http://www.caseyresearch.com/gsd/edition/goldmoney-interviews-sprotts-john-embry-on-golds-prospects
http://harveyorgan.blogspot.com/2013/06/gld-loses-another-632-tonnes-of.html
¤ YESTERDAY IN GOLD & SILVER
Gold's attempt to rally in morning trading in the Far East ran into a seller of last resort around noon in Tokyo...and from there it was all quietly down hill into the 9:30 open of the New York equity markets. The subsequent rally got cut off at the knees once the London p.m. gold fix was in...and the gold price bounced back a bit in electronic trading.
When all was said and done, gold closed at $1,385.70 spot...down $2.70 from Wednesday's close. Gross volume was around 138,000 contracts.
It was virtually the same chart pattern in silver, except that silver finished the Thursday session in New York at $21.85 spot...up 7 cents. Net volume was only 25,500 contracts.
The highs and lows for silver, like gold, aren't worth mentioning.
For whatever reason, both platinum and palladium got sold down pretty hard yesterday. Platinum was down 1.89%...and palladium got hit for 3.17%.
The dollar index closed late Wednesday afternoon in New York at 80.91...and once Far East trading began on their Thursday, the index slid to its low of the day [80.53] just before 2:30 p.m. in Hong Kong trading. The subsequent rally hit its high of 80.95 at 9:00 a.m. EDT in New York...and slid into the close [80.72] from there. The dollar index closed down another 19 basis points, finishing the Thursday session at 80.72.
* * *
The CME's Daily Delivery Report showed that 172 gold and zero silver contracts were posted for delivery within the Comex-approved depositories on Monday. The only two short/issuers were Goldman Sachs with 98 contracts...and Jefferies with 74 contracts. HSBC USA, Barclays and Canada's Bank of Nova Scotia were the long/stoppers of note, with 99, 40 and 28 contracts respectively. The link to yesterday's Issuers and Stoppers Report is here.
GLD reported that an authorized participant withdrew 202,982 troy ounces of gold yesterday...and as of 10:35 p.m. EDT last night, there were no reported changes in SLV.
Joshua Gibbons, the Guru of the SLV Bar List, had this to say in his weekly report yesterday..."Analysis of the 12 June bar list, and comparison to the previous week's list...338,054.3 oz. were added (all to JPM London V)...and no bars were removed or had a serial number change." The link to the rest of his brief comments are linked here.
For the second day in a row there was no sales report from the U.S. Mint.
There wasn't much activity in silver within the Comex-approved depositories on Wednesday. Nothing was reported received...and only 45,789 troy ounces were shipped out. The link to that activity is here.
It was pretty much the same story in gold on Wednesday as well...nothing was received...and a tiny 9,606 troy ounces were shipped off to parts unknown. The link to that 'action' is here.
Here's a chart that Casey Research's own Jeff Clark sent our way yesterday. It shows how fast the monetary base is expanding. It's at another new record...US$3.2 trillion...and on its way to the top of this chart in a real hurry.
* * *
selected news and views......
Italian showdown with Germany over euro looms closer
Italy’s simmering revolt against Germany, austerity and its own ultra-European elites is coming to a head again, in a reminder that the deep clash of interests between the euro’s north and south remains as bitter as ever.
Something snapped in the Italian psyche last week after the European Central Bank offered nothing to combat the credit crunch asphyxiating small business, and more broadly washed its hands of Euroland’s incipient deflation crisis and catastrophic wastage of its youth.
The next day ex-premier Silvio Berlusconi called for a showdown, or “Braccio di Ferro”, with northern powers before it loses it chemical, car and steel industries altogether.
Mr Berlusconi told Il Foglio that Italy’s government - which his Liberty Party keeps in office - is complicitly serving forces that are destroying Italy. It must instead confront the north, “and particularly Angela Merkel’s Germany”, with a stark choice: either they call a halt to fiscal and monetary contraction, and opt instead for full-blown reflation; or they must expect the victims to snatch back their own destinies.
This Ambrose Evans-Pritchard offering was posted on the telegraph.co.ukInternet site late on Wednesday afternoon BST...and it's definitely worth reading. I thank Roy Stephens for his first offering in today's column.
Three King World News Blogs
1. John Hathaway: "Gold to Shock the World With Rapid $1,000 Advance". 2. Keith Barron: "Coming Chaos, Phony Global Markets and the War on Gold". 3. Gerald Celente: "QE, Gold, Silver and the Coming Financial Collapse".
Kinross Gold Cancels Ecuador Project over Tax Impasse
Kinross Gold Corp. said on Monday it is halting development at its Fruta del Norte gold project in Ecuador after failing to reach an agreement with the government over a windfall tax on revenues.
Chief Executive Paul Rollinson said Ecuador had refused to budge on the 70-per-cent tax, and had indicated that it would not approve a sale or extend the company's license beyond an Aug. 1 deadline.
"It's been a tough negotiation," Mr. Rollinson told Reuters. "Sometimes the best deal is the one that you don't sign, and that seems to be the case here."
The move is a blow to Ecuador, where the government is drafting a new mining law meant to encourage investment. Ecuador does not have a significant mining sector, but it is largely unexplored and could have major deposits.
This story appeared in The Globe and Mail on Monday...and is another story I found embedded in a GATA release yesterday.
¤ THE WRAP
And even in the face of such overwhelming evidence, it's still hard for U.S. citizens to acknowledge that their government is just as corrupt as Mexico's...albeit slightly more sophisticated. - Simon Black
I wouldn't read a thing into yesterday's price action. We're still stuck in the sub-$1,400 holding pattern in gold...and the same thing applies in silver at the $22 price mark.
Is this the beginning of the 'summer doldrums'? I wouldn't bet the ranch on that based on the fragile state of the world's economic, financial and monetary situation as it exists at the moment. There are lots of balloons floating around out there in search of a pin...and only massive money printing by all countries, or currency blocks, is preventing a deflationary implosion.
It's my guess that whatever event it is that causes everything to melt down...or up...as the case may be, it will come out of nowhere...and things will never be the same again after it's all over.
So, we wait.
Yesterday in this space I was talking about how poorly the precious metals were performing in the face of a declining dollar index...down over 4 percent from about three weeks ago...and it totally skipped my mind to mention what Ted Butler had to say about the U.S dollar index in his Wednesday missive. I will make amends now...
"The recent price action in the US Dollar Index (traded on ICE) caught my interest and I just happened to look at the COT report, not something I usually do. The degree of concentration on the short side (presumably mostly held by those same big banks that the CFTC was being too tough on) was shocking to me – 88% net short by four traders. I’m not suggesting trading currencies in any way, shape, or form...and there may be a simple explanation for such an extreme degree of concentration. If you know of such an explanation, drop me a line. An explanation other than the big banks rigging price levels, of course." - Silver analyst Ted Butler...12 May 2013
Today, at 3:30 p.m. EDT, the latest Commitment of Traders Report will be posted on the CFTC's website. It's the data surrounding the engineered price decline that accompanied the release of the jobs report a week ago today, that will be of most interest in that report...as that was the only day during the reporting period that there was any really significant price action.
It was deathly quiet in Far East trading on their Friday...as all four metals did precisely nothing from a price point of view...and that situation has extended into the first hour of the London session as well. Volumes are very light...less that half of what they were at this time of day on Thursday. The dollar index is up 11 basis points.
And as I hit the 'send' button on today's column at 5:10 a.m. EDT, both silver and gold are down a hair from yesterday's close in New York. Volumes have picked up a bit, but still fall into the 'light' category...and the dollar index is still up 11 basis points.
How events unfold in New York when Comex trading begins, is anyone's guess.
Enjoy your weekend...or what's left of it if you live west of the International Date Line...and I'll see you here tomorrow.
http://harveyorgan.blogspot.com/2013/06/gld-loses-another-632-tonnes-of.html
Thursday, June 13, 2013
GLD loses another 6.32 tonnes of physical gold from London/Comex gold declines again/JPMorgan's inventory gold remains constant/Last minute rally on the Dow due to no imminent taper/
Good evening Ladies and Gentlemen:
Gold closed down by $14.20 to $1377.60 (comex closing time). Silver fell by 21 cents to $21.58 (comex closing time)
In the access market at 5:00 pm, gold and silver finished trading at the following prices :
gold: 1385.90.
silver: $21.87
At the Comex, the open interest in silver rose by 1248 contracts to 148,423 contracts with silver's rise in price yesterday by 15 cents. The silver OI is still holding firm at these highly elevated levels. The bankers will desperately try and remove some of these stubborn longs before the big July delivery month rolls around.
The open interest on the entire gold comex contracts rose by 1180 contracts to 375,024 which is still extremely low. There is no question that all of the weak speculators in gold have now departed. The number of ounces which is standing for gold in this June delivery month is 931,100 or 28.96 tonnes.The number of silver ounces standing in this non active month of June rose by 120,000 oz to 715,000 oz.
Tonight, the Comex registered or dealer inventory of gold rises slightly to 1.450 million oz or 45.10 tonnes. This is getting dangerously low. The total of all gold at the comex fell again and now it is well below the 8 million oz mark at 7.697 million oz or 239.4 tonnes of gold.
JPMorgan's customer inventory shows no change and rests tonight at its nadir of 136,380.611 oz or 4.24 tonnes. Its dealer inventory remains at 413,526.284 oz but it still must settle upon contracts issued in the June delivery month which far exceeds its inventory.
The GLD reported that we lost a massive 6.32 tonnes of gold in inventory. The SLV inventory of silver also remained firm with no losses or gains in inventory.
In physical stories we have reports from John Hathaway and Adam Taggart as well as a discussion with GoldMoney.com and John Embry.
On the paper side of things, as you will see below, Japan had an awful time last night with the Nikkei losing over 800 points. We have two very important commentaries on the subject of Japan tonight:
the first from Bill Holter titled :" Not to Worry"
and the second by Wolf Richter: " Bank of Japan Machinations Crash into Reality".
You do not want to miss these two very important commentaries.
We also have two important papers written by Ambrose Evans Pritchard on the class between Italy and Germany on austerity and Jill Treanor, of the UK Guardian on the burgeoning bond bubble.
We will go over these and many other stories but first.....................
Let us now head over to the comex and assess trading over there today.
Here are the details:
The total gold comex open interest rose by 1180 contracts from 373,844 back up to 375,024 with gold falling by $15.00 yesterday. The front active month of June saw it's OI fall by 32 contracts from 1472 down to 1440. We had 18 deliveries served upon our longs yesterday. We thus lost 14 contracts or 1400 oz that will not stand this month. The next delivery month is the non active July contract and here the OI rose by 135 contracts up to 676. The next active delivery month for gold is August and here the OI rose by 869 contracts from 213,528 up to 214,397. The estimated volume today was poor at 121,726 contracts. The confirmed volume yesterday was also poor at 121,574. It seems that the many now realize that the Comex is a crooked game so investors are seeking other means to acquire gold.
The total silver Comex OI rose as silver increased in price by 15 cents yesterday. It's OI rose by a considerable 1248 contracts to 148,423. The longs in silver remain resolute, willing to take on the criminal bankers. The front non active June silver contract month shows a loss in OI of 33 contracts resting tonight at 53. We had 55 notices filed yesterday so in essence we gained 22 contracts or an additional 110,000 silver ounces will stand for metal on the June contract month. The next big delivery month is July and here the OI fell by 1975 contracts down to 62,032. We are exactly two weeks away from first day notice (June 28.2013) and judging from the OI we may see some fireworks in silver. The estimated volume today was very high, coming in at 55,292 contracts. The confirmed volume yesterday was extremely good at 49,007. I guess the bankers will try and throw everything possible at the silver longs including the kitchen sink, the bathtub and you name it in an attempt to dislodge the longs from their positions.
We again had 0 customer deposits today
total customer deposit: nil oz
It is very strange that in a big delivery month, we are witnessing no gold enter the dealer or even the customer.
Today, we had one big customer withdrawal:
i) Out of HSBC, 9027.628 oz was withdrawn.
zero ounces were withdrawn from JPMorgan today.
On Tuesday we reported to you that JPMorgan withdrew a huge amount of gold from its customer account:
Out of JPMorgan: 217,844.96 oz.
If you will recall, we needed to see 100,000 oz of gold removed from JPMorgan's customer account. (1000 contracts served upon our longs in mid May).
Last Tuesday, we had 15,416.93 oz removed from the JPM's customer account. No doubt that this gold was part of the 1000 contracts issued by JPMorgan customer account and thus we calculated that as of last night 28,389.579 oz was settled upon, leaving 71,611.00 oz still left to arrive in the settling process.
In summary on the customer side of things for JPMorgan:
Last Wednesday we had 333 notices served upon and all were issued by JPMorgan's customer side.
Thursday morning we received notice that we had 826 notices served upon of which 725 contracts were issued by JPMorgan's customer account and 10 notices from their house or dealer account.
Friday morning, 318 notices were filed and of that total 317 notices were issued by JPMorgan and all of these were on their client or customer account.
7874 contracts x 100 oz per contract or 787,400 oz served upon + 1437 contracts or 143,700 oz (left to be served upon) = 931,100 oz or 28.96 tonnes of gold.
We lost 14 contracts or 1400 oz of gold which will not stand for the June contract month.
We now have the official USA production of gold last year and it registered 230 tonnes. Thus approximately 19.16 tonnes of gold is produced by all mines in the USA per month. Thus the amount standing for gold this month represents 151.15% of that total production.
Ladies and Gentlemen: we have a two-fold problem:
i) the total dealer inventory of gold is at a very dangerously low level of only 45.1 tonnes and none of the 9.5 tonnes delivery notices from May and the 29 tonnes from June have been removed from inventory as of yet.
ii) a) JPMorgan's customer inventory remains at an extremely low 136,380 oz.
If you are a customer of JPMorgan and have your gold in its vault, I think it is best to remove it before we have another fiasco like MFGlobal.
ii b) JPMorgan's dealer account rests tonight at 413,000 oz. However all of this gold has been spoken for plus an additional 81,000 oz
Jan 13/2013:
Jan 12/ 2013:
Not to worry...
Gold closed down by $14.20 to $1377.60 (comex closing time). Silver fell by 21 cents to $21.58 (comex closing time)
In the access market at 5:00 pm, gold and silver finished trading at the following prices :
gold: 1385.90.
silver: $21.87
At the Comex, the open interest in silver rose by 1248 contracts to 148,423 contracts with silver's rise in price yesterday by 15 cents. The silver OI is still holding firm at these highly elevated levels. The bankers will desperately try and remove some of these stubborn longs before the big July delivery month rolls around.
The open interest on the entire gold comex contracts rose by 1180 contracts to 375,024 which is still extremely low. There is no question that all of the weak speculators in gold have now departed. The number of ounces which is standing for gold in this June delivery month is 931,100 or 28.96 tonnes.The number of silver ounces standing in this non active month of June rose by 120,000 oz to 715,000 oz.
Tonight, the Comex registered or dealer inventory of gold rises slightly to 1.450 million oz or 45.10 tonnes. This is getting dangerously low. The total of all gold at the comex fell again and now it is well below the 8 million oz mark at 7.697 million oz or 239.4 tonnes of gold.
JPMorgan's customer inventory shows no change and rests tonight at its nadir of 136,380.611 oz or 4.24 tonnes. Its dealer inventory remains at 413,526.284 oz but it still must settle upon contracts issued in the June delivery month which far exceeds its inventory.
The GLD reported that we lost a massive 6.32 tonnes of gold in inventory. The SLV inventory of silver also remained firm with no losses or gains in inventory.
In physical stories we have reports from John Hathaway and Adam Taggart as well as a discussion with GoldMoney.com and John Embry.
On the paper side of things, as you will see below, Japan had an awful time last night with the Nikkei losing over 800 points. We have two very important commentaries on the subject of Japan tonight:
the first from Bill Holter titled :" Not to Worry"
and the second by Wolf Richter: " Bank of Japan Machinations Crash into Reality".
You do not want to miss these two very important commentaries.
We also have two important papers written by Ambrose Evans Pritchard on the class between Italy and Germany on austerity and Jill Treanor, of the UK Guardian on the burgeoning bond bubble.
We will go over these and many other stories but first.....................
Here are the details:
The total gold comex open interest rose by 1180 contracts from 373,844 back up to 375,024 with gold falling by $15.00 yesterday. The front active month of June saw it's OI fall by 32 contracts from 1472 down to 1440. We had 18 deliveries served upon our longs yesterday. We thus lost 14 contracts or 1400 oz that will not stand this month. The next delivery month is the non active July contract and here the OI rose by 135 contracts up to 676. The next active delivery month for gold is August and here the OI rose by 869 contracts from 213,528 up to 214,397. The estimated volume today was poor at 121,726 contracts. The confirmed volume yesterday was also poor at 121,574. It seems that the many now realize that the Comex is a crooked game so investors are seeking other means to acquire gold.
The total silver Comex OI rose as silver increased in price by 15 cents yesterday. It's OI rose by a considerable 1248 contracts to 148,423. The longs in silver remain resolute, willing to take on the criminal bankers. The front non active June silver contract month shows a loss in OI of 33 contracts resting tonight at 53. We had 55 notices filed yesterday so in essence we gained 22 contracts or an additional 110,000 silver ounces will stand for metal on the June contract month. The next big delivery month is July and here the OI fell by 1975 contracts down to 62,032. We are exactly two weeks away from first day notice (June 28.2013) and judging from the OI we may see some fireworks in silver. The estimated volume today was very high, coming in at 55,292 contracts. The confirmed volume yesterday was extremely good at 49,007. I guess the bankers will try and throw everything possible at the silver longs including the kitchen sink, the bathtub and you name it in an attempt to dislodge the longs from their positions.
Comex gold/May contract month:
June 13/2013
the June contract month:
the June contract month:
Ounces
| |
Withdrawals from Dealers Inventory in oz
|
578.70 oz (Manfra)
|
Withdrawals from Customer Inventory in oz
|
9,027.628 (HSBC)
|
Deposits to the Dealer Inventory in oz
|
nil
|
Deposits to the Customer Inventory, in oz
| nil oz |
No of oz served (contracts) today
|
3 (300 oz)
|
No of oz to be served (notices)
|
1437 (143,700 oz
|
Total monthly oz gold served (contracts) so far this month
|
7874 (787,400 oz)
|
Total accumulative withdrawal of gold from the Dealers inventory this month
|
78,856.579oz
|
Total accumulative withdrawal of gold from the Customer inventory this month
| 258,950.53 oz |
We again had tiny activity at the gold vaults
The dealer again had 0 deposits but did have 1 dealer withdrawal.
i) Out of Manfra: 578.70 oz was withdrawn
i) Out of Manfra: 578.70 oz was withdrawn
We again had 0 customer deposits today
total customer deposit: nil oz
It is very strange that in a big delivery month, we are witnessing no gold enter the dealer or even the customer.
Today, we had one big customer withdrawal:
i) Out of HSBC, 9027.628 oz was withdrawn.
zero ounces were withdrawn from JPMorgan today.
On Tuesday we reported to you that JPMorgan withdrew a huge amount of gold from its customer account:
Out of JPMorgan: 217,844.96 oz.
If you will recall, we needed to see 100,000 oz of gold removed from JPMorgan's customer account. (1000 contracts served upon our longs in mid May).
Last Tuesday, we had 15,416.93 oz removed from the JPM's customer account. No doubt that this gold was part of the 1000 contracts issued by JPMorgan customer account and thus we calculated that as of last night 28,389.579 oz was settled upon, leaving 71,611.00 oz still left to arrive in the settling process.
In summary on the customer side of things for JPMorgan:
Last Wednesday we had 333 notices served upon and all were issued by JPMorgan's customer side.
Thursday morning we received notice that we had 826 notices served upon of which 725 contracts were issued by JPMorgan's customer account and 10 notices from their house or dealer account.
Friday morning, 318 notices were filed and of that total 317 notices were issued by JPMorgan and all of these were on their client or customer account.
Monday, 132 notices were filed (all from JPMorgan) of which 131 notices were issued from JPMorgan's customer account and one notice from the dealer side.
Tuesday, of the 195 notices issued for this day, 136 notices were issued from JPMorgan and all of these came from its customer account.
Yesterday, the CME reported that 18 customer notices were filed for delivery and all were issued from JPMorgan's customer side.
Yesterday, the CME reported that 18 customer notices were filed for delivery and all were issued from JPMorgan's customer side.
Today, the CME reported that we had 3 notices filed but JPMorgan issued zero from the customer accounts and zero from their house account.
If we add the 71,611.00 oz that was owed last week, together with the following notices converted into oz: (we do not include the 136 + 18 + 0 notices as these will be settled later in the week or next week), we have the following in oz settled:
i) 333 notices equals 33300 oz
ii) 725 notices equals 72500 oz
iii 317 notices equals 31700 oz
plus the above 71,611.00 oz
we have 209,111 oz of gold to be settled upon. On Tuesday we had 217,844.96 oz withdrawn from JPMorgan's customer account, no doubt satisfied these claims and were settled upon.
We still have 154 notices or 15,400 oz that need to be withdrawn from JPMorgan's customer account.
Today we had two adjustments.
i) out of Brinks: we have 95.42 oz was adjusted out of the customer and back into the dealer at HSBC.
ii) Out of HSBC we had 9,778.599 oz was adjusted out of the customer and back into the dealer account at HSBC
Thus tonight we have the following closing inventory figures for JPMorgan:
i) dealer account: 413,526.284 oz
ii) customer account drops to 136,380.611 oz. (or only 4.2 tonnes of gold)
Now for JPMorgan's dealer side and what the inventory should be:
Last Tuesday night we reported that 4935 contracts have been issued by JPMorgan's house account since first day notice and not yet subtracted out of inventory
You will also recall a week ago on Saturday and again last Monday night, I reported that JPMorgan had 470,322.102 oz in it's dealer account. From that day until now, 58,795.82 oz was either withdrawn or adjusted out, leaving the dealer side at 413,526.284 oz where it sits tonight.
On the dealer side Thursday we had 10 notices issued on JPMorgan's dealer account.
On Friday: zero
If we add the 71,611.00 oz that was owed last week, together with the following notices converted into oz: (we do not include the 136 + 18 + 0 notices as these will be settled later in the week or next week), we have the following in oz settled:
i) 333 notices equals 33300 oz
ii) 725 notices equals 72500 oz
iii 317 notices equals 31700 oz
plus the above 71,611.00 oz
we have 209,111 oz of gold to be settled upon. On Tuesday we had 217,844.96 oz withdrawn from JPMorgan's customer account, no doubt satisfied these claims and were settled upon.
We still have 154 notices or 15,400 oz that need to be withdrawn from JPMorgan's customer account.
Today we had two adjustments.
i) out of Brinks: we have 95.42 oz was adjusted out of the customer and back into the dealer at HSBC.
ii) Out of HSBC we had 9,778.599 oz was adjusted out of the customer and back into the dealer account at HSBC
Thus tonight we have the following closing inventory figures for JPMorgan:
i) dealer account: 413,526.284 oz
ii) customer account drops to 136,380.611 oz. (or only 4.2 tonnes of gold)
Now for JPMorgan's dealer side and what the inventory should be:
Last Tuesday night we reported that 4935 contracts have been issued by JPMorgan's house account since first day notice and not yet subtracted out of inventory
You will also recall a week ago on Saturday and again last Monday night, I reported that JPMorgan had 470,322.102 oz in it's dealer account. From that day until now, 58,795.82 oz was either withdrawn or adjusted out, leaving the dealer side at 413,526.284 oz where it sits tonight.
On the dealer side Thursday we had 10 notices issued on JPMorgan's dealer account.
On Friday: zero
On Monday: 1
On Tuesday: 0
On Wednesday : 0
On Wednesday : 0
Today: 0
Thus, 4946 contracts have been issued so far for 494,600 oz and these
ounces have yet to settle from JPMorgan's dealer side.
JPMorgan's dealer vault registers tonight 413,526.284 oz
somehow we have a huge negative balance as i) the gold has not left JPMorgan's dealer account and has yet to settle
and
ii) it is now deficient by 81,074 oz (413,526 inventory - 494,600 oz issued = 81,074 oz)
In other words, the entire 413,526 must be first transferred out of Morgan's dealer category ( in the same format as in the customer category) leaving it with zero, plus the 81,074 of additional gold
JPMorgan has not had any deposits in gold in quite some time. Zero ounces has entered on the dealer side from the beginning of 2013.
How will JPMorgan satisfy this shortfall??
With Tuesday's huge withdrawal from the JPMorgan customer account, JPMorgan does not have enough gold in its vaults to satisfy claims upon it. And we still have over 143,700 oz left to be settled upon. JPMorgan generally handles 80% of all issuance.
Thus, 4946 contracts have been issued so far for 494,600 oz and these
ounces have yet to settle from JPMorgan's dealer side.
JPMorgan's dealer vault registers tonight 413,526.284 oz
somehow we have a huge negative balance as i) the gold has not left JPMorgan's dealer account and has yet to settle
and
ii) it is now deficient by 81,074 oz (413,526 inventory - 494,600 oz issued = 81,074 oz)
In other words, the entire 413,526 must be first transferred out of Morgan's dealer category ( in the same format as in the customer category) leaving it with zero, plus the 81,074 of additional gold
JPMorgan has not had any deposits in gold in quite some time. Zero ounces has entered on the dealer side from the beginning of 2013.
How will JPMorgan satisfy this shortfall??
With Tuesday's huge withdrawal from the JPMorgan customer account, JPMorgan does not have enough gold in its vaults to satisfy claims upon it. And we still have over 143,700 oz left to be settled upon. JPMorgan generally handles 80% of all issuance.
Tonight the total dealer inventory rise slightly (due to adjustments) to 1.450 million oz (45.10) tonnes of gold. The total of all comex gold falls again , resting tonight at 7.6970 million oz or 239.40 tonnes.
Today we had 3 notices served upon our longs for 300 oz of gold. In order to calculate what I believe will stand for delivery in June, I take the OI standing for June (1440) and subtract out today's notices (3) which leaves us with 1437 contracts or 143,700 oz left to be served upon our longs.
Today we had 3 notices served upon our longs for 300 oz of gold. In order to calculate what I believe will stand for delivery in June, I take the OI standing for June (1440) and subtract out today's notices (3) which leaves us with 1437 contracts or 143,700 oz left to be served upon our longs.
Thus we have the following gold ounces standing for metal in June:
7874 contracts x 100 oz per contract or 787,400 oz served upon + 1437 contracts or 143,700 oz (left to be served upon) = 931,100 oz or 28.96 tonnes of gold.
We lost 14 contracts or 1400 oz of gold which will not stand for the June contract month.
We now have the official USA production of gold last year and it registered 230 tonnes. Thus approximately 19.16 tonnes of gold is produced by all mines in the USA per month. Thus the amount standing for gold this month represents 151.15% of that total production.
Ladies and Gentlemen: we have a two-fold problem:
i) the total dealer inventory of gold is at a very dangerously low level of only 45.1 tonnes and none of the 9.5 tonnes delivery notices from May and the 29 tonnes from June have been removed from inventory as of yet.
ii) a) JPMorgan's customer inventory remains at an extremely low 136,380 oz.
If you are a customer of JPMorgan and have your gold in its vault, I think it is best to remove it before we have another fiasco like MFGlobal.
ii b) JPMorgan's dealer account rests tonight at 413,000 oz. However all of this gold has been spoken for plus an additional 81,000 oz
end
now let us head over and see what is new with silver:
now let us head over and see what is new with silver:
Silver:
June 13.2013: June silver contract month:
| Silver |
Ounces
|
| Withdrawals from Dealers Inventory | nil |
| Withdrawals from Customer Inventory | 45,789.529 oz (Brinks,Delaware) |
| Deposits to the Dealer Inventory | nil |
| Deposits to the Customer Inventory | nil |
| No of oz served (contracts) | 17 (85,000 oz) |
| No of oz to be served (notices) | 36 (180,000 oz) |
| Total monthly oz silver served (contracts) | 107 (535,000 oz) |
| Total accumulative withdrawal of silver from the Dealers inventory this month | 982,955.47 oz |
| Total accumulative withdrawal of silver from the Customer inventory this month | 2,951,374.2 oz |
Today, we had tiny activity inside the silver vaults.
we had 0 dealer deposits and 0 dealer withdrawals.
We had 0 customer deposit:
total customer deposit; nil oz
We had 2 customer withdrawals:
We had 0 customer deposit:
total customer deposit; nil oz
We had 2 customer withdrawals:
i) Out of Brinks: 25,618.66 oz
ii) Out of Delaware: 20,170.869 oz
total customer withdrawal : 45,789.529 oz
ii) Out of Delaware: 20,170.869 oz
total customer withdrawal : 45,789.529 oz
we had 0 adjustments today
Registered silver at : 41.758 million oz
total of all silver: 164.438 million oz.
The CME reported that we had 17 notices filed for 85,000 oz today. In order to calculate what we believe will stand in the month of June, I take the Oi standing for June (53) and subtract out today's notices (17) which leaves us with 36 notices or 180,000 oz.
Thus the total number of silver ounces standing in this non active delivery month of June is as follows:
107 contracts x 5000 oz per contract (served) = 535,000 oz + 36 contracts x 5000 oz or 180,000 oz left to be served upon = 715,000 oz
we gained back 110,000 oz of silver today at the Comex silver.
Thus the total number of silver ounces standing in this non active delivery month of June is as follows:
107 contracts x 5000 oz per contract (served) = 535,000 oz + 36 contracts x 5000 oz or 180,000 oz left to be served upon = 715,000 oz
we gained back 110,000 oz of silver today at the Comex silver.
Now let us check on gold inventories at the GLD first: 6.32 tons of physical leave the GLD ETF today !
Tonnes1,003.53
Ounces32,264,597.16
Value US$44.659 billion
Jan 12/ 2013:
Tonnes1,009.85
Ounces32,467,579.48
Value US$44.8682 billion
* * *
selected news and views.......
Bill Holter describes in great detail why we should be worried that the Nikkei markets are tanking.
(courtesy Bill Holter)
Bill Holter describes in great detail why we should be worried that the Nikkei markets are tanking.
(courtesy Bill Holter)
(courtesy Bill Holter)
Not to worry...
Japan's stock market got crushed over 6% last night and I expected to see some further weakness in our stock market this morning. As I left this morning to go riding the futures were down but not by much...when I got back after the open the Dow was UP!?! Japan is the world's 2nd or 3rd largest economy and the 2nd largest equity market by market capitalization. I mention this because "they matter". They "matter" to everything all over the world. I would also like to mention that Japan is more interconnected and "Ponzied" than any other system in the world. Their banks and insurance companies have "cross ownership" of each other and there are "pools" very similar to those back in the 1920's in the U.S. ...and we all know how that worked out.
Another minor detail about Japan is that their banks/banking system is THE largest in the world. They dominate spots in the "top 20" banks by size globally. They DO matter and no large bank in Japan can go down without taking others with it and ...thus the rest of the world. Deny or pooh pooh this statement all you'd like (just like our market is doing today), when all is said and done, Japan's interconnected financial Ponzi scheme will come down like all others before it and very possibly could be the spark for the entire financial system coming down.
Will they be the spark that takes it all down? Who knows but they do have the capacity to do it. Will they fall because of a forest fire somewhere else? Again, who knows...what I do know is that they have gone "all in" to prevent this from happening yet it's not working. Their market is now down well over 20% in roughly 3 weeks, were they a good "value" 3 weeks ago? Are they a good "value" now? And what of all the interconnected derivatives in Japan? If you bet on "black" and "red" (pun intended) comes up, what then? What if you bet on "red" but the institution on the other side of the trade goes belly up? What if your "win" that doesn't get paid out was a hedge against a position that lost? Looking at their bond market, 10 yr. yields pushed .9% last night which is more than a triple off of the lows.
To break this whole thing down in a nutshell, the world is overleveraged and needs to "de" leverage. But guess what? Since the '08-'09 disaster we have done the opposite. Japan's plans to "print" $2 trillion over 2 years fly's in the face of what is needed. In fact, if you go back a week or two, Europe and the IMF threw the towel in and said that "austerity" must be postponed. And why is this? Why postpone something that everyone including Mother Nature had agreed was necessary? Because they can't do it that's why !
"They can't do it" ...also pertains to stopping or even slowing QE here in the U.S.. They can't do it because what is happening in Japan right now will arrive here. Actually no matter what they do, Japan's current action will arrive here. Sooner, later, with more QE or with less, Japan has no options available nor does the U.S. or Europe. But for now at least...not to worry. It's all under control and our stock market is up, the banks are open and all is well...until it isn't.
Regards, Bill H.
And one the same theme as above
(courtesy Wolf Richter/www.testosteronepit.com)
Bank Of Japan Machinations Crash Into Reality
Submitted by testosteronepit on 06/13/2013 14:01 -0400
- Bank of Japan
- Bear Market
- Bond
- Central Banks
- Deficit Spending
- Gross Domestic Product
- Japan
- Nikkei
- Nuclear Power
- Reality
- Technical Indicators
The Japanese stock market has become a case study of central-bank manipulations, and of what happens eventually as reality cannot be eliminated forever.
On Thursday, the Nikkei, after a horrific 800-point or 6% dive on a staircase to hell, or to 12,416, whichever came first, recovered a few hundred points, then climbed back down that staircase and ended the day at 12,445, the lowest close since April 3, down 844 points for the day, the second largest swoon so far in 2013.
The largest swoon this year? May 23, a 1,460-point crash, or 9.2%, from its intraday peak (after a 300-point jump that morning) of 15,943 – the highest most euphoric point since December 2008. Now the Nikkei is down 21.9% from that peak, and in bear market territory. Both the Nikkei and the Topix dropped below the 100-day moving average during the day, which in itself triggered more selling, as these technical indicators, and the buy-sell behavior they engender, become self-fulfilling prophecies (for a while), not only on the way up, but also on the way down – their raison d’être; otherwise they’d be utterly useless.
It took the Nikkei 50 days – from April 3 to May 23 – to make it up that far, and just 20 days to come back down. Up by escalator, down by elevator (with ear-popping speed).
This is what happens when a stock market gets inflated by a central bank: promises of boundless money-printing attract the hot money that causes values to balloon to ridiculous highs in the shortest time. Then something happens, some silly event, the recognition that enough money has been made, a rumor that some big hedge fund is bailing out, a disappointing statement by the Bank of Japan, something... and some of the hot money suddenly has had enough, tries to take profits, tries to bail out, just when there are not many euphoric buyers left, and what you hear is a giant hissing sound. And what you get is capital destruction and wealth transfer.
Thank goodness, for the Bank of Japan, there is nothing like a good stock-market crash to prop up the otherwise wilting market for Japanese Government bonds. They’ve been an awful investment recently: the 10-year JGB has been yielding below 1% even though the BOJ promised to create 2% inflation. Theofficial plan is to hand JGB buyers a loss on an inflation-adjusted basis. So investors have been bailing out of JGBs while the BOJ has been gobbling them up through its massive bond-buying program. Yields have been jumping up and down in the most tumultuous manner, rising for the 10-year JGB from the freaky 0.315% low of April 5 to briefly kissing 1% on May 2, and panicky bondholders have been pulling out their hair along the way.
Since then, JGBs have “stabilized” somewhat, with yields retreating below 0.9%. But during yesterday’s stock market massacre, these despicable JGBs suddenly seemed like a pretty good deal again, given the choice between losing money fast in stocks and losing money more slowly in JGBs. In response, yields on the 10-year JGB briefly plunged from 0.88% to 0.80%, only to rise back to 0.86%.
In support of its machinations, the BOJ has stated repeatedly and explicitly that it is trying to inflate the stock market to create the "wealth effect" – that ephemeral and treacherous impetus for people to spend money they see on a computer screen but haven’t realized yet and haven’t paid their taxes on yet. But on average, they actually can’t spend the money they see on that screen because they’d have to sell to do so, and pull their money out of the market. It would cause a crash. And annihilate that beautiful wealth effect.
Instead, central banks use the wealth effect to lure consumers with a vision of wealth so that they’d spend their savings, or spend with their credit cards. And then, when the market does crash, consumers are left holding the bag: the vision of wealth has dematerialized, their savings have been decimated, and credit card bills have piled up. An insidious central-bank strategy.
But that’s secondary for the BOJ. Its primary concern is the enormous government bond market – and the banks, retirement funds, and other institutions that own a big portion of these crappy bonds. They're the lifeblood of the Japanese economy. And when push comes to shove, the BOJ lets stocks plunge in order to support bonds – as it has done on numerous occasions.
It’s hard to blame the BOJ. There are no more good options available for Japan. The economy has become physically dependent on out-of-control government deficit spending – with half of the spending being borrowed money! The debt, now over 200% of GDP, is so huge and growing so rapidly that reasonable solutions no longer apply. But reality cannot be pushed out forever. Someone eventually MUST pay for it all: the bondholders, the taxpayers, or all Japanese (via run-away inflation).
The one thing we know from Abenomics, and from the policies of all prior governments: they’ll try to push the day of reckoning out as far as possible, hopefully beyond their time in politics, and hopefully with enough warning to allow the elite to protect itself from the fallout. The BOJ’s job is to make that possible.
Abenomics has its detractors – even in unexpected places – and Prime Minister Shinzo Abe must be experiencing some interesting pillow talk. His wife has attacked one of the major components of his economic policies, the formerly omnipotent nuclear power industry that he is trying to restore to its former glory. Read....Akie Abe, His “Anti-Nuclear” Wife
Japan's stock market got crushed over 6% last night and I expected to see some further weakness in our stock market this morning. As I left this morning to go riding the futures were down but not by much...when I got back after the open the Dow was UP!?! Japan is the world's 2nd or 3rd largest economy and the 2nd largest equity market by market capitalization. I mention this because "they matter". They "matter" to everything all over the world. I would also like to mention that Japan is more interconnected and "Ponzied" than any other system in the world. Their banks and insurance companies have "cross ownership" of each other and there are "pools" very similar to those back in the 1920's in the U.S. ...and we all know how that worked out.
Another minor detail about Japan is that their banks/banking system is THE largest in the world. They dominate spots in the "top 20" banks by size globally. They DO matter and no large bank in Japan can go down without taking others with it and ...thus the rest of the world. Deny or pooh pooh this statement all you'd like (just like our market is doing today), when all is said and done, Japan's interconnected financial Ponzi scheme will come down like all others before it and very possibly could be the spark for the entire financial system coming down.
Will they be the spark that takes it all down? Who knows but they do have the capacity to do it. Will they fall because of a forest fire somewhere else? Again, who knows...what I do know is that they have gone "all in" to prevent this from happening yet it's not working. Their market is now down well over 20% in roughly 3 weeks, were they a good "value" 3 weeks ago? Are they a good "value" now? And what of all the interconnected derivatives in Japan? If you bet on "black" and "red" (pun intended) comes up, what then? What if you bet on "red" but the institution on the other side of the trade goes belly up? What if your "win" that doesn't get paid out was a hedge against a position that lost? Looking at their bond market, 10 yr. yields pushed .9% last night which is more than a triple off of the lows.
To break this whole thing down in a nutshell, the world is overleveraged and needs to "de" leverage. But guess what? Since the '08-'09 disaster we have done the opposite. Japan's plans to "print" $2 trillion over 2 years fly's in the face of what is needed. In fact, if you go back a week or two, Europe and the IMF threw the towel in and said that "austerity" must be postponed. And why is this? Why postpone something that everyone including Mother Nature had agreed was necessary? Because they can't do it that's why !
"They can't do it" ...also pertains to stopping or even slowing QE here in the U.S.. They can't do it because what is happening in Japan right now will arrive here. Actually no matter what they do, Japan's current action will arrive here. Sooner, later, with more QE or with less, Japan has no options available nor does the U.S. or Europe. But for now at least...not to worry. It's all under control and our stock market is up, the banks are open and all is well...until it isn't.
Regards, Bill H.
And one the same theme as above
(courtesy Wolf Richter/www.testosteronepit.com)
And one the same theme as above
(courtesy Wolf Richter/www.testosteronepit.com)
(courtesy Wolf Richter/www.testosteronepit.com)
Bank Of Japan Machinations Crash Into Reality
Submitted by testosteronepit on 06/13/2013 14:01 -0400
- Bank of Japan
- Bear Market
- Bond
- Central Banks
- Deficit Spending
- Gross Domestic Product
- Japan
- Nikkei
- Nuclear Power
- Reality
- Technical Indicators
The Japanese stock market has become a case study of central-bank manipulations, and of what happens eventually as reality cannot be eliminated forever.
On Thursday, the Nikkei, after a horrific 800-point or 6% dive on a staircase to hell, or to 12,416, whichever came first, recovered a few hundred points, then climbed back down that staircase and ended the day at 12,445, the lowest close since April 3, down 844 points for the day, the second largest swoon so far in 2013.
The largest swoon this year? May 23, a 1,460-point crash, or 9.2%, from its intraday peak (after a 300-point jump that morning) of 15,943 – the highest most euphoric point since December 2008. Now the Nikkei is down 21.9% from that peak, and in bear market territory. Both the Nikkei and the Topix dropped below the 100-day moving average during the day, which in itself triggered more selling, as these technical indicators, and the buy-sell behavior they engender, become self-fulfilling prophecies (for a while), not only on the way up, but also on the way down – their raison d’être; otherwise they’d be utterly useless.
It took the Nikkei 50 days – from April 3 to May 23 – to make it up that far, and just 20 days to come back down. Up by escalator, down by elevator (with ear-popping speed).
This is what happens when a stock market gets inflated by a central bank: promises of boundless money-printing attract the hot money that causes values to balloon to ridiculous highs in the shortest time. Then something happens, some silly event, the recognition that enough money has been made, a rumor that some big hedge fund is bailing out, a disappointing statement by the Bank of Japan, something... and some of the hot money suddenly has had enough, tries to take profits, tries to bail out, just when there are not many euphoric buyers left, and what you hear is a giant hissing sound. And what you get is capital destruction and wealth transfer.
Thank goodness, for the Bank of Japan, there is nothing like a good stock-market crash to prop up the otherwise wilting market for Japanese Government bonds. They’ve been an awful investment recently: the 10-year JGB has been yielding below 1% even though the BOJ promised to create 2% inflation. Theofficial plan is to hand JGB buyers a loss on an inflation-adjusted basis. So investors have been bailing out of JGBs while the BOJ has been gobbling them up through its massive bond-buying program. Yields have been jumping up and down in the most tumultuous manner, rising for the 10-year JGB from the freaky 0.315% low of April 5 to briefly kissing 1% on May 2, and panicky bondholders have been pulling out their hair along the way.
Since then, JGBs have “stabilized” somewhat, with yields retreating below 0.9%. But during yesterday’s stock market massacre, these despicable JGBs suddenly seemed like a pretty good deal again, given the choice between losing money fast in stocks and losing money more slowly in JGBs. In response, yields on the 10-year JGB briefly plunged from 0.88% to 0.80%, only to rise back to 0.86%.
In support of its machinations, the BOJ has stated repeatedly and explicitly that it is trying to inflate the stock market to create the "wealth effect" – that ephemeral and treacherous impetus for people to spend money they see on a computer screen but haven’t realized yet and haven’t paid their taxes on yet. But on average, they actually can’t spend the money they see on that screen because they’d have to sell to do so, and pull their money out of the market. It would cause a crash. And annihilate that beautiful wealth effect.
Instead, central banks use the wealth effect to lure consumers with a vision of wealth so that they’d spend their savings, or spend with their credit cards. And then, when the market does crash, consumers are left holding the bag: the vision of wealth has dematerialized, their savings have been decimated, and credit card bills have piled up. An insidious central-bank strategy.
But that’s secondary for the BOJ. Its primary concern is the enormous government bond market – and the banks, retirement funds, and other institutions that own a big portion of these crappy bonds. They're the lifeblood of the Japanese economy. And when push comes to shove, the BOJ lets stocks plunge in order to support bonds – as it has done on numerous occasions.
It’s hard to blame the BOJ. There are no more good options available for Japan. The economy has become physically dependent on out-of-control government deficit spending – with half of the spending being borrowed money! The debt, now over 200% of GDP, is so huge and growing so rapidly that reasonable solutions no longer apply. But reality cannot be pushed out forever. Someone eventually MUST pay for it all: the bondholders, the taxpayers, or all Japanese (via run-away inflation).
The one thing we know from Abenomics, and from the policies of all prior governments: they’ll try to push the day of reckoning out as far as possible, hopefully beyond their time in politics, and hopefully with enough warning to allow the elite to protect itself from the fallout. The BOJ’s job is to make that possible.
Abenomics has its detractors – even in unexpected places – and Prime Minister Shinzo Abe must be experiencing some interesting pillow talk. His wife has attacked one of the major components of his economic policies, the formerly omnipotent nuclear power industry that he is trying to restore to its former glory. Read....Akie Abe, His “Anti-Nuclear” Wife
- Bank of Japan
- Bear Market
- Bond
- Central Banks
- Deficit Spending
- Gross Domestic Product
- Japan
- Nikkei
- Nuclear Power
- Reality
- Technical Indicators
The Japanese stock market has become a case study of central-bank manipulations, and of what happens eventually as reality cannot be eliminated forever.
On Thursday, the Nikkei, after a horrific 800-point or 6% dive on a staircase to hell, or to 12,416, whichever came first, recovered a few hundred points, then climbed back down that staircase and ended the day at 12,445, the lowest close since April 3, down 844 points for the day, the second largest swoon so far in 2013.
The largest swoon this year? May 23, a 1,460-point crash, or 9.2%, from its intraday peak (after a 300-point jump that morning) of 15,943 – the highest most euphoric point since December 2008. Now the Nikkei is down 21.9% from that peak, and in bear market territory. Both the Nikkei and the Topix dropped below the 100-day moving average during the day, which in itself triggered more selling, as these technical indicators, and the buy-sell behavior they engender, become self-fulfilling prophecies (for a while), not only on the way up, but also on the way down – their raison d’être; otherwise they’d be utterly useless.
It took the Nikkei 50 days – from April 3 to May 23 – to make it up that far, and just 20 days to come back down. Up by escalator, down by elevator (with ear-popping speed).
This is what happens when a stock market gets inflated by a central bank: promises of boundless money-printing attract the hot money that causes values to balloon to ridiculous highs in the shortest time. Then something happens, some silly event, the recognition that enough money has been made, a rumor that some big hedge fund is bailing out, a disappointing statement by the Bank of Japan, something... and some of the hot money suddenly has had enough, tries to take profits, tries to bail out, just when there are not many euphoric buyers left, and what you hear is a giant hissing sound. And what you get is capital destruction and wealth transfer.
Thank goodness, for the Bank of Japan, there is nothing like a good stock-market crash to prop up the otherwise wilting market for Japanese Government bonds. They’ve been an awful investment recently: the 10-year JGB has been yielding below 1% even though the BOJ promised to create 2% inflation. Theofficial plan is to hand JGB buyers a loss on an inflation-adjusted basis. So investors have been bailing out of JGBs while the BOJ has been gobbling them up through its massive bond-buying program. Yields have been jumping up and down in the most tumultuous manner, rising for the 10-year JGB from the freaky 0.315% low of April 5 to briefly kissing 1% on May 2, and panicky bondholders have been pulling out their hair along the way.
Since then, JGBs have “stabilized” somewhat, with yields retreating below 0.9%. But during yesterday’s stock market massacre, these despicable JGBs suddenly seemed like a pretty good deal again, given the choice between losing money fast in stocks and losing money more slowly in JGBs. In response, yields on the 10-year JGB briefly plunged from 0.88% to 0.80%, only to rise back to 0.86%.
In support of its machinations, the BOJ has stated repeatedly and explicitly that it is trying to inflate the stock market to create the "wealth effect" – that ephemeral and treacherous impetus for people to spend money they see on a computer screen but haven’t realized yet and haven’t paid their taxes on yet. But on average, they actually can’t spend the money they see on that screen because they’d have to sell to do so, and pull their money out of the market. It would cause a crash. And annihilate that beautiful wealth effect.
Instead, central banks use the wealth effect to lure consumers with a vision of wealth so that they’d spend their savings, or spend with their credit cards. And then, when the market does crash, consumers are left holding the bag: the vision of wealth has dematerialized, their savings have been decimated, and credit card bills have piled up. An insidious central-bank strategy.
But that’s secondary for the BOJ. Its primary concern is the enormous government bond market – and the banks, retirement funds, and other institutions that own a big portion of these crappy bonds. They're the lifeblood of the Japanese economy. And when push comes to shove, the BOJ lets stocks plunge in order to support bonds – as it has done on numerous occasions.
It’s hard to blame the BOJ. There are no more good options available for Japan. The economy has become physically dependent on out-of-control government deficit spending – with half of the spending being borrowed money! The debt, now over 200% of GDP, is so huge and growing so rapidly that reasonable solutions no longer apply. But reality cannot be pushed out forever. Someone eventually MUST pay for it all: the bondholders, the taxpayers, or all Japanese (via run-away inflation).
The one thing we know from Abenomics, and from the policies of all prior governments: they’ll try to push the day of reckoning out as far as possible, hopefully beyond their time in politics, and hopefully with enough warning to allow the elite to protect itself from the fallout. The BOJ’s job is to make that possible.
Abenomics has its detractors – even in unexpected places – and Prime Minister Shinzo Abe must be experiencing some interesting pillow talk. His wife has attacked one of the major components of his economic policies, the formerly omnipotent nuclear power industry that he is trying to restore to its former glory. Read....Akie Abe, His “Anti-Nuclear” Wife
No comments:
Post a Comment