Harvey Organ's missive - January 7 , 2013 ....

http://harveyorgan.blogspot.com/2013/01/huge-gold-imports-into-chinajapanese.html

TUESDAY, JANUARY 8, 2013

Huge gold imports into China/Japanese Pension funds eyeing gold for first time/Unemployment in Spain rises to 26.6%/

Good evening Ladies and Gentlemen:


Gold closed up $16.00 to finish the comex session at $1661.50  Silver also followed gold rising by 39 cents to $30.42. Today we saw gold and silver actually strength as the Dow fell deeper into the red.
Demand for physical continues to strength despite the crazy antics of our bankers. Today we witnessed a huge increase in physical imports into China through Hong Kong to the tune of 91 tonnes of gold last month. Also silver imports are rising as well.  The USA mint saw a big rise in silver eagle sales. The Shanghai physical exchange continues to show huge strength with a total monthly sales of 19.5 tonnes of gold turnover.
The bankers will have massive trouble shorting gold as turnover sales continue to strengthen each and every month.

With gold shares performing poorly despite gold/silver's rise, expect more of the same raiding by the bankers as they try and quell these two precious metal's demand!!

In other news, Greece again is in need of cash.  Today, the Greek banks announced that due to the Greek haircut on the bonds it held, its income was curtailed badly.  Thus the Greek banks have a non performing problem coupled with a lack of income.  The EU set aside 50 billion euros and already the banks need more than that.Unemployment again rises in Spain, this time a record 26.6% and all of Europe has an unemployment level of 11.8%.

Barrick gold again get it's teeth kicked in as the Chinese sovereign wealth fund has passed on it's investment with Barrick's African gold division.

Perhaps the biggest news from the Japanese pension funds who are now willing to buy gold ETF's as every other asset class seems to be waning.

Also Japan seems to be following Switzerland's move in buying other nations bailout funds.  Japan wishes to purchase the European ESM bailout funds and thus finance the deficit's of European peripheral nations debt.

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Jan 8.2013    The  January contract month

Gold	Ounces
Withdrawals from Dealers Inventory in oz	nil
Withdrawals from Customer Inventory in oz	nil
Deposits to the Dealer Inventory in oz	0   (nil)
Deposits to the Customer Inventory, in oz	32,422.083 (Brinks,HSBC.Scotia)
No of oz served (contracts) today	4    (400)
No of oz to be served (notices)	60  (6,000 oz)
Total monthly oz gold served (contracts) so far this month	893  (89,300 oz)
Total accumulative withdrawal of gold from the Dealers inventory this month	6599.63
Total accumulative withdrawal of gold from the Customer inventory this month	200,165.0 oz

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The CME reported that we had 4 notices filed or 400 oz of gold. To obtain what is left to be served upon, I take the OI for January  (64) and subtract out today's delivery notices (4) which leaves us with 60 notices or 6,000 oz of gold left to be served upon our longs.

Thus the total number of gold ounces standing in this non active month of January is as follows:

89,300 oz (served)  +  6000 oz (to be served upon) =   95,300 oz or 2.96 tonnes.
we gained 1700 additional oz of gold standing for the January delivery month.

Generally, January is a very weak delivery period for both gold and silver and thus the 2.96 tonnes of gold is quite a surprise.
Also at the beginning of this month I promised you that we will see advancing amounts of metal standing and it sure looks like that is where we are heading.
You will see the same in silver with increasing amounts standing in that arena.

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January 8.2013:   The January silver contract month

Silver	Ounces
Withdrawals from Dealers Inventory	nil
Withdrawals from Customer Inventory	1,009,276.015  (Delaware,HSBC,Scotia))
Deposits to the Dealer Inventory	nil
Deposits to the Customer Inventory	1,237,155.78 (JPM,Scotia)
No of oz served (contracts)	0  (nil oz)
No of oz to be served (notices)	222  (1,110,000 oz)
Total monthly oz silver served (contracts)	308  (1,540,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month	914,342.42
Total accumulative withdrawal of silver from the Customer inventory this month	1,455,849.8

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The CME reported that we had zero  notices filed for zero oz of silver.  To obtain what is left to be served upon, I take the OI standing for January (222) and subtract out Monday's delivery notices (0) which leaves us with 222 or 1,110,000 oz left to be served upon our longs.

Thus the total number of silver oz standing for the month of January is as follows:

1,540,000 oz (served)  +  1,110,000 (oz to be served upon)  = 2,650,000 oz
we  gained 400,000 oz of silver  standing for January. This is turning out to be a very good delivery month for silver.

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selected gold and silver related news....

a very important gold trading report today

(courtesy Ben Traynor/bullion vault)

Dealers Report "Very Strong" Gold Demand from China, Indian Interest "Significant" By: Ben Traynor, BullionVault

-- Posted Tuesday, 8 January 2013 | Share this article | Source: GoldSeek.com London Gold Market Report WHOLESALE gold bullion prices ended Tuesday morning in London at $1655 per ounce, regaining ground lost yesterday to climb back to where it started the week, with dealers reporting signs of strong demand from India and China, the world's two biggest gold buying nations. Silver climbed to $30.40 an ounce, slightly up on the week so far, while stocks and commodities also edged higher and US Treasuries fell. The Shanghai Gold Exchange Monday reported record trading volumes equivalent to 19.5 tonnes for its Au9999 contract, which represents gold bullion of 99.99% purity. Tuesday's Au9999 volume fell to just under 9.3 tonnes, still significantly above the last year's daily average. "Physical [gold] demand is very strong," one Beijing trader told newswire Reuters this morning. China celebrates Lunar New Year on 10 February this year. Official customs data from Hong Kong meantime shows China imported 90.7 tonnes of gold from Hong Kong in November, a 91% increase from the previous month. The volume of gold flowing the other way rose 23% to 27.7 tonnes. Hong Kong is widely regarded as the major conduit for Chinese precious metals imports. Premiums on gold bullion shipments to India hit a two-month high Tuesday, with dealers blaming a rush to buy gold before an expected import duty hike. Gold shipped to India traded between $2 and $3 an ounce above London prices, dealers reported. By comparison, premiums in Singapore this morning were around $1-$1.20 an ounce. "Our physical desk has already noted significant interest from Indian clients looking for gold, which could push up imports until the tax in announced," says a note from Nick Trevethan, senior commodity strategist at ANZ. "Nothing is available readily," adds one dealer at a bullion importing bank in Mumbai, adding that some shipments are taking up to a week to arrive. Western investors  meantime continued to add to their gold positions in December, according to data from BullionVault. The Gold Investor Index, which tracks buying and selling on the world's largest online precious metals exchange, rose to a 12-month high in December. Over in Japan, investment by pension funds in gold exchange traded funds could more than double over the next two years, according to Itsuo Toshima, pension fund advisor  and former regional director Japan/Korea at the World Gold Council. "Bullion's role as an inflation hedge, long ignored by Japanese fund operators, has come under the spotlight thanks to [Japan's prime minister Shinzo] Abe's economic policy," said Toshima Tuesday. Following his election victory last month, Abe said the Bank of Japan should adopt a 2% inflation target, double the current targeted level, having previously called for unlimited quantitative easing during the election campaign. "Gold may be a standard asset-class in the portfolio of Japanese pension funds as Abe's target is realized," said Toshima. *  *  *  The following is a gold trading report from Europe early this morning, where Goldcore is pounding the table on the huge increase in gold volume from the Shanghai gold physical exchange equivalent to 19.5 tonnes of gold for the month. (courtesy Goldcore)  China's Gold Volume “Shot Through The Roof” Yesterday Ahead Of Lunar New Year Submitted by Tyler Durden on 01/08/2013 08:18 -0500 Bond     British Pound     China     European Central Bank     Eurozone     Gold Spot    India     Japan     Reuters     Technical Analysis     Twitter     United Kingdom     Yen    Yuan From GoldCore China's Gold Volume “Shot Through The Roof” Yesterday Ahead Of Lunar New Year Today’s AM fix was USD 1,653.75, EUR 1,261.06 and GBP 1,028.07 per ounce. Yesterday’s AM fix was USD 1,653.75, EUR 1,267.82 and GBP 1,029.60 per ounce. Silver is trading at $30.38/oz, €23.25/oz and £18.95/oz. Platinum is trading at $1,569.50/oz, palladium at $672.00/oz and rhodium at $1,150/oz. *  *  *  Japanese pension funds and ETPs to buy $550 million in gold over the next two years and what about joe public? By: Peter Cooper, Arabian Money -- Posted Tuesday, 8 January 2013 | Share this article | Source: GoldSeek.com Japanese pension funds and gold-backed exchange traded products are going to more than double their gold holdings over the next two years to $1.1 billion, buying some 27 tons of gold at current prices, according to veteran World Gold Council representative Itsuo Toshima who is quoted today on Bloomberg. His warning comes as new prime minister Shinzo Abe has pledged to push inflation to two per cent leaving Japan’s pension funds no option but to hedge against a weakening yen. Japanese investors have long ignored gold as irrelevant in their depressed, inflation-free economy. That is set to change. Gold’s return ‘Bullion’s role as an inflation hedge, long ignored by Japanese fund operators, has come under the spotlight thanks to Abe’s economic policy,’ said Mr. Toshima. ‘Gold may be a standard asset-class in the portfolio of Japanese pension funds as Abe’s target is realized.’ The Government Pension Investment Fund of Japan, the operator of the world’s largest pension fund has avoided bullion and commodities and has 67 per cent of their assets allocated to Japanese bonds. ‘Pension money invested in bullion is ‘peanuts’ at the moment,’ Mr. Toshima added. ‘If one per cent of their total assets shift to the metal, the gold market would explode.’ Joe public? ArabianMoney concurs and we also wonder what will happen as the Japanese public catches on. They are among the greatest savers in the world and also huge holders of domestic bonds. Is this not the transfer from bonds to the very tight gold and silver markets that we have been talking about for some time now? The price upside for precious metals in this transfer is going to be huge because there is a collossal value stored in paper and to absorb that money bullion will have to soar in value. We think the Japanese market is the one to watch at the moment for the next step in the global financial crisis. This is it, a bond crisis in the making and a massive transfer of wealth into gold and silver. Big sales volume for American Silver eagles: (Michael Zielinski/coinupdate.com) Highest Ever One-Day Sales for American Silver Eagles?January 7, 2013 By Michael Zielinski Today, January 7, 2013, the United States Mint began accepting orders from authorized purchasers for 2013-dated American Silver Eagle bullion coins. The opening day sales tally of 3,937,000 coins seems to represent the highest one-day sales total in the history of the program. In recent years it has been typical for the Mint to experience the strongest sales for Silver Eagle bullion coins on the first day of availability for newly dated coins. Last year, orders had been placed for 3,197,000 Silver Eagles on the first day of availability for the 2012-dated coins. In 2011, opening day sales had measured 2,085,000 coins, and in 2010 opening day sales had measured 2,440,000 coins. For the years 2009 and prior back to the start of the program in 1986, none of the monthly sales totals have exceeded today's one-day sales total of 3,937,000 coins.Today's apparently record breaking one-day sales are driven by the typically high demand for newly dated coins as well as pent up demand following the unexpected sell out of 2012-dated Silver Eagle bullion coins on December 17, 2012. This sell out created a three week period during which no Silver Eagle bullion coins were available for authorized purchasers to order from the Mint. During 2012, the Mint had sold 6,107,000 Silver Eagle bullion coins during the full month of January. Annual sales had reached 33,742,500 coins. http://news.coinupdate.com/highest-ever-one-day-sales-for-american-silver-eagles-1796/ HOW THE ‘CHINA MONEY’ COULD PUSH SILVER 58% HIGHER IN 2013 by Dr. Alex Cowie on 8 January 2013 If the mainstream perceives gold investors as cranks, they see silver investors as the real nutters out there. Yet this scorn is misplaced. In the space of just one decade, silver has quietly gained 233% – and that’s even factoring in the rising Aussie dollar. This 233% gain means that if an Aussie investor had bought A$15,000 of silver in 2003, it would be worth A$50,000 today. The gains have come in fits and starts – as is the way with silver. However the average gain for Aussie dollar silver has been 16.3% per annum, which puts it well ahead of Aussie dollar gold at 11.6% per annum. The trick is to maximise your gain by timing your entry. And the good news is that after two slow years for silver, it now looks more than ready for its next big rally. In 2012, silver notched up just 5.4% (I’ll refer to all gains in Aussie dollar terms). This was a pretty disappointing year for silver, particularly as it was sitting above 20% as recently as late November. And back in 2011 (a nightmare year for silver investors) it finished the year with a loss of 10.8%. So silver has had a couple of years in the wilderness now. And this could pave the way for a big 2013. Take a look at this chart I’ve put together for you below to show how wildly silver’s performance has varied in the last ten years. Aussie dollar silver: slow years followed by a few big years Source: Money Morning Australia The pattern with silver is very much one of a few slow years followed by a few big years. For example, after a dismal 2007-2008, silver went on to gain 15.8% in 2009, then an epic 58% in 2010. So after enduring a very weak 2011-2012, the chances are now much higher that we see some real action from silver in 2013. Another year like 2010, in which we see silver gain 58% is entirely possible from here. *  *  *