http://harveyorgan.blogspot.com/2013/08/august-27gld-increases-gold.html
Tuesday, August 27, 2013
august 27/GLD increases gold inventory/Comex dealer gold inventory remains constant/total dealer and customer inventory remain constant/gold rises to $1417.90 and silver to $24.65
Good evening Ladies and Gentlemen; (august 27.2013)
In the access market today at 5:15 pm tonight here are the final prices:
gold: $1415.60
Today was options expiry on the gold and silver contracts. Generally the bankers love to whack gold and silver prior to the expiry to prevent contracts on these precious metals from being purchased. In the wee hours of the morning, they did drive gold and silver down but tensions in Syria mounted and that caused gold and silver to rise were they finished at $1417.90 for gold and $24.65 for silver. Today we saw a huge whack in the gold/silver equity shares and that is a good sign that the bankers are trying to mobilize forces and try another attack for tomorrow. We will see how this plays out.
Tonight, the Comex registered or dealer inventory of gold remains constant. It is still well below the 1 million oz mark, at 768,797 oz or 23.91 tonnes. This is dangerously low especially when we are closing in on the final few days of the August delivery month. With no gold entering the dealer side it seems almost impossible for the bankers to settle upon longs once the December contract hits. The total of all gold at the comex (dealer and customer) tonight rests just above the 7 million oz barrier resting at 7.002 million oz or 217.81 tonnes.
JPMorgan's customer inventory remains constant tonight at 167,056.49 oz or 5.196 tonnes. It's dealer inventory remains constant at 286,485.185 oz (8.91 tonnes)
The total of the 3 major gold bullion dealers( Scotia , HSBC and JPMorgan) in its Comex gold dealer account remain constant in gold inventory tonight and its resting inventory is 19.14 tonnes of gold. Brinks continues to record a low of only 4.03 tonnes in its dealer account.
The GLD reported a gain in its inventory tonight of one tonne with a reading of 921.13 tonnes of gold. We had no change in the silver inventory at the SLV and thus the reading of the SLV inventory tonight is 339.373 million oz.
On Friday, we recorded our 36th consecutive trading day for negative GOFO rates. Today we record our 37th consecutive negative trading for GOFO.
Here are today's readings with Friday's comparison:
One month: -.05000% ( vs yesterday's -.10833%
Two month: -04167% vs yesterday's -.09333%
Three Months: -03167% vs yesterday's -.07667%
Six months: + 01167% vs yesterday's -0100%)
Basically it means that gold is dearer in the present than in the future and it also signifies that London has scarce supplies of good delivery bars. No doubt that China, being a huge buyer of physical gold is responsible for this.
On the physical side of things, we have important commentaries from Bill Holter on the true meaning of permanent gold backwardation. We have a commentary from Lawrence Williams on Grant William's views on the fast moving gold freight train. Peter Cooper of Arabian money talks about the huge imports of gold into China.
We have no activity in the Comex gold vaults today.
"Permanent backwardat
Few people realize that around 2008 central banks turned from being net sellers of gold to net buyers, and began to accumulate gold reserves in a big way for the first time since the 1970's, when Nixon slammed shut the gold window.
This is based on what they report officially to the IMF. There is strong anecdotal evidence that the actual turn in buying occurred quite a few years earlier, and more in line with the rapid appreciation in price as selling declined.
First the selling slowed and the stealth buying began, particularly in Asia and the Mideast.
There was a sea change in the gold market as central banks stopped supplying official gold to the bullion banks in order to keep the price down.
The bottom in the gold price occurred when Gordon Brown threw England's gold with a pre-announcement into the market in order to bail out any bullion banks that were caught flatfooted 'in the turn' in May of 1999. This was the first clear sign that change was in the wind.
The Big Turn occurred in 2007 when the western central banks capitulated, and realized that they must allow the price of gold to rise, or exhaust their own gold reserves in the process. The central bank change did not cause this, although it certainly reinforces the trend. It is a symptom of the great change and the first unmistakable manifestation of the currency war. Although astute observers could see this coming in the aftermath of the Asian currency crisis in the 1990's and the Russian default on the rouble.
Gold commentators who do not realize this significant dimension of what has occurred and account for it in their thinking have been simply left behind, lost in an outdated frame of reference. They do not see the forest for the trees.
This is about much more than gold and silver. This is about a major, an historic change in the composition of the world's global currencies and trading system. The dollar regime that has been in place since the end of World War II is undergoing a major change.
If there is anything that shocks me, it is how few economists understand it, or even realize it. I suppose that is how it is when the big things occur. Most of the operational people are left staring at the old paradigms, and wondering why their models are malfunctioning.
Rather than accept the change and understand it, they get busy trying to prove that it is not happening, since they have such a vested interest in the past. And so we see the occasional hysterical outburst from the status quo, that what is indeed happening does not make sense, and is irrational.
Their reasoning begins to take on the shrill character of propaganda as they do their duty for their powerful patrons. And they further discredit and isolate themselves from things as they are, and people who have eyes to see.
The Anglo-Americans will be the last to let this folly go. And I hear there is quite a bit of official irritation with those bullion banks who do not wish to go along with them. They prefer to get out of this while they can with their balance sheets intact, even to the extent of getting out of the business, and enduring subtle retaliation for their recalcitrance.
I cannot foresee exactly where we are going, no one can, because there are simply to many exogenous variables. But I highly doubt that it will be back to where we have been.
Gold closed up $24.90 to $1417.90. (comex closing time ). Silver was up 65 cents to $24.65 (comex closing time).
In the access market today at 5:15 pm tonight here are the final prices:
gold: $1415.60
silver: $24.50
Today was options expiry on the gold and silver contracts. Generally the bankers love to whack gold and silver prior to the expiry to prevent contracts on these precious metals from being purchased. In the wee hours of the morning, they did drive gold and silver down but tensions in Syria mounted and that caused gold and silver to rise were they finished at $1417.90 for gold and $24.65 for silver. Today we saw a huge whack in the gold/silver equity shares and that is a good sign that the bankers are trying to mobilize forces and try another attack for tomorrow. We will see how this plays out.
At the Comex, the open interest in silver fell dramatically by 6701 contracts to 124,649 with silver's rise in price by 24 cents (Monday) . We must have had a lot of short covering yesterday.
The open interest on the entire gold comex contracts rose by 1548 contracts to 381,455 with gold's fall in price of $2.70 on Monday .
Tonight, the Comex registered or dealer inventory of gold remains constant. It is still well below the 1 million oz mark, at 768,797 oz or 23.91 tonnes. This is dangerously low especially when we are closing in on the final few days of the August delivery month. With no gold entering the dealer side it seems almost impossible for the bankers to settle upon longs once the December contract hits. The total of all gold at the comex (dealer and customer) tonight rests just above the 7 million oz barrier resting at 7.002 million oz or 217.81 tonnes.
JPMorgan's customer inventory remains constant tonight at 167,056.49 oz or 5.196 tonnes. It's dealer inventory remains constant at 286,485.185 oz (8.91 tonnes)
The total of the 3 major gold bullion dealers( Scotia , HSBC and JPMorgan) in its Comex gold dealer account remain constant in gold inventory tonight and its resting inventory is 19.14 tonnes of gold. Brinks continues to record a low of only 4.03 tonnes in its dealer account.
The GLD reported a gain in its inventory tonight of one tonne with a reading of 921.13 tonnes of gold. We had no change in the silver inventory at the SLV and thus the reading of the SLV inventory tonight is 339.373 million oz.
On Friday, we recorded our 36th consecutive trading day for negative GOFO rates. Today we record our 37th consecutive negative trading for GOFO.
Here are today's readings with Friday's comparison:
One month: -.05000% ( vs yesterday's -.10833%
Two month: -04167% vs yesterday's -.09333%
Three Months: -03167% vs yesterday's -.07667%
Six months: + 01167% vs yesterday's -0100%)
Basically it means that gold is dearer in the present than in the future and it also signifies that London has scarce supplies of good delivery bars. No doubt that China, being a huge buyer of physical gold is responsible for this.
On the physical side of things, we have important commentaries from Bill Holter on the true meaning of permanent gold backwardation. We have a commentary from Lawrence Williams on Grant William's views on the fast moving gold freight train. Peter Cooper of Arabian money talks about the huge imports of gold into China.
****
Comex gold/August contract month:
August 27.2013
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
| nil |
No of oz served (contracts) today
|
46 ( 4600 oz)
|
No of oz to be served (notices)
|
452 (45,200 oz)
|
Total monthly oz gold served (contracts) so far this month
|
3647 (364,700 oz)
|
Total accumulative withdrawal of gold from the Dealers inventory this month
|
58,327.81 oz
|
Total accumulative withdrawal of gold from the Customer inventory this month
| 228,899.32 oz |
We have no activity in the Comex gold vaults today.
****
August 27/2013: July silver contract month:
August contract month
August contract month
| Silver |
Ounces
|
| Withdrawals from Dealers Inventory | nil |
| Withdrawals from Customer Inventory | 719,649.823 oz (Scotia,CNT) |
| Deposits to the Dealer Inventory | nil |
| Deposits to the Customer Inventory | nil |
| No of oz served (contracts) | 2 ( 10,000 oz) |
| No of oz to be served (notices) | 1 (5,000 oz) |
| Total monthly oz silver served (contracts) | 231 (1,155,000) |
| Total accumulative withdrawal of silver from the Dealers inventory this month | 3,026,205.5 oz |
| Total accumulative withdrawal of silver from the Customer inventory this month | 4,880,049.4 oz |
Today, we had tiny activity inside the silver vaults.
****
August 27.2013: we gained exactly 1 tonne of gold.
Tonnes921.03
Ounces29,612,040.73
Value US$42.012 billion
****
A very important commentary, courtesy of Bill Holter
(courtesy Bill Holter/Miles Franklin)
A very important commentary, courtesy of Bill Holter
(courtesy Bill Holter/Miles Franklin)
"Permanent backwardat
Professor Antal Fekete wrote into Mineweb last week regarding the concept of "permanent backwardation" where Gold will "tend to infinity and paper to zero". Mr. Fekete's piece was commented on here http://www.mineweb.com/
Regards, Bill H.
Huge imports of gold into China mean higher prices
(courtesy Peter Cooper/Arabian money)
Exponential surge in Chinese gold buying points to higher prices very soon
Posted on 27 August 2013 with no comments from readers
The chart below showing monthly net Chinese imports of gold from Hong Kong shows an exponential curve. This is China taking advantage of the stupid manipulation of gold prices by central banks to accumulate more real assets at low prices.
Why are the wise Chinese doing this? Simple really, they note that money printing by central banks is going to blow up the global monetary system and want to be invested in the one money that these guys cannot print.
Real money
The Chinese invented paper. They know its strengths and weaknesses. As a money it is always a disaster over time because its value is eroded by governments printing too much of it. That is happening now with great abandon.
Back in April this year the Bank of Japan took it to a new level with a highly aggressive money printing program. Not by coincidence that is when the gold market was deliberately manipulated lower as a way to disguise this obvious inflationary time bomb.
When will the pigeons come home to roost on this one? It’s already happening with interest rates on bonds rising by the most ever this summer. US mortgage rates have jumped by 25 per cent in a few months and the housing recovery is over in the most recent data series.
Bond bear market
The 30-year bull market in US treasuries is history and now heading in the opposite direction. It makes excellent sense to be out of bonds in a falling market, and that is what the Chinese have been doing by buying gold.
Now the rest of the world will begin to follow them. But really it is too late, the massive transfer of real money from West to East, or China at least not Japan, has already happened. Just look at this chart:
For ArabianMoney’s advice on the best ways to invest in gold and silver see the main article in our investment newsletter this month for subscribers only (click here).
Ing, Leeb, Russell, Rule analyze gold at King World News
Submitted by cpowell on Tue, 2013-08-27 21:15. Section: Daily Dispatches
5:14p ET Tuesday, August 27, 2013
Dear Friend of GATA and Gold:
King World News is loaded with gold-related interviews today.
John Ing, CEO of Maison Placements Canada in Toronto, says that because there is so much unbacked derivative paper floating around the commodity markets, he now expects short squeezes at all gold option expirations:
Professor Antal Fekete wrote into Mineweb last week regarding the concept of "permanent backwardation" where Gold will "tend to infinity and paper to zero". Mr. Fekete's piece was commented on here http://www.mineweb.com/
Let me try to simplify this view (and one that I believe to be 100% on the mark). The current backwardation is the result of enough market participants finally figuring out what has been happening for years now. Central banks have leased Gold out yet still kept that Gold on their books. The result was that "supply" and availability appeared to be far larger than it truly was. Gold was leased and then sold into the market, it was still shown on the books of the central banks and ALSO on its new owner's books. We also have seen "pooled" accounts and ETF's where the metal turned out no to be there and may (probably) never have been purchased in the first place. The same ounce of Gold was "sold" time after time and over and over. Gold was here...there...and everywhere. As the author so aptly points out, people started to wake up when Germany was told to wait 7 years for their small amount of Gold to be delivered. (As a side note, please also remember that when physical Gold is sold, 70% of it gets melted down and becomes either jewelry or is "used" in products so that it is no longer in deliverable form).
The above said, investors are now wondering "where is the Gold?" and they don't like the answers they are getting. They are "voting" with their financial transactions. Investors are going to "cash and carry" on their own. They are buying physical metal and asking for delivery, they are also either buying less or outright selling "paper" Gold products. This is creating a "two tier" market where the price of REAL Gold is higher than "paper" which represents Gold. THIS in essence is backwardation in itself and "premiums" paid for physical metal was an early warning. Investors want Gold NOW and in hand because they either do not trust or believe that promises of future Gold can or will be kept. This by the way is a self fulfilling prophecy because there is only so much Gold that can be had. The higher that current demand goes, the more that inventories will be depleted. The more that inventories are depleted the faster new demand to get it "now" becomes. Basically the recipe for a buying panic is evolving. This has taken far longer than I believed it would but it can be likened to the "flat Earther's" viewpoint holding sway until Magellan (looked into empty vaults) and circumnavigated the globe.
I mentioned above that this process would become "self fulfilling", you are watching that happen in real time right now. More and more there are "light bulbs" getting turned on all over the world. More and more investors know that "something just ain't right", too many things don't make sense and investors are reacting with their feet (money). This eventually had to happen as Gold is a finite money and takes capital, labor and equipment to "create" while fiat currency whether they be Dollars, Euro's, Pounds or Yen can be created at will, in any amounts... and for FREE!
I will ask you this, how could it ever be possible for any of these currencies to appreciate in the long term versus Gold? For a "time", the illusion of appreciation can be maintained and it was from 1980-1999. "Pressure valves" were invented (ETF's, unallocated holdings and pooled accounts, futures, etc.) and used to create the "tops" which were pointed at as talking points of proof. "Proof" that the bull market was over and the time to exit Gold and "come back into the system" had arrived.
This worked in 1980 and for 20 years after. We still had the ability to lever up anything and everything not nailed down, the "paper" products were still yet to come on the scene and central banks still had the ability to lease the family jewels. These tactics have come, been tried, used and abused. Now we face "permanent backwardation" where Gold in hand is valued higher than Gold "in the future". Simply put...a two tier market where real Gold is worth more than the "promise" of Gold in the future and worth more than any piece of paper representation of Gold. While this is still just emerging, It will become more and more noticeable in price. ...And the more noticeable it becomes...the faster it will happen. Like I said above...the recipe for a buying panic! ...please remember that "supply" is absolutely finite in a world where demand can be virtually infinite so "guessing" at a price...any price...is at best a "guess".
One final thought, if there was no Gold to be had at the mint or from refineries, if the mines just sat on and held their production, if your coin dealer could not source metal and no one was offering Gold for sale either privately or over the internet, what would an ounce of Gold be worth? The answer is "a lot". How much exactly no one knows but during a reset of price there will be no trading...until a new price balances out and coaxes enough sellers out of hiding to meet the buyers. You MUST be in position before this happens. 5 years, 6 months or even 1 second too late will equate to the rest of your lifetime!
Regards, Bill H.
Huge imports of gold into China mean higher prices
(courtesy Peter Cooper/Arabian money)
Huge imports of gold into China mean higher prices
(courtesy Peter Cooper/Arabian money)
(courtesy Peter Cooper/Arabian money)
Exponential surge in Chinese gold buying points to higher prices very soon
Posted on 27 August 2013 with no comments from readers
The chart below showing monthly net Chinese imports of gold from Hong Kong shows an exponential curve. This is China taking advantage of the stupid manipulation of gold prices by central banks to accumulate more real assets at low prices.
Why are the wise Chinese doing this? Simple really, they note that money printing by central banks is going to blow up the global monetary system and want to be invested in the one money that these guys cannot print.
Real money
The Chinese invented paper. They know its strengths and weaknesses. As a money it is always a disaster over time because its value is eroded by governments printing too much of it. That is happening now with great abandon.
Back in April this year the Bank of Japan took it to a new level with a highly aggressive money printing program. Not by coincidence that is when the gold market was deliberately manipulated lower as a way to disguise this obvious inflationary time bomb.
When will the pigeons come home to roost on this one? It’s already happening with interest rates on bonds rising by the most ever this summer. US mortgage rates have jumped by 25 per cent in a few months and the housing recovery is over in the most recent data series.
Bond bear market
The 30-year bull market in US treasuries is history and now heading in the opposite direction. It makes excellent sense to be out of bonds in a falling market, and that is what the Chinese have been doing by buying gold.
Now the rest of the world will begin to follow them. But really it is too late, the massive transfer of real money from West to East, or China at least not Japan, has already happened. Just look at this chart:
For ArabianMoney’s advice on the best ways to invest in gold and silver see the main article in our investment newsletter this month for subscribers only (click here).
Posted on 27 August 2013 with no comments from readers
The chart below showing monthly net Chinese imports of gold from Hong Kong shows an exponential curve. This is China taking advantage of the stupid manipulation of gold prices by central banks to accumulate more real assets at low prices.
Why are the wise Chinese doing this? Simple really, they note that money printing by central banks is going to blow up the global monetary system and want to be invested in the one money that these guys cannot print.
Real money
The Chinese invented paper. They know its strengths and weaknesses. As a money it is always a disaster over time because its value is eroded by governments printing too much of it. That is happening now with great abandon.
Back in April this year the Bank of Japan took it to a new level with a highly aggressive money printing program. Not by coincidence that is when the gold market was deliberately manipulated lower as a way to disguise this obvious inflationary time bomb.
When will the pigeons come home to roost on this one? It’s already happening with interest rates on bonds rising by the most ever this summer. US mortgage rates have jumped by 25 per cent in a few months and the housing recovery is over in the most recent data series.
Bond bear market
The 30-year bull market in US treasuries is history and now heading in the opposite direction. It makes excellent sense to be out of bonds in a falling market, and that is what the Chinese have been doing by buying gold.
Now the rest of the world will begin to follow them. But really it is too late, the massive transfer of real money from West to East, or China at least not Japan, has already happened. Just look at this chart:
For ArabianMoney’s advice on the best ways to invest in gold and silver see the main article in our investment newsletter this month for subscribers only (click here).
Ing, Leeb, Russell, Rule analyze gold at King World News
Submitted by cpowell on Tue, 2013-08-27 21:15. Section: Daily Dispatches
5:14p ET Tuesday, August 27, 2013
Dear Friend of GATA and Gold:
King World News is loaded with gold-related interviews today.
John Ing, CEO of Maison Placements Canada in Toronto, says that because there is so much unbacked derivative paper floating around the commodity markets, he now expects short squeezes at all gold option expirations:
Embry sees BIS behind intervention against gold
Submitted by cpowell on Mon, 2013-08-26 18:07. Section: Daily Dispatches
2p ET Monday, August 26, 2013
Dear Friend of GATA and Gold:
http://jessescrossroadscafe.blogspot.com/2013/08/one-of-most-important-gold-charts-that.html
One of the Most Important Gold Charts That You Should Remember
"We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake.
Therefore at any price, at any cost, the central banks had to quell the gold price, manage it."
Sir Eddie George, Bank of England, in private conversation, September 1999
Few people realize that around 2008 central banks turned from being net sellers of gold to net buyers, and began to accumulate gold reserves in a big way for the first time since the 1970's, when Nixon slammed shut the gold window.
This is based on what they report officially to the IMF. There is strong anecdotal evidence that the actual turn in buying occurred quite a few years earlier, and more in line with the rapid appreciation in price as selling declined.
First the selling slowed and the stealth buying began, particularly in Asia and the Mideast.
There was a sea change in the gold market as central banks stopped supplying official gold to the bullion banks in order to keep the price down.
The bottom in the gold price occurred when Gordon Brown threw England's gold with a pre-announcement into the market in order to bail out any bullion banks that were caught flatfooted 'in the turn' in May of 1999. This was the first clear sign that change was in the wind.
The Big Turn occurred in 2007 when the western central banks capitulated, and realized that they must allow the price of gold to rise, or exhaust their own gold reserves in the process. The central bank change did not cause this, although it certainly reinforces the trend. It is a symptom of the great change and the first unmistakable manifestation of the currency war. Although astute observers could see this coming in the aftermath of the Asian currency crisis in the 1990's and the Russian default on the rouble.
Gold commentators who do not realize this significant dimension of what has occurred and account for it in their thinking have been simply left behind, lost in an outdated frame of reference. They do not see the forest for the trees.
This is about much more than gold and silver. This is about a major, an historic change in the composition of the world's global currencies and trading system. The dollar regime that has been in place since the end of World War II is undergoing a major change.
If there is anything that shocks me, it is how few economists understand it, or even realize it. I suppose that is how it is when the big things occur. Most of the operational people are left staring at the old paradigms, and wondering why their models are malfunctioning.
Rather than accept the change and understand it, they get busy trying to prove that it is not happening, since they have such a vested interest in the past. And so we see the occasional hysterical outburst from the status quo, that what is indeed happening does not make sense, and is irrational.
Their reasoning begins to take on the shrill character of propaganda as they do their duty for their powerful patrons. And they further discredit and isolate themselves from things as they are, and people who have eyes to see.
The Anglo-Americans will be the last to let this folly go. And I hear there is quite a bit of official irritation with those bullion banks who do not wish to go along with them. They prefer to get out of this while they can with their balance sheets intact, even to the extent of getting out of the business, and enduring subtle retaliation for their recalcitrance.
I cannot foresee exactly where we are going, no one can, because there are simply to many exogenous variables. But I highly doubt that it will be back to where we have been.
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