Wednesday, May 1, 2013

Harvey Organ Report for May 1 , 2013 ! Covering another huge orchestrated raid on gold and silver , incredible demand as usual , gold leaving GLD ETF and Comex vaults as usual ........ news and views for Gold and silver !

Happy May Day !  May Day Raid by the " Usual Suspects " Why am I not surprised ........

( To spot manipulation , look what happens at 8 am EST ! More pronounced for gold but still present with silver !  )

Live 24 hours silver chart [ Kitco Inc. ]

Live 24 hours gold chart [Kitco Inc.]


Wednesday, May 1, 2013

Huge Raid on gold and silver/Gold continues to leave the GLD and the comex vaults.

Good evening  Ladies and Gentlemen:

Gold closed down $25.90 to $1446.30 (comex closing time).  Silver fell by 88 cents to $23.30  (comex closing time). 

In the access market at 5 pm gold and silver  rose :

gold: $1457.00
silver: $23.60

With Europe closed for its May day holiday, the bankers took advantage of the thin trading to whack gold and silver.  Another of their usual criminal tricks.

Gold and silver got a little boost this afternoon after the release of the FOMC report.  The market decided that the Fed will continue with its QE.  Actually they have no choice but to monetize its debt as it must fund its 1.2 trillion in deficit.  Nobody else will pony up the money.

Today, the whole story is the FOMC and we have details courtesy of Goldman Sachs.  In the USA, the ADP report was dismal as was the ISM report.

At the comex, the open interest in silver fell  another 2833 contracts to 143,477 contracts as we probably had some short covering yesterday. The silver OI is  holding firm at elevated levels . The open interest on the gold contract fell by 1646 contracts to 421,087. It is interesting that the gold deliveries for May has now exceeded 5 tonnes at 5.76 tonnes and this is an off month for gold. 

Today, physical gold continues to leave London with 3.31 tonnes of gold departing the GLD for the shores of China/and or Russia. The game ends when the last physical ounce held at the GLD departs. 

 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 fell by 1646 contracts today  from 421,087  down to 421,087,  with gold rising by $3.80 on Tuesday. The front non active delivery month of May saw its OI fall by 871 contracts.  However we had 1288 delivery notices filed for yesterday.  Thus we actually gained 417 contracts or an additional 41700 oz will stand for May's delivery.     The next active contract month is June and here the OI fell by 1666 contracts to 244,945. June is the second biggest delivery month in gold's calendar.  The estimated volume today was fair at 142,594.   The confirmed volume on Tuesday was a little better at 170,733 contracts.

The total silver comex OI fell  by a hefty 2833  contracts from 146.310 down to 144,310  with silver's price unchanged yesterday. No doubt we had some short covering yesterday.  Those contracts  that remain are stoic and ready to take on the bankers at their crooked game.  The front active silver delivery month of May saw it's OI fall by 1806 contracts.  We had 1506 delivery notices filed yesterday so we lost  300 contracts or 1.5 million oz.  The next  delivery month for silver is June and here the OI rose by 1 contracts to stand at 487. The next big active contract month is July and here the OI fell by 762 contracts to rest tonight at 78,748.   The estimated volume today was good, coming in at 48,320 contracts.  The confirmed volume yesterday was  good at 46,651.

Comex gold/May contract month:

May 1/2013

Withdrawals from Dealers Inventory in oz
Withdrawals from Customer Inventory in oz
 128,163.18 (Brinks,Scotia)oz
Deposits to the Dealer Inventory in oz
Deposits to the Customer Inventory, in oz
No of oz served (contracts) today
 394 (39,400  oz)
No of oz to be served (notices)
170 (17,000)
Total monthly oz gold served (contracts) so far this month
1682  (168,200)
Total accumulative withdrawal of gold from the Dealers inventory this month
Total accumulative withdrawal of gold from the Customer inventory this month

317,421.29  oz  

We had huge activity at the gold vaults.
The dealer had 0 deposits and 0  dealer withdrawals.

We had 0 customer deposits today:

total customer deposit: nil oz

We had 2 customer withdrawals:

i) Out of Scotia:  128,099.009 oz
ii) Out of Brinks:  64.18

total withdrawal:  128,163.18 oz

We had 1 big  adjustments 

1.  From the Scotia vault:  44,243.633 oz was adjusted out of the dealer and back into the customer account.

Thus the dealer inventory  rests tonight at 2.103 million oz (65.41) tonnes of gold.
The total of all gold declines again at the comex and is close to breaking below 8 million oz as it rests at 8.000 million oz or 248.8 tonnes.

The CME reported that we had 394 notices filed today for 39,400  oz of gold today.
To calculate the quantity of gold ounces that will stand, I take the OI standing for May  (564) and subtract out today's notices (394) which leaves us with 170 notices or 17000 oz left to be served upon our longs. 
Thus  we have the following gold ounces standing for metal in May:

1682 contracts x 100 oz per contract  or  168,200 oz (served)  +  170 notices or 17,000 oz (to be served upon)  =  185,200 oz or 5.76 tonnes of gold.
This is extremely high for a non active month.



May 1.2013:  May silver: 

Withdrawals from Dealers Inventorynil
Withdrawals from Customer Inventory 282,575.969( Delaware, Scotia, Brinks,CNT and HSBC)   
Deposits to the Dealer Inventory nil
Deposits to the Customer Inventory  672,681.42  (Delaware,Scotia)
No of oz served (contracts)357 contracts ( 1,785,000 oz)  
No of oz to be served (notices)809  (4,045,000 oz)
Total monthly oz silver served (contracts) 1863  (9,315,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month
Total accumulative withdrawal of silver from the Customer inventory this month282,575.969

Today, we  had good activity  inside the silver vaults.

 we had 0 dealer deposits and 0  dealer withdrawals.

We had 2 customer deposits:

i) Into Delaware: 10,774.2 oz
ii) Into Scotia; 661,907.22

Total deposits:  672,681.42  oz

We had 5 customer withdrawals:

1) Out of Delaware:  4,048.45 oz
ii) Out of Scotia;  80,805.74 oz  
iii) Out of CNT:  20,546.87 oz
iv) Out of HSBC  5048.309
v) Out of Brinks;  172,176.60

total withdrawal:  282,575.969

we had 1   adjustments:

i) Out of Delaware:  10,468. oz was adjusted out of the dealer and back into the customer account

Registered silver  at :  45.934 million oz
total of all silver:  166.44 million oz.

The CME reported that we had a small 357 notices filed.  To calculate the number of ounces that will stand in silver, I take the OI standing for May (1166) and subtract out today's notices (357) which leaves us with 807 notices or 4,045,000 oz 
Thus the total number of silver ounces standing in this  active delivery month of May is as follows:

1863 contracts x 5000 oz per contract (served) = 9,315,000 +  809 contracts x 5000 oz =  4,045,000 oz ( to be served)  =  13,360,000 oz

we lost 1.5 million oz standing.

More gold leaves GLD ETF today - what else is news ! 

May 1.2013:



Value US$50.265 billion

april 30.2013:



Value US$50.915  billion

Selected news and views......

USA Mint sales of gold coins jump to its highest in 3 years

(courtesy Bloomberg)

U.S. Mint Sales of Gold Coins Jump to Highest in Three Years

By Debarati Roy - May 1, 2013 2:32 AM ET
Sales of gold coins by the U.S. Mint rose to the highest since December 2009 after the price of the metal in April fell the most in 16 months.
Last month, sales totaled 209,500 ounces, up from 62,000 ounces in March, data on the mint’s website show. The amount for December 2009 was 231,500 ounces. Silver-coin sales rose to 4.2 million ounces from 3.36 million in March.
U.S. gold dollar coins are displayed at Avenue Coins & Currency in Stockton, California. Photographer: David Paul Morris/BloombergMay 1 (Bloomberg) -- David Lennox, a resource analyst at Fat Prophets in Sydney, talks about the outlook for commodities including oil and gold. He also discusses Federal Reserve and European Central Bank monetary policies with Zeb Eckert on Bloomberg Television's "On the Move." (Source: Bloomberg)Demand surged at mints from Australia to the U.K. and the U.S. after futures slumped 13 percent in two days through April 15. Gold futures tumbled 7.8 percent last month and dropped into a bear market as some investors lost faith in the metal as a store of value. Perth Mint, which refines almost all of the nation’s bullion, said that demand jumped to the highest in five years after prices plunged, with the factory kept open through the weekend to meet orders.
"People are flocking to buy physical gold," Todd Dutkevitch, a senior account executive at Los Angeles-based American Bullion Inc., said in a phone interview. "The price drop has made it possible for many retail buyers to add gold."Futures for June delivery rose 0.1 percent to $1,473.30 an ounce on the Comex in New York today. The metal is down 12 percent this year, even after advancing 11 percent from a 26- month low of $1,321.50 on April 16.
The U.S. mint said April 23 it suspended sales of coins weighing a 10th of an ounce after demand more than doubled from a year earlier.

Most Popular

The mint sells 22-karat American Eagles of 1 ounce at a 3 percent premium toLondon "p.m. fixing" prices. A half-ounce coin is set at 5 percent above, a quarter-ounce coin is 7 percent above, and one weighing a 10th of an ounce fetches a 9 percent premium, according to Michael White, a Mint spokesman.
"The 1-ounce gold bullion coins are the most popular," White said last week.In Australia, buyers were waiting in lines half a kilometer (0.3 mile) long to get minted coins, and jewelry shops in India and China ran out of gold in a single day, Jason Toussaint, the managing director of investments at the London-based World Gold Council, said in an interview. India and China are the world’s largest consumers of bullion.
Surging demand from Dubai to Istanbul has pushed physical premiums in the region to levels not seen in years as the biggest price slump in three decades lures consumers, according to MKS (Switzerland) SA.

Shanghai Trading

Trading for the benchmark contract on the Shanghai Gold Exchange surged to a record last week, while premiums to secure supplies in India jumped to five times the level before the slump. China and India are the world’s largest buyers.
Consumers in Singapore and Hong Kong are paying premiums of about $3 an ounce, compared with about $2 just after the rout, according to Ng Cheng Thye, the head of precious metals at Standard Merchant Bank (Asia) Ltd.
Still, holdings in exchange-traded products backed by the precious metal tumbled 174 metric tons in April, a record drop, according to data compiled by Bloomberg.
"This drop has made physical gold much more attractive than paper gold," Dutkevitch said.To contact the reporter on this story: Debarati Roy in New York


Addition articles from additional blogs to consider......

Nielson: Paper, physical are decoupling; Arensberg: COT is bass-ackwards

9:40p ET Tuesday, April 30, 2013
Dear Friend of GATA and Gold:
Jeff Nielson of Bullion Bulls Canada speculates tonight on the decoupling of the paper and physical gold markets.
Nielson writes: "Clearly, we currently have a bull market for physical gold (and silver). So when Bloomberg and all the rest of the corporate media yammer on about 'a bear market in gold,' what gold market are they talking about? That's right: their own paper market, empirically proven by the recent collapse in demand for paper gold."
Nielson's commentary is headlined "Decoupling in Precious Metals Markets" and it's posted at the Bullion Bulls Canada Internet site here:
Meanwhile, Gene Arensberg says at the Got Gold Report that "as gold was recovering about $45 in price Tuesday to Tuesday, we saw the natural hedgers (and the bullion banks many of them trade through) and swap dealers furiously covering their net hedges, while the speculators, large and small, were actually selling into the gold recovery rally. ... In Texas we call that kind of action 'bass-ackwards.'"
Arensberg's commentary on the commitment of futures traders, in video format, is posted at the Got Gold Report's Internet site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

Dwindling U.S. gold stocks signal surge in physical demand

By Frank Tang
Tuesday, April 30, 2013
NEW YORK -- Physical gold stocks held at CME Group's Comex warehouses in New York have dropped to a near-five year low in a further sign that gold's price crash unleashed a frenzy of demand as investors scramble to buy bars and coins. ...
What surprised many dealers was that most of last week's withdrawals, worth $620 million based on Monday's prices, were from a vault run by JPMorgan Chase, one of the top global bullion banks. A JPMorgan spokeswoman declined to comment.
For the complete story:


finishAccording to dealers and wholesalers, the silver demand generated today via the co-ordinated May 1st Buy Silver Campaign is completely unprecedented- with sales even surpassing those placed 2 Monday’s ago as silver was slammed to $22! 
It’s time to step on the bullion banksters’ necks, and FINISH TODAY STRONG!!

Let’s finish strong today! Five suggestions that might help with ‘the process”
1. Buy some silver (duh). This might be just one coin you purchase for “symbolic” reasons. Give this coin to your grandchild or maybe as a graduation gift to the nice young man who lives next store. Or, if you can, buy five “Monster” boxes and go ahead and fill up your safe!
2. Talk up the effort. Maybe even link to my columns on the topic at (and and “like” them on Facebook or Twitter.
3. Consider making some comments on popular websites and media sites. Big ones that reach a lot of potential buyers include Zero Hedge, Daily Paul, Townhall, your local or state paper, other silver and precious metals sites, etc.
4. Maybe e-mail some media “content managers” and respectfully request that they give this effort some coverage. Might point out to them that there is currently an eye-opening run going on in the planet on “physical” silver – this while the paper price is plummeting. “What’s up with that?” you might ask.
5. Pat yourself on the back for at least trying to make a statement – a protest really – about the crazy economic policies that threaten our quality of life. One message is that silver IS a “safe haven” asset in such a world and, if nothing else, a “insurance policy” in case an epic economic crisis occurs.
One more suggestion: If one of our goals is to recruit new buyers to the market – or at least get more people to do their own “independent studies” on precious metals – it’s probably best to employ a civil, respectful tone in your outreach efforts. That is, don’t turn anybody off or reinforce negative stereotypes that might exist about “silver bugs” or “gold bugs.”
For my part I’m saying things like:
“Hey, everyone, you might not know but today is “Buy Silver”Day. Scary times might be ahead and buying silver could be something that protects you and your family during possible times of hardship. If you are interested in this topic, there are a couple of good articles on” Or:
“You might not have ever bought silver for yourself or your children, but I bet many of your grandparents did. They did this for a reason. Some of those reasons are listed in these articles on”
As I write this column Wednesday morning, I notice that the price of silver is – again – falling off a cliff. People, we’ve been given a gift. Silver is on sale on the day we go to town to buy!
We might also want to send a thank-you note to the futures traders who have allowed us to “buy low” today.
Finally, if the effort doesn’t seem to make any noticeable difference in markets and fails to generate any new headlines, don’t despair.
This, after all, is a “process.” It will take time to raise awareness among the masses. All we can do is all we can do.
This said, here’s hoping we finish strong today!


lights outIt is now only a question of “when” that the lights get turned off and deliveries of metals cease.  ABN Amro notified customers 2-3 weeks ago that their supposedly ALLOCATED metal would not be delivered.  How can this be IF it was truly “allocated”?  The only plausible reason that customer “allocated” metal would not be delivered is because it was previously “re” allocated to someone elseand is no longer in the vault.  There can be NO other explanation.
As has been said many times before and from several viewpoints, you either have the metal or you do not.  When all is said and done, there will be at least 99 people out of 100 who believe that they own metal who will find out that they do not.  The time to act and separate yourself from those 99 people is now, right now.  Deliveries will fail and supply for new purchases will dry up over night, there will be no “options” once the default is triggered.

Though you haven’t heard a peep out of the media, the Cyprus parliament voted Tuesday on their own financial execution.  They basically had 2 choices, they could vote themselves out of the EU and everyone loses their bank balances…or they could remain in the EU and lose 90%+- of their bank balances.  Option A would mean going the route of Iceland which 5+ years after their collapse is one of the few economies in the world that is actually growing again, option B would mean sticking with the “known” evil which includes the iron anvil of the the Euro attached to their feet for the future.  Option A is obviously in their best interest, option B is what they chose.
A media blackout on this event is in effect so that the populace doesn’t panic.  How smart would it be to play movie trailers in advance letting people know that “coming to a theater near you” is the theft of your bank balances?  I mean think about it, if you have plans to steal “money in the bank”, you want as much “in the bank” as possible right?  Why would you promote a bank run where all the cockroaches (that is what the savers are considered) scatter with their funds before you could rob them?  Plans have been quietly put into place to take the “Cyprus template” and use it far and wide.  Once begun, you will only hear “we have no other options” topped off by “who coulda’ seen it coming?”.  The coming “global bail ins” are more than obvious to see, all you need to do is use a little common sense and connect a few dots.
I wrote the other day that “the smack-down in Gold and Silver was probably the result of the bottom of the barrel becoming visible”.  This chart courtesy of Zerohedge   pretty much says it all.
JP Morgan is down to their last 165,000 ounces of Gold eligible for delivery at the COMEX.  It is quite interesting that this hoard has dropped by over 90% and that the draw down began last September (1 month before the obvious capping action in Gold began in October).  It is also interesting that the bloodletting of Gold would occur as the central banks of both the U.S. and Japan would announce over $2 trillion of further money supply debasement.
In my mind it now only a question of “when” do the lights get turned off and deliveries of metals cease.  ABN Amro notified customers 2-3 weeks ago that their supposedly ALLOCATED metal would not be delivered.  How can this be IF it was truly “allocated”?  The only plausible reason that customer “allocated” metal would not be delivered is because it was previously “re” allocated to someone else and is no longer in the vault.  There can be NO other explanation.  I guess we should wait for the lawsuits to commence by customers who paid storage fees (similar to Morgan Stanley’s fraudulent Silver storage back in 2009) for nonexistent metal.
As has been said many times before and from several viewpoints, you either have the metal or you do not.  When all is said and done, there will be at least 99 people out of 100 who believe that they own metal who will find out that they do not.  The time to act and not be a part of these 99 people is now, right now.  Deliveries will fail and supply for new purchases will dry up over night, there will be no “options” once the default is triggered.  Believe me or don’t, this is pure common sense and the most basic of math.  Regards,  Bill H.


[Editor's Note: The following post is by TDV Editor-in-Chief, Jeff Berwick]
If you don't own gold yet, you might really want to hurry up and get some. We keep saying it, but this time it's not just because physical precious metals are getting incredibly scarce. Purchasing gold may become outright illegal if what's going on in Connecticut is any indication. Even if Connecticut's plan to track all gold sales isn't a harbinger for a modern day Roosevelt-like ban on gold ownership, it will at the very least drive gold bullion dealers out of business with the cost of complying with the new regulation. That will create artificial scarcity in Connecticut and could set a precident for other US States.
From the Connecticut General Assembly website:
To require precious metals or stones dealers to provide a periodic statement of transactions in an electronic format to the local licensing authority and retain any goods purchased for at least ten days, and to make the requirements applicable to precious metals or stones dealers similar to those applicable to secondhand dealers.
Introduced by: Public Safety and Security Committee
As economist Gary North pointed out concering this bill: "You may recall that the terror of the French Revolution was run by the Committee on Public Safety." In the section on "Bullions and Coins", the bill says:
For bullion and coin sales, in addition to the requirements under current law, the bill requires dealers to keep the record in English, be consecutively numbered, and include the seller’s general description.
Did you catch that last part about including the seller's general description? 
This may be only the relatively tiny state of Connecticut, but the very fact that any government in the US is paying so much attention to gold transactions should send a very clear signal. Not only should you be running --not walking-- to get more gold...You should also be running to get a lot of it outside of the US as a clampdown seems to be in the works.
Maybe it's no coincidence that this bill is being introduced in Connecticut. It may not be long before the federal government starts publicly associating precious metals and Bitcoin with "terrorists" who are trying to hide their purchases of bomb-making materials. The state of Connecticut and the city of Boston, Massachusetts have been host to the kind of violence that governments love to use to restrict gun ownership and to increase surveillance powers. It wouldn't surprise me if we saw similar legislation to what Connecticut is proposing coming out of Massachusetts. Eventually, I imagine such legislation sweeping across the US.
There will come a time when you will simply not be able to get precious metals because of a lack of supply (and no one will sell at any dollar price)...or because purchase and ownership of the metals will be flat out illegal. This isn't hyperbole. This is a prediction based on history and current trends. We have all watched as mere penstrokes have increased the state's power to monitor, spy upon and kill. Less than eighty years ago, a US president completely and abruptly outlawed the ownership of gold in a time of declared crisis. Does anyone reading this really think that something like that couldn't happen again as the monetary system is its death throes and the US empire is inevitably resulting in the US police state?
The state will start to take strong action against gold and decentralized currencies. This is to be expected during The End Of The Monetary System As We Know It. Make sure to act before it's too late. Get your gold and then secure it somewhere the US government won't be able to steal it.