“Unfortunately, it is not [a mistake]… This could be the end of the fix. It took 14 minutes to find a fix – they obviously found a fix way off of the market.“
Today we had a HUGE flash crash in silver and this caused the fix to settle at 13.58 even though the spot price of silver at the time was .84 higher at $14.42.
This is totally unbelievable- will it mark the end of the fix?
Gold: $1115.60 down $.50 (comex closing time)
Silver 14.22 down 22 cents
In the access market 5:15 pm
At the gold comex today, we had a good delivery day, registering 5 notices for 500 ounces. Silver saw 16 notices for 80,000 oz.
Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 199.70 tonnes for a loss of 103 tonnes over that period.
Today we had a huge flash crash in silver and this caused the fix to settle at 13.58 even though the price of silver at the time was slightly over $14.52. This is totally unbelievable and it will cause huge losses to mining companies who use the fix to settle on silver delivered. The regulators and bankers should all be put in jail for this most outrageous criminal behaviour.
Image courtesy ZH:
In silver, the open interest rose by 1549 contracts up to 156,283. In ounces, the OI is still represented by .782 billion oz or 112% of annual global silver production (ex Russia ex China).
In silver we had 16 notices served upon for 80,000 oz.
In gold, the total comex gold OI fell by a rather large 3354 contracts to 381,996 contracts as gold was down $5.60 with yesterday’s trading.
Today both the gold comex and the silver comex are in severe stress with gold in backwardation up to April.
We had no changes in gold inventory at the GLD, / thus the inventory rests tonight at 669.23 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. 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 in inventory and thus/Inventory rests at 310.653 million oz.
First, here is an outline of what will be discussed tonight:
1. Today, we had the open interest in silver rise by 1549 contracts up to 156,283 despite the fact that silver was down 10 cents with respect to yesterday’s trading. The total OI for gold fell by 3,354 contracts to 381,996 contracts as gold was down $5.60 in price from yesterday’s level.
2 a) Gold trading overnight, Goldcore
3. ASIAN AFFAIRS
i) Late WEDNESDAY night,THURSDAY morning: Shanghai down badly by 2.85% / Hang Sang up. The Nikkei and the rest of Asia closed badly in the red . Chinese yuan up a touch and yet they still desire further devaluation throughout this year. Oil gained a dollar, rising to 32.25 dollars per barrel for WTI and 33.40 for Brent. Stocks in Europe so far are all in the red. Offshore yuan trades at 6.6174 yuan to the dollar vs 6.5760 for onshore yuan. huge volatility is the Chinese markets screams of credit problems; a leaked document suggests that China will not use the lowering of the RRR reserves but instead provide direct yuan injections into the market/POBC injects another 50 billion of liquidity into the markets
ii)The architect of Abenomics resigns amid corruption and bribery allegations:
( zero hedge)
vi)Houston: we have a problem!! The delta in total Debt to GDP in one year is absolutely outstanding!! Now the total rises to 346% (Corporate,Sovereign/
ii)Sweden now set to deport 80,000 refugees amid huge security fears. We wish Sweden the best of luck trying to find them!
iv) Last night,Saudi Arabia blew through 19.4 billion dollars worth of reserves leaving only 608 billion. It sure looks like their gamble to knock out USA shale has failed
ii) We now have a new virus to be worried about: the ZIKA virus spread through a mosquito which will cause defects in pregnant women as it causes huge birth defects. It is spreading explosively in South and Central America:
i) Oil soars to 3 weeks high on a supposed Saudi proposal for a 5% cut in production from all nations. However Iran spoils the party suggesting that they want to recoup lost market share:( zero hedge)
ii) Then this happened: “OPEC: there is no plan for a meeting with Russia”
Brent and WTI still rising despite that news.
( zero hedge)
iii)So ends the trial balloon of a output oil cut. Saudi Arabia has no proposal for that
iv) Shell and Italian ENI corp may lose a huge 9 billion barrels of crude
i) The big story of yesterday was the official gold repatriated by Germany at 210 tonnes.
Chris Powell asks the correct question: “where was the source of these bars”
I will also give you my two cents worth on the matter below
(courtesy Chris Powell/GATA)
ii)Ronan Manly explains how Germany received its 210 tonnes of gold back
iii) Peter Boehringer discusses the slow pace of German gold repatriation!
( Peter Boehringer/GATA)
iv)Interesting: Koos Jansen spoke to Scotiabank people on Chinese gold demand; and he gives us a commentary on this!
( Koos Jansen/GATA)
v) LBMA is trying to thwart the arrival of a allocated bullion exchange at the LBMA:
vi) We had another silver flash crash this morning: two commentaries
vii) Lawrie Williams discusses Chinese gold demand. You will recall that China has now stopped giving SGE withdrawals on gold which to us was key in estimating demand.
Now it is going to be a little more difficult to find true demand as we must use export figures from all the various countries
(courtesy Lawrie Williams/Sharp’s Pixley)
USA STORIES WHICH WILL INFLUENCE THE PRICE OF GOLD/SILVER
i)Moody’s had downgraded Freeport McMoRan to junk. Its credit default swaps (bets on the survival of the company) skyrocketed today. This is important due to the huge derivative trading by Freeport and together with their compadres, Glencore, Trifigara and Nobel, they can bring the entire globe to its knees:
( zero hedge)
ii)Jobless trend continues to drive in a northernly direction:
iii) Next on tap is the total destruction in the capital goods arena: durable good orders crashed!!
( zero hedge)
iv) Another huge problem in the USA: schools for profit are just not finding jobs for its graduates. This saddles huge debt upon the student and they want their money back
v)Pending home sales disappoint:
vi)Biotechs continue to face a beating. Only Facebook is advancing despite its 83 x P/E
vii)This should give you a clear picture as to why the S and P is not rising. There is a direct correlation between a rise in the Fed’s balance sheet and the S and P.
viii)This is going to do wonders for the USA housing markets as HSBC halts mortgages to Chinese nationals:( zero hedge)
Let us head over to the comex:
The total gold comex open interest fell to 381,996 for a loss of 3354 contracts as the price of gold was down $5.60 in price with respect to yesterday’s trading. 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, and 2) a continual drop in the amount of gold standing in an active month. Today, both scenarios again held in spades. We are now leaving the non active January contract which is now off the board. The next big active delivery month is February and here the OI fell by a monstrous 47,488 contracts down to 25,686. First day notice is tomorrow Friday, Jan 29.2016. The estimated volume today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was 234,453 which is poor considering the huge number of rollovers.. The confirmed volume yesterday (which includes the volume during regular business hours + access market sales the previous day was good at 309,860 contracts. The comex is deeply into backwardation up until April.
January contract month:
FINAL standings for January (probably)
|Withdrawals from Dealers Inventory in oz||nil|
|Withdrawals from Customer Inventory in oz nil||nil|
|Deposits to the Dealer Inventory in oz||nil|
|Deposits to the Customer Inventory, in oz|| 1929.000 oz
|No of oz served (contracts) today||5 contracts
|No of oz to be served (notices)||off the board|
|Total monthly oz gold served (contracts) so far this month||172 contracts (17,200 oz)|
|Total accumulative withdrawals of gold from the Dealers inventory this month||nil|
|Total accumulative withdrawal of gold from the Customer inventory this month||78,296.8 oz|
i) Into Scotia: another of those dubious 1929.000 oz
Total customer deposits 1929.500 oz
we had 1 adjustments.
From the Delaware vault:
200.477 oz was removed from the dealer and this landed into the customer account of Delaware
Here are the number of oz held by JPMorgan:
January FINAL standings/ (probably)
|Withdrawals from Dealers Inventory||nil|
|Withdrawals from Customer Inventory||750,040.69 oz
|Deposits to the Dealer Inventory||nil|
|Deposits to the Customer Inventory||996,770.29 oz,
|No of oz served today (contracts)||16 contracts
|No of oz to be served (notices)||off the board.|
|Total monthly oz silver served (contracts)||115 contracts (575,000 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||5,637,135.0 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: 607,852.35 oz
ii) Into HSBC: 388,917.940 oz
total customer deposits: 996,770.29 oz
total withdrawals from customer account 750,040.69 oz
we had 2 adjustments:
i) Out of the CNT vault:
we had an adjustment of 556,394.710 oz adjusted out of the dealer and this landed into the customer account of CNT
ii) Out of the Delaware vault:
we have 745,499.738 oz adjusted out of the customer account and this landed into the dealer account of Delaware:
And now the Gold inventory at the GLD:
jAN 28/no changes in gold inventory at the GLD/Inventory rests at 669.23
jan 27/another huge addition of 5.06 tonnes of gold to GLD/Inventory rests at 669.23 tonnes /most likely the addition is a paper deposit and not real physical,especially with gold in backwardation in both London and the comex.
Jan 26.no change in gold inventory at the GLD/Inventory rests at 664.17 tonnes
Jan 25./a huge deposit of 2.08 tonnes of gold into the GLD/inventory rests at 664.17 tonnes
most likely the addition is a paper deposit and not real physical
Jan 22/no change in gold inventory at the GLD/Inventory rests at 662.09 tonnes
Jan 21.2016: a huge deposit of 4.17 tonnes/Inventory rests at 662.09 tonnes
most likely the addition is a paper deposit and not real physical
jan 20/ no change in inventory at hte GLD/Inventory rests at 657.92 tonnes
Jan 28.2016: inventory rests at 669.23 tonnes