Evening gold and silver report !
http://www.infowars.com/are-we-on-the-verge-of-witnessing-the-death-of-the-paper-gold-scam/
Are We On The Verge Of Witnessing The Death Of The Paper Gold Scam?
The legal claims on physical gold far exceed the amount of physical gold that the banks actually have by a very, very wide margin. And right now the bankers are scared out of their wits because their warehouses are being drained of physical gold at a frightening rate. So what happens when their physical gold is gone but they still have lots and lots of people with legal claims to gold? When that moment arrives, it will represent the end of the paper gold scam. Many believe that the recenttakedown of the price of paper gold was a desperate attempt by the bankers to put off that day of reckoning, but it appears to have greatly backfired on them. Instead of cooling off demand for precious metals, it has unleashed a massive “gold rush” all over the globe. Meanwhile, word has been spreading among wealthy families in both North America and Europe that they had better grab their physical gold out of the banks while they still can. This is creating havoc in the financial community, and at least one major international bank has already declared that it will only be settling those accounts in cash from now on. The paper gold scam is starting to unravel, and by the time this is all over it is going to be a complete and total nightmare for global financial markets.
For years it has been widely known that the promises that banks have made regarding their gold far exceed their actual ability to deliver, but we have never reached a moment of such crisis before.
Posted below are quotes from people that know precious metals far better than I do. What these experts are saying is more than a little bit disturbing…
-CME President Terry Duffy: What’s interesting about gold, when we had that big break two weeks ago we saw all the gold stocks trade down significantly, we saw all the gold products trade down significantly, but one thing that did not trade down, was gold coins, tangible real gold. That’s going to show you, people don’t want certificates, they don’t want anything else. They want the real product.
-Billionaire Eric Sprott: So we see all of these paper (trading) volumes going through that bear absolutely no relationship to what’s going on in the physical markets. As you know I have always been a proponent of the fact that supply in the gold market was way less than demand, and by a very large factor. I think demand exceeds supply by at least 60%. The central banks are surreptitiously supplying that gold, and ultimately they will be running on fumes.
When we hear about the LBMA not willing to deliver gold, and JP Morgan’s inventories at the COMEX have gone from 2.4 million (ounces) down to 160,000 ounces, it just makes you realize that all of this paper trading means nothing. It’s the real physical market that you have to rely on.
-JS Kim: FACT #1: COMEX gold vaults were recently drained of 2 million ounces of physical gold in one quarter, the largest withdrawal of physical gold bullion from COMEX vaults in one quarter during this entire 12-year gold and silver bull. There has been speculation about the reasons that spurred these massive withdrawals of gold from COMEX vaults, but the most reasonable speculation is that no one trusts the bankers to hold on to their physical gold anymore, especially in light of Fact #2. Note below, that both registered AND eligible stocks of gold had heavily declined in recent months. Such an event signals a general distrust of the banking system from everyone holding gold in registered COMEX vaults.
FACT #2: One of the largest European banks, ABN Amro, defaulted on their gold contracts and informed their clients that they would only settle their gold bullion contracts in cash and not in physical. So much for the supposed legality of financial contracts as a “binding” contract. So whether Fact #1 caused Fact #2 or vice versa is irrelevant. What IS apparent is that the level of trust in bankers to safekeep physical gold and physical silver is disappearing, as it should be, and as it should have already been for years now. But truth always takes some time to catch up to banker spread lies and that is what is happening now. I have been warning people never to trust bankers in deals involving gold and silver for years now, as in this article I wrote nearly four years ago informing the public that the SLV and GLD are likely a banker invented scam as well.
FACT #3: Silver fraud whistleblower and London trader Andrew Maguire stated that the LBMA was having trouble settling gold contracts in bullion as well and stated that institutions that asked for physical settlement “were told they would be cash settled instead by a bullion bank.” In plain English, this is a default. So Andrew Maguire reported that the LBMA had already gone into default. In light of Fact #1 and Fact #2, the dominoes were starting to tumble and the house of cards that the bankers had built in gold and silver paper derivatives to deceive and hide the true fundamentals of the physical gold and physical markets from the entire world was rapidly starting to crumble. A financial earthquake of magnitude 2.5 was quickly threatening to evolve into one of the biggest financial earthquakes of all time in which the world’s confidence in all global fiat currencies would effectively have a well-deserved funeral.
-Jim Sinclair: I think the reality is the supply situation is extremely volatile at this point, and even discussing it is like rubbing a raw nerve to the people who are in charge. The amount of discussion on the subject of warehouse supply, supply that is represented by the gold leases, indicated to the central planners that the demand for physical was going to continue to effect the exchanges.
Although they did not expect any grandstand delivery, the mere continued draining of physical inventories was threatening the very functioning of the paper exchange. That threatening of the paper exchange and its ability to continue functioning is really taking off the blinders and revealing the truth behind the critical question, ‘Where is the gold?’
The question now is, ‘Where has the gold gone?’ Who has all of this gold? Because of the nature of gold leasing, all of this gold has been purchased and it has gone somewhere. The reality of the empty vaults reveal that the gold has gone missing.
-Ronald Stoeferle: We’re seeing this rush to physical gold not only in the retail market, but also for the institutional players…[it's] just overwhelming…I [estimate] a 130-to-1 [ratio of paper to physical gold]…and I think in the last week we were really close to [triggering] a default of the paper market.
-Gerhard Schubert, head of Precious Metals at Emirates NBD: I have not seen in my 35 years in precious metals such a determined and strong global physical demand for gold. The UAE physical markets have been cleared out by buyers from all walks of life. The premiums, which have been asked for and which have been paid have been the cornerstone of the gold price recovery. It is very rare that physical markets can have a serious impact on market prices, which are normally driven solely by derivatives and futures contracts…
I did speak during the week with several refineries in the world, of course including the UAE refineries, and the waiting period for 995 kilo bars is easily 2-3 weeks and goes into June in some cases. A large portion of the 995 kilo bars in the UAE goes normally into the Indian market, but a lot of the available 995 kilo bars are destined for Turkey, at this time. We heard that premiums paid in Turkey have reached anything between US $ 20 and US $ 35 per ounce.
-James Turk: Another indication of the demand for large bars is the huge drawdown in the gold stock in COMEX warehouses. It is noteworthy that COMEX reports show the drawdown is largely the result of dealers removing their inventory, their working stock. When that happens, you know the availability of supply is constrained.
What all of this means, Eric, is one thing. If the central planners want to keep the precious metals at these low prices, to meet the demand for physical metal they will need to empty more metal from central bank vaults, or borrow metal from the ETFs as some have suggested is happening. Otherwise, the central planners will have to step back and stop their intervention, thereby letting the price of gold and silver rise so that demand tapers off, bringing demand and supply of physical metal back toward some kind of balance.
We’ve seen this same situation several times over the last twelve years. It is what I have been calling a “managed retreat.” Despite the current weakness, I firmly believe we have again entered a critical period where the central planners will need to retreat once again in order to let the gold and silver prices climb higher.
-The Golden Truth: And then I get a call from a close friend in NYC last Friday. His career has been in private wealth management in the private bank department of the Too Big To Fail banks. He’s been looking for work and chats with old colleagues all the time. He called my Friday and told me he just got off the phone with a very high level private banker from a big Euro-based TBTF bullion bank, but who was at JP Morgan until about six months ago.
This guy told my friend that there is a scramble by many very wealthy European families/entities to get their 400 oz bars out of the big bank vaults. He knows this personally, for a fact. He said the private banker community is small over there and the big wealthy families all talk to each other and act on the same rumors/sentiment. The Bundesbank/Fed and the ABN/Amro situations triggered this move. He knows for a fact JPM tried to calm fears about 3 months ago by sending a letter to it’s very wealthy clients assuring them their bars were safe, in allocated accounts. He said right now those same families are walking into the big banks like JPM and demanding delivery of their bars or threatening to take their $100′s of millions in investment portfolios to competitors. His wording was “these people are putting a gun to the heads of private banks and demanding their gold.”
I know this information is good because I know my friend’s background and when he tells me his source is plugged in, the guy is plugged in. Not only that, my friend’s source said that there’s no doubt that someone like a John Paulson, not necessarily specifically him, but entities like him or it may include him, have held a gun to GLD and demanded delivery of physical in exchange for their shares.
Regarding the Bundesbank/Fed situation, recall that the Bundesbank asked to have some portion of its gold sitting – supposedly – in the NY Fed vault in NYC sent back Germany. The total amount is 1800 tonnes. After behind the scenes negotiations, the Fed agreed to ship 300 tonnes back over seven years. To this day, the time required for that shipment has never been explained. Venezuela demanded the return of its 200 tonnes held in London, NYC and Switzerland and received it all within about four months.
And regarding the ABN/Amro situation. ABN/Amro offered a gold investment account product that offered physical delivery of the gold in the investment account when the investor cashes out. About a week before the gold price smash, ABN sent a letter to its clients informing that the physical delivery of the bullion was no longer available and that all accounts would be settled with cash at redemption.
I believe it was these two events that triggered the big scramble for physical gold by wealthy families/entities who were suspicious of the integrity of their bank vault custodial arrangement anyway.
*****
So what does all of this mean?
It means that we are entering a period when there will be unprecedented volatility for precious metals. There will be tremendous ups and downs as this crisis plays out and the bankers try to keep the paper gold scam from completely unraveling.
Meanwhile, nations such as China continue to stockpile gold as if the end of the world was coming.
According to Zero Hedge, Chinese gold imports set a brand new all-time record high in March…
Quite the contrary: as export data released by theHong Kong Census and Statistics Departmentovernight showed, Chinese gold imports in March exploded to an all time record high of 223.5 tons.
And the number for April is expected to be even higher.
Does China know something that the rest of us do not?
We are also seeing a rapid decoupling between spot prices and physical prices. In fact, it is quickly getting to the point where the spot price of gold and the spot price of silver are becoming irrelevant.
For example, demand for silver coins has become so intense that some dealers are charging premiumsof up to 30 percent over spot price for silver eagles.
That would have been regarded as insane a few years ago, but people are now willing to pay these kinds of premiums. People are recognizing the importance of actually having physical gold and silver in their possession and they are willing to pay a significant premium in order to get it.
We are moving into uncharted territory. The paper gold scam is rapidly coming to an end. In the long-term, this will greatly benefit those that are holding significant amounts of physical gold and silver.
http://www.zerohedge.com/news/2013-05-08/jpm-eligible-gold-drops-fresh-record-low-following-withdrawal-28-holdings
JPM Eligible Gold Drops To Fresh Record Low Following Withdrawal Of 28% Of Holdings
Two weeks ago we reported about one of the biggest daily withdrawals of eligible gold from the JPM gold vault, it not on an absolute basis, then certainly on a relative, when in one day over 260k ounces of gold were withdrawn, leaving a record low 141.6k ounces, or just over 4 tons of gold in the vault. Subsequently, we tracked the daily additions and withdrawals of gold from the vault to see if any other major withdrawal request would come, instead discovering instance after instance of JPM reclassifying Registered gold into Eligible, which is how the vault saw its eligible inventory rise back to 195K ounces as of yesterday, without any actual net additions or more importantly withdrawals. It seems the pause of withdrawals has ended, and as of yesterday, another delivery led to a withdrawal of 53,658 ounces, or 28.5% of the total, leaving a fresh record low inventory of only 137,377 eligible ounces in the vault.
As a result, total Eligible in the Comex system is now at a level of 6.13 million oz, or roughly the lowest since since 2009.
And since much of the Eligible gold "additions" have come as a result of the reclassification of Registered gold into Eligible, the combined total of Eligible and Registered has also declined to levels last seen in 2008, at just under 8 million total ounces.
But here's the real punchline: if JPM had not been allowed to arbitrarily convert registered gold into eligible in the past two weeks, the firm's current inventory of eligible gold would be just 83,718 troy oz, or a little over one and a half metric tons: an amount that is laughable and is about 3% of the maximum eligible gold (2.8 million oz) held at the JPM vault, shortly after its commercial reopening in October 2010.
Earlier today, when reporting about the insatiable demand for physical out of China, following the report that "The jump in Chinese physical demand also prompted some banks to ship in more supplies from London and Swiss vaults, traders said." we asked "What about New York vaults? And specifically the biggest gold vault in the world, located 90 feet below 1 Chase Manhattan Plaza?" It appears the Chinese may have gotten just a little more gold out of New York today after all.
Finally with gold at record low levels, pay attention to how much more registered gold is converted into eligible in the coming days. Because if one day the registered gold holders realize the "run on the vault" that is going on, and they too ask to have their gold moved elsewhere, then things will really get entertaining.
( This flows naturally with the prior article discussing JP Morgan vanishing eligible and registered gold ... much more detail at the link ! )
Shortages developing in large gold and silver bars too, Turk says
Submitted by cpowell on Tue, 2013-05-07 16:37. Section: Daily Dispatches
12:35p ET Tuesday, May 7, 2013
Dear Friend of GATA and Gold:
Shortages are developing not just in small gold and silver denominations but in the large bars that are the bulk of the monetary metals trade, 400-ounce gold bars and thousand-ounce silver bars, GoldMoney founder and GATA consultant James Turk tells King World News today.
Turk says: "If the central planners want to keep the precious metals at these low prices, to meet the demand for physical metal they will need to empty more metal from central bank vaults, or borrow metal from the exchange-traded funds as some have suggested is happening. Otherwise, the central planners will have to step back and stop their intervention, thereby letting the price of gold and silver rise so that demand tapers off, bringing demand and supply of physical metal back toward some kind of balance.
"We've seen this same situation several times over the last twelve years. It is what I have been calling a 'managed retreat.' Despite the current weakness, I firmly believe we have again entered a critical period where the central planners will need to retreat once again in order to let gold and silver prices climb higher."
An excerpt from the 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.
http://harveyorgan.blogspot.com/2013/05/gold-and-silver-risejpmorgan-loses.html
Wednesday, May 8, 2013
Gold and silver rise/JPMorgan loses another 137,377.00 oz of gold/Massive imports of gold into China and India/
Good evening Ladies and Gentlemen:
Gold closed up $24.90 to $1473.90 (comex closing time). Silver rose by only 12 cents to $23.89 (comex closing time)
In the access market at 5 pm gold and silver are the following :
gold: $1472.00.
silver: $23.88
At the comex, the open interest in silver fell by 368 contracts to 144,156 contracts. The silver OI is holding firm at elevated levels . The open interest on the gold contract surprisingly rose by 8844 contracts to 437,931 as we have a few more dumb paper players willing to take on the crooked bankers.. The gold deliveries for May rose a bit today at 5.947 tonnes and this is an off month for gold. In silver we continue to see the total number of ounces standing rise above the quantity that stood on first day notice. The number of silver ounces, standing for delivery in May now stands at 16.515 million oz. ( On first day notice: 14.860 million oz.)
Today, physical gold continues to leave London with 6.32 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.
Over at the comex gold is departing as investors are frightened to death of a confiscation similar to what happened at MFGlobal or Refco. Tonight, the Comex registered or dealer gold rests at 1.858 million oz or 57.16 tonnes. The total of all gold at the comex rose just above 8 million oz at 8.001 million oz.
Also at the comex, we saw another customer withdrawal of gold from JPMorgan to the tune of 57,863.091 oz. They now have only 137,377.04 oz left in its customer account.
On the physical front, we had two blockbuster commentaries on the huge importing of gold into China and into India.
China reported a massive 223 tonnes of gold entering the country.
The entire world ex China ex Russia produces around 2200 tonnes of gold or 183 tonnes per month. Thus China took over 100% of monthly global production.
India resumed its purchases of gold and they are on tap to bring in over 1000 tonnes of gold India produces no gold.
However, the purchase of gold is hurting India's current account deficit and thus the government is desperately trying to curve India's appetite for gold.
The change of that happening is zero!!
Today almost the entire commentary will be devoted to the physical side of things.
.........................
Let us now head over to the comex and assess trading over there today:
The total gold comex open interest surprisingly rose by 8844 contracts today from 429,097 all the way up to 437,931, with gold falling by $19.10 on Tuesday.
I guess we got a few new players willing to take on the crooked bankers. The front non active delivery month of May saw its OI rise by 21 contracts up to 148. However we had 3 delivery notices filed on Tuesday. Thus we gained 24 contracts or 2400 additional gold ounces will stand for delivery in May. The next active contract month is June and here the OI fell by 4963 contracts to 239,268 as most of the paper players rolled into August. June is the second biggest delivery month in gold's calender and first day notice is a little over 3 weeks away. The estimated volume today was good at 172,182 contracts. The confirmed volume on Tuesday was very strong at 238,202 contracts.
The total silver comex OI fell again by 368 contracts from 144,524 down to 144,156 with silver's fall in price of 15 cents on Tuesday. The front active silver delivery month of May saw it's OI rise by 2 contracts. We had 8 delivery notices filed on Tuesday so we gained 10 contracts or an additional 50,000 oz will stand for delivery in May. The next delivery month for silver is June and here the OI rose by 1 contract to stand at 372. The next big active contract month is July and here the OI fell by 290 contracts to rest tonight at 78,418. The estimated volume today was good, coming in at 34,754 contracts. The confirmed volume on Tuesday was very good at 49,595.
1. we gained another 50,000 oz of silver standing.
2. We have now fully surpassed what was outstanding on first day notice.
If you will recall, we had 14,860,000 oz filed on that first day notice.
On day number 2 of the delivery cycle, 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 to stand at 16,515,000 oz. 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.
end
Gold closed up $24.90 to $1473.90 (comex closing time). Silver rose by only 12 cents to $23.89 (comex closing time)
In the access market at 5 pm gold and silver are the following :
gold: $1472.00.
silver: $23.88
At the comex, the open interest in silver fell by 368 contracts to 144,156 contracts. The silver OI is holding firm at elevated levels . The open interest on the gold contract surprisingly rose by 8844 contracts to 437,931 as we have a few more dumb paper players willing to take on the crooked bankers.. The gold deliveries for May rose a bit today at 5.947 tonnes and this is an off month for gold. In silver we continue to see the total number of ounces standing rise above the quantity that stood on first day notice. The number of silver ounces, standing for delivery in May now stands at 16.515 million oz. ( On first day notice: 14.860 million oz.)
Today, physical gold continues to leave London with 6.32 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.
Over at the comex gold is departing as investors are frightened to death of a confiscation similar to what happened at MFGlobal or Refco. Tonight, the Comex registered or dealer gold rests at 1.858 million oz or 57.16 tonnes. The total of all gold at the comex rose just above 8 million oz at 8.001 million oz.
Also at the comex, we saw another customer withdrawal of gold from JPMorgan to the tune of 57,863.091 oz. They now have only 137,377.04 oz left in its customer account.
On the physical front, we had two blockbuster commentaries on the huge importing of gold into China and into India.
China reported a massive 223 tonnes of gold entering the country.
The entire world ex China ex Russia produces around 2200 tonnes of gold or 183 tonnes per month. Thus China took over 100% of monthly global production.
India resumed its purchases of gold and they are on tap to bring in over 1000 tonnes of gold India produces no gold.
However, the purchase of gold is hurting India's current account deficit and thus the government is desperately trying to curve India's appetite for gold.
The change of that happening is zero!!
Today almost the entire commentary will be devoted to the physical side of things.
.........................
Let us now head over to the comex and assess trading over there today:
The total gold comex open interest surprisingly rose by 8844 contracts today from 429,097 all the way up to 437,931, with gold falling by $19.10 on Tuesday.
I guess we got a few new players willing to take on the crooked bankers. The front non active delivery month of May saw its OI rise by 21 contracts up to 148. However we had 3 delivery notices filed on Tuesday. Thus we gained 24 contracts or 2400 additional gold ounces will stand for delivery in May. The next active contract month is June and here the OI fell by 4963 contracts to 239,268 as most of the paper players rolled into August. June is the second biggest delivery month in gold's calender and first day notice is a little over 3 weeks away. The estimated volume today was good at 172,182 contracts. The confirmed volume on Tuesday was very strong at 238,202 contracts.
The total silver comex OI fell again by 368 contracts from 144,524 down to 144,156 with silver's fall in price of 15 cents on Tuesday. The front active silver delivery month of May saw it's OI rise by 2 contracts. We had 8 delivery notices filed on Tuesday so we gained 10 contracts or an additional 50,000 oz will stand for delivery in May. The next delivery month for silver is June and here the OI rose by 1 contract to stand at 372. The next big active contract month is July and here the OI fell by 290 contracts to rest tonight at 78,418. The estimated volume today was good, coming in at 34,754 contracts. The confirmed volume on Tuesday was very good at 49,595.
Comex gold/May contract month:
May 8/2013
Ounces
Withdrawals from Dealers Inventory in oz
nil
Withdrawals from Customer Inventory in oz
121,701.923 (JPM*,HSBC)
Deposits to the Dealer Inventory in oz
nil
Deposits to the Customer Inventory, in oz
60,729.875 (Scotia, HSBC)
No of oz served (contracts) today
25 (2500 oz)
No of oz to be served (notices)
123 (12,300)
Total monthly oz gold served (contracts) so far this month
1788 (178,800)
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
*JPM is now down to only 137,377.04 oz left in its customer account.
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 Scotia: 31,796.590 oz
ii) Into HSBC; 28,933.285 oz
total customer deposit: 60,729.875 oz
We had 2 customer withdrawals:
i) Out of HSBC: 63,838.832 oz
ii) Out of JPM*: 57,863.091 oz
total withdrawal: 121,701.923 oz
* JPMorgan is now down to only 137,377.04 oz in its customer account or 4.14 tonnes.
We had 1 adjustment
1.From the HSBC vault: 102.62 oz is adjusted out of the dealer account into the customer account
Thus the dealer inventory rests tonight at its low of 1.858 million oz (57.16) tonnes of gold.
The total of all gold falls a bit at the comex and this time, this time just inches above the 8 million oz as it rests at 8.001 million oz or 248.8 tonnes.
The CME reported that we had 25 notices filed today for 2500 oz of gold today.
To calculate the quantity of gold ounces that will stand, I take the OI standing for May (148) and subtract out today's notices (25) which leaves us with 123 notices or 12,300 oz left to be served upon our longs.
Thus we have the following gold ounces standing for metal in May:
1788 contracts x 100 oz per contract or 178,800 oz (served) + 123 notices or 12,300 oz (to be served upon) = 181,100 oz or 5.947 tonnes of gold.
This is extremely high for a non active month. We gained 2400 additional gold ounces standing for the May comex gold contract today.
end
Silver:
May 8.2013: May silver:
Silver
Ounces
Withdrawals from Dealers Inventory nil Withdrawals from Customer Inventory 439,785.49 oz (Delaware ,Scotia, ) Deposits to the Dealer Inventory nil Deposits to the Customer Inventory 67,873.775 oz (CNT,Brinks) No of oz served (contracts) 0 contracts ( nil oz) No of oz to be served (notices) 903 (4,465,000 oz) Total monthly oz silver served (contracts) 2388 (11,940,000 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 1,315,594.56
Today, we had good activity inside the silver vaults.
we had 0 dealer deposits and 0 dealer withdrawals.
We had 1 customer deposits:
i) Into CNT: 5,062.32 oz
oz
total deposit; 5062.32 oz
We had 3 customer withdrawals:
1) Out of Delaware: 4,979.40 oz
ii) Out of scotia: 30,718.65 oz
iii) Out of Brinks; 300,742.95
total withdrawal: 336,441.000 oz
we had 2 very unusual adjustments today
i) First the unusal adjustment Out of JPM: 636,979.000 was adjusted out of the dealer side of things and 636.979.000 oz was adjusted into the customer account
Note: the perfectly round number with xxx.0000
But the second one takes the cake:
ii) Out of Scotia: 573,219.091 oz was adjusted out of the dealer and lands nowhere!! It is just adjusted out as an accounting error!!...573,219 ounces as an accounting error???
Registered silver at : 44.007 million oz
total of all silver: 163.981 million oz.
The CME reported that we had 0 notices filed for nil oz. To calculate the number of ounces that will stand in silver, I take the OI standing for May (903) and subtract out today's notices (0) which leaves us with 903 notices or 4,515,000 oz
Thus the total number of silver ounces standing in this active delivery month of May is as follows:
2388 contracts x 5000 oz per contract (served) = 11,940,000 + 903 contracts x 5000 oz = 4,515,000 oz ( to be served) = 16,455,000 oz.
Two important points today:
Ounces
| |
Withdrawals from Dealers Inventory in oz
|
nil
|
Withdrawals from Customer Inventory in oz
|
121,701.923 (JPM*,HSBC)
|
Deposits to the Dealer Inventory in oz
|
nil
|
Deposits to the Customer Inventory, in oz
| 60,729.875 (Scotia, HSBC) |
No of oz served (contracts) today
|
25 (2500 oz)
|
No of oz to be served (notices)
|
123 (12,300)
|
Total monthly oz gold served (contracts) so far this month
|
1788 (178,800)
|
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 |
*JPM is now down to only 137,377.04 oz left in its customer account.
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 Scotia: 31,796.590 oz
ii) Into HSBC; 28,933.285 oz
total customer deposit: 60,729.875 oz
We had 2 customer withdrawals:
i) Out of HSBC: 63,838.832 oz
ii) Out of JPM*: 57,863.091 oz
total withdrawal: 121,701.923 oz
* JPMorgan is now down to only 137,377.04 oz in its customer account or 4.14 tonnes.
We had 1 adjustment
1.From the HSBC vault: 102.62 oz is adjusted out of the dealer account into the customer account
1.From the HSBC vault: 102.62 oz is adjusted out of the dealer account into the customer account
Thus the dealer inventory rests tonight at its low of 1.858 million oz (57.16) tonnes of gold.
The total of all gold falls a bit at the comex and this time, this time just inches above the 8 million oz as it rests at 8.001 million oz or 248.8 tonnes.
The total of all gold falls a bit at the comex and this time, this time just inches above the 8 million oz as it rests at 8.001 million oz or 248.8 tonnes.
The CME reported that we had 25 notices filed today for 2500 oz of gold today.
To calculate the quantity of gold ounces that will stand, I take the OI standing for May (148) and subtract out today's notices (25) which leaves us with 123 notices or 12,300 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 (148) and subtract out today's notices (25) which leaves us with 123 notices or 12,300 oz left to be served upon our longs.
Thus we have the following gold ounces standing for metal in May:
1788 contracts x 100 oz per contract or 178,800 oz (served) + 123 notices or 12,300 oz (to be served upon) = 181,100 oz or 5.947 tonnes of gold.
This is extremely high for a non active month. We gained 2400 additional gold ounces standing for the May comex gold contract today.
end
Silver:
May 8.2013: May silver:
| Silver |
Ounces
|
| Withdrawals from Dealers Inventory | nil |
| Withdrawals from Customer Inventory | 439,785.49 oz (Delaware ,Scotia, ) |
| Deposits to the Dealer Inventory | nil |
| Deposits to the Customer Inventory | 67,873.775 oz (CNT,Brinks) |
| No of oz served (contracts) | 0 contracts ( nil oz) |
| No of oz to be served (notices) | 903 (4,465,000 oz) |
| Total monthly oz silver served (contracts) | 2388 (11,940,000 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 | 1,315,594.56 |
Today, we had good activity inside the silver vaults.
we had 0 dealer deposits and 0 dealer withdrawals.
We had 1 customer deposits:
i) Into CNT: 5,062.32 oz
oz
total deposit; 5062.32 oz
We had 3 customer withdrawals:
1) Out of Delaware: 4,979.40 oz
We had 1 customer deposits:
i) Into CNT: 5,062.32 oz
oz
total deposit; 5062.32 oz
We had 3 customer withdrawals:
1) Out of Delaware: 4,979.40 oz
ii) Out of scotia: 30,718.65 oz
iii) Out of Brinks; 300,742.95
total withdrawal: 336,441.000 oz
iii) Out of Brinks; 300,742.95
total withdrawal: 336,441.000 oz
we had 2 very unusual adjustments today
i) First the unusal adjustment Out of JPM: 636,979.000 was adjusted out of the dealer side of things and 636.979.000 oz was adjusted into the customer account
Note: the perfectly round number with xxx.0000
But the second one takes the cake:
ii) Out of Scotia: 573,219.091 oz was adjusted out of the dealer and lands nowhere!! It is just adjusted out as an accounting error!!...573,219 ounces as an accounting error???
i) First the unusal adjustment Out of JPM: 636,979.000 was adjusted out of the dealer side of things and 636.979.000 oz was adjusted into the customer account
Note: the perfectly round number with xxx.0000
But the second one takes the cake:
ii) Out of Scotia: 573,219.091 oz was adjusted out of the dealer and lands nowhere!! It is just adjusted out as an accounting error!!...573,219 ounces as an accounting error???
Registered silver at : 44.007 million oz
total of all silver: 163.981 million oz.
The CME reported that we had 0 notices filed for nil oz. To calculate the number of ounces that will stand in silver, I take the OI standing for May (903) and subtract out today's notices (0) which leaves us with 903 notices or 4,515,000 oz
Thus the total number of silver ounces standing in this active delivery month of May is as follows:
2388 contracts x 5000 oz per contract (served) = 11,940,000 + 903 contracts x 5000 oz = 4,515,000 oz ( to be served) = 16,455,000 oz.
Two important points today:
Thus the total number of silver ounces standing in this active delivery month of May is as follows:
2388 contracts x 5000 oz per contract (served) = 11,940,000 + 903 contracts x 5000 oz = 4,515,000 oz ( to be served) = 16,455,000 oz.
Two important points today:
1. we gained another 50,000 oz of silver standing.
2. We have now fully surpassed what was outstanding on first day notice.
If you will recall, we had 14,860,000 oz filed on that first day notice.
On day number 2 of the delivery cycle, 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 to stand at 16,515,000 oz. 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.
end
The two ETF's that I follow are the GLD and SLV. You must be very careful in trading these vehicles as these funds do not have any beneficial gold or silver behind them. They probably have only paper claims and when the dust settles, on a collapse, there will be countless class action lawsuits trying to recover your lost investment.
There is now evidence that the GLD and SLV are paper settling on the comex.
Now let us check on gold inventories at the GLD first:
May 8.2013:
may 7.2013:
Now let us check on gold inventories at the GLD first:
May 8.2013:
Tonnes1,051.47
Ounces33,805,784.75
Value US$49.598 billion
may 7.2013:
Tonnes1,057.79
Ounces34,008,852.21
Value US$49.089 billion
* * *
Selected news and views on the PMs.....
(a very important commentary/Dave Kranzler/the Golden Truth)
The Truth About The Gold Being Drained From GLD
It's really quite astonishing. Especially the degree to which the negative media reports - especially from Bloomberg News and CNBC - are piling up like dead bodies in the aftermath of the Mt. Vesuvius eruption.
I want to "connect some dots" for everyone who has been worried about the rather large liquidation of gold from GLD. In fact, media citations of this gold drain have proliferated like the odor of burning marijuana in the streets of Denver now that pot has been legalized (trust me, it's everywhere).
But what is really going on? Let's look "under the hood" at some relevant information that is being left out of a lot of the financial reporting in the U.S. To begin with, the way gold is put into or taken out of GLD is via the Authorized Participants. These are the primary market makers in GLD shares. When they collect a basket of 100,000 shares from buyers or sellers, they take the cash proceeds and either buy gold to move into GLD or buy gold from GLD to remove the gold from the trust. The current list of AP's, at least according to GLD's latest 10-K filing are: Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sach, HSBC, JP Morgan, Merrill Lynch, Morgan Stanley, Newedge (a online hedge fund oriented futures bookie), RBC, UBS, and Virtu Financial (another online hedge fund bookmaker).
If the price of gold - for whatever reason, legitimate or not - gets crushed, it will tend to generate a lot of selling in the shares of GLD. In turn, that will generate the ability of the AP's to collect 100,000 share baskets and convert those baskets into gold that is removed from the GLD vault and into the "custody" of the specific AP who is turning in the shares. At today's price of gold, 100,000 shares represents about $14.2 million - 9,627 ozs of gold, or roughly .29 tonnes. Since the beginning of the year, roughly 293 tonnes of gold has been drained from GLD, which had 1350 tonnes in it - allegedly - on 12/31/12. Nearly 30% of the total amount of gold that has been drained from GLD occurred in the 3 weeks since the April 16-17 price massacre.
So where, you might ask, is all this gold going? It's not just vaporizing into thin air. Using today's price of gold, 293 tonnes is worth about $14.5 billion. If you look at that AP list above, all of them except the two hedge fund bookies are LBMA "bullion bank" market makers. Unless these bullion banks are keeping the gold for themselves - and if any of them were, it would have to show up in the footnotes of their next 10-Q - that gold is being delivered to buyers of it on the other side.
So, who would be buying this gold? Based on numerous news service reports, which often seem to never make their way into the U.S. financial media reporting, India and China combined through the end of April have imported somewhere around 700 tonnes of gold, plus or minus 100 tonnes. What's 100 tonnes among bullion bank friends when GLD still has 1,057 tonnes left? Here's one news report - actually from Bloomberg - which is calculating that China purchased around 223 tonnes of gold in March alone: LINK That is a staggering amount of gold (mostly 400 oz bars - the type of bar in GLD's vaults) when you consider that the global annual mined production of gold is around 2500 tonnes, and declining.
And here's an account out of India about the massive gold demand there in April and May:
This rabid demand for 400 oz. gold bars from China/India (not to mention Russia, Turkey, Viet Nam, pretty much all of southeast Asia) goes a long way toward explaining the rumors that were circulating during February and intensified in March that the LBMA was in danger of facing a big delivery default.
Layer on top of this the fact that many wealthy families in Europe are now demanding delivery of the gold bars that JPM and other bullion banks are holding custody of. The report on this from my friend was confirmed independently by a source of Bill Murphy's over in Europe. This is exactly why ABN/Amro announced a week before the $200 hit on gold that they would no longer deliver physical gold from their gold investment account product and would instead only settle redemptions in cash. That product catered to high net worth investors over there. ABN didn't have the gold that would be required to satisfy delivery claims. It was a fractional bullion investment account, just like all the other big bank "bullion" investment products. Morgan Stanley settled a lawsuit several years ago for this type of scheme using silver. But they never admitted guilt.
So in connecting all the dots, there is no question in my mind that the big price smashing of gold in mid-April was an operation designed to shake loose enough 400 oz. gold bars out of GLD in order to satisfy the enormous delivery demands coming from Asia, India and even within Europe. GLD is the only possible source of above-ground 400 oz. gold bars that could be used to satisfy this enormous demand for physically deliverable bars.
At some point, and probably sooner than most people are willing to believe, this physical demand is going to force an upward "explosion" of the paper derivatives being used to hold down the spot price right now. In 30 years of studying and trading the financial markets, I have never seen contrarian indicators for any market sector flashing as bullishly as they are for gold and silver, which further confirms my view that the metals have bottomed and are getting ready to give those of us who held on the ride of a lifetime.
WEDNESDAY, MAY 8, 2013
The Truth About The Gold Being Drained From GLD
In over 30 years of studying, researching, trading and investing in the financial markets, I have never seen the contrarian signals flashing as bullishly as they are for gold right now.
It's really quite astonishing. Especially the degree to which the negative media reports - especially from Bloomberg News and CNBC - are piling up like dead bodies in the aftermath of the Mt. Vesuvius eruption.
I want to "connect some dots" for everyone who has been worried about the rather large liquidation of gold from GLD. In fact, media citations of this gold drain have proliferated like the odor of burning marijuana in the streets of Denver now that pot has been legalized (trust me, it's everywhere).
But what is really going on? Let's look "under the hood" at some relevant information that is being left out of a lot of the financial reporting in the U.S. To begin with, the way gold is put into or taken out of GLD is via the Authorized Participants. These are the primary market makers in GLD shares. When they collect a basket of 100,000 shares from buyers or sellers, they take the cash proceeds and either buy gold to move into GLD or buy gold from GLD to remove the gold from the trust. The current list of AP's, at least according to GLD's latest 10-K filing are: Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sach, HSBC, JP Morgan, Merrill Lynch, Morgan Stanley, Newedge (a online hedge fund oriented futures bookie), RBC, UBS, and Virtu Financial (another online hedge fund bookmaker).
If the price of gold - for whatever reason, legitimate or not - gets crushed, it will tend to generate a lot of selling in the shares of GLD. In turn, that will generate the ability of the AP's to collect 100,000 share baskets and convert those baskets into gold that is removed from the GLD vault and into the "custody" of the specific AP who is turning in the shares. At today's price of gold, 100,000 shares represents about $14.2 million - 9,627 ozs of gold, or roughly .29 tonnes. Since the beginning of the year, roughly 293 tonnes of gold has been drained from GLD, which had 1350 tonnes in it - allegedly - on 12/31/12. Nearly 30% of the total amount of gold that has been drained from GLD occurred in the 3 weeks since the April 16-17 price massacre.
So where, you might ask, is all this gold going? It's not just vaporizing into thin air. Using today's price of gold, 293 tonnes is worth about $14.5 billion. If you look at that AP list above, all of them except the two hedge fund bookies are LBMA "bullion bank" market makers. Unless these bullion banks are keeping the gold for themselves - and if any of them were, it would have to show up in the footnotes of their next 10-Q - that gold is being delivered to buyers of it on the other side.
So, who would be buying this gold? Based on numerous news service reports, which often seem to never make their way into the U.S. financial media reporting, India and China combined through the end of April have imported somewhere around 700 tonnes of gold, plus or minus 100 tonnes. What's 100 tonnes among bullion bank friends when GLD still has 1,057 tonnes left? Here's one news report - actually from Bloomberg - which is calculating that China purchased around 223 tonnes of gold in March alone: LINK That is a staggering amount of gold (mostly 400 oz bars - the type of bar in GLD's vaults) when you consider that the global annual mined production of gold is around 2500 tonnes, and declining.
And here's an account out of India about the massive gold demand there in April and May:
“The biggest slump in gold prices in more than three decades on April 15 spurred banks, traders and jewelers to import more than 100 tons last month, said Rajesh Khosla, managing director of MMTC-PAMP India Pvt. Purchases this month will match April’s imports, he said”And here's a refreshingly honest assessment of the situation from an Indian newspaper:
The jump in Chinese physical demand also prompted some banks to ship in more supplies from London and Swiss vaults, traders said LINKIf you read that entire article, you'll see that in 2012, India/China imported more than 1/3 of the global gold production and will likely account for close to 50% this year. This is the unintended consequences for the Central Banks who are spear-heading the manipulation of the price of gold for the purposes of defending the dollar and fiat currencies.
This rabid demand for 400 oz. gold bars from China/India (not to mention Russia, Turkey, Viet Nam, pretty much all of southeast Asia) goes a long way toward explaining the rumors that were circulating during February and intensified in March that the LBMA was in danger of facing a big delivery default.
Layer on top of this the fact that many wealthy families in Europe are now demanding delivery of the gold bars that JPM and other bullion banks are holding custody of. The report on this from my friend was confirmed independently by a source of Bill Murphy's over in Europe. This is exactly why ABN/Amro announced a week before the $200 hit on gold that they would no longer deliver physical gold from their gold investment account product and would instead only settle redemptions in cash. That product catered to high net worth investors over there. ABN didn't have the gold that would be required to satisfy delivery claims. It was a fractional bullion investment account, just like all the other big bank "bullion" investment products. Morgan Stanley settled a lawsuit several years ago for this type of scheme using silver. But they never admitted guilt.
So in connecting all the dots, there is no question in my mind that the big price smashing of gold in mid-April was an operation designed to shake loose enough 400 oz. gold bars out of GLD in order to satisfy the enormous delivery demands coming from Asia, India and even within Europe. GLD is the only possible source of above-ground 400 oz. gold bars that could be used to satisfy this enormous demand for physically deliverable bars.
At some point, and probably sooner than most people are willing to believe, this physical demand is going to force an upward "explosion" of the paper derivatives being used to hold down the spot price right now. In 30 years of studying and trading the financial markets, I have never seen contrarian indicators for any market sector flashing as bullishly as they are for gold and silver, which further confirms my view that the metals have bottomed and are getting ready to give those of us who held on the ride of a lifetime.
Now the breakdown: First the gold imports into China:
Huge purchases of gold in March by Mainland China: an astonishing 223.52 metric tonnes.
Net imports (after subtracting flows to Hong Kong) equal to 130 tonnes
Gold consumption jumped 26% in the first 3 months of this year to 320 tonnes. All of last year consumption equaled 776 tonnes. The Chinese consumer is on fire to buy gold.
Remember that the world produces ex China ex Russia 2,200 tonnes of gold or 183 tonnes per month. You can see from the above data that China is taking everything that the west will give them
(courtesy Bloomberg/GATA)
That's some 'bear market': China is taking all the gold it can get
Submitted by cpowell on Wed, 2013-05-08 02:45. Section: Daily Dispatches
China's Gold Purchases From Hong Kong Expand to Record
By Feiwen Rong
Bloomberg News
Tuesday, May 7, 2013
Gold imports by China from Hong Kong more than doubled to an all-time high in March as buyers in the biggest consumer after India boosted purchases, underscoring increased bullion demand in the world's second-largest economy.
Mainland buyers purchased 223,519 kilograms (223.52 metric tons), including scrap, compared with 97,106 kilograms in February, according to Hong Kong government data yesterday. Net imports by the mainland, after deducting flows from China into Hong Kong, were 130,038 kilograms compared with 60,947 kilograms a month earlier, according to Bloomberg calculations.
The shipments preceded gold's plunge into a bear market last month, with prices tumbling 14 percent in the two days through April 15 in the worst drop in three decades. The slump led to a surge in demand for jewelry, coins, and bars from India and the United States to China. Separate data yesterday showed China's gold usage rose 26 percent in the first quarter as prices fell.
"This is quite out of expectation as all these imports were done before the market slump in April," said Qu Mingyu, a trader at Bank of China, one of the country's three largest bullion banks. "Judging from the explosive growth of trading volume on the Shanghai Gold Exchange in the second half of April, and anecdotes that many jewelry shops are sold out throughout the country, imports might be even more substantial in April."
Gold for immediate delivery in London dropped 4.6 percent in the first three months of the year as investment demand slumped, then plunged 7.6 percent in April. Bullion traded at $1,448.29 an ounce at 8:08 a.m. in Shanghai. Gold of 99.99 percent purity on the Shanghai Gold Exchange dropped 1.2 percent in March, and was at 293.5 yuan a gram ($1,483 an ounce).
The purchases in March were more than three times higher than the 62,913 kilograms in the same month last year, according to the data from Hong Kong's Census and Statistics Department. Mainland China doesn't publish such data.
Exports of gold to Hong Kong from China were 93,481 kilograms in March, according to a separate Statistics Department statement, up from 36,159 kilograms in February, and compared with 32,484 kilograms in March 2012.
Volumes for the spot contract on the Shanghai exchange, China's biggest cash bullion market, topped 323 tons between April 16 and May 3, according to data compiled by Bloomberg. Volumes reached a record 43,272 kilograms on April 22.
"The trading volume of the spot gold contract on the exchange basically reflected physical demand as the contract is used by fabricators to take delivery of their raw materials," said Bank of China's Qu.
Retail gold sales tripled across China on April 15-16 after the rout, according to the China Gold Association. Zhang Bingnan, deputy head of the association, said on May 2 that there's a shortage of gold jewelry inventory in the country after consumers bought up supplies and the industry is increasing raw- aterial purchases to ramp up production.
China's gold consumption jumped 26 percent to 320.54 tons in the first three months from a year earlier, the association said yesterday. Consumption totaled 776.1 tons in 2012, down from 779.8 tons the previous year, according to the producer- funded World Gold Council. China and India account for more than half of global demand.
end
Wow!!! for the second straight month India's physical gold imports topped 100 tonnes. We will probably see in excess of 1000 tonnes of importation of gold into India this year.
(courtesy Bloomberg news/Mishra)
What a 'bear market'! India's gold imports seen topping 100 tonnes for second month
Submitted by cpowell on Wed, 2013-05-08 12:17. Section: Daily Dispatches
Gold Imports by India Seen Topping 100 Tons for a Second Month
By Prabhudatta Mishra
Bloomberg News
Wednesday, May 8, 2013
NEW DELHI -- Gold imports by India, the world's largest consumer, are set to exceed 100 metric tons for a second month in May as jewelers rush to beat central bank curbs on overseas bullion purchases by banks, a refiner said.
The biggest slump in gold prices in more than three decades on April 15 spurred banks, traders, and jewelers to import more than 100 tons last month, said Rajesh Khosla, managing director of MMTC-PAMP India Pvt. Purchases this month will match April's imports, he said. MMTC-PAMP's refinery in northern Indian state of Haryana can process 100 tons of gold, 600 tons of silver, and make 2.5 million pieces of coins a year, he said.
The Reserve Bank of India, or RBI, will issue guidelines by the end of this month to restrict banks from importing gold on a consignment basis as it seeks to reduce domestic demand and curb a record current-account deficit, the central bank said on May 3. Banks will be allowed to buy on a consignment basis to meet only genuine needs of exporters of jewelry. The bulk of the imports by banks now is on a consignment basis that doesn't require them to fund the purchase, RBI said.
"The imports this month look as good as in April as everyone is trying to import as much as possible before the RBI guidelines are issued," Khosla said in an interview in New Delhi yesterday. "'The price looks good, let's import,' every jeweler seems to be saying. Time will tell whether they were right or not."
Retail buyers flocked to jewelry stores and bank outlets in India to buy ornaments and coins after gold plummeted 14 percent in two sessions through April 15 in the worst slide since 1983, causing a shortage in supplies. The Reserve Bank has said the current-account shortfall, exacerbated by bullion imports, and consumer-price inflation above 10 percent are among risks that constrain room for further interest rate cuts to revive economic growth from the lowest in a decade.
"At current prices, it looks the imports will be more than last year," said Khosla, whose refinery is a venture between state-owned MMTC Ltd. (MMTC) and PAMP SA of Switzerland. "If the central bank wants to restrict, imports will fall."
India's gold imports dropped 11 percent last year to 860 tons from a record 969 tons in 2011, the World Gold Council estimates. Demand for jewelry and investment fell to 864.2 tons in 2012, the second straight year of decline, it said.
India has tripled import taxes on gold from as low as 2 percent in January last year after the current-account deficit, the broadest measure of trade, widened and the rupee slumped to a record against the U.S. dollar. Finance Minister Palaniappan Chidambaram has blamed the deficit on a "passion" for gold, saying the gap is a greater concern than the worst budget deficit among the so-called BRIC nations. The deficit widened to $32.6 billion in the last quarter of 2012.
While bullion has rebounded from a two-year low of $1,321.95 an ounce on April 16, driven by coin and jewelry demand from the U.S. to China and India, it is 24 percent below the record $1,921.15 reached in 2011. Gold for immediate delivery rose as much as 0.4 percent to $1,458.85 an ounce, and was at $1,454.59 at 10:24 a.m. in Mumbai.
"The global price of gold seems to have stabilized at current levels," Khosla said. "Further increase in the price depends on economic recovery in the U.S. and Europe."
Gold fell into a bear market in April as investors sold the metal in favor of riskier assets, spurred by expectations that the global economy was recovering. Holdings in the SPDR Gold Trust, the biggest bullion-backed exchange-traded product, fell 0.4 percent to 1,057.79 metric tons yesterday, the lowest level since March 2009, according to data compiled by Bloomberg.
Retail demand for gold in India was good ahead of the wedding season and the Akshaya Tritiya festival on May 13, Bachhraj Bamalwa, a director and former chairman of the All India Gems & Jewellery Trade Federation, said yesterday. Jewelers are paying between $10 an ounce and $12 an ounce over the London cash price to secure supplies, compared with $2 an ounce before the price slump, he said.
Akshaya Tritiya festival is considered by the country's more than 900 million Hindus as the traditional day to buy precious metals. Bullion is bought during festivals and marriages as part of the bridal trousseau or gifted in the form of jewelry by relatives.
The appetite for gold continued to be "very strong" in India and an index of physical flows showed demand five times that of a 12-month average, UBS AG said on May 3. "Appetite is likely to hold up as we get closer to the Akshaya Tritiya festival," it said.
An insightful commentary on what happens to asset prices with the 85 billion-100 billion USA purchases of bond assets:
end,
Paul Yusem, financial advisor and a great friend of GATA writes this to Claudia Carpenter of Bloomberg: (Claudia has never stated that gold was manipulated:
Please read his letter carefully!!
(courtesy Paul Yusem/financial advisor)
Hello Claudia,
I noticed in this article that it was mentioned that investors sold 174 tonnes of gold through ETPs last month. Let’s compare 174 tonnes to current supply and demand.
For a back of the envelope calculation, gold mine supply in 2012 was 2,700 tonnes. Since gold production in China and Russia does not leave the country, we can subtract 400 tonnes for China and 200 tonnes for Russia and we are down to 2,100 tonnes. UBS reported that Indian demand is 5 times the average of the last 12 months. Even with gold shortages in India, Indian demand should exceed 1,000 tonnes in 2013. We are down to 1,100 tonnes of gold. Assume central banks purchase another 500 tonnes of gold for 2013. We are down to 600 tonnes. China purchased 557 tonnes of gold through Hong Kong in 2012. China purchased almost 100 tonnes of gold through Hong Kong just in February of 2013. China will easily purchase 600 tonnes through Hong Kong in 2013. We are down to 0 tonnes of gold. This is where it gets interesting.
Investors took delivery of 1,000 tonnes of gold in Shanghai through April of 2013. For an aggressive estimate, we could multiply 1,000 x 3 for end of the year totals. For conservative estimates, we can multiply 1,000 tonnes x 2 = 2,000 tonnes. For confirmation of these numbers, google Andrew Maguire and his futures trading service. I believe Andrew Maguire is in London. You could be neighbors. Wouldn’t that be interesting? After subtracting 2,000 tonnes from 0, we are at – 2,000 tonnes of gold meaning 2,000 tonnes is coming from existing stockpiles.
At the LBMA, investors are taking delivery of 10 to 20 tonnes daily (google Andrew Maguire). Let’s be conservative and say that investors are taking delivery of 7 tonnes per day. That works out to about 1,800 tonnes for 2013. We are now down to – 3,800 tonnes.
Russia has one of the largest foreign currency reserves in the world at $528 Billion and Vladimir was seen holding a gold bar. I am putting Vladimir down for another 500 tonnes over and above the official Russian government purchases for 2013. We are down to – 4,300 tonnes.
I have not even included US demand, Vietnam, Turkey and the rest of the Middle East as well as the rest of the world. Let’s put the rest of the world down for a conservative 1,000 tonnes. We are down to – 5,300 tonnes.
This is at least 5,300 tonnes that have to come from existing stockpiles to balance the current gold market. This 5,300 tonnes I believe is a somewhat conservative number. Contrast 5,300 tonnes to investors selling 174 tonnes and I think you get the picture. I have not included gold scrap in the calculation since existing gold scrap figures are too unreliable.
How about the ultimate contrarian indicator – the small speculator in gold futures? The small speculator is net short for the first time since the 1st quarter of 2001. That was at the bottom of the bear market when the small speculator was last net short gold futures.
Gold futures may be going lower due to futures trading on the Comex. However, the abnormally low price has triggered an avalanche of gold buying. To keep gold prices anywhere around current levels will cost the bankers at least 5,300 tonnes over and above 2013 mine supply.
Have you heard the expression, he who has the gold makes the rules? By the way, how is your Chinese?
Paul
(courtesy Dan Norcini/Kingworldnews)
History doesn't repeat itself but it does rhyme ..... Will history for gold and silver " rhyme " May 9th - 14th , in a fashion similar to April 12th - 15th ?
http://silverdoctors.com/bo-polny-silver-extremely-vulnerable-to-a-break-of-22-bottom-fri-mon/#more-26268
From Jim Sinclair:
I am writing to provide an update to the original post on JSMineset dated April 19, 2013. Click here to view the original post… http://www.jsmineset.com/2013/
In the gold chart provided back in April, there were two dates: the first May 2-3 and the second May 10-13, 2013 were noted as turn dates.
May 2-3 was to mark a short term high. If you check the price of gold you will see it did! Gold’s daily time clock from the rise off the April 15, 2013 low ended May 3, 2013.
The next date, May 10-13 is to mark the low off the May 2-3 high for both gold and silver.
With regards to silver, this is a time for extreme caution! What is next? May 9-10, 2013… the drop! The question is how low will it go? The bottom comes in either Friday May 10, 2013 or Monday May 13, 2013. Will support at $22 hold or not? That is the big question. Again until May 13, 2013 has passed, silver is extremely vulnerable to a support break!
Gold’s low will hold due to its impressive rise since its bottom April 15, 2013.
Have a great day,
CIGA Bo Polny
Now the breakdown: First the gold imports into China:
Huge purchases of gold in March by Mainland China: an astonishing 223.52 metric tonnes.
Net imports (after subtracting flows to Hong Kong) equal to 130 tonnes
Gold consumption jumped 26% in the first 3 months of this year to 320 tonnes. All of last year consumption equaled 776 tonnes. The Chinese consumer is on fire to buy gold.
Remember that the world produces ex China ex Russia 2,200 tonnes of gold or 183 tonnes per month. You can see from the above data that China is taking everything that the west will give them
(courtesy Bloomberg/GATA)
That's some 'bear market': China is taking all the gold it can get
Submitted by cpowell on Wed, 2013-05-08 02:45. Section: Daily Dispatches
China's Gold Purchases From Hong Kong Expand to Record
By Feiwen Rong
Bloomberg News
Tuesday, May 7, 2013
Bloomberg News
Tuesday, May 7, 2013
Gold imports by China from Hong Kong more than doubled to an all-time high in March as buyers in the biggest consumer after India boosted purchases, underscoring increased bullion demand in the world's second-largest economy.
Mainland buyers purchased 223,519 kilograms (223.52 metric tons), including scrap, compared with 97,106 kilograms in February, according to Hong Kong government data yesterday. Net imports by the mainland, after deducting flows from China into Hong Kong, were 130,038 kilograms compared with 60,947 kilograms a month earlier, according to Bloomberg calculations.
The shipments preceded gold's plunge into a bear market last month, with prices tumbling 14 percent in the two days through April 15 in the worst drop in three decades. The slump led to a surge in demand for jewelry, coins, and bars from India and the United States to China. Separate data yesterday showed China's gold usage rose 26 percent in the first quarter as prices fell.
"This is quite out of expectation as all these imports were done before the market slump in April," said Qu Mingyu, a trader at Bank of China, one of the country's three largest bullion banks. "Judging from the explosive growth of trading volume on the Shanghai Gold Exchange in the second half of April, and anecdotes that many jewelry shops are sold out throughout the country, imports might be even more substantial in April."
Gold for immediate delivery in London dropped 4.6 percent in the first three months of the year as investment demand slumped, then plunged 7.6 percent in April. Bullion traded at $1,448.29 an ounce at 8:08 a.m. in Shanghai. Gold of 99.99 percent purity on the Shanghai Gold Exchange dropped 1.2 percent in March, and was at 293.5 yuan a gram ($1,483 an ounce).
The purchases in March were more than three times higher than the 62,913 kilograms in the same month last year, according to the data from Hong Kong's Census and Statistics Department. Mainland China doesn't publish such data.
Exports of gold to Hong Kong from China were 93,481 kilograms in March, according to a separate Statistics Department statement, up from 36,159 kilograms in February, and compared with 32,484 kilograms in March 2012.
Volumes for the spot contract on the Shanghai exchange, China's biggest cash bullion market, topped 323 tons between April 16 and May 3, according to data compiled by Bloomberg. Volumes reached a record 43,272 kilograms on April 22.
"The trading volume of the spot gold contract on the exchange basically reflected physical demand as the contract is used by fabricators to take delivery of their raw materials," said Bank of China's Qu.
Retail gold sales tripled across China on April 15-16 after the rout, according to the China Gold Association. Zhang Bingnan, deputy head of the association, said on May 2 that there's a shortage of gold jewelry inventory in the country after consumers bought up supplies and the industry is increasing raw- aterial purchases to ramp up production.
China's gold consumption jumped 26 percent to 320.54 tons in the first three months from a year earlier, the association said yesterday. Consumption totaled 776.1 tons in 2012, down from 779.8 tons the previous year, according to the producer- funded World Gold Council. China and India account for more than half of global demand.
end
Wow!!! for the second straight month India's physical gold imports topped 100 tonnes. We will probably see in excess of 1000 tonnes of importation of gold into India this year.
(courtesy Bloomberg news/Mishra)
Wow!!! for the second straight month India's physical gold imports topped 100 tonnes. We will probably see in excess of 1000 tonnes of importation of gold into India this year.
(courtesy Bloomberg news/Mishra)
What a 'bear market'! India's gold imports seen topping 100 tonnes for second month
Submitted by cpowell on Wed, 2013-05-08 12:17. Section: Daily Dispatches
Gold Imports by India Seen Topping 100 Tons for a Second Month
By Prabhudatta Mishra
Bloomberg News
Wednesday, May 8, 2013
Bloomberg News
Wednesday, May 8, 2013
NEW DELHI -- Gold imports by India, the world's largest consumer, are set to exceed 100 metric tons for a second month in May as jewelers rush to beat central bank curbs on overseas bullion purchases by banks, a refiner said.
The biggest slump in gold prices in more than three decades on April 15 spurred banks, traders, and jewelers to import more than 100 tons last month, said Rajesh Khosla, managing director of MMTC-PAMP India Pvt. Purchases this month will match April's imports, he said. MMTC-PAMP's refinery in northern Indian state of Haryana can process 100 tons of gold, 600 tons of silver, and make 2.5 million pieces of coins a year, he said.
The Reserve Bank of India, or RBI, will issue guidelines by the end of this month to restrict banks from importing gold on a consignment basis as it seeks to reduce domestic demand and curb a record current-account deficit, the central bank said on May 3. Banks will be allowed to buy on a consignment basis to meet only genuine needs of exporters of jewelry. The bulk of the imports by banks now is on a consignment basis that doesn't require them to fund the purchase, RBI said.
"The imports this month look as good as in April as everyone is trying to import as much as possible before the RBI guidelines are issued," Khosla said in an interview in New Delhi yesterday. "'The price looks good, let's import,' every jeweler seems to be saying. Time will tell whether they were right or not."
Retail buyers flocked to jewelry stores and bank outlets in India to buy ornaments and coins after gold plummeted 14 percent in two sessions through April 15 in the worst slide since 1983, causing a shortage in supplies. The Reserve Bank has said the current-account shortfall, exacerbated by bullion imports, and consumer-price inflation above 10 percent are among risks that constrain room for further interest rate cuts to revive economic growth from the lowest in a decade.
"At current prices, it looks the imports will be more than last year," said Khosla, whose refinery is a venture between state-owned MMTC Ltd. (MMTC) and PAMP SA of Switzerland. "If the central bank wants to restrict, imports will fall."
India's gold imports dropped 11 percent last year to 860 tons from a record 969 tons in 2011, the World Gold Council estimates. Demand for jewelry and investment fell to 864.2 tons in 2012, the second straight year of decline, it said.
India has tripled import taxes on gold from as low as 2 percent in January last year after the current-account deficit, the broadest measure of trade, widened and the rupee slumped to a record against the U.S. dollar. Finance Minister Palaniappan Chidambaram has blamed the deficit on a "passion" for gold, saying the gap is a greater concern than the worst budget deficit among the so-called BRIC nations. The deficit widened to $32.6 billion in the last quarter of 2012.
While bullion has rebounded from a two-year low of $1,321.95 an ounce on April 16, driven by coin and jewelry demand from the U.S. to China and India, it is 24 percent below the record $1,921.15 reached in 2011. Gold for immediate delivery rose as much as 0.4 percent to $1,458.85 an ounce, and was at $1,454.59 at 10:24 a.m. in Mumbai.
"The global price of gold seems to have stabilized at current levels," Khosla said. "Further increase in the price depends on economic recovery in the U.S. and Europe."
Gold fell into a bear market in April as investors sold the metal in favor of riskier assets, spurred by expectations that the global economy was recovering. Holdings in the SPDR Gold Trust, the biggest bullion-backed exchange-traded product, fell 0.4 percent to 1,057.79 metric tons yesterday, the lowest level since March 2009, according to data compiled by Bloomberg.
Retail demand for gold in India was good ahead of the wedding season and the Akshaya Tritiya festival on May 13, Bachhraj Bamalwa, a director and former chairman of the All India Gems & Jewellery Trade Federation, said yesterday. Jewelers are paying between $10 an ounce and $12 an ounce over the London cash price to secure supplies, compared with $2 an ounce before the price slump, he said.
Akshaya Tritiya festival is considered by the country's more than 900 million Hindus as the traditional day to buy precious metals. Bullion is bought during festivals and marriages as part of the bridal trousseau or gifted in the form of jewelry by relatives.
The appetite for gold continued to be "very strong" in India and an index of physical flows showed demand five times that of a 12-month average, UBS AG said on May 3. "Appetite is likely to hold up as we get closer to the Akshaya Tritiya festival," it said.
An insightful commentary on what happens to asset prices with the 85 billion-100 billion USA purchases of bond assets:
end,
Paul Yusem, financial advisor and a great friend of GATA writes this to Claudia Carpenter of Bloomberg: (Claudia has never stated that gold was manipulated:
Please read his letter carefully!!
(courtesy Paul Yusem/financial advisor)
Hello Claudia,
I noticed in this article that it was mentioned that investors sold 174 tonnes of gold through ETPs last month. Let’s compare 174 tonnes to current supply and demand.
For a back of the envelope calculation, gold mine supply in 2012 was 2,700 tonnes. Since gold production in China and Russia does not leave the country, we can subtract 400 tonnes for China and 200 tonnes for Russia and we are down to 2,100 tonnes. UBS reported that Indian demand is 5 times the average of the last 12 months. Even with gold shortages in India, Indian demand should exceed 1,000 tonnes in 2013. We are down to 1,100 tonnes of gold. Assume central banks purchase another 500 tonnes of gold for 2013. We are down to 600 tonnes. China purchased 557 tonnes of gold through Hong Kong in 2012. China purchased almost 100 tonnes of gold through Hong Kong just in February of 2013. China will easily purchase 600 tonnes through Hong Kong in 2013. We are down to 0 tonnes of gold. This is where it gets interesting.
Investors took delivery of 1,000 tonnes of gold in Shanghai through April of 2013. For an aggressive estimate, we could multiply 1,000 x 3 for end of the year totals. For conservative estimates, we can multiply 1,000 tonnes x 2 = 2,000 tonnes. For confirmation of these numbers, google Andrew Maguire and his futures trading service. I believe Andrew Maguire is in London. You could be neighbors. Wouldn’t that be interesting? After subtracting 2,000 tonnes from 0, we are at – 2,000 tonnes of gold meaning 2,000 tonnes is coming from existing stockpiles.
At the LBMA, investors are taking delivery of 10 to 20 tonnes daily (google Andrew Maguire). Let’s be conservative and say that investors are taking delivery of 7 tonnes per day. That works out to about 1,800 tonnes for 2013. We are now down to – 3,800 tonnes.
Russia has one of the largest foreign currency reserves in the world at $528 Billion and Vladimir was seen holding a gold bar. I am putting Vladimir down for another 500 tonnes over and above the official Russian government purchases for 2013. We are down to – 4,300 tonnes.
I have not even included US demand, Vietnam, Turkey and the rest of the Middle East as well as the rest of the world. Let’s put the rest of the world down for a conservative 1,000 tonnes. We are down to – 5,300 tonnes.
This is at least 5,300 tonnes that have to come from existing stockpiles to balance the current gold market. This 5,300 tonnes I believe is a somewhat conservative number. Contrast 5,300 tonnes to investors selling 174 tonnes and I think you get the picture. I have not included gold scrap in the calculation since existing gold scrap figures are too unreliable.
How about the ultimate contrarian indicator – the small speculator in gold futures? The small speculator is net short for the first time since the 1st quarter of 2001. That was at the bottom of the bear market when the small speculator was last net short gold futures.
Gold futures may be going lower due to futures trading on the Comex. However, the abnormally low price has triggered an avalanche of gold buying. To keep gold prices anywhere around current levels will cost the bankers at least 5,300 tonnes over and above 2013 mine supply.
Have you heard the expression, he who has the gold makes the rules? By the way, how is your Chinese?
Paul
(courtesy Dan Norcini/Kingworldnews)
History doesn't repeat itself but it does rhyme ..... Will history for gold and silver " rhyme " May 9th - 14th , in a fashion similar to April 12th - 15th ?
http://silverdoctors.com/bo-polny-silver-extremely-vulnerable-to-a-break-of-22-bottom-fri-mon/#more-26268
From Jim Sinclair:
I am writing to provide an update to the original post on JSMineset dated April 19, 2013. Click here to view the original post… http://www.jsmineset.com/2013/04/19/1300-goldnever-again/ In the gold chart provided back in April, there were two dates: the first May 2-3 and the second May 10-13, 2013 were noted as turn dates.May 2-3 was to mark a short term high. If you check the price of gold you will see it did! Gold’s daily time clock from the rise off the April 15, 2013 low ended May 3, 2013.The next date, May 10-13 is to mark the low off the May 2-3 high for both gold and silver.With regards to silver, this is a time for extreme caution! What is next? May 9-10, 2013… the drop! The question is how low will it go? The bottom comes in either Friday May 10, 2013 or Monday May 13, 2013. Will support at $22 hold or not? That is the big question. Again until May 13, 2013 has passed, silver is extremely vulnerable to a support break!Gold’s low will hold due to its impressive rise since its bottom April 15, 2013.Have a great day,CIGA Bo Polny
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