May 22/Austria to repatriate 110 tonnes of gold from the Bank of England/Huge inflationary numbers form the USA courtesy of Obamacare/many insurance companies must raise their rates/Stalemate in Greece again/An unbelievable COT report/

Good evening Ladies and Gentlemen:

 

 

Everything is fine now.

 

Here are the following closes for gold and silver today:

Gold:  $1204.30 down $0.10 (comex closing time)

Silver $17.03 down 8 cents (comex closing time)

 

In the access market 5:15 pm

Gold $1205.60

Silver: $17.11

 

 

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 0 notices serviced for nil oz.  Silver comex  filed with 30 notices for 150,000 oz

 

Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 243.71 tonnes for a loss of 59 tonnes over that period. 

 

In silver, the open interest rose by 259 contracts as Thursday’s silver price was up by 2 cents.   The total silver OI continues to remain extremely high with today’s reading at 174,593 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 30 notices served upon for 150,000 oz.

 

In gold,  the total comex gold OI rests tonight at 417,821 for a loss of 9,382 contracts as gold was down by $4.80 yesterday. We had 0 notices served upon for nil oz. Whenever we approach first day notice, the entire open interest for the gold or silver complex collapses.

 

Today, we had no changes in inventory at the GLD, thus the new inventory rests tonight at 715.26  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, /we had no change in silver inventory at the SLV/Inventory rests at 317.930 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 259 contracts as silver was up in price yesterday by 2 cents.  The OI for gold fell by 9382 contracts down to 417,821 contracts as the price of gold was down by $4.80 yesterday. We continually witness open interest contraction once first day notice approaches on an active precious metals contract.

(report Harvey)

2,Today we had 2 major commentaries on Greece where it looks like this country will have to issue IOU’s.

(zero hedge,Paul Mason )

3.Koos Jansen reports on the Chinese gold leasing game.

(Koos Jansen)

4. Austria announces 110 tonnes of gold is to be repatriated from the Bank of England

(GATA/zero hedge)

5. An unbelievable COT report

(report Harvey)

6. The Russians add another 9.33 tonnes to the reserves (300,000 oz)

(goldchartsrus.com)

7. Bill Holter delivers a super commentary where he states that June will see the big explosion in the financial markets and he explains why.

(Bill Holter/Holter/Sinclair collobration)

8. The USA reported huge  inflationary numbers and the culprit: Obamacare (2 commentaries)

(zero hedge/Dave Kranzler IRD)

9. The Russians call in their 3 billion USA note:

(the Russian insider)

 

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 fall by 9382 contracts from 427,203 down to 417,821 as gold was down by $4.80 yesterday (at the comex close). For at least the past 18 months, we have been witnessing a total contraction of open interest in an active precious metals month once we are about to enter first day notice. We are in the active delivery month of May and here the OI fell by 42 contracts falling to 82. We had 0 notices filed yesterday.  Thus we lost 42 gold contracts or an additional 4,200 oz will not stand for delivery in May. The next big active delivery contract month is June and here the OI fell by 23, contracts down to 139. June is the second biggest delivery month on the comex gold calendar. First day notice is May 29.2015 so we have 4 trading sessions left. The estimated volume today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was poor at 94,656. The confirmed volume yesterday (which includes the volume during regular business hours + access market sales the previous day) was poor at 190,352 contracts paper. Today we had 0 notices filed for nil oz.

 

And now for the wild silver comex results.  Silver OI rose by 259 contracts from 174,334 up to 174,5932 as the price of silver was up in price by 2 cents, with respect to Thursday’s trading. We are into the active delivery month of May where the OI fell by 0 contracts and thus remaining at 289. We had 0 contracts filed upon with respect Thursday’s trading.  So we lost 0 contracts so we neither lost nor gained any silver ounces standing for delivery in this May delivery month. The estimated volume today was poor at 18,716 contracts (just comex sales during regular business hours. The confirmed volume  yesterday (regular plus access market) came in at 23,790 contracts which is poor in volume.  We had 30 notices filed for 150,000 oz today.

 

 

May initial standings

May 22.2015

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 3000.000 oz ???HSBC, 
No of oz served (contracts) today 0 contracts (nil oz)
No of oz to be served (notices)  82 contracts(8200) oz
Total monthly oz gold served (contracts) so far this month 15 contracts(1500 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  53,054.3 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 withdrawals

total customer withdrawal: nil  oz

 

We had 1 customer deposits:

i) Into HSBC: 3,000.000 oz  ???? (not divisible by 32.15)

 

Total customer deposit:  3000.00 oz

 

We had 2   adjustments:

i) Out of HSBC: 101.85 oz was adjusted out of the dealer and this landed into the customer account of HSBC

ii) Out of JPMorgan; 102.18 oz was removed from the dealer account of JPMorgan and this landed into the customer account of JPM

 

 

Today, 0 notices was issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 0 contracts of which 0 notices were stopped (received) by JPMorgan dealer and 0 notices were stopped (received) by JPMorgan customer account

 

To calculate the total number of gold ounces standing for the May contract month, we take the total number of notices filed so far for the month (15) x 100 oz  or 1500 oz , to which we add the difference between the open interest for the front month of May (82) 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 May contract month:

 

No of notices served so far (15) x 100 oz  or ounces + {OI for the front month 82) – the number of  notices served upon today (0) x 100 oz which equals 9700 oz standing so far in this month of May. (.3017 tonnes of gold)

we lost 4,200 oz of gold standing in this May delivery month. 

 

Total dealer inventory: 372,630.992.022 or 11.59 tonnes

Total gold inventory (dealer and customer) = 7,835,317.01. (243.71) tonnes)

Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 243.71 tonnes for a loss of 59 tonnes over that period. Lately the removals  have been rising!

 

end

 

And now for silver

 

May silver initial standings

May 22 2015:

Silver

Ounces

Withdrawals from Dealers Inventory nil
Withdrawals from Customer Inventory 1006.80 oz (CNT)
Deposits to the Dealer Inventory  nil
Deposits to the Customer Inventory  3078.63 oz (CNT,Delaware)
No of oz served (contracts) 30 contracts  (150,000 oz)
No of oz to be served (notices) 259 contracts (1,295,000 oz)
Total monthly oz silver served (contracts) 2703 contracts (13,515,000 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 3,853,785.3  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 2 customer deposits:

i) Into CNT: 2015.63 oz

ii) Into Delaware: 1063.000 oz???

 

total customer deposit: 3078.63  oz

 

We had 1 customer withdrawals:

i) Out of CNT:  1006.80 oz

total withdrawals from customer;  1006.80 oz oz

 

we had 1 adjustments

i) out of Delaware: 152,614.100 oz was adjusted out of the customer and this landed into the dealer account of Delaware.

Total dealer inventory: 60.854 million oz

Total of all silver inventory (dealer and customer) 178.764 million oz

 

The total number of notices filed today is represented by 30 contracts for 150,000 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 (2703) x 5,000 oz  = 13,515,000 oz to which we add the difference between the open interest for the front month of April (289) and the number of notices served upon today (30) x 5000 oz equals the number of ounces standing.

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

2703 (notices served so far) + { OI for front month of April (289) -number of notices served upon today (30} x 5000 oz = 14,810,000 oz of silver standing for the May contract month.

We neither lost nor gained any silver ounces standing for the May contract 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:

May 22.2015: no changes in gold inventory at the GLD/Inventory rests at 715.26 tonnes

May 21./no changes in gold inventory at the GLD/Inventory rests at 715.26 tonnes

May 20./we had another withdrawal of 2.98 tonnes of gold leaving the GLD. Inventory rests tonight at 715.26 tonnes

May 19/no changes in gold inventory at the GLD/Inventory at 718.24 tonnes

May 18/we lost another 5.67 tonnes of gold inventory at the GLD/Inventory rests at 718.24 tonnes

May 15./no change in gold inventory at the GLD/Inventory rests at 723.91 tonnes

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 22 GLD : 715.26  tonnes.

 

end

 

And now for silver (SLV)

May 22.2015: no changes in SLV/Inventory rests at 317.93 million oz

May 21.no changes at the SLV/Inventory rests at 317.93 million oz

May 20/no changes at the SLV. Inventory rests at 317.93 million oz/

May 19.2015: we lost another 1.195 million oz of inventory at the SLV/Inventory rests at 317.93 million oz/

May 18.2015: we lost another 1.625 million oz of inventory at the SLV/Inventory rests tonight at 719.125 million oz

May 15./no change in silver inventory at the SLV/inventory rests tonight at 320.75 million oz

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 22/2015   no change in inventory/SLV inventory 317.930 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 8.2% percent to NAV in usa funds and Negative 8.1% to NAV for Cdn funds!!!!!!!

Percentage of fund in gold 60.4%

Percentage of fund in silver:39.3%

cash .3%

( May 22/2015)

 

2. Sprott silver fund (PSLV): Premium to NAV falls to-1.04%!!!!! NAV (May 22/2015)

3. Sprott gold fund (PHYS): premium to NAV falls to -39% to NAV(May 22/2015

Note: Sprott silver trust back  into negative territory at -1.04%.

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

Central fund of Canada’s is still in jail.

end

 

At 3:15 est the CME sends down the COT reports which tells us position levels of our major players.  I have never in my life seen a report like this.

Let us first see our gold COT

gold: COT

 

Gold COT Report – Futures
Large Speculators Commercial Total
Long Short Spreading Long Short Long Short
202,190 79,569 46,685 140,751 273,085 389,626 399,339
Change from Prior Reporting Period
22,933 -22,248 -2,766 -4,078 50,754 16,089 25,740
Traders
142 89 81 49 52 223 196
 
Small Speculators  
Long Short Open Interest  
38,971 29,258 428,597  
6,896 -2,755 22,985  
non reportable positions Change from the previous reporting period
COT Gold Report – Positions as of Tuesday, May 19, 2015

Our large specs:

Those large specs that have been long in gold added a monstrous 22,933 contracts to their long side

Those large specs that have been short in gold covered a whopping 22,248 contracts from their short side.

Our commercials:

Those commercials who were long in gold pitched 4078 contracts from  their long side.

Those commercials who were short in gold added a monstrous 50,754 contracts and it was these guys who were supplying the non backed paper. Are the police around??

Our small specs;
Those small specs that have been long in gold added 6896 contracts to their long side.

Those small specs that have been short in gold pitched 2745 contracts from their short side.

Conclusion: the massive fraud orchestrated by the bankers continue unabated.

 

And now for our silver COT:

 

 

Silver COT Report – Futures
Large Speculators Commercial Total
Long Short Spreading Long Short Long Short
68,171 16,891 21,281 62,550 125,035 152,002 163,207
2,869 -19,073 1,193 -5,787 18,595 -1,725 715
Traders
82 45 39 35 47 139 114
Small Speculators  
Long Short Open Interest  
22,335 11,130 174,337  
1,143 -1,297 -582  
non reportable positions Change from the previous reporting period
COT Silver Report – Positions as of Tuesday, May 19, 2015
Tuesday, May 19, 2015

Our large specs;

Those large specs that have been long in silver added a whopping 2869 contracts to their long side.

Those large specs that have been short in silver covered a whopping 19,073 contracts.

Our commercials

Those commercials that have been long in silver added a large 5787 contracts to their long side

Those commercials that have been short in silver added a monstrous 18,595 contracts to their short side.

Our small specs:

Those small specs that have been long in silver added 1143 contracts to their long side.

Those small specs that have been short in silver covered 1297 contracts from their short side.

Conclusion; same as gold.

 

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)

‘Titanic’ Global Economy May “Collapse” Warn HSBC – Gold Is Lifeboat

-“The world economy is like an ocean liner without lifeboats …” – HSBC
– Four areas of high risk identified by HSBC
– Risk of stock market crash
– Pension funds and insurers may not meet obligations
– Chinese recession may drag U.S. into recession or depression
– Premature rate rise would expose very fragile global economy
– “There aren’t enough lifeboats to go round”
– Gold vital lifeboat when global ship strikes iceberg  

goldcore_chart1_22-05-15
The chief economist of the world’s third largest bank, HSBC’s Stephen King, has compared the global economy to the Titanic.

In a note to clients on Wednesday he wrote We may not know what will cause the next downswing but, at this stage, we can categorically state that, in the event we hit an iceberg, there aren’t enough lifeboats to go round.

“The world economy is like an ocean liner without lifeboats.” As we have been warning in recent months, when another recession arrives, governments do not have the ability or the reserves to prop up the economy like they did in 2008.

Global debt has soared by 40 percent since the Great Recession. We now have a staggering $200 trillion of debt globally, or almost three times the size of the global economy. It would be a “truly titanic struggle” for policymakers to right the economy, King said.

He believes that we are now nearer to the next global recession than we are to the last one which ended six years ago. In that time, however, the world has amassed mountains of new unpayable debt – expanding 25% in the last six years – and the U.S. economy has been sluggish despite an unprecedented wave of money printing which was intended to boost the economy. Indeed, post recession growth has never been so anaemic in recent history.

goldcore_chart2_22-05-15

This weakness has left policy makers ill-equipped to deal with the next crisis,

“Whereas previous recoveries have enabled monetary and fiscal policymakers to replenish their ammunition, this recovery – both in the US and elsewhere – has been distinguished by a persistent munitions shortage. This is a major problem. In all recessions since the 1970s, the US Fed funds rate has fallen by a minimum of 5 percentage points. That kind of traditional stimulus is now completely ruled out.”

Elsewhere in the note he describes the problem facing policy makers as “titanic”. He identifies four areas as being of particularly high risk,

– The equity bubble may burst as increasing wages impair corporate profits. This would lead consumers to lose confidence triggering another an economic contraction.

Pension funds and insurers may not have cash to meet future obligations causing them liquidate assets. This may cause a scramble for liquid assets and mass panic-selling in an environment of low demand causing a collapse in asset prices.

– A recession in China would likely force the PBOC to weaken the Yuan. This would cause a consequent rise in the dollar further undermining the ability of the U.S. to export. In such an environment the Fed has typically dropped rates by around 5%.  As the Fed’s base rate is currently at 0.25% it has absolutely no policy tools left to deal with such an event. King concludes “TheU.S. is eventually dragged into a recession through forces beyond its control.”

goldcore_chart3_22-05-15
– If the Fed were to raise rates too soon it could expose the very fragile nature of the “recovery”. Neither governments, nor corporations nor households would have the strength to absorb the costs of servicing their debts should the Fed begin raising rates.

King is extremely doubtful that policy makers will be able to cope with the next crisis:
“The world economy is like an ocean liner without lifeboats. If another recession hits, it could be a truly titanic struggle for policymakers.” Reports do not indicate if King speculates on what the next crisis would look like in the absence of adequate policy tools.

We do not know how it will unfold either. But we suspect that after more that twenty years of Fed intervention to protect too-big-to-fails and a gargantuan build up of debt a monumental day of reckoning may then be at hand. In such an environment we would once again understand the true value of gold as a currency which is finite and which has no counter-party risk.

HSBC’s chief economist does not mention gold as a potential life boat to protect from a titanic economic collapse. However, HSBC’s precious metals team are currently very constructive on the long term outlook for gold prices.

In reaction to their chief economist’s warning, their precious metals analysts said, that any of the scenarios outlined by Stephen King would be positive for gold bullion.

goldcore_chart4_22-05-15
Given the significant and growing economic risks of today, it is prudent to have an allocation to physical bullion stored in reliable vaults in the safest jurisdictions around the world.

Have you got your lifeboat ready?

Must Read Bullion Guides below:

Essential Guide to Bullion Storage in Switzerland

Essential Guide to Bullion Storage in Singapore

MARKET UPDATE

Today’s AM LBMA Gold Price was USD 1,211.00, EUR 1,083.45 and GBP 772.96 per ounce.
Yesterday’s AM LBMA Gold Price was USD 1,209.60, EUR 1,084.36 and GBP 772.60 per ounce.

Gold fell $3.78 to close at $1,205.82 an ounce on yesterday, and silver remained unchanged at $17.12 an ounce.

Gold in U.S. Dollars - 1 Week

Overnight, gold in Singapore inched up 0.2 percent to $1,208.19 an ounce near the end of day trading. Gold is on track to trade down 1.4 percent it largest weekly drop in a month.

Gold prices have rebounded today after ending yesterday down 0.3%, but appear to have run into some resistance at their 200-day moving average (1215). On the week, gold is down 0.7% andsilver is marginally lower in dollars for the week but has eked out gains in euro terms. The biggest fall of the week was palladium, down just over 2%.

On a daily basis, palladium’s the only precious metal lower today, down just over half a percent, while platinum’s up 0.3% and silver’s 0.5% higher.

Gold in Euros - 1 Week

Gold was weak in dollar terms but strong in euro terms this week. The U.S. dollar gained nearly 2 percent this week as the euro weakened again.

‘Grexit’ remains a real risk. German chancellor Angela Merkel, Greek Prime Minister Alexis Tsipras and French president Francois Hollande are negotiating a cash-for reforms deal that would allow Greece to meet its debt repayments next month and join the ECB’s quantitative easing programme.

“We can’t just throw Greece of the euro” – Juncker has threatened ahead of the crunch summit. Greece says a reform deal can come in 10 days, but Merkel is cautious –  she warned that there is a ‘whole lot left’ to do on Greece bailout talks.
Jitters remains about the next repayment which is due on June 5th. ‘Extend and pretend’ seems likely again but obviously this can only go on for so long before we get a very serious crisis and potentially contagion.

Thomson Reuters’ Lipper service data showed yesterday that investors in U.S.-based funds removed $597 million out of commodities and precious metals funds in the week ended May 20, the biggest outflow since December 2013, showing negative sentiment towards the sector.