Harvey Organ: Holiday Gold Smackdown!

smashPay no attention to Thursday afternoon’s access knockdown- there is nobody to sell to-all left for the Good Friday holiday…

 

Harvey Organ
DESPITE THE SHELLACKING OF GOLD, THE GLD SURPRISINGLY ADDS 2.08 TONNES TO ITS INVENTORY/GOLD AND SILVER FALL TODAY/CHINA DEVALUES GREATLY SENDING A STRONG MESSAGE TO THE USA NOT TO RAISE RATES/JAPAN TO INITIATE THE HELICOPTER ROUTE TO SUPPLY FREE CASH TO POOR CITIZENS/30 YR USA BOND YIELD PLUMMETS/ATLANTA FED LOWERS 2ND QUARTER GDP TO ONLY 1.4%

Gold:  $1,221.40 down $2.30    (comex closing time)

Silver 15.19  down 7 cents

In the access market 5:15 pm

Gold $1217.00

silver:  15.18

(pay no attention to this access knockdown/there is nobody to sell to/all left for the Good Friday holiday)

 

 

Let us have a look at the data for today.

At the gold comex today, we had a poor delivery day, registering 12 notices for 1200 ounces and for silver we had 0 notices for nil oz for the active March delivery month.

Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 212.17 tonnes for a loss of 91` tonnes over that period.

In silver, the open interest FELL by only 3863 contracts DOWN to 171,913 despite the fact that the silver price was whacked by 61 cents with respect to yesterday’s trading . In ounces, the OI is still represented by .860 billion oz or 123% of annual global silver production (ex Russia ex China).

In silver we had 0 notices served upon for nil oz.

In gold, the total comex gold OI fell by 13,363 contracts to 497,216 contracts as the price of gold was down $24.50 with yesterday’s trading.(at comex closing). I was expecting a larger contraction in OI

This is a huge surprise!!we had a huge deposit of 2.08 tonnes in the GLD despite gold’s drubbing yesterday and today/ thus the inventory rests tonight at 823.74 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 tonight,  and thus the Inventory rests at 328.914 million oz

.

First, here is an outline of what will be discussed tonight:

 

1. Today, we had the open interest in silver fell by 3862 contracts down to 171,913 as the price of silver was down 61 cents with yesterday’s trading. The total OI for gold fell by 13,363 contracts to 497,216 contracts as  gold was down $24.50 in price from yesterday’s level.

(report Harvey)

2 a) Gold trading overnight, Goldcore

(Mark OByrne)

 

3. ASIAN AFFAIRS

Silver Eagle SD Bullion

i)Late  WEDNESDAY night/ THURSDAY morning: Shanghai closed DOWN BY 48.99 POINTS OR 0.63% , /  Hang Sang closed DOWN by 269.62 points or  1.31% . The Nikkei closed DOWN 108.65 POINTS OR 0.64% . Australia’s all ordinaires was DOWN 1.13%. Chinese yuan (ONSHORE) closed DOWN at 6.5114.  Oil FELL  to 38.93 dollars per barrel for WTI and 39.65 for Brent. Stocks in Europe so far ALL IN THE RED . Offshore yuan trades  6.5241 yuan to the dollar vs 6.5114 for onshore yuan. LAST NIGHT CHINA SIGNALS TO THE USA TO STOP ALL RATES INCREASES BY MASSIVELY DEVALUING THEIR YUAN. THE LAST TIME CHINA DID THIS, THE USA LISTENED AS THEY DO NOT WANT DEFLATION TO PERMEATE THE GLOBE

JAPAN DOES FULL KRUGMAN BY USING THE HELICOPTER METHOD OF PROVIDING FREE CASH TO POORER CITIZENS

.

REPORT ON JAPAN

Japan goes to the helicopter route to give free money to poorer citizens.

Seems that Japan has reached its limit on QE

(courtesy zero hedge)

 

REPORT ON CHINA

The POBC sends Washington a strong message:

“don’t mess with the Zohan..I mean China!!)

(zero hedge)

European Affairs

 

Since 2010, Switzerland has spent the equivalent of 470 billion USA on currency manipulation or 2/3 of its GDP

( zero hedge)

 

RUSSIAN AND MIDDLE EASTERN AFFAIRS

US Marines enter ground combat in Iraq to defend oil fields as ISIS seems to be getting stronger and willing to attack these fields

( Jason Ditz/Antiwar.com)

 

GLOBAL ISSUES

i)Dave Kranzler is correct;  the entire global system will implode when central bank intervention fails or has no effect on any economy!

( Dave Kranzler/IRD)

ii) John Rubino discusses the devastating effects of NIRP on global economies’

(John Rubino)

 

OIL Markets

 

i)Oil is heading southbound as a huge 31 million barrels that have been floating on the seas are coming to shore.  Recent hedging activity is now being unwound as the contango on oil is disappearing

( zero hedge)

 

ii)More USA rigs put out of commission

( zero hedge)

 

iii)WHAT PRODUCTION FREEZE?

(y zero hedge)

 

PHYSICAL MARKETS

i)We wish the Indian temple all the luck in the world if they think they are going to get their gold back:

 
( Reuters/GATA)
 
ii)China states that there was no agreement to let the dollar depreciate to alleviate the pressure on all other currencies.

( GATA/Chris Powell/Reuters)
 
iii)Lawrie Williams on yesterday’s gold whack.  He also questions if we will see a change in GLD inventory shortly.(courtesy Lawrie Williams/Sharp’s Pixley)
 
USA STORIES WHICH WILL INFLUENCE THE PRICE OF GOLD/SILVER
 
i)The big winner the long bond as 30 yr yields plummet/gold holds its own( zero hedge) 

ii)Initial and continuing claims drop despite the iSM national mfging and services indices collapsing to 6 yr lows:

( zero hedge)

 

iii)Core durable goods (ex transporation stuff) tumbles for the 13th straight month:  a good indicator that the uSA in in deep recession

( zero hedge)
 

iv)The service sector is 70% of GDP/today Markit’s services PMI signals the softest expansion in new business since 2009:  March reading 51.0 average reading for 3 months;  51.3

( zero hedge)
 
v)Atlanta Fed, which is generally good at predicting results, forecasts 2nd Q, GDP at only 1.4% down from last week’s 1.9%.  Expect many of these downgrades to give the Fed cover not to raise rates in April or June

( zero hedge)
 
vi)A terrific article written by David Stockman as he advocates that the USA should dump it’s commitment to NATO now as it is not needed.

 
( David Stockman/ContraCorner)
 
vii)Horseman capital is the best run hedge fund in the world.  They have a theory when the USA stock market will burst and the answer is surprising:  a must read.( zero hedge/Horseman Capital/Russell Clark)
10 oz Silver Sunshine Mint Bars

Let us head over to the comex:

The total gold comex open interest fell to497,216 for a loss of 13,363 contracts as the price of gold was down $24.50 in price. As I stated yesterday: “Expect our bankers to undergo relentless attacks on our two precious metals.” They have not disappointed us with their antics. 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.   Today, both scenarios were in order.  The front March contract month saw its OI fall by 26 contract down to 52.We had 1 notice filed upon yesterday, and as such we lost 25 contracts or an additional 2500 oz will not stand for delivery. .After March, the active delivery month of April saw it’s OI fall by 31,272 contracts down to 152,305.  The estimated volume today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was 210,068. The confirmed volume yesterday (which includes the volume during regular business hours + access market sales the previous day was very good at 357,442 contracts. The comex is not in backwardation

Today we had 12 notices filed for 1200 oz in gold.

 

 
And now for the wild silver comex results. Silver OI fell by 3,862 contracts from 175,275 down to 171,913 as the price of silver was down by 61 cents with yesterday’s trading. The next big active contract month is March and here the OI fell by 102 contracts down to 187 contracts. We had 85 notices served upon yesterday, so we lost 17 contracts or an additional 85,000 ounces will not  stand for delivery. The next contract month after March is April and here the OI  fell by 16 contracts down to 355.  The next active contract month is May and here the OI fell by 5,063 contracts down to 116,036. This level is exceedingly high. The volume on the comex today (just comex) came in at 41,579 , which is  good. The confirmed volume yesterday (comex + globex) was humongous at 82,823. Silver is now in backwardation until April at the comex.   In London it is in backwardation for several months.
 
 
We had 0 notices filed for nil oz.
 

March contract month:

INITIAL standings for MARCH

March 24/2016

Gold
Ounces
Withdrawals from Dealers Inventory in oz   nil
Withdrawals from Customer Inventory in oz  nil 10,348.485 ozBrinks,HSBC,
JPMorgan
Deposits to the Dealer Inventory in oz NIL
Deposits to the Customer Inventory, in oz  899.008 ozjpm
No of oz served (contracts) today 12 contract
(1200 oz)
No of oz to be served (notices) 40 contracts(4000  oz)
Total monthly oz gold served (contracts) so far this month  696 contracts (69,600 oz)
Total accumulative withdrawals  of gold from the Dealers inventory this month   nil
Total accumulative withdrawal of gold from the Customer inventory this month 192,175.0 oz

Today we had 0 dealer deposits

 

Total dealer deposits; nil oz

Today we had 0 dealer withdrawals:

total dealer withdrawals:  nil oz

Today we had 1 customer deposit:

i) Into JPMorgan: 899.008 oz

 

total customer deposits:  899.008 oz

Today we had 3 customer withdrawals:

i) Out of Brinks;  8551.900 oz 266 kilobars

ii) Out of HSBC: 899.008 oz

iii) Out of jPMorgan; 897.597 oz

 

total customer withdrawals; 10,348.485  oz

 

Today we had 1 adjustment:

i) Out of Manfra: 100.128 oz was adjusted out of the customer and this landed into the dealer account of Manfra.

.
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 12 contracts of which 2 notices was stopped (received) by JPMorgan dealer and 0 notices were stopped (received)  by JPMorgan customer account. 
 
To calculate the initial total number of gold ounces standing for the Mar contract month, we take the total number of notices filed so far for the month (696) x 100 oz  or 69,600 oz , to which we  add the difference between the open interest for the front month of March (52 contracts) minus the number of notices served upon today (12) x 100 oz   x 100 oz per contract equals the number of ounces standing.
 
Thus the INITIAL standings for gold for the March. contract month:
No of notices served so far (696) x 100 oz  or ounces + {OI for the front month (52) minus the number of  notices served upon today (12) x 100 oz which equals 73,600 oz standing in this non  active delivery month of March (2.289 tonnes).  This is a good showing for gold deliveries in this non active month of March.
 
we lost 25 contracts or 2500 additional gold ounces will stand for March delivery.
 
We thus have 2.289 tonnes of gold standing and 10.38 tonnes of registered gold for sale, waiting to serve upon those standing.  The bankers are still doing their best in cash settling as there is not enough registered gold to satisfy those that are standing.
We now have partial evidence of gold settling for last months deliveries We now have 2.289 tonnes (March) + 7.99 (total Feb)- .940 (probable delivery on March 1) tonnes -.0434 tonnes (March 11,12,17,18) = 9.309 tonnes standing against 10.38 tonnes available.  .
 
Total dealer inventor 338,458.211 oz or 10.38 tonnes
Total gold inventory (dealer and customer) =6,821,280.859 or 212.17 tonnes 
 
Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 212.17 tonnes for a loss of 91 tonnes over that period. 
 
JPMorgan has only 21.15 tonnes of gold total (both dealer and customer)
 
Please be careful trading this week against our crooks:
this is what I stated on Tuesday night:
 
“We now enter options expiry week so our usual and customary raid on gold and silver will be modus operandi for our crooked banks.  On top of the options expiry week, we have over 500,000 contracts on gold  (and over 177,000 on silver) and that too will necessitate a raid trying to get these levels down.”
 
 end
 
And now for silver
 

MARCH INITIAL standings

/March 24/2016:

Silver
Ounces
Withdrawals from Dealers Inventory nil
Withdrawals from Customer Inventory 60,555.660. ozScotia
Deposits to the Dealer Inventory nil
Deposits to the Customer Inventory nil
No of oz served today (contracts) 0 contractsnil oz
No of oz to be served (notices) 187  contracts (935,000, oz)
Total monthly oz silver served (contracts) 1199 contracts (5,995,000 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 10,918,307.8 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 0 customer deposits

 

 

total customer deposits: nil oz

 

We had 1 customer withdrawals:

i) Out of Scotia:

60,555.660 oz

 

:

total customer withdrawals:  60,555.660 oz

 
 

 

 we had 1 adjustment

i) Out of CNT:  171,004.03 oz was adjusted out of the customer account and this landed into the dealer account of CNT

 

The total number of notices filed today for the March contract month is represented by 0 contracts for nil oz. To calculate the number of silver ounces that will stand for delivery in March., we take the total number of notices filed for the month so far at (1199) x 5,000 oz  = 5,995,000 oz to which we add the difference between the open interest for the front month of March (187) and the number of notices served upon today (0) x 5000 oz equals the number of ounces standing 
 
Thus the initial standings for silver for the March. contract month:  1199 (notices served so far)x 5000 oz +(187{ OI for front month of March ) -number of notices served upon today (0)x 5000 oz  equals  6,930,000 oz of silver standing for the March contract month.
we lost 25 contracts or an additional 125,000 oz  will stand in this delivery month.
 
 
Total dealer silver:  32.122 million
Total number of dealer and customer silver:   155.902 million oz
 
 The crooks did not remove many silver contracts from the entire silver OI complex.It sure looks like we are going to have a commercial failure in silver.
 
end
 

And now the Gold inventory at the GLD

 

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

MARCH 21/another big deposit of 2.68 tonnes/inventory rests tonight at 821.66 tonnes

(and this was done with gold down $10.00 today!!)

March 18.I GIVE UP!! WITH GOLD DOWN TODAY, THE CROOKS OVER AT GLD ADDED ANOTHER IDENTICAL 11.89 TONNES OF PAPER GOLD INTO THEIR INVENTORY.

INVENTORY RESTS THIS WEEKEND AT 818.98 TONNES. IF I WAS A SHAREHOLDER OF THIS ENTITY I WOULD BE VERY WORRIED.

March 17/we had a whopper of a deposit tonight: 11.89 tonnes/with London in backwardation this is nothing but a paper addition/inventory rests tonight at 807.09 tonnes

March 16.2016:/we had a deposit of 2.09 + 2.97(last in the evening)  tonnes of gold into the GLD/Inventory rests at 795.20 tonnes

March 15/ no changes in gold inventory at the GLD/Inventory rests at 790.14 tonnes

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

March 24.2016:  inventory rests at 823.74 tonnes

 

end

 

Now the SLV Inventory
 
March 24.2016/no change in inventory/rests tonight at 328.914 million oz/
March 23/we lost 1.428 million oz as a withdrawal today/SLV inventory rests at 328.914 million oz
March 22./ a huge deposit of 1.809 million oz of a silver deposit into the SLV/inventory rests at 330.342 million oz.
MARCH 21/no change in silver inventory/inventory rests tonight at 328.533 million oz
March 18/ANOTHER WHOPPING DEPOSIT OF 2.665 MILLION OZ/INVENTORY RESTS AT 328.533 MILLION OZ
March 17/no changes in silver inventory at the SLV/Inventory rests at 325.868 million oz
March 16./no changes in silver inventory at the SLV/Inventory rests at 325.868 million oz
March 15/ no changes in silver inventory at the SLV/Inventory rests at 325.868 million oz/
 
.
March 24.2016: Inventory 328.914 million oz
.end
1. Central Fund of Canada: traded at Negative 7.5 percent to NAV usa funds and Negative 7.5% to NAV for Cdn funds!!!!
Percentage of fund in gold 63.8%
Percentage of fund in silver:36.2%
cash .0%( Mar 24.2016).
2. Sprott silver fund (PSLV): Premium to NAV falls to  4.89%!!!! NAV (Mar 24.2016) 
3. Sprott gold fund (PHYS): premium to NAV falls  to -0.26% to NAV Mar 24.2016)
Note: Sprott silver trust back  into positive territory at +4.89%/Sprott physical gold trust is back into negative territory at -0.26%/Central fund of Canada’s is still in jail.