Good evening Ladies and Gentlemen:
Gold: $1,223.50 DOWN $5.40 (comex closing time)
Silver 16.26 UP 2 cents
In the access market 5:15 pm
Gold $1224.15
silver: 16.32
i) the May gold contract is a non active contract. Yet we started the month with 5.67 tonnes of gold standing and it has increased every single day and today sits at 6.886 tonnes of gold standing:
The amount standing for gold at the comex in May is simply outstanding at 6.886 tonnes. The previous May 2015, we had only .08 tonnes standing so you can certainly witness the difference as the demand for gold by investors/sovereigns is on a torrid pace. This makes the excitement for June gold that much more intense as more players are refusing fiat and demanding only physical metal. I will be reporting daily as to how which is standing for delivery through the active month of June. June is the second largest delivery month after December.
Despite the whacking of silver, it’s OI refused to decline like gold. Our bankers and the CFTC are “quite baffled” by this. We are now in our 6th year of high open interest in silver with a low price. This has never happened before.
If I am a betting man, it looks to me like China is the long taking delivery in gold and they are the longs waiting patiently to strike in silver.
Let us have a look at the data for today
.
At the gold comex today we had a GOOD delivery day, registering 53 notices for 5300 ounces for gold,and for silver we had 5 notices for 25,000 oz for the non active May delivery month.
Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 249.98 tonnes for a loss of 53 tonnes over that period
.
In silver, the open interest ROSE by 101 contracts UP to 203,682 DESPITE THE FACT THAT THE PRICE OF SILVER WAS DOWN by 17 cents with respect to YESTERDAY’S trading..In ounces, the OI is still represented by just over 1 BILLION oz i.e. .1.018 BILLION TO BE EXACT or 145% of annual global silver production (ex Russia &ex China)
In silver we had 5 notices served upon for 25,000 oz.
In gold, the total comex gold OI fell by a CONSIDERABLE 8,603 contracts DOWN to 542,958 as the price of gold was DOWN $22.90 with yesterday’s trading(at comex closing). They certainly got the liquidation in gold but not silver.
We had no change in gold inventory at the GLD The inventory rests at 868.66 tonnes. .
We had no change in silver inventory at the SLV/Inventory rests at 335.739 million oz
.
First, here is an outline of what will be discussed tonight:
1. Today, we had the open interest in silver RISE by 101 contracts UP to 203,682 as the price of silver was DOWN by 17 cents with YESTERDAY’S trading. The gold open interest FELL by 8,603 contracts as gold was down $22.90 yesterday. Somebody big is standing FOR SILVER and surrounding the comex with paper longs ready to ponce once called upon to take out physical silver.I also believe that for the first time we are witnessing players wishing to stand for real physical in gold. Gold investors, in the May contract month are refusing the tempting fiat offer as they want only physical.
(report Harvey).
2 a) Gold trading overnight, Goldcore
(Mark OByrne/off today
2b) Gold trading earlier this morning;
(Mark O’byrne)
3. ASIAN AFFAIRS
i)Late TUESDAY night/ WEDNESDAY morning: Shanghai closed DOWN BY 6.58 PTS OR 0.23% / Hang Sang closed UP 537.62 OR 2.71%. The Nikkei closed UP 258.59 POINTS OR 1.51% . Australia’s all ordinaires CLOSED UP 1.45% Chinese yuan (ONSHORE) closed DOWN at 6.5616 . Oil ROSE to 49.02 dollars per barrel for WTI and 49.20 for Brent. Stocks in Europe ALL IN THE GREEN . Offshore yuan trades 6.5645 yuan to the dollar vs 6.5616 for onshore yuan.THE SPREAD BETWEEN ONSHORE AND OFFSHORE NARROWS TO ZERO.
REPORT ON JAPAN SOUTH KOREA AND CHINA
a) REPORT ON JAPAN
none today
b) REPORT ON CHINA
i)Your big story of the month. China has decided to deeply devalue the yuan (onshore) last night as they are acting ahead of the USA potential rate hike. They are quite happy with the slow devaluation of the yuan against all of the other currencies they put in their basket and now want to concentrate on the USA. The most important point here:
“The flip-flop is a sign of policy makers’ deepening wariness about how much money is fleeing China, a problem driven by its slowing economy. For now, at least, officials believe the benefits of freeing the yuan are outnumbered by the number of threats..”
No question we will see massive turmoil in all markets as Janet has to make a decision whether to raise rates
( zero hedge)
ii)When China gave loans to OPEC poor countries, the loans in dollars were collaterized with oil. Now that oil is 1/3 the price, China is receiving massive amounts of oil to pay for the loans. This is the reason for the huge number of ships carrying oil to China. China now has to step up in the refining of this oil
iii)Not sure how this will help China as their 5 yr plan is to replace workers with robots. Foxconn has already replaced 60,000 workers with robots. What happ when social unrest becomes dominant!( zero hedge)
4.EUROPEAN AFFAIRS
i)The Eurogroup agrees to disburse 7.5 billion euros just enough to repay its creditors that it owes in July and August. Nothing for Greece!
( zero hedge)
ii)Then bang! the IMF states that they are now not ready to add new funds to the Greek bail out as it stands. They still insist on debt relief:
(courtesy zero hedge)
iii)The labour strikes that are hurting the oil land gas sector in France has now morphed to the nuclear power plants where all staff in the 19 plants will go on strike for 24 hours. They may see power outages!
5.RUSSIAN AND MIDDLE EASTERN AFFAIRS
As expected, Erdogan snubs the European refugee deal and will not take back any refugees.Europe is going to have so much fun with this!
( zero hedge)
6.GLOBAL ISSUES
Nigeria has pegged its NAIRA at 197 to 199 Naira to the dollar. The 3 month forwards show the currency plummet to 291 Naira to the dollar. It sure looks like Nigeria will be the next nation after Venezuela to fail.
Also it looks like the Saudi real is also beginning to crack
( zero hedge)
7.OIL ISSUES
Oil nears 50 dollars after a bigger an expected inventory drawdown and a big production cut.
(courtesy zero hedge)
8.EMERGING MARKETS
Emerging market decouple from the USA market feeling the pain of the devaluation of the yuan, the rise in the USA dollar and the corresponding fall in commodity prices:
( zero hedge)
9. PHYSICAL MARKETS
i)Citibank is the latest to the slapped on the wrist for manipulating markets. Today it is the USA dollar swaps and Yen Libor. It is impossible to not to manipulate gold and silver if you are manipulating the above
( zero hedge)
ii) First quarter in 2016 witnesses the highest silver maple sales ever! With silver in backwardation in London, with a high open interest in silver at the comex for 5 years, it is a complete wonder why the price of silver has been down for over 5 years.
iii) Now China wants to set prices for the world’s commodities replacing the USA.
This no doubt is a huge dagger into the heart of USA
( GATA/Bloomberg)
iv) In the first quater to stave off bankruptcy these bozos sold 1.38 million oz of gold
(43 tonnes)
( GATA/Bloomberg)
v)Famed economist Paul Brodsky claims that the entire global monetary system has devalued by 10% against gold:
( Paul Brodsky)
Bill Holter’s very important public commentary tonight is entitled
“SCAPEGOAT”
USA STORIES WHICH MAY INFLUENCE THE PRICE OF GOLD AND SILVER.
i)The drop in Tiffany shares shows a huge weakness in both USA consumer and the global consumer. They just had the biggest drop in sales in the last 1 1/2 yrs. They missed on earnings per share and most importantly they cut their guidance forward.
( zero hedge)
ii)This is huge!! USA Service PMI plunges by the most ever on record and that should put a damper on a 2nd quarter GDP rebound. Please remember this: in the USA service and the consumer is 70% of GDP
iv)This does not bode well for the election season: violent protesters storm the Trump rally in New Mexico..a very ugly scene:
vi)DAVID STOCKMAN writes a terrific commentary on the state of the USA economy. The S and P earnings for the year (first quarter 2015 to first quarter 2016) had earnings of 87.00 dollars and thus a P/e of 23.9 totally unheard of. The real earnings of $87.00 equates to a high in 2007 before the crash and it has not gotten any better. Now you will understand that all markets are totally manipulated
vii)Let us close today’s commentary with this very interesting conversation between lead lawyer in the Madoff scandal and Greg Hunter