http://harveyorgan.blogspot.com/2013/07/july-162013grant-williams-report-on.html
Gold closed up $7.00 to $1290.80 (comex closing time ). Silver is up by 9 cents to $19.83 (comex closing time)
In the access market at 5:00 pm, gold and silver finished trading at the following prices :
gold: $1292.20
At the Comex, the open interest in silver rose by 1122 contracts to 133,116.
Tonight, the Comex registered or dealer inventory of gold falls dramatically below the 1 million oz mark to 959,705.039 oz or 29.85 tonnes. This is dangerously low especially when we are coming up to the August delivery month.
Remember in June we had almost 31 tonnes of gold stand for delivery. The total of all gold at the comex (dealer and customer) rises slightly and registers a reading of 7.111 million oz or 221.18 tonnes of gold.
JPMorgan's customer inventory rises tonight to 148,165.776 oz or 4.60 tonnes done through an adjustment. It's dealer inventory thus falls to 390,092.326 oz (12.13 tonnes) 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 25.206 tonnes of gold. The total of all of the dealers falls badly tonight to 29.85 tonnes!! Brinks continues to record a low of only 4.18 tonnes in its dealer account.
JPMorgan's customer inventory is still at an extremely low 148,165.776 million oz or 4.60 tonnes of gold.
The GLD reported a loss in inventory tonight of 1.5 tonnes of gold with an inventory reading of 937.57 tonnes of gold. We neither gained nor lost any silver inventory at the SLV
The total gold comex open interest rose by 1711 contracts from 433,695 up to 435,406 with gold falling in price by $6.30 yesterday. 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 106 up 1 contract . We had 0 delivery notices filed on Friday so in essence we gained 1 contract or 100 oz gold additional ounces will stand for the July delivery month. The next active delivery month for gold is August and here the OI fell by 7710 contracts from 160,838 down to 153,128 as we are less than 2 1/2 weeks away from first day notice for the August contract month. The estimated volume today was poor at 147,406 contracts. The confirmed volume yesterday was also poor at 144,923.
The total silver Comex OI rose by 1122 contracts with silver falling in price on Friday by 5 cents. The total of all comex silver OI stands at 133,116 contracts. We are now into the big delivery month of July and here the OI fell by 25 contracts down to 897. We had 24 notices filed yesterday so in essence we lost 1 contract or 5,000 silver oz which will not stand for the July delivery month. The next big delivery month is September and here the OI rose by 784 contracts up to 79,411. The estimated volume today was anemic coming in at 26,204 contracts. The confirmed volume yesterday was also anemic at 27,772.
It seems that many investors are fleeing the crooked comex.
We had 1 customer deposits today :
Into HSBC: 1999.945 oz
total customer deposits: 1999.945 oz
we had 0 customer withdrawals
Total Customer withdrawals: nil oz
Today we had 2 adjustments and both adjusted out of the dealer and back into the customer account:
i) out of HSBC: 31,749.864 oz was adjusted out of the dealer and into the customer account at HSBC.
ii) out of jPMorgan: 11,785.167 oz was adjusted out of the dealer and into the customer account of JPM.
Thus tonight we have the following JPMorgan gold inventory which of course changes with the adjustments:
JPM dealer inventory: 390,092.326 oz 12.13 tonnes
JPM customer inventory: 148,165.776 oz or 4.60 tonnes
Today, zero notices were issued from its customer side but 24 notices were issued on its dealer or house account.
So we have no changes on the customer side of JPM:
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 from the 28th of June until today on issuance from JPMorgan:
On Friday, June 28th we had 23 notices filed and all of these were issued by JPMorgan on the customer side.
Two weeks ago:
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.
And now today, July 15.2013 we had 24 notices filed from its dealer side.
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 the June 28th 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 falls dramatically below 1 million oz at 959,705.039 oz or 29.85 tonnes of gold.The total of all comex gold, dealer and customer rises slightly again tonight to 7.111 million oz or 221.18 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.
Tuesday; July 15.2013: 24 notices issued by JPMorgan dealer side.
You will also recall 5 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, 80,229.777 oz was either withdrawn or adjusted out(on the dealer side and this includes today's adjustment of 11,785.167 oz), leaving the dealer side at 390,092,33 oz where it sits tonight.
On the dealer side here are the last 25 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). These 3 dealer gold lowers to 25.206 tonnes tonight
i) Scotia: 199,539.37 oz or 6.206 tonnes
ii) HSBC: 221,093.814 oz or 6.87 tonnes (Prev 252,843.678 or 7.86 tonnes)
iii) JPMorgan: 390,092.326 oz or 12.13 tonnes (Prev 401,877.493 oz or 12.50 tonnes)
total: 25.206 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 (in the beginning of July they had over 13 tonnes and today only 4.18 tonnes!!)
Today we had 17 notices served upon our longs for 1700 oz of gold(and 16 were issued by JPMorgan from their dealer account). In order to calculate what I believe will stand for delivery in July, I take the total number of notices served (103) x 100 oz per contract to give us 10,300 oz served + I take the OI remaining for July (106) and subtract out today's notices (17) which leaves us with 89 notices still left to be served upon our longs.
Thus we have the following gold ounces standing for metal:
103 contracts served x 100 oz = 10,300 oz, + 89 contracts left to be served upon x 100 oz = 8,900 oz to give us 19,200 oz or 0.5972 tonnes of gold. We gained 100 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 29.85 tonnes and none of the 9.5 tonnes delivery notices from May and the major part of the 30.70 tonnes from June issued by JPM on its dealer side has yet to leave.
ii) a) JPMorgan's customer inventory remains at an extremely low 148,165.776 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 390,092.326 oz. However all of this gold has been spoken for plus an additional 112,307.68 oz of deficient gold.
iii) the 3 major bullion banks have collectively only 25.206 tonnes of gold left in their dealer account.
i) Out of JPM 10,750.41 oz
ii) Out of Delaware: 10,750.41 oz
total customer withdrawal : 15,809.01 oz
Now let us check on gold inventories at the GLD first:
July 16.2013: we had another gold bleed of 1.5 tonnes today.
July 15.2013: good news!! we lost no gold today
The physical gold at the GLD may be gone!!:
http://www.lbma.org.uk/pages/index.cfm?page_id=55&show=2013
These guys must know it too. Two days in a row now silver has been hammered 20 cents exactly at the Comex open only to bounce back.
ANYONE who can't see that the metals are highly and illegally manipulated either has Hellen Keller syndrome OR is mentally retarded: Doug Casey, Gene Arensberg, Dennis Gartman, etc."
Tuesday, July 16, 2013
July 16.2013/Grant Williams report on gold/dealer comex gold declines to 29.85 tonnes/ JPMorgan dealer gold falls to 390,092.3 tonnes/
Good evening Ladies and Gentlemen:
Gold closed up $7.00 to $1290.80 (comex closing time ). Silver is up by 9 cents to $19.83 (comex closing time)
In the access market at 5:00 pm, gold and silver finished trading at the following prices :
gold: $1292.20
silver: $20.03
At the Comex, the open interest in silver rose by 1122 contracts to 133,116.
The open interest on the entire gold comex contracts rose by 1711 contracts to 433,695 with gold's rise in price of $6.80 yesterday.
Tonight, the Comex registered or dealer inventory of gold falls dramatically below the 1 million oz mark to 959,705.039 oz or 29.85 tonnes. This is dangerously low especially when we are coming up to the August delivery month.
Remember in June we had almost 31 tonnes of gold stand for delivery. The total of all gold at the comex (dealer and customer) rises slightly and registers a reading of 7.111 million oz or 221.18 tonnes of gold.
JPMorgan's customer inventory rises tonight to 148,165.776 oz or 4.60 tonnes done through an adjustment. It's dealer inventory thus falls to 390,092.326 oz (12.13 tonnes) 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 25.206 tonnes of gold. The total of all of the dealers falls badly tonight to 29.85 tonnes!! Brinks continues to record a low of only 4.18 tonnes in its dealer account.
JPMorgan's customer inventory is still at an extremely low 148,165.776 million oz or 4.60 tonnes of gold.
The GLD reported a loss in inventory tonight of 1.5 tonnes of gold with an inventory reading of 937.57 tonnes of gold. We neither gained nor lost any silver inventory at the SLV
Today we have an extremely important commentary from Grant Williams of Hmmm....fame as he tackles the reason for the 9 months of gold whacking.
You do not want to miss this one!!
Bill Kaye and John Embry have a good discussions on gold with Eric King.
Finally, to wrap up the physical stories we have a great discussion between two giants in the industry, William Engdahl and financial reporter Lars Schall of Germany.
On the paper side of things, we have a great commentary from Bill Holter titled Mutiny as he discusses the huge dissension in the ranks between Fed members.
This is also a very important read.
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 rose by 1711 contracts from 433,695 up to 435,406 with gold falling in price by $6.30 yesterday. 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 106 up 1 contract . We had 0 delivery notices filed on Friday so in essence we gained 1 contract or 100 oz gold additional ounces will stand for the July delivery month. The next active delivery month for gold is August and here the OI fell by 7710 contracts from 160,838 down to 153,128 as we are less than 2 1/2 weeks away from first day notice for the August contract month. The estimated volume today was poor at 147,406 contracts. The confirmed volume yesterday was also poor at 144,923.
The total silver Comex OI rose by 1122 contracts with silver falling in price on Friday by 5 cents. The total of all comex silver OI stands at 133,116 contracts. We are now into the big delivery month of July and here the OI fell by 25 contracts down to 897. We had 24 notices filed yesterday so in essence we lost 1 contract or 5,000 silver oz which will not stand for the July delivery month. The next big delivery month is September and here the OI rose by 784 contracts up to 79,411. The estimated volume today was anemic coming in at 26,204 contracts. The confirmed volume yesterday was also anemic at 27,772.
It seems that many investors are fleeing the crooked comex.
Comex gold/May contract month:
July 16/2013
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
| 1999.945 (HSBC) |
No of oz served (contracts) today
|
17 ( 1700 oz)
|
No of oz to be served (notices)
|
89 (8,900 oz)
|
Total monthly oz gold served (contracts) so far this month
|
103 (10,300 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
| 335,306.17 oz |
We had poor activity at the gold vaults
The dealer had 0 deposits and no dealer withdrawal
We had 1 customer deposits today :
Into HSBC: 1999.945 oz
total customer deposits: 1999.945 oz
we had 0 customer withdrawals
Total Customer withdrawals: nil oz
Today we had 2 adjustments and both adjusted out of the dealer and back into the customer account:
i) out of HSBC: 31,749.864 oz was adjusted out of the dealer and into the customer account at HSBC.
ii) out of jPMorgan: 11,785.167 oz was adjusted out of the dealer and into the customer account of JPM.
Thus tonight we have the following JPMorgan gold inventory which of course changes with the adjustments:
JPM dealer inventory: 390,092.326 oz 12.13 tonnes
JPM customer inventory: 148,165.776 oz or 4.60 tonnes
Today, zero notices were issued from its customer side but 24 notices were issued on its dealer or house account.
So we have no changes on the customer side of JPM:
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 from the 28th of June until today on issuance from JPMorgan:
On Friday, June 28th we had 23 notices filed and all of these were issued by JPMorgan on the customer side.
Two weeks ago:
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.
And now today, July 15.2013 we had 24 notices filed from its dealer side.
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 the June 28th 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 falls dramatically below 1 million oz at 959,705.039 oz or 29.85 tonnes of gold.The total of all comex gold, dealer and customer rises slightly again tonight to 7.111 million oz or 221.18 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.
Tuesday; July 15.2013: 24 notices issued by JPMorgan dealer side.
You will also recall 5 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, 80,229.777 oz was either withdrawn or adjusted out(on the dealer side and this includes today's adjustment of 11,785.167 oz), leaving the dealer side at 390,092,33 oz where it sits tonight.
On the dealer side here are the last 25 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
Friday: 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
Friday: 0
Monday: 0
Tuesday: 24
we will now account for the new data tonight:
Thus, 5024 notices have been issued by JPMorgan (dealer side) for the month of June until today for 502,400 oz and these ounces have yet to settle from JPMorgan's dealer side.
JPMorgan's dealer vault registers tonight 390,092.326 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 102,307.68 oz (390,092.326 inventory - 502,400 oz issued = -112,307.68 oz)
In other words, the entire 390,092.326 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 112,307.68 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??
Tuesday: 24
we will now account for the new data tonight:
Thus, 5024 notices have been issued by JPMorgan (dealer side) for the month of June until today for 502,400 oz and these ounces have yet to settle from JPMorgan's dealer side.
JPMorgan's dealer vault registers tonight 390,092.326 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 102,307.68 oz (390,092.326 inventory - 502,400 oz issued = -112,307.68 oz)
In other words, the entire 390,092.326 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 112,307.68 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). These 3 dealer gold lowers to 25.206 tonnes tonight
i) Scotia: 199,539.37 oz or 6.206 tonnes
ii) HSBC: 221,093.814 oz or 6.87 tonnes (Prev 252,843.678 or 7.86 tonnes)
iii) JPMorgan: 390,092.326 oz or 12.13 tonnes (Prev 401,877.493 oz or 12.50 tonnes)
total: 25.206 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 (in the beginning of July they had over 13 tonnes and today only 4.18 tonnes!!)
Today we had 17 notices served upon our longs for 1700 oz of gold(and 16 were issued by JPMorgan from their dealer account). In order to calculate what I believe will stand for delivery in July, I take the total number of notices served (103) x 100 oz per contract to give us 10,300 oz served + I take the OI remaining for July (106) and subtract out today's notices (17) which leaves us with 89 notices still left to be served upon our longs.
Thus we have the following gold ounces standing for metal:
103 contracts served x 100 oz = 10,300 oz, + 89 contracts left to be served upon x 100 oz = 8,900 oz to give us 19,200 oz or 0.5972 tonnes of gold. We gained 100 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 29.85 tonnes and none of the 9.5 tonnes delivery notices from May and the major part of the 30.70 tonnes from June issued by JPM on its dealer side has yet to leave.
ii) a) JPMorgan's customer inventory remains at an extremely low 148,165.776 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 390,092.326 oz. However all of this gold has been spoken for plus an additional 112,307.68 oz of deficient gold.
iii) the 3 major bullion banks have collectively only 25.206 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 16/2013: July silver contract month:
July contract month
July contract month
| Silver |
Ounces
|
| Withdrawals from Dealers Inventory | nil |
| Withdrawals from Customer Inventory | 15,809.011 oz (CNT, Delaware,) |
| Deposits to the Dealer Inventory | nil |
| Deposits to the Customer Inventory | 1,209,885.82 (Brinks, CNT, Delaware) |
| No of oz served (contracts) | 40 (200,000 oz) |
| No of oz to be served (notices) | 857 (4,285,000 oz) |
| Total monthly oz silver served (contracts) | 2456 (12,280,000) |
| 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 | 1,638,176.1 oz |
Today, we had good activity inside the silver vaults.
we had 0 dealer deposits and 0 dealer withdrawals.
We had 3 customer deposits:
i) Into Brinks : 610,245.12 oz
ii) Into CNT: 598,645.60 oz
iii) Into Delaware: 995.10 oz
total customer deposit: 1,209,885.82 oz
We had 2 customer withdrawals:
We had 3 customer deposits:
i) Into Brinks : 610,245.12 oz
ii) Into CNT: 598,645.60 oz
iii) Into Delaware: 995.10 oz
total customer deposit: 1,209,885.82 oz
We had 2 customer withdrawals:
i) Out of JPM 10,750.41 oz
ii) Out of Delaware: 10,750.41 oz
total customer withdrawal : 15,809.01 oz
we had 2 adjustments today
i) Out of HSBC: 19,127.08 oz was adjusted out of the customer and back into the dealer account of dealer of HSBC.
ii) Out of Scotia; 174,549.917 oz was adjusted out of the customer and back into the dealer account of Scotia
Thus we have the following:
i) Out of HSBC: 19,127.08 oz was adjusted out of the customer and back into the dealer account of dealer of HSBC.
ii) Out of Scotia; 174,549.917 oz was adjusted out of the customer and back into the dealer account of Scotia
Thus we have the following:
Registered silver at : 49.299 million oz
total of all silver: 167.038 million oz.
The CME reported that we had 40 notices filed for 200,000 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 2456 x 5,000 oz per contract = 12,280,000 oz + 857 notices left to be served upon our longs x 5000 oz per contract = 4,285,000 oz to give us a total of oz
Thus here are the standings:
2456 contracts served x 5000 oz per contract (served) or 12,280,000 oz + 857 notices x 5,000 oz or 4,365,000 oz = 16,565,000 oz
we lost one contract or 5,000 oz will not stand for delivery in July.
we lost one contract or 5,000 oz will not stand for delivery in July.
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 16.2013: we had another gold bleed of 1.5 tonnes today.
Tonnes937.57
Ounces30,143,884.76
Value US$38.920 billion
July 15.2013: good news!! we lost no gold today
The physical gold at the GLD may be gone!!:
Tonnes939.07
Ounces30,192,195.27
Value US$38.770 billion
* * *
Selected news and views......
The GOFO continually rests in negative territory..
from Dave Kranzler/the GoldenTruth...
"GOFO negative for 7th day in a row".....
"There must be one helluva short squeeze brewing in the physical market. GOFO negative now for 7 days in a row, bullion banks are record net long Comex gold, the overall net long position on the Comex (Commercials + hedge funds + retail) at a record net low, gross short position in Comex gold at a record high...
http://www.lbma.org.uk/pages/index.cfm?page_id=55&show=2013
These guys must know it too. Two days in a row now silver has been hammered 20 cents exactly at the Comex open only to bounce back.
ANYONE who can't see that the metals are highly and illegally manipulated either has Hellen Keller syndrome OR is mentally retarded: Doug Casey, Gene Arensberg, Dennis Gartman, etc."
The following commentary from Grant Williams is a dandy and I urge everyone to take some time out tonight to read it in its entirety. Grant Williams main hypothesis is that gold has been whacked because Venezuela and Germany demanded their physical gold back. He then analyzes two years worth of data together with declining inventories at the comex and GLD to come to the conclusion that the constant raid was to shake the tree and loosen some gold leaves for our bankers. They never dreamt that countries of Eastern persuasion would purchase such a massive load of gold leaving the cupboards bear at the GLD and Comex!!
again..a must read
(courtesy Grant Williams/John Maulden/GATA)
Dear Friend of GATA and Gold:
In his new "Things That Make You Go Hmmm" letter, gold fund manager Grant Williams attributes the recent pounding of the gold price to Western central bank efforts to recover enough real metal for repatriation of the Venezuelan and German gold reserves vaulted abroad, what with so much Western central bank gold long having been leased and then sold into the market to suppress the price. Williams cites all the recent developments noted by GATA and construes them pretty much as GATA does as part of a scheme of market rigging. Williams' letter is headlined "What If?" and it's posted at the Mauldin Economics Internet site here:
http://www.mauldineconomics.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
or you can find it here:
The following commentary from Grant Williams is a dandy and I urge everyone to take some time out tonight to read it in its entirety. Grant Williams main hypothesis is that gold has been whacked because Venezuela and Germany demanded their physical gold back. He then analyzes two years worth of data together with declining inventories at the comex and GLD to come to the conclusion that the constant raid was to shake the tree and loosen some gold leaves for our bankers. They never dreamt that countries of Eastern persuasion would purchase such a massive load of gold leaving the cupboards bear at the GLD and Comex!!
again..a must read
(courtesy Grant Williams/John Maulden/GATA)
Dear Friend of GATA and Gold:
In his new "Things That Make You Go Hmmm" letter, gold fund manager Grant Williams attributes the recent pounding of the gold price to Western central bank efforts to recover enough real metal for repatriation of the Venezuelan and German gold reserves vaulted abroad, what with so much Western central bank gold long having been leased and then sold into the market to suppress the price. Williams cites all the recent developments noted by GATA and construes them pretty much as GATA does as part of a scheme of market rigging. Williams' letter is headlined "What If?" and it's posted at the Mauldin Economics Internet site here:
http://www.mauldineconomics.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
In his new "Things That Make You Go Hmmm" letter, gold fund manager Grant Williams attributes the recent pounding of the gold price to Western central bank efforts to recover enough real metal for repatriation of the Venezuelan and German gold reserves vaulted abroad, what with so much Western central bank gold long having been leased and then sold into the market to suppress the price. Williams cites all the recent developments noted by GATA and construes them pretty much as GATA does as part of a scheme of market rigging. Williams' letter is headlined "What If?" and it's posted at the Mauldin Economics Internet site here:
http://www.mauldineconomics.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
or you can find it here:
Grant Williams ties pounding of gold to shortage triggered by Venezuela, Germany
Submitted by cpowell on Tue, 2013-07-16 14:53. Section: Daily Dispatches
10:50a ET Tuesday, July 16, 2013
Dear Friend of GATA and Gold:
In his new "Things That Make You Go Hmmm" letter, gold fund manager Grant Williams attributes the recent pounding of the gold price to Western central bank efforts to recover enough real metal for repatriation of the Venezuelan and German gold reserves vaulted abroad, what with so much Western central bank gold long having been leased and then sold into the market to suppress the price. Williams cites all the recent developments noted by GATA and construes them pretty much as GATA does as part of a scheme of market rigging. Williams' letter is headlined "What If?" and it's posted at the Mauldin Economics Internet site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc
Bill Kaye talks with Eric King and states that China owns between 4,000 tonnes and 8000 tonnes of gold.
Also the gold that arrives into China is melted down and recasted with the Chinese sovereign insignia.
If China makes an announcement that they have accumulated 8,000 tonnes of gold, at that point we would have gold at $10,000 bid and no offer. The game would be over..and that would be your black swan event!
(courtesy Bill Kaye/Eric King/ Kingworldnews)
Hong Kong fund manager identifies refinery recasting central bank gold
Submitted by cpowell on Tue, 2013-07-16 20:00. Section: Daily Dispatches
4p ET Tuesday, July 16, 2013
Dear Friend of GATA and Gold:
Interviewed by the German financial journalist Lars Schall, who is certainly getting around today, Hong Kong fund manager William Kaye elaborates on his interview last week with King World News --
-- and identifies the Hong Kong gold refiner that is recasting Western gold, including Western central bank gold, for the Asian market.
Kaye remarks that this movement and recasting of gold should hardly be a sensation because it is completely consistent with everything known about the current gold market.
Only the Fed could have caused gold's plunge:
(courtesy William Enghahl/Lars Schall)
William Engdahl: Only Fed could have prompted gold's plunge in April
Submitted by cpowell on Tue, 2013-07-16 15:46. Section: Daily Dispatches
11:45a ET Tuesday, July 16, 2013
Dear Friend of GATA and Gold:
Economic researcher F. William Engdahl today tells the German financial journalist Lars Schall, writing for Matterhorn Asset Management's Gold Switzerland Internet site, that the smashing of the gold price in April involved so much paper gold that it could only have been the work of the Federal Reserve.
Engdahl adds that central banks may not have possession of the gold they claim as their reserves. He cites GATA's work and says that if the gold market was fair and transparent without naked shorting of gold futures, the gold price would have reached $10,000 a few years ago.
The interview, the second part of a series of three, is headlined "There Is No Such Thing as a Free Market" and it's posted at Gold Switzerland's Internet site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Mutiny?
Fed Chairman Bernocchio will be testifying before Congress tomorrow and Thursday...he may or may not move markets but that's not my point. It seems as if almost half of the voting Fed members are not in the same camp and in fact are close to if not actually 180 degrees opposed. THIS to my knowledge has never ever happened before. As far as I know, the Fed has almost always been a "united front" (even if misguided) and at most had 1, maybe 2 dissenters.
So the past is not present but you should understand that with almost half of the board not on the same page with a lame duck chairman who has probably no more than 6 months left, the conditions for a "mutiny" now exist. More QE, tapering QE or ending QE? It doesn't really matter because no option will work but they must at least appear unified and "confident"...because this whole show is about confidence which is the only thing left.
Since the trial balloon of "tapering" caused such large volatility, you can pretty much bet that any such talk will be of the "don't worry, it's far in the future" variety. The markets clearly "spoke", even a slowdown in monetizing will create a meltdown. So...don't taper, don't slow down and DON'T say anything that could cause confidence to buckle because any other course leads to shutdown.
As mentioned before, it has all now boiled down to "confidence", the problem is that those driving the bus are fighting over the gas, brakes and steering wheel. Not conducive to say the least when it comes to confidence. It will be quite interesting to see what is said after Thursday's final testimony as 2 weeks ago we had Fed Governor Duke resign after the Bernocchio press conference. Will more testimony about "blowing money on the streets" cause further dissent? Will we hear statements from other governors contradictory to the Chairman's? Will other Fed members change sides and sway power from the Bernocchio side? Will the markets take notice?
These are all legitimate questions, the answers will be interesting to watch as to direction and timing. As "confidence" is the only left holding the tent up I would remind you that it can be broken quickly and by something seemingly innocuous or even meaningless. We live in a hyper fast computerized world, one that carries more financial leverage and less unencumbered collateral than ever before...do you really believe the end game will give anyone not already prepared the time to do so? Regards, Bill H.
http://www.zerohedge.com/news/2013-07-16/gold-tale-two-markets
Gold: A Tale Of Two Markets
Submitted by Tyler Durden on 07/16/2013 18:26 -0400
The last six months have been tough for gold investors or as Santiago Capital's Brent Johnson self-reflectively jokes, "if adversity builds character, then we gold investors should build a new Disneyland." But as he explains in this excellent summary presentation, the critical factors requiring ownership of gold (or hard money) are still in place and in fact - in some cases - are even more prescient now than ever as we suffer through a surreality of the tale of two economic realities and the tale of two gold markets.
There are many reasons why an allocation to gold is still critical:
But in addition to these 'well-known' reasons, there is an additional factor in the gold market that bears a much closer look...
It is a Tale of Two Realities - the reality is far different from the one proclaimed each day on CNBC or CNN...
4:05 - and a Tale of Two Markets - the derivative (or paper) market and the physical market and here is where Johnson provides a useful summary of the various dislocations that are occurring...
and this is where Johnson spends the bulk of his time discussing the ETF holdings reductions, the fractionally-reserved COMEX, and the increasingly negative GOFO rates which mean - in his view - quite simply that the market values gold more highly than it values cash.
Source: Brent Johnson via Santiago Capital
Submitted by cpowell on Tue, 2013-07-16 14:53. Section: Daily Dispatches
10:50a ET Tuesday, July 16, 2013
Dear Friend of GATA and Gold:
In his new "Things That Make You Go Hmmm" letter, gold fund manager Grant Williams attributes the recent pounding of the gold price to Western central bank efforts to recover enough real metal for repatriation of the Venezuelan and German gold reserves vaulted abroad, what with so much Western central bank gold long having been leased and then sold into the market to suppress the price. Williams cites all the recent developments noted by GATA and construes them pretty much as GATA does as part of a scheme of market rigging. Williams' letter is headlined "What If?" and it's posted at the Mauldin Economics Internet site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc
Gold Anti-Trust Action Committee Inc
Bill Kaye talks with Eric King and states that China owns between 4,000 tonnes and 8000 tonnes of gold.
Also the gold that arrives into China is melted down and recasted with the Chinese sovereign insignia.
If China makes an announcement that they have accumulated 8,000 tonnes of gold, at that point we would have gold at $10,000 bid and no offer. The game would be over..and that would be your black swan event!
(courtesy Bill Kaye/Eric King/ Kingworldnews)
Bill Kaye talks with Eric King and states that China owns between 4,000 tonnes and 8000 tonnes of gold.
Also the gold that arrives into China is melted down and recasted with the Chinese sovereign insignia.
(courtesy Bill Kaye/Eric King/ Kingworldnews)
Hong Kong fund manager identifies refinery recasting central bank gold
Submitted by cpowell on Tue, 2013-07-16 20:00. Section: Daily Dispatches
4p ET Tuesday, July 16, 2013
Dear Friend of GATA and Gold:
Interviewed by the German financial journalist Lars Schall, who is certainly getting around today, Hong Kong fund manager William Kaye elaborates on his interview last week with King World News --
-- and identifies the Hong Kong gold refiner that is recasting Western gold, including Western central bank gold, for the Asian market.
Kaye remarks that this movement and recasting of gold should hardly be a sensation because it is completely consistent with everything known about the current gold market.
Only the Fed could have caused gold's plunge:
(courtesy William Enghahl/Lars Schall)
William Engdahl: Only Fed could have prompted gold's plunge in April
Submitted by cpowell on Tue, 2013-07-16 15:46. Section: Daily Dispatches
11:45a ET Tuesday, July 16, 2013
Dear Friend of GATA and Gold:
Economic researcher F. William Engdahl today tells the German financial journalist Lars Schall, writing for Matterhorn Asset Management's Gold Switzerland Internet site, that the smashing of the gold price in April involved so much paper gold that it could only have been the work of the Federal Reserve.
Engdahl adds that central banks may not have possession of the gold they claim as their reserves. He cites GATA's work and says that if the gold market was fair and transparent without naked shorting of gold futures, the gold price would have reached $10,000 a few years ago.
The interview, the second part of a series of three, is headlined "There Is No Such Thing as a Free Market" and it's posted at Gold Switzerland's Internet site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Mutiny?
Fed Chairman Bernocchio will be testifying before Congress tomorrow and Thursday...he may or may not move markets but that's not my point. It seems as if almost half of the voting Fed members are not in the same camp and in fact are close to if not actually 180 degrees opposed. THIS to my knowledge has never ever happened before. As far as I know, the Fed has almost always been a "united front" (even if misguided) and at most had 1, maybe 2 dissenters.
So the past is not present but you should understand that with almost half of the board not on the same page with a lame duck chairman who has probably no more than 6 months left, the conditions for a "mutiny" now exist. More QE, tapering QE or ending QE? It doesn't really matter because no option will work but they must at least appear unified and "confident"...because this whole show is about confidence which is the only thing left.
Since the trial balloon of "tapering" caused such large volatility, you can pretty much bet that any such talk will be of the "don't worry, it's far in the future" variety. The markets clearly "spoke", even a slowdown in monetizing will create a meltdown. So...don't taper, don't slow down and DON'T say anything that could cause confidence to buckle because any other course leads to shutdown.
As mentioned before, it has all now boiled down to "confidence", the problem is that those driving the bus are fighting over the gas, brakes and steering wheel. Not conducive to say the least when it comes to confidence. It will be quite interesting to see what is said after Thursday's final testimony as 2 weeks ago we had Fed Governor Duke resign after the Bernocchio press conference. Will more testimony about "blowing money on the streets" cause further dissent? Will we hear statements from other governors contradictory to the Chairman's? Will other Fed members change sides and sway power from the Bernocchio side? Will the markets take notice?
These are all legitimate questions, the answers will be interesting to watch as to direction and timing. As "confidence" is the only left holding the tent up I would remind you that it can be broken quickly and by something seemingly innocuous or even meaningless. We live in a hyper fast computerized world, one that carries more financial leverage and less unencumbered collateral than ever before...do you really believe the end game will give anyone not already prepared the time to do so? Regards, Bill H.
http://www.zerohedge.com/news/2013-07-16/gold-tale-two-markets
Gold: A Tale Of Two Markets
Submitted by Tyler Durden on 07/16/2013 18:26 -0400
The last six months have been tough for gold investors or as Santiago Capital's Brent Johnson self-reflectively jokes, "if adversity builds character, then we gold investors should build a new Disneyland." But as he explains in this excellent summary presentation, the critical factors requiring ownership of gold (or hard money) are still in place and in fact - in some cases - are even more prescient now than ever as we suffer through a surreality of the tale of two economic realities and the tale of two gold markets.
There are many reasons why an allocation to gold is still critical:
But in addition to these 'well-known' reasons, there is an additional factor in the gold market that bears a much closer look...
It is a Tale of Two Realities - the reality is far different from the one proclaimed each day on CNBC or CNN...
4:05 - and a Tale of Two Markets - the derivative (or paper) market and the physical market and here is where Johnson provides a useful summary of the various dislocations that are occurring...
and this is where Johnson spends the bulk of his time discussing the ETF holdings reductions, the fractionally-reserved COMEX, and the increasingly negative GOFO rates which mean - in his view - quite simply that the market values gold more highly than it values cash.
Source: Brent Johnson via Santiago Capital
Submitted by cpowell on Tue, 2013-07-16 20:00. Section: Daily Dispatches
4p ET Tuesday, July 16, 2013
Dear Friend of GATA and Gold:
Interviewed by the German financial journalist Lars Schall, who is certainly getting around today, Hong Kong fund manager William Kaye elaborates on his interview last week with King World News --
-- and identifies the Hong Kong gold refiner that is recasting Western gold, including Western central bank gold, for the Asian market.
Kaye remarks that this movement and recasting of gold should hardly be a sensation because it is completely consistent with everything known about the current gold market.
Only the Fed could have caused gold's plunge:
(courtesy William Enghahl/Lars Schall)
Only the Fed could have caused gold's plunge:
(courtesy William Enghahl/Lars Schall)
William Engdahl: Only Fed could have prompted gold's plunge in April
Submitted by cpowell on Tue, 2013-07-16 15:46. Section: Daily Dispatches
11:45a ET Tuesday, July 16, 2013
Dear Friend of GATA and Gold:
Economic researcher F. William Engdahl today tells the German financial journalist Lars Schall, writing for Matterhorn Asset Management's Gold Switzerland Internet site, that the smashing of the gold price in April involved so much paper gold that it could only have been the work of the Federal Reserve.
Engdahl adds that central banks may not have possession of the gold they claim as their reserves. He cites GATA's work and says that if the gold market was fair and transparent without naked shorting of gold futures, the gold price would have reached $10,000 a few years ago.
The interview, the second part of a series of three, is headlined "There Is No Such Thing as a Free Market" and it's posted at Gold Switzerland's Internet site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Mutiny?
Fed Chairman Bernocchio will be testifying before Congress tomorrow and Thursday...he may or may not move markets but that's not my point. It seems as if almost half of the voting Fed members are not in the same camp and in fact are close to if not actually 180 degrees opposed. THIS to my knowledge has never ever happened before. As far as I know, the Fed has almost always been a "united front" (even if misguided) and at most had 1, maybe 2 dissenters.
So the past is not present but you should understand that with almost half of the board not on the same page with a lame duck chairman who has probably no more than 6 months left, the conditions for a "mutiny" now exist. More QE, tapering QE or ending QE? It doesn't really matter because no option will work but they must at least appear unified and "confident"...because this whole show is about confidence which is the only thing left.
Since the trial balloon of "tapering" caused such large volatility, you can pretty much bet that any such talk will be of the "don't worry, it's far in the future" variety. The markets clearly "spoke", even a slowdown in monetizing will create a meltdown. So...don't taper, don't slow down and DON'T say anything that could cause confidence to buckle because any other course leads to shutdown.
As mentioned before, it has all now boiled down to "confidence", the problem is that those driving the bus are fighting over the gas, brakes and steering wheel. Not conducive to say the least when it comes to confidence. It will be quite interesting to see what is said after Thursday's final testimony as 2 weeks ago we had Fed Governor Duke resign after the Bernocchio press conference. Will more testimony about "blowing money on the streets" cause further dissent? Will we hear statements from other governors contradictory to the Chairman's? Will other Fed members change sides and sway power from the Bernocchio side? Will the markets take notice?
These are all legitimate questions, the answers will be interesting to watch as to direction and timing. As "confidence" is the only left holding the tent up I would remind you that it can be broken quickly and by something seemingly innocuous or even meaningless. We live in a hyper fast computerized world, one that carries more financial leverage and less unencumbered collateral than ever before...do you really believe the end game will give anyone not already prepared the time to do so? Regards, Bill H.
http://www.zerohedge.com/news/2013-07-16/gold-tale-two-markets
Gold: A Tale Of Two Markets
Submitted by Tyler Durden on 07/16/2013 18:26 -0400
The last six months have been tough for gold investors or as Santiago Capital's Brent Johnson self-reflectively jokes, "if adversity builds character, then we gold investors should build a new Disneyland." But as he explains in this excellent summary presentation, the critical factors requiring ownership of gold (or hard money) are still in place and in fact - in some cases - are even more prescient now than ever as we suffer through a surreality of the tale of two economic realities and the tale of two gold markets.
There are many reasons why an allocation to gold is still critical:
But in addition to these 'well-known' reasons, there is an additional factor in the gold market that bears a much closer look...
It is a Tale of Two Realities - the reality is far different from the one proclaimed each day on CNBC or CNN...
4:05 - and a Tale of Two Markets - the derivative (or paper) market and the physical market and here is where Johnson provides a useful summary of the various dislocations that are occurring...
and this is where Johnson spends the bulk of his time discussing the ETF holdings reductions, the fractionally-reserved COMEX, and the increasingly negative GOFO rates which mean - in his view - quite simply that the market values gold more highly than it values cash.
Source: Brent Johnson via Santiago Capital
Submitted by cpowell on Tue, 2013-07-16 15:46. Section: Daily Dispatches
11:45a ET Tuesday, July 16, 2013
Dear Friend of GATA and Gold:
Economic researcher F. William Engdahl today tells the German financial journalist Lars Schall, writing for Matterhorn Asset Management's Gold Switzerland Internet site, that the smashing of the gold price in April involved so much paper gold that it could only have been the work of the Federal Reserve.
Engdahl adds that central banks may not have possession of the gold they claim as their reserves. He cites GATA's work and says that if the gold market was fair and transparent without naked shorting of gold futures, the gold price would have reached $10,000 a few years ago.
The interview, the second part of a series of three, is headlined "There Is No Such Thing as a Free Market" and it's posted at Gold Switzerland's Internet site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
Mutiny?
Fed Chairman Bernocchio will be testifying before Congress tomorrow and Thursday...he may or may not move markets but that's not my point. It seems as if almost half of the voting Fed members are not in the same camp and in fact are close to if not actually 180 degrees opposed. THIS to my knowledge has never ever happened before. As far as I know, the Fed has almost always been a "united front" (even if misguided) and at most had 1, maybe 2 dissenters.
So the past is not present but you should understand that with almost half of the board not on the same page with a lame duck chairman who has probably no more than 6 months left, the conditions for a "mutiny" now exist. More QE, tapering QE or ending QE? It doesn't really matter because no option will work but they must at least appear unified and "confident"...because this whole show is about confidence which is the only thing left.
Since the trial balloon of "tapering" caused such large volatility, you can pretty much bet that any such talk will be of the "don't worry, it's far in the future" variety. The markets clearly "spoke", even a slowdown in monetizing will create a meltdown. So...don't taper, don't slow down and DON'T say anything that could cause confidence to buckle because any other course leads to shutdown.
As mentioned before, it has all now boiled down to "confidence", the problem is that those driving the bus are fighting over the gas, brakes and steering wheel. Not conducive to say the least when it comes to confidence. It will be quite interesting to see what is said after Thursday's final testimony as 2 weeks ago we had Fed Governor Duke resign after the Bernocchio press conference. Will more testimony about "blowing money on the streets" cause further dissent? Will we hear statements from other governors contradictory to the Chairman's? Will other Fed members change sides and sway power from the Bernocchio side? Will the markets take notice?
These are all legitimate questions, the answers will be interesting to watch as to direction and timing. As "confidence" is the only left holding the tent up I would remind you that it can be broken quickly and by something seemingly innocuous or even meaningless. We live in a hyper fast computerized world, one that carries more financial leverage and less unencumbered collateral than ever before...do you really believe the end game will give anyone not already prepared the time to do so? Regards, Bill H.
http://www.zerohedge.com/news/2013-07-16/gold-tale-two-markets
Gold: A Tale Of Two Markets
Submitted by Tyler Durden on 07/16/2013 18:26 -0400
The last six months have been tough for gold investors or as Santiago Capital's Brent Johnson self-reflectively jokes, "if adversity builds character, then we gold investors should build a new Disneyland." But as he explains in this excellent summary presentation, the critical factors requiring ownership of gold (or hard money) are still in place and in fact - in some cases - are even more prescient now than ever as we suffer through a surreality of the tale of two economic realities and the tale of two gold markets.
There are many reasons why an allocation to gold is still critical:
But in addition to these 'well-known' reasons, there is an additional factor in the gold market that bears a much closer look...
It is a Tale of Two Realities - the reality is far different from the one proclaimed each day on CNBC or CNN...
4:05 - and a Tale of Two Markets - the derivative (or paper) market and the physical market and here is where Johnson provides a useful summary of the various dislocations that are occurring...
and this is where Johnson spends the bulk of his time discussing the ETF holdings reductions, the fractionally-reserved COMEX, and the increasingly negative GOFO rates which mean - in his view - quite simply that the market values gold more highly than it values cash.
Source: Brent Johnson via Santiago Capital
Fed Chairman Bernocchio will be testifying before Congress tomorrow and Thursday...he may or may not move markets but that's not my point. It seems as if almost half of the voting Fed members are not in the same camp and in fact are close to if not actually 180 degrees opposed. THIS to my knowledge has never ever happened before. As far as I know, the Fed has almost always been a "united front" (even if misguided) and at most had 1, maybe 2 dissenters.
So the past is not present but you should understand that with almost half of the board not on the same page with a lame duck chairman who has probably no more than 6 months left, the conditions for a "mutiny" now exist. More QE, tapering QE or ending QE? It doesn't really matter because no option will work but they must at least appear unified and "confident"...because this whole show is about confidence which is the only thing left.
Since the trial balloon of "tapering" caused such large volatility, you can pretty much bet that any such talk will be of the "don't worry, it's far in the future" variety. The markets clearly "spoke", even a slowdown in monetizing will create a meltdown. So...don't taper, don't slow down and DON'T say anything that could cause confidence to buckle because any other course leads to shutdown.
As mentioned before, it has all now boiled down to "confidence", the problem is that those driving the bus are fighting over the gas, brakes and steering wheel. Not conducive to say the least when it comes to confidence. It will be quite interesting to see what is said after Thursday's final testimony as 2 weeks ago we had Fed Governor Duke resign after the Bernocchio press conference. Will more testimony about "blowing money on the streets" cause further dissent? Will we hear statements from other governors contradictory to the Chairman's? Will other Fed members change sides and sway power from the Bernocchio side? Will the markets take notice?
These are all legitimate questions, the answers will be interesting to watch as to direction and timing. As "confidence" is the only left holding the tent up I would remind you that it can be broken quickly and by something seemingly innocuous or even meaningless. We live in a hyper fast computerized world, one that carries more financial leverage and less unencumbered collateral than ever before...do you really believe the end game will give anyone not already prepared the time to do so? Regards, Bill H.
http://www.zerohedge.com/news/2013-07-16/gold-tale-two-markets
Gold: A Tale Of Two Markets
The last six months have been tough for gold investors or as Santiago Capital's Brent Johnson self-reflectively jokes, "if adversity builds character, then we gold investors should build a new Disneyland." But as he explains in this excellent summary presentation, the critical factors requiring ownership of gold (or hard money) are still in place and in fact - in some cases - are even more prescient now than ever as we suffer through a surreality of the tale of two economic realities and the tale of two gold markets.
There are many reasons why an allocation to gold is still critical:
But in addition to these 'well-known' reasons, there is an additional factor in the gold market that bears a much closer look...
It is a Tale of Two Realities - the reality is far different from the one proclaimed each day on CNBC or CNN...
4:05 - and a Tale of Two Markets - the derivative (or paper) market and the physical market and here is where Johnson provides a useful summary of the various dislocations that are occurring...
and this is where Johnson spends the bulk of his time discussing the ETF holdings reductions, the fractionally-reserved COMEX, and the increasingly negative GOFO rates which mean - in his view - quite simply that the market values gold more highly than it values cash.
Source: Brent Johnson via Santiago Capital
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