http://harveyorgan.blogspot.com/2013/04/gold-refuses-to-buckle-on-attempted.html
Tuesday, April 30, 2013
Gold refuses to buckle on attempted raid/In silver 14.86 million oz standing on first day/ in gold a huge 4.46 tonnes standing/
Good evening Ladies and Gentlemen:
Gold closed up $3.80 to $1472.20 (comex closing time). Silver unchanged at $24.18 (comex closing time).
In the access market at 5 pm gold and silver rose :
gold: $1476.30
silver: $24.35
At the comex, the open interest in silver fell by a healthy 1844 contracts to 146,310 contracts as we had some short covering. The silver OI is holding firm at elevated levels . The open interest on the gold contract rose by 6525 contracts to 422,733. Today is first day notice in both gold and silver and at first glance we will have 143,500 oz of gold stand in this non active month of May (4.4 tonnes).
In silver, at first glance we will have 14.86 million oz standing for delivery.
I will provide details for you below.
Today, physical gold continues to leave London with 2.14 tonnes of gold departing the GLD for the shores of China/and or Russia.
We had good commentaries today from Mark Grant, Ambrose Evans Pritchard, Jim Sinclair, Rosie Murray West of the UK Telegraph, Michael Kreiger on CME President Duffy, Bill Murphy and James Turk on Barrick and Pascua Lama and Glenys Sim of Bloomberg on gold's huge demand.
Good paper stories are provided by of course, zero hedge and Marc to Market
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 6,525 contracts today from 416,206 up to 422,733, with gold rising by $14.80 on Monday. The front April OI is now off the board. Today is first day notice for the May Gold contract. Last night we had a rather large 1288 notices sent down for first day delivery. The number of OI contracts standing this afternoon is represented by 1435 contracts or 143,500 oz of gold. So a preliminary reading of the amount that will stand will be 143,500 oz or 4.46 tonnes. That amount will probably rise as the month progresses. The next active contract month is June and here the OI rose by 2253 contracts to 246,611. June is the second biggest delivery month in gold's calender. The estimated volume today was fair at 150,640. The confirmed volume on Monday was also fair at 145,114 contracts.
The total silver comex OI fell by a hefty 1844 contracts from 148,154 down to 146,310 with silver's $0.42 rise on Monday. No doubt we had some short covering today. Those contracts that remain are stoic and ready to take on the bankers at their crooked game. Today is first day notice for the active silver contract month. Late last night a rather large 1506 contracts were served upon or 7.530 million oz. At 1:30 this afternoon we learned that 2,972 contracts are standing first for 14.86 million oz. No doubt JPMorgan will be busy handing out fiat to encourage these longs not to take possession of the physical metal. The next delivery month for silver is June and here the OI fell by 13 contracts to stand at 486. The next big active contract month is July and here the OI rose by 4504 contracts to rest tonight at 79,509. The estimated volume today was good, coming in at 38,700 contracts. The confirmed volume yesterday was very good at 75,641.
Gold closed up $3.80 to $1472.20 (comex closing time). Silver unchanged at $24.18 (comex closing time).
In the access market at 5 pm gold and silver rose :
gold: $1476.30
silver: $24.35
At the comex, the open interest in silver fell by a healthy 1844 contracts to 146,310 contracts as we had some short covering. The silver OI is holding firm at elevated levels . The open interest on the gold contract rose by 6525 contracts to 422,733. Today is first day notice in both gold and silver and at first glance we will have 143,500 oz of gold stand in this non active month of May (4.4 tonnes).
In silver, at first glance we will have 14.86 million oz standing for delivery.
I will provide details for you below.
Today, physical gold continues to leave London with 2.14 tonnes of gold departing the GLD for the shores of China/and or Russia.
We had good commentaries today from Mark Grant, Ambrose Evans Pritchard, Jim Sinclair, Rosie Murray West of the UK Telegraph, Michael Kreiger on CME President Duffy, Bill Murphy and James Turk on Barrick and Pascua Lama and Glenys Sim of Bloomberg on gold's huge demand.
Good paper stories are provided by of course, zero hedge and Marc to Market
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 6,525 contracts today from 416,206 up to 422,733, with gold rising by $14.80 on Monday. The front April OI is now off the board. Today is first day notice for the May Gold contract. Last night we had a rather large 1288 notices sent down for first day delivery. The number of OI contracts standing this afternoon is represented by 1435 contracts or 143,500 oz of gold. So a preliminary reading of the amount that will stand will be 143,500 oz or 4.46 tonnes. That amount will probably rise as the month progresses. The next active contract month is June and here the OI rose by 2253 contracts to 246,611. June is the second biggest delivery month in gold's calender. The estimated volume today was fair at 150,640. The confirmed volume on Monday was also fair at 145,114 contracts.
The total silver comex OI fell by a hefty 1844 contracts from 148,154 down to 146,310 with silver's $0.42 rise on Monday. No doubt we had some short covering today. Those contracts that remain are stoic and ready to take on the bankers at their crooked game. Today is first day notice for the active silver contract month. Late last night a rather large 1506 contracts were served upon or 7.530 million oz. At 1:30 this afternoon we learned that 2,972 contracts are standing first for 14.86 million oz. No doubt JPMorgan will be busy handing out fiat to encourage these longs not to take possession of the physical metal. The next delivery month for silver is June and here the OI fell by 13 contracts to stand at 486. The next big active contract month is July and here the OI rose by 4504 contracts to rest tonight at 79,509. The estimated volume today was good, coming in at 38,700 contracts. The confirmed volume yesterday was very good at 75,641.
May gold: first day notice
Ounces
Withdrawals from Dealers Inventory in oz
nil
Withdrawals from Customer Inventory in oz
189,258.117 (HSBC,Scotia) oz
Deposits to the Dealer Inventory in oz
nil
Deposits to the Customer Inventory, in oz
269.169.971 (Scotia, HSBC)
No of oz served (contracts) today
1288 (128,800 oz)
No of oz to be served (notices)
147 (14,700)
Total monthly oz gold served (contracts) so far this month
1288 (128,800)
Total accumulative withdrawal of gold from the Dealers inventory this month
nil
Total accumulative withdrawal of gold from the Customer inventory this month
189,258.117 oz
We had huge activity at the gold vaults.
The dealer had 0 deposits and 0 dealer withdrawals.
We had 2 customer deposits on Friday:
i). Into Scotia: 208,389.431 oz
ii) Into HSBC: 60,780.54 oz
total customer deposit: 269,169.971 oz
We had 2 customer withdrawal:
i) Out of Scotia: 125,025.98 oz
ii) Out of HSBC: 64,232.137
total withdrawal: 189,258.117 oz
We had 2 adjustments
. They adjusted another 2,296.526 oz out of the dealer JPMorgan and into the customer account of JPMorgan. No gold entered the customer from outside with respect to JPMorgan
2. From the HSBC vault: 5966.510 oz was adjusted out of the dealer and back into the customer account.
Thus the dealer inventory rests tonight at 2.147 million oz (66.78) tonnes of gold.
The total of all gold declines again at the comex and this time almost breaking below 8 million oz as it rests at 8.129 million oz or 252.0 tonnes.
The CME reported that we had 1288 notices filed on first day notice for 128,800 oz of gold today. We have a total number of OI standing for gold equal to 1435 contracts. To calculate how many gold ounces will stand for May, I take the OI standing for the May gold contract (1435) and subtract out today's notices (1288) which leaves us with 147 notices left to be served upon
.
Thus we have the following gold ounces standing for metal in May:
1288 contracts x 100 oz per contract (served) + 147 notices or 14700 oz (to be served upon) = 143,500 oz or 4.46 tonnes of gold.
This is extremely high for a non active month.
First day notice for the active silver month:
Silver
Ounces
Withdrawals from Dealers Inventory nil Withdrawals from Customer Inventory 649,750.566( Delaware, Scotia) Deposits to the Dealer Inventory nil Deposits to the Customer Inventory 647,095.54 (CNT, Brinks) No of oz served (contracts) 1506 contracts ( 7,530,000 oz) No of oz to be served (notices) 1462 (7,330,000 oz) Total monthly oz silver served (contracts) 754 (3,7670,000 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 6,159,668.2 oz
Today, we had good activity inside the silver vaults.
we had 0 dealer deposits and 0 dealer withdrawals.
We had 2 customer deposits:
i) Into CNT: 50,891.59 oz
ii) Into Brinks; 596,203.95
Total deposits: 647,095.54 oz
We had 2 customer withdrawals:
1) Out of Delaware: 49,051.566 oz
ii) Out of Scotia; 600,699.000 oz (another of those perfectly round withdrawals)
total customer withdrawal: 649,750.566 oz
we had 2 dandy adjustments:
i) Out of HSBC: 135,068.015 oz was adjusted out of the dealer and back into the customer account
ii) get a load of this biggy!!:
Out of JPMorgan, a monstrous 8,668,651.908 oz was adjusted out of the customer and back into the dealer account and probably ready to serve upon some of our longs.
Registered silver at : 45.945 million oz
total of all silver: 166.05 million oz.
The CME reported that we had a rather large 1506 notices filed for first day notice equal to 7,530,000 oz of silver for the active contract month of May. The total number of OI that stands tonight for silver equals 2972 and that is our first good shot at what will stand.
Thus the total number of silver ounces standing in this active delivery month of April is as follows:
1506 contracts x 5000 oz per contract (served) = 7,530,000 + 1462 contracts x 5000 oz = 7,330,000 oz ( to be served) = 14,860,000
April 30.2013:
Tonnes1,078.54
Ounces34,676,103.28
Value US$50.915 billion
April 29.2013
Tonnes1,080.64
Ounces34,743,798.37
Value US$50.963 billion
news and views......
Dear CIGAs,
Today legendary trader Jim Sinclair told King World News that despite the volatility in gold and silver, not only will any setbacks will be short-lived, but we are now looking at the very real possibility of a major short squeeze in the metals. Sinclair also spoke about what has just taken place in Cyprus, the Western media blackout of those events, and what it means for investors going forward. Below is what Sinclair, who was once called on by former Fed Chairman Paul Volcker to assist during a Wall Street crisis, had to say in this remarkable interview.
Eric King: “Jim, we will get to gold in just a minute, but first, what are you focused on in the aftermath of this latest development in Cyprus?”
Sinclair: “There has been a total blackout in the Western mainstream media regarding what just took place in Cyprus. Even where there was even scant reporting about Cyprus, they only reported approximately 1/3 of the amount of the assets that have effectively been stolen.
The takeaway I have, and the shock I have, is that the news is now so selective in the so-called free Western hemisphere….
Rose Murray West of the UK Telegraph on gold demand:
3:55PM BST 30 Apr 2013
Investment company Physical Gold said there were waiting lists of three weeks for some coins, and four to six weeks for gold bars. "Previously all would have been available within a few days," the company said.
The company said that it had seen a 50pc increase in enquiries about purchasing gold and a 35pc increase in sales, with people buying tax-free gold coins. "We are now starting to experience physical gold shortages," said Daniel Fisher, CEO of Physical Gold.
"In particular there are waiting times on some gold bars and a real difficulty in obtaining mixed year Sovereigns. "However, many clients are willing to 'do a deal' and wait for delivery as they want to secure the current price as they feel it will be higher in the near future."
Bill Murphy discussing the James turk commentary that I sent to you yesterday on Barrick. He should emphasis that Barrick must replace the silver sold from the Pascua Lama project to Silver Wheaton:
"On that note, James Turk did an interview with King World News yesterday which really caught my attention for a number of reasons. One of them had to do with Barrick’s Pascua- Lama operation in Chile…
The short position in both gold and silver is now so huge, it won't take much to push the shorts into a buying panic. I have been looking for possible triggers that could panic the shorts, and we got a hint last week of one possible event which may do this. Because of various problems, there have been news reports that Barrick is considering what to do with its huge Pascua-Lama deposit after a Chilean court ordered it to stop development work.
The project is already well behind schedule, with big cost overruns from its initial plan, but here's the important point: The market has been expecting that when production begins, the mine would produce 800,000 ounces of gold and 35 million ounces of silver annually. Those ounces will of course never materialize if development work remains suspended.
But also consider that according to its 31 March 2013 financial report, Barrick has hedged 65 million ounces of silver, which is 8% of the world's annual silver production. What is the bullion bank, who sold that hedge to Barrick, going to do if those 65 million ounces don't get mined and delivered to it?
What is Barrick going to do if the bullion bank forces it to deliver physical silver to close the hedge? What are the shorts in silver going to do when they realize that there is a potential time bomb here that could substantially reduce the near-term forecast of silver supply?
In other words, it is pure insanity to be short silver here, and for that matter, gold as well. Round two of the buying panic may be just around the corner when the paper shorts rush to the exits. They will learn the age-old and time-proven adage about the precious metals, namely, that it is easy to sell gold and silver in large quantities, but very, very difficult to buy in size."
Glenys Sim of Bloomberg discusses the huge gold rush. Premiums to the actual metal are rising as physical disappears!!
(courtesy Sim/Bloomberg)
Gold Rush From Dubai to Turkey Saps Supply as Premiums Jump
By Glenys Sim - Apr 30, 2013 8:26 AM ET
Dhiraj Singh/Bloomberg
Surging demand for gold from Dubai to Istanbul has pushed physical premiums in the region to levels not seen in years as the biggest price slump in three decades lures consumers, according to MKS (Switzerland) SA.
Premiums paid by wholesalers and bulk buyers in Dubai to secure a 1 kilogram bar of bullion are being quoted between $6 an ounce and $9 an ounce over the London cash price, said Frederic Panizzutti, global head of marketing and sales at the Swiss-based bullion refiner. That compares with about 50 cents before the rout, Panizzutti, also chief executive officer of MKS Precious Metals DMCC, said in an interview from Dubai.Gold fell to the lowest in more than two years this month on speculation that the global economy is recovering, unleashing a purchasing frenzy among coin and jewelry buyers from China to the U.S. Consumer demand for jewelry, bars and coins in Turkey and the Middle East represented about 9.4 percent of the global total last year, according to the World Gold Council. Bars have been cleared from display in the souks, according to Gerry Schubert, head of precious metals at Emirates NBD PJSC.
"Physical demand has been tremendous in a way I haven’t seen for a number of years," said Jeffrey Rhodes, global head of precious metals at INTL FCStone Inc., who’s worked in the industry for more than three decades. "The price collapse prompted a physical gold rush and the evidence of the extent of that is the prolonged period of high premiums that we’ve seen. Reports from the gold souks are that business is good," Rhodes said from Dubai.
Bear Market
Prices plunged 14 percent in the two sessions to April 15, the most since 1983, and reached a low of $1,321.95 an ounce on April 16. Since then, spot bullion has rebounded 11 percent to $1,469.54 today as the surge in physical demand offset record outflows from exchange-traded products. Gold is still lower in April, heading for the worst monthly loss since December 2011 amid a bear market.
In Turkey, the fourth-biggest gold consumer last year, bullion on the Istanbul Gold Exchange traded at premiums of as much as $25 an ounce over the London spot price, something that hasn’t happened in "a very long time, we’re talking years," said MKS’s Panizzutti."In the gold souk, you see some coins left over, but the investment bars are all gone from the windows," said Schubert at Dubai-based Emirates NBD, the United Arab Emirates’ second- biggest bank by assets. Domestic retail prices moved to a premium of about $5 an ounce from a small discount before the rout, said Schubert, who has traded the metal since 1979.
Largest Center
Dubai is the largest gold-trading center in the Middle East, according to the Dubai Gold & Jewellery Group, an industry body that includes manufacturers and retailers. Trade was worth about $56 billion in 2011, up from $6 billion in 2003, according to data on the Dubai Multi Commodities Centre website.
Gold jumped 4.2 percent last week, the most in 15 months, as coin demand from mints in the U.S. and Australia to the U.K. soared. The volume for the benchmark contract on the Shanghai Gold Exchange surged to a record last week, while premiums to secure supplies in India jumped to five times the level before the slump. China and India are the world’s largest buyers.
Consumers in Singapore and Hong Kong are paying premiums of about $3 an ounce, compared with about $2 just after the rout, according to Ng Cheng Thye, head of precious metals at Standard Merchant Bank (Asia) Ltd.
‘More Patient’
"Physical metal is still not available," Ng said by phone from Singapore. "The Chinese are on holiday these few days and at this level, the market might slow down a bit on the demand side. People are a little bit more patient now compared with two weeks ago, where everybody was rushing for physical metal."Chow Sang Sang Holdings International Ltd. said that jewelry sales at its 44 shops in Hong Kongmore than doubled in the two weeks ended April 27 from a year ago. In China, financial markets are closed through May 1.
"It’s not just a Middle East story, it’s all across the globe," said Panizzutti. "The fact that premiums are so high, it means that no one is making enough. We are producing 24 hours a day."
http://libertyblitzkrieg.com/2013/04/30/cme-president-on-gold-they-dont-want-certificates-they-want-the-real-product/
CME President on Gold: “They Don’t Want Certificates, They Want the Real Product”
JIM WILLIE: THE GOLD CLIMAX EVENT
Ounces
| |
Withdrawals from Dealers Inventory in oz
|
nil
|
Withdrawals from Customer Inventory in oz
|
189,258.117 (HSBC,Scotia) oz
|
Deposits to the Dealer Inventory in oz
|
nil
|
Deposits to the Customer Inventory, in oz
| 269.169.971 (Scotia, HSBC) |
No of oz served (contracts) today
|
1288 (128,800 oz)
|
No of oz to be served (notices)
|
147 (14,700)
|
Total monthly oz gold served (contracts) so far this month
|
1288 (128,800)
|
Total accumulative withdrawal of gold from the Dealers inventory this month
|
nil
|
Total accumulative withdrawal of gold from the Customer inventory this month
| 189,258.117 oz |
We had huge activity at the gold vaults.
The dealer had 0 deposits and 0 dealer withdrawals.
We had 2 customer deposits on Friday:
i). Into Scotia: 208,389.431 oz
ii) Into HSBC: 60,780.54 oz
total customer deposit: 269,169.971 oz
We had 2 customer withdrawal:
i) Out of Scotia: 125,025.98 oz
ii) Out of HSBC: 64,232.137
total withdrawal: 189,258.117 oz
We had 2 adjustments
. They adjusted another 2,296.526 oz out of the dealer JPMorgan and into the customer account of JPMorgan. No gold entered the customer from outside with respect to JPMorgan
2. From the HSBC vault: 5966.510 oz was adjusted out of the dealer and back into the customer account.
. They adjusted another 2,296.526 oz out of the dealer JPMorgan and into the customer account of JPMorgan. No gold entered the customer from outside with respect to JPMorgan
2. From the HSBC vault: 5966.510 oz was adjusted out of the dealer and back into the customer account.
Thus the dealer inventory rests tonight at 2.147 million oz (66.78) tonnes of gold.
The total of all gold declines again at the comex and this time almost breaking below 8 million oz as it rests at 8.129 million oz or 252.0 tonnes.
The total of all gold declines again at the comex and this time almost breaking below 8 million oz as it rests at 8.129 million oz or 252.0 tonnes.
The CME reported that we had 1288 notices filed on first day notice for 128,800 oz of gold today. We have a total number of OI standing for gold equal to 1435 contracts. To calculate how many gold ounces will stand for May, I take the OI standing for the May gold contract (1435) and subtract out today's notices (1288) which leaves us with 147 notices left to be served upon
.
.
Thus we have the following gold ounces standing for metal in May:
1288 contracts x 100 oz per contract (served) + 147 notices or 14700 oz (to be served upon) = 143,500 oz or 4.46 tonnes of gold.
This is extremely high for a non active month.
First day notice for the active silver month:
Silver
Ounces
Withdrawals from Dealers Inventory nil Withdrawals from Customer Inventory 649,750.566( Delaware, Scotia) Deposits to the Dealer Inventory nil Deposits to the Customer Inventory 647,095.54 (CNT, Brinks) No of oz served (contracts) 1506 contracts ( 7,530,000 oz) No of oz to be served (notices) 1462 (7,330,000 oz) Total monthly oz silver served (contracts) 754 (3,7670,000 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 6,159,668.2 oz
Today, we had good activity inside the silver vaults.
we had 0 dealer deposits and 0 dealer withdrawals.
We had 2 customer deposits:
i) Into CNT: 50,891.59 oz
ii) Into Brinks; 596,203.95
Total deposits: 647,095.54 oz
We had 2 customer withdrawals:
1) Out of Delaware: 49,051.566 oz
ii) Out of Scotia; 600,699.000 oz (another of those perfectly round withdrawals)
total customer withdrawal: 649,750.566 oz
we had 2 dandy adjustments:
i) Out of HSBC: 135,068.015 oz was adjusted out of the dealer and back into the customer account
ii) get a load of this biggy!!:
Out of JPMorgan, a monstrous 8,668,651.908 oz was adjusted out of the customer and back into the dealer account and probably ready to serve upon some of our longs.
Registered silver at : 45.945 million oz
total of all silver: 166.05 million oz.
The CME reported that we had a rather large 1506 notices filed for first day notice equal to 7,530,000 oz of silver for the active contract month of May. The total number of OI that stands tonight for silver equals 2972 and that is our first good shot at what will stand.
Thus the total number of silver ounces standing in this active delivery month of April is as follows:
1506 contracts x 5000 oz per contract (served) = 7,530,000 + 1462 contracts x 5000 oz = 7,330,000 oz ( to be served) = 14,860,000
April 30.2013:
Tonnes1,078.54
Ounces34,676,103.28
Value US$50.915 billion
April 29.2013
Tonnes1,080.64
Ounces34,743,798.37
Value US$50.963 billion
news and views......
Dear CIGAs,
Today legendary trader Jim Sinclair told King World News that despite the volatility in gold and silver, not only will any setbacks will be short-lived, but we are now looking at the very real possibility of a major short squeeze in the metals. Sinclair also spoke about what has just taken place in Cyprus, the Western media blackout of those events, and what it means for investors going forward. Below is what Sinclair, who was once called on by former Fed Chairman Paul Volcker to assist during a Wall Street crisis, had to say in this remarkable interview.
Eric King: “Jim, we will get to gold in just a minute, but first, what are you focused on in the aftermath of this latest development in Cyprus?”
Sinclair: “There has been a total blackout in the Western mainstream media regarding what just took place in Cyprus. Even where there was even scant reporting about Cyprus, they only reported approximately 1/3 of the amount of the assets that have effectively been stolen.
The takeaway I have, and the shock I have, is that the news is now so selective in the so-called free Western hemisphere….
Rose Murray West of the UK Telegraph on gold demand:
3:55PM BST 30 Apr 2013
Investment company Physical Gold said there were waiting lists of three weeks for some coins, and four to six weeks for gold bars. "Previously all would have been available within a few days," the company said.
The company said that it had seen a 50pc increase in enquiries about purchasing gold and a 35pc increase in sales, with people buying tax-free gold coins. "We are now starting to experience physical gold shortages," said Daniel Fisher, CEO of Physical Gold.
"In particular there are waiting times on some gold bars and a real difficulty in obtaining mixed year Sovereigns. "However, many clients are willing to 'do a deal' and wait for delivery as they want to secure the current price as they feel it will be higher in the near future."
Bill Murphy discussing the James turk commentary that I sent to you yesterday on Barrick. He should emphasis that Barrick must replace the silver sold from the Pascua Lama project to Silver Wheaton:
"On that note, James Turk did an interview with King World News yesterday which really caught my attention for a number of reasons. One of them had to do with Barrick’s Pascua- Lama operation in Chile…
The short position in both gold and silver is now so huge, it won't take much to push the shorts into a buying panic. I have been looking for possible triggers that could panic the shorts, and we got a hint last week of one possible event which may do this. Because of various problems, there have been news reports that Barrick is considering what to do with its huge Pascua-Lama deposit after a Chilean court ordered it to stop development work.
The project is already well behind schedule, with big cost overruns from its initial plan, but here's the important point: The market has been expecting that when production begins, the mine would produce 800,000 ounces of gold and 35 million ounces of silver annually. Those ounces will of course never materialize if development work remains suspended.
But also consider that according to its 31 March 2013 financial report, Barrick has hedged 65 million ounces of silver, which is 8% of the world's annual silver production. What is the bullion bank, who sold that hedge to Barrick, going to do if those 65 million ounces don't get mined and delivered to it?
What is Barrick going to do if the bullion bank forces it to deliver physical silver to close the hedge? What are the shorts in silver going to do when they realize that there is a potential time bomb here that could substantially reduce the near-term forecast of silver supply?
In other words, it is pure insanity to be short silver here, and for that matter, gold as well. Round two of the buying panic may be just around the corner when the paper shorts rush to the exits. They will learn the age-old and time-proven adage about the precious metals, namely, that it is easy to sell gold and silver in large quantities, but very, very difficult to buy in size."
Glenys Sim of Bloomberg discusses the huge gold rush. Premiums to the actual metal are rising as physical disappears!!
(courtesy Sim/Bloomberg)
Gold Rush From Dubai to Turkey Saps Supply as Premiums Jump
By Glenys Sim - Apr 30, 2013 8:26 AM ET
Dhiraj Singh/Bloomberg
Surging demand for gold from Dubai to Istanbul has pushed physical premiums in the region to levels not seen in years as the biggest price slump in three decades lures consumers, according to MKS (Switzerland) SA.
Premiums paid by wholesalers and bulk buyers in Dubai to secure a 1 kilogram bar of bullion are being quoted between $6 an ounce and $9 an ounce over the London cash price, said Frederic Panizzutti, global head of marketing and sales at the Swiss-based bullion refiner. That compares with about 50 cents before the rout, Panizzutti, also chief executive officer of MKS Precious Metals DMCC, said in an interview from Dubai.Gold fell to the lowest in more than two years this month on speculation that the global economy is recovering, unleashing a purchasing frenzy among coin and jewelry buyers from China to the U.S. Consumer demand for jewelry, bars and coins in Turkey and the Middle East represented about 9.4 percent of the global total last year, according to the World Gold Council. Bars have been cleared from display in the souks, according to Gerry Schubert, head of precious metals at Emirates NBD PJSC.
"Physical demand has been tremendous in a way I haven’t seen for a number of years," said Jeffrey Rhodes, global head of precious metals at INTL FCStone Inc., who’s worked in the industry for more than three decades. "The price collapse prompted a physical gold rush and the evidence of the extent of that is the prolonged period of high premiums that we’ve seen. Reports from the gold souks are that business is good," Rhodes said from Dubai.
Bear Market
Prices plunged 14 percent in the two sessions to April 15, the most since 1983, and reached a low of $1,321.95 an ounce on April 16. Since then, spot bullion has rebounded 11 percent to $1,469.54 today as the surge in physical demand offset record outflows from exchange-traded products. Gold is still lower in April, heading for the worst monthly loss since December 2011 amid a bear market.
In Turkey, the fourth-biggest gold consumer last year, bullion on the Istanbul Gold Exchange traded at premiums of as much as $25 an ounce over the London spot price, something that hasn’t happened in "a very long time, we’re talking years," said MKS’s Panizzutti."In the gold souk, you see some coins left over, but the investment bars are all gone from the windows," said Schubert at Dubai-based Emirates NBD, the United Arab Emirates’ second- biggest bank by assets. Domestic retail prices moved to a premium of about $5 an ounce from a small discount before the rout, said Schubert, who has traded the metal since 1979.
Largest Center
Dubai is the largest gold-trading center in the Middle East, according to the Dubai Gold & Jewellery Group, an industry body that includes manufacturers and retailers. Trade was worth about $56 billion in 2011, up from $6 billion in 2003, according to data on the Dubai Multi Commodities Centre website.
Gold jumped 4.2 percent last week, the most in 15 months, as coin demand from mints in the U.S. and Australia to the U.K. soared. The volume for the benchmark contract on the Shanghai Gold Exchange surged to a record last week, while premiums to secure supplies in India jumped to five times the level before the slump. China and India are the world’s largest buyers.
Consumers in Singapore and Hong Kong are paying premiums of about $3 an ounce, compared with about $2 just after the rout, according to Ng Cheng Thye, head of precious metals at Standard Merchant Bank (Asia) Ltd.
‘More Patient’
"Physical metal is still not available," Ng said by phone from Singapore. "The Chinese are on holiday these few days and at this level, the market might slow down a bit on the demand side. People are a little bit more patient now compared with two weeks ago, where everybody was rushing for physical metal."Chow Sang Sang Holdings International Ltd. said that jewelry sales at its 44 shops in Hong Kongmore than doubled in the two weeks ended April 27 from a year ago. In China, financial markets are closed through May 1.
"It’s not just a Middle East story, it’s all across the globe," said Panizzutti. "The fact that premiums are so high, it means that no one is making enough. We are producing 24 hours a day."
http://libertyblitzkrieg.com/2013/04/30/cme-president-on-gold-they-dont-want-certificates-they-want-the-real-product/
CME President on Gold: “They Don’t Want Certificates, They Want the Real Product”
JIM WILLIE: THE GOLD CLIMAX EVENT
First day notice for the active silver month:
| Silver |
Ounces
|
| Withdrawals from Dealers Inventory | nil |
| Withdrawals from Customer Inventory | 649,750.566( Delaware, Scotia) |
| Deposits to the Dealer Inventory | nil |
| Deposits to the Customer Inventory | 647,095.54 (CNT, Brinks) |
| No of oz served (contracts) | 1506 contracts ( 7,530,000 oz) |
| No of oz to be served (notices) | 1462 (7,330,000 oz) |
| Total monthly oz silver served (contracts) | 754 (3,7670,000 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 | 6,159,668.2 oz |
Today, we had good activity inside the silver vaults.
we had 0 dealer deposits and 0 dealer withdrawals.
We had 2 customer deposits:
i) Into CNT: 50,891.59 oz
ii) Into Brinks; 596,203.95
Total deposits: 647,095.54 oz
We had 2 customer withdrawals:
1) Out of Delaware: 49,051.566 oz
ii) Out of Scotia; 600,699.000 oz (another of those perfectly round withdrawals)
total customer withdrawal: 649,750.566 oz
We had 2 customer deposits:
i) Into CNT: 50,891.59 oz
ii) Into Brinks; 596,203.95
Total deposits: 647,095.54 oz
We had 2 customer withdrawals:
1) Out of Delaware: 49,051.566 oz
ii) Out of Scotia; 600,699.000 oz (another of those perfectly round withdrawals)
total customer withdrawal: 649,750.566 oz
we had 2 dandy adjustments:
i) Out of HSBC: 135,068.015 oz was adjusted out of the dealer and back into the customer account
ii) get a load of this biggy!!:
Out of JPMorgan, a monstrous 8,668,651.908 oz was adjusted out of the customer and back into the dealer account and probably ready to serve upon some of our longs.
i) Out of HSBC: 135,068.015 oz was adjusted out of the dealer and back into the customer account
ii) get a load of this biggy!!:
Out of JPMorgan, a monstrous 8,668,651.908 oz was adjusted out of the customer and back into the dealer account and probably ready to serve upon some of our longs.
Registered silver at : 45.945 million oz
total of all silver: 166.05 million oz.
The CME reported that we had a rather large 1506 notices filed for first day notice equal to 7,530,000 oz of silver for the active contract month of May. The total number of OI that stands tonight for silver equals 2972 and that is our first good shot at what will stand.
Thus the total number of silver ounces standing in this active delivery month of April is as follows:
1506 contracts x 5000 oz per contract (served) = 7,530,000 + 1462 contracts x 5000 oz = 7,330,000 oz ( to be served) = 14,860,000
Thus the total number of silver ounces standing in this active delivery month of April is as follows:
1506 contracts x 5000 oz per contract (served) = 7,530,000 + 1462 contracts x 5000 oz = 7,330,000 oz ( to be served) = 14,860,000
April 30.2013:
April 29.2013
Tonnes1,078.54
Ounces34,676,103.28
Value US$50.915 billion
April 29.2013
Tonnes1,080.64
Ounces34,743,798.37
Value US$50.963 billion
news and views......
Dear CIGAs,
Today legendary trader Jim Sinclair told King World News that despite the volatility in gold and silver, not only will any setbacks will be short-lived, but we are now looking at the very real possibility of a major short squeeze in the metals. Sinclair also spoke about what has just taken place in Cyprus, the Western media blackout of those events, and what it means for investors going forward. Below is what Sinclair, who was once called on by former Fed Chairman Paul Volcker to assist during a Wall Street crisis, had to say in this remarkable interview.
Eric King: “Jim, we will get to gold in just a minute, but first, what are you focused on in the aftermath of this latest development in Cyprus?”
Sinclair: “There has been a total blackout in the Western mainstream media regarding what just took place in Cyprus. Even where there was even scant reporting about Cyprus, they only reported approximately 1/3 of the amount of the assets that have effectively been stolen.
The takeaway I have, and the shock I have, is that the news is now so selective in the so-called free Western hemisphere….
Rose Murray West of the UK Telegraph on gold demand:
3:55PM BST 30 Apr 2013
Investment company Physical Gold said there were waiting lists of three weeks for some coins, and four to six weeks for gold bars. "Previously all would have been available within a few days," the company said.
The company said that it had seen a 50pc increase in enquiries about purchasing gold and a 35pc increase in sales, with people buying tax-free gold coins. "We are now starting to experience physical gold shortages," said Daniel Fisher, CEO of Physical Gold.
"In particular there are waiting times on some gold bars and a real difficulty in obtaining mixed year Sovereigns. "However, many clients are willing to 'do a deal' and wait for delivery as they want to secure the current price as they feel it will be higher in the near future."
Bill Murphy discussing the James turk commentary that I sent to you yesterday on Barrick. He should emphasis that Barrick must replace the silver sold from the Pascua Lama project to Silver Wheaton:
"On that note, James Turk did an interview with King World News yesterday which really caught my attention for a number of reasons. One of them had to do with Barrick’s Pascua- Lama operation in Chile…
The short position in both gold and silver is now so huge, it won't take much to push the shorts into a buying panic. I have been looking for possible triggers that could panic the shorts, and we got a hint last week of one possible event which may do this. Because of various problems, there have been news reports that Barrick is considering what to do with its huge Pascua-Lama deposit after a Chilean court ordered it to stop development work.
The project is already well behind schedule, with big cost overruns from its initial plan, but here's the important point: The market has been expecting that when production begins, the mine would produce 800,000 ounces of gold and 35 million ounces of silver annually. Those ounces will of course never materialize if development work remains suspended.
But also consider that according to its 31 March 2013 financial report, Barrick has hedged 65 million ounces of silver, which is 8% of the world's annual silver production. What is the bullion bank, who sold that hedge to Barrick, going to do if those 65 million ounces don't get mined and delivered to it?
What is Barrick going to do if the bullion bank forces it to deliver physical silver to close the hedge? What are the shorts in silver going to do when they realize that there is a potential time bomb here that could substantially reduce the near-term forecast of silver supply?
In other words, it is pure insanity to be short silver here, and for that matter, gold as well. Round two of the buying panic may be just around the corner when the paper shorts rush to the exits. They will learn the age-old and time-proven adage about the precious metals, namely, that it is easy to sell gold and silver in large quantities, but very, very difficult to buy in size."
Glenys Sim of Bloomberg discusses the huge gold rush. Premiums to the actual metal are rising as physical disappears!!
(courtesy Sim/Bloomberg)
Gold Rush From Dubai to Turkey Saps Supply as Premiums Jump
By Glenys Sim - Apr 30, 2013 8:26 AM ET
Dhiraj Singh/Bloomberg
Surging demand for gold from Dubai to Istanbul has pushed physical premiums in the region to levels not seen in years as the biggest price slump in three decades lures consumers, according to MKS (Switzerland) SA.
Premiums paid by wholesalers and bulk buyers in Dubai to secure a 1 kilogram bar of bullion are being quoted between $6 an ounce and $9 an ounce over the London cash price, said Frederic Panizzutti, global head of marketing and sales at the Swiss-based bullion refiner. That compares with about 50 cents before the rout, Panizzutti, also chief executive officer of MKS Precious Metals DMCC, said in an interview from Dubai.Gold fell to the lowest in more than two years this month on speculation that the global economy is recovering, unleashing a purchasing frenzy among coin and jewelry buyers from China to the U.S. Consumer demand for jewelry, bars and coins in Turkey and the Middle East represented about 9.4 percent of the global total last year, according to the World Gold Council. Bars have been cleared from display in the souks, according to Gerry Schubert, head of precious metals at Emirates NBD PJSC.
"Physical demand has been tremendous in a way I haven’t seen for a number of years," said Jeffrey Rhodes, global head of precious metals at INTL FCStone Inc., who’s worked in the industry for more than three decades. "The price collapse prompted a physical gold rush and the evidence of the extent of that is the prolonged period of high premiums that we’ve seen. Reports from the gold souks are that business is good," Rhodes said from Dubai.
Bear Market
Prices plunged 14 percent in the two sessions to April 15, the most since 1983, and reached a low of $1,321.95 an ounce on April 16. Since then, spot bullion has rebounded 11 percent to $1,469.54 today as the surge in physical demand offset record outflows from exchange-traded products. Gold is still lower in April, heading for the worst monthly loss since December 2011 amid a bear market.
In Turkey, the fourth-biggest gold consumer last year, bullion on the Istanbul Gold Exchange traded at premiums of as much as $25 an ounce over the London spot price, something that hasn’t happened in "a very long time, we’re talking years," said MKS’s Panizzutti."In the gold souk, you see some coins left over, but the investment bars are all gone from the windows," said Schubert at Dubai-based Emirates NBD, the United Arab Emirates’ second- biggest bank by assets. Domestic retail prices moved to a premium of about $5 an ounce from a small discount before the rout, said Schubert, who has traded the metal since 1979.
Largest Center
Dubai is the largest gold-trading center in the Middle East, according to the Dubai Gold & Jewellery Group, an industry body that includes manufacturers and retailers. Trade was worth about $56 billion in 2011, up from $6 billion in 2003, according to data on the Dubai Multi Commodities Centre website.
Gold jumped 4.2 percent last week, the most in 15 months, as coin demand from mints in the U.S. and Australia to the U.K. soared. The volume for the benchmark contract on the Shanghai Gold Exchange surged to a record last week, while premiums to secure supplies in India jumped to five times the level before the slump. China and India are the world’s largest buyers.
Consumers in Singapore and Hong Kong are paying premiums of about $3 an ounce, compared with about $2 just after the rout, according to Ng Cheng Thye, head of precious metals at Standard Merchant Bank (Asia) Ltd.
‘More Patient’
"Physical metal is still not available," Ng said by phone from Singapore. "The Chinese are on holiday these few days and at this level, the market might slow down a bit on the demand side. People are a little bit more patient now compared with two weeks ago, where everybody was rushing for physical metal."Chow Sang Sang Holdings International Ltd. said that jewelry sales at its 44 shops in Hong Kongmore than doubled in the two weeks ended April 27 from a year ago. In China, financial markets are closed through May 1.
"It’s not just a Middle East story, it’s all across the globe," said Panizzutti. "The fact that premiums are so high, it means that no one is making enough. We are producing 24 hours a day."
http://libertyblitzkrieg.com/2013/04/30/cme-president-on-gold-they-dont-want-certificates-they-want-the-real-product/
CME President on Gold: “They Don’t Want Certificates, They Want the Real Product”
JIM WILLIE: THE GOLD CLIMAX EVENT
Rose Murray West of the UK Telegraph on gold demand:
3:55PM BST 30 Apr 2013
0 Comments and 0 Reactions
Investment company Physical Gold said there were waiting lists of three weeks for some coins, and four to six weeks for gold bars. "Previously all would have been available within a few days," the company said.
The company said that it had seen a 50pc increase in enquiries about purchasing gold and a 35pc increase in sales, with people buying tax-free gold coins. "We are now starting to experience physical gold shortages," said Daniel Fisher, CEO of Physical Gold.
"In particular there are waiting times on some gold bars and a real difficulty in obtaining mixed year Sovereigns. "However, many clients are willing to 'do a deal' and wait for delivery as they want to secure the current price as they feel it will be higher in the near future."
Bill Murphy discussing the James turk commentary that I sent to you yesterday on Barrick. He should emphasis that Barrick must replace the silver sold from the Pascua Lama project to Silver Wheaton:
The short position in both gold and silver is now so huge, it won't take much to push the shorts into a buying panic. I have been looking for possible triggers that could panic the shorts, and we got a hint last week of one possible event which may do this. Because of various problems, there have been news reports that Barrick is considering what to do with its huge Pascua-Lama deposit after a Chilean court ordered it to stop development work.
The project is already well behind schedule, with big cost overruns from its initial plan, but here's the important point: The market has been expecting that when production begins, the mine would produce 800,000 ounces of gold and 35 million ounces of silver annually. Those ounces will of course never materialize if development work remains suspended.
But also consider that according to its 31 March 2013 financial report, Barrick has hedged 65 million ounces of silver, which is 8% of the world's annual silver production. What is the bullion bank, who sold that hedge to Barrick, going to do if those 65 million ounces don't get mined and delivered to it?
What is Barrick going to do if the bullion bank forces it to deliver physical silver to close the hedge? What are the shorts in silver going to do when they realize that there is a potential time bomb here that could substantially reduce the near-term forecast of silver supply?
In other words, it is pure insanity to be short silver here, and for that matter, gold as well. Round two of the buying panic may be just around the corner when the paper shorts rush to the exits. They will learn the age-old and time-proven adage about the precious metals, namely, that it is easy to sell gold and silver in large quantities, but very, very difficult to buy in size."
Glenys Sim of Bloomberg discusses the huge gold rush. Premiums to the actual metal are rising as physical disappears!!
(courtesy Sim/Bloomberg)
Gold Rush From Dubai to Turkey Saps Supply as Premiums Jump
By Glenys Sim - Apr 30, 2013 8:26 AM ET
Dhiraj Singh/Bloomberg
Surging demand for gold from Dubai to Istanbul has pushed physical premiums in the region to levels not seen in years as the biggest price slump in three decades lures consumers, according to MKS (Switzerland) SA.
Premiums paid by wholesalers and bulk buyers in Dubai to secure a 1 kilogram bar of bullion are being quoted between $6 an ounce and $9 an ounce over the London cash price, said Frederic Panizzutti, global head of marketing and sales at the Swiss-based bullion refiner. That compares with about 50 cents before the rout, Panizzutti, also chief executive officer of MKS Precious Metals DMCC, said in an interview from Dubai.Gold fell to the lowest in more than two years this month on speculation that the global economy is recovering, unleashing a purchasing frenzy among coin and jewelry buyers from China to the U.S. Consumer demand for jewelry, bars and coins in Turkey and the Middle East represented about 9.4 percent of the global total last year, according to the World Gold Council. Bars have been cleared from display in the souks, according to Gerry Schubert, head of precious metals at Emirates NBD PJSC.
"Physical demand has been tremendous in a way I haven’t seen for a number of years," said Jeffrey Rhodes, global head of precious metals at INTL FCStone Inc., who’s worked in the industry for more than three decades. "The price collapse prompted a physical gold rush and the evidence of the extent of that is the prolonged period of high premiums that we’ve seen. Reports from the gold souks are that business is good," Rhodes said from Dubai.
Bear Market
Prices plunged 14 percent in the two sessions to April 15, the most since 1983, and reached a low of $1,321.95 an ounce on April 16. Since then, spot bullion has rebounded 11 percent to $1,469.54 today as the surge in physical demand offset record outflows from exchange-traded products. Gold is still lower in April, heading for the worst monthly loss since December 2011 amid a bear market.
In Turkey, the fourth-biggest gold consumer last year, bullion on the Istanbul Gold Exchange traded at premiums of as much as $25 an ounce over the London spot price, something that hasn’t happened in "a very long time, we’re talking years," said MKS’s Panizzutti."In the gold souk, you see some coins left over, but the investment bars are all gone from the windows," said Schubert at Dubai-based Emirates NBD, the United Arab Emirates’ second- biggest bank by assets. Domestic retail prices moved to a premium of about $5 an ounce from a small discount before the rout, said Schubert, who has traded the metal since 1979.
Largest Center
Dubai is the largest gold-trading center in the Middle East, according to the Dubai Gold & Jewellery Group, an industry body that includes manufacturers and retailers. Trade was worth about $56 billion in 2011, up from $6 billion in 2003, according to data on the Dubai Multi Commodities Centre website.
Gold jumped 4.2 percent last week, the most in 15 months, as coin demand from mints in the U.S. and Australia to the U.K. soared. The volume for the benchmark contract on the Shanghai Gold Exchange surged to a record last week, while premiums to secure supplies in India jumped to five times the level before the slump. China and India are the world’s largest buyers.
Consumers in Singapore and Hong Kong are paying premiums of about $3 an ounce, compared with about $2 just after the rout, according to Ng Cheng Thye, head of precious metals at Standard Merchant Bank (Asia) Ltd.
‘More Patient’
"Physical metal is still not available," Ng said by phone from Singapore. "The Chinese are on holiday these few days and at this level, the market might slow down a bit on the demand side. People are a little bit more patient now compared with two weeks ago, where everybody was rushing for physical metal."Chow Sang Sang Holdings International Ltd. said that jewelry sales at its 44 shops in Hong Kongmore than doubled in the two weeks ended April 27 from a year ago. In China, financial markets are closed through May 1.
"It’s not just a Middle East story, it’s all across the globe," said Panizzutti. "The fact that premiums are so high, it means that no one is making enough. We are producing 24 hours a day."
http://libertyblitzkrieg.com/2013/04/30/cme-president-on-gold-they-dont-want-certificates-they-want-the-real-product/
CME President on Gold: “They Don’t Want Certificates, They Want the Real Product”
What’s interesting about gold, when we had that big break two weeks ago we saw all the gold stocks trade down significantly, we saw all the gold products trade down significantly, but one thing that did not trade down, was gold coins, tangible real gold. That’s going to show you, people don’t want certificates, they don’t want anything else. They want the real product.
- Terrence Duffy, President and Executive Chairman of CME Group Inc,. on Bloomberg TV yesterday (April 29, 2013)
I’m actually still in a state of shock that the head of the CME Group would make such an observation and in such blunt terms. I mean the guy admits that volume on his exchanges suck, yet basically claims paper gold (one of their marquee products) is becoming irrelevant. In my mind there are two likely explanations for this. 1) This is how he has started to feel personally and he is loading up on physical gold rather than his company’s paper products and would like some cover if that is ever unearthed. 2) This is what people close to the gold market are telling him and he’d rather make it clear he understands that paper is paper and gold is gold and that there is a big difference. So “caveat emptor” if you are hanging around the COMEX.
