March 27/Chinese demand this week: 53 tonnes/gold and silver fall as LBMA options expire today/Austria may have another black swan as Pfandbriefbank looks to be in serious trouble/ expect more dominoes to fall if they fail/

 

 

 

 

 

 

 

Good evening Ladies and Gentlemen:

 

 

Here are the following closes for gold and silver today:

 

 

Gold:  $1199.80 down $5.30 (comex closing time)

Silver: $17.05 down 7 cents (comex closing time)

 

 

In the access market 5:15 pm

 

 

Gold $1198.60

Silver: $16.96

 

 

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 43 notices served for 4300 oz.  Silver comex registered 68 notices for 340,000 oz .

 

Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 248.27 tonnes for a loss of 55 tonnes over that period. Lately the removals  have been rising!

 

In silver, the open interest fell by 629 contracts, due to short covering, as Thursday’s silver price was up by 14 cents. The total silver OI continues to remain extremely high with today’s reading at 171,441 contracts. The front month of March fell by 66 contracts to 146 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  129 notices served upon for 645,000 oz.

 

 

In gold we again have a total collapse of OI as we enter the next active delivery month of April . The total comex gold OI rests tonight at 398,579 for a whopping loss 17,813 contracts. With June gold almost equal to April gold in price, it just does not make sense why so many would liquidate their positions.Today is options expiry for London’s LMBA gold and silver. On Tuesday we have the final options expiry and that is the OTC market. We had 43 notice served upon for 4300 oz.

 

 

 

Today, we had no changes in gold inventory   at the GLD/  Gold Inventory rests at 737.24  tonnes

 

In silver, /SLV  we had a huge withdrawal of 1.439 million oz of silver inventory leave  the SLV/Inventory, at 323.888 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 629 contracts.  Gold OI fell by a whopping 17,813 contracts.

(report Harvey)

 

2. Koos Jansen reports that Chinese demand for the week ending March 20 totaled 53 tonnes.  This excludes Chinese sovereign purchases. Koos also comments that he believes that gold inventory of sovereign China will finally be revealed once they are included in the new SDR calculations.

 

3. Pater Tenenbrarum notes in his latest commentary that Euro basis swaps in the future (against dollars) is negative suggesting problems that will be forthcoming in the markets. He suggests two major problems:

 

i. The Greek debt problems with its associated credit default swaps and interest rates swaps

 

ii. The oversized short USA dollar short position held by the emerging nations and others.

He is extremely worried about a total collapse on both of these.

 

(Peter Tenenbraum)

 

4. Yesterday I reported to you the following: “Russia refuses to take a haircut on the 3 billion usa dollar loan given to the Ukraine. The IMF is requesting everybody take a haircut on its debt for the new loan from the iMF to commence.  Russia can call this note early setting off a disorderly default.  ”  Today Raul Meijer gives a great presentation on this and concludes that Ukraine will default and Russia will not mind if it is messy.  However they do want their money back.

(Raul Meijer)

 

5. It looks like Austria has another potential bank problem with respect to the failure of Hypo bank. It is Pfandbriefbank and this is another black swan that can cause dominoes to fall.

 

 

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 fell by a whopping 17,813 contracts from 416,312 down to 398,579 despite the fact that gold was up by $7.80 yesterday (at the comex close). As I mentioned above, the complete collapse of OI as we enter an active delivery month makes no sense.The fact that we have a middle eastern war, troubles in Ukraine and in Greece and then to have a complete collapse in OI is beyond comprehension. We are now in the contract month of March which saw it’s OI fall to 43 for a loss of 49 contracts. We had 1 notice filed upon on yesterday so we lost 48 gold contracts or an additional 4,800 ounces will not stand for delivery in this delivery month of March. The next big active delivery month is April and here the OI fell by 44,303 contracts down to 67,395.  We have 2 days before first day notice for the April gold contract month, on Tuesday, 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 fair at 165,235.  (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 372,636 contracts. Today we had 43 notice filed for 4300 oz.

And now for the wild silver comex results.  Silver OI fell by 629 contracts from 172,070 down to 171,441 despite the fact that silver was up 14 cents, with respect to yesterday’s trading . 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 fell by 66 contracts falling to 146. We had 129 contracts served upon yesterday. Thus we gained 63 contracts or an additional 315,000 oz will stand in this March delivery month. The estimated volume today was poor at 21,180 contracts  (just comex sales during regular business hours.  The confirmed volume yesterday  (regular plus access market) came in at 52,580 contracts which is excellent in volume. We had 68 notices filed for 340,000 oz today.

 

 

March initial standings

March 27.2015

Gold

Ounces

Withdrawals from Dealers Inventory in oz  nil
Withdrawals from Customer Inventory in oz  64.30 oz (2 kilobars)(MANFRA)
Deposits to the Dealer Inventory in oz nil
Deposits to the Customer Inventory, in oz nil
No of oz served (contracts) today 43 contracts (4300 oz)
No of oz to be served (notices)  0 contracts  (nil oz)
Total monthly oz gold served (contracts) so far this month 52 contracts(5200 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

 656,754.2 oz

Today, we had 0 dealer transaction

total Dealer withdrawals: nil oz

 

 

we had 0 dealer deposit

total dealer deposit: nil

 

 

we had 1 customer withdrawals

i) Out of Manfra:  64.3 oz  (2 kilobars)

 

total customer withdrawal: 64.30 oz

 

 

we had 0 customer deposits:

 

total customer deposit:  nilo 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 43 contract 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 (52) x 100 oz  or  5200 oz , to which we add the difference between the open interest for the front month of March (43) and the number of notices served upon today (43) 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 (52) x 100 oz  or ounces + {OI for the front month (43) – the number of  notices served upon today (43) x 100 oz} =  5,200 oz or  .1617 tonnes

 

we lost a huge 48 contracts or 4800 oz will not stand for delivery.

 

 

Total dealer inventory: 658,833.604 oz or 20.49 tonnes

Total gold inventory (dealer and customer) = 7,981,901.474  oz. (248.27) tonnes)

 

Several weeks ago we had total gold inventory of 303 tonnes, so during this short time period 55.0 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 27 2015:

Silver

Ounces

Withdrawals from Dealers Inventory nil oz
Withdrawals from Customer Inventory 60,775.500 oz (Scotia)
Deposits to the Dealer Inventory  nil
Deposits to the Customer Inventory  1,358,254.11 oz (Scotia, Brinks)
No of oz served (contracts) 68 contracts  (340,000 oz)
No of oz to be served (notices) 78 contracts (390,000)
Total monthly oz silver served (contracts) 2500 contracts (12,500,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month
Total accumulative withdrawal  of silver from the Customer inventory this month  7,477.613.1 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 2 customer deposits:

i) Into Scotia:   1,158,021.41 oz

ii) Into Brinks: 200,232.700 oz

total customer deposit: 1,358,254.110  oz

 

 

We had 1 customer withdrawals:

i) Out of Scotia:  60,775.500 oz

total withdrawals;  60,775.500 oz

 

 

we had 0 adjustments:

 

 

Total dealer inventory: 70.574 million oz

Total of all silver inventory (dealer and customer) 176.477 million oz

.

The total number of notices filed today is represented by 68 contracts for 340,000 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 (2500) x 5,000 oz    = 12,500,000 oz to which we add the difference between the open interest for the front month of March (146) and the number of notices served upon today (68) x 5000 oz equals the number of ounces standing.

 

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

 

 

2500 (notices served so far) + { OI for front month of March(146) -number of notices served upon today (68} x 5000 oz =  12,890,000 oz standing for the March contract month.

we gained 315,000 oz of additional 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 27/no changes in gold inventory at the GLD/Inventory at 737.24 tonnes

 

March 26 we had another huge withdrawal of 5.97 tonnes of gold.  This gold is heading straight to the vaults of Shanghai, China/GLD inventory 737.24 tonnes

March 25.2015 we had a withdrawal of 1.19 tonnes of gold from the GLD/Inventory at 743.21 tonnes

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 27/2015 /  we had no changes in  gold/Inventory at 737.24 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 : 737.24 tonnes.

 

 

end

 

 

And now for silver (SLV):

 

 

March 27. we had a huge withdrawal of 1.439 million oz leave the SLV/Inventory rests this weekend at 323.888 million oz

March 26.2015; no change in silver inventory/SLV inventory 325.323 million oz

March 25.2015:no change in silver inventory/SLV inventory 325.323 million oz

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 27/2015 we had a huge withdrawal of 1.439 million oz of silver leave the SLV/inventory rests at 323.888 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  8.8% percent to NAV in usa funds and Negative 8.8% to NAV for Cdn funds!!!!!!!

Percentage of fund in gold 60.3%

Percentage of fund in silver:39.3%

cash .4%

 

( March 27/2015)

 

Sprott gold fund finally rising in NAV

2. Sprott silver fund (PSLV): Premium to NAV rises to + 1.53%!!!!! NAV (March 26/2015)

3. Sprott gold fund (PHYS): premium to NAV stays -.45% to NAV(March 26  /2015)

Note: Sprott silver trust back  into positive territory at +1.53%.

Sprott physical gold trust is back into negative territory at -.45%

Central fund of Canada’s is still in jail.

 

 

end

 

At 3:30 pm est we receive the COT report which purportedly gives position levels on our major players.

 

Let us head over to the gold COT;:

 

 

 

Gold COT Report – Futures
Large Speculators Commercial Total
Long Short Spreading Long Short Long Short
168,234 113,953 52,190 178,058 230,983 398,482 397,126
Change from Prior Reporting Period
5,966 4,778 5,630 -2,406 -5,971 9,190 4,437
Traders
138 103 84 54 54 231 208
 
Small Speculators  
Long Short Open Interest  
35,285 36,641 433,767  
-5,161 -408 4,029  
non reportable positions Change from the previous reporting period
COT Gold Report – Positions as of Tuesday, March 24, 2015

(remember this report ends on Tues March 24.2015 and before the liquidation of comex contracts)

 

Our large specs:

Those large specs that have been long in gold added 6090 contracts to their long side.

Those large specs that have been short in gold surprisingly still thought it necessary to add to their short side to the tune of 1,633 contracts.

 

Commercials:

 

Those commercials that have been long in gold pitched 5856 contracts from their long side.

Those commercials that have been short in gold continue to cover to the tune of 6,304 contracts and thus the commercials went again net long for the week.

 

Our small specs;

WHAT!!!
Those small specs that have been long in gold pitched a gigantic 6040 contracts from their long side  ??? makes no sense

Those small specs that have been short in gold covered 1135 contracts from their short side.

 

 

And now for silver:

 

 

Silver COT Report: Futures
Large Speculators Commercial
Long Short Spreading Long Short
62,332 30,209 22,797 67,276 106,518
683 -7,029 -834 -4,926 4,106
Traders
91 48 45 42 49
Small Speculators Open Interest Total
Long Short 172,659 Long Short
20,254 13,135 152,405 159,524
-788 -2,108 -5,865 -5,077 -3,757
non reportable positions Positions as of: 152 128
Tuesday, March 24, 2015

 

Our large specs;

Those large specs that have been long in silver added 700 contracts to their long side and that was to be expected.

 

Those large specs that have been short in silver covered a monstrous 7109 contracts from their short side as they saw the light.

 

Our commercials

Those commercials that have been long in silver pitched a rather large 6974 contracts from their long side as silver  was rising.

 

Those commercials that have been short in silver added another 1940 contracts to their short side as silver was rising. Commercials go net short by 8914 contracts with silver rising.

 

Our small specs:

Those small specs that have been long in silver pitched a tiny 810 contracts from their long side

Those small specs that have been short in silver covered 1915 contracts from their short position.

 

end

 

 

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

 

Gold and silver trading early this morning

 

(courtesy Goldcore/Mark O’Byrne)

 

Risk of ‘World War’ between NATO and Russia on Ukraine as Yemen Bombed

– World sleep walking from ‘Cold War’ to ‘Hot War’ and new World War
– U.S. resolution to supply Ukraine with lethal weaponry passed
– Russia warns such moves would “explode the whole situation”
– Minsk agreement remains intact – little justification for escalation and ignoring EU allies
– US continues to act as only global superpower despite powerful Russia and China and new multi-polar world
– Hubris could lead to a new World War

goldcore_chart3_27-03-15
Geopolitical risk has escalated sharply this week after the Saudi bombing of Yemen and the U.S. House of Representatives voting overwhelmingly for the President to provide offensive weaponry to the Ukrainian army.

Both are likely to result in sharp escalation in tensions between NATO and Russia and see an intensification of war in Eastern Europe and the possibility of a regional war in the Middle East.

The move is concerning as European countries  who have a real interest in maintaining stability in Ukraine – Germany and France, who are Europe’s de facto leadership, and Russia – have already restored a degree of stability through the Minsk agreement. Germany and France pointedly excluded the U.S. from the process.

The resolution comes despite Russia’s Deputy Foreign Minister Sergey Ryabkov having previously warned in February that such a move would be a “major blow” to the Minsk agreements and would “explode the whole situation.”

The second Minsk Agreement – brokered between Germany, France, Russia and Ukraine last month – has remained largely intact. The head of the reasonably independent Organisation for Security and Co-operation in Europe said earlier this month the the ceasefire in Ukraine was holding. The OSCE confirmed, yesterday, that the withdrawal of heavy arms by both sides of the conflict was “ongoing” according to the Kyiv Post.

goldcore_chart4_27-03-15
Therefore, there would appear to be little justification for the U.S. to send high tech arms to Ukraine at this time especially on the pretext of restoring stability.

The passing of such a resolution highlights the insulated nature of U.S. politics. U.S. policy makers continue to labour under the delusion that the U.S. is still the only global superpower.

The reality is that the U.S. grows more isolated by the day. While the rising superpowers of the East work tirelessly to forge international ties through trade and development agreements, the U.S. continues to act unilaterally and forcefully – as it has since the collapse of the Soviet Union.

The Eastern block does not need war. Its economic influence grows daily – as demonstrated most recently by a whole swathe of European allies joining the new Chinese-led Asian Infrastructure Investment Bank despite pressure from the U.S. not to do so.

On the other hand, it would seem that many U.S. policy makers regard war as an opportunity to re-exert their declining influence.

The U.S. may or not remain a superpower. It has the population, landmass and resources. It has friendly neighbours and is practically impenetrable to attack. However imperial overstretch has bankrupted many an Empire.

It needs to come to terms with the fact that there is a new world order emerging – and not necessarily the one that was envisioned following the collapse of the Soviet Union.

goldcore_chart3_19-03-15

Until its politicians overcome their hubris the world will continue to  grow more and more unstable as it lurches closer to another World War. What the catalyst will be which triggers another World War is difficult to tell. There are many options to choose from.

Gold is a safe haven asset and an essential store of value that has protected people from war and economic uncertainty throughout history. It remains prudent for investors and savers to have an allocation to physical, allocated gold.

HOW TO STORE GOLD BULLION – 7 KEY MUST HAVES

MARKET UPDATE

– Gold looks set for second consecutive week of gains
Japan’s QE fails – Returns to zero inflation
‘Master of the universe’ central bank speeches today
– ETF and COMEX holdings fall as gold flows East
– JP Morgan to be part of new gold ‘fix’
– Greeks pull €8 billion from banks
– “No one knows how to solve the situation in Greece
– Bundesbank warns debt in euro zone has entered “danger zone”
– UK and Irish house prices are falling … again

Today’s AM fix was USD 1,198.00, EUR 1,106.70 and GBP 805.32 per ounce.
Yesterday’s AM fix was USD 1,209.40, EUR 1,097.26 and GBP 809.23per ounce.

Gold climbed 0.65 percent or $7.80 and closed at $1,203.40 an ounce yesterday, while silver rose 0.47 percent or $0.08 at $17.05 an ounce.

Gold in U.S. Dollars - 1 Week

In the end of day trading in Singapore, gold prices climbed 0.3 percent to $1,199.95 an ounce after reaching a high on Thursday of  $1,219.40. Gold surged  after news of the bombing in Yemen but prices were capped at the $1,220 level prior to a retracement of much of the initial gains.

Oil prices jumped over 6 percent at one stage and stock markets worldwide slumped yesterday after Saudi Arabia and allies carried out air strikes, which fueled worries internationally that global energy shipments may be put at risk.

The U.S. claims that Saudi Arabia kept some key details of its military action in Yemen from Washington until the last moment. Saudi Arabia’s more aggressive role is said to be in order to compensate for perceived U.S. disengagement.  U.S. President Obama’s Middle East policy increasingly relies on proxies rather than direct U.S. military involvement. He is training Syrian rebels to take on the government of President Bashar Assad and this week launched air strikes to back up Iraqi forces trying to retain the city of Tikrit.

All of this has the real potential for ‘blowback’ in the classic sense and risks leading to a hot war involving Russia.

Gold pulled back today as traders took profits after a seven-day rally in the yellow metal. In spite of the price dip gold is expected to rack up a weekly gain of around 1.5 percent. Gold looked overvalued after the 7 days of price gains and the final rally to over $1,219/oz. The last winning streak of 7 consecutive days in a row was in August 2012. Gold appeared overbought and was due a correction.

As tends to happen, gold is now testing previous resistance at $1,200/oz which may become support.

Gold may have a second week of gains today and if this happens we would be constructive on further price gains next week. Momentum is a powerful force in markets and the recent gains could see technical traders pile in the long side pushing prices higher next week.

Gold in GBP - 1 Week

However, a lower weekly cose today could lead to sharp selling on futures markets near the close today and at the open in Asia which could push prices lower.

The question is whether the recent rally is another flash in the pan for gold or the start of a more meaningful rally in prices. We believe it is too soon to tell. However, we are confident that gold is in the process of bottoming prior to further gains in the coming months.

Japan has returned to zero inflation after recently emerging from recession, once again highlighting how ineffective QE has been at creating a real, sustainable economic recovery.

It’s a day of ‘master of the universe,’ central bank speeches as both Bank of England governor Mark Carney and Fed chief Janet Yellen preach their ultra loose policies and certain market participants lap up the ‘Gospel according to Mark’ … and Janet. Central bank believers will be watching for indications of their position on rate rise timings and their crystal ball view on the economies of the UK and US respectively.

U.S. GDP estimates for the fourth quarter are forecast for an upward revision from 2.2 per cent to 2.4 per cent on the back of an increase in consumer spending.

Yesterday saw a huge withdrawal of 5.97 tonnes from the world’s largest gold ETF, New York-listed SPDR Gold Shares. The nearly 6 tonne fall to 737.24 tonnes on Thursday, its lowest level since January.This month’s outflow from the SPDR has totalled just over 34 tonnes so far, the largest of any month since December 2013.

goldcore_chart2_27-03-15
Over on the COMEX withdrawals continue. Earlier this year, the COMEX had 303 tonnes of total gold inventories. Yesterday the total inventory fell to 248.27 tonnes. This is a loss of 55 tonnes over that period and lately the withdrawals have been intensifying. Gold continues to flow from the West to East.

JPMorgan will be one of seven participants in the LBMA gold price according to ICE as reported by Eddie van der Walt in Bloomberg.

JPMorgan is to be among seven companies able to participate in LBMA Gold Price benchmark, ICE said today in statement published online. Other participating banks are Barclays, Goldman Sachs, HSBC, Bank of Nova Scotia, SocGen and UBS.

The new LBMA gold price has all the hallmarks of the old fix with just a few banks taking part in it and little participation from large players in the industry – miners, mints and refiners. Also it is noteworthy that there is no non Western banks taking part in the new gold fix. None from Africa, South America or Asia and none from China where there has been speculation of involvement in the new fix.

The crisis in Greece looks set to escalate in the coming days. Greek bank deposits plunged to an almost 10 year low in February as some €8 billion ($8.7 billion) were withdrawn from lenders, amid rising political uncertainty and worries over the country’s possible exit from the eurozone.

Total deposits fell to €152.4 billion euros in February, down from €160.3 billion in January, data from Greek central bank showed yesterday. This is the lowest level since June 2005.

Greece is hurrying to compile a list of economic overhauls that satisfies its creditors and secures desperately needed euros, as it runs increasingly low on cash and debt payments loom.

Officials in Greece’s new government, led by the leftist Syriza party, aim to submit a list of overhauls by Monday at the latest, officials have said. Greece hopes that eurozone finance ministers can meet and approve the country’s overhaul programme by next Wednesday.

Austria’s Finance Minister Hans-Joerg Schelling admitted today that “no one knows how to solve the situation in Greece”.

“We have a crisis of trust with Greece. Every day something is agreed upon and the next day it’s invalid,” Mr Schelling said speaking to the Klub der Wirtschaftspublizisten, a group of financial journalists in Vienna.

The head of Germany’s Bundesbank has warned debt in the euro zone had entered the “danger zone” and called for banks’ exposure to the debt of individual countries to be capped.

Gold in Euros - 1 Week

He is opposed to more emergency funding for Greece, accusing Athens of gambling away “a lot of trust”.

Speaking to the weekly Focus magazine Jens Weidmann said: “Until the autumn, an improvement in the economy had been discernible. But the new government has gambled away a lot of trust.”

“I am opposed to an increase in the emergency loans,” Mr Weidmann, who also sits on the European Central Bank’s decision-making governing council, said.

UK and Irish house prices are falling. The UK’s Nationwide house price index has revealed a seventh consecutive month of a slowdown in the UK property market. House price falls in central London have start to spread out across the capital to South West London.

In Ireland, property prices fell again in February. Residential property prices fell by 0.4 per cent nationally last month, with the decline in Dublin rising to 0.7 per cent, according to latest official figures. Results show more than 2 per cent has been wiped off the value of homes in the capital since the beginning of the year.

In London in late morning trading gold is at $1,201.73 or down 0.30 percent. Silver is at $17.24, up 0.23 percent and platinum is $1,142.70 down 0.72 percent.

 

 

end

 

Another monstrous gold demand coming from China:  53 tonnes.

Normally they slow down after their new year. I guess they threw that out the window. Please remember that this demand is Chinese citizen demand (equals Shanghai GE outflows) and does not include any sovereign purchases. So far this year without sovereign China, gold imports between China and India amount of 640 tonnes for a little less than 3 months.

 

Finally, Koos believes that gold inventories will be finally updated by China once they are included in the SDR calculations. The SDR calculation may also include gold as one of the currencies…

 

(courtesy Koos Jansen)

 

 

 

 

Posted on 27 Mar 2015 by

When Will China Disclose Its True Official Gold Reserves And How Much Is It?

Things are heating up in the Chinese gold market

First let’s go through the latest Shanghai Gold Exchange data and then we’ll continue to discuss the most recent developments regarding Chinese official gold reserves.

Friday the Shanghai Gold Exchange (SGE) released its trade report of week 11, 2015 (March 16 – 20). Withdrawals from the vaults, which equal Chinese wholesale demand, accounted for 53 tonnes, up 3.91 % from the prior week.

Screen Shot 2015-03-27 at 10.33.53 AM
Blue (本周交割量) is weekly gold withdrawn from the vaults in Kg, green (累计交割量) is the total YTD.

Year to date total withdrawals have reached a staggering 561 tonnes, up 7.3 % from 2014, up 33 % from 2013.When using the basic equation for the Chinese gold market to estimate import, we learn that up until March 20 China has net imported 412 tonnes. Add to this India has net imported about 230 tonnes over the same period, that’s 642 tonnes combined. I wonder how long the Chinese can keep up this pace of importing before physical supply from Western vaults runs dry.