May 14b/Greek government stops paying suppliers for 4 months/German Bundesbank President blasts ECB head Draghi/Bill Holter tackles the Ted Butler paper on JPMorgan’s silver hoard.

Good evening Ladies and Gentlemen:

 

 

Here are the following closes for gold and silver today:

Gold:  $1225.40 up $7.00 (comex closing time)

Silver $17.45 up 24 cents (comex closing time)

 

In the access market 5:15 pm

Gold $1221.60

Silver: $17.50

 

 

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 4 notice serviced for 400 oz.  Silver comex filed with 31 notices for 155,000 oz

 

Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 242.14 tonnes for a loss of 61 tonnes over that period. Looks to me like the comex is bleeding profusely!!

 

In silver, the open interest rose by 5464 contracts as Wednesday’s silver price was up by 70 cents.  The total silver OI continues to remain extremely high with today’s reading at 180,383 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 31 notices served upon for 155,000 oz.

 

In gold,  the total comex gold OI rests tonight at 417,716 for a gain of 12,104 contracts as gold was up by $25.80 yesterday. We had 4 notices served upon for 400 oz.

 

Today, we had another huge withdrawal in  gold Inventory to the tune of 4.41 tonnes, at the GLD. It rests tonight at 723.91  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. On Tuesday  Koos Jansen informed me that last week 38 tonnes of gold was demanded by the Chinese .

 

In silver, / another huge 1.912 million oz of silver withdrawn from silver inventory at the SLV / and thus the inventory tonight remains at 320.750 million oz

 

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

 

1. Today we had the open interest in silver rise appreciably by 5464  contracts as  silver was up in price yesterday by 21 cents.  The OI for gold rose by 12,104 contracts up to 417,716 contracts as the price of gold was up  by $25.80 yesterday. GLD had a huge  change (withdrawal) of 4.41 tonnes and another withdrawal of 1.912 million oz of silver from the SLV.

(report Harvey)

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

zero hedge

 3.  Bill Holter further provides commentary on Ted Butler’s theory that JPMorgan has accumulated 350 million oz of silver.

(Bill Holter)

4. Bundesbank head, Jens Weidmann blasts Draghi for providing ELA to Greece and for purchasing bonds on the open market totally in contravention of their charter.

zero hedge

5. Greek government for the last 4 months has stopped paying suppliers

Ekatherimini

6. Kansas City Southern railway gives a disastrous outlook for the USA economy

zero hedge)

7. Consumer comfort index falls badly again.

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 12,104 contracts from 405,612 up to 417,716, as gold was up by $25.80 yesterday (at the comex close).  We are in our next non active delivery month of May and here the OI fell by 3 contracts falling to 145. We had 1 notice filed upon yesterday.  Thus we lost 2 gold contracts or 200 oz will not stand for delivery in May. The next big active delivery contract month is June and here the OI fell by 2,535 contracts down to 195,953. 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 99,603. The confirmed volume yesterday (which includes the volume during regular business hours + access market sales the previous day) was unbelievable at 283,777 contracts as the bankers continued to use non backed paper against all of that demand. Today we had 4 notices filed for 400 oz.

 

And now for the wild silver comex results.  Silver OI rose by 5,464 contracts from 174,919 up to 180,383 as the price of silver was up  in price by 70 cents, with respect to yesterday’s trading. The bankers also used a humongous amount of non backed paper to quell the huge demand for silver.  We are into the active delivery month of May where the OI fell by 34 contracts down to 375. We had 5 contracts filed upon with respect yesterday’s trading.  So we lost 29 contracts or an additional 145,000 oz will not stand for delivery in this May delivery month. The estimated volume today was fair at 32,154 contracts (just comex sales during regular business hours. The confirmed volume  yesterday (regular plus access market) came in at 83,061 contracts which is unbelievable  in volume. We had 31 notices filed for 155,000 oz today.

 

May initial standings

May 14.2015

Gold

Ounces

Withdrawals from Dealers Inventory in oz    nil
Withdrawals from Customer Inventory in oz  nil
Deposits to the Dealer Inventory in oz nil
Deposits to the Customer Inventory, in oz nil
No of oz served (contracts) today 4 contracts (400 oz)
No of oz to be served (notices)  141 contracts(14,100) oz
Total monthly oz gold served (contracts) so far this month 7 contracts(700 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  52,539.9 oz

 

Today, we had 0 dealer transactions

 

 

total Dealer withdrawals: nil oz

 

we had 0 dealer deposit

total dealer deposit: nil oz
we had 0 customer withdrawal

 

total customer withdrawal: nil  oz

We had 0 customer deposits:

total customer deposit: nil  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 4 contracts of which 0 notices were stopped (received) by JPMorgan dealer and 0 notices were stopped (received) by JPMorgan customer account

To calculate the total number of gold ounces standing for the May contract month, we take the total number of notices filed so far for the month (7) x 100 oz  or 700 oz , to which we add the difference between the open interest for the front month of May (141) and the number of notices served upon today (4) x 100 oz equals the number of ounces standing.

 

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

 

No of notices served so far (7) x 100 oz  or ounces + {OI for the front month (141) – the number of  notices served upon today (4) x 100 oz which equals 14,800 oz standing so far in this month of May. (.46 tonnes of gold)

we lost 2  gold contracts or an additional 200 ounces will not stand for delivery.

 

Total dealer inventory: 372,738.572 or 11.59 tonnes

Total gold inventory (dealer and customer) = 7,784,927.15. (242.14) tonnes)

Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 242.14 tonnes for a loss of 61 tonnes over that period. Lately the removals  have been rising!

end

And now for silver

May silver initial standings

May 14 2015:

Silver

Ounces

Withdrawals from Dealers Inventory nil
Withdrawals from Customer Inventory 107,072.170 oz (Brinks, Scotia)
Deposits to the Dealer Inventory  nil
Deposits to the Customer Inventory  nil
No of oz served (contracts) 31 contracts  (155,000 oz)
No of oz to be served (notices) 344 contracts (1,720,000 oz)
Total monthly oz silver served (contracts) 2532 contracts (12,660,000 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 2,998,496.1  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 0 customer deposits:

total customer deposits;  nil oz

We had 1 customer withdrawals:

i) Out of Scotia:  107,072.170

total withdrawals;  107,072.170 oz

we had 2 adjustments

i) Out of CNT: 14,404.300 oz was adjusted out of the customer and this landed into the dealer account of CNT

ii) Out of Delaware:  10,416.400 oz was adjusted out of the customer and this landed into the dealer account of Delaware

Total dealer inventory: 60.142 million oz

Total of all silver inventory (dealer and customer) 177.578 million oz

The total number of notices filed today is represented by 31 contracts for 155,000 oz. To calculate the number of silver ounces that will stand for delivery in May, we take the total number of notices filed for the month so far at (2532) x 5,000 oz  = 12,660,000 oz to which we add the difference between the open interest for the front month of April (375) and the number of notices served upon today (31) x 5000 oz equals the number of ounces standing.

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

2532 (notices served so far) + { OI for front month of April (375) -number of notices served upon today (31} x 5000 oz = 14,380,000 oz of silver standing for the May contract month.

we lost 29 contracts or an additional 145,000 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 14./ a huge withdrawal of 4.41 tonnes of gold/Inventory rests at 723.91 tonnes

May 13.2015: no change in inventory at the GLD/Inventory rests at 728.32 tonnes

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

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 14 GLD : 723.91  tonnes.

 

end

And now for silver (SLV)

May 14/ a huge withdrawal of 1.912 million oz from the SLV/Inventory at 320.75 million oz.

May 13.2015: no changes at the SLV/Inventory rests at 322.662 million oz

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

May 14/2015  no changes at the SLV / inventory rests at 320.75 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 8.1% percent to NAV in usa funds and Negative 8.1% to NAV for Cdn funds!!!!!!!

Percentage of fund in gold 61.6%

Percentage of fund in silver:38.1%

cash .3%

( May 14/2015)

2. Sprott silver fund (PSLV): Premium to NAV falls to-0.76%!!!!! NAV (May 14/2015)

3. Sprott gold fund (PHYS): premium to NAV rises to -.23% to NAV(May 14/2015

Note: Sprott silver trust back  into negative territory at -0.76%.

Sprott physical gold trust is back into negative territory at -.23%

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)

Global Debt Now $200 Trillion!

– McKinsey Institute says global debt is $199 trillion and unsustainable
– Total global debt is $27,204 for every person living today
– All major economies have “higher levels of borrowing relative to GDP” than in 2007
– 3 risk areas – rising Chinese debt, government and household debt
– Debt report ignores U.S. unfunded liabilities of over $100 trillion
– Major cause of risky, unprecedented debt levels – QE and ultra loose monetary policies not acknowledged
– Risk of new global financial crisis – wealth taxes, currency wars and devaluations and bail-ins

Debt is booming

Global debt is now in the region of $200 trillion. The McKinsey Global Institute recently published a report highlighting the bloated, unsustainable levels of debt that have been accumulated globally and the huge risks when interest rates begin to rise again.

McKinsey concluded that total global debt was $199 trillion and the little covered report was released in February – 3 months ago – meaning that the figure is likely over $200 trillion. With a global population of 7.3 billion this works out out at over $27,200 of debt for every man, woman and child alive in the world today.

Almost 29% of that debt – $57 trillion – has been accumulated in the relative short period since the financial crisis erupted in 2007 – just 8 years.

This has increased the total debt-to-GDP ratio by 17% and “poses new risks to financial stability and may undermine global economic growth.”

goldcore_chart4_14-05-15
The report, entitled “Debt and (not much) deleveraging”, analyses the debt situation in 47 different countries – 22 of which have advanced economies and 25 with developing economies.

Of the 22 advanced economies every one was found to have higher debt-to-GDP ratios today than they did in 2007. For many, the ratio had grown by more than 50%.

The three major areas for concern according to the report are rising government debt, rising household debt and rising total debt in China – which has increased a staggering four-fold since 2007.

The McKinsey report states bluntly that “government debt is unsustainably high in some countries.”

Government debt has expanded by 25% since the crisis began and much of it stems directly from the crisis.

The report states that for the six of the most highly indebted nations deleveraging has become impossible – at least without “implausibly large increases in real-GDP growth or extremely deep fiscal adjustments.”

goldcore_chart7_14-05-15
With regard to household debt the report states that household debt-to-income ratios in some countries exceed those of the crisis countries in the run-up to 2008.

In those crisis countries – the report cites the U.S., the U.K., Ireland and Spain – households have managed to pay down some debt. According to the report, in advanced countries – like  Australia, Canada, Denmark, Sweden and the Netherlands – but also in Malaysia, South Korea, and Thailand household debt relative to income has exploded.

China’s debt has quadrupled since 2007 to $28 trillion. This represents 282% of GDP. The McKinsey Institute expresses concern about China’s financial system thus:

“half of all loans are linked, directly or indirectly, to China’s overheated real-estate market; unregulated shadow banking accounts for nearly half of new lending; and the debt of many local governments is probably unsustainable.”

They believe the Chinese government could bail-out the financial system if necessary but suggest that debt be reined in.

goldcore_chart5_14-05-15
The report offers its solutions to these three growing crises but fails to acknowledge the root cause of the problem – the policy response of governments and central banks in recent years and the debt based monetary system.

Not acknowledged in the report is the fact that governments and central banks opted to bail out banks, at the expense of taxpayers and engaged in quantitative easing which again aided banks and their balance sheets but further indebted taxpayers and sovereign nations.

In a world where currency comes into existence as a debt and the interest on that debt cannot be paid until new currency is created in the form of new debt, governments are left with a choice between continuous debt expansion and borrowing or deflation and possible depression and economic collapse.

Unless and until the debt based system is replaced there can only ever be an increasing debt load and an urgency for economic growth with the consequent degradation of our environment and a debt enslaved humanity.

The solutions offered by the McKinsey report, particularly with regard to dealing with government debt, instead focus on ever more government and corporate power and financial repression.

For example, in dealing with government debt the report suggests “more extensive asset sales, one-time taxes on wealth, and more efficient debt-restructuring programs.”

goldcore_chart6_14-05-15

The summary of the report makes this conclusion:

“Debt undoubtedly remains an essential tool for financing economic growth. But how it is created, used, monitored, and (when necessary) discharged still needs improvement.”

It is not clear what “one-time tax on wealth” McKinsey have in mind and whether debt restructuring will involve “bail-ins.”

Another glaring omission in the McKinsey report is the dire fiscal position of the U.S. who now have a National Debt or Federal Debt of $18,44 trillion and a real national debt and “unfunded liabilities” alone of over $100 trillion.

The attempt to solve what was essentially a global debt crisis with mountains of more debt means we will have another global financial crisis –  the question is when rather than if.

This will have an impact on our economic recovery and on asset prices and hence the importance of diversification – both in terms of asset diversification but also in terms of geography and where and how your assets are owned.

Must read guide to Bail-ins here: Protecting your Savings In The Coming Bail-In Era

MARKET UPDATE

Today’s AM LBMA Gold Price was USD $1,214.75, EUR  $1,063.59 and GBP $768.91 per ounce.
Yesterday’s AM LBMA Gold Price was USD 1,193.00, EUR 1,062.43 and GBP 761.55 per ounce.