Harvey Organ: Zurich Set to Become Key Center of Gold Trading As Swiss to Set Up Chinese Currency Exchange!

The bankers tried to contain gold/silver ahead of the decision by the ECB to undergo a 1.14 trillion euro quantitative easing.   It just did not work as gold and silver caught some bids and closed higher on the day.
We will detail for you the big decision by Draghi to undergo QE.  However 80% of the liability rests with national central banks and most are broke anyway.  So placing further liability on their heads is pointless.
The real news is that the Chinese are setting up a currency exchange with the Swiss in Zurich and this no doubt was the cause of Switzerland immediately abandoning the peg with the Euro.
China will also use Switzerland as a key centre of gold trading.

 

 

Submitted by Harvey Organ: 

Good evening Ladies and Gentlemen:

Here are the following closes for gold and silver today:

Gold: $1300.70 up $7.00   (comex closing time)
Silver: $18.35 up 17 cents  (comex closing time)

 

 

In the access market 5:15 pm

 

Gold $1302.00
silver $18.34

 

 

 

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

 

.

 

The gold comex today had a good delivery day, registering 54 notices served for 5400 oz. Silver comex registered 34 notices for 170,000 oz.

 

 

Three months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 247.69 tonnes for a loss of 55 tonnes over that period.

 

In silver, the open interest rose  by 551 contracts with Wednesday’s silver price being up by 23 cents.  The total silver OI continues to  remains relatively high with today’s reading at 160,455 contracts. It seems that the bankers are very worried about silver as they covered some of their short positions with the rise in the price of silver. The January silver OI contract fell by 26 contracts down to 37.

 

In gold we had a good increase in OI with the small fall  in price of gold  yesterday to the tune of $.20 The total comex gold OI rests tonight at 436,994 for a gain of 6,866 contracts. The January gold contract rose by 25 contracts up to 115 contracts as somebody needed some gold badly.

 

The bankers tried to contain gold/silver ahead of the decision by the ECB to undergo a 1.14 trillion euro quantitative easing.  It just did not work as gold and silver caught some bids and closed higher on the day as indicated above.

 

We will detail for you the big decision by Draghi to undergo QE. However 80% of the liability rests with national central banks and most are broke anyway.  So placing further liability on their heads is pointless.

 

In other news, the Chinese are setting up a currency exchange with the Swiss in Zurich and this no doubt was the cause of Switzerland immediately abandoning the peg with the Euro.  China will also use Switzerland as a key centre of gold trading.

 

Today, so far no change in gold inventory at the GLD/Inventory at 740.45 tonnes

 

In silver, a monstrous reduction in silver inventory of 6.75 million oz

SLV’s inventory rests tonight at 318.261 million oz (the actual reduction was recorded late last night after I published yesterday’s commentary)

.

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:

 

All rates moved in the negative direction  GOFO/  All months are in contango and thus positive in rates.

 

On January 30/2015 the LBMA will officially stop providing the GOFO rates.

 

Jan 22 2015

 

+.035%                     +0575%                     +.0725%                +.09%            .13%

 

Jan 21 2014:

 

 

+.0675%                   +.0775%                 +.0825 %             +.095%               +.135%

 

 

end

 

 

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 today by 6,866 contracts from 430,128 all the way up to 436,994 with gold down by $.20 yesterday (at the comex close).  We are now onto the January contract month.   The non active January contract month saw it’s OI contracts rise by 25 contracts up to 115. We had 0 contracts served yesterday.  Thus we  gained 25  gold contracts or an additional 2500 oz will stand for delivery in this January contract month.   The next big delivery month is February and here the OI fell by only 5,306 contracts to 176,363 contracts with many moving to April. First day notice is Friday Jan 30.2014 or just one week away. Is somebody sneeking up on the gold comex and ready to take huge delivery in February?  The estimated volume today was poor at 32,615. The confirmed volume yesterday was excellent at 244,202 contracts. Today we had 54 notices filed for 5400 oz .

 

 

And now for the wild silver comex results. Silver OI rose by 551 contracts from 159,904 all the way up to 160,455 as   silver was up by 23  cents yesterday. We thus had considerable shortcovering from the banking sector again today. The front January contract month saw its OI fall to 37 contracts for a loss of 26 contracts. We had 10 notices filed yesterday, so we lost 16 silver contracts or an additional 80,000 oz will not  stand for silver in the January contract month. The next big contract month is March and here the OI rose by 47 contracts up to 103,965.  The estimated volume today was fair at 25,211. The confirmed volume yesterday was excellent  at 62,105. We had 34 notices filed for 170,000 oz today. The rise in the price of silver is certainly scaring our bankers.

 

January initial standings

 

Jan 22.2015

Gold

Ounces

Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz 1,253.85 oz (Manfra)
Deposits to the Dealer Inventory in oz nil  oz
Deposits to the Customer Inventory, in oz 16,075.000 oz (JPMorgan) 500 kilobars
No of oz served (contracts) today 54 contracts(5400  oz)
No of oz to be served (notices)  61 contracts (6100 oz)
Total monthly oz gold served (contracts) so far this month  62 contracts(6200 oz)
Total accumulative withdrawals  of gold from the Dealers inventory this month

Total accumulative withdrawal of gold from the Customer inventory this month

 3,890.3 oz

Today, we had 0 dealer transactions

total dealer withdrawal: nil oz

 

we had 0 dealer deposit:

total dealer deposit: nil oz

 

we had 1 customer withdrawal

 

i) Out of Manfra  1,253.85 oz

 

total customer withdrawal: 1,253.85 oz

 

 

 

we had 1 customer deposit: and the farce continues!!

 

i) Into JPMorgan:  16,075.000 oz (or 500 kilobars???)

total customer deposits;   16,075.000 oz

 

We had 0 adjustments

 

Today, 0 notices was issued from JPMorgan dealer account and 54 notices were issued from their client or customer account. The total of all issuance by all participants equates to 54 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 December contract month, we take the total number of notices filed for the month (62) x 100 oz  or 6200 oz to which we add the difference between the January OI (115) minus the number of notices served upon today (54) x 100 oz  = 12,300 oz , the amount of gold oz standing for the January contract month. (0.3825 tonnes of gold)

 

Thus the initial standings:

62 (notices filed for the month x 100 oz) +OI for January (115) – 54(no. of notices served upon today) 9500 oz (0.3825 tonnes).

 

we gained 2500 oz of gold standing for delivery.

 

Total dealer inventory: 770,487.09 oz or 23.96 tonnes

Total gold inventory (dealer and customer) = 7.963 million oz. (247.69) tonnes)

 

Several weeks ago we had total gold inventory of 303 tonnes, so during this short time period 55 tonnes have been net transferred out. We will be watching this closely!

 

This initializes the month of January for gold.

 

end

 

 

And now for silver

 

Jan 22 2015:

 

 

 January silver: initial standings

 

 

Silver

Ounces

Withdrawals from Dealers Inventory nil oz
Withdrawals from Customer Inventory 61,211.400 oz  (Delaware,Scotia)  oz
Deposits to the Dealer Inventory  nil
Deposits to the Customer Inventory 587,140.19 oz (Scotia)
No of oz served (contracts) 34 contracts  (170,000 oz)
No of oz to be served (notices) 3 contracts (15,,000 oz)
Total monthly oz silver served (contracts) 435 contracts (2,175,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month
Total accumulative withdrawal  of silver from the Customer inventory this month  6,105,242.7 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 1 customer deposits:

 

i) Into Scotia:  587,140.19 oz

total customer deposit  587,140.19 oz

 

 

We had 2 customer withdrawals:

 

i) Out of Delaware:  970.500 oz (one decimal)

iv) Out of Scotia: 60,240.900 oz (one decimal)

 

total customer withdrawal: 61,211.400 oz

 

 

we had 1 adjustment

i) out of Delaware:  149,884.222 oz was adjusted out of the customer and this landed into the dealer account of Delaware

 

 

 

Total dealer inventory: 66.613 million oz

Total of all silver inventory (dealer and customer) 176.161 million oz.

The total number of notices filed today is represented by 34 contracts for 170,000 oz. To calculate the number of silver ounces that will stand for delivery in December, we take the total number of notices filed for the month (435) x 5,000 oz  to which we add the difference between the OI for the front month of January (37) – the Number of notices served upon today (34) x 5,000 oz  = 2,190,000 oz the number of ounces standing so far for the January delivery month.

 

Initial standings for silver for the January contract month:

435 contracts x 5000 oz= 2,175,000 oz  +OI standing so far in January  (37)- no. of notices served upon today(34) x 5,000 oz   equals 2,190,000 ounces standing for the January contract month.

 

we lost 80,000 ounces of silver standing for delivery in this January contract month.

 

 

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:

 

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

 

Jan 20.2015:

 

Late Friday night, we had another addition of 13.74 tonnes of gold on top of the earlier amount of 9.56 tonnes which were added to inventory.

Tonight another 11.45 tonnes was added to inventory

 

Thus so far inventory rests at 742.24 tonnes of gold.

 

There is no chance that these guys could have assembled 34.65 tonnes over the weekend. The addition is nothing but a paper entry!! No real physical has been received.

 

 

Jan 16.2015 we had a huge addition of 9.56 tonnes of gold into the GLD/New inventory 717.15 tonnes.  (where on earth did they obtain that quantity of physical gold??)

 

Jan 15/ no change in inventory at the GLD today/inventory 707.59 tonnes

 

Jan 14.2015  we had a small withdrawal of .23 tonnes of gold from the GLD/inventory 707.59 tonnes

 

Jan 13.2015 no change in gold inventory/GLD inventory tonight at 707.82 tonnes

 

Jan 12 no change in gold inventory/GLD inventory tonight at 707.82 tonnes

 

January 9.2015: an addition of 2.99 tonnes of gold/Inventory 707.82 tonnes

 

Jan 8.2015: no change/inventory 704.83 tonnes

 

Jan 7.2015: we lost another exact 2.99 tonnes of gold inventory at the GLD/Inventory at 704.83 tonnes

 

Jan 6.2015: we lost 2.99 tonnes of gold inventory at the GLD//inventory 707.82 tonnes

 

 

 

 

, Jan 22/2015 / no change in inventory at the GLD

inventory: 740.45 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 : 740.45 tonnes.

 

 

end

 

 

And now for silver (SLV):

 

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

 

Jan 20.2015: no change in silver inventory so far tonight/Inventory at 325.011 million oz

 

 

Jan 16.2015: we had another withdrawal of 1.34 million oz of silver inventory/Inventory 325.011 million oz

(something is up!!)

 

Jan 15.2015 we had a huge withdrawal of 1.628 million oz/Inventory 326.391 million oz

 

Jan 15.2015: no change in silver inventory/327.979 million oz

 

 

Jan 13.2015 no change in silver inventory/327.979 million oz/

 

Jan 12.2015 we had a huge withdrawal of 1.915 million at the SLV/inventory at 327.979 million oz.

 

Jan 9.2015: we had a huge addition of 1.437 million oz at the SLV/Inventory 329.894 million oz

 

Jan 8.2015: no change in silver inventory/inventory at 328.457 million oz.

Jan 7.2015:  we had another loss of 958,000 oz of silver from the SLV/Inventory 328.457 million oz

jAN 6.2015: we had a small loss of  149,000 oz/inventory 329.415 million oz

 

 

 

Jan 22/2015 /a huge reduction in silver inventory at the SLV

registers: 318.261 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)

 

BIG CHANGE!!!

1. Central Fund of Canada: traded at Negative  4.3% percent to NAV in usa funds and Negative 4.4 % to NAV for Cdn funds!!!!!!!

Percentage of fund in gold 60.9%

Percentage of fund in silver:38.6%

cash .5%

 

 

( Jan 22/2015)

 

 

2. Sprott silver fund (PSLV): Premium to NAV falls to + 2.93%!!!!! NAV (Jan 22/2015)

3. Sprott gold fund (PHYS): premium to NAV rises to +.07% to NAV(Jan 22/2015)

Note: Sprott silver trust back  into positive territory at +2.93%.

Sprott physical gold trust is back in positive territory at +.07%

Central fund of Canada’s is still in jail.