March 6/HSBC closing all 7 of its London gold vaults!! Why? They are custodians of GLD/Is gold backing the GLD?/Greece pays the IMF 310 million euros borrowing funds from its pension funds/zero contribution from foreigners on Greek auction/Where will next set of funds come from/ECB refuse an emergency meeting with Greek Prime Minister

Good evening Ladies and Gentlemen:

Here are the following closes for gold and silver today:

Gold: $1164.10 down $31.80   (comex closing time)
Silver: $15.78 down 35 cents  (comex closing time)

 

 

In the access market 5:15 pm

 

 

Gold $1167.20
silver $15.90

 

 

 

 

 

 

 

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

 

 

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

 

 

The gold comex today had a poor delivery day, registering 4 notices served for 400 oz.  Silver comex registered 8 notices for 40,000 oz .

 

Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 260.85 tonnes for a loss of 42 tonnes over that period.

 

In silver, the open interest rose by only 381 contracts even though Wednesday’s silver price was flat yesterday. The total silver OI continues to remain relatively high with today’s reading at 163,898 contracts. The front month of March contracted by 41 contracts.

We had  8 notices served upon for 40,000 oz.

 

In gold we had a rise in OI as gold was down by $4.70 yesterday. The total comex gold OI rests tonight at 406,719 for a gain of 3585 contracts. Today, surprisingly we again had only 4 notices served upon for 400 oz.

 

 

 

Today, we had a huge withdrawal of 4.48 tonnes of gold at the GLD/Inventory rests at 756.32  tonnes

 

In silver, /SLV  we had a huge addition of 1.34 million oz in inventory at the SLV/Inventory at 327.332 million oz /strange indeed!!

 

 

 

We have a few important stories to bring to your attention today…

 

1. The USA jobs report and dissection by zero hedge and Dave Kranzler

2. HSBC is closing all 7 of its vaults in London.  Remember these guys are the custodians to the GLD.  Are they closing because the gold is not there?  If it is there, to whom are they transferring the gold to? This is a very profitable business for HSBC, so why are they closing all physical vaults?

3.  The Greece affair.

As we outlined to you yesterday, the Greek Parliamentarians raided the pension funds in order to pay the iMF.  This was done on a Repo transaction.  They have to repay the pension accounts in 15 days.

The treasury bills auctioned this week must settle next week. We learned that no foreign accounts wished to purchase or roll their treasuries.  In other words, the foreigners do not want to gamble any longer and they want their cash.  If the money went to the IMF who is going to pay the sellers of the latest treasury bill auction.  Who is going to fund the next 3 weeks of IMF loans due.

 

Also Greece announced a hair brained scheme to try and collect the 76 billion euros of taxes owed.  They are going to hire hourly people for two months wearing a wire trying to catch tax evaders.  I wish them all the luck in the world..

 

 

4. As we reported to you yesterday, the high USA dollar is having a devastating effect on USA industrial production.  In the same token the lower Euro is helping Germany and other European nations with their exports.

 

We see how the higher dollar is having a negative impact on the USA trade deficit.

5. Even though silver was whacked today, the SLV added 1.34 million oz to its inventory/gold lost a massive 4.48 tonnes of gold.

 

 

we have these and other stories for you tonight.

 

 

 

 

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 by 3585 contracts today from 403,134 up to 406,719 even though  gold was down by $4.70 yesterday (at the comex close). We are now in the contract month of March which saw it’s OI remain constant at 153. We had 0 notices filed on yesterday so we neither gained nor lost any gold contracts standing for delivery in this  delivery month of March. The next big active delivery month is April and here the OI fell by 1736 contracts down to 251,003. The estimated volume today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was poor at 106,952. The confirmed volume yesterday ( which includes the volume during regular business hours  + access market sales the previous day) was poor at 159,126 contracts even  with mucho help from the HFT boys. Today we had 4 notices filed for 400 oz.

And now for the wild silver comex results.  Silver OI rose by 381 contracts from 163,517 up to 163,898 with silver flat with respect to Thursday’s trading. We are now in the active contract month of March and here the OI fell by 41 contracts down to 956. We had 33 contracts served yesterday. Thus we lost 8 contracts or 40,000 oz will not stand. The estimated volume today was poor at 24,931 contracts  (just comex sales during regular business hours. The confirmed volume yesterday (regular plus access market) came in  at 24,501 contracts which is also quite poor in volume. We had 8 notices filed for 40,000 oz today.

March initial standings

 

March 6.2015

Gold

Ounces

Withdrawals from Dealers Inventory in oz  47,744.11 oz (Brinks)
Withdrawals from Customer Inventory in oz   2146.017 oz (HSBC,Brinks)
Deposits to the Dealer Inventory in oz 2000.12 oz (Brinks)
Deposits to the Customer Inventory, in oz 169,852.123 oz (JPMorgan/Manfra)
No of oz served (contracts) today 4 contracts (400 oz)
No of oz to be served (notices)  149 contracts (14,900 oz)
Total monthly oz gold served (contracts) so far this month 5 contracts(500 oz)
Total accumulative withdrawals  of gold from the Dealers inventory this month  114,790.651 oz

Total accumulative withdrawal of gold from the Customer inventory this month

 25,088.9 oz

Today, we had 2 dealer transactions

 

i) Out of Brinks:  47,744.11 oz

 

total Dealer withdrawals: 47,744.11 oz

 

 

 

we had 1 dealer deposit

 

i) Into Brinks 2000.12 oz

 

total dealer deposit:  2000.12 oz

 

we had 2 customer withdrawals

 

i) Out of HSBC: 602.797 oz

ii) Out of Brinks: 1,543.22 oz

total customer withdrawal: 2,146.017  oz

 

 

we had 2 customer deposits:

 

i) Into JPMorgan:  168,887.623 oz

ii) Into Manfra:  964.500 oz (30 kilobars)

total customer deposits;  169,852.123  oz

 

We had 1 adjustment

 

i) Out of Brinks:

 

385.80 oz was adjusted out of the customer account at Brinks and this landed in the dealer account of Brinks

 

 

 

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 4 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 March contract month, we take the total number of notices filed so far for the month (5) x 100 oz  or  500 oz , to which we add the difference between the open interest for the front month of March (153) and the number of notices served upon today (4) x 100 oz equals the number of ounces standing.

 

Thus the initial standings for gold for the March contract month:

 

No of notices served so far (5) x 100 oz  or ounces + {OI for the front month (153) – the number of  notices served upon today (4) x 100 oz} =  15,400 oz or .4790 tonnes

 

we neither lost nor gained any gold ounces standing in this March contract month.

 

Total dealer inventory: 654,644.474 oz or 20.362 tonnes

Total gold inventory (dealer and customer) = 8.386 million oz. (260.85) tonnes)

 

Several weeks ago we had total gold inventory of 303 tonnes, so during this short time period 42 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.

 

 

end

 

 

 

And now for silver

 

March silver initial standings

March 6 2015:

Silver

Ounces

Withdrawals from Dealers Inventory nil oz
Withdrawals from Customer Inventory 1111.735 oz (HSBC,Brinks)
Deposits to the Dealer Inventory   nil oz
Deposits to the Customer Inventory 482,282.100  oz (Scotia)
No of oz served (contracts) 8 contracts  (40,000 oz)
No of oz to be served (notices) 948 contracts (4,740,000)
Total monthly oz silver served (contracts) 1673 contracts (8,365,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month
Total accumulative withdrawal  of silver from the Customer inventory this month  1,089,265.5 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 deposit:

 

i) Into Scotia: 482,282.100 oz

 

total customer deposit: 482,282.100 oz

 

 

 

we had 0 adjustment

 

 

Total dealer inventory: 68.855 million oz

Total of all silver inventory (dealer and customer) 178.586 million oz

.

The total number of notices filed today is represented by 8 contracts for 40,000 oz. To calculate the number of silver ounces that will stand for delivery in March, we take the total number of notices filed for the month so far at (1673) x 5,000 oz    = 8,365,000 oz to which we add the difference between the open interest for the front month of March (956) and the number of notices served upon today (8) x 5000 oz  equals the number of ounces standing.

 

Thus the initial standings for silver for the March contract month:

1673 (notices served so far) + { OI for front month of March( 956) -number of notices served upon today (8} x 5000 oz =  13,105,000 oz standing for the March contract month.

 

we lost 8 contracts or 40,000 oz will not stand for delivery in March.

 

 

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

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

 

 

 

end

 

 

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:

 

March 6/we had a huge withdrawal of 4.48 tonnes of gold from the GLD/inventory rests tonight at 756.32/Also HSBC is getting out of the gold business in London and is giving up all of its 7 vaults.

 

March 5 no change in gold inventory at the GLD/760.80 tonnnes

 

March 4/ no change/inventory 760.80 tonnes

 

March 3 we had another 2.69 tonnes of gold withdrawn from the GLD. Inventory is now 760.80 tonnes.

 

March 2  we had 7.76 tonnes of withdrawal from the GLD today and this physical gold landed in Shanghai/Inventory 763.49 tonnes

 

feb 27.2015 no change in gold inventory at the GLD/Inventory at 771.25 tonnes

 

 

Feb 26. no change in gold inventory at the GLD/Inventory at 771.25 tonnes

Feb 25. no change in gold inventory at the GLD/Inventory at 771.25 tonnes

 

Feb 24.2015: no change in gold inventory at the GLD/Inventory at 771.25 tonnes

 

Feb 23.2015: no change in gold inventory at the GLD/Inventory at 771.25 tonnes

 

 

Feb 20/we had another good addition of 1.79 tonnes of gold into the GLD.  Inventory 771.25 tonnes

 

Feb 19/ a huge addition of 1.5 tonnes of gold into the GLD/Inventory 769.46

 

Feb 18/ a small withdrawal of .3 tonnes/no doubt to pay for fees/Inventory 767.96 tonnes

 

Feb 17/no changes in gold inventory at the GLD/Inventory 768.26 tonnes

 

 

 

 

 

 

March 6/2015 / we lost 4.48 tonnes of gold from the GLD/

inventory: 756.32 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 : 756.32 tonnes.

 

 

end

 

 

And now for silver (SLV):

 

 

March 6: huge addition of 1.34 million oz of silver into the SLV/Inventory 727.332 million oz

 

March 5 no change in inventory/725.992 million oz

 

March 4 a slight reduction of  126,000 oz of silver/SLV inventory at 725.992 (probably to pay for fees)

 

March 3 a small deposit of 328,000 oz of silver into the SLV/Inventory at 726.118 million oz.

 

March 2/ no change in silver inventory tonight; 725.734 million oz

 

 

Feb 27.2015 no change in silver inventory tonight: 725.734 million oz

 

 

Feb 26. no change in silver inventory at the SLV/Inventory at 725.734 million oz

 

 

Feb 25. no changes in silver inventory/SLV inventory at 725.734 million oz

Feb 24.we had an addition of 1.435 million oz of silver to the SLV/SLV inventory at 725.734 million oz

 

Feb 23 no change in silver inventory/324.299 million oz

Feb 20 no change in silver inventory/324.299 million oz

 

Fen 19/ we had a huge addition of 4.082 million oz of silver into the SLV/Inventory 324.299 million oz

 

 

Feb 18.2015/ no change in silver inventory at the SLV/Inventory at 320.327 million oz

 

Feb 17 no changes in silver inventory at the SLV/Inventory at 320.327 million oz

 

 

 

 

March 6/2015   a huge addition of 1.34 million oz of silver inventory at the SLV/ SLV inventory rests tonight at 327.332 million oz

 

 

 

 

 

end

 

 

 

 

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  8.5% percent to NAV in usa funds and Negative 8,7% to NAV for Cdn funds!!!!!!!

Percentage of fund in gold 61.5%

Percentage of fund in silver:38.0%

cash .5%

 

( March 6/2015)

 

Sprott gold fund finally rising in NAV

 

 

 

2. Sprott silver fund (PSLV): Premium to NAV falls to + 1.73%!!!!! NAV (March 6/2015)

3. Sprott gold fund (PHYS): premium to NAV falls to -.07% to NAV(March 6  /2015)

Note: Sprott silver trust back  into positive territory at +1.73%.

Sprott physical gold trust is back into negative territory at -.07%

Central fund of Canada’s is still in jail.