http://harveyorgan.blogspot.com/2013/07/july-11gold-rises-to-128600-and-silver.html
Gold closed up $32.70 to $1280.10 (comex closing time ). Silver is up by 79 cents to $19.94 (comex closing time)
In the access market at 5:00 pm, gold and silver finished trading at the following prices :
gold: $1286.70
At the Comex, the open interest in silver fell by 1149 contracts to 132,702.
Tonight, the Comex registered or dealer inventory of gold remains below 1 million oz to 985,969 oz or 30.66 tonnes. This is getting dangerously low. The total of all gold at the comex (dealer and customer) rises slightly and registers a reading of 7.142 million oz or 222.14 tonnes of gold.
JPMorgan's customer inventory remains constant at 136,380.609 oz or 4.24 tonnes. It's dealer inventory also remains constant at 401,877.493 oz but it still must settle upon contracts issued in the May and June delivery month which far exceeds its inventory.
The total of the 3 major gold bullion dealers( Scotia , HSBC and JPMorgan) in its Comex gold dealer account registers only 26.03 tonnes of gold. The total of all of the dealers remains tonight at 30.66 tonnes!! Brinks continues to record a low of only 4.18 tonnes in its dealer account.
JPMorgan's customer inventory is now at a extremely low 136.38 million oz or 4.24 tonnes of gold.
The GLD reported no loss in inventory tonight with an inventory reading of 939.07 tonnes. The SLV inventory of silver showed a gain of 2.894 million oz in silver inventory. The game will end when the GLD runs out of physical metal.
Today we have physical commentaries from Steve Leeb and James Turk talking with Eric King of Kingworldnews. Bill Holter, discusses the potential for a huge runup in gold due to the massive buying power from (a) the USA commercials who are now net long and the massive short position by our long specs who must cover, with nobody supplying the paper. This is a must read!!. Chris Powell of GATA writes about the many years of gold leasing by central banks for the purpose of raising the value of paper money.
On the paper side of things, we have commentaries from Ambrose Evans Pritchard on the continuing deterioration of southern Europe. We have a Reuters story courtesy of Babington. The author states that Greece maybe has enough money until September before desperation sets in. Sarah MacFarlane of Reuters touches on the continuing problems inside Egypt where today we find out that they have only 2 months worth of imported wheat left. Egypt is the world's largest importer of wheat.
The total gold comex open interest fell by 3659 contracts from 431,574 down to 427,915 with gold rising in price by $1.50 on Wednesday. The large specs are slowly being let to the slaughterhouse. We are now into the the non active July contract and here the OI rests at 114 up 2 contracts . We had 0 delivery notices filed on Wednesday so in essence we gained 2 contracts or an additional 200 oz gold will stand for the July delivery month. The next active delivery month for gold is August and here the OI fell by 10,677 contracts from 197,180 down to 186,503 as we are now 3 weeks away from first day notice for the August contract month. The estimated volume today was good at 222,518 contracts. The confirmed volume yesterday was also good at 216,976.
The total silver Comex OI fell by 1149 contracts with silver rising in price on Wednesday by 3 cents. The total of all comex silver OI stands at 132,702 contracts. We are now into the big delivery month of July and here the OI fell by 182 contracts down to 1075. We had 181 notices filed yesterday so in essence we lost 1 contract or 5,000 oz will not stand. The next big delivery month is September and here the OI fell by 611 contracts down to 79,051. The estimated volume today was good coming in at 54,349 contracts. The confirmed volume yesterday was fair at 39,879.
We had 1 customer deposit today :
i) Into HSBC; 46,263.932 oz
total customer deposits: 46,263.932 oz
we had 0 customer withdrawals
Total Customer withdrawals: nil oz
Today we had 0 adjustments
Thus tonight we have the following JPMorgan gold inventory which remains constant: (same as Wednesday's level)
JPM dealer inventory: 401,877.493 oz 12.50 tonnes
JPM customer inventory: 136,380.609 oz or 4.24 tonnes
As we reported to you 5 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 on, June 28.2013 we had 4,817.251 oz leave jPMorgan customer account
and on Friday July 5.2013: we had 6,831.54 oz leave jPMorgan customer account
Summary for the last week of issuance from JPMorgan:
On Friday, June 28th we had 23 notices filed and all of these were issued by JPMorgan on the customer side.
Tuesday we had 24 contracts were issued and all from the dealer or house account.
Thursday, 20 contracts were issued and all from JPMorgan's dealer or house account.
Friday,we had 10 contracts were issued and all from JPMorgan's dealer or house account.
In summary on the customer side of things for JPMorgan:
On Friday, the 28th of June, I reported that we had from the beginning of June, 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 229,493.75 (which includes last Friday's withdrawal customer side 6,831.54), this still leaves 96,417.25 oz that needs to be settled upon from the vaults of JPMorgan customer side.
The total dealer comex gold remains constant tonight below 1 million oz at 985,969 oz or 30.66 tonnes of gold.The total of all comex gold, dealer and customer rises slightly again tonight to 7.142 million oz or 222.14 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.
Tuesday, July 2: 24 contracts (notices) were issued by JPMorgan's dealer or house account.
Wednesday: July 3: 20 contracts were issued by JPMorgan's dealer or house account.
Friday: July 5: 10 contracts were issued byJPMorgan's dealer our house account.
You will also recall 4 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 24 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 remains at 26.03 tonnes tonight
i) Scotia: 199,044,026 oz or 6.19 tonnes (prev 7.204 tonnes)
ii) HSBC: 236,168.152 oz or 7.34 tonnes
iii) JPMorgan: 401,877.493 oz or 12.50 tonnes
total: 26.03 tonnes
Brinks dealer account which did have the lions share of the dealer gold remains tonight at 134,524.79 oz or 4.18 tonnes (last Friday they had over 13 tonnes and today only 4.18 tonnes!!)
Today we had 1 notice served upon our longs for 100 oz of gold(and none were issued by JPMorgan from neither their dealer nor customer account). In order to calculate what I believe will stand for delivery in July, I take the total number of notices (81) x 100 oz per contract to give us 8100 oz served + I take the OI remaining for July (114) and subtract out today's notices (1) which leaves us with 113 notices still left to be served upon our longs.
Thus we have the following gold ounces standing for metal:
80 contracts served x 100 oz = 8,000 oz, + 113 contracts left to be served upon x 100 oz = 11,300 oz to give us 19,400 oz or .6030 tonnes of gold. We gained 200 additional gold ounces standing for July.
Ladies and Gentlemen: we have a three-fold problem:
i) the total dealer inventory of gold remains at a very dangerously low level of only 30.66 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 136,380.609 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 98,122.51 oz of deficient gold.
iii) the 3 major bullion banks have collectively only 26.03 tonnes of gold left in their dealer account.
i) Out of scotia; 681,125.509 oz
total customer withdrawal : 681,125.509 oz
Now let us check on gold inventories at the GLD first:
July 11.2013: we lost no gold today
July 10.2013: we lost .68 tonnes of gold today
July 9.2013: we lost another huge 7.21 tonnes of gold
Total Gold In Trust
Thursday, July 11, 2013
july 11/Gold rises to $1286.00 and Silver to $19.15
Good evening Ladies and Gentlemen:
Gold closed up $32.70 to $1280.10 (comex closing time ). Silver is up by 79 cents to $19.94 (comex closing time)
In the access market at 5:00 pm, gold and silver finished trading at the following prices :
gold: $1286.70
silver: $20.15
It looks to me that the August delivery month for gold will be exciting to watch with the simple reason that only 30 tonnes remain at all dealers. We still are patiently waiting for the gold issuance paper from JPMorgan to be settled upon with gold leaving JPM.
It looks to me that the August delivery month for gold will be exciting to watch with the simple reason that only 30 tonnes remain at all dealers. We still are patiently waiting for the gold issuance paper from JPMorgan to be settled upon with gold leaving JPM.
At the Comex, the open interest in silver fell by 1149 contracts to 132,702.
The open interest on the entire gold comex contracts fell by 3,659 contracts to 427,915 with gold's rise in price by $1.50 on Wednesday. However all of the action in gold came at 5 pm est last night, when Bernanke spoke and confusion reigned supreme. Most observers believed that the Fed will QE for quite some time. As many of you know, I believe that they cannot ever taper as there is nobody on the planet that will buy the Fed's 1 trillion dollars of budgetary deficit in support of USA government spending.
Tonight, the Comex registered or dealer inventory of gold remains below 1 million oz to 985,969 oz or 30.66 tonnes. This is getting dangerously low. The total of all gold at the comex (dealer and customer) rises slightly and registers a reading of 7.142 million oz or 222.14 tonnes of gold.
JPMorgan's customer inventory remains constant at 136,380.609 oz or 4.24 tonnes. It's dealer inventory also remains constant at 401,877.493 oz but it still must settle upon contracts issued in the May and June delivery month which far exceeds its inventory.
The total of the 3 major gold bullion dealers( Scotia , HSBC and JPMorgan) in its Comex gold dealer account registers only 26.03 tonnes of gold. The total of all of the dealers remains tonight at 30.66 tonnes!! Brinks continues to record a low of only 4.18 tonnes in its dealer account.
JPMorgan's customer inventory is now at a extremely low 136.38 million oz or 4.24 tonnes of gold.
The GLD reported no loss in inventory tonight with an inventory reading of 939.07 tonnes. The SLV inventory of silver showed a gain of 2.894 million oz in silver inventory. The game will end when the GLD runs out of physical metal.
On the paper side of things, we have commentaries from Ambrose Evans Pritchard on the continuing deterioration of southern Europe. We have a Reuters story courtesy of Babington. The author states that Greece maybe has enough money until September before desperation sets in. Sarah MacFarlane of Reuters touches on the continuing problems inside Egypt where today we find out that they have only 2 months worth of imported wheat left. Egypt is the world's largest importer of wheat.
We will go over 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 fell by 3659 contracts from 431,574 down to 427,915 with gold rising in price by $1.50 on Wednesday. The large specs are slowly being let to the slaughterhouse. We are now into the the non active July contract and here the OI rests at 114 up 2 contracts . We had 0 delivery notices filed on Wednesday so in essence we gained 2 contracts or an additional 200 oz gold will stand for the July delivery month. The next active delivery month for gold is August and here the OI fell by 10,677 contracts from 197,180 down to 186,503 as we are now 3 weeks away from first day notice for the August contract month. The estimated volume today was good at 222,518 contracts. The confirmed volume yesterday was also good at 216,976.
The total silver Comex OI fell by 1149 contracts with silver rising in price on Wednesday by 3 cents. The total of all comex silver OI stands at 132,702 contracts. We are now into the big delivery month of July and here the OI fell by 182 contracts down to 1075. We had 181 notices filed yesterday so in essence we lost 1 contract or 5,000 oz will not stand. The next big delivery month is September and here the OI fell by 611 contracts down to 79,051. The estimated volume today was good coming in at 54,349 contracts. The confirmed volume yesterday was fair at 39,879.
Comex gold/May contract month:
July 11/2013
the July contract month
the July contract month
Ounces
| |
Withdrawals from Dealers Inventory in oz
|
nil
|
Withdrawals from Customer Inventory in oz
|
nil
|
Deposits to the Dealer Inventory in oz
|
nil
|
Deposits to the Customer Inventory, in oz
| 46,263.932 (, HSBC,) |
No of oz served (contracts) today
|
1 ( 100 oz)
|
No of oz to be served (notices)
|
113 (11,300 oz)
|
Total monthly oz gold served (contracts) so far this month
|
81 (8,100 oz)
|
Total accumulative withdrawal of gold from the Dealers inventory this month
|
329,994.08 oz
|
Total accumulative withdrawal of gold from the Customer inventory this month
| 285,319.02 oz |
We had tiny activity at the gold vaults
The dealer had 0 deposits and no dealer withdrawal
We had 1 customer deposit today :
i) Into HSBC; 46,263.932 oz
total customer deposits: 46,263.932 oz
we had 0 customer withdrawals
Total Customer withdrawals: nil oz
Today we had 0 adjustments
Thus tonight we have the following JPMorgan gold inventory which remains constant: (same as Wednesday's level)
JPM dealer inventory: 401,877.493 oz 12.50 tonnes
JPM customer inventory: 136,380.609 oz or 4.24 tonnes
As we reported to you 5 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 on, June 28.2013 we had 4,817.251 oz leave jPMorgan customer account
and on Friday July 5.2013: we had 6,831.54 oz leave jPMorgan customer account
Summary for the last week of issuance from JPMorgan:
On Friday, June 28th we had 23 notices filed and all of these were issued by JPMorgan on the customer side.
Tuesday we had 24 contracts were issued and all from the dealer or house account.
Thursday, 20 contracts were issued and all from JPMorgan's dealer or house account.
Friday,we had 10 contracts were issued and all from JPMorgan's dealer or house account.
In summary on the customer side of things for JPMorgan:
On Friday, the 28th of June, I reported that we had from the beginning of June, 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 229,493.75 (which includes last Friday's withdrawal customer side 6,831.54), this still leaves 96,417.25 oz that needs to be settled upon from the vaults of JPMorgan customer side.
The total dealer comex gold remains constant tonight below 1 million oz at 985,969 oz or 30.66 tonnes of gold.The total of all comex gold, dealer and customer rises slightly again tonight to 7.142 million oz or 222.14 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.
Tuesday, July 2: 24 contracts (notices) were issued by JPMorgan's dealer or house account.
Wednesday: July 3: 20 contracts were issued by JPMorgan's dealer or house account.
Friday: July 5: 10 contracts were issued byJPMorgan's dealer our house account.
You will also recall 4 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 24 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
Friday: 0
Monday: 0
Tuesday: 24
Wednesday: 20
Thursday/Friday: 10
Monday: 0
Tuesday: 0
Wednesday:0
Thursday: 0
Thus, 5000 notices have been issued by JPMorgan (dealer side) for the month of June and the beginning of July for 500,000 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 98,122.51 oz (401,877.493 inventory - 500,000 oz issued = -98,122.51 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 98,122.51 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
Friday: 0
Monday: 0
Tuesday: 24
Wednesday: 20
Thursday/Friday: 10
Monday: 0
Tuesday: 0
Wednesday:0
Thursday: 0
Thus, 5000 notices have been issued by JPMorgan (dealer side) for the month of June and the beginning of July for 500,000 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 98,122.51 oz (401,877.493 inventory - 500,000 oz issued = -98,122.51 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 98,122.51 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 remains at 26.03 tonnes tonight
i) Scotia: 199,044,026 oz or 6.19 tonnes (prev 7.204 tonnes)
ii) HSBC: 236,168.152 oz or 7.34 tonnes
iii) JPMorgan: 401,877.493 oz or 12.50 tonnes
total: 26.03 tonnes
Brinks dealer account which did have the lions share of the dealer gold remains tonight at 134,524.79 oz or 4.18 tonnes (last Friday they had over 13 tonnes and today only 4.18 tonnes!!)
Today we had 1 notice served upon our longs for 100 oz of gold(and none were issued by JPMorgan from neither their dealer nor customer account). In order to calculate what I believe will stand for delivery in July, I take the total number of notices (81) x 100 oz per contract to give us 8100 oz served + I take the OI remaining for July (114) and subtract out today's notices (1) which leaves us with 113 notices still left to be served upon our longs.
Thus we have the following gold ounces standing for metal:
80 contracts served x 100 oz = 8,000 oz, + 113 contracts left to be served upon x 100 oz = 11,300 oz to give us 19,400 oz or .6030 tonnes of gold. We gained 200 additional gold ounces standing for July.
Ladies and Gentlemen: we have a three-fold problem:
i) the total dealer inventory of gold remains at a very dangerously low level of only 30.66 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 136,380.609 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 98,122.51 oz of deficient gold.
iii) the 3 major bullion banks have collectively only 26.03 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:
July 11/2013: July silver contract month:
July contract month
July contract month
| Silver |
Ounces
|
| Withdrawals from Dealers Inventory | nil |
| Withdrawals from Customer Inventory | 681,125.509 oz (Scotia,) |
| Deposits to the Dealer Inventory | nil |
| Deposits to the Customer Inventory | 1,526,159.839 (CNT,HSBC) |
| No of oz served (contracts) | 116 (580,000 oz) |
| No of oz to be served (notices) | 959 (4,795,000 oz) |
| Total monthly oz silver served (contracts) | 2336 (11,680,000) |
| Total accumulative withdrawal of silver from the Dealers inventory this month | 143,024.57 |
| Total accumulative withdrawal of silver from the Customer inventory this month | 1,621,374.0 oz |
Today, we had good activity inside the silver vaults.
we had 0 dealer deposits and 0 dealer withdrawals.
We had 2 customer deposits:
i) Into CNT: 1,100,673.94 oz
ii) Into HSBC: 425,485.899 oz
total customer deposit: 1,526,159.839 oz
We had 1 customer withdrawals:
We had 2 customer deposits:
i) Into CNT: 1,100,673.94 oz
ii) Into HSBC: 425,485.899 oz
total customer deposit: 1,526,159.839 oz
We had 1 customer withdrawals:
i) Out of scotia; 681,125.509 oz
total customer withdrawal : 681,125.509 oz
we had 3 adjustments today
i) Out of Brinks: 25,687.23 oz was adjusted out of the dealer and this landed into the customer account of Brinks
ii) Out of JPM: 5,058.60 oz was adjusted out of the dealer and back into the customer account of JPM.
iii) Out of CNT: 364,449.10 oz was adjusted out of the customer and into the dealer account of CNT
Thus we have the following:
i) Out of Brinks: 25,687.23 oz was adjusted out of the dealer and this landed into the customer account of Brinks
ii) Out of JPM: 5,058.60 oz was adjusted out of the dealer and back into the customer account of JPM.
iii) Out of CNT: 364,449.10 oz was adjusted out of the customer and into the dealer account of CNT
Thus we have the following:
Registered silver at : 46.651 million oz
total of all silver: 165.956 million oz.
The CME reported that we had 116 notices filed for 580,000 oz today.
To calculate what will stand for this active delivery month of July, I take the number of contracts served thus far this month at 2336 x 5,000 oz per contract = 11,680,000 oz + 959 notices left to be served upon our longs x 5000 oz per contract = 4,795,000 oz to give us a total of 16,475,000 oz
we lost 1 contracts or 5,000 oz of silver oz will not stand this month.
we lost 1 contracts or 5,000 oz of silver oz will not stand this month.
Thus here are the standings:
2336 contracts served x 5000 oz per contract (served) or 11,680,000 oz + 959 notices x 5,000 oz or 4,795,000 oz = 16,475,000 oz
end
The two ETF's that I follow are the GLD and SLV. You must be very careful in trading these vehicles as these funds do not have any beneficial gold or silver behind them. They probably have only paper claims and when the dust settles, on a collapse, there will be countless class action lawsuits trying to recover your lost investment.
There is now evidence that the GLD and SLV are paper settling on the comex.
Now let us check on gold inventories at the GLD first:
July 11.2013: we lost no gold today
Tonnes939.07
Ounces30,192,195.27
Value US$38.789 billion
July 10.2013: we lost .68 tonnes of gold today
Tonnes939.07
Ounces30,192,195.27
Value US$37.913 billion
July 9.2013: we lost another huge 7.21 tonnes of gold
Total Gold In Trust
Tonnes
July 8.2013: (we lost an astronomical 15.03 tonnes of gold)
* * *
939.75
Ounces30,213,793.99
Value US$37.911 billion
July 8.2013: (we lost an astronomical 15.03 tonnes of gold)
Tonnes946.96
Ounces30,445,700.80
Value US$37.586 billion
* * *
Selected news and views.....
Gold leasing is a fraud because central banks haven't wanted their metal back
Submitted by cpowell on Thu, 2013-07-11 19:06. Section: Daily Dispatches
3:21p ET Thursday, July 11, 2013
Dear Friend of GATA and Gold:
Gold leasing is a fraud and conspiracy, Jeff Nielson of Bullion Bulls Canada writes today, since central banks that lend gold know that it eventually will be sold into the market to diminish the value of the asset, which isn't really their own but something they hold in trust for their nations:
But the bigger fraud here is on the gold and currency markets. For while gold is an asset of central banks, its value is the reciprocal of assets far more important to them -- their currencies and government bonds.
When they have lent gold in recent decades, Western central banks have not really wanted it back; rather they have wanted the gold price suppressed or controlled and the value of their currencies and bonds thereby supported.
That is probably why, throughout the last decade, the gold price rose steadily even as practically every week brought announcements of gold sales by Western central banks or the International Monetary Fund. No new gold was hitting the market in these "sales." Rather, most likely the "sales" were just cash settlement cancellation of leases for gold that had hit the market many years before and could not be recalled without spiking the market upward too fast for the comfort of the market riggers.
That is also probably why Barrick Gold claimed to be the agent of central banks when it borrowed and sold their gold to finance its operations --
-- and why Barrick often boasted that its central bank gold loans not only had 15-year terms but were renewed every year so they became "evergreen," or perpetual, as was explained in this Barrick financial report from 2006:
That is, Western central banks have mobilized their gold surreptitiously as part of a comprehensive scheme of rigging the currency markets, as they acknowledged in a secret report prepared by the staff of the International Monetary Fund in 1999:
Your secretary/treasurer has long suspected that the current era of gold price suppression would end the way the last era ended, the era of the London Gold Pool --
-- when the gold reserves of the participating central banks were depleted to whatever was considered the critical point. Gold sales and leasing would stop, gold would be more or less officially revalued much higher, and the central banks that had lost their metal through sales and leasing would buy it back at the higher price and begin the next era of price suppression.
When will this happen? Of course the Western central banks won't be letting GATA know in advance, but the recent startling repositioning of their agents in the gold market --
-- indicates that those agents have been told and that the new era is drawing near.
Happy as the change of eras may be for gold investors, central banking won't be any less totalitarian. It will continue to strive to control surreptitiously the value of all capital, labor, goods, and services in the world -- strive to control the whole world -- and thus it will still have to be fought. But at least it will look better with a bloody nose.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Here we go.
Chairman Bernocchio spoke yesterday and said what we knew all along...MORE QE, MORE printing and "we were just kidding about tapering" because the economy just isn't that strong. Really? What was your first clue? The Fed has become a laughing stock of the world as different governors are trotted out who contradict each other on a daily basis. Tapering, no tapering, beginning this year, not beginning until at least 2015 blah blah blah. They have already lost control of the markets that they so dearly want locked down. Volatility has exploded and will go terminal.
It looks like the "plan" to extricate the U.S. banks from their poisonous short positions in Gold futures was a winner. U.S. banks have gone from 106,000 net short contracts to 45,000 net long. This "long" position was created by duping the "specs" into going short a record
[5]
Source: CFTC CEI Gold Non-Commercial Short Contracts/Combined, CMXOGNCS
130,000 gross shorts. Look at this chart for a moment, the last 3-4 months is when the spike in "paper shorts" took place. They were selling Gold that they do not (nor ever will) have. Now as my title implies "here we go"...because these positions represent locked in and guaranteed buying to cover. THIS is not "potential" buying power, no, this IS buying power. Yes I know, it is only in the "paper markets" but now the physical market will no longer have the headwind of manipulation to fight, the "manipulation" will be the first tailwind the Gold market has had in over 15 years!
Of course this "tailwind" from the paper short covering positions will coincide with the physical demand that it created in the first place. The backwardation in London is now in day 4, the previous two occasions, 1999 (Washington Agreement) and 2008 (Lehman systemic flush) only lasted 2 days each time. I mention this because back in 1999 and 2008 there WAS "official" metal that was still available to "release" into the marketplace, I suspect that this is no longer true. I believe this is no longer true because the banks have switched from short to long because they "somehow" know or were "told" that the bottom of the barrel was within sight.
I do also want to mention that with the physical shortages that now exist, owners of far out futures will be induced into selling those futures and moving up to the current spot month or even the cash market itself. Fear of not receiving delivery will inspire this action which will be self feeding and fulfilling. Nothing creates a shortage better than a shortage. I know, it sounds funny but when you are told that you may not or can not have something...you want it all the more...AND you want it now! I suspect the that the current backwardation will not be a short term event and the negative basis has much further to go before this is all over.
It took 3 months for Gold and Silver to be "collapsed" so that the banks could reposition themselves, as I mentioned this happened with, and created more, HUGE global physical demand. Now, we will see not only physical demand but also paper demand which will compete with each other. I will be shocked if it takes more than 3 months to recoup all...and then some... It looks to me like the "tapering talk" was merely a Trojan horse used to help the banks extricate themselves from their shorts, it worked !
No matter what Bernocchio Ben has to say in his waning months as Fed Chairman, please understand that interest rates have already risen nearly 80% from their lows and oil is now $15 per barrel higher than they were 6 months ago. These will act as headwinds or taxes to the real economy, the Fed MUST continue to print, they MUST continue to purchase Treasury bonds and they MUST continue at full speed debauching the currency. ALL of this is good for Gold and Silver, only now the banks will make money when Gold and Silver increase in price. Nothing has changed. The fundamentals that were "in place" 3 months ago are still there, the only thing that has changed is that the banks are now, finally after more than 15 years...LONG and will benefit from higher prices !
It had to happen sooner or later, the "bottom of the physical barrel" had to be reached. It looks like this has finally happened. But, lo and behold the banks will benefit...what are the odds of this happening? The "markup" phase that I have spoken of so often is now fueled and ready on the launch pad, Ben just pushed the button. The price movement will shock many (most) and the amount of time for this to happen will be contracted...to allow as few as possible either in or back in. Get ready because " Here we go " !
Regards, Bill H.
Dave Kranzler of the GoldenTruth comments on the 4th day in a row for negative GOFO:
(courtesy Dave Kranzler/theGoldenTruth)
4th day in a row of negative GOF
Although the negative rates are only 1-3mos. Yesterday was out 6 mos. But, I believe 4 days in a row is unprecedented. Yesterday's 3 days in a row may be unprecedented. Not including yesterday, in which there was a small deposit of gold into GLD, over 28 tonnes had been removed from GLD in the past 7 days. That's what's being used to alleviate the GOFO negative rates. In the past 3 instances in the last 14 years, it only took 1-2 days to alleviate the stress.
It tells us just how short the market it is. It also confirms my thinking over 8 years ago that GLD would eventually be used as a source of gold for the bullion banks to cover extreme short positions. Little did I ever suspect that the hedge funds would squeezed like that. This chart shows you how desperate the situation is:
Source: CFTC CEI Gold Non-Commercial Short Contracts/Combined, CMXOGNCS
***
Got gold? This is how tight the market is:
Last week I got an email from a guy in Chicago who runs a bullion fund. He had ordered 40 maple leafs from Tulving a week earlier. After a week he called to find out where they were and they told him two more weeks.
My business partner just got a call from a friend who bought maple leafs from Tulving. He was told they would be delivered by last week. He called today and was told they would come next week.
There is a shortage of bullion coming from the mints. This is part of the reason the GOFO has been negative an unprecedented four days in a row. As events continue to unfold, bullion is going to become more scarce.
In fact, think about it. THE biggest untold story of 2013 so far is the fact that - between all gold ETFs and the Comex - close to a 1000 tonnes of gold bars have disappeared from sight. Just think about that for a moment. Where did it go? Who wanted it and why?
I have a feeling that when the catalyst for this "disintermediation" of gold from the system becomes apparent, it will not be pleasant.
http://jessescrossroadscafe.blogspot.com/
11 JULY 2013
Gold Daily and Silver Weekly Charts - Curiouser and Curiouser
As you know I reported last night that there was a huge weekly drain of gold from the Brinks vaults.
This follows on a similar drain from JP Morgan's COMEX registered vaults.
There is no increase reported in any of the other COMEX vaults.
The metal bears have three weeks before the first delivery notice day in the August Gold contract.
I believe gold lease rates were negative for a fourth day, which is quite unusual.
As a point of interest, I have included a snapshot of the Café visitors map this afternoon. I think you can see this for yourself in real time by clicking on the map to the left. The clientele changes with the passing of day into night.
This is pretty much all the information that I can see as well, just some simple headcounts with basic locations. There is no need for any more, and it is certainly not worth the trouble or expense of gathering it. The numbers are not large in comparison to many internet sites, but I like to think of the regulars as being rather special, each in their own way.
The participation from around the world is remarkable, and heartening. Asia and the western Pacific will be coming along in a few hours.
The Café is always open, and we keep a light on for you.
Have a pleasant evening.
11 JULY 2013
CME Reports That Brinks Has a Seventy Percent Decline in Registered Gold Bullion Supply
Nick Laird of Sharelynx.com informs me that Brinks is 'now being depleted' of private gold holdings.
I am following up to make sure that there has not been an error in reporting. The CME reports these figures one day in arrears, on a weekly basis, so the chart below is dated July 9.
I have extended the calendar axis a bit to show the nearly vertical drop in inventory of registered bullion.
In referring to the registered supply at Brinks, Nick notes that:
"Brinks is now being depleted. They have gone from 447,199 on July 3rd to 134,525 on July 9th which is a drop of 312,674 oz."
If this is correct, then this is a decline of 70 percent in the gold held in private accounts at Brinks in just one week.
If this is data is correct, it would not be too much of a stretch to say that this has the appearance of 'a run on the bank.' Again, I will wait to see if the CME issues a correction for this. It seems almost incredible.
Where is the gold going? It was not transferred from the registered to eligible category, and does not seem to have been transferred to any other COMEX vault. I suspect it is flowing East. And perhaps it is being taken to replace gold that has been rehypothecated from custodial vaults somewhere.
Someone seems to know something. Rather odd things are happening.
One looks at this and wonders, what next?
Submitted by cpowell on Thu, 2013-07-11 19:06. Section: Daily Dispatches
3:21p ET Thursday, July 11, 2013
Dear Friend of GATA and Gold:
Gold leasing is a fraud and conspiracy, Jeff Nielson of Bullion Bulls Canada writes today, since central banks that lend gold know that it eventually will be sold into the market to diminish the value of the asset, which isn't really their own but something they hold in trust for their nations:
But the bigger fraud here is on the gold and currency markets. For while gold is an asset of central banks, its value is the reciprocal of assets far more important to them -- their currencies and government bonds.
When they have lent gold in recent decades, Western central banks have not really wanted it back; rather they have wanted the gold price suppressed or controlled and the value of their currencies and bonds thereby supported.
That is probably why, throughout the last decade, the gold price rose steadily even as practically every week brought announcements of gold sales by Western central banks or the International Monetary Fund. No new gold was hitting the market in these "sales." Rather, most likely the "sales" were just cash settlement cancellation of leases for gold that had hit the market many years before and could not be recalled without spiking the market upward too fast for the comfort of the market riggers.
That is also probably why Barrick Gold claimed to be the agent of central banks when it borrowed and sold their gold to finance its operations --
-- and why Barrick often boasted that its central bank gold loans not only had 15-year terms but were renewed every year so they became "evergreen," or perpetual, as was explained in this Barrick financial report from 2006:
That is, Western central banks have mobilized their gold surreptitiously as part of a comprehensive scheme of rigging the currency markets, as they acknowledged in a secret report prepared by the staff of the International Monetary Fund in 1999:
Your secretary/treasurer has long suspected that the current era of gold price suppression would end the way the last era ended, the era of the London Gold Pool --
-- when the gold reserves of the participating central banks were depleted to whatever was considered the critical point. Gold sales and leasing would stop, gold would be more or less officially revalued much higher, and the central banks that had lost their metal through sales and leasing would buy it back at the higher price and begin the next era of price suppression.
When will this happen? Of course the Western central banks won't be letting GATA know in advance, but the recent startling repositioning of their agents in the gold market --
-- indicates that those agents have been told and that the new era is drawing near.
Happy as the change of eras may be for gold investors, central banking won't be any less totalitarian. It will continue to strive to control surreptitiously the value of all capital, labor, goods, and services in the world -- strive to control the whole world -- and thus it will still have to be fought. But at least it will look better with a bloody nose.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
Here we go.
Chairman Bernocchio spoke yesterday and said what we knew all along...MORE QE, MORE printing and "we were just kidding about tapering" because the economy just isn't that strong. Really? What was your first clue? The Fed has become a laughing stock of the world as different governors are trotted out who contradict each other on a daily basis. Tapering, no tapering, beginning this year, not beginning until at least 2015 blah blah blah. They have already lost control of the markets that they so dearly want locked down. Volatility has exploded and will go terminal.
It looks like the "plan" to extricate the U.S. banks from their poisonous short positions in Gold futures was a winner. U.S. banks have gone from 106,000 net short contracts to 45,000 net long. This "long" position was created by duping the "specs" into going short a record
[5]
Source: CFTC CEI Gold Non-Commercial Short Contracts/Combined, CMXOGNCS
130,000 gross shorts. Look at this chart for a moment, the last 3-4 months is when the spike in "paper shorts" took place. They were selling Gold that they do not (nor ever will) have. Now as my title implies "here we go"...because these positions represent locked in and guaranteed buying to cover. THIS is not "potential" buying power, no, this IS buying power. Yes I know, it is only in the "paper markets" but now the physical market will no longer have the headwind of manipulation to fight, the "manipulation" will be the first tailwind the Gold market has had in over 15 years!
Of course this "tailwind" from the paper short covering positions will coincide with the physical demand that it created in the first place. The backwardation in London is now in day 4, the previous two occasions, 1999 (Washington Agreement) and 2008 (Lehman systemic flush) only lasted 2 days each time. I mention this because back in 1999 and 2008 there WAS "official" metal that was still available to "release" into the marketplace, I suspect that this is no longer true. I believe this is no longer true because the banks have switched from short to long because they "somehow" know or were "told" that the bottom of the barrel was within sight.
I do also want to mention that with the physical shortages that now exist, owners of far out futures will be induced into selling those futures and moving up to the current spot month or even the cash market itself. Fear of not receiving delivery will inspire this action which will be self feeding and fulfilling. Nothing creates a shortage better than a shortage. I know, it sounds funny but when you are told that you may not or can not have something...you want it all the more...AND you want it now! I suspect the that the current backwardation will not be a short term event and the negative basis has much further to go before this is all over.
It took 3 months for Gold and Silver to be "collapsed" so that the banks could reposition themselves, as I mentioned this happened with, and created more, HUGE global physical demand. Now, we will see not only physical demand but also paper demand which will compete with each other. I will be shocked if it takes more than 3 months to recoup all...and then some... It looks to me like the "tapering talk" was merely a Trojan horse used to help the banks extricate themselves from their shorts, it worked !
No matter what Bernocchio Ben has to say in his waning months as Fed Chairman, please understand that interest rates have already risen nearly 80% from their lows and oil is now $15 per barrel higher than they were 6 months ago. These will act as headwinds or taxes to the real economy, the Fed MUST continue to print, they MUST continue to purchase Treasury bonds and they MUST continue at full speed debauching the currency. ALL of this is good for Gold and Silver, only now the banks will make money when Gold and Silver increase in price. Nothing has changed. The fundamentals that were "in place" 3 months ago are still there, the only thing that has changed is that the banks are now, finally after more than 15 years...LONG and will benefit from higher prices !
It had to happen sooner or later, the "bottom of the physical barrel" had to be reached. It looks like this has finally happened. But, lo and behold the banks will benefit...what are the odds of this happening? The "markup" phase that I have spoken of so often is now fueled and ready on the launch pad, Ben just pushed the button. The price movement will shock many (most) and the amount of time for this to happen will be contracted...to allow as few as possible either in or back in. Get ready because " Here we go " !
Regards, Bill H.
Dave Kranzler of the GoldenTruth comments on the 4th day in a row for negative GOFO:
(courtesy Dave Kranzler/theGoldenTruth)
4th day in a row of negative GOF
Although the negative rates are only 1-3mos. Yesterday was out 6 mos. But, I believe 4 days in a row is unprecedented. Yesterday's 3 days in a row may be unprecedented. Not including yesterday, in which there was a small deposit of gold into GLD, over 28 tonnes had been removed from GLD in the past 7 days. That's what's being used to alleviate the GOFO negative rates. In the past 3 instances in the last 14 years, it only took 1-2 days to alleviate the stress.
It tells us just how short the market it is. It also confirms my thinking over 8 years ago that GLD would eventually be used as a source of gold for the bullion banks to cover extreme short positions. Little did I ever suspect that the hedge funds would squeezed like that. This chart shows you how desperate the situation is:
Source: CFTC CEI Gold Non-Commercial Short Contracts/Combined, CMXOGNCS
***
Got gold? This is how tight the market is:
Last week I got an email from a guy in Chicago who runs a bullion fund. He had ordered 40 maple leafs from Tulving a week earlier. After a week he called to find out where they were and they told him two more weeks.
My business partner just got a call from a friend who bought maple leafs from Tulving. He was told they would be delivered by last week. He called today and was told they would come next week.
There is a shortage of bullion coming from the mints. This is part of the reason the GOFO has been negative an unprecedented four days in a row. As events continue to unfold, bullion is going to become more scarce.
In fact, think about it. THE biggest untold story of 2013 so far is the fact that - between all gold ETFs and the Comex - close to a 1000 tonnes of gold bars have disappeared from sight. Just think about that for a moment. Where did it go? Who wanted it and why?
I have a feeling that when the catalyst for this "disintermediation" of gold from the system becomes apparent, it will not be pleasant.
http://jessescrossroadscafe.blogspot.com/
11 JULY 2013
Gold Daily and Silver Weekly Charts - Curiouser and Curiouser
As you know I reported last night that there was a huge weekly drain of gold from the Brinks vaults.
This follows on a similar drain from JP Morgan's COMEX registered vaults.
There is no increase reported in any of the other COMEX vaults.
The metal bears have three weeks before the first delivery notice day in the August Gold contract.
I believe gold lease rates were negative for a fourth day, which is quite unusual.
As a point of interest, I have included a snapshot of the Café visitors map this afternoon. I think you can see this for yourself in real time by clicking on the map to the left. The clientele changes with the passing of day into night.
This is pretty much all the information that I can see as well, just some simple headcounts with basic locations. There is no need for any more, and it is certainly not worth the trouble or expense of gathering it. The numbers are not large in comparison to many internet sites, but I like to think of the regulars as being rather special, each in their own way.
The participation from around the world is remarkable, and heartening. Asia and the western Pacific will be coming along in a few hours.
The Café is always open, and we keep a light on for you.
Have a pleasant evening.
11 JULY 2013
CME Reports That Brinks Has a Seventy Percent Decline in Registered Gold Bullion Supply
Nick Laird of Sharelynx.com informs me that Brinks is 'now being depleted' of private gold holdings.
I am following up to make sure that there has not been an error in reporting. The CME reports these figures one day in arrears, on a weekly basis, so the chart below is dated July 9.
I have extended the calendar axis a bit to show the nearly vertical drop in inventory of registered bullion.
In referring to the registered supply at Brinks, Nick notes that:
"Brinks is now being depleted. They have gone from 447,199 on July 3rd to 134,525 on July 9th which is a drop of 312,674 oz."
If this is correct, then this is a decline of 70 percent in the gold held in private accounts at Brinks in just one week.
If this is data is correct, it would not be too much of a stretch to say that this has the appearance of 'a run on the bank.' Again, I will wait to see if the CME issues a correction for this. It seems almost incredible.
Where is the gold going? It was not transferred from the registered to eligible category, and does not seem to have been transferred to any other COMEX vault. I suspect it is flowing East. And perhaps it is being taken to replace gold that has been rehypothecated from custodial vaults somewhere.
Someone seems to know something. Rather odd things are happening.
One looks at this and wonders, what next?
Chairman Bernocchio spoke yesterday and said what we knew all along...MORE QE, MORE printing and "we were just kidding about tapering" because the economy just isn't that strong. Really? What was your first clue? The Fed has become a laughing stock of the world as different governors are trotted out who contradict each other on a daily basis. Tapering, no tapering, beginning this year, not beginning until at least 2015 blah blah blah. They have already lost control of the markets that they so dearly want locked down. Volatility has exploded and will go terminal.
It looks like the "plan" to extricate the U.S. banks from their poisonous short positions in Gold futures was a winner. U.S. banks have gone from 106,000 net short contracts to 45,000 net long. This "long" position was created by duping the "specs" into going short a record
[5]
Source: CFTC CEI Gold Non-Commercial Short Contracts/Combined, CMXOGNCS
130,000 gross shorts. Look at this chart for a moment, the last 3-4 months is when the spike in "paper shorts" took place. They were selling Gold that they do not (nor ever will) have. Now as my title implies "here we go"...because these positions represent locked in and guaranteed buying to cover. THIS is not "potential" buying power, no, this IS buying power. Yes I know, it is only in the "paper markets" but now the physical market will no longer have the headwind of manipulation to fight, the "manipulation" will be the first tailwind the Gold market has had in over 15 years!
Of course this "tailwind" from the paper short covering positions will coincide with the physical demand that it created in the first place. The backwardation in London is now in day 4, the previous two occasions, 1999 (Washington Agreement) and 2008 (Lehman systemic flush) only lasted 2 days each time. I mention this because back in 1999 and 2008 there WAS "official" metal that was still available to "release" into the marketplace, I suspect that this is no longer true. I believe this is no longer true because the banks have switched from short to long because they "somehow" know or were "told" that the bottom of the barrel was within sight.
I do also want to mention that with the physical shortages that now exist, owners of far out futures will be induced into selling those futures and moving up to the current spot month or even the cash market itself. Fear of not receiving delivery will inspire this action which will be self feeding and fulfilling. Nothing creates a shortage better than a shortage. I know, it sounds funny but when you are told that you may not or can not have something...you want it all the more...AND you want it now! I suspect the that the current backwardation will not be a short term event and the negative basis has much further to go before this is all over.
It took 3 months for Gold and Silver to be "collapsed" so that the banks could reposition themselves, as I mentioned this happened with, and created more, HUGE global physical demand. Now, we will see not only physical demand but also paper demand which will compete with each other. I will be shocked if it takes more than 3 months to recoup all...and then some... It looks to me like the "tapering talk" was merely a Trojan horse used to help the banks extricate themselves from their shorts, it worked !
No matter what Bernocchio Ben has to say in his waning months as Fed Chairman, please understand that interest rates have already risen nearly 80% from their lows and oil is now $15 per barrel higher than they were 6 months ago. These will act as headwinds or taxes to the real economy, the Fed MUST continue to print, they MUST continue to purchase Treasury bonds and they MUST continue at full speed debauching the currency. ALL of this is good for Gold and Silver, only now the banks will make money when Gold and Silver increase in price. Nothing has changed. The fundamentals that were "in place" 3 months ago are still there, the only thing that has changed is that the banks are now, finally after more than 15 years...LONG and will benefit from higher prices !
It had to happen sooner or later, the "bottom of the physical barrel" had to be reached. It looks like this has finally happened. But, lo and behold the banks will benefit...what are the odds of this happening? The "markup" phase that I have spoken of so often is now fueled and ready on the launch pad, Ben just pushed the button. The price movement will shock many (most) and the amount of time for this to happen will be contracted...to allow as few as possible either in or back in. Get ready because " Here we go " !
Regards, Bill H.
Dave Kranzler of the GoldenTruth comments on the 4th day in a row for negative GOFO:
(courtesy Dave Kranzler/theGoldenTruth)
4th day in a row of negative GOF
Although the negative rates are only 1-3mos. Yesterday was out 6 mos. But, I believe 4 days in a row is unprecedented. Yesterday's 3 days in a row may be unprecedented. Not including yesterday, in which there was a small deposit of gold into GLD, over 28 tonnes had been removed from GLD in the past 7 days. That's what's being used to alleviate the GOFO negative rates. In the past 3 instances in the last 14 years, it only took 1-2 days to alleviate the stress.
It tells us just how short the market it is. It also confirms my thinking over 8 years ago that GLD would eventually be used as a source of gold for the bullion banks to cover extreme short positions. Little did I ever suspect that the hedge funds would squeezed like that. This chart shows you how desperate the situation is:
Source: CFTC CEI Gold Non-Commercial Short Contracts/Combined, CMXOGNCS
***Got gold? This is how tight the market is:
Last week I got an email from a guy in Chicago who runs a bullion fund. He had ordered 40 maple leafs from Tulving a week earlier. After a week he called to find out where they were and they told him two more weeks.
My business partner just got a call from a friend who bought maple leafs from Tulving. He was told they would be delivered by last week. He called today and was told they would come next week.
There is a shortage of bullion coming from the mints. This is part of the reason the GOFO has been negative an unprecedented four days in a row. As events continue to unfold, bullion is going to become more scarce.
In fact, think about it. THE biggest untold story of 2013 so far is the fact that - between all gold ETFs and the Comex - close to a 1000 tonnes of gold bars have disappeared from sight. Just think about that for a moment. Where did it go? Who wanted it and why?
I have a feeling that when the catalyst for this "disintermediation" of gold from the system becomes apparent, it will not be pleasant.
http://jessescrossroadscafe.blogspot.com/
11 JULY 2013
Gold Daily and Silver Weekly Charts - Curiouser and Curiouser
As you know I reported last night that there was a huge weekly drain of gold from the Brinks vaults.
This follows on a similar drain from JP Morgan's COMEX registered vaults.
There is no increase reported in any of the other COMEX vaults.
The metal bears have three weeks before the first delivery notice day in the August Gold contract.
I believe gold lease rates were negative for a fourth day, which is quite unusual.
As a point of interest, I have included a snapshot of the Café visitors map this afternoon. I think you can see this for yourself in real time by clicking on the map to the left. The clientele changes with the passing of day into night.
This is pretty much all the information that I can see as well, just some simple headcounts with basic locations. There is no need for any more, and it is certainly not worth the trouble or expense of gathering it. The numbers are not large in comparison to many internet sites, but I like to think of the regulars as being rather special, each in their own way.
The participation from around the world is remarkable, and heartening. Asia and the western Pacific will be coming along in a few hours.
The Café is always open, and we keep a light on for you.
Have a pleasant evening.
11 JULY 2013
CME Reports That Brinks Has a Seventy Percent Decline in Registered Gold Bullion Supply
Nick Laird of Sharelynx.com informs me that Brinks is 'now being depleted' of private gold holdings.
I am following up to make sure that there has not been an error in reporting. The CME reports these figures one day in arrears, on a weekly basis, so the chart below is dated July 9.
I have extended the calendar axis a bit to show the nearly vertical drop in inventory of registered bullion.
In referring to the registered supply at Brinks, Nick notes that:
"Brinks is now being depleted. They have gone from 447,199 on July 3rd to 134,525 on July 9th which is a drop of 312,674 oz."If this is correct, then this is a decline of 70 percent in the gold held in private accounts at Brinks in just one week.
If this is data is correct, it would not be too much of a stretch to say that this has the appearance of 'a run on the bank.' Again, I will wait to see if the CME issues a correction for this. It seems almost incredible.
Where is the gold going? It was not transferred from the registered to eligible category, and does not seem to have been transferred to any other COMEX vault. I suspect it is flowing East. And perhaps it is being taken to replace gold that has been rehypothecated from custodial vaults somewhere.
Someone seems to know something. Rather odd things are happening.
One looks at this and wonders, what next?
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