March 24/More gold leaving the comex (25,720.oz)/gold and silver rise/Gold open interest rises but silver OI falls/Huge imports of gold into India so far in March equal to 130 tonnes/India expects monthly totals to exceed 150 tonnes/

 

 

 

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Good evening Ladies and Gentlemen:

 

 

Here are the following closes for gold and silver today:

 

Gold:  $1191.70 up $3.70 (comex closing time)

Silver: $16.97 up 9 cents (comex closing time)

 

In the access market 5:15 pm

 

Gold $1189.50

Silver: $17.00

 

Gold/silver trading:  see kitco charts on the 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 0 notices served for nil oz.  Silver comex registered 106 notices for 530,000 oz .

Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 245.34 tonnes for a loss of 58 tonnes over that period. Lately the removals  have been rising!

 

In silver, the open interest fell by 1527 contracts, due to short covering, as Monday’s silver price was unchanged. The total silver OI continues to remain extremely high with today’s reading at 174,123 contracts. The front month of March rose by 63 contracts to 604 contracts. We are still close to multi year high in the total OI complex despite a record low price. This dichotomy has been happening now for quite a while and defies logic. There is no doubt that the silver situation is scaring our bankers to no end.

 

We had  106 notices served upon for 530,000 oz.

 

In gold we had a huge rise in OI as gold was up by $3.20 yesterday. The total comex gold OI rests tonight at 447,773 for a whopping gain of 11,094 contracts. Today, surprisingly we again had 0 notices served upon for nil oz.

 

Today, we had no changes  at the GLD/  Gold Inventory rests at 744.40  tonnes

 

In silver, /SLV  we had a withdrawal of 835,000 oz of  inventory at the SLV/Inventory, at 325.323 million oz

 

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

1, Today we again had some short covering in the silver comex with the silver OI falling by 1527 contracts.  Gold OI again rises by a whopping 11,094 contracts.  Both gold and silver rose nicely today. Again we had 25,720 oz of gold leave the comex vaults.  (report Harvey)

2, Soros states that there is a 50:50 chance of a Greek exit as they are going down the drain  (Bloomberg)

3.On the weekend there was rioting on the streets of Spain.  They are calling for a national strike in October, one month before the general elections.

 

(courtesy common dreams)

4. Koos Jansen reports that India so far in the month of March has imported 130 tonnes.  They are heading for 150 tonnes this month.  What is strange is that the 10% tax of gold is still on which indicates that smuggling still must be taking place.  India will now rival China in importing the greater number of gold ounces

(Koos Jansen)

5. USA are sending in their muscle as they try to get Iran to an agreement on their nuclear ambitions.

(courtesy zero hedge.

6. Poor Chinese PMI numbers (manufacturing) seems to suggest China is heading for a hard landing.

(zero hedge)

7. Another poor manufacturing number in the uSA:  today the Richmond Fed mfg survey disappoints.

 

(zero hedge)

 

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 a whopping 11,094 contracts from 436,679 up to 447,773 as gold was up by $3.20 yesterday (at the comex close). We are now in the contract month of March which saw it’s OI remain constant at 108 for a loss of 0 contracts. We had 0 notices filed upon on Friday so we neither lost nor gained any gold contracts that will stand for delivery in this delivery month of March. The next big active delivery month is April and here the OI fell by 11,701 contracts down to 180,814.  We have 7 days before first day notice for the April gold contract month, on March 31.2015. The estimated volume today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was poor at 122,829.  (Where on earth are the high frequency boys?). The confirmed volume on yesterday ( which includes the volume during regular business hours + access market sales the previous day) was good at 218,038 contracts. Today we had 0 notices filed for nil oz.

 

And now for the wild silver comex results.  Silver OI fell by 1527 contracts from 175,650 down 174,123 despite the fact that silver was unchanged with respect to Friday’s trading and this is in total contrast to gold. We therefore again had some more short covering by our bankers. We are now in the active contract month of March and here the OI rose by 63 contracts rising to 604. We had 39 contracts served upon yesterday. Thus we gained 102 contracts or an additional 510,000 oz will stand in this March delivery month. The estimated volume today was simply awful at 19,520 contracts  (just comex sales during regular business hours.  The confirmed volume on Friday (regular plus access market) came in at 46,330 contracts which is good in volume. We had 106 notices filed for 530,000 oz today.

 

March initial standings

March 24.2015

 

 

Gold

Ounces

Withdrawals from Dealers Inventory in oz  nil
Withdrawals from Customer Inventory in oz  25,720.000 oz (Manfra and Scotia???)
Deposits to the Dealer Inventory in oz nil
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)  108 contracts (10,800 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  114,790.651 oz

Total accumulative withdrawal of gold from the Customer inventory this month

 652,108.9 oz

Today, we had 0 dealer transaction

total Dealer withdrawals: nil oz

we had 0 dealer deposit

total dealer deposit: nil

 

we had 2 customer withdrawals

 

i) Out of Manfra:  225.05 oz  (7 kilobars)

ii) Out of Scotia:  25,494.95 oz (793 kilobars)

total customer withdrawal: 25.720.000 oz  (800 kilobars)

we had 0 customer deposits:

 

We had 1 adjustment

 

i) an accounting error subtraction from the customer side of JPMorgan for .032 oz

 

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 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 March contract month, we take the total number of notices filed so far for the month (8) x 100 oz  or  800 oz , to which we add the difference between the open interest for the front month of March (108) and the number of notices served upon today (0) 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 (8) x 100 oz  or ounces + {OI for the front month (108) – the number of  notices served upon today (0) x 100 oz} =  11,600 oz or  .3608 tonnes

 

we neither gained nor lost any gold ounces standing in the March delivery month.

Total dealer inventory: 658,537.414 oz or 20.48 tonnes

Total gold inventory (dealer and customer) = 7,887,972.713 million oz. (245.34) tonnes) *** somehow the total gold position was changed last night, adding around 2 tonnes of gold.

Several weeks ago we had total gold inventory of 303 tonnes, so during this short time period 59.0 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 24 2015:

 

 

Silver

Ounces

Withdrawals from Dealers Inventory nil oz
Withdrawals from Customer Inventory 65,541.935 oz (Delaware, CNT,Scotia)
Deposits to the Dealer Inventory  541,586.36 oz (CNT)
Deposits to the Customer Inventory 59,381.231 oz (Delaware,CNT)
No of oz served (contracts) 106 contracts  (530,000 oz)
No of oz to be served (notices) 498 contracts (2,490,000)
Total monthly oz silver served (contracts) 2149 contracts (10,745,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month
Total accumulative withdrawal  of silver from the Customer inventory this month  7,015,598.4 oz

Today, we had 1 deposit into the dealer account:

i) Into CNT:  541,586.36 oz

total dealer deposit: 541,586.36   oz

 

we had 0 dealer withdrawal:

total dealer withdrawal: nil oz

 

We had 2 customer deposits:

i) Into Delaware;  1,076.021 oz

ii) Into CNT; 58,305.210 oz

 

total customer deposit: 59,381.231 oz

 

We had 3 customer withdrawals:

 

i) Out of CNT:  3075.335 oz

ii) Out of Delaware; 1998.800 oz

iii) Out of Scotia:  60,541.935 oz

 

total withdrawals;  65,541.935 oz

 

we had 1 adjustment:

 

i) out of CNT:  6097.910 oz was adjusted out of the customer and into the dealer at CNT.

 

Total dealer inventory: 70.569 million oz

Total of all silver inventory (dealer and customer) 175.346 million oz

.

The total number of notices filed today is represented by 106 contracts for 530,000 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 (2149) x 5,000 oz    = 10,745,000 oz to which we add the difference between the open interest for the front month of March (604) and the number of notices served upon today (106) x 5000 oz  equals the number of ounces standing.

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

2149 (notices served so far) + { OI for front month of March(604) -number of notices served upon today (106} x 5000 oz =  13,235,000 oz standing for the March contract month.

we gained an additional 510,000 oz of silver standing in this March delivery month.

 

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 24/ no changes in gold inventory at the GLD/Inventory 744.40 tonnes

 

March 23/we had a huge withdrawal of 5.37 tonnes of gold from the GLD vaults/Inventory 744.40 tonnes

march 20/we had no changes in  inventory at the GLD/Inventory at 749.77 tonnes

March 19/we had no changes in inventory at the GLD/Inventory 749.77 tonnes

March 18/ we had a withdrawal of .9 tonnes of gold from the GLD/Inventory at 749.77 tonnes

March 17.2015: no change in gold inventory at the GLD/Inventory 750.67 tonnes

March 16/no change in gold inventory at the GLD/Inventory 750.67 tonnes

 

 

 

 

March 24/2015 /  we had no changes in gold/Inventory at 744.40 tonnes

inventory: 744.40 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 : 744.40 tonnes.

 

 

end

 

 

 

And now for silver (SLV):

 

March 24.2015/ we had another withdrawal of 835,000 oz of silver from the SLV/Inventory rests tonight at 325.323 million oz

 

March 23./we had a huge withdrawal of 1.174 million oz of silver from the SLV vaults/Inventory 326.158 million oz

March 20/ no changes in silver inventory/327.332 million oz

March 19/ no change in silver inventory/327.332 million oz

March 18/ no change in silver inventory/327.332 million oz

March 17/ no change in silver inventory/327.332 million oz

March 16/no change in silver inventory/327.332 million oz

 

 

March 24/2015 we had a small withdrawal of 835,000  oz of  silver inventory at the SLV/ SLV inventory rests tonight at 325.323 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  8.3% percent to NAV in usa funds and Negative 8.5% to NAV for Cdn funds!!!!!!!

Percentage of fund in gold 61.5%

Percentage of fund in silver:38.1%

cash .4%

( March 24/2015)

 

Sprott gold fund finally rising in NAV

2. Sprott silver fund (PSLV): Premium to NAV falls to + 1.26%!!!!! NAV (March 24/2015)

3. Sprott gold fund (PHYS): premium to NAV falls -.41% to NAV(March 24  /2015)

Note: Sprott silver trust back  into positive territory at +1.26%.

Sprott physical gold trust is back into negative territory at -.41%

Central fund of Canada’s is still in jail.

 

end

 

 

And now for your more important physical gold/silver stories:

 

 

Gold and silver trading early this morning

 

 

(courtesy Mark O’Byrne)

 

HSBC Not Closing Gold Vaults – Safety Deposit Boxes of Clients‏ Being Closed

– Incorrect rumors abound around blogosphere that HSBC is rapidly and quietly closing gold vaults
– HSBC are in fact closing down their safety deposit box facilities in vaults in branches
– Banks internationally closing boxes as not profitable and move to “cashless society”
– Incorrect speculation that HSBC move forcing gold clients to sell bullion
– Speculation understandable given poor communications from HSBC and manipulation of precious metal markets
– Salutary lesson to all – media and blogosphere – to be more rigorous
– Underlines vital importance of owning gold in allocated manner outside financial system

An incorrect rumor that HSBC is rapidly and quietly closing gold vaults where clients gold bullion was stored and gold in the GLD ETF is stored has been swirling around the internet.

Safety Deposit Boxes in Sentinel Vaults in Dublin, Ireland

After conversations with key players in the industry including a bullion dealer who used the safety deposit boxes for storage and delivery to clients, we can now confidently say that the speculation was incorrect.

What HSBC is actually doing is closing its safety deposit box facilities some of which are in vaults and strong rooms in branches. The vaults are not specialist gold vaults rather standard vaults or strong rooms which contain safety deposit boxes. These safety deposit boxes hold all sorts of valuables – from legal documents, to family heirlooms, to art works, to jewellery and of course bullion coins and bars.

Availability of safety deposit boxes is in decline in Britain and much of the world. Costs of security, insurance and opportunity to use such facilities in a more profitable manner are driving the closures. Banks in Ireland including the Bank of Ireland claim that the safety deposit boxes are “causing an unacceptable health, safety and security risk in some branches.”

While the move is understandable from a purely profit motive point of view, it must be remembered that this is a greatly needed service by many people including entrepreneurs and professionals who need to safe keep important legal documents that they are not comfortable keeping in a home or office. It is also a greatly needed service for the elderly and other people who have valuable jewelry and heirlooms that they are uncomfortable keeping in the house.

It is another case of banks blindly pursuing profit ahead of the interests of their own clients.

Banks and insolvent governments desperate for cash likely also dislike safety deposit boxes as they are means for people to protect and grow wealth and protect themselves from inflation and indeed bail-in and deposit confiscation. A percentage of box holders so store cash and bullion.

In our brave new  world of the ‘cashless society’, the financial independence and freedom that a safety deposit box confers upon the citizen is frowned upon.

As a consequence citizens are being deprived of the opportunity of having their savings, valuables and wealth stored outside of the increasingly precarious financial system and digital banking system.

The implications of the rumours were significant. Analysts speculated that a precious metals market disruption might be imminent and with it delivery calls by clients who believe they own physical gold in GLD which HSBC most likely could not meet.

Such an event would likely have a dramatic upward effect on the price of gold not to mention a catastrophic effect on the finances of those who believe they actually own physical gold in ETFs. Irish Finance Minister, Michael Noonan, being one recent buyer of the gold ETF.

The misunderstanding regarding HSBC closing its deposit box facilities had led to speculation by people familiar with the underlying dynamics of precious metals markets. HSBC was implicated in a gold price manipulation scandal last year, and has been fined numerous times in the past decade for an array of corrupt practices.

As “the largest COMEX/NYMEX depository”, according to their website, they are viewed by sceptics as having both a capacity and a track record to manipulate precious metals prices.

This view was compounded back in 2012 when respected analyst, Ned Naylor-Leyland, tracked the serial number of a gold bar that was presented on CNBC as belonging to the GLD ETF, of which HSBC is custodian.

Naylor-Leyland discovered that the bar, in fact belonged to a different ETF – ETF Securities – fuelling speculation that GLD did not have the gold it claimed to be in possession of and that gold is rehypothecated.

The recent misunderstanding regarding HSBC’s gold vaults, when viewed from this perspective, is understandable. Long time observers of the precious metals markets are aware of the price suppression actions that occur.

These include the dumping of contracts for massive volumes of gold onto the market at quiet periods – often after the close of business on the COMEX or after Asian trading and before European markets commence trading. In the absence of demand, the huge supply of paper contracts for gold overwhelms the market forcing the price down and triggering stop losses which then accelerate the sell-offs.

The sellers of these contracts are clearly not looking for the best price for their asset. The aim is to force down the price in illiquid markets. The seller can then buy back contracts for the same volume of gold at a greatly reduced price for a large profit.

The incorrect information regarding the HSBC vaults thus sparked intense speculation that some major developments were afoot in the gold market and HSBC was using the closures to force clients to sell their gold.

However, it is the case that those owning gold in HSBC’s safety deposit boxes do not have to sell their gold and most won’t. They have 60 days to find new secure storage and we are already seeing flows in this regard.

The rapidity with which this information became received wisdom is a salutary lesson for the alternative media and the gold blogosphere. Bloggers need to be rigorous in establishing facts as they will be held to a much higher standard by the mainstream media – higher, even, than the latter sometimes hold for themselves.

It also again underlines the vital importance of owning allocated and segregated gold outside the global banking system, in the safest vaults in the world.

How To Store Gold Bullion – 7 Key Must Haves


MARKET UPDATE

Today’s AM fix was USD 1,193.25, EUR 1,085.56 and GBP 798.96 per ounce.
Yesterday’s AM fix was USD 1,181.40, EUR 1,086.15  and GBP 791.77 per ounce.

Gold climbed 0.625 percent or $7.40 and closed at $1,190.60 an ounce yesterday, while silver surged 1.97 percent or $0.33 at $17.06 an ounce.

Gold in US Dollars - 1 Week

Gold remained firm near its two week high reached yesterday in spite of disappointing Chinese PMI figures. In Singapore, bullion for immediate delivery initially fell prior to gains and was $1,187.46 an ounce near the end of day. These gains continued in European trading.

Dollar weakness in recent days, the chance of Greece leaving the euro and the continuing crisis in the Ukraine are all supporting gold.

John Williams,  San Francisco Fed chief said in Australia yesterday that policymakers should wait no more than a

few months before considering raising U.S. interest rates from their current near-zero level. A Reuters poll of analysts show that they are expecting a U.S. interest rate hike in September now rather than June.

An Airbus operated by Lufthansa’s Germanwings budget airline crashed in southern France on this morning and all 148 on board were feared dead. French President Francois Hollande said he believed none of those on board had survived.”There were 148 people on board,” Hollande said. “The conditions of the accident, which have not yet been clarified, lead us to think there are no survivors.”
In London spot gold in late morning trading is at $1,194.96 or up 0.47 percent. Silver is $17.11 or up 0.25 percent and platinum is $1,147.96 or up 0.06 percent.

 

 

end

 

I was waiting for this to happen:

 

(courtesy GATA)

 

China’s Zijin in talks to buy gold, copper mines abroad

Section:

By Polly Yam
Reuters
Monday, March 23, 2015

HONG KONG — China’s Zijin Mining Group Co. Ltd. is in talks to buy gold and copper mining assets abroad and expects to finalise some acquisitions this year, its chairman said on Monday.

Chen Jinghe said that current market conditions were favourable for acquisitions but did not identify targets.

Some talks “have almost reached maturity. … This year there will be some important results,” Chen told a news conference in Hong Kong after the company’s 2014 earnings. …

… For the remainder of the report:

http://www.reuters.com/article/2015/03/23/zijinmining-results-ma-idUSL3N…

 

end

 

 

 

The following is huge.  India still has a 10% duty (and a very thorough smuggling scheme) with respect to gold and yet they have already imported 130 tonnes of gold so far in March.  They will probably import at least 150 tonnes this month.  At this rate, they will import 1800 tonnes.  Together with China who also demands 2200 tonnes we are looking at 4000 tonnes of gold demanded by just these two countries. We can also add an unknown quantity of Chinese sovereign gold demanded.  We know that demand for jewelry is around 3300 tonnes per year, so we have a huge differential in demand over supply and this must come from somewhere.  The USA has a maximum of 8,100 tonnes supposedly (USA owned gold) and the Federal Reserve bank of NY supposedly has around 6400 tonnes of gold (foreign owned gold). With demand this great it will not take long for the entire globe’s vaults to become completely bare.

 

(courtesy Koos Jansen)

 

 

 

Posted on 24 Mar 2015 by

Indian Gold Import Exploding In March

March has not even ended, though preliminary data indicates India has already imported over 130 tonnes of gold this month. A conservative estimate suggests total gross import can reach 150 tonnes of gold this month.

Because of a “current account deficit” the Indian government decided in March 2012 to raise to import duty on gold from 2 % to 4 %, in June 2013 from 4 % to 8% and in August 2013 from 8 % to 10 %. Additionally, in August 2013 the 80/20 rule was implemented, which was eventually withdrawn in December 2014.

The restrictions the Indian Government implemented on gold trade spawned new life to smuggling cartels with all due consequences. Official Import fell drastically, wiping out any revenues the government collected from the import of the yellow metal. In May 2013 Indian gross gold import accounted for 168 tonnes, by September 2013 a multi year low was reached at 15 tonnes. Premiums in India, over London spot prices, skyrocketed to a staggering 25 %.

Indian gold Premiums march 2015

For a close look at recent import data let’s start with January; India officially gross imported a meager 39 tonnes, though up 9 % year on year. In February gross import accounted for 50 tonnes, up 57 % y/y. Then, the real surprise came this month; as said previously preliminary data (derived from daily numbers at Infodrive) suggests gross import accounts for 130 tonnes (March 2 – 21). When India’s Directorate General of Commercial Intelligence & Statistics will publish official data somewhere around April 13, we know the exact imported tonnage for March.

India Gold trade 3-2015

Perhaps surging import is caused by a falling price since the beginning of the year combined with the relaxation of import restrictions. Remarkably, premiums are staying close to 12 % (including the 10 % import duty), sourcing the metal is no problem.