Gold and Silver held hostage not just on May 20 , 2013 but held hostage generally .... - another day of manipulations for gold and silver ( although today , we saw a massive reversal from Sunday night lows for silver close to 20 and gold at around 1338 before crossing 23 and 1400 respectively ! What will the GLD ETF , SLV ETF and Comex gold and silver physical inventories look like on Tuesday ? Harvey Organ gold and silver report for May 20 , 2013 , Data , News and views of the day !

http://silverdoctors.com/gold-silver-being-held-hostage-in-the-ultimate-banking-crisis/#more-26800

GOLD & SILVER BEING HELD HOSTAGE IN THE ULTIMATE BANKING CRISIS

MAY 20, 2013 BY THE DOC 4 COMMENTS

This is all about a banking crises!  Gold and silver are being held as hostages.
The central bankers have their overly-rehypothecated teat caught in the wringer of world-wide demand for physical gold, and they cannot get it out.  Their only recourse has been to drive down, crush would be a better description, the fiat [paper] prices of gold and silver so they can “buy” time to acquire whatever physical available to cover their cheating ways.
Ironically, while these financial fiat-wizards are in a panic mode, of sorts, they are able to buy physical at somewhat lower prices and destroy the ability to take delivery for  those if-you-do-not-hold-it-you-do-not-own-it paper holders upon demand.  “Sorry, but you can only have paper fiat.  Didn’t you read the fine print?”

As we have been saying since 35 silver, 1800 gold; 30 dollar silver, 1700 gold; 25 silver, 1500 gold, etc, the issue is notprice, rather, and most importantly, it is all about having possession of the physical for which there is an insatiable demand.  We have been saying this for many months:  keep buying physical gold and silver regardless of price.  At some point in time, it may not be available to buy, except at substantially higher prices, or not at all.  
Better to be the proverbial year early than a day late.

Submitted by Edge Trader Plus:

We are going to start off with one of the most eye-popping pictures of just one central bank, the privately owned corporate Federal Reserve, and its purported gold holding.

Look at the chart below to get an idea of the magnitude of the outstanding debt that will never be repaid!   We do not believe the gold holding claimed is accurate, [if any gold alleged to be held exists, at all], but we do believe the debt portion is accurately depicted.  In fact, it has grown larger since December 2012.

Occasionally, we drop a bit of history that most people either ignore  or simply do not believe, but this one cannot be conveniently shunted aside.
One of the provisions in the FEDERAL Constitution, the 14th Amendment, [the original, organic Constitution had only 10 provisions, aka The Bill Of Rights], a hornet’s nest for an unsuspecting public, we our focus in on the one germane to the graph below.  It is found in Section 4:

The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.

Now, who do you suppose created the public debt by loaning out, first money, then fiat, and now just computer entries?
Who do you suppose is responsible for it?
The question few people think to ask is, Who had it inserted?  The NWO works in mysterious ways, but always lethal to the interests of the remaining 99.5%.

Now, look below at the chart to get an idea of the magnitude of the outstanding debt that will never be repaid!   We do not believe the gold holding claimed is accurate, [if any gold alleged to be held exists, at all], but we do believe the debt portion is accurately depicted.  In fact, it has grown larger since December 2012.

This is all about a banking crises!  Gold and silver are being held as hostages.

The central bankers have their overly-rehypothecated  teat caught in the wringer of world-
wide demand for physical gold, and they cannot get it out.  Their only recourse has been
to drive down, crush would be a better description, the fiat [paper] prices of gold and silver
so they can “buy” time to acquire whatever physical available to cover their cheating  ways.

Ironically, while these financial fiat-wizards are in a panic mode, of sorts, they are able to
buy physical at somewhat lower prices and destroy the ability to take delivery for  those if-
you-do-not-hold-it-you-do-not-own-it paper holders upon demand.  “Sorry, but you can
only have paper fiat.  Didn’t you read the fine print?”

As we have been saying since 35 silver, 1800 gold; 30 dollar silver, 1700 gold; 25 silver,
1500 gold, etc, the issue is not price, rather, and most importantly, it is all about having
possession of the physical for which there is an insatiable demand.  We have been saying
this for many months:  keep buying physical gold and silver regardless of price.  At some
point in time, it may not be available to buy, except at substantially higher prices, or not
at all.  Better to be the proverbial year early than a day late.

Over the last several years, gold and silver have steadily been moving into stronger hands
in its flight from greedy, cavalier, and arrogant central bankers who never saw this
coming.  Why not?  They have been habitual drinkers of their own cool-aid.

Who comprises the stronger hands?  Well, everyone knows about China, Russia, India,
Turkey, etc, but now there are the not-previously-considered-as-consequential man and
woman on the street.  Compelling, unprecedented demand has surfaced on the streets of
so many countries around the world with people buying ounces and kilos, as they can
afford, and these little buyers are no less adamant in their desire to own and hold physical
gold and silver as are the larger Eastern countries.

However, the numerous stories about shortages of 1 ounce gold or silver coins/bars, on up
to kilo size, people waiting in line for hours to buy what they can, etc,  may make for good
press and seem like a “feel good” story, but in the battle for supremacy of control, the long
lines and unprecedented buying have done little to nothing in preventing the fall in paper
prices of gold and silver.

You think the central bankers are caught in a corner with no gold?  Well, yes, but that is
not the story.  If they cannot deliver gold or silver, they will find another way out.  You
have seen their strategy:  MF Global, Cyprus, and more on the drawing board, coming
soon to your own [any] country.

Under normal circumstances, when supply is short and demand is strong and growing, the
price of such a commodity, good, or service will increase.  Just the opposite is happening
in the gold and silver markets.  For right now, the central bankers are defying the natural
law of supply and demand, and it is working.  Why is it working?  People are not objecting!
People are passively taking whatever the NWO/central bankers dish out.

What has been the fall out for the brazen theft of segregated accounts at MF Global?
Nothing!  What has been the fall out of Cypriot account holders who saw their bank and
savings accounts held hostage by the outside European Commission, an organization that
has no lawful standing in that sovereign country?  A lot of pissing and moaning, but
ultimately, acceptance.  Where is the outrage, the intolerance for such blatant theft?

This is all about a banking crises.  Central bankers view their customers as central bank
private ATMs, taking customer money via service fees, late charges, withdrawal fees for
accounts that want to withdraw their own money.  How crazy is that?  Yet, people accept
it.

Now, the uber-wealthy are getting a taste of the “commoner’s” medicine.  They are finding
out that their allocated gold accounts are not as allocated as they thought.  Just how not
allocated?  How about, “The gold ain’t there, anymore.”  We are talking about hundreds of
millions of dollars in [un] allocated gold accounts in Switzerland.  This is more of a hush-
hush situation, but ABN Amro’s [default] notice to its account holders that it will no longer
deliver gold in settlement anymore, is the tip of the golden iceberg.

That first chart, above, should be seared into your mind.  It is a graphic representation of
how supply and demand have been distorted.  Look at how much money was created, and
it may be a worse picture for European central banks and countries.  One does not have to
“suppose” some of that money is going to be used on the purchase of gold and silver, for it
already is.  Look at how much money is out there, and then think about how little is the
supply of gold and silver to satisfy the growing demand.

Should you be buying gold and silver at any price?  If that chart does not provide you with
the answer, ask a 5th grader to explain it.  Price is not the issue.  Availability is!  We cannot
repeat this enough.

The caveat is this: central bankers hold all the power cards, and they will play them, at all
costs, and the costs will be yours to bear, Cyprus being a crystal clear example of what to
expect.  In all probability, most expectations will be underestimated.

The bankers have fouled up the financial system, and now they want the people to pay
for their egregious financial errors.  It is not enough that bankers have been stealing
homes to which they are not legally entitled to do, but the government fosters it.  It is not
enough that bankers have received trillions of dollars in bail-out money, to cover their
losses.  The bankers have been paid several times over, including insurance for losses
claimed, even though no actual losses may have existed.

“You must pay your fair share,” is the reasoning given for bank accounts stolen, and now
talk of a wealth tax to help keep the system afloat.  The banks are too big to fail.  What?!!
Who created the loans and took the risk of loss?  The bankers.  Let them fail!  Let the
system fail!  People will survive.  The only casualties will be the bankers, the “system.”
It is all about protecting the “system,” and it has nothing to do with protecting people.
The people are there to be fleeced, and that is what is going on.

If you choose to stay in the banking system, expect to take losses on anything held in a
bank.  Read that sentence as many times as it takes to have it sink in.

What have the bankers been hell-bent on destroying and discrediting?  Gold and silver.

What do Mussolini, Hitler, and Roosevelt have in common?  They each confiscated the
gold holdings of their citizens, leaving them with no wealth and dependent upon the
STATE.  It is always about the system.  Follow the money.

The New World Order uses central bankers to control all governments.  Who runs the
governments of all Western-bloc countries?  Ex-central bankers.  Where is their
allegiance?  So many questions, almost all having the same answer.

Those in power will destroy you financially, in order for them to survive and keep
control.  Governments produce nothing.  Every dollar spent has to come from the
private sector.  The parasite is consuming the host.  Be prepared.

The Quarterly chart is why we say the true story is all about time.  Do not focus on how
much demand there is for gold and silver, at any level, be it country or individual.  The
demand side of the equation is known, and better known by the central bankers than
most.  It is the supply side that matters, and the supply side is comprised of factions from
the NWO, and they will steal whatever you have to survive.  Based on the [non] reactions
of those who have been stolen from, they are taking it lying down, and the NWO sees it.
The enemy has time on its side, and it will be used to wear people down and become
disillusioned owing gold and silver.  Keep the first chart in mind and stay focused.

The chart comments can be viewed by clicking on the chart, a few time, but this does not
work on some sites that carry our article, so we will reproduce the chart comments: [The
comments pertain to the paper market.]

A Qrtly chart is rarely looked at by traders.  Its effect is controlling over lower time
frames.  The reason for stating that a gold recovery could take longer than most
expect is illustrated here.

The wider range bar from 3rd Qtr 2011, with dashed lines at the high and low, has
been decisively broken to the downside by another fairly wide range bar lower.  The
ease of downward movement is market recognition that sellers are in control.  The
current Qtr does not end until 30 June, so the location of the close will provide very
important information and may provide a better understanding of the time factor
for recovery.

A weak close would tell us that it may take a few years for gold to rally even just to
the 1800 level.  A look at the monthly chart gives an example.

The chart comments aptly describe how the location of the close on a bar lets us know who
won between buyers and sellers for that time frame, and it can provide clues as to what to
expect in the next bar[s].

Because these charts reflect the paper COMEX prices, which ignore true demand, the
conclusions are based upon the distortion of the supply/demand relationship.

http://harveyorgan.blogspot.com/2013/05/huge-raid-foiledgold-and-silver.html

Monday, May 20, 2013

Huge raid foiled/Gold and silver advance/Gold inventory at GLD falls again/Hong Kong Mercantile Exchange closes due to lack of gold/Bill Holter commentaries/

Gold closed down $22.20 to $1384.30 (comex closing time).  Silver rose by 23 cents to $22.57  (comex closing time)

In the access market at 5 pm gold and silver are the following :

gold: $1394.70.
silver: $22.92

The bankers showed up very early Sunday night as silver was whacked for an immediate loss of over $ 2.00 to $20.24 and gold was immediately whacked down to $1,338.00. You will recall that the last time we had a wicked collapse on Friday the 12th of April, the following Monday also had a continuation of that Friday raid, establishing capitulation which then allowed  gold and silver to rise for the next 40 days.  The gangsters no doubt were ready again to apply their wares Sunday night... to cause a severe bloodbath and force many longs in gold/silver and many shareholders of gold/equity shares to pitch their hard earned assets. This is the first time ever that I can recall that we had a massive hit on gold and silver early on a Sunday night and then we proceeded to have a global gold/silver outside day reversal.  (For those newcomers, an outside day reversal is a large reverse in price in mid stream. An outside day reversal on the positive side is when gold/silver are smashed in the early part of the trading session and then climb to a clear positive on the day's end.)

We had a strong close in gold and silver at the Comex. Also the gold/silver equity shares after languishing this afternoon closed strong at 4 pm. The bankers however never ever allow gold and silver to trade higher after an outside day reversal.  They will try and regroup and then attack again tomorrow.  If that fails again, we can begin to prepare for the bankers funeral. The physical gold market just overpowered the paper market.

 (courtesy zero hedge)

Gold And Silver Inverse Baumgartner'd

Submitted by Tyler Durden on 05/20/2013 12:15 -0400

• Precious Metals

UPDATE 1: Chatter of a potential US downgrade from Moody's is being blamed (but that news out hours ago)

UPDATE 2: Silver futures trading volume 82% higher than 100-day average

While the mainstream media will likely be loathed to mention it, gold and silver are surging higher. Gold has retested $1400 and Silver $23 on no news... so it seems the demand for 'cheaper' precious metals was enough to warrant a 4.6% rally off overnight lows in gold and 12.5% in silver amid heavy volume in futures markets...

Charts: Bloomberg  (courtesy zero hedge)

At the Comex, the open interest in silver surprisingly rose by 669 contracts to 146,940 contracts despite silver's fall in price on Friday by 30 cents.  The silver OI is  holding firm at elevated levels . The open interest on the gold contract  rose  by a whopping 6688 contracts to 451,683 . With gold's big fall in price on Friday, one would have thought that the OI would have contracted big time. Instead it rose by a large margin. The gold deliveries for May rose a bit today  to  9.421 tonnes and this is an off month for gold.  In silver we continue to see the total number of ounces standing rise above the quantity that stood on first day notice. The number of silver ounces, standing for delivery in May rose a tiny 45,000 oz now stands at 17.120 million oz. ( On first day notice:  14.860 million oz.)


Again, at the Comex,  gold is departing as investors are frightened to death of a confiscation similar to what happened at MFGlobal or Refco. Tonight, the Comex registered or dealer gold remains at 1.668 million oz or 51.88 tonnes.  The total of all gold at the comex fell slightly but still well below the 8 million oz at 7.934 million oz or 246.8 tonnes of gold.

The GLD  reported another huge loss in gold inventory of 6.91 tonnes. The SLV inventory of silver remained constant. The game will end when the last ounce of gold from the GLD leaves London's shores  for Chinese waters.

Of course the big story today is the huge  reversal we had with respect to gold and silver as the bankers plan for capitulation failed.

Today we have stories on the closing of the Hong Kong Mercantile Exchange due to lack of gold supplies.

South Africa's miners are set to strike again seeking wage increases of 60%.

The Indian Finance Minister is now begging his people to stop buying gold.

Mark Grant, delivers a commentary on the plight of France.

In USA news, we have stories on the North American sector of Caterpillar which is showing a drop in sales.  Also we have reports on  the Chicago National Activity Index which measures manufacturing across the nation. The index revealed a  second straight negative reading.

I am also delighted to bring to you, commentaries from legendary Bill Holter of Miles Franklin.




We will go over these and other stories but first.....................

Let us now head over to the comex and assess trading over there today.
Here are the details:


The total gold comex open interest rose by a lofty 6688 contracts  from 444,995 up to 451,683 with gold falling by $22.20 on Friday. One would have thought that the OI would have contracted big time as positions would have liquidated at the lower gold price.    The front non active delivery month of May saw its OI rise by 1 contract  up to 1068.  However we had 9 delivery notice filed on Friday.  Thus we  gained 10 contracts or 1,000 additional gold ounces will stand for delivery in May.   The next active contract month is June and here the OI rose by 462 contracts to 191,516 as most of these paper players rolled into August. June is the second biggest delivery month in gold's calender and first day notice is less than 2 weeks away.  The estimated volume today was good at 257,007 contracts.    The confirmed volume on Friday was also good at 265,200 contracts.



The total silver Comex OI surprisingly rose by only 669  contracts from 146,271 up to 146,940  with  silver's fall in price of 30 cents on Thursday.  The front active silver delivery month of May saw it's OI fall by 136 contracts down to 363.  We had 127 delivery notices filed on Friday so we gained 9 contracts or  45,000 additional  oz will   stand for delivery in May.  The next  delivery month for silver is June and here the OI fell by 8 contracts to stand at 378. The next big active contract month is July and here the OI rose  by only 1192 contracts to rest tonight at 81,313.   The estimated volume today was humongous, coming in at 87,539 contracts.  The confirmed volume on Friday was good at  46,930.

Comex gold/May contract month:

May 20/2013

Gold	Ounces
Withdrawals from Dealers Inventory in oz	nil
Withdrawals from Customer Inventory in oz	32,001.78 (Scotia)
Deposits to the Dealer Inventory in oz	nil
Deposits to the Customer Inventory, in oz	nil
No of oz served (contracts) today	0 (nil  oz)
No of oz to be served (notices)	1068 (106,800)
Total monthly oz gold served (contracts) so far this month	1961  (196,100)
Total accumulative withdrawal of gold from the Dealers inventory this month	10,656.61
Total accumulative withdrawal of gold from the Customer inventory this month	634,967.78 oz

We had fair activity at the gold vaults.

The dealer had 0 deposits and 0  dealer withdrawals.

We had 0 customer deposit today:









total customer deposit: nil  oz



We had 1 customer withdrawals today:


i Out of Scotia:  32,001.78 oz

total customer withdrawals:  32,001.78

We had 0   adjustments 

The JPMorgan customer vault remains at 297,426.75  oz today or 9.25 tonnes
as there were no transactions

Tonight the dealer inventory remains tonight at a low of 1.668 million oz (51.88) tonnes of gold. The total of all gold falls again at the comex resting tonight at 7.935 million oz or 246.80 tonnes.

The CME reported that we had 0 notices filed today for nil  oz of gold.
To calculate the quantity of gold ounces that will stand, I take the OI standing for May  (1068) and subtract out today's notices (0) which leaves us with 1068 notices or 105,800 oz left to be served upon our longs. 

Thus  we have the following gold ounces standing for metal in May:

1961 contracts x 100 oz per contract  or  196,100 oz (served)  +  1068 notices or 106,800 oz (to be served upon)  =  302,900  oz or 9.42 tonnes of gold.

This is extremely high for a non active month.  We  gained 1,000 additional gold ounces standing for the  May comex gold contract today.
It is also interesting that the USA produces around 20 tonnes of gold per month
and thus the amount standing for gold this month represents  47% of that total production.


The big June delivery month will surely be exciting to watch judging by the huge demand for gold in May. We will also see if the boys have any trouble servicing the last 1,068 contracts in the May delivery month and as well we watch what happens with JPMorgan with respect to its customer gold.  It remains now at 9.25 tonnes of gold. The entire comex dealer gold (registered gold) closed at its nadir at 1.668 million oz.(51.88 tonnes)

end

Silver:

May 20.2013:  May silver: 

Silver	Ounces
Withdrawals from Dealers Inventory	149,523.53 (CNT,Scotia)
Withdrawals from Customer Inventory	61,912.30 oz (Delaware,Scotia)
Deposits to the Dealer Inventory	nil
Deposits to the Customer Inventory	1,260,558,74 (Brinks,CNT,Scotia)
No of oz served (contracts)	157 (785,000)
No of oz to be served (notices)	206  (1,030,000 oz)
Total monthly oz silver served (contracts)	3218  (16,090,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month	903,273.57 oz
Total accumulative withdrawal of silver from the Customer inventory this month	2,900,982.5  oz

Today, we  had good activity  inside the silver vaults.

 we had 0 dealer deposits and 2  dealer withdrawals.

i) Out of CNT: 109,903.30
ii) Out of Scotia:  39,620.20

total dealer withdrawal:  149,523.53 oz

We had 3 customer deposits:

i) Into Brinks:  39,620.20 oz
ii) Into CNT:  599,452.59  oz
iii) Into Scotia:  621,485.95 oz


total customer deposit;  1,260,558.74  oz


We had 2 customer withdrawals:

i) Out of Scotia:  60,054.40 oz
ii) Out of Delaware:  1,857.90 oz




total customer withdrawals: 61,912.30 oz 
  

we had 0   adjustments  today

Registered silver  at :  41.172 million oz

total of all silver:  165.069 million oz.

The CME reported that we had 157 notices filed for 785,000 oz. We have a total of 3,218 notices filed so far this month for 16,090,000 oz.  To calculate the number of ounces that will stand in silver, I take the OI standing for May (363) and subtract out today's notices (157) which leaves us with 206 notices or 1,030,000 oz left to be served upon our longs. 
  
Thus the total number of silver ounces standing in this  active delivery month of May is as follows:

3218 contracts x 5000 oz per contract (served) = 16,090,000 +  206 contracts x 5000 oz =  1,030,000 oz ( to be served)  =  17,120,000 oz.

we gained  45,000 oz of silver standing for May today. The total standing for silver is still superb for May.

The total amount standing for May in silver represents 50.9% of annual silver production from the USA

GLD price action for the period of 5/14 through 5/20 - GLD ETF physical inventory now stands at 1031.5  tons......

May 20.2013:


Tonnes

1,031.50

Ounces33,163,669.76

Value US$44.913   billion

May 17.2013: 

Tonnes1,038.41

Ounces33,386,040.80

Value US$45.683  billion

May 16.2013:

Tonnes1,041.42

Ounces33,482,727.36

Value US$46.226   billlion

May 15.2013:

Tonnes1,047.13

Ounces33,666,434.30

Value US$47.457  billion

may 14.2013:

Tonnes1,051.65

Ounces33,811,468.47

Value US$48.465  billion

selected news and views.......

(courtesy Monday's commentary/Bill Holter/Miles Franklin)

How much Gold do they really have?

  "How much Gold do they really have?"  This is a question which is asked all the time regarding the ETF's and of inventories such as the COMEX and in London.  Of course the real hardcore whack jobs ask even more "conspiratorial" question like how much Gold is in Ft. Knox?  A logical question mind you since there has been no audit since 1956 but "what's not to trust?".  You see, no matter where you look when it pertains to Gold, the "motive" to lie is off the charts.  So, how much Gold do they really have?...the Chinese that is.  And why are the numbers and reports so vague and not often reported? 

  And yes, THEY also have reason to hide the true facts and to cloak what they have really accumulated but obviously for different reasons.  China is a mirror image of the West, while the West wants you to believe that they have vaults filled to the brim and bursting at the doors, China cry's "poor".  They claim to have 1,054 tons of Gold.  They have much MUCH more and I'll talk about that in a minute.  Another 180 degree opposite between the West and China is that here in the West we are told that Gold is "a barbaric relic".  It is said to be volatile, scary, in a bubble and all sorts of other negatives to keep the populace away.  And in China?  They are encouraging their people to buy.  On a side note, while growing up in the 1960's I never could have imagined a situation where the Chinese or Russian governments would promote something good for their people while the U.S. did the opposite, my what a changed world we live in.

  So China says that they have 1,054 tons of Gold, not a huge amount but it does put them in the top 10.  They produce 200 tons or so internally from their own mines and that supply never, NEVER gets exported, they KEEP ALL PRODUCTION and have done so for years.  Over just the last 10 years even assuming that in earlier years they didn't produce 200 tons, they must have at least accumulated 1,500 tons.  On the import side, they have imported nearly 1,800 tons just over the last 2 years alone...so what's up with this "1,054 ton" number?  This cannot be, they have without a single doubt in my mind well over 3,000 tons and this number comes from simple connect the dots and 3rd grade addition.

  But why would they "lie"?  It doesn't make sense to "cry poor" does it?  Well, if you think like the Chinese it makes perfect sense.  They are not a "flashy" society by nature and are not ones to boast.  If you are accumulating something then why would you do anything to push the price up in the middle of your operation?  If you knew (because you have the financial muscle and your finger on the pulse to see it) that the Gold market supply and demand situation was quite fragile, would you do anything to spook the market higher?  If you knew that your opponent (the West) had a vested interest in keeping the price of Gold down yet could slowly deliver real product over time, wouldn't you "carry your opponent a few rounds"?  Or as long as they kept delivering?  If your goal was to clean up and accumulate as much Gold as possible you would do NOTHING to spook the herd and cause short covering or a run on inventories..."never" until you have seen the bottom of the barrel that is!

  It is sad to say but the communists like Mao were "right".  They said long ago that "fiat" was our Achilles heel and would lead to a financial implosion.  While we "partied" they "stacked".  They have "stacked" metal for years now and recently done it with with income from the largest trade surplus in all of history.  In my gut I know that they have over 5,000 tons of Gold and if pushed I would bet that they have over 10,000 tons.  "Someone" was buying in the 80's, 90's and 00's as western central banks gave away metal at laughable prices.  "Someone" was on the other side of the trades, certainly it was not China alone but I believe that they have been there quietly buying for far longer than (m)any of us suspect.  Do not be surprised to see a new BRIC "trade settlement currency" introduced at any time now and with zero advance notice.  By the way, this new currency will backed by more Gold than they have let on to up to this point. 

  Briefly changing gears, I watched the open of the precious metals last night with Gold down $25 and Silver down $2.00+.....it only took 4 minutes for this smash to occur.  I had an e-mail back and forth with Harvey Organ (he testified for the good guys at the CFTC hearing 2 years ago) and I suggested that today was the perfect setup fo a reversal day.  So far so good, Gold has turned and is up $7 while Silver is finally green by 4 cents.  We will see how the day goes from here but any momentum from this point could turn into a stampede which traps the shorts...not to mention adding some fire under those ordering physical AND requesting deliveries from metal bought years ago and not delivered.  Maybe this really is the "bottom of the barrel"?  Regards,  Bill H.

Sunday, May 19, 2013

Hong Kong Mercantile Exchange (Commodities: Gold Silver) is surrendering all metal trades and will settle in cash. Defaulted! No Gold or Silver to be given!

This is Super Huge news in my opinion!

The Hong Kong Mercantile Exchange, which is the gold and silver commodities trading house in Hong Kong is immediately stopping/discontinuing and will be settling all gold and silver trades in cash that are in house at this time.  Besides that, they will determine what amount/price they will settle the trades/contracts at.

This is the exchange that began trading gold and silver in 2011 for the Pacific areas.  This is the one we had all hoped would break the gold and silver manipulation.  It seems the manipulation and physical amounts, broke them and they are not able to provide the physical.

On May 18, 2011, HKMEx formally began trading with a US Dollar gold futures contract. ^[9]In an interview with Reuters, Helmig said it plans to launch gold and silver futures contracts denominated in renminbi. He also said HKMEx will follow precious metals products with contracts in base metals, and then energy and agriculture.^[10] On July 22, 2011, the exchange launched a second product, a US Dollar silver futures contract.^[11]As of 5pm on February 13, 2012 trading on HKMEx’s gold and silver futures reached 1,003,210 contracts, representing total turnover of over US$50 billion (around HK$390 billion).^[12] Trading on the exchange's US-dollar gold futures for the first time surpassed the 10,000 contract mark on June 4, 2012.

You have to wonder if people in  Asia were demanding the physical metals, compared to the paper as the Comex people are happy with.   It seems to me they ran out of physical and can no longer operate with physical gold and silver as a commodity.

They are using the excuse of commodity trading not providing enough money for them.  But lets face it.  The fact that gold and silver have been hit super hard the last couple of months and the fact that the Asian's have been buying all the physical they can get their hands on..... doesn't leave much to the imagination of what the truth is.

It seems we now have an official Default of an exchange for gold and silver!   When will the Comex put something out like this?

It will reapply later to trade gold and silver again with the Renminbi, but is ceasing all trading immediately.

There is no physical metals to be had from the exchange for anyone who put trades on it.

Media Release from Exchange:

HKMEx Voluntarily Surrenders Authorisation To Provide Automated Trading Services

HONG KONG, 18 May, 2013  – The Hong Kong Mercantile Exchange (HKMEx) announces today it has decided to voluntarily surrender the authorisation to provide automated trading services (“ATS”) granted by the Securities and Futures Commission (“the SFC”).

With immediate effect, no new orders may be placed and all open positions will be financially settled at the settlement price determined by HKMEx and its designated clearinghouse.

The voluntary surrender decision was made to enable the Exchange to re-align its strategy with the new industry environment since its trading revenues have not been sufficient to support operating expenses and, as a result, its inability to meet the required regulatory financial conditions.
While trading on the Exchange will discontinue, HKMEx as an organisation will continue to operate with its existing staff, and will focus on developing new products including renminbi-denominated precious and base metals contracts that will better meet customer needs. It also intends to re-apply at an appropriate time for an ATS authorization to launch these products with stronger and more effective market maker programs.

“The favourable conditions under which HKMEx was founded have not changed. Global commodity demand continues to shift towards Asia as the region undergoes sustained growth, presenting great opportunities that we will continue to exploit,” said Barry Cheung, Chairman of HKMEx. “Our priorities now are to protect members’ interests by ensuring effective closing of open positions while strengthening our shareholding base and developing new products that play to our distinctive strengths.”

In closing out the open positions, the Exchange has developed a plan in consultation with the SFC to ensure the process is orderly and that investors are well informed of the matter. The Exchange will disseminate settlement prices to its members the morning of next Monday, 20 May 2013. Investors may contact the Exchange’s hotline at +852 3900 9898 for any assistance or inquiry.

Barron's gets suspicious about gold market manipulation

Submitted by cpowell on Sun, 2013-05-19 03:41. Section: Daily Dispatches

This Time Gold Bugs May Have a Point

By Randall W. Forsyth
Barron's
Saturday, May 18, 2013

http://online.barrons.com/article/SB500014240527487045515045784810437648...

Stocks are for lovers and gold is for haters. That's how one especially supercilious strategist (is there another kind?) sizes up the two markets, and it's clear he's been feeling the love lately. Stocks are at new highs in the U.S. and many other venues, while Japan's market is strapped to a rocket ship, all propelled by money fresh off the printing presses of the world's central banks.

Fans of the yellow metal, meanwhile, are feeling rather battered and bruised these days from the beating they've taken over the past month or so and, indeed, for more than a year and a half. Given all the quantitative easing -- which is how money printing is referred to in polite company these days—one would think gold would be getting a little love (or a facsimile of the same that cash can sometimes provide.)

It's not just the likes of the Dow industrials or the S&P 500 at record levels; money is sending all manner of stuff soaring. Last week's auctions at Christie's in New York marked the beginning of "a new era" in the art market, the auction house declared, with nearly a half-billion dollars' worth of 20th-century works being snapped up by bidders who coveted them as much as stores of value as pieces of art. How else to explain Jackson Pollock's drip painting, Number 19, 1948, going for a record $58.4 million, about twice the $25 million to $35 million it had been expected to fetch?

And the superrich again are falling over themselves in yet another round of "can you top this" in buying up trophy homes. It isn't just Russian oligarchs looking to get their wealth out of the country by snapping up Manhattan condos in the tens of millions, or newly minted South American millionaires swooping into Florida to buy properties at knock-down prices that are even bigger bargains in devalued dollars. Howard Stern reportedly is buying a Palm Beach house for a tidy $52 million, yet another sign of a surfeit of money over taste these days.

But with all this dough being thrown around promiscuously at every so-called asset class -- as indulgences such as mansions and art have come to be classified, even if they really are forms of conspicuous consumption -- why doesn't gold get any ardor? After all, for reasons probably buried deep within the human genome, the precious metal has been sought for thousands of years as an object of adornment and, most importantly, a store of value.

That value has been battered of late, with massive outflows from gold-related exchange-traded funds, notably the SPDR Gold Trust (GLD). For a brief time, it actually was the world's biggest ETF, eclipsing the SPDR S&P 500 (SPY), just before gold hit its high of about $1,900 an ounce in September 2011. Indeed, it has been the flight from "paper gold"—ETFs and futures or options contracts -- that has sent the metal tumbling, from a recent high of $1,800 last October, to around $1,700 at year end, and about $1,600 as recently as the end of March. That was just before the market plunged—or was pushed—into a virtual free-fall in mid-April that slashed the price by more than $200 an ounce in just two sessions. So extraordinary was the 9.4% collapse on April 15, wrote Howard Simons of Bianco Research at the time, that the odds against such a move were 20 trillion to one" -- a lower probability of occurrence than randomly selecting a [particular] $1 bill out of pile of singles representing the U.S. national debt."

These improbable moves have made gold bugs suspicious, which isn't unusual. Folks who own gold do so because they don't trust the status quo, especially when it comes to government-issued paper money. But just because you're paranoid doesn't mean somebody isn't out to get you. They point to bursts of selling on Friday, April 12, which resulted in prices plunging by more than 5%, and to dumping that resumed the following Monday in Asia, early in the day when markets are illiquid. That culminated in a 9% collapse by the time the New York market had settled. But a seller who wanted to unload a large position at the optimal price would have done precisely the opposite -- liquidate as discreetly as possible. Instead, sellers dumped the equivalent of more than 300 tons of the metal in staccato-like blasts during those sessions.

The suspicious selling resumed this Friday, with the equivalent of 17 tons sold on the New York Comex in two bursts in the morning, according to market sources. And the declines continued after the settlement of futures trading in the early afternoon as the SPDR Gold Trust ETF slumped a total of 2.25% on the day, to close at 131.07, below the April 15 close of 131.31. (The ETF represents a bit less than 1/10th of an ounce of gold.) The current-month May futures contract plunged 1.6%, or $22.20, to $1,364.90 an ounce on the Comex.

Over the past seven sessions, the metal has shed over $100, or more than 7%, all but wiping out the rebound after the stunning mid-April collapse. That slide had sparked a wave of bargain-hunting in physical gold around the globe, especially in Asia, where it was suddenly seen as cheap at the marked-down prices. The markets for paper gold and the actual metal thus showed a marked contrast in sentiment. The latter was eager to buy what the former dumped, something that makes you say "hmmmm."

There were a number of other curious aspects to the latest plunge in the GLD. (Everybody in the market refers to the big exchange-traded fund just by its ticker.)

Barron's options guru, Steve Sears, reports heavy buying in the GLD weekly put option with a 132 strike price that expired Friday. That option, which would have expired out of the money—and thus worthless—wound up solidly in the money after the ETF's drop.

Back in February, Sears began to pick up signs of increased GLD put buying and in his Striking Price column just before the big break ("A Hot Potato That Glitters," April 8), he suggested the purchase of weekly puts that paid off hugely the following Friday.

While the gold bugs point to this mysterious, concentrated dumping on big down days, it's clear that large-fund managers both followed and led the retreat in gold by selling their holdings of GLD. That's what our exchange-traded fund maven, Brendan Conway, pointed out Friday in his Focus on Funds blog on Barrons.com. He noted that Commerzbank's commodity strategists had found that 75% of redemptions of GLD came from institutions, based on their quarterly filings with the Securities and Exchange Commission.

Northern Trust was the biggest seller, liquidating the equivalent of 910,500 ounces, followed by BlackRock, with 428,500 ounces. In contrast, the iShares Gold Trust, the smaller ETF representing 1/100th of an ounce of gold and favored by individuals, saw lesser outflows.

At the same time, the options action has been weighted heavily to the put side, which has had the gold crowd on anxious alert.

Farallon Capital, the San Francisco hedge-fund operator founded by Democratic Party rainmaker Tom Steyer, listed in its first-quarter 13F filing 600,000 GLD put options, which sent ripples through the market. With each contract representing the right to sell 100 shares, that would have equaled 60 million shares of GLD, worth more than $900 million at quarter-end.

In actuality, the options position was equivalent to 600,000 shares of the ETF, as a revised filing indicated. A fund spokesperson said that the put designation "was put in the wrong column." Still, the fund listed a roughly similar amount of both calls and puts in its year-end 13F filing, evidently betting on a breakout either way. The latest data show it squarely on the short side of gold.

Gold bugs spy an agenda in all the concerted selling to discredit the metal and burnish the allure of stocks and bonds. The evidence remains circumstantial in that regard, but shouldn't be dismissed. The huge bouts of selling are irrational for a profit-maximizing investor.

Be that as it may, will the slide continue or is a rebound looming?

Charles Nenner, who heads the research firm bearing his name, watches recurring market cycles. Nenner, who advises hedge funds and sovereign-wealth funds, calls the current swoon a correction in gold's long-term bull market, from which he recommended temporarily exiting at $1,900 an ounce at the top in September 2011.

Now Charles looks for a bottom some time in June -- but there could be another spill before then. The risk, he warns, is that gold tumbles to $1,284. So, don't try to bottom-pick just yet.

(As an aside, Nenner also recommended the sale of Apple (AAPL) at $700 last September. In case you've been doing a Rip Van Winkle since then, the stock closed Friday at $433.26.)

The last time gold was held in such low esteem was during the fin de siècle dot-com bubble. It's feeling as if we're partying like it's 1999 with darlings like Tesla (TSLA) doubling in the past month or so, and analysts playing "can you top this" with their price targets for Google (GOOG) as it soars past $900 and seemingly heads to quadruple digits.

I guess you could say love is in the air.

http://silverdoctors.com/jim-willie-bullion-bank-run-in-progress-climax-coming/

JIM WILLIE: BULLION BANK RUN IN PROGRESS, CLIMAX COMING!

MAY 20, 2013 BY THE DOC 25 COMMENTS

“Hang on to your gold [and silver], don’t even watch the corrupt gold price, because I can guarantee you in the next several months, or a year or more, there will be NO COMEX GOLD PRICE. Because they will have no inventory; they will offer no more futures contracts, because the line up for lawsuits and prosecution will be so long…”

Jim Willie says the recent gold price take-down has caused, “A bank run in gold bullion banks.  It’s a vault run. . . Wealthy investors are asking for their gold, and some are finding out it’s not there.” Jim Willie, who holds a PhD in statistics, says things are getting worse. Dr. Willie contends, “Back in 2011 and 2012, you had an important event every three of four months. Now, it’s every two or three weeks. So, the mean time between failures is rapidly declining.” Dr. Willie goes on to predict, “Before, they were talking about stress tests. Now, they realize that all of them in the past were a fraud. So, they are talking about ‘bail-ins’ because they are expecting failures.” Dr. Willie contends, “It’s all coming to a climax where gold is going to be central with a gold-trade central bank and gold priced at $7,000 per ounce.” Join Greg Hunter as he goes One-on-One with Jim Willie:

Check out these similar articles: