Run On Deutsche Bank Accelerates – Harvey Organ
FUNDS ARE FLEEING DEUTSCHE BANK..
CHINA SELLS 34 BILLION USA OF TREASURIES LAST MONTH/CHINA PURCHASES 87 BILLION DOLLARS WORTH OF JAPANESE SOVEREIGNS/CHINA’S BANKS HAVE ALMOST 30 TRILLION EQUIV. USA LIABILITIES ON THEIR BOOKS WITH 15 TO 20% NON PERFORMING/FUNDS ARE FLEEING DEUTSCHE BANK/BANK OF ENGLAND ASKS UK BANKS THEIR EXPOSURE TO DEUTSCHE BANK AND ITALIAN BANKS/HUGE 14.24 TONNES OF “PAPER GOLD” REMOVED FROM GLD AND USED IN THE ATTACK ON GOLD TODAY/NO SILVER LEAVES THE SLV/SIGNIFICANT DRILL HOLES AND HUGE EARNINGS FROM AGNICO EAGLE
On Sale At SD Bullion…
This Week Only…
Gold $1264.80 down $7.10
Silver 17.59 down 15 cents
In the access market 5:15 pm
Gold: 1266.50
Silver: 17.63
THE DAILY GOLD FIX REPORT FROM SHANGHAI AND LONDON
.
The Shanghai fix is at 10:15 pm est and 2:15 am est
The fix for London is at 5:30 am est (first fix) and 10 am est (second fix)
Thus Shanghai’s second fix corresponds to 195 minutes before London’s first fix.
And now the fix recordings:
Shanghai morning fix OCT 26 (10:15 pm est last night): $ 1279.91
NY ACCESS PRICE: $1275.30 (AT THE EXACT SAME TIME)
Shanghai afternoon fix: 2: 15 am est (second fix/early morning):$ 1278.98
NY ACCESS PRICE: 1273.60 (AT THE EXACT SAME TIME)
HUGE SPREAD TODAY!! 5 dollars
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London Fix: OCT 26: 5:30 am est: $1274.10 (NY: same time: $1274.10: 5:30AM)
London Second fix OCT 24: 10 am est: $1272.30 (NY same time: $1272.30 , 10 AM)
Shanghai premium in silver over NY: 80 cents.
It seems that Shanghai pricing is higher than the other two , (NY and London). The spread has been occurring on a regular basis and thus I expect to see arbitrage happening as investors buy the lower priced NY gold and sell to China at the higher price. This should drain the comex.
Also why would mining companies hand in their gold to the comex and receive constantly lower prices. They would be open to lawsuits if they knowingly continue to supply the comex despite the fact that they could be receiving higher prices in Shanghai.
end
For comex gold:
1 NOTICE(S) FILED FOR 100 OZ
For silver:
for the Oct contract month: 0 notices for NIL oz.
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Let us have a look at the data for today
.
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In silver, the total open interest ROSE by 2,332 contracts UP to 196,311. The open interest ROSE as the silver price was UP 18 cents in yesterday’s trading .In ounces, the OI is still represented by just less THAN 1 BILLION oz i.e. .981 BILLION TO BE EXACT or 140% of annual global silver production (ex Russia &ex China).
In silver for October we had 0 notices served upon for NIL oz
In gold, the total comex gold ROSE by 849 contracts with the rise in price of gold ($9.90 YESTERDAY) . The total gold OI stands at 507,617 contracts.
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With respect to our two criminal funds, the GLD and the SLV:
GLD
TODAY WE HAD A BIG CHANGE AT THE GLD: A MASSIVE WITHDRAWAL OF 14.24 TONNES OUT OF THE GLD. THIS GOLD WAS USED IN THE WHACKING OF GOLD TODAY
Total gold inventory rests tonight at: 942.59 tonnes of gold
Note: the huge withdrawal of gold and yet no ounces leave the SLV!!
SLV
we had NO CHANGES at the SLV/
THE SLV Inventory rests at: 366.366 million oz
.
First, here is an outline of what will be discussed tonight:
1. Today, we had the open interest in silver ROSE by 2,332 contracts UP to 196,311 as the price of silver ROSE by 18 cents with yesterday’s trading.The gold open interest ROSE by 849 contracts UP to 507,617 as the price of gold ROSE $9.90 IN YESTERDAY’S TRADING.
(report Harvey).
2.a) The Shanghai and London gold fix report
(Harvey)
2 b) Gold/silver trading overnight Europe, Goldcore
(Mark O’Byrne/zerohedge
and in NY: Bloomberg
3. ASIAN AFFAIRS
i)Late TUESDAY night/WEDNESDAY morning: Shanghai closed DOWN 15.63 POINTS OR 0.50%/ /Hang Sang closed DOWN 239.68 OR 1.02%. The Nikkei closed UP 26.59 POINTS OR 0.15% Australia’s all ordinaires CLOSED DOWN 1.53% /Chinese yuan (ONSHORE) closed UP at 6.7690/Oil FELL to 49.23 dollars per barrel for WTI and 50.10 for Brent. Stocks in Europe: ALL IN THE RED Offshore yuan trades 6.7808 yuan to the dollar vs 6.7690 for onshore yuan.THE SPREAD BETWEEN ONSHORE AND OFFSHORE WIDENS QUITE A BIT AS MORE USA DOLLARS LEAVE CHINA’S SHORES / CHINA SENDS A MESSAGE TO THE USA TO NOT RAISE RATES IN DECEMBER.
REPORT ON JAPAN SOUTH KOREA NORTH KOREA AND CHINA
3a)THAILAND/SOUTH KOREA
none today
b) REPORT ON JAPAN
none today
c) REPORT ON CHINA
i)Last week’s TIC report showed a huge 346 billion dollars worth of treasuries sold. What was more disturbing was China sold 34 billion of USA treasuries. The big question is China offloading all of its foreign treasuries proportionally or just the USA. It seems the latter as Japan reports that China is gobbling up Japanese government bonds by the bucketful despite its negative yield. Last yr they bought $87 billion worth of Japanese bonds. China made its move because of the threat of higher interest rates. The chance that Japanese rates go higher is nil.
( zero hedge)
ii)Chinese bank assets total 32 trillion equiv usa, with bank liabilities at just about 30 trillion equiv USA. To give you a comparison to the uSA: the total USA banking liabilities are around 15 trillion. The problem in China is bad debts which are in the area of 15 to 20%.
Thus 5 to 6 trillion equiv dollars must be written off…where are they going to get the money for this?
(courtesy zero hedge)
4 EUROPEAN AFFAIRS
i)Deutsche bank
Investors scared as to what they are witnessing, have pulled another 8 billion dollars worth of funds from the ETF unit, causing more liquidity problems for the bank
( zerohedge)
ii)ECB
A trial balloon has been floated by the ECB that they are almost certain to continue buying bonds beyond the March 2017 deadline
( zero hedge)
iii)SPAIN
What a mess: King Felipe asks Spain to form a minority government and it will be done with abstentions. The problem here is that Rajoy promised to cut taxes and increase expenditures. The ECB wants the opposite
( Mish Shedlock/Mishtalk)
v)ITALY
This is all Italy needs; Central Italy (around the Perugia area) is hit with a strong 5.4 magnitude earthquake
( zero hedge)
vi) BANK OF ENGLAND/ITALIAN BANKS/DEUTSCHE BANK
Great reason for gold and silver to be whacked today: The Bank of England is asking its UK Banks to detail their exposure to both Deutsche bank and the Italian banks
( zero hedge)
5. RUSSIAN AND MIDDLE EASTERN AFFAIRS
i)Trump correctly states that Hillary’s plan for Syria would eventually lead to World War iii as the Russians would be totally against her formula. The Russians know full well that the issue is to remove Russia from providing natural gas to all of Europe
( zero hedge)
ii)Russia flexes its muscle by revealing a nuclear missile capable of reaching USA soil.
iii)World tensions just got hotter as Russia is forced to cancel refueling of its warships at Spain’s eastern Mediterranean port of Cueta. The warships are heading to Syria( zero hedge)
iv)what on earth is going on here? Cyberwarfare?
v)The warmongers are at again, as NATO is pushing for the biggest build up on Russia’s borders since the cold war; good reason to whack gold today(courtesy zero hedge)
6.GLOBAL ISSUES
Months ago, many foreign investors were flocking into Mozambique bonds due to its higher yield. This morning, they woke up to the fact that these bonds are crashing with a yield of over 20%. The government admits that it’s nation is in debt distress and they also reported on undisclosed bond issuance. The country’s Debt to GDP ratio is 86 / with total country debt/GDP at 112.
( zerohedge)
7.OIL ISSUES
After a huge gain in API inventory, the DOE reports a draw down and this causes crude to climb back above 50 dollars
(courtesy zero hedge)
8.EMERGING MARKETS
Conditions inside Venezuela going from bad to worse
(courtesy zero hedge)
9.PHYSICAL STORIES
i)Rory Hall/Dave Kranzler interview Bill Murphy of GATA
( GATA/IRD)
ii)Chinese mining companies Zijin andShandong are in talks for stakes in Barricks Veladero mine in Argentina. This mine is a good producer for Barrick at 500,00 plus oz per year.
(courtesy GATA/R euters)
10.USA STORIES WHICH MAY INFLUENCE THE PRICE OF GOLD/SILVER
i)The following is very important: the Richmond fed finally confirms that business conditions in its area has not deteriorated this fast since Q2 of 2008.
( zero hedge)
ii)The Fed is broadcasting that it is going to let inflation run wild in the USA
( Graham Summers/Phoenix Capital Research)
iii)Apple slides after disappointing numbers:
( zero hedge)
iv)Trump unexpectedly regains the lead in Florida with the latest polls
( zero hedge)
v)Wholesale inventories fail to grow and are basically unchanged even though auto inventories are up 9%. Inventory to sales ratio improves to 1.33 but still deep in recession.
( zero hedge)
vi)Today, we see the service sector PMI surge to 54.8 and it is at its highest level in 11 months.Together with the mfg PMI it looks like the USA is growing at 2%
( zero hedge)
vii) New home sales rose only after a major revision from August:
new home sales: 593,000 but expectations were 600,000. August levels; 609,000
( zero hedge)
viii)Project Veritas 4 just released and more trouble for the DNC
( zero hedge)
Let us head over to the comex:
The total gold comex open interest ROSE BY 849 CONTRACTS to an OI level of 507,617 as the price of gold ROSE $9.90 with YESTERDAY’S trading.
We are in the delivery month is October and here the OI LOST 217 contracts DOWN to 104. We had 250 notices filed YESTERDAY so we GAINED 33 contracts or 3,300 additional oz will stand for delivery.
The next delivery month is November and here the OI FELL by 176 contract(s) DOWN to 2260 contracts. This level is extremely elevated as generally November is a very poor delivery month.To give you an idea of size, on Oct 26 2015, we had an OI of only 253 contracts standing. Eventually by the end of Nov 2015, 214 notices stood for delivery for 21,400 oz (.6656 tonnes).The next contract month and the biggest of the year is December and here this month showed an decrease of 871 contracts down to 372,221.
And now for the wild silver comex results. Total silver OI rose by 2332 contracts from 193,979 UP TO 196,311 as the price of silver ROSE to the tune of 18 cents yesterday. We are moving further from the all time record high for silver open interest set on Wednesday August 3: (224,540). The next non active delivery month is October and here the OI fell by 5 contracts down to 36. We had 4 notices filed yesterday so we lost one contract or an additional 5,000 oz will not stand for delivery. The November contract month saw its OI lose 4 contracts down to 329. The next major delivery month is December and here it rose BY 628 contracts up to 148,976.
we had 0 notices filed for NIL oz
VOLUMES:
Today the estimated volume was 146,431 contracts which is POOR.
Yesterday’s confirmed volume was 59,136 which is fair.
today we had 1 notice filed for 5,000 oz of silver:
| Gold | Ounces |
| Withdrawals from Dealers Inventory in oz | NIL |
| Withdrawals from Customer Inventory in oz nil |
9,894.700 oz
BRINKS
|
| Deposits to the Dealer Inventory in oz | nil oz |
| Deposits to the Customer Inventory, in oz |
NIL oz
|
| No of oz served (contracts) today |
1 notice
100 oz
|
| No of oz to be served (notices) |
106 contracts
10,600
oz
|
| Total monthly oz gold served (contracts) so far this month |
9414 contracts
941,400 oz
29.281 tonnes
|
| Total accumulative withdrawals of gold from the Dealers inventory this month | oz |
| Total accumulative withdrawal of gold from the Customer inventory this month | 388,783.5 oz |
Today, 0 notices were issued from JPMorgan dealer account and 0 notices were issued form their client or customer account. The total of all issuance by all participants equates to 1 contract of which 0 notices were stopped (received) by jPMorgan dealer and 1 notice(s) was (were) stopped/ Received) by jPMorgan customer account.
March 2015: 2.311 tonnes (March is a non delivery month)
| Silver | Ounces |
| Withdrawals from Dealers Inventory | NIL |
| Withdrawals from Customer Inventory |
nil oz
|
| Deposits to the Dealer Inventory |
NIL OZ
|
| Deposits to the Customer Inventory |
2,040.300 oz
CNT
DELAWARE
|
| No of oz served today (contracts) |
0 CONTRACT(S)
(NIL OZ)
|
| No of oz to be served (notices) |
36 contracts
(180,000 oz)
|
| Total monthly oz silver served (contracts) | 500 contracts (2,500,000 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 | 6,508,272.3 oz |
end
NPV for Sprott and Central Fund of Canada
Central fund data not available today.
