Good evening Ladies and Gentlemen:
Here are the following closes for gold and silver today:
Gold: $1232.70 up $16.70 (comex closing time)
Silver: $16.54 up 15 cents (comex closing time)
In the access market 5:15 pm
Gold had a boost today with news that the Ukraine has reserves of only 7.5 billion dollars. They are now within a whisker of default and need help from the iMF. It also looks very likely that we are going to have a GREXIT and with it all the ramifications. Our European bankers do not like this one bit.
Gold/silver trading: see kitco charts on right side of the commentary.
The gold comex today had a poor delivery day, registering 0 notices served for nil oz. Silver comex registered 0 notices for nil oz.
Three months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 247.23 tonnes for a loss of 56 tonnes over that period.
In silver, the open interest rose by 683 contracts with Friday’s silver price up by 4 cents. The total silver OI continues to remains relatively high with today’s reading at 155,208 contracts. However the bankers are still loathe to supply much of the non backed silver paper.The January silver OI contract remains at 15 contracts.
In gold we had a large increase in OI with the rise in price of gold on Friday to the tune of $7.60. The total comex gold OI rests tonight at 394,512 for a gain of 3030 contracts. The January gold contract remains at 124 contracts.
Today, we had no change in tonnage at the GLD / tonnes of gold/Inventory 707.82 tonnes
In silver, a huge withdrawal of 1.915 million oz silver inventory/
SLV’s inventory rests tonight at 327.979 million oz
We have a few important stories to bring to your attention today…
Let’s head immediately to see the major data points for today
First: GOFO rates:
Most rates moved in the positive direction with the exception of the one year rate. . Now the one month GOFO rate left backwardation and it is now in contango along with the other GOFO rates
Sometime in January the LBMA will officially stop providing the GOFO rates.
Jan 12 2015
+.057% +075% +.085% +.0975 .1525%
Jan 9 2014:
+.045% +.057% +.072 % +.0975% +.165%
Let us now head over to the comex and assess trading over there today.
Here are today’s comex results:
The total gold comex open interest rose today by 3030 contracts from 391,482 all the way up to 394,512 with gold up by $7.60 on Friday (at the comex close). We are now onto the January contract month. The non active January contract month saw it’s OI contracts remain at 124 for a loss of 0. We had 0 contracts served yesterday. Thus we neither lost nor gained any gold contracts standing for delivery in this January contract month. The next big delivery month is February and here the OI fell by 5,365 contracts to 197,479 contracts with many moving to April. The estimated volume today was poor at 70,877. The confirmed volume on Friday was fair at 179,750 contracts, even though the high frequency traders gave some help with respect to volume. Today we had 0 notices filed for nil oz .
And now for the wild silver comex results. Silver OI rose by 683 contracts from 154,525 up to 155,208 with silver was up by 4 cents on Friday. The front January contract month saw its OI remain at 15 contracts for a loss of 0 contracts. We had 0 notices filed on Friday, so we neither gained nor lost any silver contracts standing for silver in the January contract month. The next big contract month is March and here the OI rose by 396 contracts up to 104,344. The estimated volume today was simply awful at 14,325. The confirmed volume on Friday was fair at 35,393. We had 0 notices filed for nil oz today. it sure looks like the bankers have scared away all investors wishing to play the comex.
January initial standings
|Withdrawals from Dealers Inventory in oz||nil oz|
|Withdrawals from Customer Inventory in oz||nil|
|Deposits to the Dealer Inventory in oz||nil oz|
|Deposits to the Customer Inventory, in oz||nil|
|No of oz served (contracts) today||0 contracts(nil oz)|
|No of oz to be served (notices)||124 contracts (12,400 oz)|
|Total monthly oz gold served (contracts) so far this month||8 contracts(800 oz)|
|Total accumulative withdrawals of gold from the Dealers inventory this month|
Total accumulative withdrawal of gold from the Customer inventory this month
Today, we had 0 dealer transactions
total dealer withdrawal: nil oz
we had 0 dealer deposit:
total dealer deposit: nil oz
we had 0 customer withdrawal
total customer withdrawal: nil oz
we had 0 customer deposits:
total customer deposits; nil oz
We had 0 adjustments
Today, 0 notice was issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 0 contracts of which 0 notices were stopped (received) by JPMorgan dealer and 0 notices were stopped (received) by JPMorgan customer account.
To calculate the total number of gold ounces standing for the December contract month, we take the total number of notices filed for the month (8) x 100 oz or 800 oz to which we add the difference between the January OI (124) minus the number of notices served upon today (0) x 100 oz =13,200 the amount of gold oz standing for the January contract month. (.4100 tonnes of gold)
Thus the initial standings:
8 (notices filed for the month x 100 oz) +OI for January (124) – 0(no. of notices served upon today) =13,200 oz (.41 tonnes)
we neither gained nor lost any gold contracts standing for delivery
Total dealer inventory: 770,487.09 oz or 23.96 tonnes
Total gold inventory (dealer and customer) = 7.948 million oz. (247.23) tonnes)
Several weeks ago we had total gold inventory of 303 tonnes, so during this short time period 56 tonnes have been net transferred out. We will be watching this closely!
This initializes the month of January for gold.
And now for silver
Jan 12 2015:
January silver: initial standings
|Withdrawals from Dealers Inventory||nil oz|
|Withdrawals from Customer Inventory||103,352.600 (CNT) oz|
|Deposits to the Dealer Inventory||nil|
|Deposits to the Customer Inventory||695.596.42 oz (CNT)|
|No of oz served (contracts)||0 contracts (380,000 oz)|
|No of oz to be served (notices)||15 contracts (455,000 oz)|
|Total monthly oz silver served (contracts)||104 contracts (520,000 oz)|
|Total accumulative withdrawal of silver from the Dealers inventory this month|
|Total accumulative withdrawal of silver from the Customer inventory this month||3,756,152.1 oz|
Today, we had 0 deposits into the dealer account:
total dealer deposit: nil oz
we had 0 dealer withdrawal:
total dealer withdrawal: nil oz
We had 1 customer deposit:
i) Into CNT: 695,596.42 oz
total customer deposit 695,596.42 oz
We had 1 customer withdrawals:
i) Out of CNT: 103,352.600 oz
total customer withdrawal: 103,352.600 oz
we had 0 adjustments
Total dealer inventory: 65.037 million oz
Total of all silver inventory (dealer and customer) 174.183 million oz.
The total number of notices filed today is represented by 0 contracts for nil oz. To calculate the number of silver ounces that will stand for delivery in December, we take the total number of notices filed for the month (104) x 5,000 oz to which we add the difference between the OI for the front month of January (15) – the Number of notices served upon today (0) x 5,000 oz = 595,000 oz the number of ounces standing so far for the January delivery month.
Initial standings for silver for the January contract month:
104 contracts x 5000 oz= 520,000 oz +OI standing so far in January (15)- no. of notices served upon today(0) x 5,000 oz = 595,000 oz
we neither gained nor lost silver ounces standing for the January contract month.
for those wishing to see the rest of data today see:
The two ETF’s that I follow are the GLD and SLV. You must be very careful in trading these vehicles as these funds do not have any beneficial gold or silver behind them. They probably have only paper claims and when the dust settles, on a collapse, there will be countless class action lawsuits trying to recover your lost investment.
There is now evidence that the GLD and SLV are paper settling on the comex.
***I do not think that the GLD will head to zero as we still have some GLD shareholders who think that gold is the right vehicle to be in even though they do not understand the difference between paper gold and physical gold. I can visualize demand coming to the buyers side:
i) demand from paper gold shareholders
ii) demand from the bankers who then redeem for gold to send this gold onto China
vs no sellers of GLD paper.
And now the Gold inventory at the GLD:
Jan 12 no change in gold inventory/GLD inventory tonight at 707.82 tonnes
January 9.2015: an addition of 2.99 tonnes of gold/Inventory 707.82 tonnes
Jan 8.2014: no change/inventory 704.83 tonnes
Jan 7.2015: we lost another exact 2.99 tonnes of gold inventory at the GLD/Inventory at 704.83 tonnes
Jan 6.2014: we lost 2.99 tonnes of gold inventory at the GLD//inventory 707.82 tonnes
Jan 5/2015 we gained 1.49 tonnes of gold inventory into the GLD/Inventory tonight: 710.81 tonnes
Jan 2 2015: inventory remained constant/inventory 709.02 tonnes
Dec 31.2014: we lost another 1.79 tonnes of gold at the GLD today/Inventory 709.02 tonnes
Dec 30.2014/ we lost 1.49 tonnes of gold at the GLD today/inventory 710.81 tonnes
Dec 29.2014 no change in gold inventory at the GLD/inventory 712.30 tonnes
Dec 26.2013/ a small loss of .6 tonnes of gold. Inventory tonight at 712.30 tonnes
Dec 24.2014: wow!! somebody robbed the cookie jar/ we had a huge withdrawal of 11.65 tonnes from the GLD inventory/inventory at 712.90 tonnes. England must be bleeding badly!
Today, Jan 12/2015 /no change in gold inventory at the GLD /Inventory rests tonight at 707.82 tonnes
inventory: 707.82 tonnes.
The registered vaults at the GLD will eventually become a crime scene as real physical gold departs for eastern shores leaving behind paper obligations to the remaining shareholders. There is no doubt in my mind that GLD has nowhere near the gold that say they have and this will eventually lead to the default at the LBMA and then onto the comex in a heartbeat (same banks).
GLD : 707.82 tonnes.
And now for silver (SLV):
Jan 12.2014 we had a huge withdrawal of 1.915 million at the SLV/inventory at 327.979 million oz.
Jan 9.2015: we had a huge addition of 1.437 million oz at the SLV/Inventory 329.894 million oz
Jan 8.2015: no change in silver inventory/inventory at 328.457 million oz.
Jan 7.2015: we had another loss of 958,000 oz of silver from the SLV/Inventory 328.457 million oz
jAN 6.2015: we had a small loss of 149,000 oz/inventory 329.415 million oz
Jan 5 no change in silver inventory/Inventory at 329.564 million oz
jan 2.2015: no change in silver inventory/ Inventory 329.564 million oz
Dec 31.2014: we had no change in silver inventory at the SLV./Inventory
at 329.564 million oz
Dec 30.2014: we lost another 574,000 oz of silver from the SLV/Inventory at 329.564 million oz/
Dec 29.2014 we had a small loss of 431,000 oz at the SLV to probably pay for fees/inventory 330.138 million oz.
Dec 26/ no change in silver inventory at the SLV/inventory 330.569
Dec 24.2014: we had a huge loss of 7.566 million oz/inventory 330.569 million oz
Dec 23.2014: no change in silver inventory/338.135 million oz
Jan 12/2015 / a huge withdrawal of 1.915 million oz of silver inventory at the SLV
registers: 327.979 million oz
And now for our premiums to NAV for the funds I follow:
Note: Sprott silver fund now for the first time into the negative to NAV
Sprott and Central Fund of Canada.
(both of these funds have 100% physical metal behind them and unencumbered and I can vouch for that)
1. Central Fund of Canada: traded at Negative 7.6% percent to NAV in usa funds and Negative 7.7 % to NAV for Cdn funds!!!!!!!
Percentage of fund in gold 61.7%
Percentage of fund in silver:37.8.%
( Jan 12/2015)
2. Sprott silver fund (PSLV): Premium to NAV rises to + 1.51%!!!!! NAV (Jan 12/2015)
3. Sprott gold fund (PHYS): premium to NAV rises to negative -0.39% to NAV(Jan 12/2015)
Note: Sprott silver trust back into positive territory at +1.51%.
Sprott physical gold trust is back in negative territory at -0.39%
Central fund of Canada’s is still in jail.
And now for your most important physical stories on gold and silver today:
Early gold trading from Europe early Monday morning:
(courtesy Mark O’Byrne)
Gold Prices Rise on Unexpected Fall in US Hourly Earnings
Today’s AM fix was USD 1,222.00, EUR 1,035.77 and GBP 808.09 per ounce.
Friday’s AM fix was USD 1,211.25, EUR 1.025.09 and GBP 799.61 per ounce.
Spot gold climbed $13.20 or 1.09% to $1,220.50 per ounce Friday and silver rose $0.15 or 0.92% to $16.46 per ounce. Gold and silver both performed strong last week up 2.78% and 4.24% respectively.
Spot gold in Singapore was trading up $4.55 or 0.37% at $1,227.2 near the end of the day.
Gold reached a 1 month high on speculation that the U.S. Federal Reserve will not act fast to increase interest rates to protect the economic expansion.
U.S. Employment data showed that hourly earnings for U.S. employees fell in December by the most since 2006, even though the payrolls number grew by 252,000.
Gold bullion priced in euros reached its highest since September 2013, as Greek citizens get ready for the January 25th election that is spurring gold’s safe haven demand.
Gold in euros traded at 1,035 EUR. Spot gold climbed to its highest since Dec. 11 at $1,231 an ounce, before edging 0.1 percent lower to $1,221.60 by 1019 GMT.
Gold for February delivery increased 0.5 percent to $1,222 an ounce on the Comex in New York.
Silver was up 0.5 percent at $16.57 an ounce, while platinum increased 0.1 percent to $1,229.49 an ounce and palladium rose 0.1 percent to $801.20.
The yellow metal is getting a boost in physical buying of coins and bars in Asia. Premiums on the Shanghai Gold Exchange ranged from $4 and $5 an ounce. Consumers are buying ahead of the Lunar New Year holiday next month.
Next week includes the Greek elections and the ECB policy meeting.
Get Breaking Gold News and Updates Here
Chris Powell interviewed by Mike Gleason and all of the important topics of gold /silver are covered:
(courtesy Chris Powell/Gleason)
Money Metals interview covers gold and commodity price rigging and journalism’s failure
8:55a ET Saturday, January 10, 2015
Dear Friend of GATA and Gold:
Your secretary/treasurer was interviewed this week by Mike Gleason of Money Metals Exchange in Idaho, discussing GATA’s history, the extensive documentation of surreptitious gold price suppression by Western central banks, the expansion of the suppression scheme to cover the commodity markets generally, and the specific questions mainstream financial journalism fails to put to central banks, questions that would expose their surreptitious interventions and their destruction of free markets and democracy throughout the world. Audio and text of the interview are posted at the Money Metals Exchange’s Internet site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Koos Jansen delves into the archives establishing why the USA wants to use $42.22 as the official price of gold per oz.
(courtesy Koos Jansen)
Koos Jansen: We can’t pretend forever gold is worth $42.22 per ounce
7:20p ET Saturday, January 10, 2015
Dear Friend of GATA and Gold:
Bullion Star market analyst and GATA consultant Koos Jansen today begins a review of diplomatic archives confirming the U.S. government’s longstanding foreign and economic policies of pushing gold out of the international financial system. Today’s installment involves U.S. relations with France. Jansen’s commentary is headlined “We Can’t Pretend Forever Gold Is Worth $42.22 per Ounce” and it’s posted at Bullion Star here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
And he continues with this archive:
(courtesy Koos Jansen)
Another piece of the puzzle.
The next Wikileaks cable is a summary of a meeting that took place in October 1976 between, among others, chairman of the Federal Reserve, Arthur Burns, and a delegation of Chinese bankers from the PBOC. For the record, this was five years after Nixon suspended US dollar convertibility into gold and one month after Mao Zedong past away.
Most notably the Chinese stated they see inflation as economic weakness and particularly expressed their interest in IMF gold auctions and the issuance of SDR’s. Sounds to me the PBOC was particularly not very enthusiastic about the US dollar as the world’s reserve currency in 1976.
Inflation in China has not been close to zero since 1976, nor did they adopt a form of gold standard in the seventies. However, this can all have been according to plan. If China had any ambitions in the late seventies to move away from the dollar and become an economic powerhouse, perhaps they decided it was best to first grow and develop within the existing system before making a change, because this is exactly what happened:
China’s communist economy started to open in the late seventies when Deng Xiaoping ruled the country and implemented the socialist economy; combining the Party’s socialist ideology with a pragmatic adoption of market economic practices. In recent decades China has been the growth wonder of the world making them currently the second largest economy right after the US. In 2002 China reformed its gold market and ever since is effectively stimulating its citizens to save in physical gold, making the People’s Republic the largest gold producer and consumer on earth. Additionally, China is openly calling for replacing the US dollar as the world reserve currency. Did this all adventitiously happen or was it carefully planned many years ago?
In Mao’s era, from 1949 until 1976, Chinese yearly domestic gold mine production increased 261 %, from 1976 until present production increased 2,964 %.
In 1977 for the first time China disclosed their official gold reserves at 395 tonnes, according to the World Gold Council. Since then there have been three increases; 105 tonnes in 2001 (to 500 tonnes), 100 tonnes in 2003 (from 500 to 600) and 454 tonnes in 2009 (from 600 to 1,054 tonnes). Given the fact the PBOC is not buying such amounts in one month, but more likely spread over the years, my assumption is that the official amount disclosed by the PBOC reflects more about China’s political strategy than tonnes in reserve. China claims to have 1,054 tonnes currently, though there is overwhelming evidence they have substantially more in official reserves.