http://www.zerohedge.com/news/2013-04-27/front-line-observations-seasoned-gold-silver-bullion-dealer
Submitted by Tyler Durden on 04/27/2013 20:07 -0400
http://www.caseyresearch.com/gsd/edition/ohmigod-a-gold-mining-company-notes-suspicions-of-market-manipulation
http://harveyorgan.blogspot.com/2013/04/another-raid-in-goldsilversilver-oi.html
Front-Line Observations From A Seasoned Gold & Silver Bullion Dealer
Submitted by Adam Taggart of Peak Prosperity,
Spikes and plunges in the U.S. dollar price of gold; this is not new. It goes back to the early 1970s. We remember that for most of the past 40 years, physical gold and silver investors, particularly in the U.S., tended to chase big rallies and buy late, while too often selling after plunges or after long periods of price erosion. Gold was sold then primarily as an inflation hedge. When it was working, speculators bought much more. When it stopped working as an inflation hedge, they first became puzzled and frustrated, then fearful, and they sold out at bottoms.So, fast-forward to this month, and today’s gold community starts to look a bit different as the breakdown below previous gold and silver price support levels began, and especially last week, with gold going below $1400. Physical buyers were outnumbering sellers in our store by at least 5 to 1. And some of the unfortunate sellers had not changed their thinking about gold long-term; they just needed fast liquidity, which is another benefit of gold.80 – 90% of the people who have bought gold from us in the last two weeks on the drop were already gold owners, already gold savers.Their attitude is, gold is on sale
Robert Mish kindly took a break from operations at his bullion dealership to return for another conversation with Chris on what he's been observing on the front lines this week, transacting with both retail and wholesale customers.
Gold
Gold is a little bit backlogged. The premiums are slightly elevated. Products commonly traded, such as gold maple leafs, American eagles, and refiner one-ounce bars are 2-3 weeks out. And for some of my colleagues further away in the supply chain, 4-6 weeks out. The premiums are up to maybe $5 to $15 dollars an ounce over normal.
Silver
Silver is another story. The demand for silver has completely overwhelmed existing inventories and the ability of the mints and their refiners to produce more product. The other big mystery is: how much more silver is there to make product out of? Will the buyers be able to keep the pressure on until the price of [physical] silver and paper silver have to move up just to return the market’s equilibrium? Right now, 100-ounce silver bars, which a few months ago were trading dealer-to-dealer around melt or a little over, are now 75 cents to a $1 an ounce – not retail, our cost – and 4 to 8 weeks out. 1-ounce and 10-ounce refiner product used to be 30, 40, 50 cents. Now it’s $1.10-$1.25, our cost, 2-4 weeks out. Silver maple leafs, our cost from the prime American distributor of the Canadian Royal Mint today: $3.75. It was $1.70 a month ago. 3-4 weeks out. Silver eagles, normally a little over $2, they are $5 if you want them live; $4 if you want them in 4-6 weeks.These premiums are the physical market saying, we are willing to pay this for real silver right now.Whether the suppliers can meet this demand and bring the premium down, we’ll see weeks from now. It is much different this time than it was in the past, in that the drop in price is bringing in buyers rather than sellers. It used to be that a rally would bring in the buyers. So we have had an important change.
The Big Picture
The powers that be guided a lot of that potential demand into paper gold and exchanged traded products of various forms. Then they slaughter those products, and I’m sure in their mind hopefully discouraged those people for a long time. But in time, changing cultures and the prosperity of people internationally in cultures which understand gold, I think is going to take its toll on the shorting game. And the shorting game will end badly. And that doesn’t mean that those who have the other side of the equation necessarily will profit, because they will find a corrupt way to burn them.What we have now is a game of chicken between the physical buyers and the paper shorters. It is like, who will quit first? We have a shortage of physical product. But we are told by the mint distributors and the refiners Oh, don’t worry. In two, three, four, five weeks your orders will arrive. If the buying continues at the pace it’s going, or begins to expand to a greater percent of the population in this country and worldwide, eventually, by asking for delivery, the physical buyers will change the game. It is a poker game of both real cards and bluffing. Are the shorts bluffing? Yeah. But they get away with it over and over again. This time when the longs fold as they have in the past, the shorts, they sandbag the river. But the flood of fiat currency keeps rising. If buyers would stick to their guns and develop habits and understand why they buy gold and silver, the shorts will run out of sand.
Robert also shares details on the buying activity of his Asian clients. There is much for the West to emulate, particularly if it does not want to wake up one day realizing it has dis-hoarded the bulk of its bullion overseas.
Click the play button below to listen to Chris' interview with Robert Mish (41m:34s):
http://www.caseyresearch.com/gsd/edition/ohmigod-a-gold-mining-company-notes-suspicions-of-market-manipulation
¤ YESTERDAY IN GOLD & SILVER
The gold price rallied a bit during the early going in Far East trading, but got sold down starting around 9:30 a.m. Hong Kong time. From that high tick of the day, around $1,487 spot, it got sold down a bit over twenty-five bucks, hitting its London low early in the morning BST.
Then starting around 11:00 a.m. BST, gold began to rally once more...and that rally gathered a bit more steam once New York began to trade. But just minutes before the London close [11:00 a.m. in New York] a not-for-profit high frequency trader appeared...and by 12:15 p.m. EDT had gold down to its low tick of the day, which was $1,447.30 spot. The New York high was $1,484.10 spot.
The gold price rallied back in fits and starts from there...closing the Friday trading day at $1,462.90 spot...down $5.30 from Thursday's close. Gross volume was a grotesque 265,000 contracts, mostly of the HFT variety.
In silver, the only real difference between it and gold was the fact that the London low came about 12:30 p.m. BST...thirty minutes after the noon London silver fix. The New York high in silver was also minutes before the London close...and the high-frequency trader delivered the coup de grâce at 11:30 a.m. EDT.
From that point, the silver chart looks pretty much the same as the gold chart, with the New York low [$23.57 spot] coming at 12:15 p.m. EDT right on the button. The Far East high tick was around $24.85 spot...and intraday move of almost $1.30.
Silver closed at $24.04 spot...down 36 cents from Thursday. Volume, net of the May delivery month roll-overs, was a hair under 17,000 contracts...mostly vapour and fumes.
Here's the New York Spot Silver [Bid] chart on its own so you can see the not-for-profit seller's action close up and personal. The NY spot gold chart looks similar.
Not surprisingly, the high ticks in platinum and palladium all came at the same moment as gold and silver's high. This was obviously price management across the board in all precious metals...and only the willfully blind would think otherwise.
The dollar index closed on Thursday at 82.78...and spent all of Friday chopping broadly lower...and the index closed on Friday afternoon at 82.47...down 31 basis points from Thursday.
The dollar index low came about 10:50 a.m. in New York, just minutes before the high ticks in all four precious metals. The big axe fell at 11:30 a.m...and was not related to anything that the currencies were doing at the time.
The CME's Daily Delivery Report showed that 562 gold and 2 lonely silver contracts were posted for delivery on Tuesday. JPMorgan Chase was the big short/issuer with 558 contracts...and one of their partners in crime in the precious metal price management scheme, Canada's Bank of Nova Scotia, was the long/stopper of 555 of those contracts. This should just about wrap up deliveries for April in both metals. The link to yesterday's Issuers and Stoppers Report is here.
The inventories of GLD took another hit yesterday. This time an authorized participant withdrew 232,107 troy ounces and, for the second day in a row an authorized participant added silver toSLV...820,985 troy ounces to be exact.
I'm starting to wonder about these never-ending withdrawals from GLD...as it's my opinion that we're long past the investors dumping-their-holdings story...and I'm looking around for another explanation.
The short interest report for the first half of April for both GLD and SLV was posted on theshortsqueeze.com Internet site either late Thursday night or last night. It showed that, during the period mentioned, the short interest in SLV blew out by 27.11 percent...and GLD by an eye-watering 48.47 percent. I was quite taken aback at first glance, but with sober second thought it occurred to me that if I was 'da boyz'...both SLV and GLD would be one of the vehicles that I would use to make obscene profits and acquire more metal at bargain-basement prices. I'm prepared to bet serious coin that these obscene short positions have already been closed out...and that fact will be reflected in the next short interest report coming up in about two weeks time.
Joshua Gibbons, the Guru of the SLV Bar List updated his about.ag/SLV/ website on Thursday with the in/out activity of SLV as of the close of trading on Wednesday. This is what he had to say..."Analysis of the 24 April 2013 bar list, and comparison to the previous week's list. No bars were added or removed. 269 bars had accounting changes (e.g. from 0.9990 fine to 0.9999 fine). All bars with changes were in Brinks London, which is likely currently being audited. As of the time that the bar list was produced, it was over-allocated 483.4 oz." The link to his website is here.
The U.S. Mint had another sales report yesterday. They sold 5,000 ounces of gold eagles...1,000 one-ounce 24K gold buffaloes and, for the third day in a row...zero silver eagles. Month-to-date the mint has sold 208,500 ounces of gold eagles...36,000 ounces of one-ounce 24K gold buffaloes...and 3,232,000 silver eagles.
Over at the Comex-approved depositories on Thursday, they reported receiving 312,978 troy ounces of silver...and shipped 790,669 troy ounces out the door. The link to that activity is here.
In gold on Thursday, the Comex-approved depositories reported receiving 153,748 troy ounces...and shipped a smallish 1,300 troy ounces of the stuff out the door. The link to that activity ishere.
I was happy to see that everything appeared to be back to normal with this week's Commitment of Traders Report. Whether the data from last week's COT Report was reported in error or tampered with, is still not known, but the result was that the data in yesterday's report has partially masked what happened in the prior week's report.
But, having said that, this latest report is still pretty impressive...and is still one for the record books in many categories.
In silver, the Commercial net short position declined by a very chunky 26.7 million ounces...and now stands at 85.8 million ounces...not a record low...but pretty close.
The Big 4 [JPM, Scotiabank, HSBC USA....plus one other short holder of no consequence] were short 193.1 million ounces of silver...and the '5 through 8' traders were short an additional 50.9 million ounces of silver. As far as concentration goes, the 'Big 4' are short 36.0% of the entire Comex futures market on a 'net' basis...a big drop from two weeks ago. The '5 through 8' are short an additional 9.3 percentage points of the Comex futures market in silver on a net basis. Ted Butler is busy with his son's wedding, so I didn't have the opportunity to talk to him yesterday, so I'm not sure where JPMorgan's short position stands at the moment.
There are 37 short-side traders in the Commercial category of the COT Report in silver...and 4 of them are short 36 percent of the entire Comex futures market in that metal. I'd guess that JPMorgan holds at least half of that amount on its own.
The other stand-out features in the silver COT Report was the fact that the net long position in the Non-Commercial category has shrunk down to 15,000 contracts...and the net long position of the small traders in the Nonreportable category has virtually disappeared...and currently stands at 2,163 contracts! I don't remember ever seeing a number that low and, if the truth be known, I never thought it possible.
In gold, the Commercial net short position imploded by 3.75 million troy ounces...and now sits at 10.44 million ounces. The Big 4 are short 8.63 million ounces of gold...and the '5 through 8' traders are short an additional 4.94 million ounces. These are monstrous changes...and I'm guessing that one would have to go back at least five years to see a number this low.
On a 'net' basis [once the market-neutral spread trades are subtracted out] the Big 4 are short 24.7 percent of the entire Comex futures market in gold...and the '5 through 8' traders are short an additional 14.2 percentage points of the Comex futures market.
In the Non-Commercial category, the net long position declined to just over 104,000 contracts. Their net long position...10.4 million ounces...is exactly equal to the Commercial net short position of 10.4 million ounces...and that's because the Nonreportable position [the small traders] is a vanishingly small 133 contracts...basically zero! Unheard of!
I'm sure that there was a lot more going on 'under the hood' in both metals...and I look forward to reading what silver analyst Ted Butler has to say about it in his weekend commentary...when he can find the time to write it, that is. In case you're interested, the link to yesterday's legacy COT Report is here...and the Disaggregated COT Report is here.
Here's Nick Laird's "Days to Cover Short Positions" chart updated with yesterday's data.
(Click on image to enlarge)
* * *
Selected news and views.....
Bundesbank declares 'war' on Mario Draghi bond bail-out at Germany's top court
The hard-line central bank - known as the temple of monetary orthodoxy - told Germany’s top court that the ECB’s pledge to shore up Italian and Spanish debt entails huge risks and violates fundamental principles. “It is not the duty of the ECB to rescue states in crisis,” it wrote in a 29-page document leaked toHandelsblatt.
The Bundesbank unleashed a point by point assault on every claim made by ECB chief Mario Draghi to justify emergency rescue policies - or Outright Monetary Transactions (OMT) - unveiled last summer to stop Spain’s debt crisis spiralling out of control.
The Draghi plan mobilized the ECB as lender of last resort and led to a spectacular fall in borrowing costs across the EMU periphery, buying nine months of financial calm. The credibility of the pledge rests entirely on German consent. Analysts say the crisis could erupt again at any moment if that is called into question.
“The report borders on economic warfare,” said Harvinder Sian from RBS. “We think there is going to be fear and dread in the market that the court will reject OMT.”
This Ambrose Evans-Pritchard offering is definitely worth reading...and it was posted on the telegraph.co.uk Internet site early yesterday evening BST...and I thank Ulrike Marx for her second offering in today's column.
Three King World News Blogs
The first interview is with Eric Sprott...and it's titled "Historic Panic Bottom Ushers in New Gold Bull Market". The next blog is with Egon von Greyerz. It's headlined "Stunning Gold Shortages as Western Ponzi Scheme Collapsing". Here's Eric Sprott again...and it's entitled "Incredible Global Gold Rush Triggers $3,000 Target".
Gold’s price plummet puts smiles on India’s government and brides alike
It would seem that Indian brides and the country’s government have something in common, both are both are elated that gold prices have been sliding.
While the sharp decline in gold prices is set to have a favourable impact on the Indian economy, with its high current account deficit and the overall balance of payment situation, Indian brides have been waiting for just such an occasion.
Though some weddings are fixed for December, the precious metal’s biggest price drop in three decades in April has provoked a mad clamour for the most ostentatious jewellery design on retailers’ shelves. More grams for less, is the new motto!
On the other end of the spectrum, the Indian Prime Minister’s Economic Advisory Council is also happy: though gold imports are clearly set to go up in 2013-14 due to a fall in prices, in value terms, they will fall.
This mineweb.com article was filed from Mumbai on their Friday...and it'sdefinitely worth reading. Thanks go out once again to Ulrike Marx.
Gold Buyers Throng Indian Stores for Second Week on Rally
Gold consumers in India, the world’s biggest importer, thronged jewelry stores across the country for a second week on speculation that bullion may extend a rally after the biggest plunge in three decades.
“We waited for sometime to see if prices will fall more but when we saw them moving up again, we decided it’s time,” said Sripal Jain, a 77-year-old silver dealer who came with his younger brother, daughter and daughter-in-law to buy gold necklaces at Mumbai’s Zaveri Bazaar. “We don’t have any wedding or occasion coming up. The rates fell, so we decided to buy.”
“Everyone is thinking that they will miss the bus if they don’t buy now as prices have started moving up,” said Ramesh Pahlajani, partner at Mumbai-based Bherumal Shamandas Jewellers. “Demand has been very good since last week.”
This Bloomberg offering, also filed from Mumbai on their Friday, was sent our way by Ulrike Marx once again...and it's well worth your time.
Turkish gold imports jump in first 3 weeks of April
Turkey, one of the world's biggest gold buyers, has imported more of the precious metal in April than in any month since last July following a surge in domestic demand after gold prices hit a two-year low last week.
Bourse Istanbul Vice Chairman Cetin Ali Donmez told Reuters on Thursday that imports rose to 18.52 tonnes between April 1-22, a higher level than in any one of the last nine months.
"As a result of demand caused by the movement in price, imports this month look set to pass 20 tonnes," Donmez said.
Gold imports in March were 18.26 tonnes, 17.34 tonnes in February, and 11.27 tonnes in January.
This must read mineweb.com story was filed from Istanbul yesterday...and I thank Ulrike Marx for her final offering in today's column.
Swiss banking chief tries to quell clamor about gold
Swiss National Bank President Thomas Jordan won't exclude increasing the central bank's gold holdings at some point and said most of its reserves are held domestically.
"As part of a good diversification of currency reserves, a certain proportion of gold can help reduce the balance sheet risk," Jordan said in Bern today, according to a copy of his speech.
"We have therefore never ruled out the possibility of future gold purchases," he said.
The SNB owns 1,040 tons of gold. More than 70 percent are held in Switzerland, with about 20 percent at the Bank of England and 10 percent at the Bank of Canada, he said, for the first time disclosing where the physical assets were stored.
This Bloomberg story was filed from Zurich in the wee hours of yesterday morning Eastern Daylight Time...but I'm posting the GATA release on this, because some of the data in the Bloomberg story has already been edited out...and the original copy, in its entirety, is posted at the gata.org Internet site.
Ohmigod! A gold mining company notes suspicions of market manipulation
Here's something you seldom see: a gold mining company taking note of suspicions of manipulation of the gold market. Until the gold mining industry is prepared to defend itself against market manipulation, it will remain the helpful patsy of the Western central banks and the enemy of its own investors.
The above paragraph of introduction was wordsmithed by GATA's Chris Powell...and truer words were never spoken. Finally, a mining company executive that has grown a pubic hair or two. Maybe others will follow his lead? One can only hope. This press release was posted on the yahoo.comInternet site on Tuesday...and as I'm sure you've already noted, this is another news item I found in a GATA release.
¤ THE WRAP
Gold has worked down from Alexander's time. When something holds good for two thousand years, I do not believe it can be so because of prejudice or mistaken theory. - Bernard M. Baruch
Today's pop 'blast from the past' is a piece that I first heard live when Gary Brooker et al played it with the Edmonton Symphony Orchestra back in 1992 when I was on the board of directors. AfterWhiter Shade of Pale and Conquistador...this is their most popular composition. This performance was with the Danish National Concert Orchestra and choir at Ledrborg Castle in Denmark in August of 2006. I note that Geoff Whitehorn is still playing lead guitar...Mark Brzezicki is still playing the drums...and Gary has still got the pipes. This version, in my opinion, is the best I've heard. The recording is stunning...and the link is here.
Today's classical 'blast from the past' is a J.S. Bach chestnut that I never tire of listening to. It's theConcerto in D minor for two violins, strings and continuo, BWV 1043. The link to the first and second movements are here...and the third movement, here. Doing the honours is the St. Petersburg Conservatory Chamber Orchestra, with soloists Lyubov Stekolshchikova and Elina Drukh. The tempo is a touch faster than I'm used to.
Well, JPMorgan et al are still at it...not only from a price perspective, but also the shares. As I commented in Thursday's column...why the big rise in share prices on zero price movement in either gold or silver on Wednesday? Well, it's a good bet that 'da boyz' were buying so they could sell them into the next rally...and that came on Thursday...and then they sold the rest on Friday. John Embry has always been of the opinion that the shares as well as the metal prices themselves, were managed...and their price action over the last three days certainly reeks of that.
I'd dearly love to know what's going on behind the scenes, but in the face of unprecedented world-wide demand in the physical precious metal itself, I'm sure that they are having their issues at the moment. There's no doubt in my mind that they were caught totally flat-footed by the world's reaction to their little 'Comex Caper'...and are back at the drawing board figuring out how to extricate themselves from this self-inflicted wound without exacerbating the situation.
And as I and others have already stated, this bifurcated market cannot last for too long, as the current over-the-top physical demand will have the bullion banks for lunch at some point. The only thing that will kill this retail demand stone cold dead is a sudden [on a weekend, perhaps] upward revaluation in price that puts gold out of reach of all but the richest. That goes for silver as well...and silver will become the new gold for the masses.
A price high enough to accomplish that will undoubtedly turn a lot of precious metal buyers into precious metal sellers virtually overnight.
The only other option is 'death by a thousand cuts'...where precious metal prices are allowed to rise 'normally'...whatever that means these days...and the buying frenzy on Planet Earth will begin anew. If you read some of the above-posted stories out of India, that psychology is already starting to take hold since the bottom was put in on Tuesday morning last week in early Hong Kong trading.
But one thing is for sure...the status quo is not an option the central banks can allow to continue for long.
I wouldn't want to be short any of the precious metals at this point in history as we wait for the Fed and JPMorgan et al to make their next move.
Enjoy what's left of your weekend...and I'll see you here on Tuesday.
http://harveyorgan.blogspot.com/2013/04/another-raid-in-goldsilversilver-oi.html
Saturday, April 27, 2013
Another raid in gold/silver/Silver OI still elevated at 154,988/GLD loses another 7.65 tonnes on Friday/Italian bank's NPL's increase/Japan CPI disappoints at -.9%/USA GDP disappoints at 2.5%/Poor Michigan consumer confidence index/
Good morning Ladies and Gentlemen:
Gold closed down $8.20 to $1453.60 (comex closing time). Silver fell by $.34 to $23.76 (comex closing time). As I promised you Thursday night, a raid on Friday was likely due to the poor performance of gold/silver equities on Thursday despite the higher bullion price. The raid occurred when the London gold/silver market was put safely to bed (around 12 noon). The bankers are smart now, they know it is foolish to raid in physical time zones.
In the access market at 5 pm gold and silver rose :
gold: $1462.90
silver: $24.04
At the comex, the open interest in silver fell by a healthy 2415 contracts to 154,988 contracts (short covering by the bankers) as it is still holding firm at elevated levels . The open interest on the gold contract rose by 8,727 contracts to 419,829. The total amount of gold ounces standing for April remained constant at 34.46 tonnes as well as silver at 3,765,000 oz.
Late Friday night, the GLD reported another loss of gold, this time 7.65 tonnes of gold. This gold is leaving English waters heading for China and other nations of Eastern persuasion.
The SLV gained 2.367 million oz on Friday.
Over at the Comex, JPMorgan did not take in any new gold. They did however change registered gold into eligible gold. Their eligible gold is still at extremely low levels at 154,000 oz.
The comex registered gold is still very low at 69.4 tonnes.
We also have commentaries on the physical gold metal from Eric King, Jim Sinclair, Bron Suchecki,Von Greyerz and Eric Sprott.
In paper stories the the huge rise in Spanish unemployment to over 27% has set off riots in the streets in Spain. Also riots are occurring in Portugal.
In Italy we are witnessing more problems for the Italian banks as their non performing loans increase as the asset valuations decrease.
In Germany, Merkel seems to be losing her majority.
Mark Grant delivers a commentary on a true Debt to GDP of France as this country spirals out of control.
In Japan, instead of seeing a glimpse of hope for inflation, we are seeing the opposite, a huge disappointment in the CPI of -0.9%
In the USA, two big disappointments:
i) an initial flash GDP of 2.5% growth instead of projected 3.0%
ii) a lower Michigan consumer confidence index.
We also have lots of chatter of an invasion in Syria this time from the White House.
We will go over these and other stories but first.........................
Let us now head over to the comex and assess trading over there today:
The total gold comex open interest rose by 8727 contracts on Friday from 411,102 all the way up to 419 829, with gold rising by $38.40 on Thursday. It looks like we had massive short covering. The front April OI fell by 98 contracts from 309 down to 211. We had 98 notices filed on Thursday so we neither gained nor lost any additional gold which will be standing for the April gold contract month. The next non active contract month is May and here the OI rose by 26 contracts to 1448. The next big contract month is June and here the OI rose by 5,459 contracts from 245,255 down to 250,714. The estimated volume on Friday was humongous at 243,098. The confirmed volume on Thursday was also huge at 211,926 contracts.
The total silver comex OI fell by a hefty 2415 contracts from 157,403 down to 154,988 despite silver's $1.31 rise on Thursday.Thus no doubt, we had some considerable short covering and the OI that remains seem stoic and ready to take on the bankers. They seem quite impervious to pain and can withstand the nonsense the banks throw at them like the attack yesterday. The front non active delivery month of April saw its OI fall by 3 contracts from 14 down to 11 . We had 3 delivery notices filed on Thursday, so in essence we neither lost nor gained any silver contracts standing for delivery in April. The next big delivery month for silver is May and here the OI fell by 7,549 contracts to stand at 23,198. We are less than 1 week away from first day notice for the May silver delivery month (Tuesday April 30/2013). The estimated volume on Friday was huge, coming in at 141,482 contracts which equates close to 712 million oz of silver. The world produces 700 million oz per year ex China ex Russia so in essence today's volume equates to 101% of annual silver production. We had confirmed volume on Thursday at 114,735 contracts which is a huge volume day . (573 million or 81.8% of annual silver production)
Gold closed down $8.20 to $1453.60 (comex closing time). Silver fell by $.34 to $23.76 (comex closing time). As I promised you Thursday night, a raid on Friday was likely due to the poor performance of gold/silver equities on Thursday despite the higher bullion price. The raid occurred when the London gold/silver market was put safely to bed (around 12 noon). The bankers are smart now, they know it is foolish to raid in physical time zones.
In the access market at 5 pm gold and silver rose :
gold: $1462.90
silver: $24.04
At the comex, the open interest in silver fell by a healthy 2415 contracts to 154,988 contracts (short covering by the bankers) as it is still holding firm at elevated levels . The open interest on the gold contract rose by 8,727 contracts to 419,829. The total amount of gold ounces standing for April remained constant at 34.46 tonnes as well as silver at 3,765,000 oz.
Late Friday night, the GLD reported another loss of gold, this time 7.65 tonnes of gold. This gold is leaving English waters heading for China and other nations of Eastern persuasion.
The SLV gained 2.367 million oz on Friday.
Over at the Comex, JPMorgan did not take in any new gold. They did however change registered gold into eligible gold. Their eligible gold is still at extremely low levels at 154,000 oz.
The comex registered gold is still very low at 69.4 tonnes.
We also have commentaries on the physical gold metal from Eric King, Jim Sinclair, Bron Suchecki,Von Greyerz and Eric Sprott.
In paper stories the the huge rise in Spanish unemployment to over 27% has set off riots in the streets in Spain. Also riots are occurring in Portugal.
In Italy we are witnessing more problems for the Italian banks as their non performing loans increase as the asset valuations decrease.
In Germany, Merkel seems to be losing her majority.
Mark Grant delivers a commentary on a true Debt to GDP of France as this country spirals out of control.
In Japan, instead of seeing a glimpse of hope for inflation, we are seeing the opposite, a huge disappointment in the CPI of -0.9%
In the USA, two big disappointments:
i) an initial flash GDP of 2.5% growth instead of projected 3.0%
ii) a lower Michigan consumer confidence index.
We also have lots of chatter of an invasion in Syria this time from the White House.
We will go over these and other stories but first.........................
Let us now head over to the comex and assess trading over there today:
The total gold comex open interest rose by 8727 contracts on Friday from 411,102 all the way up to 419 829, with gold rising by $38.40 on Thursday. It looks like we had massive short covering. The front April OI fell by 98 contracts from 309 down to 211. We had 98 notices filed on Thursday so we neither gained nor lost any additional gold which will be standing for the April gold contract month. The next non active contract month is May and here the OI rose by 26 contracts to 1448. The next big contract month is June and here the OI rose by 5,459 contracts from 245,255 down to 250,714. The estimated volume on Friday was humongous at 243,098. The confirmed volume on Thursday was also huge at 211,926 contracts.
The total silver comex OI fell by a hefty 2415 contracts from 157,403 down to 154,988 despite silver's $1.31 rise on Thursday.Thus no doubt, we had some considerable short covering and the OI that remains seem stoic and ready to take on the bankers. They seem quite impervious to pain and can withstand the nonsense the banks throw at them like the attack yesterday. The front non active delivery month of April saw its OI fall by 3 contracts from 14 down to 11 . We had 3 delivery notices filed on Thursday, so in essence we neither lost nor gained any silver contracts standing for delivery in April. The next big delivery month for silver is May and here the OI fell by 7,549 contracts to stand at 23,198. We are less than 1 week away from first day notice for the May silver delivery month (Tuesday April 30/2013). The estimated volume on Friday was huge, coming in at 141,482 contracts which equates close to 712 million oz of silver. The world produces 700 million oz per year ex China ex Russia so in essence today's volume equates to 101% of annual silver production. We had confirmed volume on Thursday at 114,735 contracts which is a huge volume day . (573 million or 81.8% of annual silver production)
April 26.2013 April gold.
Ounces
Withdrawals from Dealers Inventory in oz
1,300.03 (Brinks)
Withdrawals from Customer Inventory in oz
nil
Deposits to the Dealer Inventory in oz
76,315.116 (HSBC)
Deposits to the Customer Inventory, in oz
77,433.858 (Brinks)
No of oz served (contracts) today
202 (20,200 oz)
No of oz to be served (notices)
9 (900) oz
Total monthly oz gold served (contracts) so far this month
11,070 (1,107,000 oz)
Total accumulative withdrawal of gold from the Dealers inventory this month
169,318.45 oz
Total accumulative withdrawal of gold from the Customer inventory this month
943,780.96 oz
We had huge activity at the gold vaults.
The dealer had 1 deposits and 1 major dealer withdrawal.
i) Into the HSBC dealer warehouse a rather huge 76,315.116 ounces of gold was deposited
We had the following dealer withdrawal:
Out of Brinks: 1,300.03 oz was withdrawn.
We had 2 customer deposits on Friday:
1. Into HSBC the exact same number of ounces that was deposited into the dealer account namely 76,315.116 oz was deposited into the HSBC customer account. Can someone explain this rationally?
2. Into Scotia: 1118.742 oz
total customer deposit: 77,433.858 oz
We had 0 customer withdrawals
We had 1 adjustments and the vault: JPM:
*At the JPMorgan vaults, 17,468.876 oz was adjusted out of the dealer account and into the customer account. * see article below
Thus the dealer inventory rests tonight at 2.232 million oz (69.4) tonnes of gold.
The total of all gold declines again at the comex and this time breaking below 8 million oz as it rests at 8.143 million oz or 253.2 tonnes.
The CME reported that we had 202 notices filed for 20,200 oz of gold on Friday. The total number of notices so far this month is thus 11,070 contracts x 100 oz per contract or 1,107,000 oz of gold. In order to establish what will be the total number of gold ounces standing, I take the OI for April (211) and subtract out Friday's delivery notices (202) which leaves us with 9 contracts or 900 oz left to be served upon our longs.
Thus we have the following gold ounces standing for metal:
1,107,000 (served) + 900 oz (left to be served upon ) = 1,107,900 oz or
34.46 tonnes of gold.
we neither gained nor lost any gold standing for the April gold contract. This is turning out to be a very big delivery month!
Silver:
April 26.2013: April silver:
Silver
Ounces
Withdrawals from Dealers Inventory 702,388.73 (CNT) Withdrawals from Customer Inventory 88,280.612 ( Delaware) Deposits to the Dealer Inventory nil Deposits to the Customer Inventory 312,978.210 (CNT,Brinks) No of oz served (contracts) 10 contracts 50,000 oz) No of oz to be served (notices) 1 (5,000 oz) Total monthly oz silver served (contracts) 752 (3,760,000 oz) Total accumulative withdrawal of silver from the Dealers inventory this month 3,818,843.5 oz Total accumulative withdrawal of silver from the Customer inventory this month 5,472,950.1 oz
Today, we had huge activity inside the silver vaults.
we had 0 dealer deposits and 1 dealer withdrawals.
Out of CNT: 702,388.73 oz leaves this registered vault.
We had 2 customer deposits:
i) Into CNT: 12,908.700 oz
ii) Into Brinks: 300,069.510 oz
Total deposits: 312,978.210 oz
We had 0 customer withdrawals:
total customer withdrawal: nil oz
we had 1 adjustments:
Out of the HSBC vault: 5,263.62 oz was adjusted out of the dealer and back into the customer account
Registered silver at : 37.411 million oz
total of all silver: 166.14 million oz.
The CME reported that we had 10 notices filed for 50,000 oz of silver for the non active contract month of April. In order to calculate the number of silver ounces that will stand, I take the OI for April silver (11) and subtract out Friday's notices (10) which leaves us with 1 notice or 5,000 oz left to be served upon our longs.
Thus the total number of silver ounces standing in this non active delivery month of April is as follows:
3,760,000 oz served + 5,000 oz to be served = 3,765,000 oz
we neither gained nor lost any silver ounces standing in the April contract month.
This is also turning out to be a very good delivery schedule for what is usually a quiet month as April is a non active month for silver.
* * *
GLD ETF loses 7.65 more tons of gold as gold continues to be withdrawn....
April 26.2013:
Tonnes1,083.05
Ounces34,821,165.00
Value US$51.217 billion
april 25.2013:
Tonnes1,090.27
Ounces35,053,272.79
Value US$50.841 billion
* * *
Friday we lost another 7.65 tonnes of gold. Thursday we lost 2.71 tonnes of gold which followed 4.21 tonnes on Wednesday which followed a 18.35 tonnes of gold lost on Tuesday. This vaults at the GLD will eventually become a crime scene as real physical gold will depart for eastern shores leaving behind paper obligations to the remaining shareholders.
Ladies and Gentlemen: the ultimate battle ground is the physical gold vaults at the LBMA and GLD. Everyday we are witnessing massive gold leaving these vehicles as well as the comex. This is similar to the events where Richard Nixon abrogated Bretton Woods by outlawing any more conversion of gold for USA dollars held by central authorities in Europe (especially France). We are witnessing the end game being played out before our eyes. When the last physical ounce leaves for China, the game ends.
As a reminder the total comex gold had inventories of around 11 million oz in 2011. Today it held just above 8 million oz. (8.143 million oz)
* * *
Data and Views on C.O.T....
At 3:30 pm Friday, the CME released the COT report on position levels of our major players.
Let us first head over to the gold COT and see what we can glean from it;
Gold COT Report - Futures
Large Speculators
Commercial
Total
Long
Short
Spreading
Long
Short
Long
Short
197,188
92,933
21,887
156,131
260,519
375,206
375,339
Change from Prior Reporting Period
-7,489
17,138
3,820
11,609
-25,932
7,940
-4,974
Traders
156
108
79
60
51
249
211
Small Speculators
Long
Short
Open Interest
39,868
39,735
415,074
-5,949
6,965
1,991
non reportable positions
Change from the previous reporting period
COT Gold Report - Positions as of
Tuesday, April 23, 2013
If you can believe the figures:
Our large speculators:
For those large specs that have been long in long, pitched a monstrous 7489 contracts from their long side.
Those large specs that have been short in gold, continued to add to their short position to the tune of a monstrous 17,138 contracts.
Our commercials:
Those commercials that are close to the physical scene and are long in gold, added a huge 11,609 contracts to their long side.
Those commercials that are short in gold covered a monstrous 25,932 contracts.
Our small specs;
Those small specs that have been long in gold pitched 5949 contracts from their long side.
Those small specs that have been short in gold added 6965 contracts to their short side.
Conclusions:
a very weird COT:
the large specs go net short by 24,627 contracts and the commercials go net long by a whopping 37,541 contracts.
You cannot get any more bullish than this!!
And now for your silver COT:
quite different to gold
Silver COT Report: Futures
Large Speculators
Commercial
Long
Short
Spreading
Long
Short
38,817
23,816
31,113
68,258
85,422
-884
1,713
-2,170
6,617
1,283
Traders
65
52
53
42
37
Small Speculators
Open Interest
Total
Long
Short
158,970
Long
Short
20,782
18,619
138,188
140,351
-1,895
842
1,668
3,563
826
non reportable positions
Positions as of:
133
125
Tuesday, April 23, 2013
© SilverSeek.com
Our large speculators:
Those large specs that are long in silver pitched a tiny 884 contracts from their long side.
Those large specs that are short in silver added another 1713 contracts to their short side.
Our commercials:
Those commercials that have been long in silver added a rather large 6617 contracts to their long side.
Those commercials that have been short from the beginning of time added another 1283 contracts to their short side.
Our small specs:
Those small specs that have been long in silver pitched 1895 contracts from their long side.
Those small specs that have been short in silver added another 842 contracts to their short side.
Conclusions:
The large specs went net short by 829 contracts. However the commercials went net long by 5334 contracts. Again this is very bullish.
Gold Legacy COT Stunner
Flash on the Legacy COT Report.
If there is one chart from the Commodity Futures Trading Commission (CFTC) data that sticks out more than any of the 30 or so that we track, it is the one below which comes from the Legacy COT report. Below is a note we shared with our subscribers a half hour ago and the chart that goes with it.
Apl 26 Friday, late afternoon. COT We have not had time to study the COT data closely, but first glance is a stunner. Recall that the COT cuts off on Tuesday.
In the Legacy COT report as gold GAINED $45.72 or 3.3% to $1412.78 Tues/Tues combined commercial traders VERY STRONGLY REDUCED their collective net short positions by a huge 37,541 lots or 26.5%, sending the relative commercial net short position or LCNS.TO hurtling lower to just 25.2% of all COMEX contracts open (lowest since Nov of 2008 during the Panic). (Gold +3.3%, LCNS -26.5%!!) (Very bullish by itself, without considering the other data.) More in the charts this weekend. Have a good weekend.
* * *
Selected news and views.....
Mints, Refineries, Brokerages Out Of Stock - COMEX Gold Inventories Plummet
-- Posted Friday, 26 April 2013 | | 0 Comments and 0 Reactions
Today’s AM fix was USD 1,462.25, EUR 1,123.43 and GBP 947.79 per ounce.
Yesterday’s AM fix was USD 1,446.50, EUR 1,107.07 and GBP 937.64 per ounce
.
Comex Gold Inventory Plummet
Gold climbed $33.90 or 2.37% yesterday to $1,464.30/oz and silver surged +4.83%.
Gold has surged 4.9% in dollar terms so far this week and is headed for its biggest weekly gain in one-and-a-half years. Gold has recovered in all currencies and is up by 4.8% in euro terms and 3.7% in sterling terms.
Therefore, gold has recovered nearly half of its recent sharp decline and is now just 7% below its price ($1,560/oz) prior to the futures induced sell off on April 12th and 15th.
The manipulated sell off on the COMEX has led to bargain hunting and a surge in physical coin and bar buying internationally. Gold bullion inventories on the COMEX are being depleted rapidly (see chart and data below) and certain bullion products are either out of stock or production and distribution has been suspended.
The gold sell off has stoked a frenzy among coin, bar and jewelry buyers from China to India and the U.S. and Europe.
Government mints and refineries around the world have confirmed that demand for bullion coins and bars is surging and they are struggling to keep up with the demand as are brokerages who are running out of stock, particularly of smaller coins and bars.
The Perth Mint has experienced “unprecedented activity” and one of its busiest weeks ever. Some customers are experiencing “long delays” in securing certain bullion coins and bars.
The Perth Mint have suspended production of many silver bullion products (2013 Australian Lunar snake silver bullion coins - 1 kilo, 10oz, 5oz, 2oz, 1/2oz and 2013 Australian Kookaburra silver bullion coins - 10oz. 1oz and 1/2oz) but is continuing to offer 2013 Australian Kookaburra silver bullion coins (1oz and 1 kilo).
Many bullion dealers internationally have been cleared out of stock and buyers have to be less selective in which coins and bars they buy. This is leading to rising premiums on coins and bars and to delays in buyers receiving their bullion.
The U.S. Mint’s sales of gold coins are heading for the highest in almost three years following the biggest plunge in futures prices since 1980.
Gold Prices and US Mint Gold Coin Sales (1 Year)
The Bloomberg Chart of the Day shows the surge in American Eagle gold coins this month and the slump last week in futures.
Sales of gold coins from the U.S. Mint in April are set for the biggest month since December 2009 and the U.K. Mint has confirmed that gold coin purchases have tripled in April.
The risk of currency devaluations in Japan and internationally and then the confiscation of deposits in Cyprus was already leading to increased physical demand, particularly in Japan and Europe.
Bullion buyers who were getting ready to allocate capital to the gold market saw the sell off as an opportunity to buy gold at much cheaper prices and were quick to take the opportunity. The tragic events in Boston and increased geopolitical risk may have also encouraged U.S. buyers who have been buying record amounts of gold coins at these lower prices.
Gold in USD, 5 day – (Bloomberg)
Demand in the Middle East and Asia, particularly China and India has also surged. This very important facet of gold demand continues to be ignored by gold bears.
The World Gold Council noted how there is a shortage of gold bars in Dubai, a primary trading hub for precious metals in the Middle East.
Gold physical demand has surged in India and China after the price drop. The two gold buying behemoths account for more than half of annual global bullion demand.
Gold imports by China from Hong Kong have surged this month as mainland buyers increased purchases after domestic prices sank to the cheapest in more than 2 1/2 years.
Volumes for the benchmark spot contract on the Shanghai Gold Exchange, China’s biggest cash bullion market, exceeded 20 metric tons every day since April 16. That’s more than four times the daily average in 2012, according to exchange data compiled by Bloomberg. Volumes reached a record 43,272 kilograms (43 metric tons) on April 22 alone.
This puts the rumour of Cyprus’ 15 tonne gold sale in perspective.
Retail sales tripled across China on April 15-16, according to the China Gold Association. Shipments to China reached a record 114,405 kilograms in December, according to data from Hong Kong’s Census and Statistics Department, which may release April data in June.
“Given that the trading volume has been so huge on the Shanghai Gold Exchange, the import volume in April should definitely reach a very high level,” said Qu Mingyu, a trader at Bank of China Ltd., one of the country’s three largest bullion banks.
Gold in USD, 1 Year – (Bloomberg)
Gold stockpiles held at warehouses monitored by COMEX, fell sharply this week according to CME data:
===========================================================
April 24 April 23 April 22 April 19 April 18
2013 2013 2013 2013 2013
===========================================================
Grand total 7,990,799 8,345,509 8,583,373 8,781,910 8,917,901
30-day average 9,181,556 9,240,083 9,288,168 9,330,848 9,370,087
Daily change -354,710 -237,864 -198,536 -135,991 -32,497
5-day avg. % -6.1% -4.6% -3.6% -2.7% -2.3%
-----------------------------------------------------------------------------
Total registered 2,174,090 2,210,736 2,281,503 2,280,400 2,371,583
30-day average 2,634,576 2,649,134 2,664,740 2,674,676 2,684,738
Daily change -36,646 -70,767 1,103 -91,183 -389
5-day avg. % -17.1% -18.8% -15.5% -12.8% -10.2%
-----------------------------------------------------------------------------
========================================================
April 24 April 23 April 22 April 19 April 18
2013 2013 2013 2013 2013
=======================================================
Total eligible 5,816,709 6,134,773 6,301,870 6,501,509 6,546,317
30-day average 6,546,980 6,590,949 6,623,428 6,656,172 6,685,349
Daily change -318,064 -167,097 -199,639 -44,808 -32,108
5-day avg. % -1.5% 1.8% 1.8% 1.9% 1.3%
--------------------Brink’s, Inc.--------------------
Total 624,888 623,602 622,749 622,749 622,749
Registered 494,576 494,576 494,576 494,576 494,576
Eligible 130,311 129,025 128,173 128,173 128,173
-------------------Scotia Mocatta--------------------
Total 2,930,817 3,020,611 3,491,842 3,241,037 3,255,905
Registered 501,155 537,801 378,053 607,465 622,333
Eligible 2,429,662 2,482,810 3,113,788 2,633,572 2,633,572
-------------------HSBC Bank, USA--------------------
Total 3,486,233 3,491,642 1,286,265 3,524,073 3,632,317
Registered 378,053 378,053 780,334 378,053 378,053
Eligible 3,108,179 3,113,589 505,931 3,146,020 3,254,264
==================================================
April 24 April 23 April 22 April 19 April 18
2013 2013 2013 2013 2013
==================================================
----------Manfra, Tordella & Brookes, Inc.-----------
Total 26,946 26,946 26,946 26,946 26,946
Registered 19,971 19,971 19,971 19,971 19,971
Eligible 6,975 6,975 6,975 6,975 6,975
--------------JP Morgan Chase Bank NA----------------
Total 921,916 1,182,708 3,155,571 1,367,103 1,379,983
Registered 780,334 780,334 608,568 780,334 856,650
Eligible 141,581 402,374 2,547,003 586,769 523,333
==================================================
NOTE: Levels are in troy ounces. SOURCE: CME Group Inc.
COMEX gold inventories are registered gold bullion bars that meet the standards for delivery under gold futures contracts and for which a receipt from an Exchange-approved depository or warehouse has been issued.
JP Morgan’s eligible gold inventories fell by more than 70% this week which suggests there may be supply issues in the larger London good delivery gold bar market also. This is important to keep an eye on next week.
The death of the gold market is greatly exaggerated and gold’s long term secular bull market is set to continue due to very large and increasing physical demand for bullion internationally.
Ignore the gold doomsters who do not understand gold and have been wrong about it throughout the gold bull market of the last 12 years.
This is a buying opportunity. Secure your allocated bullion and take delivery of gold and silver bullion coins and bars while they are available and premiums, while higher, remain relatively low.
The violent sell off in the gold futures market has shook weak hands out of the market but gold’s long term fundamentals remain sound and it remains a vital diversification for all wishing to protect themselves from currency devaluations and the significant systemic risk of today.
GoldCore April InsightThe recent fall in the price of gold has proved to be a gift to other investors as small denomination bars, at the time of writing, are now difficult to source in India, Singapore, Japan, China and Europe.
In this month’s edition of Insight Chris Sanders argues that the real issue is that we are not accumulating enough capital to replace depreciating assets, particularly with regard to the production of energy. Accompanying this alarming reality is the apparent reckless abandon with which the banking fraternity in the US is ‘bending’ COMEX’s rules and over in Cyprus, treating depositors’ savings as their own personal safety net.
In this edition of GoldCore Insight you will find out about:
• The Cyprus rubicon - depositors' savings are fair game
• How energy will shape our future
• The importance of owning physical bullion
American Eagle gold coins soar in value and forces Mint to suspend sales – Irish Independent
Comex Physical Drain Accelerates—With Over $7.8B In Gold Disappearing From All Depositories - GoldSeek
Child Hunger Is Exploding In Greece – And 14 Signs That It Is Starting To Happen In America Too – Economic Collapse
The Fiat Emperor Has No Clothes – 24hGOLD
For breaking news and commentary on financial markets and gold, follow us on Twitter.
Von Greyerz tells Eric King that the paper gold smash has backfired as this unleashed huge demand for the real physical metal:
(courtesy Von Greyerz/Kingworldnews)
Paper gold smash backfired, von Greyerz tells King World News
Submitted by cpowell on Fri, 2013-04-26 20:00. Section: Daily Dispatches
4p ET Friday, April 26, 2013
Dear Friend of GATA and Gold:
Swiss gold fund manager Egon von Greyerz today tells King World News that the paper gold smash has backfired, unleashing demand for real metal that can't be met by ordinary production and causing shortages. An excerpt from the interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
end
Eric Sprott gives two scenarios for the paper gold smash:
i) central bank intervention
ii) a derivative blowup
It seems everyone is leaning on the first, a rather huge central bank intervention
a very important interview with Eric Sprott
(courtesy Eric Sprott/Kingworld news)
'Historic panic bottom' in gold, Sprott tells King World News
Submitted by cpowell on Fri, 2013-04-26 17:28. Section: Daily Dispatches
1:20p ET Friday, April 26, 2013
Dear Friend of GATA and Gold:
Sprott Asset Management CEO and monetary metals advocate Eric Sprott today tells King World News that the recent smash in the gold price was either central bank intervention or some sort of breakdown in the derivatives market. Sprott adds that he thinks the smash marks "a historic panic bottom" in the metals. An excerpt from the interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
end
Part II of the same interview:
Paper trading means nothing as physical market explodes, Sprott says
Submitted by cpowell on Sat, 2013-04-27 00:59. Section: Daily Dispatches
9p ET Friday, April 26, 2013
Dear Friend of GATA and Gold:
Paper trading in gold means nothing as the physical market explodes, Sprott Asset Management CEO and monetary metals advocate Eric Sprott tells King World News in the second installment of his interview today. Sprott joins Jim Sinclair and Egon von Greyerz in saying that the central bank smashing of the paper gold price has backfired by triggering enormous demand for real metal. An excerpt from the interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
A superb discussion with Bron Suchecki, director and head honcho for the Perth Mint talks about a key measure of stress for the comex gold market and he calls it the current coverage ratio.
(courtesy Bron Suchecki/GATA)
Bron Suchecki: The most important Comex drawdown metric
Submitted by cpowell on Sat, 2013-04-27 01:25. Section: Daily Dispatches
9:24p ET Friday, April 26, 2013
Dear Friend of GATA and Gold:
Bron Suchecki of the Perth Mint writes tonight that the key measure of stress in the paper gold market is the coverage ratio, the percentage of open interest that is backed by real metal on deposit; that the current coverage ratio on the New York Commodities Exchange, 19 percent, is within the normal range; and that "while most of the shorts don't have the metal, most of the longs don't have the cash."
Suchecki adds: "We know this because of all the talk about margin calls causing people to have to sell. Think about that: If they couldn't meet the margin calls, then it means they didn't have the money to stand for delivery."
Suchecki's commentary is headlined "Comex Stock Drawdown: Single Most Important Metric to Watch" and it's posted at 24hGold here:
CHRIS POWELL, Secretary/Treasurer
Ounces
| |
Withdrawals from Dealers Inventory in oz
|
1,300.03 (Brinks)
|
Withdrawals from Customer Inventory in oz
|
nil
|
Deposits to the Dealer Inventory in oz
|
76,315.116 (HSBC)
|
Deposits to the Customer Inventory, in oz
| 77,433.858 (Brinks) |
No of oz served (contracts) today
|
202 (20,200 oz)
|
No of oz to be served (notices)
|
9 (900) oz
|
Total monthly oz gold served (contracts) so far this month
|
11,070 (1,107,000 oz)
|
Total accumulative withdrawal of gold from the Dealers inventory this month
|
169,318.45 oz
|
Total accumulative withdrawal of gold from the Customer inventory this month
| 943,780.96 oz |
We had huge activity at the gold vaults.
The dealer had 1 deposits and 1 major dealer withdrawal.
i) Into the HSBC dealer warehouse a rather huge 76,315.116 ounces of gold was deposited
i) Into the HSBC dealer warehouse a rather huge 76,315.116 ounces of gold was deposited
We had the following dealer withdrawal:
Out of Brinks: 1,300.03 oz was withdrawn.
We had 2 customer deposits on Friday:
1. Into HSBC the exact same number of ounces that was deposited into the dealer account namely 76,315.116 oz was deposited into the HSBC customer account. Can someone explain this rationally?
2. Into Scotia: 1118.742 oz
total customer deposit: 77,433.858 oz
We had 0 customer withdrawals
Out of Brinks: 1,300.03 oz was withdrawn.
We had 2 customer deposits on Friday:
1. Into HSBC the exact same number of ounces that was deposited into the dealer account namely 76,315.116 oz was deposited into the HSBC customer account. Can someone explain this rationally?
2. Into Scotia: 1118.742 oz
total customer deposit: 77,433.858 oz
We had 0 customer withdrawals
We had 1 adjustments and the vault: JPM:
*At the JPMorgan vaults, 17,468.876 oz was adjusted out of the dealer account and into the customer account. * see article below
*At the JPMorgan vaults, 17,468.876 oz was adjusted out of the dealer account and into the customer account. * see article below
Thus the dealer inventory rests tonight at 2.232 million oz (69.4) tonnes of gold.
The total of all gold declines again at the comex and this time breaking below 8 million oz as it rests at 8.143 million oz or 253.2 tonnes.
The total of all gold declines again at the comex and this time breaking below 8 million oz as it rests at 8.143 million oz or 253.2 tonnes.
The CME reported that we had 202 notices filed for 20,200 oz of gold on Friday. The total number of notices so far this month is thus 11,070 contracts x 100 oz per contract or 1,107,000 oz of gold. In order to establish what will be the total number of gold ounces standing, I take the OI for April (211) and subtract out Friday's delivery notices (202) which leaves us with 9 contracts or 900 oz left to be served upon our longs.
Thus we have the following gold ounces standing for metal:
1,107,000 (served) + 900 oz (left to be served upon ) = 1,107,900 oz or
34.46 tonnes of gold.
we neither gained nor lost any gold standing for the April gold contract. This is turning out to be a very big delivery month!
Silver:
April 26.2013: April silver:
Silver
Ounces
Withdrawals from Dealers Inventory 702,388.73 (CNT) Withdrawals from Customer Inventory 88,280.612 ( Delaware) Deposits to the Dealer Inventory nil Deposits to the Customer Inventory 312,978.210 (CNT,Brinks) No of oz served (contracts) 10 contracts 50,000 oz) No of oz to be served (notices) 1 (5,000 oz) Total monthly oz silver served (contracts) 752 (3,760,000 oz) Total accumulative withdrawal of silver from the Dealers inventory this month 3,818,843.5 oz Total accumulative withdrawal of silver from the Customer inventory this month 5,472,950.1 oz
Today, we had huge activity inside the silver vaults.
we had 0 dealer deposits and 1 dealer withdrawals.
Out of CNT: 702,388.73 oz leaves this registered vault.
We had 2 customer deposits:
i) Into CNT: 12,908.700 oz
ii) Into Brinks: 300,069.510 oz
Total deposits: 312,978.210 oz
We had 0 customer withdrawals:
total customer withdrawal: nil oz
we had 1 adjustments:
Out of the HSBC vault: 5,263.62 oz was adjusted out of the dealer and back into the customer account
Registered silver at : 37.411 million oz
total of all silver: 166.14 million oz.
The CME reported that we had 10 notices filed for 50,000 oz of silver for the non active contract month of April. In order to calculate the number of silver ounces that will stand, I take the OI for April silver (11) and subtract out Friday's notices (10) which leaves us with 1 notice or 5,000 oz left to be served upon our longs.
Thus the total number of silver ounces standing in this non active delivery month of April is as follows:
3,760,000 oz served + 5,000 oz to be served = 3,765,000 oz
Silver:
April 26.2013: April silver:
| Silver |
Ounces
|
| Withdrawals from Dealers Inventory | 702,388.73 (CNT) |
| Withdrawals from Customer Inventory | 88,280.612 ( Delaware) |
| Deposits to the Dealer Inventory | nil |
| Deposits to the Customer Inventory | 312,978.210 (CNT,Brinks) |
| No of oz served (contracts) | 10 contracts 50,000 oz) |
| No of oz to be served (notices) | 1 (5,000 oz) |
| Total monthly oz silver served (contracts) | 752 (3,760,000 oz) |
| Total accumulative withdrawal of silver from the Dealers inventory this month | 3,818,843.5 oz |
| Total accumulative withdrawal of silver from the Customer inventory this month | 5,472,950.1 oz |
Today, we had huge activity inside the silver vaults.
we had 0 dealer deposits and 1 dealer withdrawals.
Out of CNT: 702,388.73 oz leaves this registered vault.
We had 2 customer deposits:
i) Into CNT: 12,908.700 oz
ii) Into Brinks: 300,069.510 oz
Total deposits: 312,978.210 oz
We had 0 customer withdrawals:
total customer withdrawal: nil oz
Out of CNT: 702,388.73 oz leaves this registered vault.
We had 2 customer deposits:
i) Into CNT: 12,908.700 oz
ii) Into Brinks: 300,069.510 oz
Total deposits: 312,978.210 oz
We had 0 customer withdrawals:
total customer withdrawal: nil oz
we had 1 adjustments:
Out of the HSBC vault: 5,263.62 oz was adjusted out of the dealer and back into the customer account
Out of the HSBC vault: 5,263.62 oz was adjusted out of the dealer and back into the customer account
Registered silver at : 37.411 million oz
total of all silver: 166.14 million oz.
The CME reported that we had 10 notices filed for 50,000 oz of silver for the non active contract month of April. In order to calculate the number of silver ounces that will stand, I take the OI for April silver (11) and subtract out Friday's notices (10) which leaves us with 1 notice or 5,000 oz left to be served upon our longs.
Thus the total number of silver ounces standing in this non active delivery month of April is as follows:
3,760,000 oz served + 5,000 oz to be served = 3,765,000 oz
Thus the total number of silver ounces standing in this non active delivery month of April is as follows:
3,760,000 oz served + 5,000 oz to be served = 3,765,000 oz
we neither gained nor lost any silver ounces standing in the April contract month.
This is also turning out to be a very good delivery schedule for what is usually a quiet month as April is a non active month for silver.
This is also turning out to be a very good delivery schedule for what is usually a quiet month as April is a non active month for silver.
* * *
GLD ETF loses 7.65 more tons of gold as gold continues to be withdrawn....
April 26.2013:
april 25.2013:
Tonnes1,083.05
Ounces34,821,165.00
Value US$51.217 billion
april 25.2013:
Tonnes1,090.27
Ounces35,053,272.79
Value US$50.841 billion
* * *
Friday we lost another 7.65 tonnes of gold. Thursday we lost 2.71 tonnes of gold which followed 4.21 tonnes on Wednesday which followed a 18.35 tonnes of gold lost on Tuesday. This vaults at the GLD will eventually become a crime scene as real physical gold will depart for eastern shores leaving behind paper obligations to the remaining shareholders.
Ladies and Gentlemen: the ultimate battle ground is the physical gold vaults at the LBMA and GLD. Everyday we are witnessing massive gold leaving these vehicles as well as the comex. This is similar to the events where Richard Nixon abrogated Bretton Woods by outlawing any more conversion of gold for USA dollars held by central authorities in Europe (especially France). We are witnessing the end game being played out before our eyes. When the last physical ounce leaves for China, the game ends.
Ladies and Gentlemen: the ultimate battle ground is the physical gold vaults at the LBMA and GLD. Everyday we are witnessing massive gold leaving these vehicles as well as the comex. This is similar to the events where Richard Nixon abrogated Bretton Woods by outlawing any more conversion of gold for USA dollars held by central authorities in Europe (especially France). We are witnessing the end game being played out before our eyes. When the last physical ounce leaves for China, the game ends.
As a reminder the total comex gold had inventories of around 11 million oz in 2011. Today it held just above 8 million oz. (8.143 million oz)
* * *
Data and Views on C.O.T....
At 3:30 pm Friday, the CME released the COT report on position levels of our major players.
Let us first head over to the gold COT and see what we can glean from it;
Gold COT Report - Futures
Large Speculators
Commercial
Total
Long
Short
Spreading
Long
Short
Long
Short
197,188
92,933
21,887
156,131
260,519
375,206
375,339
Change from Prior Reporting Period
-7,489
17,138
3,820
11,609
-25,932
7,940
-4,974
Traders
156
108
79
60
51
249
211
Small Speculators
Long
Short
Open Interest
39,868
39,735
415,074
-5,949
6,965
1,991
non reportable positions
Change from the previous reporting period
COT Gold Report - Positions as of
Tuesday, April 23, 2013
If you can believe the figures:
Our large speculators:
For those large specs that have been long in long, pitched a monstrous 7489 contracts from their long side.
Those large specs that have been short in gold, continued to add to their short position to the tune of a monstrous 17,138 contracts.
Our commercials:
Those commercials that are close to the physical scene and are long in gold, added a huge 11,609 contracts to their long side.
Those commercials that are short in gold covered a monstrous 25,932 contracts.
Our small specs;
Those small specs that have been long in gold pitched 5949 contracts from their long side.
Those small specs that have been short in gold added 6965 contracts to their short side.
Conclusions:
a very weird COT:
the large specs go net short by 24,627 contracts and the commercials go net long by a whopping 37,541 contracts.
You cannot get any more bullish than this!!
And now for your silver COT:
quite different to gold
Silver COT Report: Futures
Large Speculators
Commercial
Long
Short
Spreading
Long
Short
38,817
23,816
31,113
68,258
85,422
-884
1,713
-2,170
6,617
1,283
Traders
65
52
53
42
37
Small Speculators
Open Interest
Total
Long
Short
158,970
Long
Short
20,782
18,619
138,188
140,351
-1,895
842
1,668
3,563
826
non reportable positions
Positions as of:
133
125
Tuesday, April 23, 2013
© SilverSeek.com
Our large speculators:
Those large specs that are long in silver pitched a tiny 884 contracts from their long side.
Those large specs that are short in silver added another 1713 contracts to their short side.
Our commercials:
Those commercials that have been long in silver added a rather large 6617 contracts to their long side.
Those commercials that have been short from the beginning of time added another 1283 contracts to their short side.
Our small specs:
Those small specs that have been long in silver pitched 1895 contracts from their long side.
Those small specs that have been short in silver added another 842 contracts to their short side.
Conclusions:
The large specs went net short by 829 contracts. However the commercials went net long by 5334 contracts. Again this is very bullish.
Gold Legacy COT Stunner
Flash on the Legacy COT Report.
If there is one chart from the Commodity Futures Trading Commission (CFTC) data that sticks out more than any of the 30 or so that we track, it is the one below which comes from the Legacy COT report. Below is a note we shared with our subscribers a half hour ago and the chart that goes with it.
Apl 26 Friday, late afternoon. COT We have not had time to study the COT data closely, but first glance is a stunner. Recall that the COT cuts off on Tuesday.
In the Legacy COT report as gold GAINED $45.72 or 3.3% to $1412.78 Tues/Tues combined commercial traders VERY STRONGLY REDUCED their collective net short positions by a huge 37,541 lots or 26.5%, sending the relative commercial net short position or LCNS.TO hurtling lower to just 25.2% of all COMEX contracts open (lowest since Nov of 2008 during the Panic). (Gold +3.3%, LCNS -26.5%!!) (Very bullish by itself, without considering the other data.) More in the charts this weekend. Have a good weekend.
* * *
Selected news and views.....
Mints, Refineries, Brokerages Out Of Stock - COMEX Gold Inventories Plummet
-- Posted Friday, 26 April 2013 | | 0 Comments and 0 Reactions
Today’s AM fix was USD 1,462.25, EUR 1,123.43 and GBP 947.79 per ounce.
Yesterday’s AM fix was USD 1,446.50, EUR 1,107.07 and GBP 937.64 per ounce
.
Comex Gold Inventory Plummet
Gold climbed $33.90 or 2.37% yesterday to $1,464.30/oz and silver surged +4.83%.
Gold has surged 4.9% in dollar terms so far this week and is headed for its biggest weekly gain in one-and-a-half years. Gold has recovered in all currencies and is up by 4.8% in euro terms and 3.7% in sterling terms.
Therefore, gold has recovered nearly half of its recent sharp decline and is now just 7% below its price ($1,560/oz) prior to the futures induced sell off on April 12th and 15th.
The manipulated sell off on the COMEX has led to bargain hunting and a surge in physical coin and bar buying internationally. Gold bullion inventories on the COMEX are being depleted rapidly (see chart and data below) and certain bullion products are either out of stock or production and distribution has been suspended.
The gold sell off has stoked a frenzy among coin, bar and jewelry buyers from China to India and the U.S. and Europe.
Government mints and refineries around the world have confirmed that demand for bullion coins and bars is surging and they are struggling to keep up with the demand as are brokerages who are running out of stock, particularly of smaller coins and bars.
The Perth Mint has experienced “unprecedented activity” and one of its busiest weeks ever. Some customers are experiencing “long delays” in securing certain bullion coins and bars.
The Perth Mint have suspended production of many silver bullion products (2013 Australian Lunar snake silver bullion coins - 1 kilo, 10oz, 5oz, 2oz, 1/2oz and 2013 Australian Kookaburra silver bullion coins - 10oz. 1oz and 1/2oz) but is continuing to offer 2013 Australian Kookaburra silver bullion coins (1oz and 1 kilo).
Many bullion dealers internationally have been cleared out of stock and buyers have to be less selective in which coins and bars they buy. This is leading to rising premiums on coins and bars and to delays in buyers receiving their bullion.
The U.S. Mint’s sales of gold coins are heading for the highest in almost three years following the biggest plunge in futures prices since 1980.
Gold Prices and US Mint Gold Coin Sales (1 Year)
The Bloomberg Chart of the Day shows the surge in American Eagle gold coins this month and the slump last week in futures.
Sales of gold coins from the U.S. Mint in April are set for the biggest month since December 2009 and the U.K. Mint has confirmed that gold coin purchases have tripled in April.
The risk of currency devaluations in Japan and internationally and then the confiscation of deposits in Cyprus was already leading to increased physical demand, particularly in Japan and Europe.
Bullion buyers who were getting ready to allocate capital to the gold market saw the sell off as an opportunity to buy gold at much cheaper prices and were quick to take the opportunity. The tragic events in Boston and increased geopolitical risk may have also encouraged U.S. buyers who have been buying record amounts of gold coins at these lower prices.
Gold in USD, 5 day – (Bloomberg)
Demand in the Middle East and Asia, particularly China and India has also surged. This very important facet of gold demand continues to be ignored by gold bears.
The World Gold Council noted how there is a shortage of gold bars in Dubai, a primary trading hub for precious metals in the Middle East.
Gold physical demand has surged in India and China after the price drop. The two gold buying behemoths account for more than half of annual global bullion demand.
Gold imports by China from Hong Kong have surged this month as mainland buyers increased purchases after domestic prices sank to the cheapest in more than 2 1/2 years.
Volumes for the benchmark spot contract on the Shanghai Gold Exchange, China’s biggest cash bullion market, exceeded 20 metric tons every day since April 16. That’s more than four times the daily average in 2012, according to exchange data compiled by Bloomberg. Volumes reached a record 43,272 kilograms (43 metric tons) on April 22 alone.
This puts the rumour of Cyprus’ 15 tonne gold sale in perspective.
Retail sales tripled across China on April 15-16, according to the China Gold Association. Shipments to China reached a record 114,405 kilograms in December, according to data from Hong Kong’s Census and Statistics Department, which may release April data in June.
“Given that the trading volume has been so huge on the Shanghai Gold Exchange, the import volume in April should definitely reach a very high level,” said Qu Mingyu, a trader at Bank of China Ltd., one of the country’s three largest bullion banks.
Gold in USD, 1 Year – (Bloomberg)
Gold stockpiles held at warehouses monitored by COMEX, fell sharply this week according to CME data:
===========================================================
April 24 April 23 April 22 April 19 April 18
2013 2013 2013 2013 2013
===========================================================
Grand total 7,990,799 8,345,509 8,583,373 8,781,910 8,917,901
30-day average 9,181,556 9,240,083 9,288,168 9,330,848 9,370,087
Daily change -354,710 -237,864 -198,536 -135,991 -32,497
5-day avg. % -6.1% -4.6% -3.6% -2.7% -2.3%
-----------------------------------------------------------------------------
Total registered 2,174,090 2,210,736 2,281,503 2,280,400 2,371,583
30-day average 2,634,576 2,649,134 2,664,740 2,674,676 2,684,738
Daily change -36,646 -70,767 1,103 -91,183 -389
5-day avg. % -17.1% -18.8% -15.5% -12.8% -10.2%
-----------------------------------------------------------------------------
========================================================
April 24 April 23 April 22 April 19 April 18
2013 2013 2013 2013 2013
=======================================================
Total eligible 5,816,709 6,134,773 6,301,870 6,501,509 6,546,317
30-day average 6,546,980 6,590,949 6,623,428 6,656,172 6,685,349
Daily change -318,064 -167,097 -199,639 -44,808 -32,108
5-day avg. % -1.5% 1.8% 1.8% 1.9% 1.3%
--------------------Brink’s, Inc.--------------------
Total 624,888 623,602 622,749 622,749 622,749
Registered 494,576 494,576 494,576 494,576 494,576
Eligible 130,311 129,025 128,173 128,173 128,173
-------------------Scotia Mocatta--------------------
Total 2,930,817 3,020,611 3,491,842 3,241,037 3,255,905
Registered 501,155 537,801 378,053 607,465 622,333
Eligible 2,429,662 2,482,810 3,113,788 2,633,572 2,633,572
-------------------HSBC Bank, USA--------------------
Total 3,486,233 3,491,642 1,286,265 3,524,073 3,632,317
Registered 378,053 378,053 780,334 378,053 378,053
Eligible 3,108,179 3,113,589 505,931 3,146,020 3,254,264
==================================================
April 24 April 23 April 22 April 19 April 18
2013 2013 2013 2013 2013
==================================================
----------Manfra, Tordella & Brookes, Inc.-----------
Total 26,946 26,946 26,946 26,946 26,946
Registered 19,971 19,971 19,971 19,971 19,971
Eligible 6,975 6,975 6,975 6,975 6,975
--------------JP Morgan Chase Bank NA----------------
Total 921,916 1,182,708 3,155,571 1,367,103 1,379,983
Registered 780,334 780,334 608,568 780,334 856,650
Eligible 141,581 402,374 2,547,003 586,769 523,333
==================================================
NOTE: Levels are in troy ounces. SOURCE: CME Group Inc.
COMEX gold inventories are registered gold bullion bars that meet the standards for delivery under gold futures contracts and for which a receipt from an Exchange-approved depository or warehouse has been issued.
JP Morgan’s eligible gold inventories fell by more than 70% this week which suggests there may be supply issues in the larger London good delivery gold bar market also. This is important to keep an eye on next week.
The death of the gold market is greatly exaggerated and gold’s long term secular bull market is set to continue due to very large and increasing physical demand for bullion internationally.
Ignore the gold doomsters who do not understand gold and have been wrong about it throughout the gold bull market of the last 12 years.
This is a buying opportunity. Secure your allocated bullion and take delivery of gold and silver bullion coins and bars while they are available and premiums, while higher, remain relatively low.
The violent sell off in the gold futures market has shook weak hands out of the market but gold’s long term fundamentals remain sound and it remains a vital diversification for all wishing to protect themselves from currency devaluations and the significant systemic risk of today.
GoldCore April InsightThe recent fall in the price of gold has proved to be a gift to other investors as small denomination bars, at the time of writing, are now difficult to source in India, Singapore, Japan, China and Europe.
In this month’s edition of Insight Chris Sanders argues that the real issue is that we are not accumulating enough capital to replace depreciating assets, particularly with regard to the production of energy. Accompanying this alarming reality is the apparent reckless abandon with which the banking fraternity in the US is ‘bending’ COMEX’s rules and over in Cyprus, treating depositors’ savings as their own personal safety net.
In this edition of GoldCore Insight you will find out about:
• The Cyprus rubicon - depositors' savings are fair game
• How energy will shape our future
• The importance of owning physical bullion
American Eagle gold coins soar in value and forces Mint to suspend sales – Irish Independent
Comex Physical Drain Accelerates—With Over $7.8B In Gold Disappearing From All Depositories - GoldSeek
Child Hunger Is Exploding In Greece – And 14 Signs That It Is Starting To Happen In America Too – Economic Collapse
The Fiat Emperor Has No Clothes – 24hGOLD
For breaking news and commentary on financial markets and gold, follow us on Twitter.
Von Greyerz tells Eric King that the paper gold smash has backfired as this unleashed huge demand for the real physical metal:
(courtesy Von Greyerz/Kingworldnews)
Paper gold smash backfired, von Greyerz tells King World News
Submitted by cpowell on Fri, 2013-04-26 20:00. Section: Daily Dispatches
4p ET Friday, April 26, 2013
Dear Friend of GATA and Gold:
Swiss gold fund manager Egon von Greyerz today tells King World News that the paper gold smash has backfired, unleashing demand for real metal that can't be met by ordinary production and causing shortages. An excerpt from the interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
end
Eric Sprott gives two scenarios for the paper gold smash:
i) central bank intervention
ii) a derivative blowup
It seems everyone is leaning on the first, a rather huge central bank intervention
a very important interview with Eric Sprott
(courtesy Eric Sprott/Kingworld news)
'Historic panic bottom' in gold, Sprott tells King World News
Submitted by cpowell on Fri, 2013-04-26 17:28. Section: Daily Dispatches
1:20p ET Friday, April 26, 2013
Dear Friend of GATA and Gold:
Sprott Asset Management CEO and monetary metals advocate Eric Sprott today tells King World News that the recent smash in the gold price was either central bank intervention or some sort of breakdown in the derivatives market. Sprott adds that he thinks the smash marks "a historic panic bottom" in the metals. An excerpt from the interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
end
Part II of the same interview:
Paper trading means nothing as physical market explodes, Sprott says
Submitted by cpowell on Sat, 2013-04-27 00:59. Section: Daily Dispatches
9p ET Friday, April 26, 2013
Dear Friend of GATA and Gold:
Paper trading in gold means nothing as the physical market explodes, Sprott Asset Management CEO and monetary metals advocate Eric Sprott tells King World News in the second installment of his interview today. Sprott joins Jim Sinclair and Egon von Greyerz in saying that the central bank smashing of the paper gold price has backfired by triggering enormous demand for real metal. An excerpt from the interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
A superb discussion with Bron Suchecki, director and head honcho for the Perth Mint talks about a key measure of stress for the comex gold market and he calls it the current coverage ratio.
(courtesy Bron Suchecki/GATA)
Bron Suchecki: The most important Comex drawdown metric
Submitted by cpowell on Sat, 2013-04-27 01:25. Section: Daily Dispatches
9:24p ET Friday, April 26, 2013
Dear Friend of GATA and Gold:
Bron Suchecki of the Perth Mint writes tonight that the key measure of stress in the paper gold market is the coverage ratio, the percentage of open interest that is backed by real metal on deposit; that the current coverage ratio on the New York Commodities Exchange, 19 percent, is within the normal range; and that "while most of the shorts don't have the metal, most of the longs don't have the cash."
Suchecki adds: "We know this because of all the talk about margin calls causing people to have to sell. Think about that: If they couldn't meet the margin calls, then it means they didn't have the money to stand for delivery."
Suchecki's commentary is headlined "Comex Stock Drawdown: Single Most Important Metric to Watch" and it's posted at 24hGold here:
CHRIS POWELL, Secretary/Treasurer
At 3:30 pm Friday, the CME released the COT report on position levels of our major players.
Let us first head over to the gold COT and see what we can glean from it;
Let us first head over to the gold COT and see what we can glean from it;
Gold COT Report - Futures
| ||||||
Large Speculators
|
Commercial
|
Total
| ||||
Long
|
Short
|
Spreading
|
Long
|
Short
|
Long
|
Short
|
197,188
|
92,933
|
21,887
|
156,131
|
260,519
|
375,206
|
375,339
|
Change from Prior Reporting Period
| ||||||
-7,489
|
17,138
|
3,820
|
11,609
|
-25,932
|
7,940
|
-4,974
|
Traders
| ||||||
156
|
108
|
79
|
60
|
51
|
249
|
211
|
Small Speculators
| ||||||
Long
|
Short
|
Open Interest
| ||||
39,868
|
39,735
|
415,074
| ||||
-5,949
|
6,965
|
1,991
| ||||
non reportable positions
|
Change from the previous reporting period
| |||||
COT Gold Report - Positions as of
|
Tuesday, April 23, 2013
| |||||
If you can believe the figures:
Our large speculators:
For those large specs that have been long in long, pitched a monstrous 7489 contracts from their long side.
Those large specs that have been short in gold, continued to add to their short position to the tune of a monstrous 17,138 contracts.
Our commercials:
Those commercials that are close to the physical scene and are long in gold, added a huge 11,609 contracts to their long side.
Those commercials that are short in gold covered a monstrous 25,932 contracts.
Our small specs;
Those small specs that have been long in gold pitched 5949 contracts from their long side.
Those small specs that have been short in gold added 6965 contracts to their short side.
Conclusions:
a very weird COT:
the large specs go net short by 24,627 contracts and the commercials go net long by a whopping 37,541 contracts.
You cannot get any more bullish than this!!
And now for your silver COT:
quite different to gold
Silver COT Report: Futures
| |||||
Large Speculators
|
Commercial
| ||||
Long
|
Short
|
Spreading
|
Long
|
Short
| |
38,817
|
23,816
|
31,113
|
68,258
|
85,422
| |
-884
|
1,713
|
-2,170
|
6,617
|
1,283
| |
Traders
| |||||
65
|
52
|
53
|
42
|
37
| |
Small Speculators
|
Open Interest
|
Total
| |||
Long
|
Short
|
158,970
|
Long
|
Short
| |
20,782
|
18,619
|
138,188
|
140,351
| ||
-1,895
|
842
|
1,668
|
3,563
|
826
| |
non reportable positions
|
Positions as of:
|
133
|
125
| ||
Tuesday, April 23, 2013
|
© SilverSeek.com
| ||||
Those large specs that are short in silver added another 1713 contracts to their short side.
Those commercials that have been short from the beginning of time added another 1283 contracts to their short side.
Those small specs that have been short in silver added another 842 contracts to their short side.
Gold Legacy COT Stunner
Flash on the Legacy COT Report.
If there is one chart from the Commodity Futures Trading Commission (CFTC) data that sticks out more than any of the 30 or so that we track, it is the one below which comes from the Legacy COT report. Below is a note we shared with our subscribers a half hour ago and the chart that goes with it.
Apl 26 Friday, late afternoon. COT We have not had time to study the COT data closely, but first glance is a stunner. Recall that the COT cuts off on Tuesday.
In the Legacy COT report as gold GAINED $45.72 or 3.3% to $1412.78 Tues/Tues combined commercial traders VERY STRONGLY REDUCED their collective net short positions by a huge 37,541 lots or 26.5%, sending the relative commercial net short position or LCNS.TO hurtling lower to just 25.2% of all COMEX contracts open (lowest since Nov of 2008 during the Panic). (Gold +3.3%, LCNS -26.5%!!) (Very bullish by itself, without considering the other data.) More in the charts this weekend. Have a good weekend.
* * *
Selected news and views.....
Mints, Refineries, Brokerages Out Of Stock - COMEX Gold Inventories Plummet
-- Posted Friday, 26 April 2013 | | 0 Comments and 0 Reactions
Today’s AM fix was USD 1,462.25, EUR 1,123.43 and GBP 947.79 per ounce.
Yesterday’s AM fix was USD 1,446.50, EUR 1,107.07 and GBP 937.64 per ounce
.
Comex Gold Inventory Plummet
Gold climbed $33.90 or 2.37% yesterday to $1,464.30/oz and silver surged +4.83%.
Gold has surged 4.9% in dollar terms so far this week and is headed for its biggest weekly gain in one-and-a-half years. Gold has recovered in all currencies and is up by 4.8% in euro terms and 3.7% in sterling terms.
Therefore, gold has recovered nearly half of its recent sharp decline and is now just 7% below its price ($1,560/oz) prior to the futures induced sell off on April 12th and 15th.
The manipulated sell off on the COMEX has led to bargain hunting and a surge in physical coin and bar buying internationally. Gold bullion inventories on the COMEX are being depleted rapidly (see chart and data below) and certain bullion products are either out of stock or production and distribution has been suspended.
The gold sell off has stoked a frenzy among coin, bar and jewelry buyers from China to India and the U.S. and Europe.
Government mints and refineries around the world have confirmed that demand for bullion coins and bars is surging and they are struggling to keep up with the demand as are brokerages who are running out of stock, particularly of smaller coins and bars.
The Perth Mint has experienced “unprecedented activity” and one of its busiest weeks ever. Some customers are experiencing “long delays” in securing certain bullion coins and bars.
The Perth Mint have suspended production of many silver bullion products (2013 Australian Lunar snake silver bullion coins - 1 kilo, 10oz, 5oz, 2oz, 1/2oz and 2013 Australian Kookaburra silver bullion coins - 10oz. 1oz and 1/2oz) but is continuing to offer 2013 Australian Kookaburra silver bullion coins (1oz and 1 kilo).
Many bullion dealers internationally have been cleared out of stock and buyers have to be less selective in which coins and bars they buy. This is leading to rising premiums on coins and bars and to delays in buyers receiving their bullion.
The U.S. Mint’s sales of gold coins are heading for the highest in almost three years following the biggest plunge in futures prices since 1980.
Gold Prices and US Mint Gold Coin Sales (1 Year)
The Bloomberg Chart of the Day shows the surge in American Eagle gold coins this month and the slump last week in futures.
Sales of gold coins from the U.S. Mint in April are set for the biggest month since December 2009 and the U.K. Mint has confirmed that gold coin purchases have tripled in April.
The risk of currency devaluations in Japan and internationally and then the confiscation of deposits in Cyprus was already leading to increased physical demand, particularly in Japan and Europe.
Bullion buyers who were getting ready to allocate capital to the gold market saw the sell off as an opportunity to buy gold at much cheaper prices and were quick to take the opportunity. The tragic events in Boston and increased geopolitical risk may have also encouraged U.S. buyers who have been buying record amounts of gold coins at these lower prices.
Gold in USD, 5 day – (Bloomberg)
Demand in the Middle East and Asia, particularly China and India has also surged. This very important facet of gold demand continues to be ignored by gold bears.
The World Gold Council noted how there is a shortage of gold bars in Dubai, a primary trading hub for precious metals in the Middle East.
Gold physical demand has surged in India and China after the price drop. The two gold buying behemoths account for more than half of annual global bullion demand.
Gold imports by China from Hong Kong have surged this month as mainland buyers increased purchases after domestic prices sank to the cheapest in more than 2 1/2 years.
Volumes for the benchmark spot contract on the Shanghai Gold Exchange, China’s biggest cash bullion market, exceeded 20 metric tons every day since April 16. That’s more than four times the daily average in 2012, according to exchange data compiled by Bloomberg. Volumes reached a record 43,272 kilograms (43 metric tons) on April 22 alone.
This puts the rumour of Cyprus’ 15 tonne gold sale in perspective.
Retail sales tripled across China on April 15-16, according to the China Gold Association. Shipments to China reached a record 114,405 kilograms in December, according to data from Hong Kong’s Census and Statistics Department, which may release April data in June.
“Given that the trading volume has been so huge on the Shanghai Gold Exchange, the import volume in April should definitely reach a very high level,” said Qu Mingyu, a trader at Bank of China Ltd., one of the country’s three largest bullion banks.
Gold in USD, 1 Year – (Bloomberg)
Gold stockpiles held at warehouses monitored by COMEX, fell sharply this week according to CME data:
===========================================================
April 24 April 23 April 22 April 19 April 18
2013 2013 2013 2013 2013
===========================================================
Grand total 7,990,799 8,345,509 8,583,373 8,781,910 8,917,901
30-day average 9,181,556 9,240,083 9,288,168 9,330,848 9,370,087
Daily change -354,710 -237,864 -198,536 -135,991 -32,497
5-day avg. % -6.1% -4.6% -3.6% -2.7% -2.3%
-----------------------------------------------------------------------------
Total registered 2,174,090 2,210,736 2,281,503 2,280,400 2,371,583
30-day average 2,634,576 2,649,134 2,664,740 2,674,676 2,684,738
Daily change -36,646 -70,767 1,103 -91,183 -389
5-day avg. % -17.1% -18.8% -15.5% -12.8% -10.2%
-----------------------------------------------------------------------------
========================================================
April 24 April 23 April 22 April 19 April 18
2013 2013 2013 2013 2013
=======================================================
Total eligible 5,816,709 6,134,773 6,301,870 6,501,509 6,546,317
30-day average 6,546,980 6,590,949 6,623,428 6,656,172 6,685,349
Daily change -318,064 -167,097 -199,639 -44,808 -32,108
5-day avg. % -1.5% 1.8% 1.8% 1.9% 1.3%
--------------------Brink’s, Inc.--------------------
Total 624,888 623,602 622,749 622,749 622,749
Registered 494,576 494,576 494,576 494,576 494,576
Eligible 130,311 129,025 128,173 128,173 128,173
-------------------Scotia Mocatta--------------------
Total 2,930,817 3,020,611 3,491,842 3,241,037 3,255,905
Registered 501,155 537,801 378,053 607,465 622,333
Eligible 2,429,662 2,482,810 3,113,788 2,633,572 2,633,572
-------------------HSBC Bank, USA--------------------
Total 3,486,233 3,491,642 1,286,265 3,524,073 3,632,317
Registered 378,053 378,053 780,334 378,053 378,053
Eligible 3,108,179 3,113,589 505,931 3,146,020 3,254,264
==================================================
April 24 April 23 April 22 April 19 April 18
2013 2013 2013 2013 2013
==================================================
----------Manfra, Tordella & Brookes, Inc.-----------
Total 26,946 26,946 26,946 26,946 26,946
Registered 19,971 19,971 19,971 19,971 19,971
Eligible 6,975 6,975 6,975 6,975 6,975
--------------JP Morgan Chase Bank NA----------------
Total 921,916 1,182,708 3,155,571 1,367,103 1,379,983
Registered 780,334 780,334 608,568 780,334 856,650
Eligible 141,581 402,374 2,547,003 586,769 523,333
==================================================
NOTE: Levels are in troy ounces. SOURCE: CME Group Inc.
COMEX gold inventories are registered gold bullion bars that meet the standards for delivery under gold futures contracts and for which a receipt from an Exchange-approved depository or warehouse has been issued.
JP Morgan’s eligible gold inventories fell by more than 70% this week which suggests there may be supply issues in the larger London good delivery gold bar market also. This is important to keep an eye on next week.
The death of the gold market is greatly exaggerated and gold’s long term secular bull market is set to continue due to very large and increasing physical demand for bullion internationally.
Ignore the gold doomsters who do not understand gold and have been wrong about it throughout the gold bull market of the last 12 years.
This is a buying opportunity. Secure your allocated bullion and take delivery of gold and silver bullion coins and bars while they are available and premiums, while higher, remain relatively low.
The violent sell off in the gold futures market has shook weak hands out of the market but gold’s long term fundamentals remain sound and it remains a vital diversification for all wishing to protect themselves from currency devaluations and the significant systemic risk of today.
GoldCore April InsightThe recent fall in the price of gold has proved to be a gift to other investors as small denomination bars, at the time of writing, are now difficult to source in India, Singapore, Japan, China and Europe.
In this month’s edition of Insight Chris Sanders argues that the real issue is that we are not accumulating enough capital to replace depreciating assets, particularly with regard to the production of energy. Accompanying this alarming reality is the apparent reckless abandon with which the banking fraternity in the US is ‘bending’ COMEX’s rules and over in Cyprus, treating depositors’ savings as their own personal safety net.
In this edition of GoldCore Insight you will find out about:
• The Cyprus rubicon - depositors' savings are fair game
• How energy will shape our future
• The importance of owning physical bullion
American Eagle gold coins soar in value and forces Mint to suspend sales – Irish Independent
Comex Physical Drain Accelerates—With Over $7.8B In Gold Disappearing From All Depositories - GoldSeek
Child Hunger Is Exploding In Greece – And 14 Signs That It Is Starting To Happen In America Too – Economic Collapse
The Fiat Emperor Has No Clothes – 24hGOLD
For breaking news and commentary on financial markets and gold, follow us on Twitter.
Von Greyerz tells Eric King that the paper gold smash has backfired as this unleashed huge demand for the real physical metal:
(courtesy Von Greyerz/Kingworldnews)
Paper gold smash backfired, von Greyerz tells King World News
Submitted by cpowell on Fri, 2013-04-26 20:00. Section: Daily Dispatches
4p ET Friday, April 26, 2013
Dear Friend of GATA and Gold:
Swiss gold fund manager Egon von Greyerz today tells King World News that the paper gold smash has backfired, unleashing demand for real metal that can't be met by ordinary production and causing shortages. An excerpt from the interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
end
Eric Sprott gives two scenarios for the paper gold smash:
i) central bank intervention
ii) a derivative blowup
It seems everyone is leaning on the first, a rather huge central bank intervention
a very important interview with Eric Sprott
(courtesy Eric Sprott/Kingworld news)
'Historic panic bottom' in gold, Sprott tells King World News
Submitted by cpowell on Fri, 2013-04-26 17:28. Section: Daily Dispatches
1:20p ET Friday, April 26, 2013
Dear Friend of GATA and Gold:
Sprott Asset Management CEO and monetary metals advocate Eric Sprott today tells King World News that the recent smash in the gold price was either central bank intervention or some sort of breakdown in the derivatives market. Sprott adds that he thinks the smash marks "a historic panic bottom" in the metals. An excerpt from the interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
end
Part II of the same interview:
Paper trading means nothing as physical market explodes, Sprott says
Submitted by cpowell on Sat, 2013-04-27 00:59. Section: Daily Dispatches
9p ET Friday, April 26, 2013
Dear Friend of GATA and Gold:
Paper trading in gold means nothing as the physical market explodes, Sprott Asset Management CEO and monetary metals advocate Eric Sprott tells King World News in the second installment of his interview today. Sprott joins Jim Sinclair and Egon von Greyerz in saying that the central bank smashing of the paper gold price has backfired by triggering enormous demand for real metal. An excerpt from the interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
A superb discussion with Bron Suchecki, director and head honcho for the Perth Mint talks about a key measure of stress for the comex gold market and he calls it the current coverage ratio.
(courtesy Bron Suchecki/GATA)
Bron Suchecki: The most important Comex drawdown metric
Submitted by cpowell on Sat, 2013-04-27 01:25. Section: Daily Dispatches
9:24p ET Friday, April 26, 2013
Dear Friend of GATA and Gold:
Bron Suchecki of the Perth Mint writes tonight that the key measure of stress in the paper gold market is the coverage ratio, the percentage of open interest that is backed by real metal on deposit; that the current coverage ratio on the New York Commodities Exchange, 19 percent, is within the normal range; and that "while most of the shorts don't have the metal, most of the longs don't have the cash."
Suchecki adds: "We know this because of all the talk about margin calls causing people to have to sell. Think about that: If they couldn't meet the margin calls, then it means they didn't have the money to stand for delivery."
Suchecki's commentary is headlined "Comex Stock Drawdown: Single Most Important Metric to Watch" and it's posted at 24hGold here:
CHRIS POWELL, Secretary/Treasurer
-- Posted Friday, 26 April 2013 | | 0 Comments and 0 Reactions
Today’s AM fix was USD 1,462.25, EUR 1,123.43 and GBP 947.79 per ounce.
Yesterday’s AM fix was USD 1,446.50, EUR 1,107.07 and GBP 937.64 per ounce
.
Comex Gold Inventory Plummet
Gold climbed $33.90 or 2.37% yesterday to $1,464.30/oz and silver surged +4.83%.
Gold has surged 4.9% in dollar terms so far this week and is headed for its biggest weekly gain in one-and-a-half years. Gold has recovered in all currencies and is up by 4.8% in euro terms and 3.7% in sterling terms.
Therefore, gold has recovered nearly half of its recent sharp decline and is now just 7% below its price ($1,560/oz) prior to the futures induced sell off on April 12th and 15th.
The manipulated sell off on the COMEX has led to bargain hunting and a surge in physical coin and bar buying internationally. Gold bullion inventories on the COMEX are being depleted rapidly (see chart and data below) and certain bullion products are either out of stock or production and distribution has been suspended.
The gold sell off has stoked a frenzy among coin, bar and jewelry buyers from China to India and the U.S. and Europe.
Government mints and refineries around the world have confirmed that demand for bullion coins and bars is surging and they are struggling to keep up with the demand as are brokerages who are running out of stock, particularly of smaller coins and bars.
The Perth Mint has experienced “unprecedented activity” and one of its busiest weeks ever. Some customers are experiencing “long delays” in securing certain bullion coins and bars.
The Perth Mint have suspended production of many silver bullion products (2013 Australian Lunar snake silver bullion coins - 1 kilo, 10oz, 5oz, 2oz, 1/2oz and 2013 Australian Kookaburra silver bullion coins - 10oz. 1oz and 1/2oz) but is continuing to offer 2013 Australian Kookaburra silver bullion coins (1oz and 1 kilo).
Many bullion dealers internationally have been cleared out of stock and buyers have to be less selective in which coins and bars they buy. This is leading to rising premiums on coins and bars and to delays in buyers receiving their bullion.
The U.S. Mint’s sales of gold coins are heading for the highest in almost three years following the biggest plunge in futures prices since 1980.
Gold Prices and US Mint Gold Coin Sales (1 Year)
The Bloomberg Chart of the Day shows the surge in American Eagle gold coins this month and the slump last week in futures.
Sales of gold coins from the U.S. Mint in April are set for the biggest month since December 2009 and the U.K. Mint has confirmed that gold coin purchases have tripled in April.
The risk of currency devaluations in Japan and internationally and then the confiscation of deposits in Cyprus was already leading to increased physical demand, particularly in Japan and Europe.
Bullion buyers who were getting ready to allocate capital to the gold market saw the sell off as an opportunity to buy gold at much cheaper prices and were quick to take the opportunity. The tragic events in Boston and increased geopolitical risk may have also encouraged U.S. buyers who have been buying record amounts of gold coins at these lower prices.
Gold in USD, 5 day – (Bloomberg)
Demand in the Middle East and Asia, particularly China and India has also surged. This very important facet of gold demand continues to be ignored by gold bears.
The World Gold Council noted how there is a shortage of gold bars in Dubai, a primary trading hub for precious metals in the Middle East.
Gold physical demand has surged in India and China after the price drop. The two gold buying behemoths account for more than half of annual global bullion demand.
Gold imports by China from Hong Kong have surged this month as mainland buyers increased purchases after domestic prices sank to the cheapest in more than 2 1/2 years.
Volumes for the benchmark spot contract on the Shanghai Gold Exchange, China’s biggest cash bullion market, exceeded 20 metric tons every day since April 16. That’s more than four times the daily average in 2012, according to exchange data compiled by Bloomberg. Volumes reached a record 43,272 kilograms (43 metric tons) on April 22 alone.
This puts the rumour of Cyprus’ 15 tonne gold sale in perspective.
Retail sales tripled across China on April 15-16, according to the China Gold Association. Shipments to China reached a record 114,405 kilograms in December, according to data from Hong Kong’s Census and Statistics Department, which may release April data in June.
“Given that the trading volume has been so huge on the Shanghai Gold Exchange, the import volume in April should definitely reach a very high level,” said Qu Mingyu, a trader at Bank of China Ltd., one of the country’s three largest bullion banks.
Gold in USD, 1 Year – (Bloomberg)
Gold stockpiles held at warehouses monitored by COMEX, fell sharply this week according to CME data:
===========================================================
April 24 April 23 April 22 April 19 April 18
2013 2013 2013 2013 2013
===========================================================
Grand total 7,990,799 8,345,509 8,583,373 8,781,910 8,917,901
30-day average 9,181,556 9,240,083 9,288,168 9,330,848 9,370,087
Daily change -354,710 -237,864 -198,536 -135,991 -32,497
5-day avg. % -6.1% -4.6% -3.6% -2.7% -2.3%
-----------------------------------------------------------------------------
Total registered 2,174,090 2,210,736 2,281,503 2,280,400 2,371,583
30-day average 2,634,576 2,649,134 2,664,740 2,674,676 2,684,738
Daily change -36,646 -70,767 1,103 -91,183 -389
5-day avg. % -17.1% -18.8% -15.5% -12.8% -10.2%
-----------------------------------------------------------------------------
========================================================
April 24 April 23 April 22 April 19 April 18
2013 2013 2013 2013 2013
=======================================================
Total eligible 5,816,709 6,134,773 6,301,870 6,501,509 6,546,317
30-day average 6,546,980 6,590,949 6,623,428 6,656,172 6,685,349
Daily change -318,064 -167,097 -199,639 -44,808 -32,108
5-day avg. % -1.5% 1.8% 1.8% 1.9% 1.3%
--------------------Brink’s, Inc.--------------------
Total 624,888 623,602 622,749 622,749 622,749
Registered 494,576 494,576 494,576 494,576 494,576
Eligible 130,311 129,025 128,173 128,173 128,173
-------------------Scotia Mocatta--------------------
Total 2,930,817 3,020,611 3,491,842 3,241,037 3,255,905
Registered 501,155 537,801 378,053 607,465 622,333
Eligible 2,429,662 2,482,810 3,113,788 2,633,572 2,633,572
-------------------HSBC Bank, USA--------------------
Total 3,486,233 3,491,642 1,286,265 3,524,073 3,632,317
Registered 378,053 378,053 780,334 378,053 378,053
Eligible 3,108,179 3,113,589 505,931 3,146,020 3,254,264
==================================================
April 24 April 23 April 22 April 19 April 18
2013 2013 2013 2013 2013
==================================================
----------Manfra, Tordella & Brookes, Inc.-----------
Total 26,946 26,946 26,946 26,946 26,946
Registered 19,971 19,971 19,971 19,971 19,971
Eligible 6,975 6,975 6,975 6,975 6,975
--------------JP Morgan Chase Bank NA----------------
Total 921,916 1,182,708 3,155,571 1,367,103 1,379,983
Registered 780,334 780,334 608,568 780,334 856,650
Eligible 141,581 402,374 2,547,003 586,769 523,333
==================================================
NOTE: Levels are in troy ounces. SOURCE: CME Group Inc.
COMEX gold inventories are registered gold bullion bars that meet the standards for delivery under gold futures contracts and for which a receipt from an Exchange-approved depository or warehouse has been issued.
JP Morgan’s eligible gold inventories fell by more than 70% this week which suggests there may be supply issues in the larger London good delivery gold bar market also. This is important to keep an eye on next week.
The death of the gold market is greatly exaggerated and gold’s long term secular bull market is set to continue due to very large and increasing physical demand for bullion internationally.
Ignore the gold doomsters who do not understand gold and have been wrong about it throughout the gold bull market of the last 12 years.
This is a buying opportunity. Secure your allocated bullion and take delivery of gold and silver bullion coins and bars while they are available and premiums, while higher, remain relatively low.
The violent sell off in the gold futures market has shook weak hands out of the market but gold’s long term fundamentals remain sound and it remains a vital diversification for all wishing to protect themselves from currency devaluations and the significant systemic risk of today.
GoldCore April InsightThe recent fall in the price of gold has proved to be a gift to other investors as small denomination bars, at the time of writing, are now difficult to source in India, Singapore, Japan, China and Europe.
In this month’s edition of Insight Chris Sanders argues that the real issue is that we are not accumulating enough capital to replace depreciating assets, particularly with regard to the production of energy. Accompanying this alarming reality is the apparent reckless abandon with which the banking fraternity in the US is ‘bending’ COMEX’s rules and over in Cyprus, treating depositors’ savings as their own personal safety net.
In this edition of GoldCore Insight you will find out about:
• The Cyprus rubicon - depositors' savings are fair game
• How energy will shape our future
• The importance of owning physical bullion
American Eagle gold coins soar in value and forces Mint to suspend sales – Irish Independent
Comex Physical Drain Accelerates—With Over $7.8B In Gold Disappearing From All Depositories - GoldSeek
Child Hunger Is Exploding In Greece – And 14 Signs That It Is Starting To Happen In America Too – Economic Collapse
The Fiat Emperor Has No Clothes – 24hGOLD
For breaking news and commentary on financial markets and gold, follow us on Twitter.
|
Von Greyerz tells Eric King that the paper gold smash has backfired as this unleashed huge demand for the real physical metal:
(courtesy Von Greyerz/Kingworldnews)
Paper gold smash backfired, von Greyerz tells King World News
Submitted by cpowell on Fri, 2013-04-26 20:00. Section: Daily Dispatches
4p ET Friday, April 26, 2013
Dear Friend of GATA and Gold:
Swiss gold fund manager Egon von Greyerz today tells King World News that the paper gold smash has backfired, unleashing demand for real metal that can't be met by ordinary production and causing shortages. An excerpt from the interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
end
Eric Sprott gives two scenarios for the paper gold smash:
i) central bank intervention
ii) a derivative blowup
It seems everyone is leaning on the first, a rather huge central bank intervention
a very important interview with Eric Sprott
(courtesy Eric Sprott/Kingworld news)
'Historic panic bottom' in gold, Sprott tells King World News
Submitted by cpowell on Fri, 2013-04-26 17:28. Section: Daily Dispatches
1:20p ET Friday, April 26, 2013
Dear Friend of GATA and Gold:
Sprott Asset Management CEO and monetary metals advocate Eric Sprott today tells King World News that the recent smash in the gold price was either central bank intervention or some sort of breakdown in the derivatives market. Sprott adds that he thinks the smash marks "a historic panic bottom" in the metals. An excerpt from the interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
end
Part II of the same interview:
Paper trading means nothing as physical market explodes, Sprott says
Submitted by cpowell on Sat, 2013-04-27 00:59. Section: Daily Dispatches
9p ET Friday, April 26, 2013
Dear Friend of GATA and Gold:
Paper trading in gold means nothing as the physical market explodes, Sprott Asset Management CEO and monetary metals advocate Eric Sprott tells King World News in the second installment of his interview today. Sprott joins Jim Sinclair and Egon von Greyerz in saying that the central bank smashing of the paper gold price has backfired by triggering enormous demand for real metal. An excerpt from the interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
A superb discussion with Bron Suchecki, director and head honcho for the Perth Mint talks about a key measure of stress for the comex gold market and he calls it the current coverage ratio.
(courtesy Bron Suchecki/GATA)
Bron Suchecki: The most important Comex drawdown metric
Submitted by cpowell on Sat, 2013-04-27 01:25. Section: Daily Dispatches
9:24p ET Friday, April 26, 2013
Dear Friend of GATA and Gold:
Bron Suchecki of the Perth Mint writes tonight that the key measure of stress in the paper gold market is the coverage ratio, the percentage of open interest that is backed by real metal on deposit; that the current coverage ratio on the New York Commodities Exchange, 19 percent, is within the normal range; and that "while most of the shorts don't have the metal, most of the longs don't have the cash."
Suchecki adds: "We know this because of all the talk about margin calls causing people to have to sell. Think about that: If they couldn't meet the margin calls, then it means they didn't have the money to stand for delivery."
Suchecki's commentary is headlined "Comex Stock Drawdown: Single Most Important Metric to Watch" and it's posted at 24hGold here:
CHRIS POWELL, Secretary/Treasurer
Von Greyerz tells Eric King that the paper gold smash has backfired as this unleashed huge demand for the real physical metal:
(courtesy Von Greyerz/Kingworldnews)
(courtesy Von Greyerz/Kingworldnews)
Paper gold smash backfired, von Greyerz tells King World News
Submitted by cpowell on Fri, 2013-04-26 20:00. Section: Daily Dispatches
4p ET Friday, April 26, 2013
Dear Friend of GATA and Gold:
Swiss gold fund manager Egon von Greyerz today tells King World News that the paper gold smash has backfired, unleashing demand for real metal that can't be met by ordinary production and causing shortages. An excerpt from the interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
end
Eric Sprott gives two scenarios for the paper gold smash:
i) central bank intervention
ii) a derivative blowup
It seems everyone is leaning on the first, a rather huge central bank intervention
a very important interview with Eric Sprott
(courtesy Eric Sprott/Kingworld news)
Eric Sprott gives two scenarios for the paper gold smash:
i) central bank intervention
ii) a derivative blowup
It seems everyone is leaning on the first, a rather huge central bank intervention
a very important interview with Eric Sprott
(courtesy Eric Sprott/Kingworld news)
'Historic panic bottom' in gold, Sprott tells King World News
Submitted by cpowell on Fri, 2013-04-26 17:28. Section: Daily Dispatches
1:20p ET Friday, April 26, 2013
Dear Friend of GATA and Gold:
Sprott Asset Management CEO and monetary metals advocate Eric Sprott today tells King World News that the recent smash in the gold price was either central bank intervention or some sort of breakdown in the derivatives market. Sprott adds that he thinks the smash marks "a historic panic bottom" in the metals. An excerpt from the interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
end
Part II of the same interview:
Part II of the same interview:
Paper trading means nothing as physical market explodes, Sprott says
Submitted by cpowell on Sat, 2013-04-27 00:59. Section: Daily Dispatches
9p ET Friday, April 26, 2013
Dear Friend of GATA and Gold:
Paper trading in gold means nothing as the physical market explodes, Sprott Asset Management CEO and monetary metals advocate Eric Sprott tells King World News in the second installment of his interview today. Sprott joins Jim Sinclair and Egon von Greyerz in saying that the central bank smashing of the paper gold price has backfired by triggering enormous demand for real metal. An excerpt from the interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
A superb discussion with Bron Suchecki, director and head honcho for the Perth Mint talks about a key measure of stress for the comex gold market and he calls it the current coverage ratio.
(courtesy Bron Suchecki/GATA)
Bron Suchecki: The most important Comex drawdown metric
Submitted by cpowell on Sat, 2013-04-27 01:25. Section: Daily Dispatches
9:24p ET Friday, April 26, 2013
Dear Friend of GATA and Gold:
Bron Suchecki of the Perth Mint writes tonight that the key measure of stress in the paper gold market is the coverage ratio, the percentage of open interest that is backed by real metal on deposit; that the current coverage ratio on the New York Commodities Exchange, 19 percent, is within the normal range; and that "while most of the shorts don't have the metal, most of the longs don't have the cash."
Suchecki adds: "We know this because of all the talk about margin calls causing people to have to sell. Think about that: If they couldn't meet the margin calls, then it means they didn't have the money to stand for delivery."
Suchecki's commentary is headlined "Comex Stock Drawdown: Single Most Important Metric to Watch" and it's posted at 24hGold here:
CHRIS POWELL, Secretary/Treasurer
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