April 8./Greece’s Tsipras meets Putin/ Greek government states that debt acquired during the 2012 bailout as odious/Iran sends war ships to the Gulf of Aden/Oil inventories rise from the DOE report/Cushing OK. at 90%/ Confusion with the reading of the beige book

Good evening Ladies and Gentlemen:

 

 

Here are the following closes for gold and silver today:

 

 

Gold:  $1203.10 down $7.50 (comex closing time)

Silver: $16.44 down 38 cents (comex closing time)

 

In the access market 5:15 pm

 

Gold $1202.50

Silver: $16.52

 

 

 

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:

 

At the gold comex today,  we surprisingly had a poor delivery day, registering 0 notices served for nil oz.  Silver comex surprised with  200 notices for 1,000,000 oz .

 

Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 244.16 tonnes for a loss of 59 tonnes over that period. Lately the removals  have been rising!

 

 

end

 

In silver, the open interest fell by a tiny 526 contracts, as Tuesday’s silver price was down by 27 cents. The total silver OI continues to remain extremely high with today’s reading at 169,700 contracts. The front April month has an OI of 385 contracts for a gain of 200 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 200 notices served upon for 1,000,000 oz.

 

 

In gold the collapse of OI stops. The total comex gold OI rests tonight at 390,571 for a gain of 621 contracts as  gold was down $8.00 on Tuesday. We had 0 notices served upon for nil oz.

 

 

Today, we had no changes in gold inventory at the GLD/  Gold Inventory rests at 733.06  tonnes

 

In silver, / the SLV/Inventory /we have no changes and thus the inventory tonight is 321.839 million oz

 

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

 

1. Today we had the open interest in silver fall by a tiny  526 contracts with the 27 cent fall in price on Tuesday.  The OI for gold rose by 621  contracts as the price of gold fell on Tuesday to the tune of $8.00.

(report Harvey/)

2.Greek’s Prime Minister Tsipras meets Russia’s Putin

(zero hedge)

3. Late in the session Greece states that much of its debt acquired during the 2012 bailout is odious and they will “write it off” and put the burden onto the previous administration

(zero hedge)

4. Iranian warships heading to the Gulf of Aden

(zero hedge)

5.Investigations are now ongoing with respect to banks in 4 countries:

Portugal, Spain, Greece and Italy. The banks use an asset such as  deferred tax assets as a tier one asset, upon which the sovereign then guarantees these dubious entries. The competition bureau of Europe is basically stating that this is giving them unfair advantage and they are investigating.

(Wolf Richter/WolfStreet)

6. Oil inventories rise again with today’s DOE report.  Cushing Oklahoma up to 90% of capacity.

(zero hedge)

7. Swiss government issues first Swiss bond with a 10 year span with a negative interest rates.

(zero hedge)

8. German factory orders decline despite the lower euro

(zero hedge)

9. Great commentaries tonight from Bill Holter and Koos Jansen

(Bill Holter and Koos Jansen)

10.  Beige book confusion this afternoon:

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 621 contracts from 389,950 up to 390,571 as gold was down by $8.00 on Tuesday (at the comex close).  We are now in the active delivery month of April and here the OI fell by 183 contracts down to 2,807. We had 2 contracts filed upon on Tuesday so we lost another 181 contracts or 18,100 oz will not stand for delivery in April. The next non active delivery month is May and here the OI fell by 183 contracts down to 461.  The next big active delivery contract month is June and here the OI rose by 412 contracts up to 264,589. June is the second biggest delivery month on the comex gold calendar. The estimated volume today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was poor at 46,992  (Where on earth are the high frequency boys?). The confirmed volume on Tuesday ( which includes the volume during regular business hours + access market sales the previous day) was poor at 91,471 contracts. Today we had 0 notices filed for nil oz.

And now for the wild silver comex results.  Silver OI fell by 526 contracts from 170,226 down to 169,700 as silver was down by 27 cents, with respect to Tuesday’s trading . We are now in the non active delivery month of April and here the OI rose to 385 for a gain of 200 contracts.  We had 0 notices filed on Monday so we  gained 200 silver contracts or an additional 1,000,000 ounces will stand for delivery in April. The next big active delivery month is May and here the OI fell by 2,682 contracts down to 91,846. The estimated volume today was poor at 20,022 contracts  (just comex sales during regular business hours. The confirmed volume yesterday  (regular plus access market) came in at 39,301 contracts which is good in volume. We had 209 notices filed for 200,000 oz today.  Today somebody was in urgent need of some silver.

 

 

April initial standings

April 8.2015

Gold

Ounces

Withdrawals from Dealers Inventory in oz  nil
Withdrawals from Customer Inventory in oz 192.90 oz (6 kilobars)HSBC,Manfra
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)   2807 contracts(280,700) oz
Total monthly oz gold served (contracts) so far this month 676 contracts(67,600 oz)
Total accumulative withdrawals  of gold from the Dealers inventory this month   oz

Total accumulative withdrawal of gold from the Customer inventory this month

  163,772.1 oz

Today, we had 0 dealer transaction

total Dealer withdrawals: nil oz

 

 

we had 0 dealer deposits

 

total dealer deposit: nil oz

 

we had 2 customer withdrawals

i) Out of HSBC:  128.600 oz (4 kilobars)

ii) Out of Manfra:  64.30 oz (2 kilobars)

total customer withdrawal: 192.90 oz (6 kilobars)

 

we had 0 customer deposit:

 

total customer deposit: nil oz

 

We had 1 adjustments

i Out of the Scotia vault:

We had 15,282.836 withdrawn from the dealer account at Scotia to the customer account at Scotia.

 

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 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 (676) x 100 oz  or  67,600 oz , to which we add the difference between the open interest for the front month of April (2807) 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 April contract month:

No of notices served so far (676) x 100 oz  or ounces + {OI for the front month (2807) – the number of  notices served upon today (0) x 100 oz which equals 348,300 oz or 10.83 tonnes of gold.

 

we lost 181 contracts or 18,100 oz of gold that will not stand for delivery in April

 

 

 

 

Total dealer inventory: 631,988.064 or 19.65 tonnes

Total gold inventory (dealer and customer) = 7,849,613.194  oz. (244.155) tonnes)

 

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

 

April silver initial standings

April 8 2015:

Silver

Ounces

Withdrawals from Dealers Inventory 486,241.321 oz (Scotia)
Withdrawals from Customer Inventory  1,422,905.46 oz (Delaware,Brinks,CNT,Scotia)
Deposits to the Dealer Inventory  nil
Deposits to the Customer Inventory 1,460,252.961 oz (JPM,CNT)
No of oz served (contracts) 200 contracts  (1,000,000 oz)
No of oz to be served (notices) 185 contracts(925,000 oz)
Total monthly oz silver served (contracts) 201 contracts (1,005,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month486,241.321 oz
Total accumulative withdrawal  of silver from the Customer inventory this month  2,845,810.8 oz

Today, we had 0 deposits into the dealer account:

total dealer deposit: nil   oz

 

we had 1 dealer withdrawal:

i) Out of the Scotia vault: 486,241.321 oz

total dealer withdrawal: 486,241.321 oz

 

We had 2 customer deposits:

i) Into CNT:  350,015.110 oz

ii) Into JPMorgan: 1,110,237.851 oz

total customer deposits:  1,460,252.961  oz

 

We had 4 customer withdrawals:

 

i) Out of Delaware:  982.80 oz

ii) Out of Brinks:  25,002.32 oz

iii) Out of CNT: 1,336,610.070 oz

iv) Out of Scotia: 60,305.27

 

total withdrawals;  1,422,905.46 oz

 

we had 0 adjustments:

 

 

 

Total dealer inventory: 62.705 million oz

Total of all silver inventory (dealer and customer) 176.238 million oz

.

The total number of notices filed today is represented by 200 contracts for 1,000,000 oz. To calculate the number of silver ounces that will stand for delivery in April, we take the total number of notices filed for the month so far at (201) x 5,000 oz    = 1,005,000 oz to which we add the difference between the open interest for the front month of April (385) and the number of notices served upon today (200) x 5000 oz equals the number of ounces standing.

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

201 (notices served so far) + { OI for front month of April(385) -number of notices served upon today (200} x 5000 oz =  1,930,000 oz standing for the April contract month.

we gained another 200 contracts or an additional 1,000,000 oz will stand for delivery in this April 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:

April 8.2015:no changes in the GLD/Inventory 733.06 tonnes

 

April 7. we had another withdrawal of 4.18 tonnes of gold at the GLD/Inventory rests at 733.06 tonnes

April 6. no changes in gold inventory at the GLD/Inventory at 737.24 tonnes

April 2/no changes in gold inventory at the GLD/Inventory at 737.24 tonnes

April 1/2015/ no changes in gold inventory at the GLD/Inventory at 737.24 tonnes

march 31.2015/ no changes in gold inventory at the GLD/Inventory at 737.24 tonnes

March 30/no changes in gold inventory at the GLD/Inventory at 737.24 tonnes.

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

 

April 8/2015 /  we had no changes in gold inventory at the GLD/Inventory at 733.06 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 : 733.06 tonnes.

 

end

 

And now for silver (SLV):

April 8.2015: no changes in inventory at the SLV/Inventory rests tonight at 321.839 million oz

April 7.2015: no changes in inventory at the SLV/Inventory rests tonight at 321.839 million oz

April 6. we had a small withdrawal of 136,000 oz/inventory tonight rests at 321.839 million oz

April 2/2015: no changes in inventory/SLV inventory rests this weekend at 321.975 million oz

April 1.2015: we had a huge withdrawal of 1.913 million oz of silver from the SLV vaults/Inventory 321.975 million oz

March 31.2015: no changes in inventory at the SLV/Inventory at 323.88 million oz

March 30.2015: no changes in inventory at the SLV/inventory at 323.888 million oz.

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

 

 

April 8/2015 we had no changes  in inventory at the SLV/ inventory rests at 321.839 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 8.3% to NAV for Cdn funds!!!!!!!

Percentage of fund in gold 61.0%

Percentage of fund in silver:38.6%

cash .4%

( April 8/2015)

Sprott gold fund finally rising in NAV

2. Sprott silver fund (PSLV): Premium to NAV falls to + 1.09%!!!!! NAV (April 8/2015)

3. Sprott gold fund (PHYS): premium to NAV rises -.24% to NAV(April 8/2015

Note: Sprott silver trust back  into positive territory at +1.09%.

Sprott physical gold trust is back into negative territory at -.24%

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 Goldcore/Mark O’Byrne)

U.S. Hegemony and Dollar Threatened By New Chinese Bank

– Chinese Success in Attracting Major Western Countries to New Bank Marks Beginning of New Era
– Diverse members include UK, Israel, Germany, Australia and Russia and Iran
– Demonstrates the degree to which U.S. global influence is declining
– U.S. needs to reform its approach to IMF and World Bank system if it to successfully reassert its influence
– U.S. “Failure of Strategy and Tactics was a Long Time Coming”
Beijing’s challenge to post-World War II financial and monetary order
– New bank shows continuing decline of U.S. hegemony and dollar as reserve currency

China's President Xi Jinping (centre) poses for photos with guests at the Asian Infrastructure Investment Bank (AIIB) launch ceremony at the Great Hall of the People in Beijing October 24, 2014. (Reuters / Takaki Yajima)

The success of China in attracting countries traditionally within Washington’s sphere of influence to join its Asian Infrastructure Investment Bank (AIIB), such as the UK, Israel, Australia and Germany, marks another milestone toward a new multi polar world and a new era in international politics and economics.

The AIIB is seen as a potential rival to established lenders the World Bank, IMF and Asian Investment Bank, which are dominated by the United States.

The era of infrastructure investment and multilateral banks and financial institutions controlled, in large part, by Washington – often as an aggressive strategic policy tool – has come to an end. The AIIB which will be controlled by China will compete with the World Bank and the IMF for infrastructure projects and potentially could become a global lender of last resort to sovereign nations such as Greece.

It is almost certain that the AIIB will begin lending in yuan – another phase in the inevitable demise of the dollar as sole reserve currency and the fulfilment of Chinese ambition to make the yuan an internationally traded currency.

Even the Chinese themselves were reportedly “surprised”at their success in attracting key U.S. allies – particularly Britain – to join the AIIB. The U.S. had exerted pressure on its allies to eschew the new Asian bank. However, when Washington’s closest ally – Britain – broke ranks and announced its application in March it led to a slew of western countries following suit.

goldcore_chart2_8-04-15
It is interesting to note that the World Bank’s US-appointed President has vowed to find “innovative” ways to work with a new Chinese-led global bank, welcoming it as a “major new player” in the world. The positive overtures by Jim Yong Kim comes ahead of next week’s World Bank and International Monetary Fund spring meetings in Washington. It also marks a split with the administration of U.S. President Barack Obama which put him forward to head the World Bank in 2012.

According to the Financial Times, China’s success stems from softening of its diplomacy early last year following tensions with Vietnam with the sinking of a Vietnamese fishing vessel. By the time the APEC conference came around China was negotiating agreements and deals with its neighbours, including Japan.

That Britain, Israel, Australia and Germany have turned a deaf ear to Washington on an issue that is of such vital strategic importance to the U.S. demonstrates the shocking degree to which the influence of the U.S. has declined in the past fifteen years.

While Canada and Japan remain on the sidelines for now – many believe that it is just a matter of time before they too join the new bank.

Former U.S. Treasury Secretary Lawrence Summers  wrote this week that the “failure of strategy and tactics was a long time coming, and it should lead to a comprehensive review of the US approach to global economics.”

Summers is a U.S. and international political insider and was Chief Economist of the World Bank from 1991 to 1993. Summers worked as the Director of the White House United States National Economic Council for President Obama from January 2009 until November 2010, where he emerged as a key economic decision-maker in the Obama administration’s response to the financial crisis.

He was widely tipped as the potential successor to Ben Bernanke as the Chairman of the Federal Reserve, though after criticism from the left, Obama nominated  Janet Yellen for the position.

If the U.S. is to arrest the decline in its influence through the World Bank, Summers identifies three areas that Washington needs to address . Firstly, in its approach to the wider world it must rebuild a bipartisan foundation and “be free from gross hypocrisy and be restrained in the pursuit of self interest.”

The U.S. needs to apply the same standards to its “state regulators, independent agencies and far-reaching judicial actions” that it demands of other countries. He advises against using the dollar as an “aggressive” geopolitical tool such as the attempts to suffocate the Iranian economy by cutting Iran out of the banking system.

“We cannot expect to maintain the dollar’s primary role in the international system if we are too aggressive about limiting its use in pursuit of particular security objectives.”

Ultimately the new global institution will help China knock the U.S. off its pedestal as the world’s pre-eminent economic and military superpower and will likely lead to a further erosion in trust of the debased dollar as the global reserve currency.

The new emerging order should lead to greater geopolitical stability in the long term. The rising economic power of China seeks to work together financially and economically with both NATO members and indeed nations currently at odds with American foreign policy such as Russia and Iran.

goldcore_chart3_8-04-15
Iran has been accepted as a founding member of the AIIB. Interestingly, China said that the decision was made by existing members, including China, Britain, France, India and Italy. The United Arab Emirates (UAE) has also been accepted. China and Iran have close diplomatic, economic, trade and energy ties.

One would hope that this should limit the potential for large-scale conflict involving Israel, the U.S. and certain NATO members and the current black sheep of the international family – Iran and Russia.

In the shorter term however it may lead to greater geopolitical tension as the neoconservative influence in Washington continues to labour under the delusion that the U.S. is still the indispensable nation chosen by history to rule the world unilaterally. Perversely, the decline in U.S. hegemony especially in the financial and economic realms may embolden the neo-conservative militarists who appear desperate to maintain U.S. hegemony … at all costs.

The clear shift in economic power from West to East will put further pressure on the dollar. The recent strong bounce in the dollar will likely be seen as a short term cyclical bull market within a secular long term bear market.

The coming dollar crisis will impact the currency international monetary system and likely lead to an  international monetary crisis. Global property bubbles, leveraged finance and high risk securitization were the elephants in the room in the years prior to the start of global financial and economic crisis in 2007. Many warned but were ignored.

There are similar elephants in the room today which are also being ignored. There is the growing risk of an international monetary crisis due to the real risks posed to the global reserve currency the dollar and to the not so ‘single currency’, the euro.

Gold will continue to act as a safe haven asset and protect people in the event of an international monetary crisis.

Click here in order to read GoldCore Insight –
Currency Wars: Bye Bye Petrodollar – Buy, Buy Gold

MARKET UPDATE

Today’s AM LBMA Gold Price was USD 1,211.10, EUR 1,113.66 and GBP 811.40 per ounce.

Yesterday’s AM LBMA Gold Price was USD 1,208.50 , EUR 1,113.82 and GBP 813.63 per ounce.
Gold fell 0.44 percent or $5.40 and closed at $1,210.30 an ounce yesterday, while silver slipped 0.71 percent or $0.12 closing at $16.88 an ounce.