feb 6/EU gives Greece a 10 day ultimatum to sign or else they are booted out of the Eu monetary zone/

 Your quote of the day:  Yanis talking about the EU personnel:

stated late in the day after the EU issued a 10 day ultimatum (see below)

(carpet-bombing = complete obliteration as a carpet completely covers the floor/total annihilation)

All hands on deck:  Yanis V and Alexis Tsipras calling Mr Putin and Xi  Jinping on the hot line!!  


Good evening Ladies and Gentlemen:

Here are the following closes for gold and silver today:

Gold: $12633.90 down $28.10   (comex closing time)
Silver: $16.72 down 46 cents  (comex closing time)

In the access market 5:15 pm



Gold $1233.25
silver $16.69



Gold/silver trading:  see kitco charts on right side of the commentary.


The big story today is the ultimatum issued on Greece (covered below) and the phony jobs report.  If Greece does its GREXIT then derivatives will blow up the entire globe.  Yanis V is a PhD in Finance and you bet the farm he is well versed how how these financial structures work and when lit it can send a daisy chain of defaults. As for the phony jobs report, we will cover the nonsense in the USA section of my report at the bottom.


Following is a brief outline on gold and silver comex figures for today:

The gold comex today had a good delivery day, registering 57 notices served for 5,700 oz.  Silver comex registered 67 notices for 335,000 oz .


Three months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 254.00 tonnes for a loss of 49 tonnes over that period.


In silver, the open interest fell by 3,292 contracts as yesterday’s silver price was down by 20 cents. The total silver OI continues to  remain relatively high with today’s reading at 165,296 contracts.

We had 0 notices filed  for nil oz

In gold surprisingly we  had a tiny rise in OI even though gold was down by $1.80 yesterday.  The total comex gold OI rests tonight at 414,502 for a gain of 10 contracts.  Today we had a small 57 notices served upon for 5700 oz.




Today, we had no changes in gold inventory at the GLD/Inventory at 773.31 tonnes



In silver, /SLV  no change in  of silver inventory to the SLV/Inventory 320.327



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: the crooks are no longer reporting.



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 marginally today by 10 contracts from  414,492 up to 414,502 with gold down by $1.80 yesterday (at the comex close).  We are now in the big delivery month of the active February contract  and here the OI fell by 368 contracts  from 1210 down to 842. We had 342 contracts served yesterday.  Thus we lost  26  contracts or 2600 oz will not stand for delivery for the February contract and no doubt were bought out with fiat.  The next contract month of March saw it’s OI rise by 11 contracts up to 1381.  The next big active delivery month is April and here the OI fell by 84 contracts down to 287,457. The estimated volume today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est)  was poor at 117,164. The confirmed volume yesterday ( which includes the volume during regular business hours  + access market sales the previous day) was also poor at 120,542 contracts. Today we had 57 notices filed for 5700 oz .

And now for the wild silver comex results.  Silver OI fell by 3,292 contracts from 168,588 down to 165,296 as silver was down by 20 cents yesterday. The bankers were able to shake some silver leaves from the silver tree. Let us wait until Monday to see how successful they were today. We are now in the non active contract month of February and here the OI rose by 8 contracts up to 92.   We had 0 notices filed yesterday so we gained 8  contracts or 40,000  additional oz will stand for delivery in this February contract month.   The next big active contract month is March and here the OI fell by 3878 contracts down to 92,973. The estimated volume today was awful at 26,753 contracts  (just comex sales during regular business hours). The confirmed volume yesterday was excellent (regular plus access market)  at 49,394 contracts. We had 67 notices filed for 335,000 oz today.

February initial standings


Feb 6.2015



Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz 96.45 oz(3  kilobars)  Manfra
Deposits to the Dealer Inventory in oz nil
Deposits to the Customer Inventory, in oz 803.75oz ( 25 kilobars  Manfra)
No of oz served (contracts) today 57 contracts (5700 oz)
No of oz to be served (notices)  775 contracts (77500 oz)
Total monthly oz gold served (contracts) so far this month  545 contracts(54,500 oz)
Total accumulative withdrawals  of gold from the Dealers inventory this month

Total accumulative withdrawal of gold from the Customer inventory this month

 5470.6 oz

Today, we had 0 dealer transactions

we had 0 dealer withdrawals:

total dealer withdrawal: nil oz



we had 0 dealer deposit:



total dealer deposit: nil oz



we had 1 customer withdrawals



ii) Out of Manfra: 96.45 oz (3 kilobars)

total customer withdrawal: 96.45  oz



we had 1 customer deposit:

i) Into Manfra: 803.75  (25 kilobars)

total customer deposits;  803.75 oz

We had 0 adjustments



Today, 0 notices 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 57 contracts of which 0 notices were stopped (received) by JPMorgan dealer and 45 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 (545) x 100 oz  or 54,500 oz , to which we add the difference between the OI for the front month of February (842 contracts)  minus the number of notices served today x 100 oz (57 contracts) x 100 oz = 132,000 oz, the amount of gold oz standing for the February contract month.( 4.14 tonnes)

Thus the initial standings:

545 (notices filed for the month x( 100 oz) or 54,500 oz + { 842 (OI for the front month of Feb)- 57 (number of notices served upon today) x 100 oz per contract} = 132,000 oz total number of ounces standing for the February contract month. (4.14 tonnes)


we lost 26 contracts or 2600 oz will not stand in this February contract month.

Total dealer inventory: 805,240.309 oz or 25.04 tonnes

Total gold inventory (dealer and customer) = 8.166 million oz. (254.00) tonnes)


Several weeks ago we had total gold inventory of 303 tonnes, so during this short time period 49 tonnes have been net transferred out. However I believe that the gold that enters the gold comex is not real.  I cannot see continual additions of strictly kilobars.







And now for silver

 February silver: initial standings

feb 6 2015:



Withdrawals from Dealers Inventory nil oz
Withdrawals from Customer Inventory 667,075.327  oz (Delaware, Scotia )
Deposits to the Dealer Inventory  nil
Deposits to the Customer Inventory 597,794.200 oz (Scotia)
No of oz served (contracts) 25 contracts  (125,000 oz)
No of oz to be served (notices) 84 contracts (420,000 oz)
Total monthly oz silver served (contracts) 376 contracts (1,880,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month
Total accumulative withdrawal  of silver from the Customer inventory this month  869,343.0 oz

Today, we had 0 deposit into the dealer account:

total dealer deposit: nil   oz


we had 0 dealer withdrawal:

total dealer withdrawal: nil oz


We had 1 customer deposits:


i) Into Scotia:  597,794.200

total customer deposit 597,794.200 oz


We had 2 customer withdrawals:

i) Out of Delaware:  5,127.39 oz

ii) Out of Scotia:  661,947.93


total customer withdrawal: 667,075.327 oz

we had 1 adjustments


i) Out of Delaware:  99,162.412 oz was adjusted out of the customer and this landed into the dealer account at Delaware:


Total dealer inventory: 67.890 million oz

Total of all silver inventory (dealer and customer) 177 million oz


The total number of notices filed today is represented by 67 contracts for 335,000 oz. To calculate the number of silver ounces that will stand for delivery in February, we take the total number of notices filed for the month (376) x 5,000 oz    = 1,880,000 oz  to which we add the difference between the OI for the front month of February (92)- the number of notices served upon today (67) x 5,000 oz per contract = 2,005,000 oz,  the number of silver oz standing for the February contract month

Initial standings for silver for the February contract month:

376 contracts x 5000 oz= 1,880,000 oz + (92) OI for the front month – (67) number of notices served upon x 5000 oz per contract =  2,005,000 oz, the number of silver ounces standing.

we gained 8  contracts or 40,000 oz of additional silver that  will standing for this February contract month

It seems that some major entity is after some silver supplies. It looks like they all gave up trying to get physical from the gold comex.

for those wishing to see the rest of data today see:

http://www.harveyorgan.wordpress.com or http://www.harveyorganblog.com





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:



feb 6/ no change in gold inventory tonight/inventory 773.31 tonnes

feb 5. we had another addition of 5.38 tonnes of gold to the GLD/Inventory tonight at 773.31 tonnes

Feb 4/2015; we had another addition of 2.99 tonnes added to the GLD inventory/Inventory tonight 767.93

Feb 3.2015: today a withdrawal  of 1.79 tonnes of  gold inventory removed from the GLD/Inventory at  764.94

feb 2/ a huge addition of 8.36 tonnes of “paper” gold inventory/Inventory tonight at 766.73 tonnes

jan 30. we had no change in gold inventory/Inventory at 758/37 tonnes

Jan 29/we had an addition of 5.67 tonnes of gold inventory at the GLD/Inventory at 758.37 tonnes

Jan 28/no changes in gold inventory at the GLD/Inventory at 952.44 tonnes

Jan 27.we had a monstrous “paper” addition of 9.26 tonnes of gold into the GLD tonight/Inventory at 952.44 tonnes

Jan 26.2015: another volatile day as they added  1.79 tonnes/743.44 tonnes of gold.

Jan 23/the action at the GLD is very volatile:  today they added 1.20 tonnes of gold to their inventory/Inventory 741.65

Jan 22 no change in gold inventory at the GLD/Inventory 740.45 tonnes

Jan 21.2015: Tonight, we lost 1.79 tonnes of gold from the GLD/Inventory 740.45 tonnes





Feb 6/2015 /no change in   gold inventory at the GLD/

inventory: 773.31 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 : 771.31 tonnes.






And now for silver (SLV):



Feb 6  no change in silver inventory/SLV’s silver inventory at 320.327 million oz.


Feb 5.we had no change in silver inventory/320.327 million oz/


Feb 4/we had a small withdrawal of 136,000 oz of silver from the SLV vaults/Inventory/320.327 million oz

feb 3.2015: we had a good addition of 1.149 million oz of silver inventory/inventory 320.463 million oz

Feb 2 no change in silver inventory at the SLV/inventory at 319.314

million oz.

jan 30  no change in silver inventory at the SLV/inventory at 319.314

million oz

Jan 29/no change in silver inventory/SLV inventory at 319.314 million oz

Jan 28/no changes in silver inventory/SLV inventory at 319.314 million oz

Jan 27/no change in silver inventory/SLV inventory at 319.314 million oz

Jan 26.2015: no change in silver inventory/SLV inventory at 319.314 million oz

jan 23/2015/ a  huge addition of 1.053 million oz.  This entity is also being quite volatile/Inventory at SLV 319.314 million oz.

Jan 22 a huge reduction of 6.75 million oz/Inventory at 318.261 million oz

Jan 21 no change in silver inventory/Inventory at 325.011 million oz




feb 6/2015 we had no change in silver inventory/

SLV inventory registers: 320.327 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  5.7% percent to NAV in usa funds and Negative 6.1 % to NAV for Cdn funds!!!!!!!

Percentage of fund in gold 61.1%

Percentage of fund in silver:38.5%

cash .4%


( feb6/2015)


2. Sprott silver fund (PSLV): Premium to NAV rises to + 3.76%!!!!! NAV (Feb 6/2015)

3. Sprott gold fund (PHYS): premium to NAV rises to +.37% to NAV(feb 6 /2015)

Note: Sprott silver trust back  into positive territory at +3.76%.

Sprott physical gold trust is back into positive territory at +.37%

Central fund of Canada’s is still in jail.





And now for the COT report


First the gold COT:


This takes in the collapse of OI as we enter into the front month of February:



Gold COT Report – Futures
Large Speculators Commercial Total
Long Short Spreading Long Short Long Short
229,006 43,991 28,674 117,174 320,447 374,854 393,112
Change from Prior Reporting Period
-9,401 -5,491 -10,141 -152 -3,039 -19,694 -18,671
166 61 70 49 55 244 162
Small Speculators  
Long Short Open Interest  
44,670 26,412 419,524  
939 -84 -18,755  
non reportable positions Change from the previous reporting period
COT Gold Report – Positions as of Tuesday, February 03, 2015


Our large specs:


Those large specs who have been long in gold somehow as February came about decided to liquidate a massive 9401 contracts


Those large specs who have been short in gold, covered 5491 contracts from their short side.


Our commercials:

Those commercials who have been long in gold, pitched a tiny 152 contracts from their long side


Those commercials who have been short in gold covered 3039 contracts from their short side and this is when gold was rising.


Our small specs:

Those small specs who have been long in gold added 939 contracts to their long side


Small specs;

Those small specs who have been short in gold covered 84 contracts from their short side.



and now for silver;


Silver COT Report: Futures
Large Speculators Commercial
Long Short Spreading Long Short
64,166 13,593 18,947 65,063 121,262
-1,556 1,218 3,390 5,099 -295
76 40 45 38 48
Small Speculators Open Interest Total
Long Short 168,486 Long Short
20,310 14,684 148,176 153,802
-887 1,733 6,046 6,933 4,313
non reportable positions Positions as of: 134 118
Tuesday, February 03, 2015   © Silver


Our large speculators:

Those large specs that have been long in silver pitched 1556 contracts from their long side


Those large specs that have been short in silver added another 1218 contracts to their short side


Our commercials:

Those commercials that have been long in silver added 5099 contracts to their long side

Those commercials that have been short in silver covered 295 contracts from their short side.


Our small specs:

Those small specs that have been long in silver pitched 877 contracts from their long side

Those small specs that have been short in silver added 1733 contracts to their short side.





And now for your most important physical stories on gold and silver today:




Early gold trading from Europe early Friday  morning:

(courtesy Mark O’Byrne)


“Forgive Us Our Debts” – Debt Forgiveness Only Way To Prevent Economic Meltdown



– Europe and western world is in a debt-fuelled deflation which is spiralling out of control

– Global debt has risen a massive $57 trillion or more than 25% in 7 years since the crisis of 2008

– Managed debt forgiveness is essential now to avoid chaos of defaults, mass unemployment depression and economic collapse

And forgive us our debts, as we also have forgiven our debtors” – Matthew

The bully tactics employed by the ECB against the newly elected government in Greece demonstrates once again how the ECB and the entire European project puts the interests of banks and political elites over those of the average citizen.

Certainly, it is necessary to take a tough stance regarding fiscal responsibility and discipline. Very few people suggest otherwise.

However, the ECB maintains a different set of standards when it comes to supporting the banking system as demonstrated by its imminent initiation of quantitative easing (QE).

QE has failed in Japan and only had a degree of success in the UK and the U.S. Even Alan Greenspan admitted that it has been a “terrific success” for the rich but had failed to meet its stated objectives.

In time, deflation will likely lead to even greater QE and “emergency” QE debt monetisation. This will likely lead to high inflation and stagflation.  Given the dollar’s current status as global reserve currency – this would quickly become a global phenomenon.

Where was the discipline in the run up to the 2008 prelude-crisis when major northern European banks were pumping vast amounts of liquidity and irresponsibly lending into obviously overheated property sectors of economies like Ireland, Greece, Spain, Portugal and Italy?

What consequences were suffered by Goldman Sachs when it was revealed in 2008 that the bank had aided the profligate Greek government to cook the books, legally of course, so as to facilitate it in borrowing €1 billion from the ECB which it could not afford?

Goldman went on to buy insurance on Greek debt demonstrating its complete lack of faith in its own actions and its ability to profit from poor advice proffered to clients and the public.

Not only was there no sanction against Goldman, rather one of its own, Mario Draghi, replaced Jean Claude Trichet as Chairman of the ECB.

Two years later Mario Monti, who also had very close ties to Goldman, was appointed without election to replace Silvio Berlusconi as Prime Minister of Italy following his forced resignation.

While the people of the peripheral PIIGS nations were told that the book stops with them and they were responsible for the losses of private institutions in their countries, banks who facilitated the binge were rewarded with even greater influence as the unelected technocrats further consolidated power.

Why the book should stop with the country of the profligate borrower and not that of the profligate lender or European agencies who are supposed to manage the currency is an important point.

It is a point which is breeding a festering resentment towards the European project.

The new government in Greece has made it clear that it intends to get Greece back on its feet through cuts in spending. However, it insists that those cuts cannot be made at the expense of the most vulnerable in Greece. It therefore rejects the dictats of the Troika.

Finance minister Varoufakis has consistently displayed a will to reach a fair and practical settlement and a willingness to cooperate with Europe. The reforms he proposes cannot be made overnight.

Greece is in a depression. Many European countries are in recession. Europe as a whole, including Germany, is experiencing deflation. Should deflation take hold, Europe will likely experience full blown depression.

Clearly, as Greece’s government points out, it can not be business as usual.

The euro looks increasingly like a failed currency. It has been in crisis and caused hardship for the people it is supposed to serve for the greater part of the time it has been in existence.

The Greek government is trying to open discussion as to how the European project can be reformed to benefit all its citizens. The response by the ECB on Monday night is telling. The status quo of debt-riddled nations is not up for negotiation even as the EU hurtles towards the cliff edge.

At the heart of the entire crisis is the problem of debt. Europe is mired in debt. The western world is mired in debt. Even China is mired in debt.

The Guardian reports that “Global debt has grown by $57 trillion in seven years following the financial crisis” – a rise of more than 25%. China now has a greater debt to GDP ratio than even the U.S.

Average Europeans are choking on debt. The reason Europe is now in deflation is because not many people or businesses can afford to take on new debt.

This means that – given paper and electronic currency has no intrinsic value and comes into existence as a debt – without new borrowing, the money to repay interest on existing loans simply does not exist. This causes the weakest of existing loans to go into default which removes even more money from the system.

The process feeds on itself resulting in a depression. The problem is then compounded by excess industrial capacity forcing business to lower prices, cut costs and make workers unemployed.

Time is running out for Europe, Europeans and the world. We can wait for the system to crash into the brick wall or we can take the responsible approach and discuss contingency plans.

If these measures are left to unelected and demonstrably incompetent bureaucrats behind closed doors, when the time comes we can expect  bail-ins of deposits, capital controls, high taxes with cuts to public services and repression as the burden is shifted once again onto the citizenry.


We should applaud the new Greek government for their courage in pushing for reform in Europe. This is not an advocacy for left-wing politics. In another time and place we might find ourselves opposed to Syriza and we do not agree with all their policies.

However, in this time and place, centrist governments dominate the political landscape and take orders from Brussels to intervene protecting the interests of financial institutions and banks at the expense of their suffering electorates.

We need more parties like Syriza in power in Europe. We urgently need debate as to how to manage the unavoidable catastrophe which fast approaches. We believe a managed program of debt forgiveness is essential to avert the economic chaos that would ensue from mass defaults and depression.

“Prepare for the worst but hope for the best …”

Protecting Deposits in the Coming Bail-in Era Click here


Today’s AM fix was USD 1,264, EUR 1,103.64 and GBP 824.74 per ounce.
Yesterday’s AM fix was USD 1,263.75, EUR 1,106.71 and GBP 828.80 per ounce.

Yesterday, gold and silver were mixed. Gold gained 0.36 per cent or $4.90 yesterday, closing at $1,270.20, while silver fell 0.35 percent or $0.06, closing at $17.30.


In Asian trading, Singapore gold moved sideways and this trend continued in European trade. Gold is marginally higher ahead of US nonfarm payroll numbers and unlikely to make big moves until the NFP number is released at 1330 GMT.

Gold remains on track to end the week down just over 1%. The range this morning has been pretty narrow, less than $7/oz, ahead of this afternoon’s non-farm payrolls data.

Silver is also flat,while, platinum and  palladium are marginally higher.

Sentiment towards gold continues to improve and this is seen in the ETF gold demand numbers. Holdings at SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose to 24.86 million ounces on yesterday, the highest since September.


Gold in Dollars – 5 Years (GoldCore)

Gold should be supported by the continuing Greek debt saga and deepening tensions between the U.S. and NATO and Russia.

Greece’s new Finance Minister clashed openly with his powerful German counterpart after blunt talks in Berlin. German Finance Minister Wolfgang Schaeuble said he had told Greece’s Yanis Varoufakis it was not realistic to make electoral promises that burdened other countries, and they had “agreed to disagree.”

Greece’s borrowing costs have leapt and bank shares plunged following the ECB’s decision to stop funding the country’s lenders. Greek banks were already struggling with big outflows of deposits and stealth bank runs are believed to be continuing.

Gold in Euros – 5 Years (GoldCore)

Nato is to bolster the alliance’s military presence in Eastern Europe in response to increased fighting in eastern Ukraine between government forces and pro-Russia rebels. Six bases are being set up and a 5,000-strong “spearhead” force established.

The U.S. is now talking about arming Ukraine which will further inflame the situation and likely lead to an escalation in the conflict.

German Chancellor Angela Merkel says she and French President Francois Hollande will “use all our power” on their visit to Moscow to try and stop the bloodshed in eastern Ukraine.

Speaking Friday before flying to Russia for talks with President Vladimir Putin, Merkel said she could not say whether she and Hollande, who were in Kiev for talks Thursday with the Ukrainian government, would be able to achieve a new cease fire.