http://www.hangthebankers.com/the-physical-silver-market-is-getting-dangerously-tight/
With continued volatility in global stock markets, and gold staging a big rally off of the lows, today King World News interviewed one of the wealthiest and most street-smart pros in the business, Rick Rule. Rule told KWN that when it comes to silver, “there is the strong case for some very substantial upside.”
The total silver comex OI fell by 747 contracts from 122,566 to 121,819. I believe that we lost a few banker shorts in silver as well. The front delivery month of July saw an extremely strange reading with a fall in OI from 1552 contracts to 563 for a loss of 989 contracts. We had only 441 delivery notices filed yesterday so we actually had a massive loss of 548 contracts or 2.74 million oz. I find it hard to believe that this many would leave July and move to September. The data seems quite suspect!! The August delivery month saw its OI gain 3 contracts to 262. The next big delivery month is September and here the OI fell very marginally by only 197 contracts to 61,137. The estimated volume today was extremely anemic at only 23,617 contracts. The confirmed volume yesterday was a little better at 40,900. No doubt many investors who used to play the paper silver comex no longer do so.
We had considerable activity in the silver vaults today.
The customer at Delaware received the following silver deposit:
1. 62,871.254 ozThe customer had the following silver withdrawal:
1. 989.70 oz out of Delaware
2. 979.30 oz out of HSBC
3. 677,082.21 oz out of Scotia.
total withdrawal 679,051.21 oz
18 Jul 2012
With continued volatility in global stock markets, and gold staging a big rally off of the lows, today King World News interviewed one of the wealthiest and most street-smart pros in the business, Rick Rule. Rule told KWN that when it comes to silver, “there is the strong case for some very substantial upside.”
Rule, who is now part of Sprott Asset Management, discussed silver and gold at length. He also talked about the problems the world currently faces. But first, here is what Rule had to say about Sprott’s very successful offering in the Sprott Physical Silver Trust: “I think it’s evidence of two things: One, we felt we had reasonably good chances of buying the silver if we raised the money. Second, this points to the continuing strength of the high end retail investment market for silver in North America.”
“The offering was well received. It was sold out, including the green shoe (over-allotment). This is also evidence of the fact that while some of the more leveraged institutions have been forced sellers of silver, there is still very strong high end retail demand. These are individuals who don’t feel financial stress, and who feel better owning physical silver.
I think this is the kind of thing you will see Sprott do, from time to time, when there is demand in the market, and also when supplies can meet that demand. As you know, with regards to the Sprott Trust, unlike some of the ETF’s, we own physically our silver. There are no deposit receipts and our silver is never hypothecated.
Although supplies might be adequate for us to buy that silver, the fact is that the physical market continues to get tighter….
“Eric Sprott has pointed out that on a daily basis, the paper markets (futures markets) in silver trade about 100 million ounces, while the physical market produces less than 3 million ounces each day. That’s an indicated 97 million ounce shortfall on a daily trading basis.
I would also like to add that 90 to 120 days ago, Eric Sprott was saying to me that the amount of silver available for good delivery, on the various metals exchanges in the world, was about 40 million ounces. So if you think about the fact that there were 40 million ounces available for good delivery, but 100 million ounces a day are traded, this would suggest that all of the available silver was traded before lunchtime.
I would also say that if this market begins to move to the upside, it would appear from the disparity of silver available to trade and the amount that actually does trade, that there is the strong case for some very substantial upside.”
Rule had this to say regarding gold: “I think it’s interesting that we have had a shift in gold, and I would suspect that shift has been from institutional investors and momentum oriented ETF’s, again, in favor of private buyers. The indications are that the private buyers were, in substantial measure, Chinese and Indian individuals.
You will recall that the Indian government put an excise tax in place against gold, in an attempt to try to decrease internal demand for gold, and also to increase the rupee. That attempt was markedly unsuccessful and extraordinarily unpopular in India.
As that tax was repealed, the traditional Indian demand for gold has increased. I think that’s been part the relative strength, and the apparent basing in the gold market.”
Rule also warned: “I think the really big problem that we face, Eric, is that our political response to what is obviously a solvency crisis, meaning Western governments owe more than they can service, but the political response to a solvency crisis has been liquidity. We aren’t in a liquidity crisis.
The banks, in the short-term, are awash in cash. And people who are looking to borrow money for the very short-term are awash in cash. The difficulty isn’t liquidity, it’s solvency. The idea that you solve a liquidity crisis by blowing up balance sheets and encouraging people to take on more short-term debt doesn’t seem to be very intelligent to me.
I think that we need a reckoning. Hopefully we have a slow reckoning. But we need to deal with the fact that we owe more money than we can service, and that we have been consuming more than we have been producing. Until we recognize the nature of our problem, I don’t think we will be able to deal with it.”
and....
http://harveyorgan.blogspot.com/2012/07/spain-10-yr-bond-yields-approach-7.html
Good evening Ladies and Gentlemen:
The price of gold fell $2.10 to $1589.10. Silver fell by one cent to $27.29.
Both metals were under pressure early in the session but rebounded as the Dow rose. The markets still think that Bernanke must engage in QEIII as the economy stagnates and thus the reason that the Dow finished in triple digits today.
Today we witnessed the Spanish bonds creep ever so close to 7%. The Italian bonds also finished the day at 6.07%. Spain saw further deterioration in its finances as bank withdrawals continue unabated. Bad bank loans continue to play havoc in Spain as well as house prices continue to fall for the 14th consecutive month.
In Italy, Mario Monti has asked for the resignation of Lombardo the governor of Sicily as this autonomous region is set to default on its bonds. Sicily represents 5.5% of Italy's GDP and has over 19.5% unemployment. The Euro/USA cross finished the day at 1.228
The city of Compton California is now contemplating defaulting on its muni bonds. This would be the first major California city to enter the morgue.
The Bank of America reported its earnings today and over 1/2 came from reserves for loan losses.
However, their reserves for loan losses for the first time are now a negative 6.7 billion Usa dollars.
Ladies and Gentlemen: you can expect troubles with BAC shortly!
We will go over all of these stories and others but first let us head over to the comex and assess trading today.The total gold OI lowered by 1,049 contracts from 434,366 to 431,317. Gold recovered from the early raid so maybe a few more bankers lightened up on their shorts. The July delivery month for gold saw its OI lower by one contract from 25 to 24 despite 8 delivery notices yesterday. We thus gained 7 gold contracts or 700 oz of additional gold ounces standing. The next big delivery month is August which is less than 2 weeks away. Here the OI fell by 5466 contracts from 178,036 to 172,570. Most rolled their contracts into either October or December. The estimated volume at the gold comex today was extremely light at 136,549 contracts. The confirmed volume yesterday was also on the light side at 155,522. Many investors are abandoning the comex knowing full well that it is rigged.
The price of gold fell $2.10 to $1589.10. Silver fell by one cent to $27.29.
Both metals were under pressure early in the session but rebounded as the Dow rose. The markets still think that Bernanke must engage in QEIII as the economy stagnates and thus the reason that the Dow finished in triple digits today.
Today we witnessed the Spanish bonds creep ever so close to 7%. The Italian bonds also finished the day at 6.07%. Spain saw further deterioration in its finances as bank withdrawals continue unabated. Bad bank loans continue to play havoc in Spain as well as house prices continue to fall for the 14th consecutive month.
In Italy, Mario Monti has asked for the resignation of Lombardo the governor of Sicily as this autonomous region is set to default on its bonds. Sicily represents 5.5% of Italy's GDP and has over 19.5% unemployment. The Euro/USA cross finished the day at 1.228
The city of Compton California is now contemplating defaulting on its muni bonds. This would be the first major California city to enter the morgue.
The Bank of America reported its earnings today and over 1/2 came from reserves for loan losses.
However, their reserves for loan losses for the first time are now a negative 6.7 billion Usa dollars.
Ladies and Gentlemen: you can expect troubles with BAC shortly!
We will go over all of these stories and others but first let us head over to the comex and assess trading today.The total gold OI lowered by 1,049 contracts from 434,366 to 431,317. Gold recovered from the early raid so maybe a few more bankers lightened up on their shorts. The July delivery month for gold saw its OI lower by one contract from 25 to 24 despite 8 delivery notices yesterday. We thus gained 7 gold contracts or 700 oz of additional gold ounces standing. The next big delivery month is August which is less than 2 weeks away. Here the OI fell by 5466 contracts from 178,036 to 172,570. Most rolled their contracts into either October or December. The estimated volume at the gold comex today was extremely light at 136,549 contracts. The confirmed volume yesterday was also on the light side at 155,522. Many investors are abandoning the comex knowing full well that it is rigged.
The total silver comex OI fell by 747 contracts from 122,566 to 121,819. I believe that we lost a few banker shorts in silver as well. The front delivery month of July saw an extremely strange reading with a fall in OI from 1552 contracts to 563 for a loss of 989 contracts. We had only 441 delivery notices filed yesterday so we actually had a massive loss of 548 contracts or 2.74 million oz. I find it hard to believe that this many would leave July and move to September. The data seems quite suspect!! The August delivery month saw its OI gain 3 contracts to 262. The next big delivery month is September and here the OI fell very marginally by only 197 contracts to 61,137. The estimated volume today was extremely anemic at only 23,617 contracts. The confirmed volume yesterday was a little better at 40,900. No doubt many investors who used to play the paper silver comex no longer do so.
* * *
and now for silver:
July 18.2012:
July 18.2012:
| Silver |
Ounces
|
| Withdrawals from Dealers Inventory | nil |
| Withdrawals from Customer Inventory | 679,051.21 (Delaware,HSBC, Scotia,) |
| Deposits to the Dealer Inventory | nil |
| Deposits to the Customer Inventory | 62,871.254 (Delaware) |
| No of oz served (contracts) | 436 (2,180,000) |
| No of oz to be served (notices) | 127 (635,000) |
| Total monthly oz silver served (contracts) | 1703 (8,515,000) |
| Total accumulative withdrawal of silver from the Dealers inventory this month | nil |
| Total accumulative withdrawal of silver from the Customer inventory this month | 4,329,922.2 |
We had considerable activity in the silver vaults today.
The customer at Delaware received the following silver deposit:
1. 62,871.254 ozThe customer had the following silver withdrawal:
1. 989.70 oz out of Delaware
2. 979.30 oz out of HSBC
3. 677,082.21 oz out of Scotia.
total withdrawal 679,051.21 oz
* * *
and some manipulation news .....
'Powers that be' are obstructing gold's ascent, Tocqueville's Hathaway tells King World News
Submitted by cpowell on Wed, 2012-07-18 04:35. Section: Daily Dispatches
12:32a ET Wednesday, July 18, 2012
Dear Friend of GATA and Gold:
Interviewed by King World News, Tocqueville Gold Fund manager John Hathaway says gold should be trading at $2,500 but that "the powers that be" don't want it getting that high and that banks have become "agents of the state." Hathaway's interview is excerpted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
and...
Von Greyerz explains why gold will win; Hepburn explains why manipulation is easy
Submitted by cpowell on Wed, 2012-07-18 14:29. Section: Daily Dispatches
10:23a ET Wednesday, July 18, 2012
Dear Friend of GATA and Gold:
Elaborating on his recent interview with King World News, gold fund manager Egon von Greyerz of Matterhorn Asset Management explains why he believes gold will defeat "intervention, manipulation, and suppression." Von Greyerz's commentary is headlined "Why Gold Will Erupt" and it's posted at Matterhorn's GoldSwitzerland Internet site here:
And former GATA researcher Andrew Hepburn has surfaced in the Canadian magazine Macleans with an essay about market manipulation. Hepburn's essay is headlined "The LIBOR scandal: Why Manipulating Prices Is Easier in the Financial Industry" and it's posted at Macleans here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
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