Two great articles from Jessie's blogspot below.....
There is intraday commentary here. I think it is important.
One remarkable thing about today's market action was the rebound in the miners even as gold underwent another waterfall bear raid of selling down to the 1200 level.
While one can assign any motives they wish to the speculation about if and why there is a stealth confiscation happening, I do believe that the trigger for this was the request from Germany to have their sovereign gold returned, and the refusal of the custodian in New York to do so until 2020.
That is huge. It is almost incomprehensible.
Any fails to deliver or difficulty in obtaining supply at the LBMA or the Comex is most likely a secondary effect to this request.
The scramble is on to find bullion, because a failure to deliver on a legitimate request from a sovereign nation to have their gold bullion returned at the insistence of their citizens, who actually own it, is stunning. I am surprised that more has not been made out of this, and that the German people took this so blithely.
A default on an exchange can be covered up with forced cash settlements. A rehypothecation of customer assets by an MF Global can be sectioned off and minimized with the right PR campaign, localized to the investors whose property has been misappropriated and will not be replaced, except in discounted cash.
But for a central bank to release another country's bullion to their cronies in the market and then be unable to replace it without roiling he markets and sending a shock into the financial system is almost unbelievable.
This is what has happened in my opinion, and why the 'dogs of the market' were released by the financiers on their own people to try and hide what must be an embarrassment of the first order.
And if you believe I am mistaken, or engaging in some obtuse conjecture, I have only one response.
Prove me wrong. Make the markets more transparent. And return Germany's gold.
The initial misdeed may have been minor, but as it always seems to happen, the coverup is growing like some gothic structure. This is MF Global on steroids.
I think these fellows are playing for time, perhaps hoping for some 'big event' that will allow them to reset the markets and the rules of the game, for themselves and their cronies, once again.
Maybe there will be a rationale, a fairy tale, that this was a way to pressure Iran, who was rumoured to be resorting to gold payments when their currency was blocked in the international payments system. The American people might believe this. I doubt the rest of the world will.
Show us the truth while they is still an honorable way out. Make the markets honest and transparent again. Stop stonewalling on the investigation of the silver market. Fulfill your oaths.
Stand and deliver.
Dubai is a hub for gold flowing from West to East.
But no gold for Germany can be found.
Could it be an unofficial bail-in?
Curiouser and curiouser.
Submitted by Tyler Durden on 06/27/2013 20:56 -0400
http://harveyorgan.blogspot.com/2013/06/gld-stops-its-bleedingbut-comex-gold.html
( The beatings still will continue as morale has not improved..... )
Gold Daily And Silver Weekly Charts - End of Quarter, Stealth Confiscation
There is intraday commentary here. I think it is important.
One remarkable thing about today's market action was the rebound in the miners even as gold underwent another waterfall bear raid of selling down to the 1200 level.
While one can assign any motives they wish to the speculation about if and why there is a stealth confiscation happening, I do believe that the trigger for this was the request from Germany to have their sovereign gold returned, and the refusal of the custodian in New York to do so until 2020.
That is huge. It is almost incomprehensible.
Any fails to deliver or difficulty in obtaining supply at the LBMA or the Comex is most likely a secondary effect to this request.
The scramble is on to find bullion, because a failure to deliver on a legitimate request from a sovereign nation to have their gold bullion returned at the insistence of their citizens, who actually own it, is stunning. I am surprised that more has not been made out of this, and that the German people took this so blithely.
A default on an exchange can be covered up with forced cash settlements. A rehypothecation of customer assets by an MF Global can be sectioned off and minimized with the right PR campaign, localized to the investors whose property has been misappropriated and will not be replaced, except in discounted cash.
But for a central bank to release another country's bullion to their cronies in the market and then be unable to replace it without roiling he markets and sending a shock into the financial system is almost unbelievable.
This is what has happened in my opinion, and why the 'dogs of the market' were released by the financiers on their own people to try and hide what must be an embarrassment of the first order.
And if you believe I am mistaken, or engaging in some obtuse conjecture, I have only one response.
Prove me wrong. Make the markets more transparent. And return Germany's gold.
"Truth never damaged a cause that is just."This has become a badly done shell game of rehypothecated assets that cannot be unwound except with much higher prices which are viewed as an embarrassment and an impairment to a few of the TBTF Banks. Well, they have had plenty of opportunity to cover their massive short positions, and free up bullion from the big ETF.
Mohandas K. Gandhi
The initial misdeed may have been minor, but as it always seems to happen, the coverup is growing like some gothic structure. This is MF Global on steroids.
I think these fellows are playing for time, perhaps hoping for some 'big event' that will allow them to reset the markets and the rules of the game, for themselves and their cronies, once again.
Maybe there will be a rationale, a fairy tale, that this was a way to pressure Iran, who was rumoured to be resorting to gold payments when their currency was blocked in the international payments system. The American people might believe this. I doubt the rest of the world will.
Show us the truth while they is still an honorable way out. Make the markets honest and transparent again. Stop stonewalling on the investigation of the silver market. Fulfill your oaths.
Stand and deliver.
and.....
27 JUNE 2013
Dubai: Not Enough Space On Flights To Carry Gold From West To East
Dubai is a hub for gold flowing from West to East.
But no gold for Germany can be found.
Could it be an unofficial bail-in?
Curiouser and curiouser.
The National UAE
Gold rush 2013 style has Dubai scrambling
By James Doran
Jun 28, 2013
There is not enough space on airlines flying in to Dubai to meet the rapidly rising demand for physical gold in the emirate since the price plunged to record lows this week.
The price drop led to a rush of buyers for Dubai gold from the Middle East, South East Asia, the Balkans, Turkey and parts of Europe according to Tarek El Mdaka, the managing director of Kaloti Gold in Dubai.
"I cannot find a place for transporting gold on Emirates, on BA on Swiss Airlines this weekend," Mr El Mdaka said. "I am shipping in one-and-a-half to two tonnes of gold every day and it is going straight out...."
Read the rest of the story here.
Day 5 Of The China-Open-Precious-Metals-Smackdown
Deja Deja Deja Deja Deja Vu... Gold (and silver) are legging lower once again as China's markets open. Spot gold just hit $1180 (down 2.5% from post-US-close highs). Given the state of the short-term funding markets in China, it seems possible that banks are liquidating any- and every-thing to realize cash (copper is also suffering modestly here at the open).
In other news... Japanese stocks are up modestly - of course they are:
Japanese unemployment printed worse than expected
CPI is still in deflation mode
Industrial Production YoY is still dropping
Household Spending growth missed expectations by its most in almost 7 years...
Charts: Bloomberg
http://harveyorgan.blogspot.com/2013/06/gld-stops-its-bleedingbut-comex-gold.html
( The beatings still will continue as morale has not improved..... )
Thursday, June 27, 2013
GLD stops its bleeding/But Comex gold falls again/another attack on gold and silver today.
Good evening Ladies and Gentlemen:
Gold closed down by $18.20 to $1211.40 (comex closing time ). Silver rose by 1 cent to $18.60 (comex closing time)
In the access market at 5:00 pm, gold and silver finished trading at the following prices :
gold: 1201.00
silver: $19.45
At the Comex, the open interest in silver fell by 2415 contracts to 138,224. It seems that we lost a few paper players today.
First day notice is on tomorrow and we will then get a good glimpse as to how many silver contracts will stand for delivery.
The open interest on the entire gold comex contracts rose by 3588 contracts to 394,235 despite gold's fall in price yesterday of $45.00. The number of gold ounces standing for this June delivery month rose to 986,900 or 30.70 tonnes. If gold is such a barbaric relic of the past, how come we are witnessing a huge amount of gold standing? The number of silver ounces standing in this non active month of June rose to 935,000 oz.
Tonight, the Comex registered or dealer inventory of gold continues to bleed as it rest tonight at 1.352 million oz or 42.05 tonnes. This is still dangerously low. The total of all gold at the comex (dealer and customer) fell again again to 7.556 million oz or 235.0 tonnes of gold.
JPMorgan's customer inventory rose tonight to 148,029.40 oz or 4.60 tonnes through an adjustment. Its dealer inventory thus falls to at 401,877.493 oz but it still must settle upon contracts issued in the June delivery month which far exceeds its inventory.
The total of the 3 major gold bullion dealers( Scotia , HSBC and JPMorgan) in its gold Comex dealer account registers only 27.55 tonnes of gold
The GLD reported no change in inventory. The SLV inventory of silver showed a minor gain in inventory of 279,000 oz.
We will go over many stories tonight, 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 surprisingly rose by 3588 contracts from 390,647 up to 394,235 with gold falling by $45.00 yesterday. This is totally absurd! The front active month of June contract is now off the board. If you will recall we had 945 delivery notices waiting to be served upon our longs. Late in the evening after midnight, 1015 notices were served on our longs and then another 4 contracts early today for Friday delivery. Thus the total number of gold ounces standing for gold this month is a whopping 986,900 oz or 30.7 tonnes of gold. The next delivery month is the non active July contract and here the OI fell by 186 contracts down to 201. The next active delivery month for gold is August and here the OI fell by 1399 contracts from 215,721 down to 214,322. The estimated volume today was astronomical at 259,188 contracts.(remember no rollovers). The confirmed volume yesterday was also huge at 352,598.
The total silver Comex OI fell by 2415 contracts with silver falling badly in price yesterday by 94 cents yesterday. No doubt we have lost some of the players who have not learned that they cannot win in a crooked casino. The front non active June silver contract month is off the board. If you will recall we had 3 notices left to be served upon our longs. Instead we had a rather large 45 contracts served and thus the total number of silver ounces standing for June rises to 935,000 oz. The next big delivery month is July and here the OI fell by 12,244 contracts down to 6,413. We have 1 day left before first day notice (June 28.2013) and we will probably have a normal delivery of about 13- 16 million oz. The estimated volume today was good coming in at 79,752 contracts, however we had considerable rollovers to the next active delivery month of September. The confirmed volume yesterday was excellent at 156,852.
We had zero customer deposits today :
total customer deposits: nil oz
It is very strange that in a big delivery month, we are witnessing hardly any gold enter the dealer
we had 2 big customer withdrawals
i) Out of Brinks: 2032.23 oz
ii) Out of HSBC: 32,114.065 oz
total customer withdrawals: 34,146.295 oz
Today we had one big adjustments and that again was from our friends over at jPMorgan.
Out of JPMorgan vaults, 6,831.54 oz was adjusted out of the dealer account and into the customer account.
Thus tonight we have the following JPMorgan gold inventory:
JPM dealer inventory: 401,877.493 oz 12.50 tonnes
JPM customer inventory: 148,029.4 oz or 4.60 tonnes
As we reported to you two weeks ago, 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).
The last Tuesday in May (May 28), 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 tonight 28,389.579 oz was settled upon, leaving 71,611.00 oz still left to arrive in the settling process.
Tuesday, June 11, we had 217,844.96 actual ounces leave JPMorgan
Late last night, the CME reported that 1015 notices were issued of which 900 came from JPMorgan's customer . However 259 notices were stopped (received) by the J.P.Morgan's house or dealer account and we should see 25,900 oz of gold arrive at its dealer account. JPMorgan also received (stopped) 68 contracts into their customer account.
Early this morning, we had another delivery notice of 4 contracts served upon which 0 notices were issued by jPMorgan. However one notice was stopped by JPMorgan's house account.
In summary on the customer side of things for JPMorgan:
Today 900 notices were served upon our longs from the JPMorgan's customer side
(and zero from its dealer side).
Thus on JPMorgan customer side:
From the beginning of June we have had 1620 notices served from the customer side of JPMorgan + 900 contracts from today, for 2520 contracts or 252,000 oz. If we add the 71,611.00 oz owing from May issuance, we get 323,611 oz. If we subtract the actual withdrawal of gold from JPMorgan of 217,844.96, this still leaves 105,766.04 oz that needs to be settled upon from the vaults of JPMorgan customer side.
The total dealer comex gold continues to decline today as it is now at its nadir of 1.352 million oz or 42.05 tonnes of gold.
The total of all comex gold, dealer and customer falls badly tonight to 7.5560 million oz or 235.0 tonnes..
Now for JPMorgan's dealer side and what the inventory should be:
On June 11.2013 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 two weeks ago on Saturday (and again on that following Monday night,) I reported that JPMorgan had 470,322.102 oz in it's dealer account. From that day until now, 68,444.61 oz was either withdrawn or adjusted out, leaving the dealer side at 401,877.493 oz where it sits tonight.
On the dealer side here are the last 13 trading sessions as to notices issued from JPMorgan's dealer side:
Friday: zero
Monday: 1
Another disturbing piece of news is the low dealer gold inventory for our 3 major bullion banks(Scotia, HSBC and JPMorgan). Their dealer gold lowered to to 27.55 tonnes
i) Scotia: 231,619.164 oz or 7.204 tonnes (Monday... 285,596.23 oz or 8.88 tonnes)
ii) HSBC: 252,683.176 oz or 7.85 tonnes (Monday 270,197.277 oz or 8.4 tonnes)
iii) JPMorgan: 401,877.493 oz or 12.50 tonnes (previous yesterday 408,709.03 oz/12.71 tonnes)
Brinks dealer account has the lions share of the dealer gold at 447,198.56 oz 13.909 tonnes
Today we had 1019 notices served upon our longs for 101,900 oz of gold. In order to calculate what I believe will stand for delivery in June,
9869 contracts x 100 oz per contract or 986,900 oz served upon + 0 contracts left o/s = 986,900 oz or 30.70 tonnes of gold.
We gained a massive 7,400 oz or .230 tonnes of additional gold ounces standing in this June delivery month. And this occurred with a huge drubbing of gold as if nobody wanted the yellow stuff.
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 160.01% of that total production.
Ladies and Gentlemen: we have a three-fold problem:
i) the total dealer inventory of gold is at a very dangerously low level of only 42.27 tonnes and none of the 9.5 tonnes delivery notices from May and the major part of the 30.70 tonnes from June issued by JPM on its dealer side has yet to leave.
ii) a) JPMorgan's customer inventory remains at an extremely low 148,029.4 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. (see below CFTC charges Corzine)
ii b) JPMorgan's dealer account rests tonight at 401,877.493 oz. However all of this gold has been spoken for plus an additional 92,722.51 oz of deficient gold.
iii) the 3 major bullion banks have collectively only 27.50 tonnes of gold left in their dealer account.
i) Out of HSBC; 1901.000 oz
ii) Out of JPMorgan: 249,298.45 oz
iii) Out of Scotia: 150,655.72 oz
total customer withdrawal : 401,855.17 oz
Service or disservice
We are indebted to SRSrocco Report for the chart below. For readers unfamiliar with the Comex futures market, you need only to appreciate that this is the price setting mechanism for gold. Its contracts are supposed to be backed by the physical metal which should always be available for delivery.
How can it do this if its inventories are down 32 per cent to 7,520,000 ounces? Well it still can but project this forward and it cannot. Our colleagues at Agora Financial are opening predicting a day of reckoning when gold prices cease to be set by the Comex.
Gold’s still going up !
Their thinking is that gold prices will move far higher if set outside of the futures market. That and QE to infinity are the main reasons to think today’s gold sell-off is a mid-summer madness that cannot last for long.
All the world’s major central banks are following an ultra loose monetary policy that will end in inflation, and they dare not give it up because higher interest rates would cripple their debt-laden economies. What they must have, at all cost is inflation to erode this very high nominal debt.
For gold the only way is up, not that many will believe it after the worst fall in 34 years !
Posted on 26 June 2013 Categories:
Submitted by Tyler Durden on 06/27/2013 14:01 -0400
Gold closed down by $18.20 to $1211.40 (comex closing time ). Silver rose by 1 cent to $18.60 (comex closing time)
In the access market at 5:00 pm, gold and silver finished trading at the following prices :
gold: 1201.00
silver: $19.45
At the Comex, the open interest in silver fell by 2415 contracts to 138,224. It seems that we lost a few paper players today.
First day notice is on tomorrow and we will then get a good glimpse as to how many silver contracts will stand for delivery.
The open interest on the entire gold comex contracts rose by 3588 contracts to 394,235 despite gold's fall in price yesterday of $45.00. The number of gold ounces standing for this June delivery month rose to 986,900 or 30.70 tonnes. If gold is such a barbaric relic of the past, how come we are witnessing a huge amount of gold standing? The number of silver ounces standing in this non active month of June rose to 935,000 oz.
Tonight, the Comex registered or dealer inventory of gold continues to bleed as it rest tonight at 1.352 million oz or 42.05 tonnes. This is still dangerously low. The total of all gold at the comex (dealer and customer) fell again again to 7.556 million oz or 235.0 tonnes of gold.
JPMorgan's customer inventory rose tonight to 148,029.40 oz or 4.60 tonnes through an adjustment. Its dealer inventory thus falls to at 401,877.493 oz but it still must settle upon contracts issued in the June delivery month which far exceeds its inventory.
The total of the 3 major gold bullion dealers( Scotia , HSBC and JPMorgan) in its gold Comex dealer account registers only 27.55 tonnes of gold
The GLD reported no change in inventory. The SLV inventory of silver showed a minor gain in inventory of 279,000 oz.
We will go over many stories tonight, but first.....................
Here are the details:
The total gold comex open interest surprisingly rose by 3588 contracts from 390,647 up to 394,235 with gold falling by $45.00 yesterday. This is totally absurd! The front active month of June contract is now off the board. If you will recall we had 945 delivery notices waiting to be served upon our longs. Late in the evening after midnight, 1015 notices were served on our longs and then another 4 contracts early today for Friday delivery. Thus the total number of gold ounces standing for gold this month is a whopping 986,900 oz or 30.7 tonnes of gold. The next delivery month is the non active July contract and here the OI fell by 186 contracts down to 201. The next active delivery month for gold is August and here the OI fell by 1399 contracts from 215,721 down to 214,322. The estimated volume today was astronomical at 259,188 contracts.(remember no rollovers). The confirmed volume yesterday was also huge at 352,598.
The total silver Comex OI fell by 2415 contracts with silver falling badly in price yesterday by 94 cents yesterday. No doubt we have lost some of the players who have not learned that they cannot win in a crooked casino. The front non active June silver contract month is off the board. If you will recall we had 3 notices left to be served upon our longs. Instead we had a rather large 45 contracts served and thus the total number of silver ounces standing for June rises to 935,000 oz. The next big delivery month is July and here the OI fell by 12,244 contracts down to 6,413. We have 1 day left before first day notice (June 28.2013) and we will probably have a normal delivery of about 13- 16 million oz. The estimated volume today was good coming in at 79,752 contracts, however we had considerable rollovers to the next active delivery month of September. The confirmed volume yesterday was excellent at 156,852.
Comex gold/May contract month:
June 27/2013
the June contract month final standing for gold
the June contract month final standing for gold
Ounces
| |
Withdrawals from Dealers Inventory in oz
|
nil
|
Withdrawals from Customer Inventory in oz
|
34,146.065 (Brinks,HSBC)
|
Deposits to the Dealer Inventory in oz
|
nil
|
Deposits to the Customer Inventory, in oz
| nil |
No of oz served (contracts) today
|
1019 (101,900 oz)
|
No of oz to be served (notices)
|
off the board
|
Total monthly oz gold served (contracts) so far this month
|
9869 (986,900 oz)
|
Total accumulative withdrawal of gold from the Dealers inventory this month
|
78,856.579 oz
|
Total accumulative withdrawal of gold from the Customer inventory this month
| 482,270.48 oz |
We again had good activity at the gold vaults
The dealer again 0 deposits and no withdrawals.
We had zero customer deposits today :
total customer deposits: nil oz
It is very strange that in a big delivery month, we are witnessing hardly any gold enter the dealer
we had 2 big customer withdrawals
i) Out of Brinks: 2032.23 oz
ii) Out of HSBC: 32,114.065 oz
total customer withdrawals: 34,146.295 oz
Today we had one big adjustments and that again was from our friends over at jPMorgan.
Out of JPMorgan vaults, 6,831.54 oz was adjusted out of the dealer account and into the customer account.
Thus tonight we have the following JPMorgan gold inventory:
JPM dealer inventory: 401,877.493 oz 12.50 tonnes
JPM customer inventory: 148,029.4 oz or 4.60 tonnes
As we reported to you two weeks ago, 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).
The last Tuesday in May (May 28), 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 tonight 28,389.579 oz was settled upon, leaving 71,611.00 oz still left to arrive in the settling process.
Tuesday, June 11, we had 217,844.96 actual ounces leave JPMorgan
Late last night, the CME reported that 1015 notices were issued of which 900 came from JPMorgan's customer . However 259 notices were stopped (received) by the J.P.Morgan's house or dealer account and we should see 25,900 oz of gold arrive at its dealer account. JPMorgan also received (stopped) 68 contracts into their customer account.
Early this morning, we had another delivery notice of 4 contracts served upon which 0 notices were issued by jPMorgan. However one notice was stopped by JPMorgan's house account.
In summary on the customer side of things for JPMorgan:
Today 900 notices were served upon our longs from the JPMorgan's customer side
(and zero from its dealer side).
Thus on JPMorgan customer side:
From the beginning of June we have had 1620 notices served from the customer side of JPMorgan + 900 contracts from today, for 2520 contracts or 252,000 oz. If we add the 71,611.00 oz owing from May issuance, we get 323,611 oz. If we subtract the actual withdrawal of gold from JPMorgan of 217,844.96, this still leaves 105,766.04 oz that needs to be settled upon from the vaults of JPMorgan customer side.
The total dealer comex gold continues to decline today as it is now at its nadir of 1.352 million oz or 42.05 tonnes of gold.
The total of all comex gold, dealer and customer falls badly tonight to 7.5560 million oz or 235.0 tonnes..
Now for JPMorgan's dealer side and what the inventory should be:
On June 11.2013 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 two weeks ago on Saturday (and again on that following Monday night,) I reported that JPMorgan had 470,322.102 oz in it's dealer account. From that day until now, 68,444.61 oz was either withdrawn or adjusted out, leaving the dealer side at 401,877.493 oz where it sits tonight.
On the dealer side here are the last 13 trading sessions as to notices issued from JPMorgan's dealer side:
Friday: zero
Monday: 1
Tuesday: 0
Wednesday : 0
Wednesday : 0
Thursday: 0
Friday: 0
Monday: 0 .
Tuesday: 0
Wednesday: 0
Thursday: 0
Friday: 0
Monday:0
Tuesday: 0
Wednesday: 0
Thursday:0
Today, JPMorgan did have 260 notices stopped (received) by their dealer side(259 late last night and one early this morning) and we must see this gold (26,000 oz) enter the dealer.
Thus, 4946 notices have been issued by JPMorgan (dealer side) so far in June for 494,600 oz and these ounces have yet to settle from JPMorgan's dealer side.
JPMorgan's dealer vault registers tonight 401,877.493 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 92,722.51 oz (401,877.493 inventory - 494,600 oz issued = 92,722.51 oz)
In other words, the entire 401,877.493 oz 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 92,722.51 of additional deficient gold
JPMorgan has not had any deposits in gold in quite some time. As a matter of fact, zero ounces has entered on the dealer side from the beginning of 2013.
How will JPMorgan satisfy this shortfall??
Friday: 0
Monday: 0 .
Tuesday: 0
Wednesday: 0
Thursday: 0
Friday: 0
Monday:0
Tuesday: 0
Wednesday: 0
Thursday:0
Today, JPMorgan did have 260 notices stopped (received) by their dealer side(259 late last night and one early this morning) and we must see this gold (26,000 oz) enter the dealer.
Thus, 4946 notices have been issued by JPMorgan (dealer side) so far in June for 494,600 oz and these ounces have yet to settle from JPMorgan's dealer side.
JPMorgan's dealer vault registers tonight 401,877.493 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 92,722.51 oz (401,877.493 inventory - 494,600 oz issued = 92,722.51 oz)
In other words, the entire 401,877.493 oz 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 92,722.51 of additional deficient gold
JPMorgan has not had any deposits in gold in quite some time. As a matter of fact, zero ounces has entered on the dealer side from the beginning of 2013.
How will JPMorgan satisfy this shortfall??
Another disturbing piece of news is the low dealer gold inventory for our 3 major bullion banks(Scotia, HSBC and JPMorgan). Their dealer gold lowered to to 27.55 tonnes
i) Scotia: 231,619.164 oz or 7.204 tonnes (Monday... 285,596.23 oz or 8.88 tonnes)
ii) HSBC: 252,683.176 oz or 7.85 tonnes (Monday 270,197.277 oz or 8.4 tonnes)
iii) JPMorgan: 401,877.493 oz or 12.50 tonnes (previous yesterday 408,709.03 oz/12.71 tonnes)
Brinks dealer account has the lions share of the dealer gold at 447,198.56 oz 13.909 tonnes
Today we had 1019 notices served upon our longs for 101,900 oz of gold. In order to calculate what I believe will stand for delivery in June,
Thus we have the following gold ounces standing for metal in June:
9869 contracts x 100 oz per contract or 986,900 oz served upon + 0 contracts left o/s = 986,900 oz or 30.70 tonnes of gold.
We gained a massive 7,400 oz or .230 tonnes of additional gold ounces standing in this June delivery month. And this occurred with a huge drubbing of gold as if nobody wanted the yellow stuff.
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 160.01% of that total production.
Ladies and Gentlemen: we have a three-fold problem:
i) the total dealer inventory of gold is at a very dangerously low level of only 42.27 tonnes and none of the 9.5 tonnes delivery notices from May and the major part of the 30.70 tonnes from June issued by JPM on its dealer side has yet to leave.
ii) a) JPMorgan's customer inventory remains at an extremely low 148,029.4 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. (see below CFTC charges Corzine)
ii b) JPMorgan's dealer account rests tonight at 401,877.493 oz. However all of this gold has been spoken for plus an additional 92,722.51 oz of deficient gold.
iii) the 3 major bullion banks have collectively only 27.50 tonnes of gold left in their dealer account.
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 27/2013: June silver contract month:
| Silver |
Ounces
|
| Withdrawals from Dealers Inventory | nil |
| Withdrawals from Customer Inventory | 401,855.17 oz (HSBC,JPM, Scotia,) |
| Deposits to the Dealer Inventory | nil |
| Deposits to the Customer Inventory | nil |
| No of oz served (contracts) | 45 (225,000 oz) |
| No of oz to be served (notices) | off the board |
| Total monthly oz silver served (contracts) | 187 (935,000 oz) |
| Total accumulative withdrawal of silver from the Dealers inventory this month | 988,092.07 oz |
| Total accumulative withdrawal of silver from the Customer inventory this month | 5,642,576.0 oz |
Today, we had little activity inside the silver vaults.
we had 0 dealer deposits and 0 dealer withdrawals.
We had 0 customer deposit:
i) total customer deposit: nil
We had 3 customer withdrawal:
We had 0 customer deposit:
i) total customer deposit: nil
We had 3 customer withdrawal:
i) Out of HSBC; 1901.000 oz
ii) Out of JPMorgan: 249,298.45 oz
iii) Out of Scotia: 150,655.72 oz
total customer withdrawal : 401,855.17 oz
we had 0 adjustments today
Registered silver at : 41.397 million oz
total of all silver: 164.445 million oz.
The CME reported that we had 45 notices filed for 225,000 oz today.
June is now off the board ....
Thus the total number of silver ounces standing in this non active delivery month of June is as follows:
187 contracts x 5000 oz per contract (served) = 935,000 oz
we gained 210,000 oz of silver standing on this last day of June.
June is now off the board ....
Thus the total number of silver ounces standing in this non active delivery month of June is as follows:
187 contracts x 5000 oz per contract (served) = 935,000 oz
we gained 210,000 oz of silver standing on this last day of June.
Now let us check on gold inventories at the GLD first: flatline in inventory three days running.....
June 27.2013:
June 26.2013:
June 25.2013:
June 27.2013:
Tonnes969.50
Ounces31,170,424.23
Value US$38.408 billion
June 26.2013:
Tonnes969.50
Ounces31,170,424.23
Value US$38.517 billion
June 25.2013:
Tonnes969.50
Ounces31,170,424.23
Value US$39.850 billion
* * *
Selected news and views.......
Bill Holter says it like it is:
(courtesy Bill Holter/Miles Franklin)
Bill Holter says it like it is:
(courtesy Bill Holter/Miles Franklin)
Service or disservice
Gold is down better than 25% so far this year. The Gold bashers are jumping for joy after 11 years of being silenced. Along the way we heard all sorts of slurs from many different angles. At first in the early 2000's we would hear chuckles and laughs or see people roll their eyes. Many who bought Gold back at that prescient time wouldn't even talk about what they had done because they didn't want people to think that they were "nuts". "Nuts" as in conspiracy nuts, contrary nuts, or just plain nuts. Then as the internet bubble and equity markets burst, "Gold" was called just a flash in the pan and once the stock market got back to "normal" Gold would then go back into it's bear cage.
As we got into 2003 and '04 it got a little more serious. I can still remember the debate as to which would reach $500 first, Google or Gold? (Gold won by a bigger margin than Secretariat could ever have dreamed of) Warren Buffett and other tools like him were trotted out to call Gold barbaric and unproductive. Each time that Gold reacted and had any pullback at all, TOP was screamed from the 4 corners of the nation and we were assured it was over for Gold. We had the big pullback in summer of '02 and then again in Feb of '03. We had some doldrums in '04 and then an extended time in '05. 2006 started out with a real upside bang, Gold reached $730 and peaked on May 15, the following pullback into June 15 was a doozy. Please keep in mind that all along this time period, the media (CNBC) was bearish, brokerages were bearish and you were told that you were "playing with fire". Maybe you were smart enough to have already ridden the bull this far, "it was a gift" but it was time to end your foolishness.
Then Gold cracked the $800, $900 and $1,000 levels going into the Greatest Financial crisis of 2008. Most people just looked at Gold and were amazed, "amazed" at such a huge bubble and scared. "Scared" to get in because surely at levels over $850...you must be "nuts" (there's that slur again) to even look at Gold. Of course, the only ones who actually called the financial/banking/real estate train wreck of 2007-2009 were those of "Austrian economics". The Austrians called the crash (some as early as 2005 or '06), these "nutjobs" as they were called until 2008 were also the ones that were long Gold. Long because of inflation, deflation, printing, borrowing, cooking the books, banks and financial institutions defaulting or ...because Gold is money and when push came to shove "cash" (real money) is where you wanted to be when the house came down.
We sat by and watched Gold get monkey hammered down to $696 in Oct. 2008 and we were assured that "deflation" would knock it...and all "commodities" down the drain. Gold was down less than almost ALL
"commodities" and I commented at the time that Gold was actually holding up better because, well, it's not a commodity, it is money. Gold was sold off I am sure as a way to meet margin calls in other areas, this is a granted. It was also "managed" on the COMEX but as RoseAnne Rosana Danadana says, "nevermind" because the CFTC doesn't say so. I wrote at the time that the Fed would have to reflate, they would break the Treasury and themselves in the process and that yes, "Gold would be the last man standing".
Fast forward to 2011 and Gold hit $1,900 because of the "AAA" downgrade/fiscal fiasco and then traded between $1,650 and the high $1,800's until...April of this year. I have written ALL ALONG that you need to be a buyer on any weakness...and it has been weakness we have seen. The bashers have come out in full force, "Jim Sinclair, James Turk, Sprott and Embry are all "charlatans" talking their books and "ruining" peoples financial lives". They are "cads" that have no credibility whatsoever. They are wrong...end of story...just look at the price of Gold and particularly Silver. They have done nothing but a "disservice" to the Gold community and should go hide their heads (me included) in shame for missing this "oh so important top". Others, who are so much smarter than this group have been correct and did a "service" by "getting people out" in the nick of time. Never mind that these guru's for the most part have been bearish all the way up and it doesn't even matter "why" they are/were bearish...they were correct! As I said, just look at the prices of Gold and Silver. The "top is in" ...so it goes. Some say that they are currently long Gold and are bullish long term but they "knew" that Gold was going down. They say that us "permabulls" have done and are doing a disservice because now no one will listen to us...we were, are wrong and have "discouraged the masses" by screaming BUY to anyone who would listen. "Look what you've done!".
Well, where do I start with this one? First, hopefully on the margin, more people have bought on our words rather than sell in "disgust" from them. I am 100% positive that this is the case. More people own Gold and Silver because of this group who "talks their book" than have ever sold or would be "scared away" now because of a pullback in price. We have seen this type of price action before and we screamed "buy" while they screamed "sell". Every single time going back to 1999, it was best to have bought.
Until now you say? Well, where are we now? We are now at the end of the road. governments and central banks are broke and broken. Every single new "acronym plan" has proven to be a bust ...just as we've said they would be. Nothing has worked and nothing will work until a new and completely overhauled monetary plan is introduced. But, but, but "Gold is down" you say? Yes it is but it is important to understand "why" or "how" we arrived here. Gold and Silver was not sold they have actually been bought, it was contracts, futures, paper receipts, "surrogates" that were sold. They were sold when those markets were at "thinnest" of the day. They were sold in amounts that simply dwarf annual production or even amounts that central banks claim to have. The paper surrogates" were sold SPECIFICALLY in a manner to effect price. They were sold in a manner to MAKE price. Physical demand has exploded all over the world and premiums and delivery lags have resulted, real buyers of real metal are buying while sellers of fake, unbacked paper Gold were selling in amounts that don't and cannot exist. "But this cannot be so, it's illegal!". Yes it is. I will say this, Gold and Silver prices have been "manufactured", they are not a product of free market pricing. If they were they would be multiples of what are now.
It has also been said that there is no way that a coordinated effort to smash the price of Gold could ever happen because it would involve too many people. How many "conspiracy theories" do you need to see turned into conspiracy "fact" before you "get it"? Governments that issue fiat currency have a vested interest in low Gold prices as Gold (real money) is their direct competitor. Financial institutions also have a vested interest in low Gold prices because their pyramid of "paper products" also compete with Gold directly. The "media" who trot out expert after expert who bash Gold would never give up their "fair and balanced" principles to advance the wishes of government/finance would they? How many dots do you need to be able connect to reality?
So, have we done and are we doing a "service or a disservice"" We have called bottoms all along the way and have suggested since April and long before to buy any and all weakness. On the other hand there are those who continually try to call "tops". Granted, there will be one time and many say that "this time" is it that they will be correct. I would tell you this, if you believe that governments will figure out a way to fix their balance sheets, make the banks stable again and in general "right the ship" then believe that the "top" in in for Gold and Silver and exit this space.
If on the other hand you don't believe that those who got us here can get us out...then buy the dips and don't trade...just accumulate. If "we" are correct and a revaluation is coming and probably coming very soon, will it make any difference whether you paid $1,200 per ounce or $1,800 per ounce or $500 per ounce years ago? No it will not, the only important thing at that moment in time is how many ounces you have or even whether you have any ounces or not. I
I would like to remind you that this past Monday we woke up to stories of the Chinese banking system in a seizure mode. Were that to have spread into what I have called a "banking holiday", how would you feel if you had sold your Gold at $1,600 and had already rebought at the then price of $1,380 or so last Friday and your "check was in the mail" to the dealer? Pretty nifty huh, you scalped almost $300 out of the trade...but wait, China happened and your check doesn't clear and the metal doesn't arrive...uh oh! Do you see? I don't know when, Sinclair nor any of the Gold bulls know when something like this is going to happen but we fully believe that it will. We have made many "whacked out calls" in the past that "could never happen" but are now considered "business as usual"...please don't ignore this one. We are headed into a currency, debt, banking, stock market and bond market crisis unlike anything ever seen before in history, you can either be prepared and consider this a "service" or disregard it and consider it a disservice.
Opinions are what makes horse races, we have stated ours and they have stated theirs...it is up to you to figure out who's logic makes the most sense. It is up to you to figure out if the calls for 12 of the past 13 years that were made came from sound logic or were they "pure luck". Did we "talk our book" or did we genuinely try to help? Have we said one thing yet done another? Have we all put our own skin into the game? In huge oversized percentages? Have we provided a service...or a disservice? You need to figure this out for yourself...it is your future and only yours to protect! Regards, Bill H.
As we got into 2003 and '04 it got a little more serious. I can still remember the debate as to which would reach $500 first, Google or Gold? (Gold won by a bigger margin than Secretariat could ever have dreamed of) Warren Buffett and other tools like him were trotted out to call Gold barbaric and unproductive. Each time that Gold reacted and had any pullback at all, TOP was screamed from the 4 corners of the nation and we were assured it was over for Gold. We had the big pullback in summer of '02 and then again in Feb of '03. We had some doldrums in '04 and then an extended time in '05. 2006 started out with a real upside bang, Gold reached $730 and peaked on May 15, the following pullback into June 15 was a doozy. Please keep in mind that all along this time period, the media (CNBC) was bearish, brokerages were bearish and you were told that you were "playing with fire". Maybe you were smart enough to have already ridden the bull this far, "it was a gift" but it was time to end your foolishness.
Then Gold cracked the $800, $900 and $1,000 levels going into the Greatest Financial crisis of 2008. Most people just looked at Gold and were amazed, "amazed" at such a huge bubble and scared. "Scared" to get in because surely at levels over $850...you must be "nuts" (there's that slur again) to even look at Gold. Of course, the only ones who actually called the financial/banking/real estate train wreck of 2007-2009 were those of "Austrian economics". The Austrians called the crash (some as early as 2005 or '06), these "nutjobs" as they were called until 2008 were also the ones that were long Gold. Long because of inflation, deflation, printing, borrowing, cooking the books, banks and financial institutions defaulting or ...because Gold is money and when push came to shove "cash" (real money) is where you wanted to be when the house came down.
We sat by and watched Gold get monkey hammered down to $696 in Oct. 2008 and we were assured that "deflation" would knock it...and all "commodities" down the drain. Gold was down less than almost ALL
"commodities" and I commented at the time that Gold was actually holding up better because, well, it's not a commodity, it is money. Gold was sold off I am sure as a way to meet margin calls in other areas, this is a granted. It was also "managed" on the COMEX but as RoseAnne Rosana Danadana says, "nevermind" because the CFTC doesn't say so. I wrote at the time that the Fed would have to reflate, they would break the Treasury and themselves in the process and that yes, "Gold would be the last man standing".
Fast forward to 2011 and Gold hit $1,900 because of the "AAA" downgrade/fiscal fiasco and then traded between $1,650 and the high $1,800's until...April of this year. I have written ALL ALONG that you need to be a buyer on any weakness...and it has been weakness we have seen. The bashers have come out in full force, "Jim Sinclair, James Turk, Sprott and Embry are all "charlatans" talking their books and "ruining" peoples financial lives". They are "cads" that have no credibility whatsoever. They are wrong...end of story...just look at the price of Gold and particularly Silver. They have done nothing but a "disservice" to the Gold community and should go hide their heads (me included) in shame for missing this "oh so important top". Others, who are so much smarter than this group have been correct and did a "service" by "getting people out" in the nick of time. Never mind that these guru's for the most part have been bearish all the way up and it doesn't even matter "why" they are/were bearish...they were correct! As I said, just look at the prices of Gold and Silver. The "top is in" ...so it goes. Some say that they are currently long Gold and are bullish long term but they "knew" that Gold was going down. They say that us "permabulls" have done and are doing a disservice because now no one will listen to us...we were, are wrong and have "discouraged the masses" by screaming BUY to anyone who would listen. "Look what you've done!".
Well, where do I start with this one? First, hopefully on the margin, more people have bought on our words rather than sell in "disgust" from them. I am 100% positive that this is the case. More people own Gold and Silver because of this group who "talks their book" than have ever sold or would be "scared away" now because of a pullback in price. We have seen this type of price action before and we screamed "buy" while they screamed "sell". Every single time going back to 1999, it was best to have bought.
Until now you say? Well, where are we now? We are now at the end of the road. governments and central banks are broke and broken. Every single new "acronym plan" has proven to be a bust ...just as we've said they would be. Nothing has worked and nothing will work until a new and completely overhauled monetary plan is introduced. But, but, but "Gold is down" you say? Yes it is but it is important to understand "why" or "how" we arrived here. Gold and Silver was not sold they have actually been bought, it was contracts, futures, paper receipts, "surrogates" that were sold. They were sold when those markets were at "thinnest" of the day. They were sold in amounts that simply dwarf annual production or even amounts that central banks claim to have. The paper surrogates" were sold SPECIFICALLY in a manner to effect price. They were sold in a manner to MAKE price. Physical demand has exploded all over the world and premiums and delivery lags have resulted, real buyers of real metal are buying while sellers of fake, unbacked paper Gold were selling in amounts that don't and cannot exist. "But this cannot be so, it's illegal!". Yes it is. I will say this, Gold and Silver prices have been "manufactured", they are not a product of free market pricing. If they were they would be multiples of what are now.
It has also been said that there is no way that a coordinated effort to smash the price of Gold could ever happen because it would involve too many people. How many "conspiracy theories" do you need to see turned into conspiracy "fact" before you "get it"? Governments that issue fiat currency have a vested interest in low Gold prices as Gold (real money) is their direct competitor. Financial institutions also have a vested interest in low Gold prices because their pyramid of "paper products" also compete with Gold directly. The "media" who trot out expert after expert who bash Gold would never give up their "fair and balanced" principles to advance the wishes of government/finance would they? How many dots do you need to be able connect to reality?
So, have we done and are we doing a "service or a disservice"" We have called bottoms all along the way and have suggested since April and long before to buy any and all weakness. On the other hand there are those who continually try to call "tops". Granted, there will be one time and many say that "this time" is it that they will be correct. I would tell you this, if you believe that governments will figure out a way to fix their balance sheets, make the banks stable again and in general "right the ship" then believe that the "top" in in for Gold and Silver and exit this space.
If on the other hand you don't believe that those who got us here can get us out...then buy the dips and don't trade...just accumulate. If "we" are correct and a revaluation is coming and probably coming very soon, will it make any difference whether you paid $1,200 per ounce or $1,800 per ounce or $500 per ounce years ago? No it will not, the only important thing at that moment in time is how many ounces you have or even whether you have any ounces or not. I
I would like to remind you that this past Monday we woke up to stories of the Chinese banking system in a seizure mode. Were that to have spread into what I have called a "banking holiday", how would you feel if you had sold your Gold at $1,600 and had already rebought at the then price of $1,380 or so last Friday and your "check was in the mail" to the dealer? Pretty nifty huh, you scalped almost $300 out of the trade...but wait, China happened and your check doesn't clear and the metal doesn't arrive...uh oh! Do you see? I don't know when, Sinclair nor any of the Gold bulls know when something like this is going to happen but we fully believe that it will. We have made many "whacked out calls" in the past that "could never happen" but are now considered "business as usual"...please don't ignore this one. We are headed into a currency, debt, banking, stock market and bond market crisis unlike anything ever seen before in history, you can either be prepared and consider this a "service" or disregard it and consider it a disservice.
Opinions are what makes horse races, we have stated ours and they have stated theirs...it is up to you to figure out who's logic makes the most sense. It is up to you to figure out if the calls for 12 of the past 13 years that were made came from sound logic or were they "pure luck". Did we "talk our book" or did we genuinely try to help? Have we said one thing yet done another? Have we all put our own skin into the game? In huge oversized percentages? Have we provided a service...or a disservice? You need to figure this out for yourself...it is your future and only yours to protect! Regards, Bill H.
In graph form how much gold inventories have fallen"
(courtesy Arabian money.com)
(courtesy Arabian money.com)
Comex gold inventories fall 32% in five months in bullish shake down
Posted on 26 June 2013
Posted on 26 June 2013
The day when gold is priced by the supply and demand of the physical metal rather than paper future prices in the Comex trading pit is coming closer, and with it a return of much higher gold prices.
We are indebted to SRSrocco Report for the chart below. For readers unfamiliar with the Comex futures market, you need only to appreciate that this is the price setting mechanism for gold. Its contracts are supposed to be backed by the physical metal which should always be available for delivery.
How can it do this if its inventories are down 32 per cent to 7,520,000 ounces? Well it still can but project this forward and it cannot. Our colleagues at Agora Financial are opening predicting a day of reckoning when gold prices cease to be set by the Comex.
Gold’s still going up !
Their thinking is that gold prices will move far higher if set outside of the futures market. That and QE to infinity are the main reasons to think today’s gold sell-off is a mid-summer madness that cannot last for long.
All the world’s major central banks are following an ultra loose monetary policy that will end in inflation, and they dare not give it up because higher interest rates would cripple their debt-laden economies. What they must have, at all cost is inflation to erode this very high nominal debt.
For gold the only way is up, not that many will believe it after the worst fall in 34 years !
Posted on 26 June 2013 Categories:
Gold & Silver
http://www.arabianmoney.net/gold-silver/2013/06/26/comex-gold-inventories-
fall-32-in-five-months-in-bullish-shake-down/
-END-
what is going on here?:
JPMorgan’s Henry Bath Delists 21 LME Storage Units Worldwide
Henry Bath & Son Ltd., owned by JPMorgan Chase & Co., requested the London Metal Exchange to delist 21 of its warehouses and storage facilities.
Five warehouses in Baltimore, three in Liverpool and two in Bilbao, Spain, were delisted with immediate effect, the bourse said in notices to members today. Henry Bath also had two Singapore warehouses, and one warehouse in Chicago, New Orleans and Busan, South Korea removed, according to the LME.
Six of Henry Bath’s Rotterdam facilities were also removed from the network of LME warehouses with immediate effect, the LME said.
http://www.bloomberg.com/news/2013-06-27/jpmorgan-s-henry-bath-delists-21-lme-storage-units-worldwide.html
http://www.arabianmoney.net/gold-silver/2013/06/26/comex-gold-inventories-
fall-32-in-five-months-in-bullish-shake-down/
-END-
what is going on here?:
JPMorgan’s Henry Bath Delists 21 LME Storage Units Worldwide
Henry Bath & Son Ltd., owned by JPMorgan Chase & Co., requested the London Metal Exchange to delist 21 of its warehouses and storage facilities.
Five warehouses in Baltimore, three in Liverpool and two in Bilbao, Spain, were delisted with immediate effect, the bourse said in notices to members today. Henry Bath also had two Singapore warehouses, and one warehouse in Chicago, New Orleans and Busan, South Korea removed, according to the LME.
Six of Henry Bath’s Rotterdam facilities were also removed from the network of LME warehouses with immediate effect, the LME said.
http://www.bloomberg.com/news/2013-06-27/jpmorgan-s-henry-bath-delists-21-lme-storage-units-worldwide.html
Gold Breaks Below $1200
From the moment Bernanke spoke, Gold and Silver began to accelerate to the downside. Gold legged lower into the NYMEX pit close and faded further in search of the $1200 round number (trading at $1199.90). Down around 12% from the FOMC (gold is now -38% from its highs in 2011).
Silver is following (down over 14% from FOMC) as the Gold-to-Silver ratio test 65x (double its lows in April 2011 around 32x) and back to the ratio that existed as Lehman failed.
As we noted yesterday, somewhat oddly, as goes gold so goes AAPL...
The other interesting on-again-off-again relationship of interest is Gold vs Housing (i.e. QE-driven excess vs the thing that supports QE or not)...
So to sum up today's remarkable market...Equities and Bonds are rallying hard on the basis that there will be no end to QE; and gold is crashing because QE is ending?
Perhaps some context is in order...
Charts: Bloomberg
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