May 12 c/Greece borrows from the IMF holding account to pay the IMF back/Tensions in the middle east rise with respect to Iran/Bond market rescued again by central banks but yields still rise appreciably/

Good evening Ladies and Gentlemen:

 

 

Here are the following closes for gold and silver today:

Gold:  $1192.60 up $9.40 (comex closing time)

Silver $16.51 up 21 cents (comex closing time)

 

In the access market 5:15 pm

Gold $1192.50

Silver: $16.51

 

 

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 had a poor delivery day, registering 1 notice serviced for 100 oz.  Silver comex filed with 166 notices for 830,000 oz

 

Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 242.56 tonnes for a loss of 60 tonnes over that period. Looks to me like the comex is bleeding profusely!!

 

In silver, the open interest rose by 1072 contracts despite the fact that Monday’s silver price was down by 14 cents  The total silver OI continues to remain extremely high with today’s reading at 177,096 contracts maintaining itself near multi-year highs 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.

 

In silver we had 166 notices served upon for 830,000 oz.

 

In gold,  the total comex gold OI rests tonight at 401,480 for a loss of 6,952 contracts as gold was down by $5.90 yesterday. We had 1 notice served upon for 100 oz.

 

Today, we had no changes in  gold Inventory, at the GLD.  It rests tonight at 728.32  tonnes. The appetite for gold coming from China is depleting not only gold from the LBMA and GLD but also the comex is bleeding gold.

 

In silver, /   no changes with respect to silver inventory at the SLV/ and thus the inventory tonight remains at 322.662 million oz

 

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

 

1. Today we had the open interest in silver rise by 1072  contracts as  silver was down in price yesterday by 14 cents.  The OI for gold fell by 6952 contracts down to 401,480 contracts as the price of gold was down by $5.90 yesterday. GLD had no change and SLV, no changes  with respect to the inventory levels.

(report Harvey)

2,Today we had 1 major commentaries on Greece today:

(zero hedge/ UKTelegraph)

 

3.Tensions rise again with respect to Iran and the USA 

(zero hedge)

4 Ted Butler on his take as to what is going on in the silver market.

(Ted Butler)

5. Goldcore discusses the huge rise in art prices

/(Goldcore)

6.  The USA may use military in its confrontation with China in the South China sea

(zero hedge)

7. Koos Jansen on China’s  silk road project and it includes gold

(Koos Jansen)

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 6952 contracts from  408,432 down to 401,480 as  gold was down by $5.90 yesterday (at the comex close).  We are in our next non active delivery month of May and here the OI fell by 7 contracts falling to 149. We had 0 notices filed upon yesterday.  Thus we lost 7 gold contracts or an additional 700 ounces will not stand for gold in May. The next big active delivery contract month is June and here the OI fell by 13,628 contracts down to 208,032. 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 92,862. The confirmed volume yesterday ( which includes the volume during regular business hours + access market sales the previous day) was fair at 164,643 contracts. Today we had 1 notices filed for 100 oz.

 

And now for the wild silver comex results.  Silver OI rose by 1072 contracts from 176,026 up to 177,096 despite the fact that the price of silver was down  in price by 14 cents, with respect to yesterday’s trading. We are into the active delivery month of May. In our May delivery month the OI fell by 141 contracts down to 574. We had 8 contracts filed upon with respect yesterday’s trading.  So we lost 133 contracts or an additional  655,000 oz will not stand for delivery in this May delivery month. The estimated volume today was extremely poor at 18,168 contracts (just comex sales during regular business hours. The confirmed volume on yesterday (regular plus access market) came in at 36,828 contracts which is fair in volume. We had 166 notices filed for 830,000 oz today.

 

May initial standings

May 12.2015

Gold

Ounces

Withdrawals from Dealers Inventory in oz    nil
Withdrawals from Customer Inventory in oz  192.90 oz Manfra
Deposits to the Dealer Inventory in oz nil
Deposits to the Customer Inventory, in oz 80,802.256 oz (Scotia, HSBC)
No of oz served (contracts) today 0 contracts (nil oz)
No of oz to be served (notices)  148 contracts(14,800) oz
Total monthly oz gold served (contracts) so far this month 2 contracts(100 oz)
Total accumulative withdrawals  of gold from the Dealers inventory this month 164,151.8 oz
Total accumulative withdrawal of gold from the Customer inventory this month  36,369.5 oz

 

Today, we had 0 dealer transactions

 

 

total Dealer withdrawals: nil oz

 

we had 0 dealer deposit

total dealer deposit: nil oz
we had 1 customer withdrawal

 

i) Out of Manfra; 196.90 oz

 

 

total customer withdrawal: 196.90  oz

 

We had 2 customer deposits:

i) Into HSBC: 32,110.62  oz

ii) Into Scotia: 48,691.636 oz

total customer deposit: 80,802.256  oz

 

We had 1 minor  adjustment:

i) out of Delaware:

503.92 oz was adjusted out of the customer and this landed  back into the dealer account at Delaware

 

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 1 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 May contract month, we take the total number of notices filed so far for the month (2) x 100 oz  or 100 oz , to which we add the difference between the open interest for the front month of May (149) and the number of notices served upon today (1) x 100 oz equals the number of ounces standing.

 

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

 

No of notices served so far (2) x 100 oz  or ounces + {OI for the front month (149) – the number of  notices served upon today (1) x 100 oz which equals 15,000 oz standing so far in this month of May. (.466 tonnes of gold)

we lost 700 oz that will not stand for delivery

 

Total dealer inventory: 372,738.572 or 11.59 tonnes

Total gold inventory (dealer and customer) = 7,798,996.04. (242.56) tonnes)

Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 242.56 tonnes for a loss of 63 tonnes over that period. Lately the removals  have been rising!

 

end

 

 

And now for silver

 

May silver initial standings

May 12 2015:

Silver

Ounces

Withdrawals from Dealers Inventory nil
Withdrawals from Customer Inventory 76,176.67 oz (Brinks, Scotia)
Deposits to the Dealer Inventory  nil
Deposits to the Customer Inventory  1,489,490.226 (CNT, Scotia,Delaware,JPM)
No of oz served (contracts) 166 contracts  (8300,000 oz)
No of oz to be served (notices) 408 contracts (2,040,000 oz)
Total monthly oz silver served (contracts) 2496 contracts (12,480,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month  126,359.680 oz
Total accumulative withdrawal  of silver from the Customer inventory this month 2,853,067.3  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 4 customer deposits:

i) Out of CNT 1001.000 oz  ???

ii) Out of Scotia:  769,007.265 oz

iii) Out of JPM:  600,814.01 oz

iv) Out of Delaware:  118,667.95 oz

total customer deposits: 1,489,490.226  oz

 

We had 2 customer withdrawals:

 

 

i) Out of Scotia:  50,943.210 oz

ii) Out of Brinks:  25,233.46 oz

 

total withdrawals;  76,176.67 oz

 

we had 1 adjustment

i) Out of CNT:  434,855.95 oz was adjusted out of the customer and this landed into the dealer account at CNT

 

Total dealer inventory: 60.117 million oz

Total of all silver inventory (dealer and customer) 177.723 million oz

So we have both gold and silver being drained from the dealer (registered) side at the comex.

.

The total number of notices filed today is represented by 166 contracts for 830,000 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 (2496) x 5,000 oz  = 12,480,000 oz to which we add the difference between the open interest for the front month of April (574) and the number of notices served upon today (166) x 5000 oz equals the number of ounces standing.

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

2496 (notices served so far) + { OI for front month of April (574) -number of notices served upon today (166} x 5000 oz = 14,520,000 oz of silver standing for the May contract month.

we lost 133 contracts or an additional 655,000 oz will not stand for delivery.

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:

May 12/no change in inventory at the GLD/inventory rests at 728.32 tonnes

May 11/ no changes at the GLD/Inventory rests at 728.32 tonnes

May 8/ they should call in the Serious Fraud squad as the owners of the GLD just saw 13.43 tonnes of gold leave its vaults heading for China:

Inventory tonight:  728.32 tonnes

May 7. no change in gold inventory at the GLD/741.75 tonnes

May 6/no change in gold inventory at the GLD/741.75 tonnes

may 5/no change in gold inventory at the GLD/741.75 tonnes

may 4/no change in gold inventory at the GLD./741.75 tonnes

May 1/ we had a huge addition of 2.69 tonnes of gold into the GLD/Inventory rests tonight at 741.75 tonnes

April 30/ no change in gold inventory/739.06 tonnes of gold at the GLD

April 29/no change in gold inventory/739.06 tonnes of gold at the GLD

April 28/ no change in inventory/739.06 tonnes of gold at the GLD

April 27. we lost 3.29 tonnes of gold inventory at the GLD/Inventory rests tonight at 739.06 tonnes

April 24. no changes in gold inventory at the GLD/Inventory at 742.35 tonnes

April 23. no changes in gold inventory at the GLD/inventory at 742.35 tonnes

April 22. no changes in gold inventory at the GLD/inventory at 742.35 tonnes

April 21.2015: a huge addition of 3.26 tonnes of gold inventory at the GLD/Inventory rests at 742.35 tonnes

April 20.2015: no change in gold inventory at the GLD/Inventory rests at 739.06 tonnes

April 17.2015/ we had a huge addition of 3.01 tonnes of gold inventory at the GLD.  It looks like the raids at the GLD have stopped.

April 16.2015: no change in inventory at the GLD/total inventory at 736.08 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).

 

May 12 GLD : 728.32  tonnes.

 

end

 

And now for silver (SLV)

May 12/no changes at the SLV/Inventory rests at 322.662 million oz

May 11/no changes at the SLV/Inventory rest at 322.662 million oz

May 8/ today we lost a huge 2.87 million oz of silver from the SLV/Inventory 322.662

 

May 7/no change in silver inventory/325.53 million oz

May 6/we had a huge withdrawal of 2.143 million oz of silver from the SLV/325.53 million oz

May 5/no change in silver inventory at the SLV/327.673 million oz

May 4/ no change in silver inventory at the SLV/327.673 million oz

May 1/no change in silver inventory at the SLV/327.673 million oz

April 30/no change in silver inventory at the SLV/327.673 million oz

April 29/ we lost 2.963 million oz of silver inventory from the SLV/inventory tonight 327.673 million oz

April 28/another huge addition of 1.434 million oz to the SLV/Inventory stands tonight at 330.636 million oz

April 27.we had a huge addition of 2.976 million oz to the SLV/Inventory stands tonight at 329.202 million oz

April 24/ we had a small withdrawal of 88,000 oz of silver at the SLV/326.226 million oz

April 23.no changes in silver inventory at the SLV/326.334 million oz of inventory

April 22/no changes in silver inventory at the SLV/326.334 million oz of inventory

April 21.2015/we had another huge addition of 1.434 million oz of silver into the SLV

April 20/ no change in silver inventory tonight/SLV 324.900 million oz.

 

 

May 12/2015  no changes at the SLV / inventory rests at 322.662 million oz

 

end

 

And now for our premiums to NAV for the funds I follow:

Central fund of Canada data not available today/

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 7.0% percent to NAV in usa funds and Negative 6.7% to NAV for Cdn funds!!!!!!!

Percentage of fund in gold 61.2%

Percentage of fund in silver:38.4%

cash .4%

( May 12/2015)

2. Sprott silver fund (PSLV): Premium to NAV rises to-0.51%!!!!! NAV (May 12/2015)

3. Sprott gold fund (PHYS): premium to NAV falls to -.39% to NAV(May 12/2015

Note: Sprott silver trust back  into negative territory at -0.51%.

Sprott physical gold trust is back into negative territory at -.39%

Central fund of Canada’s is still in jail.

 

end

 

Early morning trading from Asia and Europe last night:

 

Gold and silver trading from Europe overnight/and important physical

stories(courtesy Mark O’Byrne/Goldcore)

 

Hyperinflation in Art Investment Market as Picasso Sells for $179 Million

 

– Picasso’s “Les Femme d’Alger” sells for a record $179 million
– Most expensive painting ever sold at auction
– Hyperinflation in art market as painting appreciated nearly $150 million in 20 years …
– Reports in February of the private sale of Gauguin’s “When Will You Marry” for $300 million
– Art price volumes doubled since 2009
– As currencies debase super rich seek out stores of value
– Gold remains accessible store of value for middle classes

Pablo Picasso’s “Les Femme d’ Alger”

Pablo Picasso’s “Les Femme d’ Alger” sold at Christie’s in New York last night for $179 million – the highest price ever paid at auction for a painting.

It smashed the record previously held by Francis Bacon’s “Three Studies of Lucian Freud” which sold for $142 million in 2013.

The painting appreciated nearly $150 million in less than 20 years. Hyperinflation appears to be taking hold in the art investment market.

Painted in 1955, Les Femmes d’ Alger is based on Delacroix’s 1843 painting “Femmes d’Alger dans leur Appartement” a sensuous depiction of how the European imagined a harem scene with luxuriantly dressed woman smoking hashish from a hookah. Picasso’s depiction is more overtly erotic exploring the strange psychology of sexual fascination with the female form.

The record breaking price for the piece reflects the ever expanding bubble in high end art. In February, Bloomberg reported that Gauguin’s “When Will You Marry” was rumoured to have been sold to the Qatar Museum Authority for almost $300 million – one of the highest prices ever paid for a painting.

Keanu Reeves and “When Will You Marry” Painting

Indeed, the sale of high end art has more than doubled in price volume since 2009. Back then art sales totalled $6.3 billion. In the intervening period, with QE cash sloshing around the markets, further enriching the world’s super wealthy, prices for luxury art have surged and last year the total market was priced at $16.3 billion.

This surge in price has been mirrored by the rise in prices for luxury property in London and other major cities as the super-rich seek stores of value for their cash.

The trend of rising prices in luxury art is succinctly described by the Washington Post:

“The steady inflation of the art market can be summed up with a quick glance at the list of most expensive auctioned works. At number five is a Picasso sold for $106.5 million in 2010. Number four is Edvard Munch’s iconic “The Scream” sold for $120 million in 2012. A year later, Francis Bacon’s “Three Studies of Lucian Freud” reached $142.4 million. And then there were the two heavy hitters from Monday’s auction: Picasso’s “Women of Algiers (Version O)” for $179.4 million and Alberto Giacometti’s “Man Pointing” for $141.3 million, which is the most expensive sculpture ever sold at auction.”

There is risk for art “investors” to continue to shell out enormous sums of cash in a market that appears increasingly frothy.

However, as with luxury property, we suspect that these well informed individuals are seeking out art as a store of value because ultimately, even at highly inflated prices, it may turn out to be less risky than holding cash in a bank that can be devalued and is may be subject to deposit bail-ins.

William Banzai “Women of Cashiers”

The art market looks very toppy. It is subject to sentiment like all markets today and this could lead to sharp price falls should jitters begin to creep in regarding very high valuations. As a diversification, art has some merit as it is not correlated with financial assets, but only as a small part of an overall portfolio.

For those of us who cannot afford a Picasso – as the great heritage of western ideas and art continue to be shuttered away into private Xanadus – gold remains an accessible and ideal store of value.

Indeed history shows that it is one of the, if not the, ultimate store of value.

Must read guide and research on bail-ins here:
Protecting Your Savings In The Coming Bail-In Era


MARKET UPDATE

Today’s AM LBMA Gold Price was USD 1,184.45, EUR 1,051.07 and GBP 755.49 per ounce.
Yesterday’s AM LBMA Gold Price was USD 1,184.75, EUR 1,062.20 and GBP 768.37 per ounce.

Gold in USD - 1 Day

Gold fell $5.10 or 0.43 percent yesterday to $1,183.40 an ounce, and silver slipped $0.20 or 1.21 percent to $16.28 an ounce. Gold in Singapore was at $1,182.83 an ounce near the end of day trading in Asia prior to flat lining in Europe before a sharp spike in gold soon after the LBMA gold price was fixed.

Significant volatility and sharp price moves in the global bond markets herald coming volatility. This may be making investors nervous. The bond market volatility seen in recent days may at last be benefitting gold.

Government bonds sold off again today leading to sharp falls in stock markets. Japanese government bonds fell sharply overnight after the weakest auction since the Lehman collapse saw yields rise sharply from nearly zero percent levels.

Gold fell with equities yesterday and the small dip may have been the result of less safe haven bids as Greece made a $837 million payment to the IMF a day early.

Some form of Grexit remains on the cards as Greek Finance Minister Yanis Varoufakis said the liquidity situation was “terribly urgent” and a deal to release further funds was needed in the next couple of weeks.

The SPDR Gold Trust, the world’s largest gold-backed ETF saw its largest decline this year on Friday, a signal of bearish sentiment.

June 16-17 is the U.S. Federal Reserve’s next policy meeting. San Francisco Federal Reserve President John Williams made comments that the Fed is unlikely to provide any warning ahead of an increase to interest rates, claiming that the Fed needs to “get out of this business of telegraphing decisions in advance.”

Although the problem with Fed communications is not the timing but rather the frequently contradictory nature of such communications and the fact that they frequently fail to do what they say they will do – having promised to increase interest rates since 2009.

In European late morning trading precious metals are higher in dollar terms. Gold is up 1 percent at $1,195.69 an ounce. Silver is up 1.03 percent at $16.46 and platinum is up 0.93 percent at $1,136.90.

Breaking News and Research Here

end

 

Ted Butler’s take on what is going on in silver behind the scenes:

(courtesy Ted Butler)

 

The Biggest Silver Haul in History

Theodore Butler

|

May 11, 2015 – 2:19pm

As I’ve mention previously JPMorgan is still stopping (taking) silver deliveries in its own house account. In the May COMEX futures contract, they’ve taken over three million ounces so far. It still looks like JPM will take another million ounces or so before the delivery period is over. This is in addition to the 7.5 million ounces the bank took in the March delivery period.

Another standout development in recent weeks has been the withdrawal of 5 million ounces from the big silver ETF, SLV. This large withdrawal would appear to be a big buyer converting shares into metal for the purpose of acquiring physical silver and avoiding the 5% ownership reporting requirement. I believe this is the work of JPMorgan and represents the mechanism by which the bank has amassed the bulk of the 350 million ounces I claim it has acquired over the past four years.

The U.S. Mint sold 783,500 Silver Eagles in just two days after going 4 or 5 days with no sales. Then the Mint reported a scant 50,000 additional coins sold over the next two days. This is precisely the erratic level of sales that indicates the presence of a big buyer. I can’t certify that the big buyer is JPMorgan, but everything I look at points to them.

The Canadian Royal Mint reported sales last week its 2014 sales of Silver Maple Leafs and the same pattern that has characterized the U.S. Mint was clearly revealed. Sales of silver coins hit a new record, with more than 29 million Silver Maple Leafs sold. The big buyer of Silver Eagles has also been accumulating Silver Maple Leafs. Over the past four years the big buyer has bought, at least 30 million ounces of Canadian Maple Leafs and 75 million U.S. Silver Eagles totaling more than 100 million ounces of silver in bullion coin sales alone. I’m convinced JPMorgan is the big buyer.

How in the world can JPMorgan eventually sell hundreds of millions of ounces of silver without flooding the market and causing prices to crash? This is what JPMorgan does as a regular part of their business – accumulate and then liquidate massive market positions before most people get out of bed every morning. It is second nature to them. In my opinion, this silver will be sold before most people realize they bought it in the first place. Buying 350 million ounces of silver was the hard part, selling it will be a snap.

The big buyer is exploiting a loophole in the law that requires the Mint to produce to whatever the demand might be. So JPMorgan artificially depresses prices via short sales on the COMEX and then requests that the US Mint sell it all the Silver Eagles it can produce. It doesn’t care if it is paying $2 over the spot price, JPM wants all the silver it can get its hands on. But what about selling the coins I claim JPMorgan has acquired? The coins will not be sold as coins, but melted into 1,000 ounces bars. In fact, some of the 100 million+ ounces of coins may have already been melted and cast into good delivery bars. Considering that the coins are the same purity as 1,000 ounces bars, melting is a simple and a low cost process.

At the end of 2007, when the price of silver was less than $15, but close to the highest price it had been in 25 years, Bear Stearns assumed the role of the biggest silver and gold short when these positions were transferred from AIG. From the end of 2007 to March 2008, the price of silver rose to $21 and gold rose from $800 to $1,000. Based upon the size of the short positions that Bear Stearns held the investment bank had to come up with more than $2 billion in margin money. Bear was unable to do so and the U.S. Government arranged for JPMorgan to take over Bear Stearns and its massive COMEX short positions in silver and gold.

With the cooperation from the federal government, JPMorgan was able to turn silver (and gold) prices sharply lower into year end 2008 and made well over one billion dollars as a result of falling metals prices. Thus, they were able to greatly reduce the short positions inherited from Bear Stearns. JPMorgan then repeated the process of selling short great additional quantities of COMEX short contracts on metals price rallies buying back those short positions when prices fell. JPMorgan’s profits from the short side of COMEX silver and gold, amounted to hundreds of millions and even billions.

This process was repeated by JPMorgan in COMEX silver until the fall of 2010, when silver began to rise in earnest due to a developing physical shortage that drove prices to nearly $50 by the end of April 2011. On the run up, it must have become clear to JPMorgan that a physical silver shortage was developing and for the bank to try to fight it with additional paper short sales would be futile. Therefore, two decisions were made; one, it would be necessary to create such a large break in silver prices so as to crush the momentum of the price rise and two, the developing physical shortage proved that silver was destined to blow sky high in time and JPMorgan should position itself accordingly. The big break in prices started on May 1, 2011 and broke the back of the silver price. Less visible is the evidence that JPMorgan began to acquire the biggest physical silver stockpile in history.

  1. In little more than a month, as a result of the big break in silver prices staring on May 1, 2011, some 60 million ounces were liquidated from the big silver ETF, SLV, as a result of plain vanilla selling by investors who sold their shares in reaction to plunging prices. When net selling occurs in SLV, metal is automatically redeemed from the trust on a mechanical basis. The shares were sold and the metal was withdrawn from the trust as prescribed by the prospectus. That doesn’t mean the metal was dumped on the streets of London or ceased to exist. The metal fell into the ownership of someone and the most likely candidate was the entity that arranged for the selloff in the first place. The entity which stood to gain the most by the selloff was JPMorgan. They picked up their first 50-60 million ounces as a result of the May 2011 silver smack down.
  1. Pressed for space to store the silver it planned to acquire, JPM opened its own COMEX warehouse in April 2011 and from zero ounces in 2011, that warehouse has turned into the biggest COMEX silver warehouse of all with nearly 55 million ounces on deposit. The start date proves intent by JPMorgan to acquire silver.
  1. In 2012, JPMorgan physically transferred 100 million ounces of silver from its own custodial warehouse for SLV to the Brinks warehouse in London, leaving ample space in the former SLV warehouse to store 100 to 200 million ounces of silver that would come to be owned by JPMorgan and that would never require public disclosure. This is the most plausible explanation for why JPMorgan would move the silver to the Brinks warehouse. All the movements of metal out of SLV over the years, reeks of JPMorgan converting SLV shares to metal to be stored in its own warehouse in London on an undisclosed basis. An easy 200 million ounces can be accounted for in this manner.
  1. The unusual and unprecedented turnover of physical silver in the COMEX-approved silver warehouses that began in April 2011 suggests to me that JPMorgan has been causing the movement in its quest to acquire physical silver. An easy 100 million ounces acquired by JPMorgan can be deduced from the more than 750 million ounces turned over in the COMEX warehouses over the past four years. How hard would it be for JPMorgan to “skim” 100 million ounces off a turnover of 750 million ounces?
  1. The recent acceptance of more than 10 million ounces on COMEX futures deliveries and the physical movement of most of that metal into the JPM COMEX warehouse is a mere fraction of the total amount of silver JPMorgan has acquired over the past four years, but it is clearly the most transparent and may point to JPMorgan reaching the maximum amount of physical silver it intends to acquire, indicating we may be close to when the bank decides to let silver prices rise.

I’m using the number of 350 million ounces as what JPMorgan has acquired, but the real amount may be in excess of 500 million ounces. I’m being somewhat conservative in saying 350 million ounces because I’m worried that those who deny that JPM has acquired any physical silver heads might explode if the number is closer to half a billion ounces. I’m not looking for anyone to lose their minds, but to understand what these facts mean.

Ted Butler

May 11, 2015

end

 

As we will describe below(zero hedge), Greece has run out of money as it pays the IMF with IMF money:

(courtesy GATA)

Greece drains its emergency account at IMF to repay IMF loan

Section:

Greece Tapped Its Emergency IMF Reserves to Pay IMF Debt: Sources

By Lefteris Papadimas and George Georgiopoulos
Reuters
Tuesday, May 12, 2015

ATHENS — Greece emptied an emergency IMF holding account to repay 750 million euros (L539.4 million) due to the international lender, a Greek central bank official said, avoiding default but underscoring the dire state of the country’s finances.

With Athens close to running out of cash and a deal with its international creditors still elusive, there had been doubts about whether the leftist-led government would pay the IMF or opt to save cash to pay salaries and pensions this month.

Members of the International Monetary Fund are required to keep a holding account, which may be used for emergencies, but the money can be used only with the lender’s approval, the central bank official said.

A government official told Reuters that Athens used about 650 million euros from the holding account and 100 million euros from its cash reserves to make the payment on Monday. …

… For the remainder of the report:

http://uk.reuters.com/article/2015/05/12/uk-eurozone-greece-idUKKBN0NX0Q

 

end

More fines for the crooked banks on the FX rigging. They plead guilty to criminal activity but get a waiver so they can continue to operate:

 

(courtesy London’s Financial Times)

Big banks finalize $6 billion-plus settlements on FX rigging

Section:

From the Financial Times, London
Monday, May 11, 2015

Five of the world’s biggest banks are finalising agreements to collectively pay more than $6 billion for allegedly manipulating foreign exchange markets, with an announcement expected as soon as Wednesday.

Switzerland’s UBS will pay less than $800 million, people familiar with the situation said. The highest fines will be borne by the UK’s Barclays, which is expected to agree to pay about £2 billion, or about $3.1 billion. JPMorgan Chase, Royal Bank of Scotland, and Citigroup are all expected to pay as much as $1 billion each. …

… For the remainder of the report:

http://www.ft.com/intl/cms/s/0/4e3eca04-f7cb-11e4-9beb-00144feab7de.html

 

end

 

 

 

Our resident expert on China’s gold demand and exchanges:

(courtesy Koos Jansen)

 

Posted on 12 May 2015 by

China’s Silk Road Economic Project Will Include Gold

The Chinese government seems to be very keen on developing the New Silk Road Economic Belt as fast as possible; an initiative, said to be designed by President Xi Jinping himself, that will increase economic cooperation in the wide Eurasian region. At a stunning speed China and Russia take the lead in strengthening ties in the area. For the wind down of the US dollar hegemony the Silk Road economic project is an important tool. As part of this project two clubs are rapidly developing as we speak, the Asian Infrastructure Investment Bank (AIIB) and the Eurasian Economic Union(EEU). Additionally, China is incorporating gold into the Silk Road project.

The Asian Infrastructure Investment Bank

The AIIB is an international financial institution proposed by China in 2013 to finance infrastructure projects in Asia. The Chinese government has been frustrated with the slow pace of reforms in established institutions like the IMF and World Bank, which are dominated by the US. China’s rapid economic growth in recent years has made them pursuing a greater input in these institutions, but the US has neglected to honor these requests appropriately, forcing China to launch its own institutions.

Despite the US has been pressuring its allies from signing up as AIIB prospective founding members only Japan obeyed, signaling a demise of US power and failing US foreign policy. In a milestone event many western countries have submitted for membership in March and April 2015, amongst others the UK, Switzerland, Sweden, Spain, Portugal, Norway, the Netherlands, Italy, Germany, France, Finland, Denmark, Australia and Israel. The AIIB articles of agreement are expected to be completed by the end of 2015.

China is now playing multiple games at the same time by developing the AIIB and concurrently pressuring the IMF to reform. One of China’s goals is for the renminbi to be included into the IMF’s basket of currencies the Special Drawing Right (SDR). On April 30, 2015, the IMF’s Director Of The Communications Department, Gerry Rice, stated in a press briefing about the SDR review “Yes, the work has begun” (see this video at 28:15). The first IMF board meeting on the SDR review originally scheduled in May 2015, has been “deferred, because the work is underway” (see the same video at 31:30).

The Eurasian Economic Union

The President of Kazakhstan, Nursultan Nazarbayev, first suggested the idea of creating a regional (Eurasian) trading bloc during a speech at Moscow State University In 1994. Afterwards Belarus, Russia and Kazakhstan formed a free trade zone, which turned into a customs union, followed by a single economic space, finally reaching an economic union (the EEU) on May 29, 2014, when an agreement was signed by the Supreme Eurasian Economic Council in Astana, Kazakhstan.

Worth noting is that according to Pravda.ru Nazarbayev is of the opinion the US dollar is an illegal and non-competitive means of payment, “the world currency was not de jure legitimate because it was never adopted by any communities or organizations. There is no such international law,… the world currency market is not a civilized market, as the system of world currency issuance is not being controlled”. Nazarbayev believes the world is heading towards a new monetary system, from “defective capitalism” to “the new capitalism that would be based on a non-defective currency.” Chinese President Xi Jinping visited Kazakhstan in September 2013 where he raised the initiative of the Silk Road Economic Belt at the Nazarbayev University. In March this year China and Kazakhstan signed 33 deals on industrial capacity cooperation.

The EEU is aggressively expanding; its latest official members are Armenia and Kyrgyzstan. By looking at the EEU flag, that displays the whole of Asia, it doesn’t take a lot of imagination to expect they’ll continue expanding. Turkey has mentioned it likes to join and there are talks with Vietnam to form a free trade area.

EEU flag
EEU flag

Russian news outlet RT has disclosed that Vladimir Putin and Xi Jinping have signed a decree on cooperation in tying the development of the EEU with the Silk Road economic project. “The integration of the Eurasian Economic Union and Silk Road projects means reaching a new level of partnership and actually implies a common economic space on the continent,” Putin said. Furthermore, columnist for Russian news outlet Sputnik, Pepe Escobarstated, “What we have here, above all, is the China-led New Silk Road directly connecting with the Russia-led EEU. China and the EEU are bound to set up a free trade zone”. The EEU could potentially grow into a very significant power bloc.

More from Escobar:

The always-evolving strategic partnership is not only about energy – including the possibility of Chinese-controlled stakes in crucial Russian oil and gas projects – and the defense industry; it’s increasingly about investment, banking, finance and high technology.

…The partnership’s reach is extremely wide, from Russia-China cooperation within the Shanghai Cooperation Organization (SCO) to the Russia-China stake in the new BRICS development bank, and to Russian support to the Chinese-led Asian Infrastructure Investment Bank (AIIB) and the Silk Road Foundation.

…Beijing and Moscow, along with the other BRICS nations, are fast moving to trade independently of the US dollar, using their own currencies. In parallel, they are studying the creation of an alternative SWIFT system – which will necessarily be joined by EU nations, as they are joining the AIIB.

There have also been talks for an EEU joint currency titled Altyn, which refers to an ancient currency that used to circulate in Eurasia. In the past Altyn has never been minted in gold, although in Turkic, a language family spoken in Eurasia, Altyn does mean Gold.

Make sure English captions are turned on in the next video clip from Russian television about Altyn.

Belarus, Kazakhstan, Russia and China have all substantially increased their official gold reserves since the first quarter of 2000. Kyrgyzstan to a lesser extent and Armenia has currently no official gold reserves.