http://harveyorgan.blogspot.com/2013/05/gold-and-silver-holdgold-declines-again.html
Saturday, May 4, 2013
Gold and silver hold/Gold declines again at GLD and Comex/Gold deliveries are now 5.97 tonnes for April/Silver at 16.29 million oz
Good morning Ladies and Gentlemen:
Gold closed down $3.40 to $1464.30 (comex closing time). Silver rose by 19 cents to $23.98 (comex closing time).
In the access market at 5 pm gold and silver are the following :
gold: $1470.70.
silver: $24.13
At the comex, the open interest in silver fell by 850 contracts to 144,886 contracts as we had some minor short covering. The silver OI is holding firm at elevated levels . The open interest on the gold contract rose by 5216 contracts to 429,103. It is interesting that the gold deliveries for May is now close to 6 tonnes at 5.97 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 16.285 million oz. On first day notice: 14.860 million oz.
Today, physical gold continues to leave London with 3.6 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.
In paper stories the news was all USA based as the BLS reported an increase in the jobs number by 165,000. We will show you that all of these gains were fictitious coming from a 195,000 addition in the B/D plug.
The USA also reported a drop in factory orders and a big drop in the service PMI numbers.
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 5216 contracts on Friday from 423,887 all the way up to 429,103, with gold rising by $21.40 on Thursday.This is quite normal as some folks think that they can outsmart the fraudulent bankers. The front non active delivery month of May saw its OI rise by 43 contracts. However we had 23 delivery notices filed on Thursday. Thus we actually gained 66 contracts or an additional 6600 oz will stand for May's delivery. The next active contract month is June and here the OI rose by 2090 contracts to 248,523. June is the second biggest delivery month in gold's calender. The estimated volume today was good at 176,920. The confirmed volume on Thursday was in the same ballpark at 163,592 contracts.
The total silver comex OI fell by 850 contracts from 145,736 down to 144,886 despite silver's rise in price of 49 cents on Thursday. It seems that on big raid days, we have some new players entering the arena willing to play with the crooked bankers, and the older longs refuse to buckle under the weight of the attack. 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 rise by 41 contracts. We had 219 delivery notices filed yesterday so we gained a whopping 301 contracts or 1.505 million additional oz will stand. The next delivery month for silver is June and here the OI fell by 1 contracts to stand at 421. The next big active contract month is July and here the OI fell by 1196 contracts to rest this weekend at 79,060. The estimated volume Friday was very good, coming in at 55,740 contracts. The confirmed volume Thursday was extremely good at 57,486.
Gold closed down $3.40 to $1464.30 (comex closing time). Silver rose by 19 cents to $23.98 (comex closing time).
In the access market at 5 pm gold and silver are the following :
gold: $1470.70.
silver: $24.13
At the comex, the open interest in silver fell by 850 contracts to 144,886 contracts as we had some minor short covering. The silver OI is holding firm at elevated levels . The open interest on the gold contract rose by 5216 contracts to 429,103. It is interesting that the gold deliveries for May is now close to 6 tonnes at 5.97 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 16.285 million oz. On first day notice: 14.860 million oz.
Today, physical gold continues to leave London with 3.6 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.
In paper stories the news was all USA based as the BLS reported an increase in the jobs number by 165,000. We will show you that all of these gains were fictitious coming from a 195,000 addition in the B/D plug.
The USA also reported a drop in factory orders and a big drop in the service PMI numbers.
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 5216 contracts on Friday from 423,887 all the way up to 429,103, with gold rising by $21.40 on Thursday.This is quite normal as some folks think that they can outsmart the fraudulent bankers. The front non active delivery month of May saw its OI rise by 43 contracts. However we had 23 delivery notices filed on Thursday. Thus we actually gained 66 contracts or an additional 6600 oz will stand for May's delivery. The next active contract month is June and here the OI rose by 2090 contracts to 248,523. June is the second biggest delivery month in gold's calender. The estimated volume today was good at 176,920. The confirmed volume on Thursday was in the same ballpark at 163,592 contracts.
The total silver comex OI fell by 850 contracts from 145,736 down to 144,886 despite silver's rise in price of 49 cents on Thursday. It seems that on big raid days, we have some new players entering the arena willing to play with the crooked bankers, and the older longs refuse to buckle under the weight of the attack. 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 rise by 41 contracts. We had 219 delivery notices filed yesterday so we gained a whopping 301 contracts or 1.505 million additional oz will stand. The next delivery month for silver is June and here the OI fell by 1 contracts to stand at 421. The next big active contract month is July and here the OI fell by 1196 contracts to rest this weekend at 79,060. The estimated volume Friday was very good, coming in at 55,740 contracts. The confirmed volume Thursday was extremely good at 57,486.
May 3/2013
Ounces
Withdrawals from Dealers Inventory in oz
nil
Withdrawals from Customer Inventory in oz
129,587.76 oz (HSBC, Scotia)
Deposits to the Dealer Inventory in oz
nil
Deposits to the Customer Inventory, in oz
64,083.57 (HSBC,Scotia)
No of oz served (contracts) today
48 (4800 oz)
No of oz to be served (notices)
167 (16,700)
Total monthly oz gold served (contracts) so far this month
1753 (175,300)
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 0 dealer withdrawals.
We had 2 customer deposits today:
i)Into HSBC: 31,976.800 oz
ii) Into Scotia: 32,106.770 oz
total customer deposit: 64,083.57 oz
We had 2 customer withdrawals:
i) Out of HSBC: 65,425.336 oz
ii) Out of Scotia: 64,162.432
total withdrawal: 129,587.76 oz
We had 1 big adjustments
1.From the Scotia vault: 106,312.088 oz is adjusted out of the dealer account into the customer account
Thus the dealer inventory rests tonight to rest this weekend at a new low of 1.875 million oz (58.32) tonnes of gold.
The total of all gold declines again at the comex and this time just above the 8 million oz as it rests at 8.033 million oz or 249.8 tonnes.
Ladies and Gentlemen: gold is continually leaving the comex vaults, especially in 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 48 notices filed today for 4800 oz of gold today.
To calculate the quantity of gold ounces that will stand, I take the OI standing for May (215) and subtract out Friday's notices (48) which leaves us with 167 notices or 16,700 oz left to be served upon our longs.
Thus we have the following gold ounces standing for metal in May:
1753 contracts x 100 oz per contract or 175,300 oz (served) + 167 notices or 16,700 oz (to be served upon) = 192,000 oz or 5.97 tonnes of gold.
This is extremely high for a non active month. We gained an extra 6600 oz standing for May today.
Silver:
May 3.2013: May silver:
Silver
Ounces
Withdrawals from Dealers Inventory 204,097.65 (Brinks) Withdrawals from Customer Inventory 235,339.728 oz (Delaware ,CNT, HSBC,Scotia ) Deposits to the Dealer Inventory nil Deposits to the Customer Inventory nil No of oz served (contracts) 241 contracts ( 1,205,000 oz) No of oz to be served (notices) 934 (4,670,000 oz) Total monthly oz silver served (contracts) 2323 (11,615,000 oz) Total accumulative withdrawal of silver from the Dealers inventory this month 204,097.65 Total accumulative withdrawal of silver from the Customer inventory this month 876,160.12
Today, we had good activity inside the silver vaults.
we had 0 dealer deposits and 1 dealer withdrawals.
i) Out of the Brinks vault: 204,097.65 oz was withdrawn
total dealer withdrawal: 204,097.65 oz
We had 0 customer deposits:
Total deposits: nil oz
We had 4 customer withdrawals:
1) Out of Delaware: 13,236.519 oz
ii) Out of CNT: 16,036.65 oz
iii) Out of HSBC: 5,263.619 oz
iv) Out of Scotia: 200,802.94 oz
total withdrawal: 235,339.728 oz
we had 1 adjustments:
i) Out of CNT: 410,898.95 oz was adjusted out of the customer and back into the dealer account
Registered silver at : 45.672 million oz
total of all silver: 165.642 million oz.
The CME reported that we had 241 notices filed for 1,205,000. To calculate the number of ounces that will stand in silver, I take the OI standing for May (1175) and subtract out Friday's notices (241) which leaves us with 943 notices or 4,670,000 oz
Thus the total number of silver ounces standing in this active delivery month of May is as follows:
2323 contracts x 5000 oz per contract (served) = 11,615,000 + 934 contracts x 5000 oz = 4,670,000 oz ( to be served) = 16,285,000 oz.
Two important points today:
1. we gained 1.505 million oz of silver standing.
2. We have now fully surpassed what was outstanding on first day notice.
If you will recall, we have 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.
GLD still losing gold ....... almost ten tons gone between 5/3 and 5/1
May 3.2013:
Tonnes1,065.61
Ounces34,260,271.68
Value US$50.311 billion
May 2.2013:
Tonnes1,069.21
Ounces34,376,316.61
Value US$50.482 billion
May 1.2013:
Tonnes1,075.23
Ounces34,569,726.95
Value US$50.265 billion
Harvey's take on Commitment of Traders reports....
At 3:30 pm we get the COT report where we see position levels of our major players.
Let us head over to the gold COT and see what we can glean from it:
Gold COT Report - Futures
Large Speculators
Commercial
Total
Long
Short
Spreading
Long
Short
Long
Short
193,310
96,258
20,115
170,211
265,774
383,636
382,147
Change from Prior Reporting Period
-3,878
3,325
-1,772
14,080
5,255
8,430
6,808
Traders
137
96
73
60
52
229
195
Small Speculators
Long
Short
Open Interest
37,451
38,940
421,087
-2,417
-795
6,013
non reportable positions
Change from the previous reporting period
COT Gold Report - Positions as of
Tuesday, April 30, 2013
Very strange report:
Our large speculators:
Those large speculators that have been long in gold pitched 3878 contracts from the long side as they have basically given up
Those large speculators that have been short in gold added another 3325 contracts to their short side.
Our commercials;
Those commercials who are close to the physical scene and are long in gold added a very hefty 14,080 contracts to their long side.
Those commercials who are short in gold added another 5255 contracts to their short side.
Our small specs;
Those small specs who are long in gold, pitched a rather large 2417 contracts from their long side
Those small specs who are short in gold, covered 795 contracts from their short side.
Conclusions:
The commercials went net long by 8825 contracts and that is very bullish
The large specs went net short by 7203 contracts and that is bullish
The small specs went net short by 1622 contracts and that is bullish.
I am doubting the accuracy of the figures we have been given.
And now for the silver COT:
Silver COT Report: Futures
Large Speculators
Commercial
Long
Short
Spreading
Long
Short
35,720
23,530
23,400
65,685
79,915
-3,097
-286
-7,713
-2,573
-5,507
Traders
57
55
45
40
38
Small Speculators
Open Interest
Total
Long
Short
143,477
Long
Short
18,672
16,632
124,805
126,845
-2,110
-1,987
-15,493
-13,383
-13,506
non reportable positions
Positions as of:
123
119
Tuesday, April 30, 2013
© SilverSeek.com
Strange report and different from gold.
Our large specs:
Those large specs that have been long in silver pitched a hefty 3097 contracts from their long side.
Those large specs that have been short in silver added a tiny 286 contracts to their short side.
Our famous commercials:
Those commercials that have been long in silver pitched a rather large 2573 contracts from their long side (in total contract to gold)
Those commercials that have been short in silver covered a rather large 5507 contracts from their short side (in total contrast to gold)
Our small specs:
Those small specs that have been long in silver covered 2110 contracts from their long side
Those small specs that have been short in silver covered 1987 contracts from their short side.
Conclusions:
The commercials went net long by 2934 contracts and that is bullish
The large specs went net short by 2811 contracts and that is bullish
The small specs went net short by 123 contracts and that is a little bullish.
Gene Arensberg discusses in detail the disaggregated report and it shows that for the first time, the little guys are net short of gold and the bankers have reduced their short positions like never before. The hedge funds have sold short in this latest gold rally, believing that gold will fall. The banks are taking the opposite view.
a very important read for you
(courtesy Gene Arensberg/technical analysis of the COT)
Gene Arensberg: Small traders are net short gold for first time as big traders cover
Submitted by cpowell on Sat, 2013-05-04 03:09. Section: Daily Dispatches
11p ET Friday, May 3, 2013
Dear Friend of GATA and Gold:
The Got Gold Report's Gene Arensberg discloses tonight that small futures traders have done what they have never done before -- gone net short in gold -- while the big traders are furiously covering their short positions. Arensberg's report is posted at the GGR Internet site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
end
Selected news and views .....
Another example of the huge demand for physical gold. Hong Kong retailers just overwhelmed by shoppers coming from mainland China
(courtesy China Daily, Beijing)
Hong Kong gold retailers overwhelmed by mainland shoppers
Submitted by cpowell on Fri, 2013-05-03 03:40. Section: Daily Dispatches
By Gao Changxin
China Daily, Beijing
Thursday, May 2, 2013
HONG KONG -- Hong Kong retailers report they were swamped over the three-day May Day holiday by tens of thousands of mainlanders in search of one thing: cheap gold.
After the recent slump in gold prices, Hong Kong's already healthy community of gold shops, mainly in its traditional tourist areas, has increased with a flurry of new openings. But traders report they have been overwhelmed by the mainland shoppers.
Gold prices in Hong Kong are lower than on the mainland.
On Wednesday in Causeway Bay there were long queues outside shops, which blocked the popular shopping area's narrow streets and sidewalks.
"It's cheap, so what else do you need to know?" said Wang Zhongxin, a shopper from Shanghai as he left one Chow Tai Fook outlet.
He had spent around 30,000 yuan ($4,760), twice the monthly average wage in Hong Kong, on three gold necklaces and a couple of rings. He said he wanted to buy bullion but they had already sold out.
Wang's mentality echoed that of many mainland gold shoppers, who believe the recent price slump had opened a perfect window to stock up on the precious metal.
"The gold price will definitely rise in the long term," he added.
Shoppers like Wang have been emptying gold stores on the mainland before coming to Hong Kong.
Beijing Caishikou Department Store, the biggest gold retailer in Beijing, has been seeing daily sales worth up to 100 million yuan since late April, several times their usual sales. Local media reported that the store had taken on extra staff to cope with the gold rush.
The China Gold Association reported that gold sales had tripled on many days.
The price of gold bullion has so far fallen 14 percent this year as investors worldwide sold the metal after a decade-long rally.
Gold spot traded at $1,473.18 per ounce on Wednesday, around 7 percent lower than on April 11, the day before a 14 percent two-day tumble, the worst since 1983.
But many institutional investors have viewed the price slump as temporary and an over-reaction.
Mitul Kotecha, head of global markets research Asia and global head of foreign exchange strategy with Credit Agricole, wrote in a research note last month that the recent sharp drop in the price of gold looked "overdone," with some "bargain hunting" likely, in terms of jewelry demand.
Over the longer term, he added, central bank diversification into gold will lend some support and limit the pace of the price decline.
"We will likely see a slower pace of price decline, underpinned by continued purchases from the official sector," he wrote.
HSBC Holdings PLC said it believed a pickup in demand from China and India, combined with producers cutting their supplies, will support a stable recovery in the gold price.
Chinese customers are not the only ones snapping up bargain gold.
Gold coin sales by the United States Mint are heading for their highest levels in three years.
Sales totaled 209,500 ounces in April, up from 62,000 ounces a month earlier, data on the mint's website revealed. The amount for December 2009 was 231,500 ounces.
Demand for gold in India, the world's biggest consumer, is double the level for this time of year, Rajesh Mehta, chairman of Rajesh Exports Ltd., told Bloomberg on Wednesday.
end
the moment China announces that they have 4,000 tonnes of official gold, you will see the greatest panic to purchase this ancient metal of kings:
(courtesy Neilson/bullionbullscanada.com/Gata)
Jeff Nielson: China's real gold reserves at 4,000 tonnes?
Submitted by cpowell on Fri, 2013-05-03 19:23. Section: Daily Dispatches
3:20p ET Friday, May 3, 2013
Dear Friend of GATA and Gold:
Jeff Nielson of Bullion Bulls Canada writes today that China has probably raised its gold reserves to as much as 4,000 tonnes, far beyond the 1,054 announced in 2008 and reported officially today, and that it is probably talking gold down so it can get more metal inexpensively. Nielson's commentary is headlined "China's Real Gold Reserves at 4,000 Tonnes?" and it's posted at Bullion Bulls Canada here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
end
another financial analyst now believes that gold has been manipulated:
(Kingworldnews/John Hathaway)
Somebody is 'sitting on the gold price,' Tocqueville's Hathaway says
Submitted by cpowell on Fri, 2013-05-03 03:32. Section: Daily Dispatches
11:30p ET Thursday, May 2, 2013
Dear Friend of GATA and Gold:
Interviewed tonight by King World News, Tocqueville Gold Fund manager John Hathaway gets closer than ever to acknowledging gold market manipulation. Hathaway observes that someone -- "whoever" -- "is sitting on the gold price." Maybe in his next interview with King World News Hathaway will be emboldened to speculate on that someone's initials. Maybe "B.B."? And not the "Big Brother" of George Orwell's novel "1984" but the "B.B." who in testimony to Congress in July 2011 affected to believe that central banks hold gold only as "tradition":
An excerpt from Hathaway's interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Krugerrand sales soar following the big raid on gold in the last month:
(courtesy Ed Steer commentary/SouthAfrican.com)
Krugerrand sales soar following gold price slump
The Scoin Shop, the UK and the world’s only gold coin retail chain, has reported a 468 percent increase in Krugerrand sales, above average weekly sales of the bullion coins, directly linked to the fall in international gold prices.
Alan Demby, an international bullion expert since 1978, founder of the Scoin Shop and chairman of the South African Gold Coin Exchange, commented, “Since the gold price has dropped we have seen an enormous interest in buying gold at what is seen as a competitive rate – many of our existing clients in both the UK and South Africa see it as a tremendous buying opportunity they would otherwise not have.
“Having closely monitored gold’s performance over 40 years I can safely say that the media and gold skeptics have got it wrong on this occasion: it is not bad news. Gold is smart money at a time when currencies have never been so volatile. We only have to look at the Eurozone or America’s $16 trillion dollar debt to know that gold is the one tangible currency which can be used against depleted cash reserves which are liable to devalue further.
This story was posted on thesouthafrican.com Internet site late yesterday afternoon local time in Johannesburg...and it's courtesy of Matthew Nel.
Read more...
end
And the fight goes on for honest money:
(courtesy Gaynor/Reuters)
Arizona governor vetoes bill making gold, silver legal tender
By Tim Gaynor | Reuters –
By Tim Gaynor
PHOENIX (Reuters) - Arizona Governor Jan Brewer vetoed a measure on Thursday that would have made gold and silver legal tender in the state, saying the legislation could have resulted in lost tax revenue.
The Republican-controlled state legislature voted through the measure last month in a response to what backers said was a lack of confidence in the international monetary system.
The bill called for Arizona to make gold and silver coins and bullion legal tender beginning in mid-2014, joining existing U.S. currency issued by the federal government.
"While I believe the concern over a devalued dollar as a result of an unsustainable federal deficit is justified, I am unable to support this legislation," Brewer, a Republican, said in an open letter to stateSenate President Andy Biggs.
Brewer noted that the "administrative and fiscal burdens" for taxpayers and the revenue department "remain vague." She also cited uncertainty over whether the legislation would have required the state to exempt transactions involving collectable coins and bills that were authorized by Congress and could be used as legal tender.
"This would result in lost revenue to the state, while giving businesses that buy and sell collectable coins or currency originally authorized by Congress an unfair tax advantage," she said.
The push to establish gold and silver as currency has become increasingly popular in the United States in recent years among some hardline fiscal conservatives, with the backing of groups including the Tea Party movement, American Principles Project and the Gold Standard Institute.
Senator Chester Crandell, a Republican and sponsor of the bill, previously said the ability to use gold and silver in everyday life in the state was still a "work in progress" and that more legislation was needed before it could be viable. He could not immediately be reached for comment.
Democratic state Senator Steve Farley, an opponent of the measure who had warned it could create massive problems for businesses and government officials trying to administer what would in effect be a dual monetary system, welcomed the veto.
"I was very pleased the governor showed the common sense to realize this was a terrible move for Arizona that would have caused incredible negative consequences at a government and business level," Farley told Reuters.
Had Brewer signed the measure, Arizona would have become the second state in the nation to establish the precious metals as legal tender. Utah approved such legislation in 2011.
(Editing by Cynthia Johnston and Eric Walsh)
end
From my hometown, Hamilton: fake USA Silver Bullion eagles flooded Hamilton pawn shops.
Over 500 fake USA eagles discovered. They were silver and nickel plated with brass inside.
Please buy your coins only from reputable dealers.
(courtesy CBC)
Fake U.S Silver Eagle coins soaring through Hamilton, police say
Hamilton Police say they've gathered over 500 fake U.S Silver Eagle coins sold across the city over the past few months.
Hamilton coin collectors and pawn shops are getting duped.
Police are warning that fake U.S silver eagle dollar coins have been circulating in the city and have been sold to various establishments over the past few months.
"You wouldn't be able to tell the difference (with) the naked eye. The coins are actually very high quality fakes," Const. Mike La Combe said in a Hamilton Police YouTube video. "They are silver and nickel-plated, which gives them the look of an actual silver dollar. However, when you cut them open, you can clearly see on the inside, they are brass filled."
The video shows some of the roughly 500 fakes that have been confiscated so far.
"They are worth practically nothing, just a couple cents each," La Combe explained.
LaCombe is a pawn unit investigator and says the coins are being bought online, then sold at "golden" times for the seller when shops are busy or with little staff. During the rush, employees may not have the time to do all the proper authenticity checks, giving criminals the chance to sell fast without getting caught.
"Only buy them from reputable dealers, a place that is established, an expert who works there who knows the difference between real and fake. Don't buy them off the internet. and don't buy them from people from the public who aren't considered experts because more than likely you're going to get a fake," added Le Combe.
and finally, these conversations with Kingworld news with Bill Haynes/Von Greyerz, James Turk.
also Mike Maloney advises how to detect counterfeit coins.
Demand for metal remains enormous; fake silver eagles discovered in Ontario
Submitted by cpowell on Sat, 2013-05-04 01:11. Section: Daily Dispatches
9:14p ET Friday, May 3, 2013
Dear Friend of GATA and Gold:
Bill Haynes of CMI Gold and Silver in Phoenix tells King World News today that the largest silver wholesaler in the United States has run out of 100-ounce bars:
Swiss gold fund manager Egon von Greyerz provides concurring evidence, reporting to King World News that gold refiners in Switzerland are working around the clock but still not keeping up with demand for real metal:
MarketWatch tonight takes also note of the extraordinary demand, quoting, among others, GoldMoney founder and GATA consultant James Turk:
CBC News in Canada reports an explosion in fake U.S. silver eagle coins being discovered in Hamilton, Ontario:
And Mike Maloney and James Anderson of GoldSilver.com give advice about how to avoid counterfeit gold and silver products:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
and......
http://www.caseyresearch.com/gsd/edition/lawrence-williams-whos-smartest-on-gold-chinese-housewives-or-george-soros
¤ YESTERDAY IN GOLD & SILVER
The gold price rallied a bit in Far East trading on their Friday...and by 11:00 a.m. in London, it was up about ten bucks from its Thursday close in New York. Then the price really took off to the upside, but within thirty minutes a not-for-profit seller appeared the moment it broke through $1,490 spot.
Then down went the price into the 8:30 a.m. Eastern time jobs numbers release in the U.S...and at that point the bid disappeared entirely and the gold price was down another $17 in two minutes flat.
The subsequent rally, along with the rally after the London p.m. gold fix, got dealt with in the usual manner...and after that, the gold price didn't do much for the rest of the Friday trading session in New York.
As I mentioned, the high of the day was a hair over the $1,490 spot mark in London...and the New York low at the release of the jobs numbers was recorded by Kitco at $1,455.40 spot.
Gold closed at $1,470.70 spot...up $3.30 from Thursday. Net volume was around 156,000 contracts.
Here's the New York Spot [Bid] chart so you can see what happened at 8:30 a.m. and 10:00 a.m. Eastern time. No shades of grey here.
The silver price action was very similar, except more 'volatile'....
)
The high of the day appeared to come in New York...not in morning trading in London. That was recorded at $24.52 spot...and the low of the day [$23.37 spot] was less than two hours before that, just minutes after the release of the jobs numbers. Another day where the intraday price move in silver was over a buck.
Silver closed at $24.13 spot...up 30 cents on the day...and one can only fantasize about its free-market closing price if it had been left to its own devices, which it obviously wasn't. Volume was very decent...around 60,000 contracts.
Here's the New York Spot Silver [Bid] chart, so you can view the New York action on its own...the only price action that really matters.
Platinum and palladium weren't spared either, but their respective sell-offs started at 1:00 p.m. in Zurich yesterday afternoon...with their low ticks coming at noon in New York.
The dollar index closed at 82.20 on Thursday afternoon in New York...and when it opened in the Far East on their Friday morning, it traded pretty much ruler flat until 2:00 p.m. Hong Kong time. From there it slid to just below the 82.00 mark before blasting higher on the 8:30 a.m EDT jobs numbers release. The high tick of the day [82.48] came within minutes...and then the index gave up all those gains within an hour or so...and traded basically flat from there, closing down 10 basis points at 82.105.
It was obvious that the gold stocks were rising along with the rest of the equity markets right from the open...but once the high was in for gold after the London p.m fix, someone was kind enough to sell the shares down into negative territory. They recovered a bit in the last few hours of the trading day...and close basically unchanged, with the HUI up a miniscule 0.03%.
With silver closing up 30 cents on the day, the silver stocks did a bit better...and Nick Laird'sIntraday Silver Sentiment Index closed up 0.97%.
(Click on image to enlarge)
Here's the Silver 7 Index that shows how things are shaking out over the longer term.
(Click on image to enlarge)
The CME's Daily Delivery Report showed that 7 gold and 57 silver contracts were posted for delivery on Tuesday within the Comex-approved depositories. In silver, it was virtually "all the usual suspects" as issuers and stoppers...and the link to that activity is here.
Another day...another decline in GLD. This time it was 116,045 troy ounces...and as of 10:04 p.m. EDT on Friday evening, there were no reported changes in SLV.
Much to my surprise, there was no sales report from the U.S. Mint yesterday.
Over at the Comex-approved depositories on Thursday, they didn't receive any silver, but they did ship 439,437 troy ounces out the door...and the link to that activity is here.
In gold on Thursday, the Comex-approved depositories reported receiving 64,083 troy ounces...and shipped 129,587 troy ounces out the door. The link to that activity is here.
Based on the reporting week' price activity, I was certainly expecting to see some deterioration in the Commercial net short position in yesterday's Commitment of Traders Report for positions held at the close of Comex trading on Tuesday...but that's not what the report showed at all. It showed big improvements in the net short positions of both silver and gold.
Silver's Commercial net short position declined by another 2,934 contracts, or 14.7 million ounces of silver. The Commercial net short position is now down to 71.2 million ounces...within an eyelash of the major lows of the last eighteen months.
The Big 4 are short 182.2 million ounces of silver...and of that amount, Ted Butler figures that JPMorgan Chase is short a hair under half of that number on its own. The '5 through 8' traders are short an additional 55.2 million ounces of the metals.
So, with JPMorgan short about 90 million ounces of silver...and the Commercial net short position at 71.2 million ounces...JPM is short about 125% of the Commercial net short position all by itself...and if their position vanished overnight, the remaining traders in that category would be net long the Comex futures market in silver.
Once you remove all the b.s. market-neutral spread trades, the Big 4 are short 34.1 percent of the Comex futures market in silver...and the '5 through 8' traders are short an additional 10.4 percentage points of the Comex futures market. JPMorgan is short about 17 percent of the Comex futures market in silver all by itself.
Ted Butler said on the phone yesterday that, in silver, the Raptors [the Commercial traders other than the Big 8] hold their largest net long position in the history of Comex data. The Nonreportable [small] gold traders hold their smallest net long position in the history of the data. Reader E.W.F., who provides a weekly chart service for the COT Report, echoed Ted's comments.
In gold, the Commercial net short position declined by a chunky 8,825 contracts, or 8.83 million ounces...bringing the Commercial net short position down to 9.56 million ounces of gold.
The Big 4 Commercial traders are short 8.59 million ounces of gold...89.9% of the Commercial net short position! The '5 through 8' traders are short an additional 4.76 million ounces of gold. So the Big 8 in total are short 13.35 million ounces of gold, or 140% of the Commercial net short position.
On a net basis, with all the b.s. spread trades subtracted out, the Big 4 are short 24.5% of the entire Comex futures market in gold...and the '5 through 8' traders are short an additional 13.5 percentage points. So the Big 8 in total are short 38% of the entire futures market in silver.
Reader E.W.F. had this to say about the gold COT Report yesterday..."The Commercials hold their smallest net short position since 09 December 2008. The gold raptors [the Commercial traders other than the Big 8] hold their largest net long position since 27 July 2010. The Nonreportable [small] gold traders are net short for the first time since 20 February 2001."
As you can tell, a major bottom is in place.
I'd be prepared to bet serious money that the largest of the Big 4 Commercial short holders in both silver and gold [and probably platinum and palladium as well] are JPMorgan Chase, Canada's Bank of Nova Scotia...and HSBC USA. The short positions of the smallest of the Big 4 traders in both gold and silver are irrelevant. It's just the Big 3...but mostly the Big 1...JPMorgan Chase.
Here's Nick Laird's "Days to Cover Short Positions" of each physically traded commodity on the Comex updated with yesterday's COT data.
(Click on image to enlarge)
Here's another chart that Nick Laird sent out way yesterday evening. It's the dollar value of gold and silver coin sales from the U.S. Mint going back to late 2007...and requires no further embellishment from me.
(Click on image to enlarge)
Today's last graph in this section is courtesy of Richard Nachbar, who I'm looking forward to breaking bread with in Vancouver in three weeks. It's the U.S. 90% Silver Coins Wholesale Dealer Bid price chart...and it, too, is self-explanatory. In his covering e-mail, Richard said that "Most of the largest dealers will pay a premium of around 15% to other dealers for minimum $1,000 face value bag deals this week."
(Click on image to enlarge)
selected news and views - non redundant.....
Fourth party in: UKIP surges in England’s by-election on anti-E.U. ticket
In the biggest surge by a fourth party in England since WWII, the UK Independence Party has won nearly a quarter of the vote in local elections where it stood. Cameron, who previously dubbed the UKIP ‘fruitcakes’, has now been forced to backtrack.
UKIP has so far won 140 council seats in 35 councils nationwide, meaning that the party had polled roughly 25 per cent of the vote.
With the political landscape shifting significantly overnight, PM David Cameron, who in 2006 dubbed UKIP "fruitcakes and loonies and closet racists mostly ", called Friday for more respect to the party and its voters.
"It's no good insulting a political party that people have chosen to vote for ," the prime minister told the BBC when he was asked whether he still stood by his previous comment.
I'm delighted that Nigel and his party did so well. They deserve to...and the British establishment is now on notice that a "sea change" is afoot in the U.K. This Russia Today story from yesterday falls into the must read category if you're a Nigel Farage fan. I thank Roy Stephens once again for sending it our way.
Poor Italy…! Same people running same show
After learning that Enrico Letta is Italy’s new prime minister, I offer my sympathies to Italians. To say the usual suspects are back is to underline the plight of the Italian people as they are made poorer by the politicians who run their country.
In the game of Italian prime ministers: the Trilateral Commission’s European Chairman Mario Monti is out; and Trilateral Commission Member Enrico Letta is in. Long live the Trilateral Commission!
It seems that there is just nothing any country in the West can do to free itself from the shackles of the Global Power Masters and their Megabankers.
This op-ed piece showed up on the Russia Today website on Tuesday morning Moscow time...and it was definitely Saturday reading material, so here it is now. I thank Roy Stephens for his final offering in today's column.
Slouching Towards Sirte: NATO's War on Libya and Africa: Maximilian Forte
The media has gone very quiet on Libya of late; clearly, liberal imperialists don't like to dwell on their crimes. This is not surprising. The modus operandi of the humanitarian imperialist is not one of informed reflection, but only permanent outrage against leaders of the global South; besides, in the topsy-turvy world of liberal interventionism, the "failure to act" is the only crime of which the West is capable.
As Forte puts it, their moral code holds that "If we do not act, we should be held responsible for the actions of others. When we do act, we should never be held responsible for our own actions." With Muammar Gaddafi dead, the hunt is on for a new hate figure on whom to spew venom (Syrian President Bashar al-Assad, North Korean leader Kim Jong-eun); far more satisfying than actually evaluating our own role in the creation of human misery. This is the colonial mentality of the liberal lynch mob.
For the governments that lead us into war, of course, it makes perfect sense that we do not stop to look back at the last invasion before impatiently demanding the next one - if we realized, for example, that the 1999 bombing of Serbia - the textbook "humanitarian intervention"- actually facilitated the ethnic cleansing of Kosovo it was supposedly designed to prevent, we might not be so ready to demand the same treatment for every other state that falls short of our illusory ideals.
"The next time empire comes knocking in the name of human rights", concludes Forte, "please be found standing idly by".
This book is a must-read for anyone seriously interested in understanding the motives and consequences of the West's onslaught against Libya and African development.
There are book reviews...and there are book reviews like this one. No holds barred anywhere. It's a long read...but an absolute must read for all students of the "New Great Game". It appeared on the Asia Times website on April 25th...and I've been saving it for today. I thank Swiss reader B.G. for bringing it to my attention...and now to yours.
Six King World News Blogs/Audio Interviews
1. John Hathaway: "I Haven't Seen This in Gold in 15 Years". 2. Dr. Paul Craig Roberts: "Former U.S. Treasury Official - Today's Jobs Report a Total Farce". 3. Egon von Greyerz: "Swiss Refiners Unable to Keep Up With Massive Gold Demand". 4. Bill Haynes: "Largest Wholesaler in U.S. Sold Out of 100 Ounce Silver Bars". 5. The first audio interview is with Dr. Stephen Leeb...and the second audio interview is with Jean-Marie Eveillard.
Special Report - How to Avoid Fake Silver and Counterfeit Gold Products
If you have followed gold and silver market news over the past few years, it is likely you have seen various reports on fake gold and silver products.
In March 2012, a 1-kilo tungsten gold bar turned up in the United Kingdom.
Then in September 2012 there were reports on a slew of 10-oz. tungsten gold bars bought and sold in New York's jewelry district.
The big problem with these news reports is that they have given little to no solution on how the public at large can avoid fake bullion products.
First of all, dear reader, this will NEVER happen if you buy from a reputable dealer, as their reputation is everything...and if they do get caught out by accident, they will certainly make their client[s] whole. This 16:12 minute video was posted on the goldsilver.com Internet site on Tuesday...and is worth your time.
Who’s smartest on gold – Chinese housewives or George Soros?
The huge surge of purchasing by Chinese - particularly Chinese women – is reported to have amounted to more than 10% of annual global mined gold output in just 2 weeks of frenzied buying.
On the face of things the answer to the question posed by the title should be obvious – but.... What prompted the question is a whole rash of Internet headlines regarding a mad rush to purchase gold by the Chinese over the May Day holiday. By all accounts gold bullion and jewellery dealers were overwhelmed by the numbers of people flooding in to buy gold – particularly in Hong Kong where premiums were believed to be not as high as on the mainland.
Some of the headlines seen were as follows: China Gold Mania - Coins, Bars and Jewelry Sales Surge 108% on Goldseek; Chinese housewives buy 300 tons of gold on Marketwatch; HONG KONG gold retailers overwhelmed by mainland shoppers on China Daily; CHINA - Gold Helps China May Day Sales Rise 20% on Forbes; CHINA - Housewives' gold rush keeps price from falling on People’s Daily online etc.
See also: Many of these were illustrated with pictures of throngs of purchasers – mostly women (the Chinese housewives). And while Soros, who has liquidating most, if not all, of his SPDR Gold Trust holding (in retrospect a pretty smart move), could perhaps be missing out on something here, given the flood of Chinese (and other) demand unless of course he has quietly been rebuilding his gold holdings in some other form – bullion maybe or gold stocks.
This must read story by Lawrie Williams was posted on the mineweb.comInternet site early yesterday morning BST...and I thank Ulrike Marx for providing the last item in today's column.
¤ THE WRAP
Whenever you find yourself on the side of the majority, it is time to pause and reflect. ~ Mark Twain
Today's pop 'blast from the past' is a timeless classic that will never grow old...and puts modern-day popular music to shame. This 1976 hit was one of two that made the band famous. This youtube.comvideo has Spanish subtitles...but the video itself is the original. So turn up your speakers...and then click here. Feel free to sing along.
Today's classical 'blast from the past' comes from the early 18th century. The Brandenburg concertos by Johann Sebastian Bach (BWV 1046-1051...original title: Six Concerts à plusieurs instruments) are a collection of six instrumental works presented by Bach to Christian Ludwig, Margrave of Brandenburg-Schwedt. They are widely regarded as among the finest musical compositions of the Baroque era.
Bach's dedication to the Margrave was dated 24 March 1721. Bach most likely composed the concertos over several years while Kapellmeister at Köthen, and possibly extending back to his employment at Weimar (1708-17).
Doing the honours in this video is the Freiburg Baroque Orchestra...and all six concertos are included in this youtube.com video which runs for 92 minutes. The recordings are first rate...as is the musicianship of the players. I noted lots of period instruments in the orchestra as well. It's a feast for the ears...and the eyes. This would definitely make my 'desert island recording' list...and with almost a million hits, lots of other Bach-lovers think so as well. The link is here.
I'd forgotten all about the jobs report coming out yesterday at 8:30 a.m. Eastern time, so the obligatory smash-down in both gold and silver [but not platinum and palladium] at that time, should have come as no surprise to me, or anyone else for that matter...as the foot prints of JPMorgan Chaseet al were visible everywhere in the precious metal markets yesterday.
As I mentioned further up, I was more than taken aback with yesterday's Commitment of Traders Report, as the price action during the reporting week would normally indicate a deterioration of the Commercial net short position but, as you know, that didn't happen.
I'm beginning to suspect that all the data that should have been in the COT Report of two weeks ago was fed into the market over the last couple of week's COT Reports just so that the public couldn't get a clear picture of exactly what happened during that two day engineered price decline. Why "da boyz" would do that is not clear to me, but no other explanation makes sense. A short covering rally required to produce the numbers we saw yesterday, would certainly have driven the prices of both gold and silver to the moon, as there is zero liquidity in the Comex futures market right now...and JPMorgan et al have been capping every rally for that very reason.
Gold closed just above its 20-day moving average yesterday...and silver is close behind, but not there yet...and if you're looking to me for any indication as to what might happen next week, you're looking at the wrong guy. I haven't a clue. But as I said yesterday in this space...I know what should happen, but will it be allowed? I suppose we'll find out soon enough.
Here's the 20-year chart of the "Total PMs Pool" that Nick Laird has hidden away on his website, but I have permission to use. As you can see from this graph, the tempest-in-a-teapot removals from GLD that we've been watching over the last four or five months, barely registers in the grand scheme of things. So I urge everyone to take the blue pill next time they start worrying about this.
(Click on image to enlarge)
That's all I have for today, which is more than enough. Enjoy what's left of your weekend...and I'll see you here on Tuesday.
http://silverdoctors.com/fed-to-replace-qe-with-outright-money-printing/#more-26132
FED TO REPLACE QE WITH OUTRIGHT MONEY PRINTING?
May 3/2013
Ounces
| |
Withdrawals from Dealers Inventory in oz
|
nil
|
Withdrawals from Customer Inventory in oz
|
129,587.76 oz (HSBC, Scotia)
|
Deposits to the Dealer Inventory in oz
|
nil
|
Deposits to the Customer Inventory, in oz
| 64,083.57 (HSBC,Scotia) |
No of oz served (contracts) today
|
48 (4800 oz)
|
No of oz to be served (notices)
|
167 (16,700)
|
Total monthly oz gold served (contracts) so far this month
|
1753 (175,300)
|
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 0 dealer withdrawals.
We had 2 customer deposits today:
i)Into HSBC: 31,976.800 oz
ii) Into Scotia: 32,106.770 oz
total customer deposit: 64,083.57 oz
We had 2 customer withdrawals:
i) Out of HSBC: 65,425.336 oz
ii) Out of Scotia: 64,162.432
total withdrawal: 129,587.76 oz
We had 1 big adjustments
1.From the Scotia vault: 106,312.088 oz is adjusted out of the dealer account into the customer account
1.From the Scotia vault: 106,312.088 oz is adjusted out of the dealer account into the customer account
Thus the dealer inventory rests tonight to rest this weekend at a new low of 1.875 million oz (58.32) tonnes of gold.
The total of all gold declines again at the comex and this time just above the 8 million oz as it rests at 8.033 million oz or 249.8 tonnes.
Ladies and Gentlemen: gold is continually leaving the comex vaults, especially in 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 total of all gold declines again at the comex and this time just above the 8 million oz as it rests at 8.033 million oz or 249.8 tonnes.
Ladies and Gentlemen: gold is continually leaving the comex vaults, especially in 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 48 notices filed today for 4800 oz of gold today.
To calculate the quantity of gold ounces that will stand, I take the OI standing for May (215) and subtract out Friday's notices (48) which leaves us with 167 notices or 16,700 oz left to be served upon our longs.
To calculate the quantity of gold ounces that will stand, I take the OI standing for May (215) and subtract out Friday's notices (48) which leaves us with 167 notices or 16,700 oz left to be served upon our longs.
Thus we have the following gold ounces standing for metal in May:
1753 contracts x 100 oz per contract or 175,300 oz (served) + 167 notices or 16,700 oz (to be served upon) = 192,000 oz or 5.97 tonnes of gold.
This is extremely high for a non active month. We gained an extra 6600 oz standing for May today.
Silver:
May 3.2013: May silver:
Silver
Ounces
Withdrawals from Dealers Inventory 204,097.65 (Brinks) Withdrawals from Customer Inventory 235,339.728 oz (Delaware ,CNT, HSBC,Scotia ) Deposits to the Dealer Inventory nil Deposits to the Customer Inventory nil No of oz served (contracts) 241 contracts ( 1,205,000 oz) No of oz to be served (notices) 934 (4,670,000 oz) Total monthly oz silver served (contracts) 2323 (11,615,000 oz) Total accumulative withdrawal of silver from the Dealers inventory this month 204,097.65 Total accumulative withdrawal of silver from the Customer inventory this month 876,160.12
Today, we had good activity inside the silver vaults.
we had 0 dealer deposits and 1 dealer withdrawals.
i) Out of the Brinks vault: 204,097.65 oz was withdrawn
total dealer withdrawal: 204,097.65 oz
We had 0 customer deposits:
Total deposits: nil oz
We had 4 customer withdrawals:
1) Out of Delaware: 13,236.519 oz
ii) Out of CNT: 16,036.65 oz
iii) Out of HSBC: 5,263.619 oz
iv) Out of Scotia: 200,802.94 oz
total withdrawal: 235,339.728 oz
we had 1 adjustments:
i) Out of CNT: 410,898.95 oz was adjusted out of the customer and back into the dealer account
Registered silver at : 45.672 million oz
total of all silver: 165.642 million oz.
The CME reported that we had 241 notices filed for 1,205,000. To calculate the number of ounces that will stand in silver, I take the OI standing for May (1175) and subtract out Friday's notices (241) which leaves us with 943 notices or 4,670,000 oz
Thus the total number of silver ounces standing in this active delivery month of May is as follows:
2323 contracts x 5000 oz per contract (served) = 11,615,000 + 934 contracts x 5000 oz = 4,670,000 oz ( to be served) = 16,285,000 oz.
Two important points today:
Silver:
May 3.2013: May silver:
| Silver |
Ounces
|
| Withdrawals from Dealers Inventory | 204,097.65 (Brinks) |
| Withdrawals from Customer Inventory | 235,339.728 oz (Delaware ,CNT, HSBC,Scotia ) |
| Deposits to the Dealer Inventory | nil |
| Deposits to the Customer Inventory | nil |
| No of oz served (contracts) | 241 contracts ( 1,205,000 oz) |
| No of oz to be served (notices) | 934 (4,670,000 oz) |
| Total monthly oz silver served (contracts) | 2323 (11,615,000 oz) |
| Total accumulative withdrawal of silver from the Dealers inventory this month | 204,097.65 |
| Total accumulative withdrawal of silver from the Customer inventory this month | 876,160.12 |
Today, we had good activity inside the silver vaults.
we had 0 dealer deposits and 1 dealer withdrawals.
i) Out of the Brinks vault: 204,097.65 oz was withdrawn
total dealer withdrawal: 204,097.65 oz
We had 0 customer deposits:
Total deposits: nil oz
We had 4 customer withdrawals:
1) Out of Delaware: 13,236.519 oz
i) Out of the Brinks vault: 204,097.65 oz was withdrawn
total dealer withdrawal: 204,097.65 oz
We had 0 customer deposits:
Total deposits: nil oz
We had 4 customer withdrawals:
1) Out of Delaware: 13,236.519 oz
ii) Out of CNT: 16,036.65 oz
iii) Out of HSBC: 5,263.619 oz
iv) Out of Scotia: 200,802.94 oz
total withdrawal: 235,339.728 oz
iii) Out of HSBC: 5,263.619 oz
iv) Out of Scotia: 200,802.94 oz
total withdrawal: 235,339.728 oz
we had 1 adjustments:
i) Out of CNT: 410,898.95 oz was adjusted out of the customer and back into the dealer account
i) Out of CNT: 410,898.95 oz was adjusted out of the customer and back into the dealer account
Registered silver at : 45.672 million oz
total of all silver: 165.642 million oz.
The CME reported that we had 241 notices filed for 1,205,000. To calculate the number of ounces that will stand in silver, I take the OI standing for May (1175) and subtract out Friday's notices (241) which leaves us with 943 notices or 4,670,000 oz
Thus the total number of silver ounces standing in this active delivery month of May is as follows:
2323 contracts x 5000 oz per contract (served) = 11,615,000 + 934 contracts x 5000 oz = 4,670,000 oz ( to be served) = 16,285,000 oz.
Two important points today:
Thus the total number of silver ounces standing in this active delivery month of May is as follows:
2323 contracts x 5000 oz per contract (served) = 11,615,000 + 934 contracts x 5000 oz = 4,670,000 oz ( to be served) = 16,285,000 oz.
Two important points today:
1. we gained 1.505 million oz of silver standing.
2. We have now fully surpassed what was outstanding on first day notice.
If you will recall, we have 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.
GLD still losing gold ....... almost ten tons gone between 5/3 and 5/1
May 3.2013:
May 2.2013:
May 1.2013:
Tonnes1,065.61
Ounces34,260,271.68
Value US$50.311 billion
May 2.2013:
Tonnes1,069.21
Ounces34,376,316.61
Value US$50.482 billion
May 1.2013:
Tonnes1,075.23
Ounces34,569,726.95
Value US$50.265 billion
Harvey's take on Commitment of Traders reports....
At 3:30 pm we get the COT report where we see position levels of our major players.
Let us head over to the gold COT and see what we can glean from it:
Gold COT Report - Futures
Large Speculators
Commercial
Total
Long
Short
Spreading
Long
Short
Long
Short
193,310
96,258
20,115
170,211
265,774
383,636
382,147
Change from Prior Reporting Period
-3,878
3,325
-1,772
14,080
5,255
8,430
6,808
Traders
137
96
73
60
52
229
195
Small Speculators
Long
Short
Open Interest
37,451
38,940
421,087
-2,417
-795
6,013
non reportable positions
Change from the previous reporting period
COT Gold Report - Positions as of
Tuesday, April 30, 2013
Very strange report:
Our large speculators:
Those large speculators that have been long in gold pitched 3878 contracts from the long side as they have basically given up
Those large speculators that have been short in gold added another 3325 contracts to their short side.
Our commercials;
Those commercials who are close to the physical scene and are long in gold added a very hefty 14,080 contracts to their long side.
Those commercials who are short in gold added another 5255 contracts to their short side.
Our small specs;
Those small specs who are long in gold, pitched a rather large 2417 contracts from their long side
Those small specs who are short in gold, covered 795 contracts from their short side.
Conclusions:
The commercials went net long by 8825 contracts and that is very bullish
The large specs went net short by 7203 contracts and that is bullish
The small specs went net short by 1622 contracts and that is bullish.
I am doubting the accuracy of the figures we have been given.
And now for the silver COT:
Silver COT Report: Futures
Large Speculators
Commercial
Long
Short
Spreading
Long
Short
35,720
23,530
23,400
65,685
79,915
-3,097
-286
-7,713
-2,573
-5,507
Traders
57
55
45
40
38
Small Speculators
Open Interest
Total
Long
Short
143,477
Long
Short
18,672
16,632
124,805
126,845
-2,110
-1,987
-15,493
-13,383
-13,506
non reportable positions
Positions as of:
123
119
Tuesday, April 30, 2013
© SilverSeek.com
Strange report and different from gold.
Our large specs:
Those large specs that have been long in silver pitched a hefty 3097 contracts from their long side.
Those large specs that have been short in silver added a tiny 286 contracts to their short side.
Our famous commercials:
Those commercials that have been long in silver pitched a rather large 2573 contracts from their long side (in total contract to gold)
Those commercials that have been short in silver covered a rather large 5507 contracts from their short side (in total contrast to gold)
Our small specs:
Those small specs that have been long in silver covered 2110 contracts from their long side
Those small specs that have been short in silver covered 1987 contracts from their short side.
Conclusions:
The commercials went net long by 2934 contracts and that is bullish
The large specs went net short by 2811 contracts and that is bullish
The small specs went net short by 123 contracts and that is a little bullish.
Gene Arensberg discusses in detail the disaggregated report and it shows that for the first time, the little guys are net short of gold and the bankers have reduced their short positions like never before. The hedge funds have sold short in this latest gold rally, believing that gold will fall. The banks are taking the opposite view.
a very important read for you
(courtesy Gene Arensberg/technical analysis of the COT)
Gene Arensberg: Small traders are net short gold for first time as big traders cover
Submitted by cpowell on Sat, 2013-05-04 03:09. Section: Daily Dispatches
11p ET Friday, May 3, 2013
Dear Friend of GATA and Gold:
The Got Gold Report's Gene Arensberg discloses tonight that small futures traders have done what they have never done before -- gone net short in gold -- while the big traders are furiously covering their short positions. Arensberg's report is posted at the GGR Internet site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
end
Selected news and views .....
Another example of the huge demand for physical gold. Hong Kong retailers just overwhelmed by shoppers coming from mainland China
(courtesy China Daily, Beijing)
Hong Kong gold retailers overwhelmed by mainland shoppers
Submitted by cpowell on Fri, 2013-05-03 03:40. Section: Daily Dispatches
By Gao Changxin
China Daily, Beijing
Thursday, May 2, 2013
HONG KONG -- Hong Kong retailers report they were swamped over the three-day May Day holiday by tens of thousands of mainlanders in search of one thing: cheap gold.
After the recent slump in gold prices, Hong Kong's already healthy community of gold shops, mainly in its traditional tourist areas, has increased with a flurry of new openings. But traders report they have been overwhelmed by the mainland shoppers.
Gold prices in Hong Kong are lower than on the mainland.
On Wednesday in Causeway Bay there were long queues outside shops, which blocked the popular shopping area's narrow streets and sidewalks.
"It's cheap, so what else do you need to know?" said Wang Zhongxin, a shopper from Shanghai as he left one Chow Tai Fook outlet.
He had spent around 30,000 yuan ($4,760), twice the monthly average wage in Hong Kong, on three gold necklaces and a couple of rings. He said he wanted to buy bullion but they had already sold out.
Wang's mentality echoed that of many mainland gold shoppers, who believe the recent price slump had opened a perfect window to stock up on the precious metal.
"The gold price will definitely rise in the long term," he added.
Shoppers like Wang have been emptying gold stores on the mainland before coming to Hong Kong.
Beijing Caishikou Department Store, the biggest gold retailer in Beijing, has been seeing daily sales worth up to 100 million yuan since late April, several times their usual sales. Local media reported that the store had taken on extra staff to cope with the gold rush.
The China Gold Association reported that gold sales had tripled on many days.
The price of gold bullion has so far fallen 14 percent this year as investors worldwide sold the metal after a decade-long rally.
Gold spot traded at $1,473.18 per ounce on Wednesday, around 7 percent lower than on April 11, the day before a 14 percent two-day tumble, the worst since 1983.
But many institutional investors have viewed the price slump as temporary and an over-reaction.
Mitul Kotecha, head of global markets research Asia and global head of foreign exchange strategy with Credit Agricole, wrote in a research note last month that the recent sharp drop in the price of gold looked "overdone," with some "bargain hunting" likely, in terms of jewelry demand.
Over the longer term, he added, central bank diversification into gold will lend some support and limit the pace of the price decline.
"We will likely see a slower pace of price decline, underpinned by continued purchases from the official sector," he wrote.
HSBC Holdings PLC said it believed a pickup in demand from China and India, combined with producers cutting their supplies, will support a stable recovery in the gold price.
Chinese customers are not the only ones snapping up bargain gold.
Gold coin sales by the United States Mint are heading for their highest levels in three years.
Sales totaled 209,500 ounces in April, up from 62,000 ounces a month earlier, data on the mint's website revealed. The amount for December 2009 was 231,500 ounces.
Demand for gold in India, the world's biggest consumer, is double the level for this time of year, Rajesh Mehta, chairman of Rajesh Exports Ltd., told Bloomberg on Wednesday.
end
the moment China announces that they have 4,000 tonnes of official gold, you will see the greatest panic to purchase this ancient metal of kings:
(courtesy Neilson/bullionbullscanada.com/Gata)
Jeff Nielson: China's real gold reserves at 4,000 tonnes?
Submitted by cpowell on Fri, 2013-05-03 19:23. Section: Daily Dispatches
3:20p ET Friday, May 3, 2013
Dear Friend of GATA and Gold:
Jeff Nielson of Bullion Bulls Canada writes today that China has probably raised its gold reserves to as much as 4,000 tonnes, far beyond the 1,054 announced in 2008 and reported officially today, and that it is probably talking gold down so it can get more metal inexpensively. Nielson's commentary is headlined "China's Real Gold Reserves at 4,000 Tonnes?" and it's posted at Bullion Bulls Canada here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
end
another financial analyst now believes that gold has been manipulated:
(Kingworldnews/John Hathaway)
Somebody is 'sitting on the gold price,' Tocqueville's Hathaway says
Submitted by cpowell on Fri, 2013-05-03 03:32. Section: Daily Dispatches
11:30p ET Thursday, May 2, 2013
Dear Friend of GATA and Gold:
Interviewed tonight by King World News, Tocqueville Gold Fund manager John Hathaway gets closer than ever to acknowledging gold market manipulation. Hathaway observes that someone -- "whoever" -- "is sitting on the gold price." Maybe in his next interview with King World News Hathaway will be emboldened to speculate on that someone's initials. Maybe "B.B."? And not the "Big Brother" of George Orwell's novel "1984" but the "B.B." who in testimony to Congress in July 2011 affected to believe that central banks hold gold only as "tradition":
An excerpt from Hathaway's interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Krugerrand sales soar following the big raid on gold in the last month:
(courtesy Ed Steer commentary/SouthAfrican.com)
Krugerrand sales soar following gold price slump
The Scoin Shop, the UK and the world’s only gold coin retail chain, has reported a 468 percent increase in Krugerrand sales, above average weekly sales of the bullion coins, directly linked to the fall in international gold prices.
Alan Demby, an international bullion expert since 1978, founder of the Scoin Shop and chairman of the South African Gold Coin Exchange, commented, “Since the gold price has dropped we have seen an enormous interest in buying gold at what is seen as a competitive rate – many of our existing clients in both the UK and South Africa see it as a tremendous buying opportunity they would otherwise not have.
“Having closely monitored gold’s performance over 40 years I can safely say that the media and gold skeptics have got it wrong on this occasion: it is not bad news. Gold is smart money at a time when currencies have never been so volatile. We only have to look at the Eurozone or America’s $16 trillion dollar debt to know that gold is the one tangible currency which can be used against depleted cash reserves which are liable to devalue further.
This story was posted on thesouthafrican.com Internet site late yesterday afternoon local time in Johannesburg...and it's courtesy of Matthew Nel.
Read more...
end
And the fight goes on for honest money:
(courtesy Gaynor/Reuters)
Arizona governor vetoes bill making gold, silver legal tender
By Tim Gaynor | Reuters –
By Tim Gaynor
PHOENIX (Reuters) - Arizona Governor Jan Brewer vetoed a measure on Thursday that would have made gold and silver legal tender in the state, saying the legislation could have resulted in lost tax revenue.
The Republican-controlled state legislature voted through the measure last month in a response to what backers said was a lack of confidence in the international monetary system.
The bill called for Arizona to make gold and silver coins and bullion legal tender beginning in mid-2014, joining existing U.S. currency issued by the federal government.
"While I believe the concern over a devalued dollar as a result of an unsustainable federal deficit is justified, I am unable to support this legislation," Brewer, a Republican, said in an open letter to stateSenate President Andy Biggs.
Brewer noted that the "administrative and fiscal burdens" for taxpayers and the revenue department "remain vague." She also cited uncertainty over whether the legislation would have required the state to exempt transactions involving collectable coins and bills that were authorized by Congress and could be used as legal tender.
"This would result in lost revenue to the state, while giving businesses that buy and sell collectable coins or currency originally authorized by Congress an unfair tax advantage," she said.
The push to establish gold and silver as currency has become increasingly popular in the United States in recent years among some hardline fiscal conservatives, with the backing of groups including the Tea Party movement, American Principles Project and the Gold Standard Institute.
Senator Chester Crandell, a Republican and sponsor of the bill, previously said the ability to use gold and silver in everyday life in the state was still a "work in progress" and that more legislation was needed before it could be viable. He could not immediately be reached for comment.
Democratic state Senator Steve Farley, an opponent of the measure who had warned it could create massive problems for businesses and government officials trying to administer what would in effect be a dual monetary system, welcomed the veto.
"I was very pleased the governor showed the common sense to realize this was a terrible move for Arizona that would have caused incredible negative consequences at a government and business level," Farley told Reuters.
Had Brewer signed the measure, Arizona would have become the second state in the nation to establish the precious metals as legal tender. Utah approved such legislation in 2011.
(Editing by Cynthia Johnston and Eric Walsh)
end
From my hometown, Hamilton: fake USA Silver Bullion eagles flooded Hamilton pawn shops.
Over 500 fake USA eagles discovered. They were silver and nickel plated with brass inside.
Please buy your coins only from reputable dealers.
(courtesy CBC)
Fake U.S Silver Eagle coins soaring through Hamilton, police say
Hamilton Police say they've gathered over 500 fake U.S Silver Eagle coins sold across the city over the past few months.
Hamilton coin collectors and pawn shops are getting duped.
Police are warning that fake U.S silver eagle dollar coins have been circulating in the city and have been sold to various establishments over the past few months.
"You wouldn't be able to tell the difference (with) the naked eye. The coins are actually very high quality fakes," Const. Mike La Combe said in a Hamilton Police YouTube video. "They are silver and nickel-plated, which gives them the look of an actual silver dollar. However, when you cut them open, you can clearly see on the inside, they are brass filled."
The video shows some of the roughly 500 fakes that have been confiscated so far.
"They are worth practically nothing, just a couple cents each," La Combe explained.
LaCombe is a pawn unit investigator and says the coins are being bought online, then sold at "golden" times for the seller when shops are busy or with little staff. During the rush, employees may not have the time to do all the proper authenticity checks, giving criminals the chance to sell fast without getting caught.
"Only buy them from reputable dealers, a place that is established, an expert who works there who knows the difference between real and fake. Don't buy them off the internet. and don't buy them from people from the public who aren't considered experts because more than likely you're going to get a fake," added Le Combe.
and finally, these conversations with Kingworld news with Bill Haynes/Von Greyerz, James Turk.
also Mike Maloney advises how to detect counterfeit coins.
Demand for metal remains enormous; fake silver eagles discovered in Ontario
Submitted by cpowell on Sat, 2013-05-04 01:11. Section: Daily Dispatches
9:14p ET Friday, May 3, 2013
Dear Friend of GATA and Gold:
Bill Haynes of CMI Gold and Silver in Phoenix tells King World News today that the largest silver wholesaler in the United States has run out of 100-ounce bars:
Swiss gold fund manager Egon von Greyerz provides concurring evidence, reporting to King World News that gold refiners in Switzerland are working around the clock but still not keeping up with demand for real metal:
MarketWatch tonight takes also note of the extraordinary demand, quoting, among others, GoldMoney founder and GATA consultant James Turk:
CBC News in Canada reports an explosion in fake U.S. silver eagle coins being discovered in Hamilton, Ontario:
And Mike Maloney and James Anderson of GoldSilver.com give advice about how to avoid counterfeit gold and silver products:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
and......
http://www.caseyresearch.com/gsd/edition/lawrence-williams-whos-smartest-on-gold-chinese-housewives-or-george-soros
¤ YESTERDAY IN GOLD & SILVER
The gold price rallied a bit in Far East trading on their Friday...and by 11:00 a.m. in London, it was up about ten bucks from its Thursday close in New York. Then the price really took off to the upside, but within thirty minutes a not-for-profit seller appeared the moment it broke through $1,490 spot.
Then down went the price into the 8:30 a.m. Eastern time jobs numbers release in the U.S...and at that point the bid disappeared entirely and the gold price was down another $17 in two minutes flat.
The subsequent rally, along with the rally after the London p.m. gold fix, got dealt with in the usual manner...and after that, the gold price didn't do much for the rest of the Friday trading session in New York.
As I mentioned, the high of the day was a hair over the $1,490 spot mark in London...and the New York low at the release of the jobs numbers was recorded by Kitco at $1,455.40 spot.
Gold closed at $1,470.70 spot...up $3.30 from Thursday. Net volume was around 156,000 contracts.
Here's the New York Spot [Bid] chart so you can see what happened at 8:30 a.m. and 10:00 a.m. Eastern time. No shades of grey here.
The silver price action was very similar, except more 'volatile'....)
The high of the day appeared to come in New York...not in morning trading in London. That was recorded at $24.52 spot...and the low of the day [$23.37 spot] was less than two hours before that, just minutes after the release of the jobs numbers. Another day where the intraday price move in silver was over a buck.
Silver closed at $24.13 spot...up 30 cents on the day...and one can only fantasize about its free-market closing price if it had been left to its own devices, which it obviously wasn't. Volume was very decent...around 60,000 contracts.
Here's the New York Spot Silver [Bid] chart, so you can view the New York action on its own...the only price action that really matters.
Platinum and palladium weren't spared either, but their respective sell-offs started at 1:00 p.m. in Zurich yesterday afternoon...with their low ticks coming at noon in New York.
The dollar index closed at 82.20 on Thursday afternoon in New York...and when it opened in the Far East on their Friday morning, it traded pretty much ruler flat until 2:00 p.m. Hong Kong time. From there it slid to just below the 82.00 mark before blasting higher on the 8:30 a.m EDT jobs numbers release. The high tick of the day [82.48] came within minutes...and then the index gave up all those gains within an hour or so...and traded basically flat from there, closing down 10 basis points at 82.105.
It was obvious that the gold stocks were rising along with the rest of the equity markets right from the open...but once the high was in for gold after the London p.m fix, someone was kind enough to sell the shares down into negative territory. They recovered a bit in the last few hours of the trading day...and close basically unchanged, with the HUI up a miniscule 0.03%.
With silver closing up 30 cents on the day, the silver stocks did a bit better...and Nick Laird'sIntraday Silver Sentiment Index closed up 0.97%.
(Click on image to enlarge)
Here's the Silver 7 Index that shows how things are shaking out over the longer term.
(Click on image to enlarge)
The CME's Daily Delivery Report showed that 7 gold and 57 silver contracts were posted for delivery on Tuesday within the Comex-approved depositories. In silver, it was virtually "all the usual suspects" as issuers and stoppers...and the link to that activity is here.
Another day...another decline in GLD. This time it was 116,045 troy ounces...and as of 10:04 p.m. EDT on Friday evening, there were no reported changes in SLV.
Much to my surprise, there was no sales report from the U.S. Mint yesterday.
Over at the Comex-approved depositories on Thursday, they didn't receive any silver, but they did ship 439,437 troy ounces out the door...and the link to that activity is here.
In gold on Thursday, the Comex-approved depositories reported receiving 64,083 troy ounces...and shipped 129,587 troy ounces out the door. The link to that activity is here.
Based on the reporting week' price activity, I was certainly expecting to see some deterioration in the Commercial net short position in yesterday's Commitment of Traders Report for positions held at the close of Comex trading on Tuesday...but that's not what the report showed at all. It showed big improvements in the net short positions of both silver and gold.
Silver's Commercial net short position declined by another 2,934 contracts, or 14.7 million ounces of silver. The Commercial net short position is now down to 71.2 million ounces...within an eyelash of the major lows of the last eighteen months.
The Big 4 are short 182.2 million ounces of silver...and of that amount, Ted Butler figures that JPMorgan Chase is short a hair under half of that number on its own. The '5 through 8' traders are short an additional 55.2 million ounces of the metals.
So, with JPMorgan short about 90 million ounces of silver...and the Commercial net short position at 71.2 million ounces...JPM is short about 125% of the Commercial net short position all by itself...and if their position vanished overnight, the remaining traders in that category would be net long the Comex futures market in silver.
Once you remove all the b.s. market-neutral spread trades, the Big 4 are short 34.1 percent of the Comex futures market in silver...and the '5 through 8' traders are short an additional 10.4 percentage points of the Comex futures market. JPMorgan is short about 17 percent of the Comex futures market in silver all by itself.
Ted Butler said on the phone yesterday that, in silver, the Raptors [the Commercial traders other than the Big 8] hold their largest net long position in the history of Comex data. The Nonreportable [small] gold traders hold their smallest net long position in the history of the data. Reader E.W.F., who provides a weekly chart service for the COT Report, echoed Ted's comments.
In gold, the Commercial net short position declined by a chunky 8,825 contracts, or 8.83 million ounces...bringing the Commercial net short position down to 9.56 million ounces of gold.
The Big 4 Commercial traders are short 8.59 million ounces of gold...89.9% of the Commercial net short position! The '5 through 8' traders are short an additional 4.76 million ounces of gold. So the Big 8 in total are short 13.35 million ounces of gold, or 140% of the Commercial net short position.
On a net basis, with all the b.s. spread trades subtracted out, the Big 4 are short 24.5% of the entire Comex futures market in gold...and the '5 through 8' traders are short an additional 13.5 percentage points. So the Big 8 in total are short 38% of the entire futures market in silver.
Reader E.W.F. had this to say about the gold COT Report yesterday..."The Commercials hold their smallest net short position since 09 December 2008. The gold raptors [the Commercial traders other than the Big 8] hold their largest net long position since 27 July 2010. The Nonreportable [small] gold traders are net short for the first time since 20 February 2001."
As you can tell, a major bottom is in place.
I'd be prepared to bet serious money that the largest of the Big 4 Commercial short holders in both silver and gold [and probably platinum and palladium as well] are JPMorgan Chase, Canada's Bank of Nova Scotia...and HSBC USA. The short positions of the smallest of the Big 4 traders in both gold and silver are irrelevant. It's just the Big 3...but mostly the Big 1...JPMorgan Chase.
Here's Nick Laird's "Days to Cover Short Positions" of each physically traded commodity on the Comex updated with yesterday's COT data.
(Click on image to enlarge)
Here's another chart that Nick Laird sent out way yesterday evening. It's the dollar value of gold and silver coin sales from the U.S. Mint going back to late 2007...and requires no further embellishment from me.
(Click on image to enlarge)
Today's last graph in this section is courtesy of Richard Nachbar, who I'm looking forward to breaking bread with in Vancouver in three weeks. It's the U.S. 90% Silver Coins Wholesale Dealer Bid price chart...and it, too, is self-explanatory. In his covering e-mail, Richard said that "Most of the largest dealers will pay a premium of around 15% to other dealers for minimum $1,000 face value bag deals this week."
(Click on image to enlarge)
selected news and views - non redundant.....
Fourth party in: UKIP surges in England’s by-election on anti-E.U. ticket
In the biggest surge by a fourth party in England since WWII, the UK Independence Party has won nearly a quarter of the vote in local elections where it stood. Cameron, who previously dubbed the UKIP ‘fruitcakes’, has now been forced to backtrack.
UKIP has so far won 140 council seats in 35 councils nationwide, meaning that the party had polled roughly 25 per cent of the vote.
With the political landscape shifting significantly overnight, PM David Cameron, who in 2006 dubbed UKIP "fruitcakes and loonies and closet racists mostly ", called Friday for more respect to the party and its voters.
"It's no good insulting a political party that people have chosen to vote for ," the prime minister told the BBC when he was asked whether he still stood by his previous comment.
I'm delighted that Nigel and his party did so well. They deserve to...and the British establishment is now on notice that a "sea change" is afoot in the U.K. This Russia Today story from yesterday falls into the must read category if you're a Nigel Farage fan. I thank Roy Stephens once again for sending it our way.
Poor Italy…! Same people running same show
After learning that Enrico Letta is Italy’s new prime minister, I offer my sympathies to Italians. To say the usual suspects are back is to underline the plight of the Italian people as they are made poorer by the politicians who run their country.
In the game of Italian prime ministers: the Trilateral Commission’s European Chairman Mario Monti is out; and Trilateral Commission Member Enrico Letta is in. Long live the Trilateral Commission!
It seems that there is just nothing any country in the West can do to free itself from the shackles of the Global Power Masters and their Megabankers.
This op-ed piece showed up on the Russia Today website on Tuesday morning Moscow time...and it was definitely Saturday reading material, so here it is now. I thank Roy Stephens for his final offering in today's column.
Slouching Towards Sirte: NATO's War on Libya and Africa: Maximilian Forte
The media has gone very quiet on Libya of late; clearly, liberal imperialists don't like to dwell on their crimes. This is not surprising. The modus operandi of the humanitarian imperialist is not one of informed reflection, but only permanent outrage against leaders of the global South; besides, in the topsy-turvy world of liberal interventionism, the "failure to act" is the only crime of which the West is capable.
As Forte puts it, their moral code holds that "If we do not act, we should be held responsible for the actions of others. When we do act, we should never be held responsible for our own actions." With Muammar Gaddafi dead, the hunt is on for a new hate figure on whom to spew venom (Syrian President Bashar al-Assad, North Korean leader Kim Jong-eun); far more satisfying than actually evaluating our own role in the creation of human misery. This is the colonial mentality of the liberal lynch mob.
For the governments that lead us into war, of course, it makes perfect sense that we do not stop to look back at the last invasion before impatiently demanding the next one - if we realized, for example, that the 1999 bombing of Serbia - the textbook "humanitarian intervention"- actually facilitated the ethnic cleansing of Kosovo it was supposedly designed to prevent, we might not be so ready to demand the same treatment for every other state that falls short of our illusory ideals.
"The next time empire comes knocking in the name of human rights", concludes Forte, "please be found standing idly by".
This book is a must-read for anyone seriously interested in understanding the motives and consequences of the West's onslaught against Libya and African development.
There are book reviews...and there are book reviews like this one. No holds barred anywhere. It's a long read...but an absolute must read for all students of the "New Great Game". It appeared on the Asia Times website on April 25th...and I've been saving it for today. I thank Swiss reader B.G. for bringing it to my attention...and now to yours.
Six King World News Blogs/Audio Interviews
1. John Hathaway: "I Haven't Seen This in Gold in 15 Years". 2. Dr. Paul Craig Roberts: "Former U.S. Treasury Official - Today's Jobs Report a Total Farce". 3. Egon von Greyerz: "Swiss Refiners Unable to Keep Up With Massive Gold Demand". 4. Bill Haynes: "Largest Wholesaler in U.S. Sold Out of 100 Ounce Silver Bars". 5. The first audio interview is with Dr. Stephen Leeb...and the second audio interview is with Jean-Marie Eveillard.
Special Report - How to Avoid Fake Silver and Counterfeit Gold Products
If you have followed gold and silver market news over the past few years, it is likely you have seen various reports on fake gold and silver products.
In March 2012, a 1-kilo tungsten gold bar turned up in the United Kingdom.
Then in September 2012 there were reports on a slew of 10-oz. tungsten gold bars bought and sold in New York's jewelry district.
The big problem with these news reports is that they have given little to no solution on how the public at large can avoid fake bullion products.
First of all, dear reader, this will NEVER happen if you buy from a reputable dealer, as their reputation is everything...and if they do get caught out by accident, they will certainly make their client[s] whole. This 16:12 minute video was posted on the goldsilver.com Internet site on Tuesday...and is worth your time.
Who’s smartest on gold – Chinese housewives or George Soros?
The huge surge of purchasing by Chinese - particularly Chinese women – is reported to have amounted to more than 10% of annual global mined gold output in just 2 weeks of frenzied buying.
On the face of things the answer to the question posed by the title should be obvious – but.... What prompted the question is a whole rash of Internet headlines regarding a mad rush to purchase gold by the Chinese over the May Day holiday. By all accounts gold bullion and jewellery dealers were overwhelmed by the numbers of people flooding in to buy gold – particularly in Hong Kong where premiums were believed to be not as high as on the mainland.
Some of the headlines seen were as follows: China Gold Mania - Coins, Bars and Jewelry Sales Surge 108% on Goldseek; Chinese housewives buy 300 tons of gold on Marketwatch; HONG KONG gold retailers overwhelmed by mainland shoppers on China Daily; CHINA - Gold Helps China May Day Sales Rise 20% on Forbes; CHINA - Housewives' gold rush keeps price from falling on People’s Daily online etc.
See also: Many of these were illustrated with pictures of throngs of purchasers – mostly women (the Chinese housewives). And while Soros, who has liquidating most, if not all, of his SPDR Gold Trust holding (in retrospect a pretty smart move), could perhaps be missing out on something here, given the flood of Chinese (and other) demand unless of course he has quietly been rebuilding his gold holdings in some other form – bullion maybe or gold stocks.
This must read story by Lawrie Williams was posted on the mineweb.comInternet site early yesterday morning BST...and I thank Ulrike Marx for providing the last item in today's column.
¤ THE WRAP
Whenever you find yourself on the side of the majority, it is time to pause and reflect. ~ Mark Twain
Today's pop 'blast from the past' is a timeless classic that will never grow old...and puts modern-day popular music to shame. This 1976 hit was one of two that made the band famous. This youtube.comvideo has Spanish subtitles...but the video itself is the original. So turn up your speakers...and then click here. Feel free to sing along.
Today's classical 'blast from the past' comes from the early 18th century. The Brandenburg concertos by Johann Sebastian Bach (BWV 1046-1051...original title: Six Concerts à plusieurs instruments) are a collection of six instrumental works presented by Bach to Christian Ludwig, Margrave of Brandenburg-Schwedt. They are widely regarded as among the finest musical compositions of the Baroque era.
Bach's dedication to the Margrave was dated 24 March 1721. Bach most likely composed the concertos over several years while Kapellmeister at Köthen, and possibly extending back to his employment at Weimar (1708-17).
Doing the honours in this video is the Freiburg Baroque Orchestra...and all six concertos are included in this youtube.com video which runs for 92 minutes. The recordings are first rate...as is the musicianship of the players. I noted lots of period instruments in the orchestra as well. It's a feast for the ears...and the eyes. This would definitely make my 'desert island recording' list...and with almost a million hits, lots of other Bach-lovers think so as well. The link is here.
I'd forgotten all about the jobs report coming out yesterday at 8:30 a.m. Eastern time, so the obligatory smash-down in both gold and silver [but not platinum and palladium] at that time, should have come as no surprise to me, or anyone else for that matter...as the foot prints of JPMorgan Chaseet al were visible everywhere in the precious metal markets yesterday.
As I mentioned further up, I was more than taken aback with yesterday's Commitment of Traders Report, as the price action during the reporting week would normally indicate a deterioration of the Commercial net short position but, as you know, that didn't happen.
I'm beginning to suspect that all the data that should have been in the COT Report of two weeks ago was fed into the market over the last couple of week's COT Reports just so that the public couldn't get a clear picture of exactly what happened during that two day engineered price decline. Why "da boyz" would do that is not clear to me, but no other explanation makes sense. A short covering rally required to produce the numbers we saw yesterday, would certainly have driven the prices of both gold and silver to the moon, as there is zero liquidity in the Comex futures market right now...and JPMorgan et al have been capping every rally for that very reason.
Gold closed just above its 20-day moving average yesterday...and silver is close behind, but not there yet...and if you're looking to me for any indication as to what might happen next week, you're looking at the wrong guy. I haven't a clue. But as I said yesterday in this space...I know what should happen, but will it be allowed? I suppose we'll find out soon enough.
Here's the 20-year chart of the "Total PMs Pool" that Nick Laird has hidden away on his website, but I have permission to use. As you can see from this graph, the tempest-in-a-teapot removals from GLD that we've been watching over the last four or five months, barely registers in the grand scheme of things. So I urge everyone to take the blue pill next time they start worrying about this.
(Click on image to enlarge)
That's all I have for today, which is more than enough. Enjoy what's left of your weekend...and I'll see you here on Tuesday.
http://silverdoctors.com/fed-to-replace-qe-with-outright-money-printing/#more-26132
FED TO REPLACE QE WITH OUTRIGHT MONEY PRINTING?
At 3:30 pm we get the COT report where we see position levels of our major players.
Let us head over to the gold COT and see what we can glean from it:
Gold COT Report - Futures
| ||||||
Large Speculators
|
Commercial
|
Total
| ||||
Long
|
Short
|
Spreading
|
Long
|
Short
|
Long
|
Short
|
193,310
|
96,258
|
20,115
|
170,211
|
265,774
|
383,636
|
382,147
|
Change from Prior Reporting Period
| ||||||
-3,878
|
3,325
|
-1,772
|
14,080
|
5,255
|
8,430
|
6,808
|
Traders
| ||||||
137
|
96
|
73
|
60
|
52
|
229
|
195
|
Small Speculators
| ||||||
Long
|
Short
|
Open Interest
| ||||
37,451
|
38,940
|
421,087
| ||||
-2,417
|
-795
|
6,013
| ||||
non reportable positions
|
Change from the previous reporting period
| |||||
COT Gold Report - Positions as of
|
Tuesday, April 30, 2013
| |||||
Very strange report:
Our large speculators:
Those large speculators that have been long in gold pitched 3878 contracts from the long side as they have basically given up
Those large speculators that have been short in gold added another 3325 contracts to their short side.
Our commercials;
Those commercials who are close to the physical scene and are long in gold added a very hefty 14,080 contracts to their long side.
Those commercials who are short in gold added another 5255 contracts to their short side.
Our small specs;
Those small specs who are long in gold, pitched a rather large 2417 contracts from their long side
Those small specs who are short in gold, covered 795 contracts from their short side.
Conclusions:
The commercials went net long by 8825 contracts and that is very bullish
The large specs went net short by 7203 contracts and that is bullish
The small specs went net short by 1622 contracts and that is bullish.
I am doubting the accuracy of the figures we have been given.
And now for the silver COT:
Silver COT Report: Futures
| |||||
Large Speculators
|
Commercial
| ||||
Long
|
Short
|
Spreading
|
Long
|
Short
| |
35,720
|
23,530
|
23,400
|
65,685
|
79,915
| |
-3,097
|
-286
|
-7,713
|
-2,573
|
-5,507
| |
Traders
| |||||
57
|
55
|
45
|
40
|
38
| |
Small Speculators
|
Open Interest
|
Total
| |||
Long
|
Short
|
143,477
|
Long
|
Short
| |
18,672
|
16,632
|
124,805
|
126,845
| ||
-2,110
|
-1,987
|
-15,493
|
-13,383
|
-13,506
| |
non reportable positions
|
Positions as of:
|
123
|
119
| ||
Tuesday, April 30, 2013
|
© SilverSeek.com
| ||||
Strange report and different from gold.
Our large specs:
Those large specs that have been long in silver pitched a hefty 3097 contracts from their long side.
Those large specs that have been short in silver added a tiny 286 contracts to their short side.
Our famous commercials:
Those commercials that have been long in silver pitched a rather large 2573 contracts from their long side (in total contract to gold)
Those commercials that have been short in silver covered a rather large 5507 contracts from their short side (in total contrast to gold)
Our small specs:
Those small specs that have been long in silver covered 2110 contracts from their long side
Those small specs that have been short in silver covered 1987 contracts from their short side.
Conclusions:
The commercials went net long by 2934 contracts and that is bullish
The large specs went net short by 2811 contracts and that is bullish
The small specs went net short by 123 contracts and that is a little bullish.
Gene Arensberg discusses in detail the disaggregated report and it shows that for the first time, the little guys are net short of gold and the bankers have reduced their short positions like never before. The hedge funds have sold short in this latest gold rally, believing that gold will fall. The banks are taking the opposite view.
a very important read for you
(courtesy Gene Arensberg/technical analysis of the COT)
a very important read for you
(courtesy Gene Arensberg/technical analysis of the COT)
Gene Arensberg: Small traders are net short gold for first time as big traders cover
Submitted by cpowell on Sat, 2013-05-04 03:09. Section: Daily Dispatches
11p ET Friday, May 3, 2013
Dear Friend of GATA and Gold:
The Got Gold Report's Gene Arensberg discloses tonight that small futures traders have done what they have never done before -- gone net short in gold -- while the big traders are furiously covering their short positions. Arensberg's report is posted at the GGR Internet site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
end
Selected news and views .....
Another example of the huge demand for physical gold. Hong Kong retailers just overwhelmed by shoppers coming from mainland China
(courtesy China Daily, Beijing)
Hong Kong gold retailers overwhelmed by mainland shoppers
Submitted by cpowell on Fri, 2013-05-03 03:40. Section: Daily Dispatches
By Gao Changxin
China Daily, Beijing
Thursday, May 2, 2013
HONG KONG -- Hong Kong retailers report they were swamped over the three-day May Day holiday by tens of thousands of mainlanders in search of one thing: cheap gold.
After the recent slump in gold prices, Hong Kong's already healthy community of gold shops, mainly in its traditional tourist areas, has increased with a flurry of new openings. But traders report they have been overwhelmed by the mainland shoppers.
Gold prices in Hong Kong are lower than on the mainland.
On Wednesday in Causeway Bay there were long queues outside shops, which blocked the popular shopping area's narrow streets and sidewalks.
"It's cheap, so what else do you need to know?" said Wang Zhongxin, a shopper from Shanghai as he left one Chow Tai Fook outlet.
He had spent around 30,000 yuan ($4,760), twice the monthly average wage in Hong Kong, on three gold necklaces and a couple of rings. He said he wanted to buy bullion but they had already sold out.
Wang's mentality echoed that of many mainland gold shoppers, who believe the recent price slump had opened a perfect window to stock up on the precious metal.
"The gold price will definitely rise in the long term," he added.
Shoppers like Wang have been emptying gold stores on the mainland before coming to Hong Kong.
Beijing Caishikou Department Store, the biggest gold retailer in Beijing, has been seeing daily sales worth up to 100 million yuan since late April, several times their usual sales. Local media reported that the store had taken on extra staff to cope with the gold rush.
The China Gold Association reported that gold sales had tripled on many days.
The price of gold bullion has so far fallen 14 percent this year as investors worldwide sold the metal after a decade-long rally.
Gold spot traded at $1,473.18 per ounce on Wednesday, around 7 percent lower than on April 11, the day before a 14 percent two-day tumble, the worst since 1983.
But many institutional investors have viewed the price slump as temporary and an over-reaction.
Mitul Kotecha, head of global markets research Asia and global head of foreign exchange strategy with Credit Agricole, wrote in a research note last month that the recent sharp drop in the price of gold looked "overdone," with some "bargain hunting" likely, in terms of jewelry demand.
Over the longer term, he added, central bank diversification into gold will lend some support and limit the pace of the price decline.
"We will likely see a slower pace of price decline, underpinned by continued purchases from the official sector," he wrote.
HSBC Holdings PLC said it believed a pickup in demand from China and India, combined with producers cutting their supplies, will support a stable recovery in the gold price.
Chinese customers are not the only ones snapping up bargain gold.
Gold coin sales by the United States Mint are heading for their highest levels in three years.
Sales totaled 209,500 ounces in April, up from 62,000 ounces a month earlier, data on the mint's website revealed. The amount for December 2009 was 231,500 ounces.
Demand for gold in India, the world's biggest consumer, is double the level for this time of year, Rajesh Mehta, chairman of Rajesh Exports Ltd., told Bloomberg on Wednesday.
end
the moment China announces that they have 4,000 tonnes of official gold, you will see the greatest panic to purchase this ancient metal of kings:
(courtesy Neilson/bullionbullscanada.com/Gata)
Jeff Nielson: China's real gold reserves at 4,000 tonnes?
Submitted by cpowell on Fri, 2013-05-03 19:23. Section: Daily Dispatches
3:20p ET Friday, May 3, 2013
Dear Friend of GATA and Gold:
Jeff Nielson of Bullion Bulls Canada writes today that China has probably raised its gold reserves to as much as 4,000 tonnes, far beyond the 1,054 announced in 2008 and reported officially today, and that it is probably talking gold down so it can get more metal inexpensively. Nielson's commentary is headlined "China's Real Gold Reserves at 4,000 Tonnes?" and it's posted at Bullion Bulls Canada here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
end
another financial analyst now believes that gold has been manipulated:
(Kingworldnews/John Hathaway)
Somebody is 'sitting on the gold price,' Tocqueville's Hathaway says
Submitted by cpowell on Fri, 2013-05-03 03:32. Section: Daily Dispatches
11:30p ET Thursday, May 2, 2013
Dear Friend of GATA and Gold:
Interviewed tonight by King World News, Tocqueville Gold Fund manager John Hathaway gets closer than ever to acknowledging gold market manipulation. Hathaway observes that someone -- "whoever" -- "is sitting on the gold price." Maybe in his next interview with King World News Hathaway will be emboldened to speculate on that someone's initials. Maybe "B.B."? And not the "Big Brother" of George Orwell's novel "1984" but the "B.B." who in testimony to Congress in July 2011 affected to believe that central banks hold gold only as "tradition":
An excerpt from Hathaway's interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Krugerrand sales soar following the big raid on gold in the last month:
(courtesy Ed Steer commentary/SouthAfrican.com)
Krugerrand sales soar following gold price slump
The Scoin Shop, the UK and the world’s only gold coin retail chain, has reported a 468 percent increase in Krugerrand sales, above average weekly sales of the bullion coins, directly linked to the fall in international gold prices.
Alan Demby, an international bullion expert since 1978, founder of the Scoin Shop and chairman of the South African Gold Coin Exchange, commented, “Since the gold price has dropped we have seen an enormous interest in buying gold at what is seen as a competitive rate – many of our existing clients in both the UK and South Africa see it as a tremendous buying opportunity they would otherwise not have.
“Having closely monitored gold’s performance over 40 years I can safely say that the media and gold skeptics have got it wrong on this occasion: it is not bad news. Gold is smart money at a time when currencies have never been so volatile. We only have to look at the Eurozone or America’s $16 trillion dollar debt to know that gold is the one tangible currency which can be used against depleted cash reserves which are liable to devalue further.
This story was posted on thesouthafrican.com Internet site late yesterday afternoon local time in Johannesburg...and it's courtesy of Matthew Nel.
Read more...
end
And the fight goes on for honest money:
(courtesy Gaynor/Reuters)
Arizona governor vetoes bill making gold, silver legal tender
By Tim Gaynor | Reuters –
By Tim Gaynor
PHOENIX (Reuters) - Arizona Governor Jan Brewer vetoed a measure on Thursday that would have made gold and silver legal tender in the state, saying the legislation could have resulted in lost tax revenue.
The Republican-controlled state legislature voted through the measure last month in a response to what backers said was a lack of confidence in the international monetary system.
The bill called for Arizona to make gold and silver coins and bullion legal tender beginning in mid-2014, joining existing U.S. currency issued by the federal government.
"While I believe the concern over a devalued dollar as a result of an unsustainable federal deficit is justified, I am unable to support this legislation," Brewer, a Republican, said in an open letter to stateSenate President Andy Biggs.
Brewer noted that the "administrative and fiscal burdens" for taxpayers and the revenue department "remain vague." She also cited uncertainty over whether the legislation would have required the state to exempt transactions involving collectable coins and bills that were authorized by Congress and could be used as legal tender.
"This would result in lost revenue to the state, while giving businesses that buy and sell collectable coins or currency originally authorized by Congress an unfair tax advantage," she said.
The push to establish gold and silver as currency has become increasingly popular in the United States in recent years among some hardline fiscal conservatives, with the backing of groups including the Tea Party movement, American Principles Project and the Gold Standard Institute.
Senator Chester Crandell, a Republican and sponsor of the bill, previously said the ability to use gold and silver in everyday life in the state was still a "work in progress" and that more legislation was needed before it could be viable. He could not immediately be reached for comment.
Democratic state Senator Steve Farley, an opponent of the measure who had warned it could create massive problems for businesses and government officials trying to administer what would in effect be a dual monetary system, welcomed the veto.
"I was very pleased the governor showed the common sense to realize this was a terrible move for Arizona that would have caused incredible negative consequences at a government and business level," Farley told Reuters.
Had Brewer signed the measure, Arizona would have become the second state in the nation to establish the precious metals as legal tender. Utah approved such legislation in 2011.
(Editing by Cynthia Johnston and Eric Walsh)
end
From my hometown, Hamilton: fake USA Silver Bullion eagles flooded Hamilton pawn shops.
Over 500 fake USA eagles discovered. They were silver and nickel plated with brass inside.
Please buy your coins only from reputable dealers.
(courtesy CBC)
Fake U.S Silver Eagle coins soaring through Hamilton, police say
Hamilton Police say they've gathered over 500 fake U.S Silver Eagle coins sold across the city over the past few months.
Hamilton coin collectors and pawn shops are getting duped.
Police are warning that fake U.S silver eagle dollar coins have been circulating in the city and have been sold to various establishments over the past few months.
"You wouldn't be able to tell the difference (with) the naked eye. The coins are actually very high quality fakes," Const. Mike La Combe said in a Hamilton Police YouTube video. "They are silver and nickel-plated, which gives them the look of an actual silver dollar. However, when you cut them open, you can clearly see on the inside, they are brass filled."
The video shows some of the roughly 500 fakes that have been confiscated so far.
"They are worth practically nothing, just a couple cents each," La Combe explained.
LaCombe is a pawn unit investigator and says the coins are being bought online, then sold at "golden" times for the seller when shops are busy or with little staff. During the rush, employees may not have the time to do all the proper authenticity checks, giving criminals the chance to sell fast without getting caught.
"Only buy them from reputable dealers, a place that is established, an expert who works there who knows the difference between real and fake. Don't buy them off the internet. and don't buy them from people from the public who aren't considered experts because more than likely you're going to get a fake," added Le Combe.
and finally, these conversations with Kingworld news with Bill Haynes/Von Greyerz, James Turk.
also Mike Maloney advises how to detect counterfeit coins.
Demand for metal remains enormous; fake silver eagles discovered in Ontario
Submitted by cpowell on Sat, 2013-05-04 01:11. Section: Daily Dispatches
9:14p ET Friday, May 3, 2013
Dear Friend of GATA and Gold:
Bill Haynes of CMI Gold and Silver in Phoenix tells King World News today that the largest silver wholesaler in the United States has run out of 100-ounce bars:
Swiss gold fund manager Egon von Greyerz provides concurring evidence, reporting to King World News that gold refiners in Switzerland are working around the clock but still not keeping up with demand for real metal:
MarketWatch tonight takes also note of the extraordinary demand, quoting, among others, GoldMoney founder and GATA consultant James Turk:
CBC News in Canada reports an explosion in fake U.S. silver eagle coins being discovered in Hamilton, Ontario:
And Mike Maloney and James Anderson of GoldSilver.com give advice about how to avoid counterfeit gold and silver products:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
and......
http://www.caseyresearch.com/gsd/edition/lawrence-williams-whos-smartest-on-gold-chinese-housewives-or-george-soros
¤ YESTERDAY IN GOLD & SILVER
The gold price rallied a bit in Far East trading on their Friday...and by 11:00 a.m. in London, it was up about ten bucks from its Thursday close in New York. Then the price really took off to the upside, but within thirty minutes a not-for-profit seller appeared the moment it broke through $1,490 spot.
Then down went the price into the 8:30 a.m. Eastern time jobs numbers release in the U.S...and at that point the bid disappeared entirely and the gold price was down another $17 in two minutes flat.
The subsequent rally, along with the rally after the London p.m. gold fix, got dealt with in the usual manner...and after that, the gold price didn't do much for the rest of the Friday trading session in New York.
As I mentioned, the high of the day was a hair over the $1,490 spot mark in London...and the New York low at the release of the jobs numbers was recorded by Kitco at $1,455.40 spot.
Gold closed at $1,470.70 spot...up $3.30 from Thursday. Net volume was around 156,000 contracts.
Here's the New York Spot [Bid] chart so you can see what happened at 8:30 a.m. and 10:00 a.m. Eastern time. No shades of grey here.
The silver price action was very similar, except more 'volatile'....)
The high of the day appeared to come in New York...not in morning trading in London. That was recorded at $24.52 spot...and the low of the day [$23.37 spot] was less than two hours before that, just minutes after the release of the jobs numbers. Another day where the intraday price move in silver was over a buck.
Silver closed at $24.13 spot...up 30 cents on the day...and one can only fantasize about its free-market closing price if it had been left to its own devices, which it obviously wasn't. Volume was very decent...around 60,000 contracts.
Here's the New York Spot Silver [Bid] chart, so you can view the New York action on its own...the only price action that really matters.
Platinum and palladium weren't spared either, but their respective sell-offs started at 1:00 p.m. in Zurich yesterday afternoon...with their low ticks coming at noon in New York.
The dollar index closed at 82.20 on Thursday afternoon in New York...and when it opened in the Far East on their Friday morning, it traded pretty much ruler flat until 2:00 p.m. Hong Kong time. From there it slid to just below the 82.00 mark before blasting higher on the 8:30 a.m EDT jobs numbers release. The high tick of the day [82.48] came within minutes...and then the index gave up all those gains within an hour or so...and traded basically flat from there, closing down 10 basis points at 82.105.
It was obvious that the gold stocks were rising along with the rest of the equity markets right from the open...but once the high was in for gold after the London p.m fix, someone was kind enough to sell the shares down into negative territory. They recovered a bit in the last few hours of the trading day...and close basically unchanged, with the HUI up a miniscule 0.03%.
With silver closing up 30 cents on the day, the silver stocks did a bit better...and Nick Laird'sIntraday Silver Sentiment Index closed up 0.97%.
(Click on image to enlarge)
Here's the Silver 7 Index that shows how things are shaking out over the longer term.
(Click on image to enlarge)
The CME's Daily Delivery Report showed that 7 gold and 57 silver contracts were posted for delivery on Tuesday within the Comex-approved depositories. In silver, it was virtually "all the usual suspects" as issuers and stoppers...and the link to that activity is here.
Another day...another decline in GLD. This time it was 116,045 troy ounces...and as of 10:04 p.m. EDT on Friday evening, there were no reported changes in SLV.
Much to my surprise, there was no sales report from the U.S. Mint yesterday.
Over at the Comex-approved depositories on Thursday, they didn't receive any silver, but they did ship 439,437 troy ounces out the door...and the link to that activity is here.
In gold on Thursday, the Comex-approved depositories reported receiving 64,083 troy ounces...and shipped 129,587 troy ounces out the door. The link to that activity is here.
Based on the reporting week' price activity, I was certainly expecting to see some deterioration in the Commercial net short position in yesterday's Commitment of Traders Report for positions held at the close of Comex trading on Tuesday...but that's not what the report showed at all. It showed big improvements in the net short positions of both silver and gold.
Silver's Commercial net short position declined by another 2,934 contracts, or 14.7 million ounces of silver. The Commercial net short position is now down to 71.2 million ounces...within an eyelash of the major lows of the last eighteen months.
The Big 4 are short 182.2 million ounces of silver...and of that amount, Ted Butler figures that JPMorgan Chase is short a hair under half of that number on its own. The '5 through 8' traders are short an additional 55.2 million ounces of the metals.
So, with JPMorgan short about 90 million ounces of silver...and the Commercial net short position at 71.2 million ounces...JPM is short about 125% of the Commercial net short position all by itself...and if their position vanished overnight, the remaining traders in that category would be net long the Comex futures market in silver.
Once you remove all the b.s. market-neutral spread trades, the Big 4 are short 34.1 percent of the Comex futures market in silver...and the '5 through 8' traders are short an additional 10.4 percentage points of the Comex futures market. JPMorgan is short about 17 percent of the Comex futures market in silver all by itself.
Ted Butler said on the phone yesterday that, in silver, the Raptors [the Commercial traders other than the Big 8] hold their largest net long position in the history of Comex data. The Nonreportable [small] gold traders hold their smallest net long position in the history of the data. Reader E.W.F., who provides a weekly chart service for the COT Report, echoed Ted's comments.
In gold, the Commercial net short position declined by a chunky 8,825 contracts, or 8.83 million ounces...bringing the Commercial net short position down to 9.56 million ounces of gold.
The Big 4 Commercial traders are short 8.59 million ounces of gold...89.9% of the Commercial net short position! The '5 through 8' traders are short an additional 4.76 million ounces of gold. So the Big 8 in total are short 13.35 million ounces of gold, or 140% of the Commercial net short position.
On a net basis, with all the b.s. spread trades subtracted out, the Big 4 are short 24.5% of the entire Comex futures market in gold...and the '5 through 8' traders are short an additional 13.5 percentage points. So the Big 8 in total are short 38% of the entire futures market in silver.
Reader E.W.F. had this to say about the gold COT Report yesterday..."The Commercials hold their smallest net short position since 09 December 2008. The gold raptors [the Commercial traders other than the Big 8] hold their largest net long position since 27 July 2010. The Nonreportable [small] gold traders are net short for the first time since 20 February 2001."
As you can tell, a major bottom is in place.
I'd be prepared to bet serious money that the largest of the Big 4 Commercial short holders in both silver and gold [and probably platinum and palladium as well] are JPMorgan Chase, Canada's Bank of Nova Scotia...and HSBC USA. The short positions of the smallest of the Big 4 traders in both gold and silver are irrelevant. It's just the Big 3...but mostly the Big 1...JPMorgan Chase.
Here's Nick Laird's "Days to Cover Short Positions" of each physically traded commodity on the Comex updated with yesterday's COT data.
(Click on image to enlarge)
Here's another chart that Nick Laird sent out way yesterday evening. It's the dollar value of gold and silver coin sales from the U.S. Mint going back to late 2007...and requires no further embellishment from me.
(Click on image to enlarge)
Today's last graph in this section is courtesy of Richard Nachbar, who I'm looking forward to breaking bread with in Vancouver in three weeks. It's the U.S. 90% Silver Coins Wholesale Dealer Bid price chart...and it, too, is self-explanatory. In his covering e-mail, Richard said that "Most of the largest dealers will pay a premium of around 15% to other dealers for minimum $1,000 face value bag deals this week."
(Click on image to enlarge)
selected news and views - non redundant.....
Fourth party in: UKIP surges in England’s by-election on anti-E.U. ticket
In the biggest surge by a fourth party in England since WWII, the UK Independence Party has won nearly a quarter of the vote in local elections where it stood. Cameron, who previously dubbed the UKIP ‘fruitcakes’, has now been forced to backtrack.
UKIP has so far won 140 council seats in 35 councils nationwide, meaning that the party had polled roughly 25 per cent of the vote.
With the political landscape shifting significantly overnight, PM David Cameron, who in 2006 dubbed UKIP "fruitcakes and loonies and closet racists mostly ", called Friday for more respect to the party and its voters.
"It's no good insulting a political party that people have chosen to vote for ," the prime minister told the BBC when he was asked whether he still stood by his previous comment.
I'm delighted that Nigel and his party did so well. They deserve to...and the British establishment is now on notice that a "sea change" is afoot in the U.K. This Russia Today story from yesterday falls into the must read category if you're a Nigel Farage fan. I thank Roy Stephens once again for sending it our way.
Poor Italy…! Same people running same show
After learning that Enrico Letta is Italy’s new prime minister, I offer my sympathies to Italians. To say the usual suspects are back is to underline the plight of the Italian people as they are made poorer by the politicians who run their country.
In the game of Italian prime ministers: the Trilateral Commission’s European Chairman Mario Monti is out; and Trilateral Commission Member Enrico Letta is in. Long live the Trilateral Commission!
It seems that there is just nothing any country in the West can do to free itself from the shackles of the Global Power Masters and their Megabankers.
This op-ed piece showed up on the Russia Today website on Tuesday morning Moscow time...and it was definitely Saturday reading material, so here it is now. I thank Roy Stephens for his final offering in today's column.
Slouching Towards Sirte: NATO's War on Libya and Africa: Maximilian Forte
The media has gone very quiet on Libya of late; clearly, liberal imperialists don't like to dwell on their crimes. This is not surprising. The modus operandi of the humanitarian imperialist is not one of informed reflection, but only permanent outrage against leaders of the global South; besides, in the topsy-turvy world of liberal interventionism, the "failure to act" is the only crime of which the West is capable.
As Forte puts it, their moral code holds that "If we do not act, we should be held responsible for the actions of others. When we do act, we should never be held responsible for our own actions." With Muammar Gaddafi dead, the hunt is on for a new hate figure on whom to spew venom (Syrian President Bashar al-Assad, North Korean leader Kim Jong-eun); far more satisfying than actually evaluating our own role in the creation of human misery. This is the colonial mentality of the liberal lynch mob.
For the governments that lead us into war, of course, it makes perfect sense that we do not stop to look back at the last invasion before impatiently demanding the next one - if we realized, for example, that the 1999 bombing of Serbia - the textbook "humanitarian intervention"- actually facilitated the ethnic cleansing of Kosovo it was supposedly designed to prevent, we might not be so ready to demand the same treatment for every other state that falls short of our illusory ideals.
"The next time empire comes knocking in the name of human rights", concludes Forte, "please be found standing idly by".
This book is a must-read for anyone seriously interested in understanding the motives and consequences of the West's onslaught against Libya and African development.
There are book reviews...and there are book reviews like this one. No holds barred anywhere. It's a long read...but an absolute must read for all students of the "New Great Game". It appeared on the Asia Times website on April 25th...and I've been saving it for today. I thank Swiss reader B.G. for bringing it to my attention...and now to yours.
Six King World News Blogs/Audio Interviews
1. John Hathaway: "I Haven't Seen This in Gold in 15 Years". 2. Dr. Paul Craig Roberts: "Former U.S. Treasury Official - Today's Jobs Report a Total Farce". 3. Egon von Greyerz: "Swiss Refiners Unable to Keep Up With Massive Gold Demand". 4. Bill Haynes: "Largest Wholesaler in U.S. Sold Out of 100 Ounce Silver Bars". 5. The first audio interview is with Dr. Stephen Leeb...and the second audio interview is with Jean-Marie Eveillard.
Special Report - How to Avoid Fake Silver and Counterfeit Gold Products
If you have followed gold and silver market news over the past few years, it is likely you have seen various reports on fake gold and silver products.
In March 2012, a 1-kilo tungsten gold bar turned up in the United Kingdom.
Then in September 2012 there were reports on a slew of 10-oz. tungsten gold bars bought and sold in New York's jewelry district.
The big problem with these news reports is that they have given little to no solution on how the public at large can avoid fake bullion products.
First of all, dear reader, this will NEVER happen if you buy from a reputable dealer, as their reputation is everything...and if they do get caught out by accident, they will certainly make their client[s] whole. This 16:12 minute video was posted on the goldsilver.com Internet site on Tuesday...and is worth your time.
Who’s smartest on gold – Chinese housewives or George Soros?
The huge surge of purchasing by Chinese - particularly Chinese women – is reported to have amounted to more than 10% of annual global mined gold output in just 2 weeks of frenzied buying.
On the face of things the answer to the question posed by the title should be obvious – but.... What prompted the question is a whole rash of Internet headlines regarding a mad rush to purchase gold by the Chinese over the May Day holiday. By all accounts gold bullion and jewellery dealers were overwhelmed by the numbers of people flooding in to buy gold – particularly in Hong Kong where premiums were believed to be not as high as on the mainland.
Some of the headlines seen were as follows: China Gold Mania - Coins, Bars and Jewelry Sales Surge 108% on Goldseek; Chinese housewives buy 300 tons of gold on Marketwatch; HONG KONG gold retailers overwhelmed by mainland shoppers on China Daily; CHINA - Gold Helps China May Day Sales Rise 20% on Forbes; CHINA - Housewives' gold rush keeps price from falling on People’s Daily online etc.
See also: Many of these were illustrated with pictures of throngs of purchasers – mostly women (the Chinese housewives). And while Soros, who has liquidating most, if not all, of his SPDR Gold Trust holding (in retrospect a pretty smart move), could perhaps be missing out on something here, given the flood of Chinese (and other) demand unless of course he has quietly been rebuilding his gold holdings in some other form – bullion maybe or gold stocks.
This must read story by Lawrie Williams was posted on the mineweb.comInternet site early yesterday morning BST...and I thank Ulrike Marx for providing the last item in today's column.
¤ THE WRAP
Whenever you find yourself on the side of the majority, it is time to pause and reflect. ~ Mark Twain
Today's pop 'blast from the past' is a timeless classic that will never grow old...and puts modern-day popular music to shame. This 1976 hit was one of two that made the band famous. This youtube.comvideo has Spanish subtitles...but the video itself is the original. So turn up your speakers...and then click here. Feel free to sing along.
Today's classical 'blast from the past' comes from the early 18th century. The Brandenburg concertos by Johann Sebastian Bach (BWV 1046-1051...original title: Six Concerts à plusieurs instruments) are a collection of six instrumental works presented by Bach to Christian Ludwig, Margrave of Brandenburg-Schwedt. They are widely regarded as among the finest musical compositions of the Baroque era.
Bach's dedication to the Margrave was dated 24 March 1721. Bach most likely composed the concertos over several years while Kapellmeister at Köthen, and possibly extending back to his employment at Weimar (1708-17).
Doing the honours in this video is the Freiburg Baroque Orchestra...and all six concertos are included in this youtube.com video which runs for 92 minutes. The recordings are first rate...as is the musicianship of the players. I noted lots of period instruments in the orchestra as well. It's a feast for the ears...and the eyes. This would definitely make my 'desert island recording' list...and with almost a million hits, lots of other Bach-lovers think so as well. The link is here.
I'd forgotten all about the jobs report coming out yesterday at 8:30 a.m. Eastern time, so the obligatory smash-down in both gold and silver [but not platinum and palladium] at that time, should have come as no surprise to me, or anyone else for that matter...as the foot prints of JPMorgan Chaseet al were visible everywhere in the precious metal markets yesterday.
As I mentioned further up, I was more than taken aback with yesterday's Commitment of Traders Report, as the price action during the reporting week would normally indicate a deterioration of the Commercial net short position but, as you know, that didn't happen.
I'm beginning to suspect that all the data that should have been in the COT Report of two weeks ago was fed into the market over the last couple of week's COT Reports just so that the public couldn't get a clear picture of exactly what happened during that two day engineered price decline. Why "da boyz" would do that is not clear to me, but no other explanation makes sense. A short covering rally required to produce the numbers we saw yesterday, would certainly have driven the prices of both gold and silver to the moon, as there is zero liquidity in the Comex futures market right now...and JPMorgan et al have been capping every rally for that very reason.
Gold closed just above its 20-day moving average yesterday...and silver is close behind, but not there yet...and if you're looking to me for any indication as to what might happen next week, you're looking at the wrong guy. I haven't a clue. But as I said yesterday in this space...I know what should happen, but will it be allowed? I suppose we'll find out soon enough.
Here's the 20-year chart of the "Total PMs Pool" that Nick Laird has hidden away on his website, but I have permission to use. As you can see from this graph, the tempest-in-a-teapot removals from GLD that we've been watching over the last four or five months, barely registers in the grand scheme of things. So I urge everyone to take the blue pill next time they start worrying about this.
(Click on image to enlarge)
That's all I have for today, which is more than enough. Enjoy what's left of your weekend...and I'll see you here on Tuesday.
http://silverdoctors.com/fed-to-replace-qe-with-outright-money-printing/#more-26132
FED TO REPLACE QE WITH OUTRIGHT MONEY PRINTING?
Another example of the huge demand for physical gold. Hong Kong retailers just overwhelmed by shoppers coming from mainland China
(courtesy China Daily, Beijing)
|
Hong Kong gold retailers overwhelmed by mainland shoppers
Submitted by cpowell on Fri, 2013-05-03 03:40. Section: Daily Dispatches
By Gao Changxin
China Daily, Beijing
Thursday, May 2, 2013
China Daily, Beijing
Thursday, May 2, 2013
HONG KONG -- Hong Kong retailers report they were swamped over the three-day May Day holiday by tens of thousands of mainlanders in search of one thing: cheap gold.
After the recent slump in gold prices, Hong Kong's already healthy community of gold shops, mainly in its traditional tourist areas, has increased with a flurry of new openings. But traders report they have been overwhelmed by the mainland shoppers.
Gold prices in Hong Kong are lower than on the mainland.
On Wednesday in Causeway Bay there were long queues outside shops, which blocked the popular shopping area's narrow streets and sidewalks.
"It's cheap, so what else do you need to know?" said Wang Zhongxin, a shopper from Shanghai as he left one Chow Tai Fook outlet.
He had spent around 30,000 yuan ($4,760), twice the monthly average wage in Hong Kong, on three gold necklaces and a couple of rings. He said he wanted to buy bullion but they had already sold out.
Wang's mentality echoed that of many mainland gold shoppers, who believe the recent price slump had opened a perfect window to stock up on the precious metal.
"The gold price will definitely rise in the long term," he added.
Shoppers like Wang have been emptying gold stores on the mainland before coming to Hong Kong.
Beijing Caishikou Department Store, the biggest gold retailer in Beijing, has been seeing daily sales worth up to 100 million yuan since late April, several times their usual sales. Local media reported that the store had taken on extra staff to cope with the gold rush.
The China Gold Association reported that gold sales had tripled on many days.
The price of gold bullion has so far fallen 14 percent this year as investors worldwide sold the metal after a decade-long rally.
Gold spot traded at $1,473.18 per ounce on Wednesday, around 7 percent lower than on April 11, the day before a 14 percent two-day tumble, the worst since 1983.
But many institutional investors have viewed the price slump as temporary and an over-reaction.
Mitul Kotecha, head of global markets research Asia and global head of foreign exchange strategy with Credit Agricole, wrote in a research note last month that the recent sharp drop in the price of gold looked "overdone," with some "bargain hunting" likely, in terms of jewelry demand.
Over the longer term, he added, central bank diversification into gold will lend some support and limit the pace of the price decline.
"We will likely see a slower pace of price decline, underpinned by continued purchases from the official sector," he wrote.
HSBC Holdings PLC said it believed a pickup in demand from China and India, combined with producers cutting their supplies, will support a stable recovery in the gold price.
Chinese customers are not the only ones snapping up bargain gold.
Gold coin sales by the United States Mint are heading for their highest levels in three years.
Sales totaled 209,500 ounces in April, up from 62,000 ounces a month earlier, data on the mint's website revealed. The amount for December 2009 was 231,500 ounces.
Demand for gold in India, the world's biggest consumer, is double the level for this time of year, Rajesh Mehta, chairman of Rajesh Exports Ltd., told Bloomberg on Wednesday.
end
the moment China announces that they have 4,000 tonnes of official gold, you will see the greatest panic to purchase this ancient metal of kings:
(courtesy Neilson/bullionbullscanada.com/Gata)
Jeff Nielson: China's real gold reserves at 4,000 tonnes?
Submitted by cpowell on Fri, 2013-05-03 19:23. Section: Daily Dispatches
3:20p ET Friday, May 3, 2013
Dear Friend of GATA and Gold:
Jeff Nielson of Bullion Bulls Canada writes today that China has probably raised its gold reserves to as much as 4,000 tonnes, far beyond the 1,054 announced in 2008 and reported officially today, and that it is probably talking gold down so it can get more metal inexpensively. Nielson's commentary is headlined "China's Real Gold Reserves at 4,000 Tonnes?" and it's posted at Bullion Bulls Canada here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
end
(Kingworldnews/John Hathaway)
Somebody is 'sitting on the gold price,' Tocqueville's Hathaway says
Submitted by cpowell on Fri, 2013-05-03 03:32. Section: Daily Dispatches
By Tim Gaynor | Reuters –
11:30p ET Thursday, May 2, 2013
Dear Friend of GATA and Gold:
Interviewed tonight by King World News, Tocqueville Gold Fund manager John Hathaway gets closer than ever to acknowledging gold market manipulation. Hathaway observes that someone -- "whoever" -- "is sitting on the gold price." Maybe in his next interview with King World News Hathaway will be emboldened to speculate on that someone's initials. Maybe "B.B."? And not the "Big Brother" of George Orwell's novel "1984" but the "B.B." who in testimony to Congress in July 2011 affected to believe that central banks hold gold only as "tradition":
An excerpt from Hathaway's interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
Krugerrand sales soar following the big raid on gold in the last month:
(courtesy Ed Steer commentary/SouthAfrican.com)
Krugerrand sales soar following the big raid on gold in the last month:
(courtesy Ed Steer commentary/SouthAfrican.com)
Krugerrand sales soar following gold price slumpThe Scoin Shop, the UK and the world’s only gold coin retail chain, has reported a 468 percent increase in Krugerrand sales, above average weekly sales of the bullion coins, directly linked to the fall in international gold prices.Alan Demby, an international bullion expert since 1978, founder of the Scoin Shop and chairman of the South African Gold Coin Exchange, commented, “Since the gold price has dropped we have seen an enormous interest in buying gold at what is seen as a competitive rate – many of our existing clients in both the UK and South Africa see it as a tremendous buying opportunity they would otherwise not have. “Having closely monitored gold’s performance over 40 years I can safely say that the media and gold skeptics have got it wrong on this occasion: it is not bad news. Gold is smart money at a time when currencies have never been so volatile. We only have to look at the Eurozone or America’s $16 trillion dollar debt to know that gold is the one tangible currency which can be used against depleted cash reserves which are liable to devalue further. This story was posted on thesouthafrican.com Internet site late yesterday afternoon local time in Johannesburg...and it's courtesy of Matthew Nel. Read more... |
end
And the fight goes on for honest money:
(courtesy Gaynor/Reuters)
Arizona governor vetoes bill making gold, silver legal tender
By Tim Gaynor | Reuters –
By Tim Gaynor
PHOENIX (Reuters) - Arizona Governor Jan Brewer vetoed a measure on Thursday that would have made gold and silver legal tender in the state, saying the legislation could have resulted in lost tax revenue.
The Republican-controlled state legislature voted through the measure last month in a response to what backers said was a lack of confidence in the international monetary system.
The bill called for Arizona to make gold and silver coins and bullion legal tender beginning in mid-2014, joining existing U.S. currency issued by the federal government.
"While I believe the concern over a devalued dollar as a result of an unsustainable federal deficit is justified, I am unable to support this legislation," Brewer, a Republican, said in an open letter to stateSenate President Andy Biggs.
Brewer noted that the "administrative and fiscal burdens" for taxpayers and the revenue department "remain vague." She also cited uncertainty over whether the legislation would have required the state to exempt transactions involving collectable coins and bills that were authorized by Congress and could be used as legal tender.
"This would result in lost revenue to the state, while giving businesses that buy and sell collectable coins or currency originally authorized by Congress an unfair tax advantage," she said.
The push to establish gold and silver as currency has become increasingly popular in the United States in recent years among some hardline fiscal conservatives, with the backing of groups including the Tea Party movement, American Principles Project and the Gold Standard Institute.
Senator Chester Crandell, a Republican and sponsor of the bill, previously said the ability to use gold and silver in everyday life in the state was still a "work in progress" and that more legislation was needed before it could be viable. He could not immediately be reached for comment.
Democratic state Senator Steve Farley, an opponent of the measure who had warned it could create massive problems for businesses and government officials trying to administer what would in effect be a dual monetary system, welcomed the veto.
"I was very pleased the governor showed the common sense to realize this was a terrible move for Arizona that would have caused incredible negative consequences at a government and business level," Farley told Reuters.
Had Brewer signed the measure, Arizona would have become the second state in the nation to establish the precious metals as legal tender. Utah approved such legislation in 2011.
(Editing by Cynthia Johnston and Eric Walsh)
end
From my hometown, Hamilton: fake USA Silver Bullion eagles flooded Hamilton pawn shops.
Over 500 fake USA eagles discovered. They were silver and nickel plated with brass inside.
Please buy your coins only from reputable dealers.
(courtesy CBC)
Fake U.S Silver Eagle coins soaring through Hamilton, police say
Hamilton Police say they've gathered over 500 fake U.S Silver Eagle coins sold across the city over the past few months.
Hamilton coin collectors and pawn shops are getting duped.
Police are warning that fake U.S silver eagle dollar coins have been circulating in the city and have been sold to various establishments over the past few months.
"You wouldn't be able to tell the difference (with) the naked eye. The coins are actually very high quality fakes," Const. Mike La Combe said in a Hamilton Police YouTube video. "They are silver and nickel-plated, which gives them the look of an actual silver dollar. However, when you cut them open, you can clearly see on the inside, they are brass filled."
The video shows some of the roughly 500 fakes that have been confiscated so far.
"They are worth practically nothing, just a couple cents each," La Combe explained.
LaCombe is a pawn unit investigator and says the coins are being bought online, then sold at "golden" times for the seller when shops are busy or with little staff. During the rush, employees may not have the time to do all the proper authenticity checks, giving criminals the chance to sell fast without getting caught.
"Only buy them from reputable dealers, a place that is established, an expert who works there who knows the difference between real and fake. Don't buy them off the internet. and don't buy them from people from the public who aren't considered experts because more than likely you're going to get a fake," added Le Combe.
and finally, these conversations with Kingworld news with Bill Haynes/Von Greyerz, James Turk.
also Mike Maloney advises how to detect counterfeit coins.
Demand for metal remains enormous; fake silver eagles discovered in Ontario
Submitted by cpowell on Sat, 2013-05-04 01:11. Section: Daily Dispatches
9:14p ET Friday, May 3, 2013
Dear Friend of GATA and Gold:
Bill Haynes of CMI Gold and Silver in Phoenix tells King World News today that the largest silver wholesaler in the United States has run out of 100-ounce bars:
Swiss gold fund manager Egon von Greyerz provides concurring evidence, reporting to King World News that gold refiners in Switzerland are working around the clock but still not keeping up with demand for real metal:
MarketWatch tonight takes also note of the extraordinary demand, quoting, among others, GoldMoney founder and GATA consultant James Turk:
CBC News in Canada reports an explosion in fake U.S. silver eagle coins being discovered in Hamilton, Ontario:
And Mike Maloney and James Anderson of GoldSilver.com give advice about how to avoid counterfeit gold and silver products:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
and......
http://www.caseyresearch.com/gsd/edition/lawrence-williams-whos-smartest-on-gold-chinese-housewives-or-george-soros
¤ YESTERDAY IN GOLD & SILVER
The gold price rallied a bit in Far East trading on their Friday...and by 11:00 a.m. in London, it was up about ten bucks from its Thursday close in New York. Then the price really took off to the upside, but within thirty minutes a not-for-profit seller appeared the moment it broke through $1,490 spot.
Then down went the price into the 8:30 a.m. Eastern time jobs numbers release in the U.S...and at that point the bid disappeared entirely and the gold price was down another $17 in two minutes flat.
The subsequent rally, along with the rally after the London p.m. gold fix, got dealt with in the usual manner...and after that, the gold price didn't do much for the rest of the Friday trading session in New York.
As I mentioned, the high of the day was a hair over the $1,490 spot mark in London...and the New York low at the release of the jobs numbers was recorded by Kitco at $1,455.40 spot.
Gold closed at $1,470.70 spot...up $3.30 from Thursday. Net volume was around 156,000 contracts.
Here's the New York Spot [Bid] chart so you can see what happened at 8:30 a.m. and 10:00 a.m. Eastern time. No shades of grey here.
The silver price action was very similar, except more 'volatile'....)
)
The high of the day appeared to come in New York...not in morning trading in London. That was recorded at $24.52 spot...and the low of the day [$23.37 spot] was less than two hours before that, just minutes after the release of the jobs numbers. Another day where the intraday price move in silver was over a buck.
Silver closed at $24.13 spot...up 30 cents on the day...and one can only fantasize about its free-market closing price if it had been left to its own devices, which it obviously wasn't. Volume was very decent...around 60,000 contracts.
Here's the New York Spot Silver [Bid] chart, so you can view the New York action on its own...the only price action that really matters.
Platinum and palladium weren't spared either, but their respective sell-offs started at 1:00 p.m. in Zurich yesterday afternoon...with their low ticks coming at noon in New York.
The dollar index closed at 82.20 on Thursday afternoon in New York...and when it opened in the Far East on their Friday morning, it traded pretty much ruler flat until 2:00 p.m. Hong Kong time. From there it slid to just below the 82.00 mark before blasting higher on the 8:30 a.m EDT jobs numbers release. The high tick of the day [82.48] came within minutes...and then the index gave up all those gains within an hour or so...and traded basically flat from there, closing down 10 basis points at 82.105.
It was obvious that the gold stocks were rising along with the rest of the equity markets right from the open...but once the high was in for gold after the London p.m fix, someone was kind enough to sell the shares down into negative territory. They recovered a bit in the last few hours of the trading day...and close basically unchanged, with the HUI up a miniscule 0.03%.
With silver closing up 30 cents on the day, the silver stocks did a bit better...and Nick Laird'sIntraday Silver Sentiment Index closed up 0.97%.
(Click on image to enlarge)
Here's the Silver 7 Index that shows how things are shaking out over the longer term.
(Click on image to enlarge)
The CME's Daily Delivery Report showed that 7 gold and 57 silver contracts were posted for delivery on Tuesday within the Comex-approved depositories. In silver, it was virtually "all the usual suspects" as issuers and stoppers...and the link to that activity is here.
Another day...another decline in GLD. This time it was 116,045 troy ounces...and as of 10:04 p.m. EDT on Friday evening, there were no reported changes in SLV.
Much to my surprise, there was no sales report from the U.S. Mint yesterday.
Over at the Comex-approved depositories on Thursday, they didn't receive any silver, but they did ship 439,437 troy ounces out the door...and the link to that activity is here.
In gold on Thursday, the Comex-approved depositories reported receiving 64,083 troy ounces...and shipped 129,587 troy ounces out the door. The link to that activity is here.
Based on the reporting week' price activity, I was certainly expecting to see some deterioration in the Commercial net short position in yesterday's Commitment of Traders Report for positions held at the close of Comex trading on Tuesday...but that's not what the report showed at all. It showed big improvements in the net short positions of both silver and gold.
Silver's Commercial net short position declined by another 2,934 contracts, or 14.7 million ounces of silver. The Commercial net short position is now down to 71.2 million ounces...within an eyelash of the major lows of the last eighteen months.
The Big 4 are short 182.2 million ounces of silver...and of that amount, Ted Butler figures that JPMorgan Chase is short a hair under half of that number on its own. The '5 through 8' traders are short an additional 55.2 million ounces of the metals.
So, with JPMorgan short about 90 million ounces of silver...and the Commercial net short position at 71.2 million ounces...JPM is short about 125% of the Commercial net short position all by itself...and if their position vanished overnight, the remaining traders in that category would be net long the Comex futures market in silver.
Once you remove all the b.s. market-neutral spread trades, the Big 4 are short 34.1 percent of the Comex futures market in silver...and the '5 through 8' traders are short an additional 10.4 percentage points of the Comex futures market. JPMorgan is short about 17 percent of the Comex futures market in silver all by itself.
Ted Butler said on the phone yesterday that, in silver, the Raptors [the Commercial traders other than the Big 8] hold their largest net long position in the history of Comex data. The Nonreportable [small] gold traders hold their smallest net long position in the history of the data. Reader E.W.F., who provides a weekly chart service for the COT Report, echoed Ted's comments.
In gold, the Commercial net short position declined by a chunky 8,825 contracts, or 8.83 million ounces...bringing the Commercial net short position down to 9.56 million ounces of gold.
The Big 4 Commercial traders are short 8.59 million ounces of gold...89.9% of the Commercial net short position! The '5 through 8' traders are short an additional 4.76 million ounces of gold. So the Big 8 in total are short 13.35 million ounces of gold, or 140% of the Commercial net short position.
On a net basis, with all the b.s. spread trades subtracted out, the Big 4 are short 24.5% of the entire Comex futures market in gold...and the '5 through 8' traders are short an additional 13.5 percentage points. So the Big 8 in total are short 38% of the entire futures market in silver.
Reader E.W.F. had this to say about the gold COT Report yesterday..."The Commercials hold their smallest net short position since 09 December 2008. The gold raptors [the Commercial traders other than the Big 8] hold their largest net long position since 27 July 2010. The Nonreportable [small] gold traders are net short for the first time since 20 February 2001."
As you can tell, a major bottom is in place.
I'd be prepared to bet serious money that the largest of the Big 4 Commercial short holders in both silver and gold [and probably platinum and palladium as well] are JPMorgan Chase, Canada's Bank of Nova Scotia...and HSBC USA. The short positions of the smallest of the Big 4 traders in both gold and silver are irrelevant. It's just the Big 3...but mostly the Big 1...JPMorgan Chase.
Here's Nick Laird's "Days to Cover Short Positions" of each physically traded commodity on the Comex updated with yesterday's COT data.
(Click on image to enlarge)
Here's another chart that Nick Laird sent out way yesterday evening. It's the dollar value of gold and silver coin sales from the U.S. Mint going back to late 2007...and requires no further embellishment from me.
(Click on image to enlarge)
Today's last graph in this section is courtesy of Richard Nachbar, who I'm looking forward to breaking bread with in Vancouver in three weeks. It's the U.S. 90% Silver Coins Wholesale Dealer Bid price chart...and it, too, is self-explanatory. In his covering e-mail, Richard said that "Most of the largest dealers will pay a premium of around 15% to other dealers for minimum $1,000 face value bag deals this week."
(Click on image to enlarge)
selected news and views - non redundant.....
Fourth party in: UKIP surges in England’s by-election on anti-E.U. ticket
In the biggest surge by a fourth party in England since WWII, the UK Independence Party has won nearly a quarter of the vote in local elections where it stood. Cameron, who previously dubbed the UKIP ‘fruitcakes’, has now been forced to backtrack.
UKIP has so far won 140 council seats in 35 councils nationwide, meaning that the party had polled roughly 25 per cent of the vote.
With the political landscape shifting significantly overnight, PM David Cameron, who in 2006 dubbed UKIP "fruitcakes and loonies and closet racists mostly ", called Friday for more respect to the party and its voters.
"It's no good insulting a political party that people have chosen to vote for ," the prime minister told the BBC when he was asked whether he still stood by his previous comment.
I'm delighted that Nigel and his party did so well. They deserve to...and the British establishment is now on notice that a "sea change" is afoot in the U.K. This Russia Today story from yesterday falls into the must read category if you're a Nigel Farage fan. I thank Roy Stephens once again for sending it our way.
Poor Italy…! Same people running same show
After learning that Enrico Letta is Italy’s new prime minister, I offer my sympathies to Italians. To say the usual suspects are back is to underline the plight of the Italian people as they are made poorer by the politicians who run their country.
In the game of Italian prime ministers: the Trilateral Commission’s European Chairman Mario Monti is out; and Trilateral Commission Member Enrico Letta is in. Long live the Trilateral Commission!
It seems that there is just nothing any country in the West can do to free itself from the shackles of the Global Power Masters and their Megabankers.
It seems that there is just nothing any country in the West can do to free itself from the shackles of the Global Power Masters and their Megabankers.
This op-ed piece showed up on the Russia Today website on Tuesday morning Moscow time...and it was definitely Saturday reading material, so here it is now. I thank Roy Stephens for his final offering in today's column.
Slouching Towards Sirte: NATO's War on Libya and Africa: Maximilian Forte
The media has gone very quiet on Libya of late; clearly, liberal imperialists don't like to dwell on their crimes. This is not surprising. The modus operandi of the humanitarian imperialist is not one of informed reflection, but only permanent outrage against leaders of the global South; besides, in the topsy-turvy world of liberal interventionism, the "failure to act" is the only crime of which the West is capable.
As Forte puts it, their moral code holds that "If we do not act, we should be held responsible for the actions of others. When we do act, we should never be held responsible for our own actions." With Muammar Gaddafi dead, the hunt is on for a new hate figure on whom to spew venom (Syrian President Bashar al-Assad, North Korean leader Kim Jong-eun); far more satisfying than actually evaluating our own role in the creation of human misery. This is the colonial mentality of the liberal lynch mob.
As Forte puts it, their moral code holds that "If we do not act, we should be held responsible for the actions of others. When we do act, we should never be held responsible for our own actions." With Muammar Gaddafi dead, the hunt is on for a new hate figure on whom to spew venom (Syrian President Bashar al-Assad, North Korean leader Kim Jong-eun); far more satisfying than actually evaluating our own role in the creation of human misery. This is the colonial mentality of the liberal lynch mob.
For the governments that lead us into war, of course, it makes perfect sense that we do not stop to look back at the last invasion before impatiently demanding the next one - if we realized, for example, that the 1999 bombing of Serbia - the textbook "humanitarian intervention"- actually facilitated the ethnic cleansing of Kosovo it was supposedly designed to prevent, we might not be so ready to demand the same treatment for every other state that falls short of our illusory ideals.
"The next time empire comes knocking in the name of human rights", concludes Forte, "please be found standing idly by".
This book is a must-read for anyone seriously interested in understanding the motives and consequences of the West's onslaught against Libya and African development.
This book is a must-read for anyone seriously interested in understanding the motives and consequences of the West's onslaught against Libya and African development.
There are book reviews...and there are book reviews like this one. No holds barred anywhere. It's a long read...but an absolute must read for all students of the "New Great Game". It appeared on the Asia Times website on April 25th...and I've been saving it for today. I thank Swiss reader B.G. for bringing it to my attention...and now to yours.
Six King World News Blogs/Audio Interviews
1. John Hathaway: "I Haven't Seen This in Gold in 15 Years". 2. Dr. Paul Craig Roberts: "Former U.S. Treasury Official - Today's Jobs Report a Total Farce". 3. Egon von Greyerz: "Swiss Refiners Unable to Keep Up With Massive Gold Demand". 4. Bill Haynes: "Largest Wholesaler in U.S. Sold Out of 100 Ounce Silver Bars". 5. The first audio interview is with Dr. Stephen Leeb...and the second audio interview is with Jean-Marie Eveillard.
Special Report - How to Avoid Fake Silver and Counterfeit Gold Products
If you have followed gold and silver market news over the past few years, it is likely you have seen various reports on fake gold and silver products.
In March 2012, a 1-kilo tungsten gold bar turned up in the United Kingdom.
Then in September 2012 there were reports on a slew of 10-oz. tungsten gold bars bought and sold in New York's jewelry district.
The big problem with these news reports is that they have given little to no solution on how the public at large can avoid fake bullion products.
First of all, dear reader, this will NEVER happen if you buy from a reputable dealer, as their reputation is everything...and if they do get caught out by accident, they will certainly make their client[s] whole. This 16:12 minute video was posted on the goldsilver.com Internet site on Tuesday...and is worth your time.
Who’s smartest on gold – Chinese housewives or George Soros?
The huge surge of purchasing by Chinese - particularly Chinese women – is reported to have amounted to more than 10% of annual global mined gold output in just 2 weeks of frenzied buying.
On the face of things the answer to the question posed by the title should be obvious – but.... What prompted the question is a whole rash of Internet headlines regarding a mad rush to purchase gold by the Chinese over the May Day holiday. By all accounts gold bullion and jewellery dealers were overwhelmed by the numbers of people flooding in to buy gold – particularly in Hong Kong where premiums were believed to be not as high as on the mainland.
Some of the headlines seen were as follows: China Gold Mania - Coins, Bars and Jewelry Sales Surge 108% on Goldseek; Chinese housewives buy 300 tons of gold on Marketwatch; HONG KONG gold retailers overwhelmed by mainland shoppers on China Daily; CHINA - Gold Helps China May Day Sales Rise 20% on Forbes; CHINA - Housewives' gold rush keeps price from falling on People’s Daily online etc.
See also: Many of these were illustrated with pictures of throngs of purchasers – mostly women (the Chinese housewives). And while Soros, who has liquidating most, if not all, of his SPDR Gold Trust holding (in retrospect a pretty smart move), could perhaps be missing out on something here, given the flood of Chinese (and other) demand unless of course he has quietly been rebuilding his gold holdings in some other form – bullion maybe or gold stocks.
This must read story by Lawrie Williams was posted on the mineweb.comInternet site early yesterday morning BST...and I thank Ulrike Marx for providing the last item in today's column.
¤ THE WRAP
Whenever you find yourself on the side of the majority, it is time to pause and reflect. ~ Mark Twain
Today's pop 'blast from the past' is a timeless classic that will never grow old...and puts modern-day popular music to shame. This 1976 hit was one of two that made the band famous. This youtube.comvideo has Spanish subtitles...but the video itself is the original. So turn up your speakers...and then click here. Feel free to sing along.
Today's classical 'blast from the past' comes from the early 18th century. The Brandenburg concertos by Johann Sebastian Bach (BWV 1046-1051...original title: Six Concerts à plusieurs instruments) are a collection of six instrumental works presented by Bach to Christian Ludwig, Margrave of Brandenburg-Schwedt. They are widely regarded as among the finest musical compositions of the Baroque era.
Bach's dedication to the Margrave was dated 24 March 1721. Bach most likely composed the concertos over several years while Kapellmeister at Köthen, and possibly extending back to his employment at Weimar (1708-17).
Bach's dedication to the Margrave was dated 24 March 1721. Bach most likely composed the concertos over several years while Kapellmeister at Köthen, and possibly extending back to his employment at Weimar (1708-17).
Doing the honours in this video is the Freiburg Baroque Orchestra...and all six concertos are included in this youtube.com video which runs for 92 minutes. The recordings are first rate...as is the musicianship of the players. I noted lots of period instruments in the orchestra as well. It's a feast for the ears...and the eyes. This would definitely make my 'desert island recording' list...and with almost a million hits, lots of other Bach-lovers think so as well. The link is here.
I'd forgotten all about the jobs report coming out yesterday at 8:30 a.m. Eastern time, so the obligatory smash-down in both gold and silver [but not platinum and palladium] at that time, should have come as no surprise to me, or anyone else for that matter...as the foot prints of JPMorgan Chaseet al were visible everywhere in the precious metal markets yesterday.
As I mentioned further up, I was more than taken aback with yesterday's Commitment of Traders Report, as the price action during the reporting week would normally indicate a deterioration of the Commercial net short position but, as you know, that didn't happen.
I'm beginning to suspect that all the data that should have been in the COT Report of two weeks ago was fed into the market over the last couple of week's COT Reports just so that the public couldn't get a clear picture of exactly what happened during that two day engineered price decline. Why "da boyz" would do that is not clear to me, but no other explanation makes sense. A short covering rally required to produce the numbers we saw yesterday, would certainly have driven the prices of both gold and silver to the moon, as there is zero liquidity in the Comex futures market right now...and JPMorgan et al have been capping every rally for that very reason.
Gold closed just above its 20-day moving average yesterday...and silver is close behind, but not there yet...and if you're looking to me for any indication as to what might happen next week, you're looking at the wrong guy. I haven't a clue. But as I said yesterday in this space...I know what should happen, but will it be allowed? I suppose we'll find out soon enough.
Here's the 20-year chart of the "Total PMs Pool" that Nick Laird has hidden away on his website, but I have permission to use. As you can see from this graph, the tempest-in-a-teapot removals from GLD that we've been watching over the last four or five months, barely registers in the grand scheme of things. So I urge everyone to take the blue pill next time they start worrying about this.
(Click on image to enlarge)
That's all I have for today, which is more than enough. Enjoy what's left of your weekend...and I'll see you here on Tuesday.
http://silverdoctors.com/fed-to-replace-qe-with-outright-money-printing/#more-26132
FED TO REPLACE QE WITH OUTRIGHT MONEY PRINTING?
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