http://harveyorgan.blogspot.com/2013/07/gld-bleeds-again-down-to-96469.html
Gold closed down $12.30 to $1243.10 (comex closing time ). Silver fell by 26 cents to $19.30 (comex closing time)
In the access market at 5:00 pm, gold and silver finished trading at the following prices :
gold: 1243.90
At the Comex, the open interest in silver fell by 1503 contracts to 136,969.
Tonight, the Comex registered or dealer inventory of gold falls remains constant at 1.336 million oz or 41.55 tonnes. This is getting dangerously low. The total of all gold at the comex (dealer and customer) rose slightly again and this time it rests at 7.534 million oz or 234.33 tonnes of gold.
JPMorgan's customer inventory remained constant today at 143,212.149 oz or 4.45 tonnes. Its dealer inventory remains at 401,877.493 oz but it still must settle upon contracts issued in the June delivery month which far exceeds its inventory.
The total of the 3 major gold bullion dealers( Scotia , HSBC and JPMorgan) in its gold Comex dealer account registers only 27.044 tonnes of gold, remaining constant today.
The GLD reported another bleed of 3.61 tonnes in inventory. The SLV inventory of silver showed no gain nor loss of inventory.
Today we have great physical commentaries from Bill Holter of Miles Franklin,who talks about the potential for a comex default. Gary Savage weighs in on the arbitrage between the west's price of gold and Shanghai and this is the reason for the massive goldbleed of the GLD. Gene Arensberg of Got Gold Report discusses his technical analysis of the latest COT report where the commercials are now less than 9% from becoming net long. Jeff Neilson delivers a paper suggesting the LME is delaying the delivery process of metals by over 100 days. We are not sure if gold is included. P. Koven discusses the possibility that Barrick will write down over 10 billion usa in assets. This would approximate 10 dollars per share and Barrick is trading just above $14.00.
On the paper side of things, we have a great commentary from Michael Snyder of the Economic Collapse Blog who discusses how the USA is paying the banks not to lend.
Finally, a good commentary from Jim Quinn of the Burning Platform who discusses the deteriorating conditions in Egypt and even more troubling is the huge hatred of its citizens towards the Americans. Also tonight, zero hedge has good coverage of the problems inside Greece, Portugal and Egypt.
The total gold comex open interest rose by a rather large 2248 contracts from 409,081 up to 411,329 with gold rising by $31.0 yesterday. We are now into the the non active July contract and here the OI rests at 136 down 14 contracts . We had 1 delivery notice filed yesterday so in essence we lost 13 contracts or 1300 oz of gold standing for the July delivery month. The next active delivery month for gold is August and here the OI rose by 1760 contracts from 224,134 up to 229,822. The estimated volume today was good at 190,503 contracts.(remember no rollovers). The confirmed volume yesterday was also good at 229,822.
The total silver Comex OI surprisingly fell by 1503 contracts with silver rising in price Friday by 8 cents.Continually, the OI in silver behaves differently to gold. The total of all comex silver OI stands at 136,969 contracts. We are now into the big delivery month of July and here the OI fell by 558 contracts down to 2438. We had 500 notices filed yesterday so in essence we lost 58 contracts or 290,000 oz either rolled, was cash settled or they just pitched their contracts.The next big delivery month is September and here the OI dropped by 579 contracts down to 80,979. The estimated volume today was small coming in at 31,607 contracts. The confirmed volume yesterday was excellent at 57,479.
We had one customer deposits today :
i) Into Scotia: 32,114.065 oz
total customer deposits: 32,114.065 oz
It is very strange that having left the big delivery month of June, we are witnessing hardly any gold enter the dealer to settle upon contracts.
we had 0 customer withdrawals
i) Customer withdrawals: 0 oz
total customer withdrawals: nil oz
Today we had 0 adjustments
Thus tonight we have the following JPMorgan gold inventory: (same as Monday)
JPM dealer inventory: 401,877.493 oz 12.50 tonnes
JPM customer inventory: 143,212.149 oz or 4.45 tonnes
As we reported to you 4 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
On Friday, June 28th we had 23 notices filed and all of these were issued by JPMorgan on the customer side.
Today, 24 contracts were issued and all from the dealer or house account.
In summary on the customer side of things for JPMorgan:
Thus on JPMorgan customer side:
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 222,662.21 (which includes Friday's withdrawal customer side 4,817.25), this still leaves 103,248.79 oz that needs to be settled upon from the vaults of JPMorgan customer side.
The total dealer comex gold stays constant tonight at its nadir of 1.336 million oz or 41.55 tonnes of gold.
The total of all comex gold, dealer and customer rises slightly again tonight to 7.534 million oz or 234.33 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.
Today, July 2: 24 contracts (notices) were issued by JPMorgan's dealer or house account.
You will also recall three weeks ago on Saturday (and again on that following Monday night,) I reported that JPMorgan had 470,322.102 oz in it's dealer account. From that day until now, 68,444.61 oz was either withdrawn or adjusted out(on the dealer side), leaving the dealer side at 401,877.493 oz where it sits tonight.
On the dealer side here are the last 18 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 27.044 tonnes tonight
i) Scotia: 231,619.164 oz or 7.204 tonnes
ii) HSBC: 236,168.152 oz or 7.34 tonnes
iii) JPMorgan: 401,877.493 oz or 12.50 tonnes
total: 27.044 tonnes
Brinks dealer account has the lions share of the dealer gold at 447,198.56 oz 13.909 tonnes
Today we had 24 notices served upon our longs for 100 oz of gold (and all issued by JPMorgan dealer). In order to calculate what I believe will stand for delivery in July, I take the OI for July (136) and subtract out today's notices (24) which leaves us with 112 notices still left to be served upon our longs.
Thus we have the following gold ounces standing for metal:
48 contracts served x 100 oz = 4800 oz, + 112 contracts left to be served upon x 100 oz = 11,200 oz to give us 16,000 oz or .497 tonnes of gold. We lost 13 contracts or 1300 oz of gold that will not stand in July.
Ladies and Gentlemen: we have a three-fold problem:
i) the total dealer inventory of gold falls to a very dangerously low level of only 41.55 tonnes and none of the 9.5 tonnes delivery notices from May and the major part of the 30.70 tonnes from June issued by JPM on its dealer side has yet to leave.
ii) a) JPMorgan's customer inventory remains at an extremely low 143,212.149 oz.
If you are a customer of JPMorgan and have your gold in its vault, I think it is best to remove it before we have another fiasco like MFGlobal.
ii b) JPMorgan's dealer account rests tonight at 401,877.493 oz. However all of this gold has been spoken for plus an additional 95,122.51 oz of deficient gold.
iii) the 3 major bullion banks have collectively only 27.044 tonnes of gold left in their dealer account.
i) Out of Scotia; 55,339.47 oz
total customer withdrawal : 55,339.47 oz oz
Peter Koven | 13/07/02
Courtesy of Barrick GoldBarrick Pascua-Lama's project on the border of Chile and Argentina
The dreadful news keeps building up for Barrick Gold Corp. On Friday night, the company said it expects to take an impairment charge of up to US$5.5-billion on its bungled Pascua-Lama project. The carrying value of Pascua at the end of 2012 was US$5.25-billion, meaning Barrick could come close to writing down the entire thing.
But that’s not all. Barrick also said it is reviewing other assets for possible writedowns in the second quarter in light of weaker metal prices.
Greg Barnes, an analyst at TD Securities, pointed to two areas that carry high writedown risk. One is the copper segment, where Barrick is still carrying US$3.5-billion of goodwill related to its disastrous acquisition of Equinox Minerals Ltd. in 2011. Another is the Buzwagi mine in Tanzania, which has a book value of US$747-million and is vulnerable to weaker gold prices and higher operating costs.
"Taken together, we believe that impairment charges recognized with [second quarter] results could approach US$10-billion," Mr. Barnes said in a note.
-END-
Tuesday, July 2, 2013
GLD bleeds again down to 964.69 tonnes/Dealer inventories at comex remain constant/Customer or Client gold rises slightly/Troubles in Greece, Portugal and Egypt tonight.
Good evening Ladies and Gentlemen:
Gold closed down $12.30 to $1243.10 (comex closing time ). Silver fell by 26 cents to $19.30 (comex closing time)
In the access market at 5:00 pm, gold and silver finished trading at the following prices :
gold: 1243.90
silver: $19.35
At the Comex, the open interest in silver fell by 1503 contracts to 136,969.
The open interest on the entire gold comex contracts rose by 2248 contracts to 411,329 with gold's rise in price yesterday.
Tonight, the Comex registered or dealer inventory of gold falls remains constant at 1.336 million oz or 41.55 tonnes. This is getting dangerously low. The total of all gold at the comex (dealer and customer) rose slightly again and this time it rests at 7.534 million oz or 234.33 tonnes of gold.
JPMorgan's customer inventory remained constant today at 143,212.149 oz or 4.45 tonnes. Its dealer inventory remains at 401,877.493 oz but it still must settle upon contracts issued in the June delivery month which far exceeds its inventory.
The total of the 3 major gold bullion dealers( Scotia , HSBC and JPMorgan) in its gold Comex dealer account registers only 27.044 tonnes of gold, remaining constant today.
The GLD reported another bleed of 3.61 tonnes in inventory. The SLV inventory of silver showed no gain nor loss of inventory.
On the paper side of things, we have a great commentary from Michael Snyder of the Economic Collapse Blog who discusses how the USA is paying the banks not to lend.
Finally, a good commentary from Jim Quinn of the Burning Platform who discusses the deteriorating conditions in Egypt and even more troubling is the huge hatred of its citizens towards the Americans. Also tonight, zero hedge has good coverage of the problems inside Greece, Portugal and Egypt.
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 a rather large 2248 contracts from 409,081 up to 411,329 with gold rising by $31.0 yesterday. We are now into the the non active July contract and here the OI rests at 136 down 14 contracts . We had 1 delivery notice filed yesterday so in essence we lost 13 contracts or 1300 oz of gold standing for the July delivery month. The next active delivery month for gold is August and here the OI rose by 1760 contracts from 224,134 up to 229,822. The estimated volume today was good at 190,503 contracts.(remember no rollovers). The confirmed volume yesterday was also good at 229,822.
The total silver Comex OI surprisingly fell by 1503 contracts with silver rising in price Friday by 8 cents.Continually, the OI in silver behaves differently to gold. The total of all comex silver OI stands at 136,969 contracts. We are now into the big delivery month of July and here the OI fell by 558 contracts down to 2438. We had 500 notices filed yesterday so in essence we lost 58 contracts or 290,000 oz either rolled, was cash settled or they just pitched their contracts.The next big delivery month is September and here the OI dropped by 579 contracts down to 80,979. The estimated volume today was small coming in at 31,607 contracts. The confirmed volume yesterday was excellent at 57,479.
Comex gold/May contract month:
July 2/2013
the July opening contract month
the July opening 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
| 32,114.065 (Scotia) |
No of oz served (contracts) today
|
24 (2400 oz)
|
No of oz to be served (notices)
|
112 (11,200 oz)
|
Total monthly oz gold served (contracts) so far this month
|
48 (4800 oz)
|
Total accumulative withdrawal of gold from the Dealers inventory this month
| |
Total accumulative withdrawal of gold from the Customer inventory this month
| 34,848.35 oz |
We again had little activity at the gold vaults
The dealer again 0 deposits and no withdrawals.
We had one customer deposits today :
i) Into Scotia: 32,114.065 oz
total customer deposits: 32,114.065 oz
It is very strange that having left the big delivery month of June, we are witnessing hardly any gold enter the dealer to settle upon contracts.
we had 0 customer withdrawals
i) Customer withdrawals: 0 oz
total customer withdrawals: nil oz
Today we had 0 adjustments
Thus tonight we have the following JPMorgan gold inventory: (same as Monday)
JPM dealer inventory: 401,877.493 oz 12.50 tonnes
JPM customer inventory: 143,212.149 oz or 4.45 tonnes
As we reported to you 4 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
On Friday, June 28th we had 23 notices filed and all of these were issued by JPMorgan on the customer side.
Today, 24 contracts were issued and all from the dealer or house account.
In summary on the customer side of things for JPMorgan:
Thus on JPMorgan customer side:
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 222,662.21 (which includes Friday's withdrawal customer side 4,817.25), this still leaves 103,248.79 oz that needs to be settled upon from the vaults of JPMorgan customer side.
The total dealer comex gold stays constant tonight at its nadir of 1.336 million oz or 41.55 tonnes of gold.
The total of all comex gold, dealer and customer rises slightly again tonight to 7.534 million oz or 234.33 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.
Today, July 2: 24 contracts (notices) were issued by JPMorgan's dealer or house account.
You will also recall three weeks ago on Saturday (and again on that following Monday night,) I reported that JPMorgan had 470,322.102 oz in it's dealer account. From that day until now, 68,444.61 oz was either withdrawn or adjusted out(on the dealer side), leaving the dealer side at 401,877.493 oz where it sits tonight.
On the dealer side here are the last 18 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
Thus, 4970 notices have been issued by JPMorgan (dealer side) for the month of June and the beginning of July for 497,000 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 95,122.51 oz (401,877.493 inventory - 497,000 oz issued = 95,122.51 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 95,122.51 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
Thus, 4970 notices have been issued by JPMorgan (dealer side) for the month of June and the beginning of July for 497,000 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 95,122.51 oz (401,877.493 inventory - 497,000 oz issued = 95,122.51 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 95,122.51 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 27.044 tonnes tonight
i) Scotia: 231,619.164 oz or 7.204 tonnes
ii) HSBC: 236,168.152 oz or 7.34 tonnes
iii) JPMorgan: 401,877.493 oz or 12.50 tonnes
total: 27.044 tonnes
Brinks dealer account has the lions share of the dealer gold at 447,198.56 oz 13.909 tonnes
Today we had 24 notices served upon our longs for 100 oz of gold (and all issued by JPMorgan dealer). In order to calculate what I believe will stand for delivery in July, I take the OI for July (136) and subtract out today's notices (24) which leaves us with 112 notices still left to be served upon our longs.
Thus we have the following gold ounces standing for metal:
48 contracts served x 100 oz = 4800 oz, + 112 contracts left to be served upon x 100 oz = 11,200 oz to give us 16,000 oz or .497 tonnes of gold. We lost 13 contracts or 1300 oz of gold that will not stand in July.
Ladies and Gentlemen: we have a three-fold problem:
i) the total dealer inventory of gold falls to a very dangerously low level of only 41.55 tonnes and none of the 9.5 tonnes delivery notices from May and the major part of the 30.70 tonnes from June issued by JPM on its dealer side has yet to leave.
ii) a) JPMorgan's customer inventory remains at an extremely low 143,212.149 oz.
If you are a customer of JPMorgan and have your gold in its vault, I think it is best to remove it before we have another fiasco like MFGlobal.
ii b) JPMorgan's dealer account rests tonight at 401,877.493 oz. However all of this gold has been spoken for plus an additional 95,122.51 oz of deficient gold.
iii) the 3 major bullion banks have collectively only 27.044 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 2/2013: July silver contract month:
opening stats:
opening stats:
Silver |
Ounces
|
Withdrawals from Dealers Inventory | 4844.70 (Brinks) |
Withdrawals from Customer Inventory | 392,714.903 oz (Brinks , Delaware,) |
Deposits to the Dealer Inventory | nil |
Deposits to the Customer Inventory | 2,019,727 oz (CNT,Scotia) |
No of oz served (contracts) | 295 (1,475,000 oz) |
No of oz to be served (notices) | 2143 (10,715,000 oz) |
Total monthly oz silver served (contracts) | 1274 (6,370,000) |
Total accumulative withdrawal of silver from the Dealers inventory this month | 4844.70 |
Total accumulative withdrawal of silver from the Customer inventory this month | 401,855.17 oz |
Today, we had huge activity inside the silver vaults.
we had 0 dealer deposits and 1 dealer withdrawal.
We had 3 customer deposits:
i) Into Brinks: 249,269.910 oz
ii) Into Scotia: 131,484.89 oz
iii) Into CNT: 303,087.97 oz
total customer deposit: 683,842.77 oz
We had 1 customer withdrawals:
We had 3 customer deposits:
i) Into Brinks: 249,269.910 oz
ii) Into Scotia: 131,484.89 oz
iii) Into CNT: 303,087.97 oz
total customer deposit: 683,842.77 oz
We had 1 customer withdrawals:
i) Out of Scotia; 55,339.47 oz
total customer withdrawal : 55,339.47 oz oz
we had 3 huge adjustments today
i) out of JPMorgan 5230.000 oz was adjusted out of the dealer and into the customer.(.again exact number x.0000)
ii) Out of CNT: 309,049.16 oz out of the customer and into the dealer.
iii) Out of Brinks: 14,821.20 oz out of the customer and into the dealer.
iv) Out of Scotia: a whopping 1,863,417.345 oz out of the customer and back into the dealer.
i) out of JPMorgan 5230.000 oz was adjusted out of the dealer and into the customer.(.again exact number x.0000)
ii) Out of CNT: 309,049.16 oz out of the customer and into the dealer.
iii) Out of Brinks: 14,821.20 oz out of the customer and into the dealer.
iv) Out of Scotia: a whopping 1,863,417.345 oz out of the customer and back into the dealer.
Registered silver at : 45.056 million oz
total of all silver: 166.745 million oz.
The CME reported that we had 295 notices filed for 1,475,000 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 1274 x 5,000 oz per contract = 6,370,000 oz + 2143 notices left to be served upon our longs x 5000 oz per contract = 10,715,000 to give us a total of 17,085,000 oz
we lost only 58 contracts or 290,000 oz will not stand in July
we lost only 58 contracts or 290,000 oz will not stand in July
Thus here are the standings:
1240 contracts served x 5000 oz per contract (served) or 6,370,000 oz + 2143 notices x 5,000 oz or 10,715,000 = 17,085,000 oz,
Now let us check on gold inventories at the GLD first:
July 2.2013: another bleed of 3.61 tonnes
July 1/2013: we had another nose bleed of 1.2 tonnes of gold.
July 2.2013: another bleed of 3.61 tonnes
Tonnes964.69
Ounces31,015,807.97
Value US$38.8289 billion
July 1/2013: we had another nose bleed of 1.2 tonnes of gold.
Tonnes968.30
Ounces31,131,769.95
Value US$38.670 billion
News and views....... Gata
The first commentator to observe this was Jim Willie. Now we have gold trader Gary Savage believe that gold is sold from the GLD where the price is anywhere from 30 -50$ difference from the Shanghai gold metal exchange. This is why the gold is rapidly disappearing from the GLD and heads eastward to China.
(courtesy Gary Savage/Tekoa da Silva/GATA)
Editor's Note:
Several queries have been received that the "LME" (London Metal Exchange) is not the same entity as the "LBMA" (London Bullion Market Association).
The LME was formed in 1877. The LBMA was only formed in 1987, but it was created out of the London Gold Market and London Silver Market "whose origins go back to the mid-nineteenth century".
http://www.lbma.org.uk/pages/index.cfm?page_id=9&title=about_the_lbma
In fact; these are all "heads" of the same (financial) Hydra.
(courtesy Gary Savage/Tekoa da Silva/GATA)
Another gold market observer suspects West-to-East arbitrage
Submitted by cpowell on Tue, 2013-07-02 20:27. Section: Daily Dispatches
4:26p ET Tuesday, July 2, 2013
Dear Friend of GATA and Gold:
Bull Market Thinking's Tekoa da Silva today interviews newsletter writer and gold trader Gary Savage about market manipulation and finds Savage joining those who suspect that it has created an arbitrage play -- converting discounted gold futures to metal in the West and shipping it to the East to collect the high premiums on real metal there. Savage adds that manipulated markets tend to snap back violently. Maybe, but then market manipulations don't always have central banks behind them. The interview is posted at Bull Market Thinking's Internet site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
end.
UBS opens a vault in Singapore due to huge demand in that region:
(Freeman/Wall Street Journal)
UBS opens gold vault in Singapore
Submitted by cpowell on Tue, 2013-07-02 18:20. Section: Daily Dispatches
By Francesa Freeman and Clementine Wallop
The Wall Street Journal
Tuesday, July 2, 2013
The Wall Street Journal
Tuesday, July 2, 2013
Swiss bank UBS said Tuesday that for the first time it has started storing gold in Asia, a move that reflects continued strong demand for the precious metal in the region as Western investors dump their holdings.
Asia's influence in the gold market has been growing in recent years, with China and India vying for the position of the world's top gold consumer. According to the metals consultancy GFMS, the two countries together accounted for 61% of global physical gold bar demand last year, more than double the level a decade earlier
This means that, despite the recent historic tumble in gold prices, Asian investors are still eager to invest in the metal and store it closer to home, said Peter Kok, regional market manager for Singapore and Malaysia at UBS Wealth Management. "We have recognized for some time the ever-growing demand for gold among Asian clients and the demand for gold custody services in Asia," he said.
UBS is one of the banks whose trading in gold sets prices every day in London. These so-called fixings are used to determine spot prices for the precious metal, including for sales from mining companies to gold refineries.
The leased vault that the bank opened to clients in May can hold up to 60 metric tons of gold -- worth around $2.4 billion at current prices -- and is located in Singapore's high-security Freeport, said Mr. Kok. Singapore will be the only location outside Switzerland in which UBS stores the precious metal, he said.
Other banks have made similar moves. Last month, Deutsche Bank AG said it had opened a 200-ton-capacity gold vault in the Singapore Freeport. In 2010, JP Morgan Chase also opened a gold vault in Singapore.
"Whoever expects incomes in China and India to continue rising and real interest rates to remain negative or low will by default recognize gold as the beneficiary of these developments," said Ronald-Peter Stoferle, co-founder of wealth management firm Incrementum Liechtenstein.
Gold prices plunged 23% in the April-to-June period, the metal's biggest quarterly drop since modern gold trading began in the 1970s. The metal hit a near three-year low at $1,180.20 an ounce on the European spot market Friday.
"Notwithstanding the drop in gold prices…clients tend to hold a long-term view on gold and enjoy the stability and security benefits which come with holding gold as an asset class," said Mr. Kok.
The eastward shift is also a response to Singapore's decision last year to scrap a goods-and-services tax on gold in a bid to help boost its share of global gold demand to 10% to 15% within a decade from about 2% in 2012.
end
According to Gene Arensberg the commercials are not positioning themselves for any downfall in gold price
(courtesy Gene Arensberg/Got Gold Report/GATA
Gene Arensberg: Comex commercials nearly net long gold
Submitted by cpowell on Tue, 2013-07-02 17:49. Section: Daily Dispatches
1:46p ET Tuesday, July 2, 2013
Dear Friend of GATA and Gold:
Gene Arensberg's new edition of the Got Gold Report focuses on the remarkable transformation of the largest commercial traders from short to long gold.
Arensberg writes:
"As of this June 28 report (data as of Tuesday, June 25), the commercial hedgers had their least net short (least number of net hedges) for gold as a percentage of the total Comex open interest (9%) since December 2001, which coincidentally was the last time commercial traders as a group were net long gold futures. Gold changed hands for $270 the ounce back then, by the way.
"So one might conclude that with gold in the $1270s last Tuesday, the combined commercial traders of gold futures' expectations that the gold price would fall further than it already has is equivalent to when gold was trading in the $270s (not a misprint), three months after the 9-11 terrorist attacks. ... That is to say that the commercials are not positioning for further gold weakness if their net futures positioning is any guide."
The new GGR is headlined "Comex Commercials Nearly Net Long Gold" and it's posted in the clear here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
Explaining why contracts seemingly remain unsettled ( not just in London , but also NY ? )
Jeff Nielson has been receiving details that the LME is delaying bullion delivery in London up to 100 days. They are issuing a second 3 month forward and no compensation. If this is true, then this is a default. And if this is going on in London, I can assure you it is already present at the Comex!!
The LME is a division of the London Bullion Metals Association (LBMA)
Written by Jeff NielsonMonday, 01 July 2013 13:59
As the rampant criminality in bullion markets becomes more and more apparent (even to outside observers); we get another anecdote from the Corporate Media illustrating the level of fraud/manipulation in unequivocal terms. We’re told that bullion-buyers in London must now wait more than 100 days to take delivery of the bullion for which they have already paid.
The comedic drones at Bloomberg, and officials of the London Metal Exchange itself would have us believe this is due to “warehouse queues.” While precious metals bulls undoubtedly appreciate the imagery implied of a 100-day line-up of armored cars waiting to load their bullion – in the middle of this “bear market” – the implication is fallacious.
In an era of just-in-time inventories; the notion that there can be a 100-day backlog to load bullion into armored cars with the metal already sitting in the warehouse is ludicrous. Clearly what the LME is really reporting here is a greater-than-three-month delay to refine the gold (or silver) being purchased here – and then ship it to their warehouse.
In other words, the “bullion” which traders believe they are purchasing today is in fact merely ore which hasn’t even been dug out of the ground yet. While gold and silver miners have nearly eliminated the suicidal “hedging” which the banking cabal used to suppress the sector even further in previous years; the banksters are now effectively “forward-selling” the gold and silver of these mining companies – by selling “gold” and “silver” which doesn’t even exist yet.
Essentially, the purchasers of futures contracts at the LME who request to “take delivery” of the metal they have purchased are simply given a new futures contract instead of the metal they now legally own. This second, unofficial, illegal futures contract is simply a 3+ month wait for buyers to receive what they have paid for – where the buyers aren’t compensated in any way for this effective default (on the first contract), and the banksters have free use of the buyers’ money for that period.
Meanwhile, behind the scenes we know what is taking place, since it’s been widely reported since 2008. LME shills quietly contact buyers individually and inform them that if they don’t want to wait more than 3 months to take delivery of what they already own that there is another option: cash settlement.
As with these failures to deliver by the LME; cash settlement represents another category of bullion default. The LME can’t supply the metal, and so it buys off buyers with large bribes to ward-off the official bullion-default which becomes more inevitable by the day.
How large are the bribes? Even as far back as 2009 it was rumored that the normal size of the “premium” paid to buy-off traders was approximately 25%. Naturally such bribes will be accompanied by non-disclosure clauses – conveniently prohibiting buyers from confirming these serial inventory defaults at the LME (and New York as well?).
With current delays to take delivery having now reached such absurd extremes, there is no longer any doubt that the LME bullion warehouses are empty. This means that any cash settlements taking place can no longer be characterized as mere attempts to “conserve inventories.”
Rather, what we are dealing with here is now open fraud. Selling futures contracts to purchase bullion at specific dates, knowing that (in fact) that “bullion” does not exist. The cash settlement becomes the legal “consideration” confirming the fraudulent transaction: bait-and-switch.
Buyers think they are purchasing “bullion”, when all the LME banksters are really offering buyers is interest on their paper. It’s a generous rate of interest, to be sure, but it in no way alters the nature of the bait-and-switch being perpetrated at the LME – and thus the size of the bribe itself can in no way negate the serial acts of fraud being committed by the LME.
The criminal manipulation of prices is now being accompanied by criminal “settlement” of contracts in London. We must suspect that New York is near or at the same level of criminality in the settlement of its own contracts. Indeed, with the Attorney General of the United States having publicly pledged to cover-up all the crimes committed by these bullion banks; they could commit the same crimes being committed by the LME banksters with complete impunity.
Meanwhile, the only thing more perverse than trading in these official, fraudulent paper-bullion markets is the reporting on this sector by the Corporate propaganda machine. It continues to refer to the fraudulent manipulation of bullion prices as a “bear market”.
We have India engaging in three, extreme, rapid-fire measures to attempt to suppress gold demand in its own market; because at current, fraudulent prices Indians were literally buying-up every available ounce of gold on the planet (with some competition from the Chinese). Meanwhile, we also see recent data indicating India is now importing silver at an annualized rate of 10,000 tonnes per year.
This is more than double the rate of silver-importing which occurred in India during the Great Take-Down of bullion prices which occurred in the Crash of ’08. But after five more years of silver inventory depletion; the silver market is even less-capable of absorbing such rabid demand for real metal today than it could in 2008.
Now we see that the official bullion exchange in London is unable to fill legally contracted orders. Previously, the U.S. Mint suspended production (and sales) of some of its gold coins, despite a statutory requirement that it always produce sufficient supply to meet demand. We must presume that the reason why the U.S. Mint broke its own law was simply lack of supply.
To refer to the precious metals sector where supply-exhaustion and inventory defaults are now facts of life as a “bear market” is nothing less than despicable. It is a perverse lie with only one purpose: to attempt to legitimize the fraudulent take-down of precious metals markets.
“Why are prices falling so far/so fast? Because it’s a bear market.”
(“Why is it a bear market? Because prices are falling so fast.”)
It is nothing but nonsensical, circular reasoning; but it’s the best that the Corporate Media can do. Having spent the last 3 years calling gold (and silver) “a risk asset” one day, and “a safe haven” the next; media shills have contradicted themselves so often that they no longer even attempt any pseudo-analysis of fundamentals.
There is nothing but the “bear market” lie as a near-transparent façade to mask open crime in these markets. But it’s not merely the banksters who have openly exposed their own criminality. When we have prices plummeting lower while demand is so frenzied that we are now seeing inventory-defaults in the world’s largest official exchange(s); it is impossible for any regulator not to see (and comprehend) such a perverse imbalance in these markets.
There is no rational or legal explanation for a market where prices are falling despite such extreme demand that inventory-default is now taking place. “Price” (i.e. a rising price) is the mechanism – the only mechanism – which can relieve such demand in markets, and restore at least some sort of equilibrium.
The fact that our pseudo-regulators allow prices to continue to be suppressed while demand literally “demands” (much, much) higher prices is nothing less than an implicit confession that these Charlatans are the direct accomplices of the banksters. Let no one be fooled when the laughable Bart Chilton engages in another one of his “good cop/bad cop” farces with Gary Gensler at the CFTC.
The massive, unprecedented bullion demand (in the face of falling prices) is unequivocal, empirical proof of the criminality of the banksters in these markets. The failure of our regulators to intervene in this prima facie crime is unequivocal, empirical proof of their own complicity in this crime.
(Official) bullion default or (unofficial) market Decoupling is now an absolute near-term certainty, unless prices are allowed to reverse radically higher in the very near future. Indeed, the speed with which these markets are being driven to inventory default must lead one to suspect that such a default is the intent of the banking cabal.
While we cannot know what (evil) illegal schemes the banksters have in store for us next, we do know the inevitable result of their current crimes: (real) bullion markets drying-up completely. The tidal wave of bullion-buying from India and China alone must soak-up any/all available supply.
As the line goes from all of those corny, TV infomercials; “buy now, while supplies last.”
Editor's Note:
Several queries have been received that the "LME" (London Metal Exchange) is not the same entity as the "LBMA" (London Bullion Market Association).
The LME was formed in 1877. The LBMA was only formed in 1987, but it was created out of the London Gold Market and London Silver Market "whose origins go back to the mid-nineteenth century".
http://www.lbma.org.uk/pages/index.cfm?page_id=9&title=about_the_lbma
In fact; these are all "heads" of the same (financial) Hydra.
If done, the writedown would equal $10 dollars per share. Barrick is trading at 14.51 USA
Barrick Gold writedowns could approach US$10-billion: TD
Peter Koven | 13/07/02
Courtesy of Barrick GoldBarrick Pascua-Lama's project on the border of Chile and Argentina
But that’s not all. Barrick also said it is reviewing other assets for possible writedowns in the second quarter in light of weaker metal prices.
Greg Barnes, an analyst at TD Securities, pointed to two areas that carry high writedown risk. One is the copper segment, where Barrick is still carrying US$3.5-billion of goodwill related to its disastrous acquisition of Equinox Minerals Ltd. in 2011. Another is the Buzwagi mine in Tanzania, which has a book value of US$747-million and is vulnerable to weaker gold prices and higher operating costs.
"Taken together, we believe that impairment charges recognized with [second quarter] results could approach US$10-billion," Mr. Barnes said in a note.
Bill Holter seems to think like myself that we have a potential default at the comex.
This is a must read..
(courtesy Bill Holter/Miles Franklin)
Where is the Gold? ...and where did it go?
June has come and gone and I have seen no movement from JP Morgan's Gold vaults other than 217,000 ounces withdrawn from the customer (eligible) holdings. They issued as you know roughly 6,000 (600,000 ounces) contracts for June delivery. Gold has not entered their vault, very little has been adjusted with other custodians and very little has been adjusted between registered and eligible. I find it very hard to believe that more than a very small percentage of buyers who would stand for delivery would just take a warehouse receipt and not have the Gold moved...somewhere, somehow. Either moved from the registered vault to the eligible, from JP Morgan to another (their own) custodian or just plain delivered out.
If you look around the globe and outside of the COMEX system you will see that buyers, everywhere, are taking delivery. They are selling the ETF's and withdrawing the metal, they are calling coin dealers and having it delivered. The Gold rush as you know began as the futures markets crashed the price, physical buyers have gone on a rampage. So if this is true everywhere else in the world, why do we not see movement from JP Morgan's vaults?
A few months back you will recall that ABN AMRO flat out defaulted on their customers and told them that they will no longer deliver metal out while Germany was told by the U.S. Fed that it would take 7 years to ship their "allocated" metal to them. I don't get it? The LME is now telling customers that http://www.bloomberg.com/news/ 2013-07-01/lme-seeks-to- reduce-lines-at-warehouses- where-wait-is-100-days.html aluminum and copper (I have e-mailed the author to find out which metals other than these are affected) which now take 100 days or more delivery time will be shortened.
Aluminum? Copper? Other than my first thought that 100+ days is actually a default, does anything else strike you as "funny" (well, not really)? If the LME can deliver 1,000's of tons upon tons upon tons of aluminum and copper..."in more than 100 days but we are striving to shorten the delivery time"...how hard would it be to ship ALL of Germany's Gold in 100 days?
Aw heck, so you need to line up armed guards...let's double it and say 200 days! So...ABN Amro promises that they have the Gold but they won't deliver it as does the Fed to Germany. Ummmm, pretty obvious that the German Gold is not where it is supposed to be and what eventually (maybe? most likely not) gets delivered is still in the ground today. The bottom line in my opinion is that if the Gold was there it would get delivered promptly, the fact of a delay, any delay tells me that it is gone.
We also had news out yesterday suggesting that China has imported 800 tons of Gold already this year, that's 35% of all the Gold mined from the planet in one year...oh wait, no it's not...the 800 tons was done in 6 months alone! They are on pace to import 1,600 tons or better than 70% of all Gold mined in the world. India was on pace to import 1,000 tons or so for the year until the government basically banned coin and bullion sales so the population has switched over to Silverhttp://www.zerohedge.com/ contributed/2013-07-02/silver- winning-india%E2%80%99s-%E2% 80%9Cwar-gold%E2%80%9D .So the first 6 months of the year saw China and India buy more Gold than was even produced globally...which doesn't include any of the massive demand seen elsewhere in the world....Which totally explains why the "price" went down...in a panic fashion, everyone must have been so scared that they bought Gold...which pushed the price down further...and made owners even more scared...because Gold might even default and go to zero...oh never mind!
I am sorry, we have shortages around the world, premiums around the world, "monkey business" where it comes to "custodianship"...we are in the jaws of an outright default. Default, as in everything, everywhere! This is not rocket science or brainstorming, just plain common sense. I don't give a crap what Armstrong says or anyone else, if you are not turning your financial assets into real assets now, while you have the chance (Gold and Silver in particular) you are making a huge mistake! I don't care what the prices of Gold or Silver are or "what they do". All I know is that strange stuff is happening with supply, price and custodians which has caused demand to rise in response. Knowing that 100 paper ounces "exist" for every one single real ounce that actually does exist is enough for me. Up, down or sideways I don't care because the music is going to completely stop and you will either have ounces or you won't.
Do I know where the ounces are or who really has them? No, not really because you don't know who or what to trust or believe anymore (especially with public defaults already happening which are not called defaults and disclaimers warning us of the validity of inventory numbers). I do know something for sure, Gold has been and is moving from West to East...real Gold, not paper receipts that will end up worthless. Regards, Bill H.
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