June 12b/GLD loses another .24 tonnes/SLV adds 956,000 oz/Greece given final ultimatum to sign a deal or else/3rd mining company issues a complaint to the CFTC/Record levels of open interest in silver (191,663)

Good evening Ladies and Gentlemen:

Here are the following closes for gold and silver today:

Gold:  $1178.80 down $1.10 (comex closing time)

Silver $15.82  down 13 cents.

In the access market 5:15 pm

Gold $1181.50

Silver: $15.98

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 6 notices serviced for 600 oz.  Silver comex filed with 2 notices for 10,000 oz.

Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 251.09 tonnes for a loss of 52 tonnes over that period.

In silver, the open interest rose by another 1993 contracts even though Thursday’s silver price was unchanged.   The total silver OI continues to remain extremely high with today’s reading at 191,663 contracts now at multi-year highs despite a record low price. In ounces, the OI is represented by 958 million oz or 136% of annual global silver production (ex Russia ex China). 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 as they continue to raid as basically they have no other alternative.

In silver we had 2 notices served upon for 10,000 oz.

In gold,  the total comex gold OI rests tonight at 404,169 for a loss of 2682 contracts as gold was down  $6.20 yesterday. We had 6 notices filed for 600 oz.

Late last night, we had another withdrawal, (although this time it is quite small )in gold inventory at the GLD to the tune of .24 tonnes. Thus the inventory rests tonight at 703.98 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 another huge addition of 1.126 million oz in silver inventory at the SLV/Inventory rests at 326.918 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 1993  contracts to 191,663 despite the fact that silver was unchanged in price.  The OI for gold fell by 2682 contracts down to 404,169 contracts despite the fact that the price of gold was down by $6.20 on Thursday.

(report Harvey)

2. An unbelievable COT report

(report Harvey)

3. Today, 7 important commentaries on Greece

zero hedge, Bloomberg)

4. Dave Kranzler and Craig Hemke talk about the manipulation of the metals

(Dave Kranzler/IRD/TFMetals/)

5. Bill Holter’s paper tonight is entitled:

“Zimbabwe to make you think..”

6. We now have our 3rd mining company issue a complaint to the CFTC on silver manipulation

(GATA)

7. Alasdair Macleod discusses calculations and meaning of GDP!

(Alasdair Macleod)

8. Grant Williams of HMMM fame talks with Andrew Maguire: two great minds discuss the precious metals and what is really going on underneath the surface

(Grant Williams/Andrew Maguire)

9. Is Deutsche bank the next Lehman

(NOTQUANT.com)

10. Precious metals trading overnight from Asia/Europe

(Goldcore)

11. Trading from Asia and Europe overnight

(zero hedge)

12. Trading of equities/ New York

(zero hedge)

13. Another big story on the huge shortage of collateral in the uSA namely the use of USA treasuries.  You must pay an additional 2.2% in order to obtain a treasury.  Why the huge cost?  The derivatives must have blown up and thus the huge need for additional collateral.
(zero hedge)
14. Beef prices up significantly these past two years
(zero hedge)

we have these plus other stories to bring your way tonight. But first……..

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 2682 contracts from 406,851 down to 404,169 as gold was down $6.20 yesterday (at the comex close).  We are now in the big active delivery contract month of June.  Here the OI fell by 40 contracts down to 748. We had 26 notices served upon yesterday.  Thus we lost 14 contracts or an additional 1,400 oz will not stand for delivery.  No doubt, again, we had a huge number of cash settlements and the farce continues.  The next contract month is July and here the OI fell by 146 contracts down to 669.  The next big delivery month after June will be August and here the OI fell slightly by 2882 contracts  to 264,561. No doubt that the cash settled June contracts, having been bought out for fiat, rolled into August. The estimated volume today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was poor at 47,665. The confirmed volume on Thursday (which includes the volume during regular business hours + access market sales the previous day) was poor at 120,486 contracts. Today we had 6 notices filed for 600 oz.

And now for the wild silver comex results.  Silver OI rose by  contracts from 189,670 up to 191,663 despite the fact that the price of silver was unchanged, with respect to Thursday’s trading.  The front non active  delivery month of June saw it’s OI fall by 0 contracts and remaining at 28. We had 0 contracts delivered upon yesterday.  Thus we neither gained nor lost any  silver ounces that will stand for delivery in this non active June contract month. The estimated volume today was poor at 14,504 contracts (just comex sales during regular business hours. The confirmed volume on Thursday (regular plus access market) came in at 65,861 contracts which is very good in volume. We had 2 notices filed for 10,000 oz today.

June initial standing

June 12.2015

Gold

Ounces

Withdrawals from Dealers Inventory in oz    nil
Withdrawals from Customer Inventory in oz  37,281.049 oz (Scotia)
Deposits to the Dealer Inventory in oz nil
Deposits to the Customer Inventory, in oz 51,061.329 oz (HSBC, Manfra)includes 300 kilobars Manfra
No of oz served (contracts) today 6 contracts (600 oz)
No of oz to be served (notices) 742 contracts (74,200 oz)
Total monthly oz gold served (contracts) so far this month 2631 contracts(263,100 oz)
Total accumulative withdrawals  of gold from the Dealers inventory this month nil
Total accumulative withdrawal of gold from the Customer inventory this month  134,450.3  oz

Today, we had 0 dealer transaction

total Dealer withdrawals: nil oz

we had 0 dealer deposit

total dealer deposit: nil oz
we had 1 customer withdrawals

i) Out of Scotia: 37,281.049 oz

total customer withdrawal: 37,281.049 oz

We had 2 customer deposits:

i) Into HSBC: 50,096.829 oz

ii) Into Manfra: 964.50 oz

Total customer deposit: 51,061.329 oz

We had 0  adjustments:

Today, 0 notices was issued from JPMorgan dealer account and 10 notices were issued from their client or customer account. The total of all issuance by all participants equates to 6 contracts of which 0 notices were stopped (received) by JPMorgan dealer and 2 notices were stopped (received) by JPMorgan customer account

To calculate the total number of gold ounces standing for the June contract month, we take the total number of notices filed so far for the month (2631) x 100 oz  or 263,100 oz , to which we add the difference between the open interest for the front month of June (748) and the number of notices served upon today (6) x 100 oz equals the number of ounces standing.

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

No of notices served so far (2631) x 100 oz  or ounces + {OI for the front month (748) – the number of  notices served upon today (6) x 100 oz which equals 337,300 oz standing so far in this month of June (10.49 tonnes of gold).  Thus we have 10.49 tonnes of gold standing and only 17.07 tonnes of registered or for sale gold is available:

Total dealer inventory 548,644.134 or 17.06 tonnes

Total gold inventory (dealer and customer) = 8,072,671.523 (251.09 tonnes)

Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 251.09 tonnes for a loss of 52 tonnes over that period.

end

And now for silver

June silver initial standings

June 12 2015:

Silver

Ounces

Withdrawals from Dealers Inventory nil
Withdrawals from Customer Inventory 486,170.271 oz (CNT,Scotia,Delaware)
Deposits to the Dealer Inventory  nil
Deposits to the Customer Inventory  629,129.010 oz (Delaware,JPM)
No of oz served (contracts) 2 contracts  (10,000 oz)
No of oz to be served (notices) 26 contracts(130,000 oz)
Total monthly oz silver served (contracts) 222 contracts (11,010,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month 526,732.4  oz
Total accumulative withdrawal  of silver from the Customer inventory this month 4,405,865.7 oz

Today, we had 0 deposits into the dealer account:

total dealer deposit: nil   oz

we had 0 dealer withdrawals:

total dealer withdrawal: nil oz

We had 2 customer deposits:

i) Into Delaware:  17,810.48 oz

ii) Into JPMorgan: 611,318.53 oz*** (7th straight day of an above 500,000 oz silver deposit)

total customer deposit: 629,129.01  oz

We had 3 customer withdrawal:

i) Out of Scotia: 60.261.78 oz

ii) Out of CNT: 382,754.65  oz

iii) Out of Delaware: 43,153.921 oz

total withdrawals from customer;  486,170.271 oz

we had 0 adjustment

Total dealer inventory: 57.845 million oz

Total of all silver inventory (dealer and customer) 179.855 million oz

The total number of notices filed today is represented by 2 contracts for 10,000 oz. To calculate the number of silver ounces that will stand for delivery in June, we take the total number of notices filed for the month so far at (222) x 5,000 oz  = 11,010,000 oz to which we add the difference between the open interest for the front month of June (28) and the number of notices served upon today (2) x 5000 oz equals the number of ounces standing.

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

222 (notices served so far) + { OI for front month of June (28) -number of notices served upon today (2} x 5000 oz ,= 11,140,000 oz of silver standing for the June contract month.

we neither gained nor lost any silver ounces standing for this no active  delivery month of June.

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:

June 12/we had a small withdrawal of .24 tonnes of gold from the GLD/Inventory rests this weekend at 703.98 tonnes.

June 11/we had another huge withdrawal of 1.5 tonnes of gold from the GLD/Inventory rests tonight at 704.22 tonnes

June 10/ we had a huge withdrawal of 2.98 tonnes of gold from the GLD/inventory rests at 705.72

June 9/ no change in gold inventory at the GLD/Inventory rests at 708.70 tonnes

June 8/ a big withdrawal of 1.19 tonnes of gold from the GLD/Inventory rests at 708.70 tonnes

June 5/no change in gold inventory at the GLD/Inventory rests at 709.89 tonnes

June 4/ no change in gold inventory at the GLD/Inventory rests at 709.89 tonnes

June 3/late last night: a huge withdrawal of 4.18 tonnes. Tonight’s inventory rests at 709.89

June 2/no change in gold inventory at the GLD/Inventory rests at 714.07 tonnes

June 12 GLD : 703.98  tonnes.

end

And now for silver (SLV) Please note the difference between GLD and SLV.  GLD has been depleting of gold/SLV has been adding to its inventory.

June 12/we had another addition to the tune of 956,000 oz/Inventory rests this weekend at 327.918.  Please note that there has been an addition on each of the past 5 days.

June 11.2015: we had another monster of an addition to the tune of 2.791 million oz/Inventory rests at 326.918

June 10/another monster of an addition to the tune of 1.126 million oz/Inventory rests at 324.127

June 9/ a monster of an addition to the tune of 3.393 million oz/inventory rests at 323.001 million oz.

June 8/no change in inventory/SLV inventory rests at 319.608 milion oz.

June 5 a huge addition of 1.433 million oz of silver added to the SLV/Inventory at 319.608 million oz

June 4/no change in silver inventory/rests tonight at 318.175 million oz

June 3/ we had a small withdrawal of 138,000 oz of silver inventory/Inventory rests at 318.175 million oz

June 2/ we had a huge addition of 1.243 million oz of silver inventory at the SLV./Inventory rests at 318.313 million oz

June 1/no change in inventory at the SLV/Inventory rests at 317.07 million oz

May 29/no changes in inventory at the SLV/Inventory rests at 317.07 million oz

June 12/2015:a small addition of 956,000 oz of silver/ inventory at the SLV now rests at 327.874 million oz/ lately silver inventories have been rising at the SLV with a constant price of silver!!

end

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

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 7.6% percent to NAV in usa funds and Negative 7.6% to NAV for Cdn funds!!!!!!!

Percentage of fund in gold 61.8%

Percentage of fund in silver:37.8%

cash .4%

( June 12/2015)

2. Sprott silver fund (PSLV): Premium to NAV falls to -.05%!!!!! NAV (June 12/2015)

3. Sprott gold fund (PHYS): premium to NAV rises to – .34% to NAV(June 12/2015

Note: Sprott silver trust back  into negative territory at -.05%.

Sprott physical gold trust is back into negative territory at -.34%

Central fund of Canada’s is still in jail.

Sprott formally launches its offer for Central Trust gold and Silver Bullion trust:

SII.CN Sprott formally launches previously announced offers to Central GoldTrust (GTU.UT.CN) and Silver Bullion Trust (SBT.UT.CN) unitholders (C$2.64)
Sprott Asset Management has formally commenced its offers to acquire all of the outstanding units of Central GoldTrust and Silver Bullion Trust, respectively, on a NAV to NAV exchange basis.
Note company announced its intent to make the offer on 23-Apr-15 Based on the NAV per unit of Sprott Physical Gold Trust $9.98 and Central GoldTrust $44.36 on 22-May, a unitholder would receive 4.45 Sprott Physical Gold Trust units for each Central GoldTrust unit tendered in the Offer.
Based on the NAV per unit of Sprott Physical Silver Trust $6.66 and Silver Bullion Trust $10.00 on 22-May, a unitholder would receive 1.50 Sprott Physical Silver Trust units for each Silver Bullion Trust unit tendered in the Offer.
* * * * *

end

At 3:30 the CME sends down the COT report which gives position levels of our major players.  They are now giving out purple hearts to those players wishing to take on the criminal bankers;

First the Gold COT

Gold COT Report – Futures
Large Speculators Commercial Total
Long Short Spreading Long Short Long Short
186,813 111,723 33,742 150,277 228,866 370,832 374,331
Change from Prior Reporting Period
-7,486 21,834 944 11,854 -17,707 5,312 5,071
Traders
129 102 71 54 51 220 195
 
Small Speculators  
Long Short Open Interest  
35,237 31,738 406,069  
2,033 2,274 7,345  
non reportable positions Change from the previous reporting period
COT Gold Report – Positions as of Tuesday, June 09, 2015

The bankers fleeced our speculators again.

Our large specs;
Those large specs that have been long in gold pitched 7486 contracts from their long side.

Those large specs that have been short in gold added a monstrous 21,834 contracts to their short side???

Our commercials;

Those commercials that have been long in gold added 11,854 contracts to their long side.

Those commercials that have been short in gold covered a monstrous 17,707 contracts from their short side.

Our small specs;
Those small specs that have been long in gold added 2033 contracts to their long side in total contrast to their larger older brother, the large specs.

Those small specs that have been short in gold added 2274 contracts to their short side, also in total contrast to the large specs.

Conclusion; I am tired of this crap.

And now the Silver COT:

Silver COT Report: Futures
Large Speculators Commercial
Long Short Spreading Long Short
65,881 43,335 24,291 71,347 107,288
2,308 26,607 -640 4,154 -17,474
Traders
96 57 50 46 41
Small Speculators Open Interest Total
Long Short 189,524 Long Short
28,005 14,610 161,519 174,914
5,359 2,688 11,181 5,822 8,493
non reportable positions Positions as of: 167 130
Tuesday, June 09, 2015

 Our large specs; unbelievable!!

Those large specs that have been long silver added 2308 contracts to their long side.

Those large specs that have been short in silver added an unheard of 26,607 contracts to their short side!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Our commercials:

Those commercials that have been long in silver added 4154 contracts to their long side.

Those commercials that have been short in silver, covered a monstrous 17,474 contracts from their short side

Our small specs

Those small specs that have been long in silver added a monstrous 5359 contracts.

Those small specs that have been short in silver added another 2688 contracts to their short side.

Conclusion: an accident waiting to happen.

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)

Cyberwarfare Threat To Nuclear, Banking and Financial System

Legacy of stuxnet is risk posed to technology dependent world
20 countries have launched cyberwarfare programmes since exposure of stuxnet in 2010
Stuxnet virus targeted safety mechanisms in Iran’s nuclear reactors in 2010
Virus launched to sabotage Iran’s nuclear program was also used for mass spying
All types of digital systems at risk, including financial, banking and gold providers
Direct ownership of physical gold, unlike digital currency, not vulnerable to cyber warfare

20 Countries Have Announced Digital Warfare Programs

A new book detailing the development, operation and ramifications of the deployment of the notorious Stuxnet virus shows that it has created a far more risky world.

The book, Countdown to Zero Day, by Wired magazine writer Kim Zetter, shows that – apart from being an extremely irresponsible and dangerous act of sabotage – the deployment of Stuxnet against Iran has led to an acceleration in development of cyberwarfare.

In a must read article in the Irish Times, respected technology journalist, Karlin Lillington reviews the book which presents some fascinating insights into the whole Stuxnet affair which she describes as “the world’s first digital weapon”.

Wired Magazine writer Kim Zetter

Most unnerving is the fact that twenty different countries have announced digital warfare programmes since the exposure of Stuxnet in 2010.

The U.S. had been demanding that other countries refrain from engaging in cyber warfare techniques until it emerged that the U.S. itself, along with Israel, had deployed the extremely destructive virus against Iran. The NSA had been authorised to launch Computer Network Attacks (CNA’s) for over a decade.
Zetter’s book gives a fascinating insight into how the virus operates. It was launched via a USB key rather than via the internet. The developers had identified glitches in Microsoft’s operating systems which were not publicly known and used these flaws against their target.

The virus secretly collected data on the operation of centrifuges in nuclear reactors for thirty days. Then it began interfering with the operation of the centrifuges in such a way that it would damage the reactors while reporting back the data of the previous thirty days so that engineers could not identify any problem.

goldcore_chart7_12-06-15
Normally, Iranian engineers would need to decommission around 800 centrifuges in a year. Stuxnet caused such havoc that they were forced to change 2000 in a two month period.

The virus then spread rapidly into the systems of contractors working in the power stations who unwittingly infected systems all around the world. In all, over 100,000 computers were infected which Zetter says laid the groundwork for a mass espionage program.

Lillington writes

“Zetter says the attackers also failed to eventually kill the code and stop log files in Stuxnet from communicating back to the command and control server, even after it was apparent the worm had spread beyond Iran. She argues this was to keep the backdoors into millions of computers globally that were obtained in this way, which would form the basis for subsequent mass surveillance programmes.”

Zetter believes that the launch of Stuxnet by the U.S. and Israel was particularly foolish because its

“development also meant the US lost moral ground for demanding other countries not use cyberwarfare techniques …  And, inevitably, it launched many more digital warfare programmes across the world.”

She warns that it

“ignores the fact that our systems are just as vulnerable, because U.S. systems are the most connected systems in the world.”

Indeed, our modern western financial and banking system with its massive dependency on single interface websites, servers and the internet faces serious risks that few analysts have yet to appreciate and evaluate.

We previously referred to Russian Prime Minister Medvedev’s allusion to cyber warfare when he stated the Russia’s response to U.S. attempts to have it locked out of the SWIFT system that the Russian response “economically and otherwise – will know no limits.”

Dormant malware, apparently of Russian origin had previously been discovered buried in the software that runs the Nasdaq stock exchange according to Bloomberg.

Given that a military confrontation is not desired by Russia it is likely that cyber-warfare will be part of Russian arsenal in any confrontation with the U.S. and NATO countries.

Hacking is becoming more common and recent months have seen the hacking of Sony Pictures, allegedly by North Korea, and the hacking of Instagram, Tinder and Facebook.

Banks have been hacked, stock exchanges have been hacked and critical infrastructure, including nuclear have been hacked in recent years. It is likely that many of these small scale attacks have been merely testing of  defenses.

Even one of the largest and most powerful banks in the world, JP Morgan has been hacked.
Exactly a year ago, in June 2014, JP Morgan Chase were hacked by unknown parties who stole the personal details of 83 million customers.

A concerted attack on the western financial system would likely include attempts at disabling various exchanges including stock markets and foreign exchange markets. Banks could be attacked in such a way that bank balances, which are merely digital figures, could be erased.

Should banks be hacked and customers deposit accounts compromised then the vista of potential bail ins becomes a real one.

The vulnerability of investment providers, banks and the global banking system – reliant as they have become on single interface websites, servers, computer systems, information technology and the internet – is very slowly being realised.

Academic and independent research and indeed the modern and historical record shows how physical gold is a safe haven asset – provided you have direct ownership of coins and bars and are not dependent on single websites and technology.

An allocation of some of one’s portfolio to physical gold is insurance against technological and systemic risks posed to all virtual wealth today – whether that be digital bitcoin and gold or electronic currencies in deposit accounts.

These risks have never been seen before and are largely unappreciated and ignored by brokers, financial advisors, bankers and the majority of people.

Having all your eggs in a deposit account or with one single investment, or indeed gold broker or storage provider, is no longer prudent.

Must Read Guide:  7 Key Gold Must Haves


MARKET UPDATE

Today’s AM LBMA Gold Price was USD 1,179.25, EUR 1,055.68 and GBP 761.27 per ounce.
Yesterday’s AM LBMA Gold Price was USD 1,180.50, EUR 1,049.19 and GBP 763.51 per ounce.

Gold fell $4.70 or 0.4 percent yesterday to $1,181.50 an ounce. Silver climbed $0.01 or 0.06 percent to $16.04 an ounce. Gold is on track for a 1% gain in dollar terms, is flat in euro terms and is lower in sterling terms.

Gold in USD - 1 Week

 Gold in Singapore for immediate delivery was steady at at $1,183.03 an ounce near the end of the day,  while gold bullion in Switzerland was again marginally lower.

 Even though gold declined yesterday on the back of positive U.S. retail figures, it is still on track for a 1 percent weekly gain due to a weaker U.S. dollar.

 Gold is not seeing a boost from safe haven buyers due to the Greek financial crisis, which may or may not include an exit from the euro. European Commission President Jean Claude Juncker said today that stalled debt talks between Athens and its creditors would restart but put the ball firmly in the Greek government’s court to come up with an acceptable deal.

The question is whether this is due to quite poor sentiment in the gold market or are banks that have been found rigging most markets, manipulating the gold market?

Gold in Euros -  1 Week

 Poor sentiment towards gold is seen in liquidations of the gold ETF’s such as the SPDR Gold Trust, the world’s largest. It  has seen its holdings fall again this week to the lowest levels since 2008.

With sentiment poor and prices depressed or suppressed, depending on your point of view, gold looks gold value at these levels and is over due a bounce. The possibility of a Greek financial debacle should support gold and potentially push it higher before the important June end deadline.

The psychological price level of round number $1,200 per ounce will offer resistance but should gold rise above it, we would expect a move to $1,250 in short order.