Commentary on the economic , geopolitical and simply fascinating things going on. Served occasionally with a side of snark.
Monday, May 6, 2013
Gold and Silver news and views , Harvey Organ report for May 6 , 2013.... Gold and silver continues to leave Comex and GLD ETF .... but SLV continues to be essentially .....
I had the opportunity yesterday to speak with one of the western world’s most courageous and astute women, Karen Hudes, Former Senior Council to the World Bank—now turned whistle-blower.
It was a powerful conversation, as Karen spent 20 years with the World Bank as an attorney and economist, before being “let-go” after reporting internal fraud and corruption.
During the interview Karen indicated that the world is rapidly changing, with western power structures breaking down, economic & political influence gravitating to BRICs nations, all amid a pending currency transition which will highly favor precious metals.
Starting out by discussing the shocking centralized power she witnessed while working at the World Bank, Karen explained that, “A study done by three [Swiss] systems analysts who used mathematical modeling [shows] how the [world's] 43,000 transnational corporations were being controlled through interlocking corporate directorates. There’s a group of 147 companies, most of them are financial institutions, and what they’ve done, is through the interlocking directorates, they control 40% of the net worth of these [43k] companies, and 60% of their earnings…so that group has been using the presidency of the World Bank as kind of a puppet to dominate the world—that’s [now] finished.”
A major shock to that centralized power base, according to Karen, was the recent move by BRICs nations leaders to bypass the World Bank for their financing needs, by establishing their own development bank. “As the BRICs [nations] economic power grows,” she explained,“they’re not going to be strangled anymore through the grabbing [of] their resources…So their decision to start their own development bank was their way of letting [world] governments know…that its time to end this corruption.”
Major moves toward monetary independence are also being made by growing numbers of U.S. states, Karen added. She explained that, “The states are starting to have legislation recognizing gold and silver bullion as legal currency. This is [also] a very strong signal the states are sending to the federal government, that the time to get serious about ending the corruption in the financial system is now here.”
Latest U.S. jobs report is fabrication, Embry and Roberts say
Submitted by cpowell on Mon, 2013-05-06 19:06. Section: Daily Dispatches
3p ET Monday, May 6, 2013
Dear Friend of GATA and Gold:
Interviewed today by King World News, Sprott Asset Management's John Embry remarks that the U.S. government's latest jobs report is a complete fabrication, as noted yesterday by former Assistant U.S. Treasury Secretary Paul Craig Roberts:
"There isn't one single thing that has happened in the big picture since gold was $1,900 at the end of August 2011 that is remotely negative for gold," Embry says. "I don't care what aspect you look at." The recent attack on gold, Embry adds, "has been an absolute takedown because the United States is scared to death of losing its reserve currency status or seeing its currency get annihilated."
An excerpt from the interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc.
http://silverdoctors.com/the-global-flight-from-paper-to-bullion-sgt-report-unbound-w-jeff-nielson/#more-26182 ( Flight from paper to physical discussed.... )
THE GLOBAL FLIGHT FROM PAPER TO BULLION: SGT REPORT UNBOUND W/ JEFF NIELSON
Jeff Nielson from Bullion Bulls Canada joins SGT to discuss the global flight out of paper gold and silver and into PHYSICAL bullion. We also talk about the new CBC documentary “The Monarchs of Money” – and how it attempts to elevate the Central Banksters to benevolent servants of the financial markets, even as it shares some truth. We wrap things up with a conversation about deflation VS inflation VS hyperinflation — Jeff says, without a single additional printed dollar, the US and all major countries on earth could find themselves in a state of hyperinflation the minute the Banksters unleash the TRILLIONS already printed.
In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss the Great Leap Forward in central banks’ central planning which has driven the Housewives of China to buy 300 tons of gold, an act of disloyalty to the central bank revolution. Max notices that Mrs. Wang has displaced Mrs Watanabe as the most important buyer in global financial markets. In the second half, Max talks to Alasdair MacLeod about everything to do with the physical and paper gold markets – from open interest to naked short selling by bullion banks. MacLeod states that trouble is brewing, and that he expects thatCentral Bank intervention is likely to break down much sooner than Bernanke believes is possible, and likely by Q4 2013!
Gold continues to leave Comex/only 57 tonnes left in dealer gold/Another 3.31 tonnes leaves GLD warehouses in London/Gold and silver hold/
Good evening Ladies and Gentlemen:
Gold closed up $3.80 to $1468.10 (comex closing time). Silver fell by 6 cents to $23.92 (comex closing time).
In the access market at 5 pm gold and silver are the following :
gold: $1470.00.
silver: $24.04
London England was closed today and this is a huge physical market. The bankers generally try and hit gold/silver on these days. Today they tried but failed.
At the comex, the open interest in silver rose by 1061 contracts to 145,947 contracts as we had a few more players wishing to take on the criminal bankers . The silver OI is holding firm at elevated levels . The open interest on the gold contract rose by 219 contracts to 429,322. It is interesting that the gold deliveries for May is now close to 6 tonnes at 5.87 tonnes and this is an off month for gold. In silver for the first time we are witnessing 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 now stands at 16.325 million oz. On first day notice: 14.860 million oz.
Today, physical gold continues to leave London with 3.31 tonnes of gold departing the GLD for the shores of China/and or Russia. The game ends when the last physical ounce held at the GLD departs. I have no idea why the Serious Fraud squad in London has not been called in by any GLD shareholder scared that they may be left holding the bag of worthless paper.
Over at the comex more gold departs as investors are frightened to death of a confiscation similar to what happened at MFGlobal or Refco. Tonight, the Comex registered or dealer gold rests at 1.858 million oz or 57.16 tonnes. The total of all gold at the comex fell below 8 million oz at 7.979 million oz.
The Chinese service PMI faltered this month as it is now clear that China is slowing down.
European PMI was basically a touch higher in service PMI, but all countries are well below the 50 mark (recession)
The big news occurred during the weekend, where Israel launched an attack on Damascus, Syria. They blew up ammunition strongholds as well as the 4th armoured battalion, responsible for guarding Assad. Syria declared that this was an act of war.
Great Britain was on holiday today. News came that one out of 5 Brits are borrowing funds to eat.
In Spain, the bad bank acquired 83,000 buildings and only 6,000 had any tenants in them.
Draghi spooked the Euro today, by saying that he is reading to act as the EMU data continues to deteriorate. This sent the Euro to trade below the 1.31 mark settling at 1.3076
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 219 contracts today from 429,103 all the way up to 429,322, with gold falling by $3.40 on Friday. The front non active delivery month of May saw its OI fall by 81 contracts. However we had 48 delivery notices filed on Friday. Thus we actually lost 33 contracts or 3300 oz that will not stand for May's delivery. The next active contract month is June and here the OI fell by 941 contracts to 247,582. June is the second biggest delivery month in gold's calender. The estimated volume today was bad at 77,217 contracts. The confirmed volume on Friday was much better at 194,301 contracts.
The Indian premiums for gold are rising:
Late Sunday night:
(from Dave Kranzler/Dave from Denver/The GoldenTruth)
India was far from closed. Dave from Denver notes:
"Indian ex-duty premiums were huge last night: $23.40 (in the morning). and $14.58 in the afternoon. Means India was hoovering physical last night."
The total silver comex OI rose again by 1061 contracts from 144,886 up to 145,947 with silver's rise in price of 19 cents on Friday. On Friday, we just had some short covering as the physical markets are still on fire. The front active silver delivery month of May saw it's OI fall by 233 contracts. We had 241 delivery notices filed on Friday so we gained a 8 contracts or an additional 40,000 oz will stand for delivery in May. The next delivery month for silver is June and here the OI fell by 23 contracts to stand at 398. The next big active contract month is July and here the OI rose by 902 contracts to rest tonight at 79,962. The estimated volume today was pretty weak, coming in at 20,655 contracts. The confirmed volume on Friday was extremely good at 63,659.
Comex gold/May contract month:
May 6/2013
Gold
Ounces
Withdrawals from Dealers Inventory in oz
16,939.932 (HSBC)
Withdrawals from Customer Inventory in oz
102,543.168 oz (HSBC)
Deposits to the Dealer Inventory in oz
nil
Deposits to the Customer Inventory, in oz
65,253.735 ,(Scotia)
No of oz served (contracts) today
7 (700 oz)
No of oz to be served (notices)
127 (12,700)
Total monthly oz gold served (contracts) so far this month
1760 (176,000)
Total accumulative withdrawal of gold from the Dealers inventory this month
nil
Total accumulative withdrawal of gold from the Customer inventory this month
477,003.23 oz
We had good activity at the gold vaults.
The dealer had 0 deposits and 1 dealer withdrawal.
i) out of Scotia dealer: 16,939.932 oz was withdrawn
We had 1 customer deposit today:
i) Into Scotia: 65,253.735 oz
total customer deposit: 65,253.735 oz
We had 1 customer withdrawal:
i) Out of HSBC: 102,543.168 oz
total withdrawal: 102,543.168 oz
We had 1 adjustment
1.From the HSBC vault: 100 oz is adjusted out of the dealer account into the customer account
Thus the dealer inventory rests tonight at a new low of 1.858 million oz (57.16) tonnes of gold.
The total of all gold declines again at the comex and this time falls below the 8 million oz as it rests at 7.979 million oz or 248.18 tonnes.
Ladies and Gentlemen: gold is continually leaving the comex vaults, and now in both the dealer and the customer account. I guess many are afraid of a default and do not want to leave any metal there in case of confiscation a la MFGlobal and Cyprus.
The CME reported that we had 7 notices filed today for 700 oz of gold today.
To calculate the quantity of gold ounces that will stand, I take the OI standing for May (134) and subtract out today's notices (7) which leaves us with 127 notices or 12,700 oz left to be served upon our longs.
Thus we have the following gold ounces standing for metal in May:
1760 contracts x 100 oz per contract or 176,000 oz (served) + 127 notices or 12,700 oz (to be served upon) = 188,700 oz or 5.87 tonnes of gold.
This is extremely high for a non active month. We lost 3300 oz standing for May today.
end
Silver:
May 6.2013: May silver:
Silver
Ounces
Withdrawals from Dealers Inventorynil
Withdrawals from Customer Inventory 510,435.85 oz (Delaware ,CNT, HSBC,Brinks)
Deposits to the Dealer Inventory nil
Deposits to the Customer Inventory 126,270.40 oz (CNT,HSBC)
No of oz served (contracts)57 contracts ( 285,000 oz)
No of oz to be served (notices)885 (4,425,000 oz)
Total monthly oz silver served (contracts) 2380 (11,900,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month204,097.65
Total accumulative withdrawal of silver from the Customer inventory this month876,160.12
Today, we had good activity inside the silver vaults.
we had 0 dealer deposits and 0 dealer withdrawals.
total dealer withdrawal: nil oz
We had 2 customer deposits:
i) Into CNT: 1002.40 oz
ii) Into HSBC: 125,268.000 oz (another of those perfectly round deposits..this time in the HSBC vault.
total deposit; 126,270.40
We had 4 customer withdrawals:
1) Out of Delaware: 5006.66 oz
ii) Out of CNT: 998.90 oz
iii) Out of HSBC: 324,572.95 oz
iv) Out of Brinks: 179,857.34 oz
total withdrawal: 510,435.85 oz
we had 2 adjustments:
i) Out of JPM: 132,670.10 oz was adjusted out of the dealer and back into the customer account
ii) Out of the Scotia vault: 125,863.30 oz out of the dealer account and back into the customer account.
Registered silver at : 45.414 million oz
total of all silver: 165.6 million oz.
The CME reported that we had 57 notices filed for 285,000. To calculate the number of ounces that will stand in silver, I take the OI standing for May (942) and subtract out today's notices (57) which leaves us with 885 notices or 4,425,000 oz
Thus the total number of silver ounces standing in this active delivery month of May is as follows:
2380 contracts x 5000 oz per contract (served) = 11,900,000 + 885 contracts x 5000 oz = 4,425,000 oz ( to be served) = 16,325,000 oz.
Two important points today:
1. we gained another 40,000 oz of silver standing.
2. We have now fully surpassed what was outstanding on first day notice.
If you will recall, we ha
14,860,000 oz of silver standing on first day notice.
On day number 2 we slightly surpassed that total as just under 15 million oz was set to stand. Today, we fully surpassed the original first day notice by quite a lot. In the past few years, we have always seen a decline in amounts standing in an active month for gold and in silver. It goes to show you the demand for physical metal is strong and entities are looking everywhere for the scarce metal.
May 6.2013:
Tonnes1,062.30
Ounces34,153,900.65
Value US$50.153 billion
May 3.2013:
Tonnes1,065.61
Ounces34,260,271.68
Value US$50.311 billion
selected news and views........
'Curbing bank funds will spike gold prices'Mumbai, May 5, 2013, PTI:The Reserve Bank of India’s decision to restrict bank finance to gold imports meant only for jewellery exports will adversely affect supply of gold and increase prices, apart from boosting grey market, according to the All India Gems and Jewellery Federation (GJF).
"The RBI’s restriction on the import of gold on consignment basis by banks only to meet the genuine needs of exporters of gold jewellery, will have repercussions on the industry.The premium on the products will rise, the volatility will rise, there will be disparity in the market, disturbance in the supply chain and flourishing of the grey market," GJF? Chairman Haresh Soni said in a statement.
Instead, the government should take steps like banning imports of coins, unlock public coins in market, limit or ban sale of coins by banks, encourage local coin manufacturers, he added and called for introducing measures to identify gold used for investment purpose and for retail consumption.
"The non productive gold lying with exchange traded funds (ETF) should be channelised through nominated agencies in the domestic market, so that the import of the precious metal can be reduced," he said.
The RBI last week tightened the screws on both bank and NBFCs into gold funding business and restricted banks financing gold import to gold jewellery exporters. The apex bank, while announcing the annual monetary policy, also restricted the lending against gold coins up to 50 gm.
GJF Director Ashok Minawala said the industry does not believe that the apex bank’s latest move this move would help in addressing the issue of widening current account deficit. However, curtailing the import of gold on consignment basis will harm jewellery makers as they won’t be able to secure loans in the form of gold from banks as prevalent in the industry.
USA gold production down 8% in January and February. And this is without the Kennecott Copper shutdown on April 10.2013: (courtesy Mineweb/Dorothy Kosich)
Jan.-Feb. data reveals U.S. gold production declining—USGS
U.S. gold mining output was already slowing when on April 10, Kennecott Copper’s Bingham Canyon Mine experienced a massive slope failure temporarily idling the country’s 4th largest gold producer.Author: Dorothy Kosich Posted: Monday , 06 May 2013 RENO (MINEWEB) –
Gold production by U.S. mines was down 8% in February from 18,300 kilograms (588,358 troy ounces) in February 2012 to 16,900 kilograms (543,347 ozs) this year, the U.S. Geological Survey reported in its Mineral Industry Survey. This comes on the heels of a 10% drop in January of this year from 19,800 kilograms (636,584 ozs) in January 2012 to 17,900 kilograms (575,498 ozs). The average daily gold production for U.S. mines was 603 kg (19,386 ozs) in February, compared with 630 kg (20,254 ozs) for February 2012, and 631 kg (20,287 ozs) daily for the full year 2012. In January, the average daily gold production for U.S. mines was 578 kg (18,583 ozs). The State of Nevada led U.S. production for both January and February this year, mining a combined total of 26,200 kg (842,349 ozs), followed by the Alaska at 4,010 kg (128,924 ozs). Kennecott parent Rio Tinto recently advised, "It is not yet known what the full impact [of the Bingham Canyon slope failure] will be for 2013 gold production." Bingham Canyon is located near Salt Lake City, Utah
Gold coin sales in the uSA spike to a 3 year high. In April a huge 209,000 ounces were minted
6.5 tonnes. In March 62,000 oz or 1.928 tonnes.
Silver rose to 4.1 million oz in April. The USA mint is well on its way to produce well over 40 million oz of silver. The USA produces only 34 million oz, and thus the USA must import silver from Mexico. Canada needs all of its production to feed the Royal Canadian mint and jewellers.
Gold Coin Sales Spike To 3-Year High, Silver Sales Continue At Record Pace
Sales of gold and silver coins spiked in April, said the U.S. Mint. The U.S. Mint reported that sales of American Eagle gold coins were 209,000 ounces in April, up from 62,000 ounces in March and the highest level since December 2009. Meanwhile, sales of silver coins rose to 4.1 million ounces from 3.4 million ounces. Since the start of the year, gold sales have totaled 502,000 ounces, up 118 percent from the same period a year ago. Silver sales—which are running at a record pace—totaled 18.3 million ounces, up 57 percent from last year. American Eagle Gold Sales (in ounces)
American Eagle Gold Coin Sales As we’ve written in the past, the sales of American Eagle gold coins are a relatively insignificant portion of the global gold market. Annual global gold demand is in the range of 145 million ounces. At 502,000 ounces, mint gold sales are too small to make a dent. Incidentally, silver coin sales are significant. On an annualized basis, sales are running at a 56 million ounce clip. That’s over 5 percent of global silver demand,
American Eagle Silver Sales (in ounces)
American Eagle Silver Sales For the gold market, the more important factor has been the buying and selling by exchange-traded funds. This year, most of the investor movement has been on the sell side. ETF holdings were down 5,600,000 ounces in April alone. Since the start of the year, ETFs have liquidated a whopping 12 million ounces, or the equivalent of 8 percent of global demand. Gold ETF Holdings
In our view, gold prices will only stabilize once ETF investors stop selling. Buying by coin investors will not make up the difference.
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