Harvey Organ's Gold and Silver Report - June 6 , 2013 ...... News , Data and critical reads - plus a must listen report from Rob Kirby !

Harvey Organ's Gold and Silver Report - June 6 , 2013

Gold and the GLD falls again/ Registered or dealer Inventory Gold at the Comex falls to record lows of 45.87 tonnes/Huge sell off in Europe with European bond yields rising big time/USA/Yen cross plummet setting off derivative bombs/

Good evening Ladies and Gentlemen:

Gold closed up  by $15.10 to $1413.40 (comex closing time).  Silver rose by 24 cents to $22.70  (comex closing time)

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

gold: 1412.90
silver:  $22.67

I am not going into the trading of gold and silver because you all know that it is manipulated throughout all time zones, so I will not waste your time.


At the Comex, the open interest in silver rose by 2149 contracts to 147,883 contracts with silver's rice in price on Wednesday by 6 cents.  The silver OI is  holding firm at elevated levels . The open interest on the entire gold comex contracts rose  by 1830 contracts to 374,891 which is extremely low. There is no question that all of the weak speculators in gold have now departed.  Only the strong remain. The number of ounces which is standing for gold in this  June delivery month  is 933,200 or 29.02 tonnes.The number of silver ounces remains the same, standing for delivery is represented by 620,000 oz. No doubt this level will climb as the June month proceeds.


 Tonight, the Comex registered or dealer gold lowers to  1.475 million oz or 45.87 tonnes.  This is getting dangerously low.  The total of all gold at the comex fell slightly and now it is just below the 8 million oz at 7.945 million oz or 247.12 tonnes of gold. 

The GLD  reported another loss in gold inventory to the tune of 2.71 tonnes. The SLV inventory of silver  remained firm with no losses. 

Today we have many physical stories but I would like to single out two for you:

i. Dave from Denver's commentary on the fraudulent comex.  The author believes that much of the inventory in gold and silver has been hypothecated or leased out. It has been my fear for quite some time.

ii) Bill Holter, who tackles the "unprecedented demand" at the USA mint and the deeper meaning behind it.

We will go over these and many other stories 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 1830 contracts from  373,061 up to 374,891 with gold rising by $1.30 yesterday. The front active month of June saw it's OI fall by 365 contracts from 3315 down to 2950. We had 333 contracts served upon our longs yesterday.  We thus lost 32  contracts or 3200 oz   that will not stand this month. The next delivery month is the non active July contract and here the OI rose by 35 contracts up to 572.  The next active delivery month for gold is August and here the OI rose by 1655 contracts from 213,215 up to 214,870. The estimated volume today was good at 164,876 contracts.    The confirmed volume yesterday was mediocre at 147,787 contracts. 


The total silver Comex OI completely plays to a different drummer than gold. Its OI rose by a huge 2149  contracts to 147,883,  with  silver's rise in price to the tune of only 6 cents yesterday.  The front non active June silver contract month shows no gain or loss in OI contracts and remains at 120 contracts. We had 0 notices filed yesterday so in essence we neither gained nor lost any silver ounces standing for metal for the June contract month.   The estimated volume today was enormous, coming in at 70,841 contracts.  The confirmed volume yesterday was good at  at 44.004.

Comex gold/May contract month:

June 6/2013

 the June contract month:

Gold	Ounces
Withdrawals from Dealers Inventory in oz	39,557.389 oz (Scotia)
Withdrawals from Customer Inventory in oz	nil  (0 oz)
Deposits to the Dealer Inventory in oz	nil
Deposits to the Customer Inventory, in oz	nil
No of oz served (contracts) today	826 (82,600  oz)
No of oz to be served (notices)	2124 (212,400 oz
Total monthly oz gold served (contracts) so far this month	7208  (720,800  oz)
Total accumulative withdrawal of gold from the Dealers inventory this month	39,657.389 oz
Total accumulative withdrawal of gold from the Customer inventory this month	35,324.352 oz

We again had tiny activity at the gold vaults

The dealer had 0 deposits and 1  dealer withdrawal.


i) Out of the dealer Scotia: 39,557.389 oz was withdrawn

We had 0 customer deposits today: (very strange for a huge delivery month of June)




total customer deposit: nil oz



We had 0  customer withdrawals today:



total customer withdrawal:  nil 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).

Tuesday, 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 yesterday 28,389.579 oz was settled upon, leaving 71,611.00 oz  still left to arrive in the settling process.

Yesterday we had 333 notices served upon by JPMorgan's customer side.

Today we received notice that we had 826 notices served upon today of which 725 contracts were  issued by JPMorgan's customer account and 10 notices from their house or dealer account.  We will wait and see  how much gold leaves JPM customer account to settle upon our very impatient longs.  (this was written at 2 pm today)

With today's inventory  report at 3:30 pm est no gold was withdrawn from JPMorgan's customer nor their dealer accounts.

However we did have an adjustment and the vault was JPMorgan:

994.44 oz was adjusted out of the customer account and added back to the dealer account at JPMorgan.



Thus tonight we have the following closing inventory figures for JPMorgan:

i) dealer account:  413,526.284 oz
ii) customer account  354,225.571  oz.

Now for JPMorgan's dealer side and what the inventory should be:

Tuesday night we reported that 4935 contracts have been issued by JPMorgan's house account since first day notice and not yet subtracted out of inventory


You will also recall on Saturday and Monday night, I reported that JPMorgan had 470,322.102 oz in it's dealer account.

On the dealer side today we had 10 notices issued.

Thus,  4945 contracts have been issued so far  for 494,500 oz  and these
ounces have yet to settle from JPMorgan's dealer side  (4935 contracts yesterdays total + 10 for today)


JPMorgan's dealer vault registers tonight 413,526.284 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 80,974 oz   (413,526 inventory - 494,500 oz issued =  80,974 oz)

In other words, the entire 413,526 must be first transferred out of Morgan's dealer category leaving it with zero,  plus the 80,974 of additional gold

JPMorgan has not had any deposits in gold in quite some time.
How will JPMorgan satisfy this shortfall??

HSBC 's dealer vault gold is also slim as it remains at: 260,323.275 oz  (8.09 tonnes)

Tonight the dealer inventory remains tonight at a low of 1.475 million oz (45.87) tonnes of gold. The total of all gold slightly contracts, resting tonight at 7.945 million oz or 247.12 tonnes.

Today we had 826 notices served upon our longs for 82,600  oz of gold. In order to calculate what I believe will stand for delivery in June, I take the OI standing for June (2950) and subtract out today's notices (826) which leaves us with 2124 contracts or 212,400 oz left to be served upon our longs.

Thus  we have the following gold ounces standing for metal in June:

7208 contracts x 100 oz per contract  or  720,800 oz served upon +  2124 contracts or 212,400 oz (left to be served upon)  =  933,200 oz or 29.02 tonnes of gold. 

We lost 32 contracts or 3,200 oz  of gold will not stand for the June contract month.


 We now have the official USA production of gold last year and it registered 230 tonnes.  Thus approximately 19.16 tonnes of gold is produced by all mines in the USA per month. Thus the amount standing for gold this month represents  151.46% of that total production.

now let us head over and see what is new with silver:

Silver:

June 6.2013:  June silver contract month: 

Silver	Ounces
Withdrawals from Dealers Inventory	nil
Withdrawals from Customer Inventory	761,514.402 oz (Brinks, Scotia,JPM)
Deposits to the Dealer Inventory	nil
Deposits to the Customer Inventory	nil
No of oz served (contracts)	11  (44,000 oz)
No of oz to be served (notices)	102  (510,000 oz)
Total monthly oz silver served (contracts)	33  (165,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month	701,301.63 oz
Total accumulative withdrawal of silver from the Customer inventory this month	1,988,695.4 oz

Today, we  had fair activity  inside the silver vaults.

 we had 0 dealer deposits and 0  dealer withdrawals.





We had 0 customer deposits:




total customer deposit; nil  oz


We had 3 customer withdrawals:

i) out of Brinks:  600,574.16 oz

ii) out of JPM:  120,647.16  oz
iii) out of Scotia:  40,293.08 oz


total customer withdrawal  : 761,514.402  oz 

  

we had 0    adjustments  today

Registered silver  at :  42.035 million oz

total of all silver:  163.443 million oz.

The CME reported that we had 11 notices filed for 55,000 oz  today. In order to calculate what we believe will stand in the month of June, I take the Oi standing for June (102) and subtract out today's notices (11) which leaves us with 91 notices or 455,000
  
Thus the total number of silver ounces standing in this non  active delivery month of June is as follows:

33 contracts x 5000 oz per contract (served) = 110,000  oz  + 91 contracts x 5000 oz  or 455,000 oz left to be served upon =  620,000 oz

we neither gained nor lost any silver ounces today at the Comex silver. 

Now let us check on gold inventories at the GLD first: 2.7 tons leaves the GLD ETF today  ! 


June 6.2013:

Tonnes1,007.74

Ounces32,399,917.19

Value US$45.334  billion

June 5.2013:

Tonnes1,010.45

Ounces32,486,916.77

Value US$45.588  billion.

Selected news and views.......

I guess many of you saw the story whereby the USA mint director stated that bullion demand is "unprecedented"

Bill Holter comments on its deeper meaning to us:

(courtesy Bill Holter/Miles Franklin)

"Bullion demand still unprecedented".

"Bullion demand still at unprecedented levels".  Yes, demand from the U.S. Mint (and every other mint and refiner) was very strong going into April.  We all know what happened then and have watched as global demand has soared because the "price was too low"  Of course, if you listen to Bloomberg or CNBC they will tell you that Gold has been sold off because it's "just not safe anymore".  It's in a bear market, only barbarians would invest in it and the smart money has already panicked out...as should you too.

  But here is a quote from acting director of the U.S. Mint, Richard Peterson,    "Demand right now is unprecedented. We are buying all the coin (blanks) they can make,".  Hold on now...let's take a look at this quote a little closer.  "We are buying all the coin blanks they can make"?  Really?  So if they are buying every blank that can get their hands on...then why have there been shortages this year?  Why has the mint had to suspend sales several times?  "Buying every blank that they could get their hands on"...was apparently not enough? 

 Actually, a better question would be, "if demand is so great and the U.S. mint is buying every single blank that they can, then how is it possible that the price went down?  Not just down mind you, down as in a 'panic' down?".  I'd like to remind you (and preface what I am about to say) that the "law" here in the U.S. states that the mint MUST buy as much Silver and as much Gold as necessary to meet demand and this supply must come from U.S. mines.  Now, I seem to remember that for the first quarter alone, the mint sold as many (I think actually 1,000 ounces more) Silver Eagles as all tallied Silver production that came out of the ground from U.S. mines.  So in plain English, the mint sold more Eagles than the mines produced metal in the 1st quarter.

  Now, not to disparage Americans but the Chinese and Indian population make us look like absolute "pikers" when it comes to buying Gold and Silver.  In fact, it looks like China and India are so far this year (and we don't even have numbers yet for April or May when the demand really exploded) likely to consume MORE THAN 80% of the entire world's production, where is the metal coming from?  COMEX?  LBMA?  Ah yes, GLD!  I would say as an off the cuff comment, once the "bleeding" stops and GLD doesn't report much more in the way of "deliveries"...the barrel will be dry.  I say this because once the deliveries stop, my guess is that what they have left in "inventory" will be of the  "flammable" type.  "Gold" as in receipts and paper promises.

  As I wrote yesterday, "if you are truly listening" you can hear what they are telling you.  Here is the director of the U.S. Mint telling you that they cannot buy enough blanks to keep up with demand...this tells you a couple of things.  1. supply and demand are out of balance.  2. it also should tell you that IF you can get your hands on what is of short supply...you are getting it at a price that the market deems to be too low.  LISTEN and analyze what is coming out of "official mouths" all over the world, if you listen carefully they are telling you the truth to cover their sorry butts when this thing blows up.  Like I said yesterday, they will throw their arms up in the air and say "we tried to tell you".  

Regards, Bill H.

Indian officials are going all out trying to block its citizens from being gold:

1. Yesterday an Indian can purchase gold only with cash and not on credit
2. Yesterday, they also raised the import tax to 8% from 6%

and now today:

India Central Bank Prohibits Sales Of Gold Coins

Submitted by Tyler Durden on 06/06/2013 13:56 -0400

• Central Banks
   
• ETC
   
• Fail
   
• India
   
• Reuters
   
• Verizon

Two weeks ago, with its current account getting crushed by relentless gold imports, India's finance minister Chidambaramliterally begged the people to stop buying gold. Judging by the popular response, the ongoing physical shortage, and last night's increase in Indian gold import duties from 6% to 8%, appealing to people's feeling when it comes to the choice of fiat vs physical, has failed miserably. So the FinMin Chidambaram has decided to escalate.  Per Reuters: "The Reserve Bank of India has advised banks against selling gold coins to retail customers, Finance Minister P. Chidambaram said on Thursday, a day after he raised gold import duty to try to ease pressure on India's bloated current account deficit." Well, if there ever was one sure way to send demand for any product through the roof (guns, ammo, etc), it is for the government to prohibit its outright sale. What follows next, almost without fail, is a panicked, chaotic buying scramble.

Gold imports by India, the world's biggest buyer of bullion, surged to
162 tonnes in May -- more than twice the monthly average in the record
year of 2011.

"I think the Reserve Bank has advised banks that they should not sell gold coins," said Chidambaram, while speaking at an event in Mumbai.

Chidambaram also urged banks to advise their customers not to invest in gold.

Why? If it is not clear by now, here is the explanation: there is simply not enough gold to satisfy demand at the current artificially downward-manipulated price, no matter what propaganda script is being spun on Verizon TV at any given moment. And with India's idiotic decree, even more gold will be purchased at these prices.

Dear India - here is a simple way to limit demand: price.

Petition the central banks to allow gold to price based on price discovery, or as it is also known supply and demand.Because if gold were to cost $2000,$5000, $10,000/oz then all problems resulting from excess demand would immediately disappear and India's current account would be back to normal.

Of course this will not happen, as the crumbling facade of the imploding fiath based regime would immediately peel away. So back to gold capital controls and other ad hoc made-upmeasures guaranteed to not only fail but push the price ofphysical gold much higher.

Good luck.

This is some news!!! Gold refiners in Switzerland has now increased to 5 weeks refining gold.

(courtesy Egon Von Greyerz/Kingworldnews)

Gold refinery delivery delays rise to five weeks, von Greyerz says

Submitted by cpowell on Thu, 2013-06-06 17:48. Section: Daily Dispatches

1:43p ET Thursday, June 6, 2013

Dear Friend of GATA and Gold:

Gold fund manager Egon von Greyerz tells King World News today that delivery delays from Swiss gold refiners have increased to five weeks and demand for real metal around the world remains strong:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/6/6_Swi...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

I want you to spend time on this next piece courtesy of Dave of Denver/the Golden Truth.
As many of you know, I believe that the data at the COMEX has been compromised and I have relayed to you my thoughts that much of the gold held at the comex has been hypothecated and rehypothecated.  Many times I have been shot down.

Now Dave from Denver agrees with me...


(courtesy Dave from Denver/the Golden Truth)

THURSDAY, JUNE 6, 2013

The Comex Warehouse Stock Report Fraud Clarified

I realized after assessing some comments posted on my Tuesday blog post about the fraud going on at the Comex that I did not articulate a key point about the credibility of bank financial reporting.  It seems that there is still a contingency of people who are willing to believe that if a bank issues an accounting report, it must be valid.

Let me preface this clarification post by saying that given the long laundry list of charged and prosecuted high profile fraud cases against all of the big banks, I just assumed that everyone understood that banks can not be trusted at all.  Here's my Golden Rule:  banks can not be trusted at all.  Fool me once, shame on you;  fool me twice, shame on me; fool me three times, I'm a moron.  Got it?

With that in mind let me clarify how the Comex warehouse gold and silver stock reports are produced.  Each bank that operates a Comex vault is responsible for keeping and maintaining all accounting records in connection with operating their vault.  This means that all of the reports and data that the CME uses to produce its warehouse stock reports come from the banks themselves.  They are paper accounting records the bank produces and sends to the bean counters at the CME.  There is no actual independent auidt of the reports OR of the bars themselves that are reported to be held in each bank vault.  Everything the CME publishes is based on what is reported from the banks.  Do you still trust these reports?  If you do, re-read my Golden Rule.

Please DO NOT CONFUSE the reliability of paper records and the reliability of any bank not acting fraudulently with regard to those paper claims with actual physical gold that is sitting in an allocated account and bars for which the rightful owner has legal entitlement. Paper is NOT to be trusted - in any form.

A large portion of the gold that is being reported by the Comex vault operators is likely not really there to be reported. Now, "not being there" could well mean that there is a lease-claim attached to it or some other form of hypothecation. Just because bars are sitting physically in "registered" or "eligible" accounts does not mean that the  intended owner of that bar has a legal entitlement to that bar.

Review the laws connected with short-selling and hypothecation. When an asset is sold short or  hypothecated, the original holder of that asset unknowingly loses legal title to it.  The fact that the legal department at the CME now requires a disclaimer about the bank reports that are used to produce the Comex warehouse gold and silver stock should tell us all we need to know about the nature of those bank reports, especially when considered in the context of all of the other fraud that banks have been involved in over the last couple decades.  

Now, I also believe - per the recent 35% drain of gold inventory from the Comex - that a lot of the bars have been physically removed upon demand by entitled owners. By "entitled," I mean the party who possess the legal title to the bars. The disclaimer was added to the inventory report as an attempt to exonerate the CME from the legal liability of fraudulent reporting by the vault operators, who are responsible for the record-keeping and accounting and reporting of the bar inventory that is supposed to be in their vaults.  Moreover, a high percentage of the gold that remains in the Comex vaults has likely been leased out or hypothecated.  In other words, the financial reports from the banks do not legally present the actual amount of gold or silver in Comex vaults that can be immediately removed upon demand by the original intended owner.  Think this is far-fetched?  Explain why the Bundesbank demanded some of Germany's gold to be shipped back to Germany it requires and it requires 7 years to ship back just 300 tonnes of Germany's 1800 tonnes supposedly sitting in the Fed's NY vault? (Please note that Venezuela was able to have 200 tonnes of its gold shipped back to Venezuela within about 4 months).

This is the same kind of situation with GLD. Same wine, different bottle.

Now as far as Comex bar quality standards, not only am I well aware of the criterion and rules, but we have taken delivery of both gold and silver bars FROM the Comex. I am experienced in the entire process from start to finish.

This is also why I DO NOT trust the Comex reports. Back in April 2010, we took delivery and were given notice by HSBC for several silver bars. BY THE RULES, HSBC was required to deliver the bars to our possession by April 30, the last delivery day. They are given 3 days of leeway. Not only did we NOT receive the bars within the legal time frame, it took 7 full weeks for HSBC to make good on the delivery.  If our fund was a lot bigger and we could have reasonably afforded the litigation, we would have gone after HSBC for breach and damages.

Moreover, during 2010, HSBC changed its delivery policy for off-Comex deliveries, making it more cumbersome and more expensive to get bars delivered to your possession from their vault.

Need I remind you that HSBC has recently been charged in several fraudulent banking activities AND convicted on a couple. They are connected to the recent HKMex gold scandal in Honk Kong, as well.

This clarification is to explain exactly why bank-produced paper reports at the Comex are more than likely riddled with fraud and it clarifies the difference between owning physical gold in your own possession vs. owning a paper claim on gold sitting somewhere else and a claim which can be hypothecated such that you actually lose legal entitlement to that underlying asset. The Comex is just as fraudulent as Enron, Refco, Amaranth, AIG, etc.  Capito?