http://harveyorgan.blogspot.com/2012/07/draghis-put-and-german-responsewild.html
Good morning Ladies and Gentlemen:
Gold and silver were on a roller coaster Friday. At the end of the day, gold finished at $1617.90 up $2.90 with silver up 5 cents to $27.48. All events yesterday are geared to two headline reports:
i) at 5:47 am est: the first report from Le Monde where the ECB is preparing to purchase Italian/Spanish debt
ii at 1:30 pm est: reports that the EU is considering giving the new ESM a banking license (thus giving these guys authority to buy bonds like the Fed)
According to Le Monde, the ECB and member states are preparing a concerted intervention on the market to limit the surge in interest rates in Spain and Italy.
We are also hearing unconfirmed talk that the German Finance Minister Schaeuble is planning to issue a general statement soon and that Hollande and Merkel will speak by phone today at 1pm CET.* * * * *4. No word from Merkel yet.
5. On Friday with the default button ready to be pressed by Spain, Merkel and Hollande talked on the telephone about the situation and this was reported in the press La Monde.
6. Now rumours about a possible joint USA/Europe bailout of Spain as both nations would buy Spanish/Italian debt to lower their costs. This is where it was conceived that the ESM would be given a banking license and perform exactly like the Fed in buying up mortgage bonds and sovereign bonds. This would totally anger Germany and this is why Jurgen Stark and Axel Weber resigned last year in protest that they may contemplate this action.
7. The Bundesbank immediately stated that this action is "problematic"
8. However funding from the ESFS will "not be problematic".
9. The EFSF only has 138 billion euros left in the kitty and cannot possibly fund both Italy and Spain.
(courtesy Wolf Richter/www.testosteronepit.com
Good morning Ladies and Gentlemen:
Gold and silver were on a roller coaster Friday. At the end of the day, gold finished at $1617.90 up $2.90 with silver up 5 cents to $27.48. All events yesterday are geared to two headline reports:
i) at 5:47 am est: the first report from Le Monde where the ECB is preparing to purchase Italian/Spanish debt
ii at 1:30 pm est: reports that the EU is considering giving the new ESM a banking license (thus giving these guys authority to buy bonds like the Fed)
7/27/2012 5:47:57 AM - European Market rumour: Le Monde newspaper reports the ECB is preparing to purchase Italian / Spain debt
06:25 Follow-up : Le Monde newspaper reports the ECB is preparing to purchase Italian / Spain debt
06:25 Follow-up : Le Monde newspaper reports the ECB is preparing to purchase Italian / Spain debt
According to Le Monde, the ECB and member states are preparing a concerted intervention on the market to limit the surge in interest rates in Spain and Italy.
We are also hearing unconfirmed talk that the German Finance Minister Schaeuble is planning to issue a general statement soon and that Hollande and Merkel will speak by phone today at 1pm CET.* * * * *4. No word from Merkel yet.
5. On Friday with the default button ready to be pressed by Spain, Merkel and Hollande talked on the telephone about the situation and this was reported in the press La Monde.
6. Now rumours about a possible joint USA/Europe bailout of Spain as both nations would buy Spanish/Italian debt to lower their costs. This is where it was conceived that the ESM would be given a banking license and perform exactly like the Fed in buying up mortgage bonds and sovereign bonds. This would totally anger Germany and this is why Jurgen Stark and Axel Weber resigned last year in protest that they may contemplate this action.
7. The Bundesbank immediately stated that this action is "problematic"
8. However funding from the ESFS will "not be problematic".
9. The EFSF only has 138 billion euros left in the kitty and cannot possibly fund both Italy and Spain.
(courtesy Wolf Richter/www.testosteronepit.com
and gold and silver items of note......
The total comex gold open interest fell by 2203 contracts from 425,257 to 423054. Gold had
a good day yesterday so we may have lost a few bankers shorts along the way. The July delivery month
saw its OI fall from 10 to 7 for a loss of 3 contracts. We had 7 delivery notices on Thursday so we actually gained 4 contracts or an additional 400 oz of gold standing. The next big delivery month is August and here the OI fell by a rather large 25,258 contracts with most of these guys rolling to Oct and December. The estimated volume on Friday was large and it had considerable rollovers. The confirmed volume on Thursday was much lighter at 267,467. First day notice for the August contract is on Tuesday. First day delivery notices are sent out late Monday night and I will report on that for you. Tuesday afternoon we will get our first glimpse as to how many gold ounces will stand. It looks to me like about 10,000 contracts will stand which will represent around 31 tonnes of gold which will be quite good. Monday night all monies must be in
so you can bet the farm that the bankers will raid gold/silver trying to convince you not take possession of physical metals.
The total silver comex OI continues to do the opposite of gold. The total OI rose by 1279 contracts from 120,881 to 122,160. I guess our bankers still wish to provide the necessary paper. The front delivery month of July saw it's OI drop from 218 to 91 for a loss of 127 contracts. We had 118 notices filed on Thursday so we lost 9 contracts or 45,000 oz of silver. The next big delivery month if September and here the OI rose from 60,418 to 60,610. The estimated volume on Friday came in at a very low 33,951. The confirmed volume on Thursday was a little better at 47,579.
a good day yesterday so we may have lost a few bankers shorts along the way. The July delivery month
saw its OI fall from 10 to 7 for a loss of 3 contracts. We had 7 delivery notices on Thursday so we actually gained 4 contracts or an additional 400 oz of gold standing. The next big delivery month is August and here the OI fell by a rather large 25,258 contracts with most of these guys rolling to Oct and December. The estimated volume on Friday was large and it had considerable rollovers. The confirmed volume on Thursday was much lighter at 267,467. First day notice for the August contract is on Tuesday. First day delivery notices are sent out late Monday night and I will report on that for you. Tuesday afternoon we will get our first glimpse as to how many gold ounces will stand. It looks to me like about 10,000 contracts will stand which will represent around 31 tonnes of gold which will be quite good. Monday night all monies must be in
so you can bet the farm that the bankers will raid gold/silver trying to convince you not take possession of physical metals.
The total silver comex OI continues to do the opposite of gold. The total OI rose by 1279 contracts from 120,881 to 122,160. I guess our bankers still wish to provide the necessary paper. The front delivery month of July saw it's OI drop from 218 to 91 for a loss of 127 contracts. We had 118 notices filed on Thursday so we lost 9 contracts or 45,000 oz of silver. The next big delivery month if September and here the OI rose from 60,418 to 60,610. The estimated volume on Friday came in at a very low 33,951. The confirmed volume on Thursday was a little better at 47,579.
and gold activity.....
Not much action in the gold vaults again on Friday.
We had no dealer activity whatsoever.
We had the following customer deposit:
1. 20,067.89 oz into Scotia.
(this arrived Friday from the withdrawal of a customer on Thursday at Scotia)
The customer at Scotia withdrew 4,016.518 oz on Friday.
We had no adjustments
Thus the dealer inventory rests this weekend at 2.58 million oz or 80.2 tonnes.
This level has been consistent despite settlements.
The CME notified us that we had 7 notices filed on Friday for 700 oz of gold. The total number of notices filed so far this month total 739 for 73900 oz. To obtain what is left to be served I take the OI standing for July (7) and subtract out Friday notices (7) which leaves us with zero notices to be filed and thus the month of July is now complete for gold.
Thus the total number of gold ounces that stood in July is now final at:
73,900 oz of gold or 2.3 tonnes of gold.
We had no dealer activity whatsoever.
We had the following customer deposit:
1. 20,067.89 oz into Scotia.
(this arrived Friday from the withdrawal of a customer on Thursday at Scotia)
The customer at Scotia withdrew 4,016.518 oz on Friday.
We had no adjustments
Thus the dealer inventory rests this weekend at 2.58 million oz or 80.2 tonnes.
This level has been consistent despite settlements.
The CME notified us that we had 7 notices filed on Friday for 700 oz of gold. The total number of notices filed so far this month total 739 for 73900 oz. To obtain what is left to be served I take the OI standing for July (7) and subtract out Friday notices (7) which leaves us with zero notices to be filed and thus the month of July is now complete for gold.
Thus the total number of gold ounces that stood in July is now final at:
73,900 oz of gold or 2.3 tonnes of gold.
and silver activity.......
Again the silver vaults were very busy.
The dealer at Brinks received the following silver deposit:
299,539.123
There were no silver withdrawals by the dealer.
We had the following silver deposit by the customer:
1. 299,874.42 oz into Brinks.
2. 634,493.80 oz was deposited into JPMorgan.
total deposit to the customer (eligible): 934,368.22 oz
We had one adjustment whereby 27,762.77 oz left the customer at JPM and entered the dealer.
The total registered or dealer inventory rests this weekend at 40,828 million oz
The total of all silver rests at 141.078 million oz.
The CME notified us that we had only 83 notices filed for 415,000 oz. The total number of notices
filed so far this month total 1912 for 9,560,000 oz. To obtain what is left to be filed upon I take the OI standing for July (91) and subtract out today's notices (83) which leaves me with 8 notices or 40,000 oz
They have until Monday night to settle upon these 8 contracts. My bet is that they will cash settle upon these guys.
The dealer at Brinks received the following silver deposit:
299,539.123
There were no silver withdrawals by the dealer.
We had the following silver deposit by the customer:
1. 299,874.42 oz into Brinks.
2. 634,493.80 oz was deposited into JPMorgan.
total deposit to the customer (eligible): 934,368.22 oz
We had one adjustment whereby 27,762.77 oz left the customer at JPM and entered the dealer.
The total registered or dealer inventory rests this weekend at 40,828 million oz
The total of all silver rests at 141.078 million oz.
The CME notified us that we had only 83 notices filed for 415,000 oz. The total number of notices
filed so far this month total 1912 for 9,560,000 oz. To obtain what is left to be filed upon I take the OI standing for July (91) and subtract out today's notices (83) which leaves me with 8 notices or 40,000 oz
They have until Monday night to settle upon these 8 contracts. My bet is that they will cash settle upon these guys.
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