Saturday, June 29, 2013

Saturday gold and Silver Report - June 29 , 2013 .... Ed Steer's report covers Data from friday , Commitment of Traders Reports for gold and silver - gold ( 11 year net low short position ) and silver ( 20 year net low position ) net short positions for both decline notably once again , CME data , GLD and SLV data ....... news for gold and silver , news of interest..... Harvey Organ's Saturday Report - June 29 , 2013 ...

http://www.caseyresearch.com/gsd/edition/sprotts-thoughts-silver-is-winning-indias-war-on-gold


"As the saying goes...he who has the gold, makes the rules."

¤ YESTERDAY IN GOLD & SILVER

After doing nothing for the first couple of hours in Far East trading on their Friday, the high-frequency traders spun all the precious metal prices lower starting around 8:30 a.m. Hong Kong time.  Gold's subsequent rally lasted until 2:00 p.m. in Hong Kong...and from there drifted down to its low of the day...$1,186.40 spot...which came at the 3:00 p.m. BST London p.m. gold fix, which was 10:00 a.m. EDT in New York.
From there, the gold price blasted higher, adding $35 to its price in about thirty minutes.  After that, the gold price continued to move quietly higher closing on its high of the day...and that's an event that has only occurred two or three times in the last couple of years.
The gold price closed at $1,235.30 spot...up $34.50 on the day.  Gross volume was a remarkable 335,000 contracts.
Silver's price pattern was similar...but different in some respects.
The sell-off occurred at 8:30 a.m. Hong Kong time, just like the other three precious metals...but in silver's case, the subsequent rally got capped at 11:00 a.m. Hong Kong time.  Silver's low [$18.47 spot] came long before the London p.m. gold fix...but the big run-up in price after the fix, like gold, ended at 10:30 a.m. EDT.  After that, silver rallied quietly into the close...with the high tick [$19.80 spot] coming around 5:00 p.m. in electronic trading.
According to Kitco, silver closed at $19.66 spot on Friday...up $1.15 from Thursday's close.  Net volume was an eye-watering 74,000 contracts.
After their little engineered price declines in early Hong Kong trading on their Friday morning, bothplatinum and palladium rallied as well, but did not follow the gold or silver price patterns at all.  Here are their respective charts...
For the day, gold was up 2.87%...silver was up 6.21%...platinum was up 1.90%...and palladium closed up 2.33%.
The dollar index closed at 82.95 late Thursday afternoon in New York...and once Friday morning Far East trading began, it chopped sideways just below the 83.00 mark until rolling over to its low of the day...82.77...just before 9:00 a.m. in New York.  The rally that began at that point ended at 11:00 a.m. EDT right on the button.  That was the index high of 83.32...and from there it drifted lower into the close, finishing the Friday session at 83.18...up 23 basis points on the day.
You should carefully note that gold and silver's big 30-minute rallies that began at the 10:00 a.m. EDT London gold fix, occurred right in the middle of the big dollar index rally.



The CME's Daily Delivery Report for 'Day 2' of the July delivery month in silver showed that one gold and 500 silver contracts were posted for delivery within the Comex-approved depositories on Tuesday.  In silver, the three largest short/issuers were Jefferies, Deutsche Bank and Merrill...with 229, 172 and 66 contracts respectively.  Not surprisingly, JPMorgan Chase was the biggest long/stopper with 410 contracts in its proprietary trading account...and 41 in its client account.  Yesterday's Issuers and Stoppers Report is linked here.
And...much to my surprise...there were no reported changes in either GLD or SLV again yesterday...and I'm sure Ted Butler will have something to say about that in his commentary later today.
The U.S. Mint had a sales report to end the month.  They sold another 10,000 ounces of gold eagles...and 4,500 one-ounce 24K gold buffaloes...and zero silver eagles, which I found rather surprising.  For the month of June, the mint sold 57,000 troy ounces of gold eagles...17,000 one-ounce 24K gold buffaloes...and 3,275,000 silver eagles.  Based on these figures, the silver/gold sales ratio is a bit over 44 to 1.
Over at the Comex-approved depositories on Thursday, they reported receiving 301,005 troy ounces of silver...and shipped 251,797 troy ounces of the stuff out the door.  The link to that activity is here.
In gold, these same depositories reported receiving only one kilobar [32.15 troy ounces]...and that was at Brink's, Inc.  However, they reported shipping out 57,830 troy ounces.  The link to that action is here.
It was stupid busy at the bullion store again yesterday.  Everybody who had been procrastinating all week, showed up yesterday.  I was a tired puppy by the time I crawled into my car to drive home.
The Commitment of Traders Report showed declines in the Commercial net short positions in both gold and silver.  But, considering the pounding that the price of each metal took during the reporting week, the improvements weren't as great as might be expected.
Ted Butler and I are of the opinion that the law of diminishing returns that we have both spoken of previously, is now setting in...as it's taking more and more effort to produce declining results, as there are limits to how many long holders that are prepared to sell...and how many short positions the technical funds can be tricked into buying.
In silver, the Commercial net short position declined by another 9.3 million ounces...and is now down to an unbelievably low 20.5 million ounces.  Reader E.W.F. put yesterday's report in some sort of historical perspective with these comments..."In silver, the Commercial net short position hasn't been this low since February 2, 1993...more than twenty years ago!  The silver raptors hold the largest net long position in the history of the data...and the non-commercial net long position hasn't been this low since April 15, 2003...more than ten years ago."
In gold, the Commercial net short position declined by 890,700 troy ounces...and is now down to 3.52 million ounces.  This is what reader E.W.F. had to say about the gold numbers..."In gold, the Commercial net short position hasn't been this low since August 27, 2002.  The gold raptors hold the largest net long position since February 20, 2001."
As the Commercial traders decrease their short positions, or add to long positions, it's the technical funds in the Non-Commercial category that are going short against them.  In silver, these same traders added 15.3 million ounces to their collective short positions...and in gold the Non-Commercial/technical fund types went short a further 954,000 ounces.
It's a good bet that up until 8:30 a.m. in Far East trading on their Friday, there were more records set in the COT Report since the Tuesday Comex close cut-off...but that was partially masked by the rally that occurred once the London p.m. gold fix was in.
But regardless of that, the COT Report yesterday was one for the ages...and unless JPMorgan et alhave another surprise up their collective sleeves next week, we probably saw the bottom on Friday.  Of course I said that seven days ago in this space as well...so you can take that last comment for what it's worth.
*  *  * 

Selected news and views....... non redundant items

Central banks sell record sums of U.S. debt

Central banks sold a record amount of U.S. Treasury debt last week while bond funds suffered the biggest-ever investor withdrawals as markets shuddered at the prospect of the US Federal Reserve ending its quantitative easing programme.
Holdings of US Treasuries held at the Fed on behalf of official foreign institutions dropped a record $32.4 billion to $2.93 trillion, eclipsing the prior mark of $24 billion in August 2007. It was the third week of outflows in the past four.
Private investors are also dumping fixed income. Bond funds tracked by EPFR Global, a data provider, saw total redemptions of $23.3 billion in the week to June 26. US funds were the worst hit, with withdrawals totaling $10.6 billion, but emerging market debt funds also saw record redemptions of $5.6 billion.
This news item appeared in the Financial Times yesterday...and is posted in the clear in this GATA release.  It's also worth reading.

Doug Noland: Uninsurable Risks

And while I’m on the subject of risk management, it’s worth noting that for years one could simply mitigate risk by holding Treasuries (and bunds, agency debt, etc.). In the event of market turbulence, rising Treasury prices would work to offset declining prices for stocks, junk bonds and such. Problematically, Treasury prices have of late been declining right along with risk assets, as “safe haven”, risk asset and commodity prices all turn atypically correlated. There’s been a proliferation of “risk parity” strategies that are struggling under current market conditions. If things don’t normalize quickly, market participants will be forced to adjust their views of risk and liquidity management.

In a way, the Federal Reserve has for years circumvented “nature” by assuring market liquidity. It is this assurance that has empowered a booming derivatives “insurance” marketplace that operates on the specious assumption of “liquid and continuous markets.” The vast majority of derivative market insurance written requires some degree of “dynamic” hedging – i.e. selling of instruments to generate sufficient cash flow to pay on market insurance contracts sold/written. This is one of those key Latent Market Bubble Risks.

Global climate change is fundamentally altering risk and the insurance marketplace, although “premiums have been kept artificially depressed in the short term because capital has flocked to the sector in the face of historic low interest rates.” Global central banks have unwittingly inflated risk and grossly distorted the risk “insurance” landscape across global risk markets. We’ll see how long “capital” continues to flock to global securities markets. Early indications of how global risk markets will function in the face of a reversal of flows is anything but encouraging.

Doug's weekly Credit Bubble Bulletin is always a must read for me...and I thank reader U.D. for sliding Friday's edition into my in-box early yesterday evening.


Paul Craig Roberts: Washington is Driving the World to the Final War

American patriots, who feel that they should be on “their” government’s side regardless of the facts, would do well to remember what true patriotism is. For Americans, patriotism has always meant allegiance to the Constitution, not to the government. The oath is to defend the Constitution against enemies domestic and foreign. The Bush and Obama regimes have proven themselves to be the Constitution’s worst enemies. It is not possible for a true patriot to support a government that destroys the Constitution. The United States is the Constitution. Our country is not the Obama regime, the Bush regime, or some other administration. Our country is the Constitution. The Constitution is our country.
Beyond obligations to one’s own country, all humans have a responsibility to human life itself. Washington’s puppet states, such as the NATO countries, Japan, and Colombia, by providing cover and support for Washington’s aggression are enabling Washington to drive the world into World War III.
Always controversial, but never far off the mark, Paul lays it out for all but the willfully blind.  It's a must read for all students of the "New Great Game"...and I thank Manitoba reader Ulrike Marx for her first contribution in today's column.


Bank of England softens rules for banks to give economy £70bn boost

The UK’s big four lenders will be able to reduce their cash and cash-like assets by 20pc under the recommendation, made by the Bank’s Financial Policy Committee (FPC). The excess “liquidity” could then be used “to support lending to the real economy”, it said. The FPC estimated the impact of the rule change on the big four to be “around £70bn”.
The policy was disclosed in the Bank’s bi-annual Financial Stability Report, in which it also warned that households were facing risks from the “current low interest rate environment”. “A significant cohort of UK borrowers could experience financial difficulties if interest rates were to rise during a period of subdued income growth,” the report said.
The warning followed outgoing Governor Sir Mervyn King’s final public comments on Tuesday, when he said: “I think the idea we are about to return to normal levels of interest rates in premature, and one of the reasons ... is precisely because so many households have such a high level of household debt.”
This interesting news item was posted on the telegraph.co.uk Internet site on Wednesday morning BST...and I thank reader 'David in California' for sending it.


Mocking Germans Adds Irish Insult to Banking Injury

Irish politicians say jibes at Germans by some of the country’s former bankers undermine their case for securing help to cut the 64 billion-euro ($83 billion) bill for saving the financial system.
John Bowe, a former executive at the now defunct Anglo Irish Bank Corp., sang “Deutschland Ueber Alles” as the lender won German deposits on the back of a government guarantee, according to recordings of 2008 conversations that were published this week by the Irish Independent newspaper.
“The tone seems to be the same across the banking industry, and it’s very hard to take for people who go to work every day and earn money,” Merkel told reporters today in Brussels where European leaders are meeting. “I have nothing but contempt for this.”
The revelations are “very damaging,” Irish Transport Minister Leo Varadkar said in an interview with RTE radio today, adding he largely agreed with Merkel’s comments.
This Bloomberg story, filed from Dublin, was posted on their Internet site in the wee hours of Friday morning MDT...and I thank U.A.E. reader Laurent-Patric Gally for sharing it with us.


Three King World News Blogs



Ross Norman: GOLD / INDIA - Robbing Peter To Pay Paul

The campaign against gold can be traced to mid-January 2013 when the import duty on dore bars/ores was raised from 2% to 5% and duty on market bars raised from 4% to 6%. Back then gold was trading at $1692 and has since fallen to $1200 - a decline of 29%. That would suggest that India's privately and publicly held gold has fallen from $1,010 billion to £716 billion - a decline of $294 billion.

The difficult bit now is to estimate how much of the 29% fall in gold prices can be attributed to the world’s largest gold market shuttering imports - well we plump for about one third - so Indians are about $100 billion poorer as a result of this policy. And the size of the CAD? Well it’s currently running at $20 billion a quarter - in other words a deficit of $80 billion per annum. A case of robbing Peter to pay Paul.

Meanwhile rural Indians are left with the uncomfortable feeling that the government wants them out of gold and into either the (falling) rupee or perhaps the stock market. If there was ever a time to own it is when the government tells you otherwise. As a PR exercise this rivals Gordon Brown's selling off of over half of the UK gold reserves - now there's a UK to India export that London might relish.  Any jobs going at the Reserve Bank of India?

This short commentary by Norman was posted on the sharpspixley.com Internet site yesterday...and is worth reading.

South Africa's miners can’t operate with gold below $1,500 - Gold Fields

Bullion must rise to $1,500 an ounce for the gold mining industry to be sustainable, according to Gold Fields Ltd.’s Chief Executive Officer Nick Holland.
“The industry is not sustainable at $1,230 an ounce, which is where the gold price is at the moment,” Holland said today in a telephone interview. “We’re going to need at least $1,500 an ounce to sustain this industry in any reasonable form.”
“There’s going to be significant rationalizing in the gold industry,” Holland said. “You can’t keep mines producing if they’re losing money.”
This short story from South Africa was posted on the mineweb.com Internet site yesterday...and it's another offering from Ulrike Marx.


Gold Crashes Through Production Cost Levels

Gold fell to its lowest level since 2010 on Friday to under $1,200, which is what it costs many miners to produce an ounce of gold, and analysts tell CNBC that miners will be "severely" impacted if prices stay here.
Andrew Su, CEO at brokerage Compass Global Markets said the average cost of producing gold in Australia, home to some of the world's biggest gold miners, has jumped from $500 an ounce in 2007 to over $1,000 an ounce this year.
"What I believe is that the official costs, the costs in reality, are significantly higher than $1,000. So we've had quite a few gold mines close in Australia," Su said on Friday.
It's my opinion that gold prices won't be at these levels for long.  This CNBCstory was posted on their website early Friday afternoon...and my thanks go out to G. Roberts for sending it.

LBMA: Volume Of Gold Transferred Climbs To 12-Year High In May

The amount of gold transferred between accounts of London Bullion Market Association members rose sharply in May while the amount of silver transfers declined, the organization reported Friday.
The LBMA releases clearing statistics each month showing the net volume of gold and silver transferred between accounts of members, which essentially provide a snapshot of the trading activity.
Total gold transfers rose by 17.2% to a daily average of 28.2 million ounces, the most in 12 years. Despite continued offloading of gold by exchange-traded funds in the Western economies, strong physical demand for gold on falling prices -- particularly from India and China -- led to a significant increase in demand, the LBMA said, The value of gold ounces transferred increased by 11.2% to a daily average of $39.8 billion, the highest level since August 2011.
This article was posted on the kitco.com Internet site early yesterday morning EDT...and I thank Ulrike Marx for her final offering in today's column.


¤ THE WRAP

We wanted a president who listens to all Americans.  Now we have one. - Jay Leno talking about NSA surveillance
Today's pop 'blast from the past' hit the charts in 1963...and is courtesy of a one-hit wonder group called The Murmaids.  I'd forgotten all about it until I came across it on youtube.com when I was looking for something else.  If you remember this one, you're at least as old as I am.  So turn up your speakers...and then click here.
Today's classical 'blast from the past' dates from 1878.  It's Johannes Brahms' Violin Concerto in D major, Op. 77.  In my opinion, it’s tied with Beethoven's violin concerto as the best violin concerto ever written.
The work was premiered in Leipzig on January 1, 1879 by Joseph Joachim, who insisted on opening the concert with the Beethoven Violin Concerto, written in the same key, and closing with the Brahms. Joachim's decision could be understandable, though Brahms complained that "it was a lot of D major—and not much else on the program." Joachim was not presenting two established works, but one established one and a new, difficult one by a composer who had a reputation for being difficult himself. The two works also share some striking similarities. For instance, Brahms has the violin enter with the timpani after the orchestral introduction: this is a clear homage to Beethoven, whose violin concerto also makes unusual use of the timpani. Brahms himself conducted the premiere.
Here is the wonderfully gifted Dutch violinist Janine Jansen doing the honours with the Deutsche Kammerphilharmonie Bremen. Paavo Järvi conducts.  The recording, both video and audio, are as good as they get...as is the orchestra.  This is a desert island recording for sure.  The work is in four parts...one, two, three and four.
Well, here we are sitting on the launch pad with the Commitment of Traders Report showing the lowest Commercial net short position in gold and silver for a generation.  We did not arrive here by accident...and whatever happens going forward will be talked about as a seminal moment for generations to come as well.
I cannot believe that the world's financial and banking elite have gone to all this trouble...and made themselves as conspicuous as they have...without a major financial and monetary event planned as a follow-up.
It's only the timing...and the event that triggers it...that remains unknown.  When that point arrives...and I doubt very much that it will happen by accident...all that JPMorgan et al have to do is absolutely nothing.  As Ted Butler pointed out, it would be a perfect time for all the major long holders to take a vacation for a couple of weeks and let the markets clear.
But one thing is now a certainty...and that is that JPMorgan et al are now in complete control of the precious metal markets on the long side...at least in gold...and how high we go, and how fast we get there, is entirely up to them.  And as the saying goes...he who has the gold, makes the rules.
As I and others have already stated, this event appears to be imminent.
So, we wait.
Before heading off to bed, here's Nick Laird's weekly "Total PMs Pool" chart updated with this week's data.  The total ounces haven't changed a lot...except for gold...and all that gold that did depart the world's repositories and ETFs now resides in the strongest of hands.
(Click on image to enlarge)
That's it for the day...and the week...and what a week it was.  I await the Sunday night open in New York with more than the usual amount of interest.
See you on Tuesday.


http://harveyorgan.blogspot.com/2013/06/andrew-maguire-physical-gold-leaving.html

Saturday, June 29, 2013

Andrew Maguire: physical gold leaving LBMA equals 580 tonnes in the last 7 days/GLD stops bleeding/SLV increases inventory by 483,000 oz/JPMorgan customer gold account loses another 4800 tonnes/total comex gold declines again/Over 18.3 million oz of silver standing for July

Good morning Ladies and Gentlemen:

Gold closed  up $12.40 to $1223.80 (comex closing time ).  Silver rose by 88 cent to $19.48  (comex closing time)

In the access market at 5:00 pm, gold and silver finished trading at the following prices :

gold: 1235.30
silver:  $19.66


At the Comex, the open interest in silver rose by 954 contracts to 139,178.  


 
The open interest on the entire gold comex contracts rose by 5240 contracts to 399,475 despite  gold's fall in price on Thursday. The number of gold ounces  standing for this June delivery month  rose to 986,900 or 30.70 tonnes. The number of gold ounces standing for July is represented by 18,800 oz.


Tonight, the Comex registered or dealer inventory of gold remains constant as   it rests 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 and this time it rests at  7.498 million oz or 233.2 tonnes of gold.

JPMorgan's customer inventory fell again to 143,212.149 oz or 4.45 tonnes through a withdrawal.  Its dealer inventory remains 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 483,000 oz.

In physical stories, we have a great commentary from James Doran, from the National over in Abu Dhabi on the huge demand coming into Dubai for purchases of gold.

Kingworld news has 3 interviews which are extremely important:

i) Eric Sprott talks about the huge imports of silver into India due to government restriction on gold imports.

ii) Andrew Maguire: talks about 580 tonnes of physical gold leaving LBMA for eastern shores

iii) Andrew Magurie: part ii .  Here Andrew talks about how central banks are treating gold as a currency and trades the cross to keep currencies strong to prevent their economies from imploding.  The problem of course is that gold is leaving western nations and heading east.


On the paper side of things, we have a great commentary form Robin Wigglesworth of the London Financial Times on what we talked about on Thursday, the huge selling of bonds from foreign countries.


We will go these and   many other  stories today, 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 5240 contracts from  394,235 up to 399,475 with gold falling by $18.20 on Thursday.  The front active month of June  contract is now off the board. I pointed out on Thursday that the  final total number of gold ounces standing for gold in June 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 rests at  188 .  The next active delivery month for gold is August and here the OI rose by  6938 contracts from  214,322 down to 221,260. The estimated volume on Friday was astronomical at 290,116 contracts.(remember no rollovers). The confirmed volume on Thursday was also huge at 292,092.  


The total silver Comex OI rose by 954 contracts with silver rising slightly in price yesterday by 1 cent on Thursday.The total of all silver OI stands at 139,178 contracts.  The front non active June silver contract month is off the board served and thus the final total number of silver ounces standing for June is represented by 935,000 oz. The next big delivery month of July now upon us  and here the OI fell by only 2760 contracts down to 3656. On first day notice we seem to have a little higher amount of silver standing that I would have thought. The estimated volume on Friday was good coming in at 78,154 contracts.  The confirmed volume on Thursday was excellent at 88,776.  

 
Comex gold/May contract month:
June 28/2013

 the July opening contract month 


Ounces
Withdrawals from Dealers Inventory in oz
nil
Withdrawals from Customer Inventory in oz
34,146.065 (JPM,HSBC)
Deposits to the Dealer Inventory in oz
nil
Deposits to the Customer Inventory, in oz
 nil
No of oz served (contracts) today
 23 (2300  oz)
No of oz to be served (notices)
165  (16500 oz)
Total monthly oz gold served (contracts) so far this month
23  (2300 oz)
Total accumulative withdrawal of gold from the Dealers inventory this month

Total accumulative withdrawal of gold from the Customer inventory this month


 
34,146.065 oz



We again had good activity at the gold vaults
The dealer again  0 deposits and no  withdrawals.

We  had one   customer deposits today :

i)  Into Brinks:  32.15 oz


total customer deposits:  32.15  oz


It is very strange that in a big delivery month of June, we are witnessing hardly any gold enter the dealer

 we had 2 big   customer withdrawals

i) Out of HSBC: 53,012.88 oz
ii) Out of JPM:  4817.251 oz (as I promised you two days ago)


 total customer withdrawals:  57,830.13  oz


Today we had zero adjustments

Thus tonight we have the following JPMorgan gold inventory:

JPM dealer inventory:  401,877.493 oz   12.50 tonnes
JPM customer inventory:  143,212.149 oz  or 4.45 tonnes  (down 4817.25 oz)


As we reported to you three 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

and today, June 28.2013 we had 4,817.251 oz leave jPMorgan

Today we had 23 notices filed and all of these were issued by JPMorgan on the customer side.


In summary on the customer side of things for JPMorgan:

Thursday we witnessed 900 notices were served upon our longs from the JPMorgan's customer side and 23 notices on Friday/customer side
(and zero from its dealer side both days).

Thus on JPMorgan customer side:


On Thursday I reported that we had from the beginning of June, 2520 contracts or 252,000 oz issued from the customer side of JPM. We now add the 23 notices from Friday to give us 2543 notices or 254,300 oz issued.  If we add the 71,611.00 oz owing from  May issuance, we get  325,911 oz.  If we subtract the actual withdrawal of gold from JPMorgan of 222,662.21 (which includes today's withdrawal customer side 4,817.25),  this still leaves 103,248.79 oz that needs to be settled upon from the vaults of JPMorgan customer side.


The total dealer comex gold remains at its nadir of 1.352 million oz or 42.05 tonnes of gold.

The total of all comex gold, dealer and customer falls again badly  tonight to  7.498 million oz or  233.2 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(dealer account) since first day notice and not yet subtracted out of inventory


You will also recall three 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(on the dealer side), leaving the dealer side  at 401,877.493  oz where it sits tonight.

On the dealer side here are the last 16 trading sessions as to notices issued from JPMorgan's dealer side:


 Friday:  zero
 Monday:  1
 Tuesday:  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
Friday: 0



Thus,  4946 notices have been issued by JPMorgan (dealer side) for the month  of 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 23 notices served upon our longs for 2300  oz of gold (and all issued byJPMorgan customer). In order to calculate what I believe will stand for delivery in July, I take the OI for July (188) and subtract out Friday's notices (23) which leaves us with 165 notices still left to be served upon our longs.

Thus on first day notice we have the following gold ounces standing for metal:

23 contracts served x 100 oz =  2300 oz +  165 contracts left to be served upon x 100 oz  =  18,800 oz or .58 tonnes of gold.
Not to bad for the first day.



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 143,212.149 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 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:



Silver:


June 28/2013:  July silver contract month:

opening stats:

Silver
Ounces
Withdrawals from Dealers Inventorynil
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)479  (2,395,000 oz)
No of oz to be served (notices)3177 (15,885,000 oz)
Total monthly oz silver served (contracts) 479  (2,395,000)
Total accumulative withdrawal of silver from the Dealers inventory this month
Total accumulative withdrawal of silver from the Customer inventory this month401,855.17  oz


Today, we  had good activity  inside the silver vaults.
 we had 0 dealer deposits and 0  dealer withdrawals.


We had 1 customer deposit:

i) Into Brinks:  301,005.57  oz

total customer deposit:  301,005.57


We had 3 customer withdrawals:
i) Out of CNT;  119,363.387  oz
ii) Out of Delaware: 995.000 oz
iii) Out of Scotia:  131,438.73 oz

total customer withdrawal  :  251,797.117 oz

  
we had 2 adjustments  today

i) out of JPMorgan  450,176.20 oz was adjusted out of the dealer and into the customer

ii) Out of CNT:  996,743.59 oz out of the customer and into the dealer.

Registered silver  at :  41.944 million oz
total of all silver:  164.495 million oz.

The CME reported that we had 479 notices filed for 2,395,000 oz on Friday. 
To calculate what will stand for this active delivery month of July, I take the number of contracts served 479 x 5,000 oz per contract = 2,395,000 oz  + 3177 notices left to be served upon our longs x 5000 oz per contract= 18,283,000 oz

Thus on first day notice here are the standings:

  


479 contracts served x 5000 oz per contract (served) = 2,395,000  oz + 3177 notices x 5,000 oz =  15,885,000  =  18,283,000 oz, a little higher than expected.


Now let us check on gold inventories at the GLD first:

June 28.2013:  no change



Tonnes969.50

Ounces31,170,424.23

Value US$37.137,611  billion





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





*  *  * 

And now for our COT report:





Gold COT Report - Futures
Large Speculators
Commercial
Total
Long
Short
Spreading
Long
Short
Long
Short
164,901
130,749
21,858
164,958
200,166
351,717
352,773
Change from Prior Reporting Period
-1,870
7,670
4,051
9,655
748
11,836
12,469
Traders
112
107
71
61
59
212
201


Small Speculators




Long
Short
Open Interest



38,930
37,874
390,647



1,705
1,072
13,541



non reportable positions
Change from the previous reporting period

COT Gold Report - Positions as of
Tuesday, June 25, 2013

Our large speculators:

Those large specs that have been long continued to pitch as they unloaded another 1870 contracts from their long side.

Those large specs that have been short in gold added another monstrous 7670 contracts to their short side.

Our commercials;

Those commercials that have been long in gold added a huge 9645 contracts to their long side
Those commercials that have been short in gold added a tiny 748 contracts to their short side.

Our small specs:

those small specs that have been long in gold added 1705 contracts to their long side
those small specs that have been short in gold continued to add another 1072 contracts to their short side.

Conclusions;  hugely bullish as the commercials went net long by another 8907 contracts.
The difference between the commercial long and short positions have now narrowed such that the commercials are only 35,000 contracts away from being net long.

The large specs are only 35,000 contracts away from being net short.


And now for silver:

Silver COT Report: Futures
Large Speculators
Commercial
Long
Short
Spreading
Long
Short
34,505
33,668
20,224
66,478
70,571
-969
2,098
-6,713
-1,767
-3,626
Traders
53
62
55
46
40
Small Speculators
Open Interest
Total
Long
Short
140,639
Long
Short
19,432
16,176
121,207
124,463
197
-1,011
-9,252
-9,449
-8,241
non reportable positions
Positions as of:
134
128

Tuesday, June 25, 2013
  © SilverSeek.com  

Our large specs:

Those large specs that have been long in silver pitched 965 contracts from their long side
Those large specs that have been short in silver added another 2098 contracts to their short side.

Our commercials:

Those commercials that have been long in silver pitched 1767 contracts from their long side
Those commercials that have been short in silver covered a huge 3626 contracts to their short side.

Our small specs:

Those small specs that have been long in silver added 197 contracts to their long side
Those small specs that have been short in silver covered 1011 contracts to their short side.

Conclusions;  the bankers went net long by 1869 contracts.
The specs are less than 800 contracts from going net short
The commercials are less than 4,000 contracts from going net long.

very bullish!!


*  *  *  

Your big story of the day.  Andrew Maguire our resident expert on the LBMA reported that this week 580 tonnes of physical gold left London for eastern shores.  Andrew has many friends at the LBMA and you can be sure that he is accurate as to what it going on over there:

(courtesy Andrew Maguire/Kingworldnews)

Staggering amount of gold moved east in last week, Maguire says



Submitted by cpowell on 10:22AM ET Friday, June 28, 2013. Section: Daily Dispatches
1:20p ET Friday, June 28, 2013
Dear Friend of GATA and Gold:
A staggering amount of real gold has moved from exchange-traded funds and futures exchanges to Eastern central banks in the last week, London metals trader and silver market rigging whistleblower Andrew Maguire tells King World News today. Western central bank intervention to push prices down in the cash gold market, Maguire says, is hastening the movement of gold eastward. An excerpt from his interview is posted at the King World News blog here:
http://kingworldnews.com/kingworldnews/KW
N_DailyWeb/Entries/2013/6/28_Ma...
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.


The second part of the interview where Magurie states that central banks are treating gold as a currency.  They are thus manipulating the gold/currency crosses to keep these currencies from imploding the finances of countries.  The problem of course is that they drive gold lower and nations such as China and Russia are very eager to purchase gold at these lower levels.

a must read/ Andrew Maguire/Kingworld news 

Fed, BIS rig gold more on FX and OTC markets than Comex, Maguire says

Submitted by cpowell on Sat, 2013-06-29 01:08. Section: 
9p ET Friday, June 28, 2013
Dear Friend of GATA and Gold:
Manipulation of the gold market is accomplished by the Federal Reserve and Bank for International Settlements far more in the foreign exchange and over-the-counter markets than on the New York Commodities Exchange, London metals trader Andrew Maguire tells King World News today. Maguire adds that so much metal now is being removed from the physical market in London by Eastern central banks that all of Western central banking is under threat. An excerpt from the interview is posted at the King World News blog here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.



Note: from the LBMA:  transfers at 28.2 million oz in May. This is 877 tonnes The world produces 183 tonnes of gold per month or 2200 tonnes per year.  Transfers are forwards and physical purchases.

(courtesy LBMA)

The LBMA has announced that that in May
"...strong physical demand particularly from China and India more than offset continued sales by ETF funds in the western economies, with the result that the volume of ounces transferred in May increased significantly by 17.2% to 28.2 million ounces; the highest total for 12 years."
http://www.lbma.org.uk/pages/index.cfm?page_id=51&tit
le=clearing_-_most_recent_figures

end


They are coming by the planeloads to purchase gold inside Dubai

(courtesy James Doran/the National/Abu Dhabi)

Gold rush 2013 style has Dubai scrambling

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."


Mr El Mdaka added that gold is in such short supply in Dubai that he is able to charge a US$3 premium per ounce. "In the last week or so that has gone up from $1.25, $1.50 to $1.75. But now it is $3. We are really squeezed."
Physical gold from Dubai has been selling strongly since the price of the yellow metal first plunged in April. But this week it has taken another historic tumble, creating a buying opportunity for small- time investors looking for gold bars, coins and bullion.
Yesterday the price edged up a little with the spot price rising 0.5 per cent in early trading to $1,232 an ounce. On Wednesday, however, it fell 4 per cent to $1,221.80, the lowest price in three years, capping a 12 per cent decline in the past eight trading sessions.
Some parts of the Dubai market are not so buoyant as those in which Kaloti operates, however.
Gerhard Schubert, the head of precious metals trading at Emirates NBD said that grades of gold known as 995, which would ordinarily be sold into the Indian market, are currently stuck in Dubai.
The Indian government has implemented import restrictions that have been backed up by the All India Gems and Jewellery Trade Federation in an effort to shore up the tumbling rupee.
"A lot of India's gold comes in from Dubai and all of that is stuck here right now," Mr Schubert said.
Mr El Mdaka, who does not sell into the Indian market, agreed. "The squeeze on physical gold in India would have a big effect on Dubai. Luckily though, there is a lot of demand coming from the rest of the world to soak it up," he said.

Looks like the Comex is going to have more competition.  And they will take physical metal out of the system.

(courtesy RT.com)

Moscow exchange launches first precious metals trading

Published time: June 27, 2013 12:49
Russian stock.(AFP Photo / Alexander Nemenov)
Russian stock.(AFP Photo / Alexander Nemenov)
Tags
Commodities, Russian economy
The stock exchange is going to start trading gold and silver by the end of this year, and platinum and palladium in 2014. Trading physical metals is expected to boost liquidity in the market and attract more participants.
Russia has so far only been trading futures on gold and silver, not dealing with real metals.

Gold has been occasionally sold on the over-the-counter market and the only benchmark for price was the Central bank’s quotations, Gazeta.ru reports.  Now gold will get the market price in rubles.

“We are a gold-exporting country. We produce a large number of precious metals. However, the trade volume is still significantly lagging behind our peers. Our commodity market is not transparent," Gazeta.ru quotes the director of the commodity market of the Moscow exchange, Mikhail Orlenko.

Spot metal trading will be based on the platform of the existing foreign exchange market. Credit institutions licensed to conduct operations with precious metals and non-banking professional brokers will be the main players on the market, Gazeta,ru quotes the presentation by the bourse.

The Moscow stock exchange plans to transport precious metals from production companies, keep them in its own stores and deliver to the buyer the next day.

The launch of trading in gold and silver on the Moscow exchange will boost liquidity on the market and attract more participants by these new financial instruments, RBC quotes Sberbank as commenting. 


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