performer as we have highlighted to you, the commercials seem to be “getting out of Dodge”
( zero hedge)
iii)Huge Chinese demand for March equal to 183.2 tonnes or 43.6 tonnes per week.They are still importing massive amounts of gold and they are not stopping
iv)John Embry discusses the fact that the prices of gold and silver are rising due to the scarcity of the physical metals. Also gold/silver equity companies are also recognizing the physical shortage and thus their shares are nicely bid.
v)Chris Powell is interviewed on Bloomberg TV and India TV( GATA/Chris Powell)
vi)Very unusual!! A former Yellen adviser goes against the Fed and proposes sweeping reforms of the Fed system: i.e. making the Fed transparent and a public vehicle, not a private one
( zero hedge)
USA STORIES WHICH WILL INFLUENCE THE PRICE OF GOLD/SILVER
i)We now know that the Fed has 3 meetings this week, the first was held on Monday, the second one, today and one tomorrow. Dave Kranzler and I are of the same opinion that these meetings were how to save Deutsche Bank with all of their huge amounts of derivatives underwritten. We differ on the fact that once DB blows up there is nobody on earth that can save them: they have now well over 75 trillion dollars worth of derivative underwritten. (They had 75 trillion in 2014)
ii)It now seems that New York is joining London England where luxury real estate is plummeting in price.( zero hedge)
iii)Oh boy!! this ought to be fun. Centerbridge has notified Valeant after hours that it intends to call a default event as our darling company broke covenants with its reporting requirements. Valeant had sought a delay and was willing to give a bonus interest for the privilege. Centerbridge said no and this called it a default event.
iv)Jeff Gundlach, of Doubleline is one smart cookie. He is a bond guru. He is stating that he remains bullish on gold and that there will be only one Fed hike and it was done in December. In other words one and done!
v)We have Bank of America’s credit card data and it suggest a huge April retail sales plunge!!
Let us head over to the comex:
The total gold comex open interest ROSE to an OI level of 498,189 for a gain of 14,345 contracts as the price of gold was UP $14.10 in price with respect to yesterday’s bullish trading. We are now entering the active delivery month of April. For the past two years, we have strangely witnessed two interesting developments with respect to the gold open interest: 1) total gold comex collapse in OI as we enter an active delivery month or for that matter an inactive month, and 2) a continual drop in the amount of gold standing in an active month. We certainly witnessed both parts today . In the front month of April we lost 101 contracts from 3575 contracts down to 3474. We had 30 notices filed so we lost 71 contracts or an additional 7100 gold ounces that will not stand for delivery. The next non active contract month of May saw its OI rise by 63 contracts up to 2855. The next big active gold contract is June and here the OI ROSE by 11,107 contracts UP to 375,245. The estimated volume today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was POOR at 156,787 . The confirmed volume YESTERDAY (which includes the volume during regular business hours + access market sales the previous day was poor at 180,194 contracts. The comex is not in backwardation.
Today we had 123 notices filed for 12,300 oz in gold.
April contract month:
INITIAL standings for APRIL
|Withdrawals from Dealers Inventory in oz||nil|
|Withdrawals from Customer Inventory in oz nil||1929.0000 ozMANFRA,SCOTIA|
|Deposits to the Dealer Inventory in oz||65,452.74 OZBRINKS|
|Deposits to the Customer Inventory, in oz||16,000.00 oz ???
|No of oz served (contracts) today||123 contracts
|No of oz to be served (notices)||3351 contracts 335,100 oz/|
|Total monthly oz gold served (contracts) so far this month||1286 contracts (128,600 oz)|
|Total accumulative withdrawals of gold from the Dealers inventory this month||nil|
|Total accumulative withdrawal of gold from the Customer inventory this month||78,877.4 oz|
Today we had 1 dealer deposit
i) Into Brinks: 65,452.74 oz
and that entry I can understand.
Total dealer deposits; 65,452.74 oz
Today we had 0 dealer withdrawals:
total dealer withdrawals: nil oz
Today we had 1 customer deposit:
Into Scotia: Exactly 16,000.000 oz ???
how could we have such an entry and this is not divisible by 32.15 so it is not kilobars
they can making a farce of the comex
Total customer deposits: 16,000.0000 oz
Today we had 2 customer withdrawal:
i) Out of MANFRA: 160.75 oz
ii) Out of Scotia: 1768.25 oz (55 kilobars)
total customer withdrawals: 1929.000 oz 60 kilobars
Today we had 0 adjustments:
APRIL INITIAL standings
|Withdrawals from Dealers Inventory||nil|
|Withdrawals from Customer Inventory||1,127,825.283 OZ. CNT, DelawareSCOTIA,JPM|
|Deposits to the Dealer Inventory||nil|
|Deposits to the Customer Inventory||456,809.400 OZBrinks,Delaware|
|No of oz served today (contracts)||0 contractsnil oz|
|No of oz to be served (notices)||66 contracts)(330,000 oz)|
|Total monthly oz silver served (contracts)||123 contracts (615,000 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||3,374,818.6 oz|
today we had 0 deposits into the dealer account
total dealer deposit: nil oz
we had 0 dealer withdrawals:
total dealer withdrawals: nil
we had 2 customer deposits:
i) Into BRINKS: 455,789.300 oz
ii)Into Delaware: 1020.100 oz
total customer deposits: 456,809.400 oz
We had 4 customer withdrawal
i) Out of CNT: 10,057.900 oz
ii) Out of Delaware: 981.600 oz
iii) Out of Scotia: 660,996.483
iv) Out of JPM: 455,789.300 oz
total customer withdrawals: 1,127,825.283 oz
we had 0 adjustments
APRIL 8/no changes in tonnage of gold/rests tonight at 819.60 tonnes
APRIL 7/ a huge deposit of 4.17 tonnes of “paper” gold was added to our GLD/Inventory rests tonight at 819.60 tonnes
APRIL 6/a withdrawal of .29 tonnes of gold and probably this was to pay for fees for the custodian and insurance/inventory rests at 815.43 tones
April 5/ a withdrawal of 2.37 tonnes of gold from the GLD/Inventory rests at 815.72 tonnes
APRIL 4/a withdrawal of 1.19 tonnes from the GLD/Inventory rests at 818.09 tonnes of gold
April 1/no changes in gold inventory at the GLD/Inventory rests at 819.28 tonnes
MARCH 31/a small withdrawal of 1.19 tonnes/inventory rests tonight at 819.28 tonnes
MARCH 30/no changes in inventory/inventory rests tonight at 820,47 tonnes
March 29/a withdrawal of 3.27 tonnes of gold from the GLD/Inventory rests at 820.47 tonnes. (No doubt we will see a rise in gold inventory with tomorrow’s reading)
March 28/no change in inventory at the GLD/Inventory rests at 823.74 tonnes
March 24.2016: a deposit of 2.08 tonnes of gold into its inventory/and this after a big drubbing these past two days??/Inventory rests at 823.74 tones
March 23/no changes at the GLD today despite the gold drubbing. Inventory rests at 821.66 tonnes
March 22./no changes in inventory at the GLD/Inventory rests at 821.66 tonnes
April 12.2016: inventory rests at 815.14 tonnes