July 10/Greece submits reform plan/almost identical to plan initiated by the Euro group/D Day will probably be tomorrow/The Germans will not be happy to finance another bailout for Greece/Silver rises for the 3rd day in a row/silver open interest falls as bankers run for cover/Steve St Angelo discovers huge amounts of silver being picked up by major players (i.e. importing the silver into the USA)

Good evening Ladies and Gentlemen:

 

Here are the following closes for gold and silver today:

Gold:  $1157.70 down $5.20  (comex closing time)

Silver $15.47 up 12 cents.

 

In the access market 5:15 pm

Gold $1163.40

Silver: $15.58

 

First, here is an outline of what will be discussed tonight:

At the gold comex today, we had a poor delivery day, registering 2 notices for 200 ounces . Silver saw 178 notices filed for 890,000 oz.

Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 248.17 tonnes for a loss of 55 tonnes over that period.

In silver, the open interest fell by a considerable 2928 contracts despite the fact that Thursday’s price was up by 20 cents.  The total silver OI continues to remain extremely high, with today’s reading at 188,723 contracts now at decade highs despite a record low price.  In ounces, the OI is represented by .943 billion oz or 139% 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. Today again, we had banker shortcovering.

In silver we had 178 notices served upon for 890,000 oz.

In gold, the total comex gold OI rests tonight at 448,820 for a loss of 4678 contracts as gold was down 40 cents yesterday. We had 2 notices filed for 200 oz  today.

We had a huge withdrawal in tonnage at the gold inventory at the GLD to the tune of 2.07 tonnes; thus the inventory rests tonight at 707.58 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. I am sure that 700 tonnes is the rock bottom inventory in gold.  Anything below this level is just paper and the bankers know that they cannot retrieve “paper gold” to send it onwards to China . In silver, we had no change in inventory at the SLV / Inventory now rests at 326.542 million oz.

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

1. Today, we had the open interest in silver fall by 2938 contracts to 188,723 despite the fact that silver was up by 20 cents yesterday. We must have had considerable shortcovering by the bankers as they feared something was brewing in the silver arena. The OI for gold fell by another 4678 contracts down to 448,870 contracts as the price of gold was down by 40 cents yesterday.

(report Harvey)

2.  COT report

(Harvey)

 

3 Today, 10 important commentaries on Greece

 

(zero hedge, Bloomberg/Meijer/Reuters/)

 

4. Three commentaries on the crisis in the stock market in China

(zero hedge/David Stockman)

4.USA data tonight;poor retail sales number/Poor General Motors sales in China/Inventory/sales ratio signifies recession is upon us

(3 commentaries/zero hedge/Dave Kranzler/IRD)

 

5. Gold trading overnight

(Goldcore/Mark O’Byrne/)

6. Trading from Asia and Europe overnight

(zero hedge)

7. Trading of equities/ New York

(zero hedge)

8.  Steve St Angelo comments on huge players buying and storing physical silver and he has the data to prove it

(Steve St Angelo/SRSRocco report)

9.  Our weekly wrap with Greg Hunter of USAWatchdog

*(Greg Hunter)

plus other important topics….

 

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 4,678 contracts from 453,498 down to 448.870 as gold was down 40 cents in price yesterday (at the comex close).  We are now in the next contract month of July and here the OI surprisingly rose by 3 contracts to 149 contracts. We had 0 notices filed yesterday and thus we gained 3 contracts or an additional 300 ounces will stand in this non active delivery month of July. The next big delivery month is August and here the OI fell by 11,406 contracts down to 358,881 as the players start to roll into October or December. The estimated volume today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was poor at 111,484. The confirmed volume yesterday (which includes the volume during regular business hours + access market sales the previous day was poor at 152,012 contracts. Today we had 2 notices filed for 200 oz.

And now for the wild silver comex results. Silver OI fell by a huge 2,938 contracts from 191,661 down to 188,723 despite the fact that the price of silver was up by 20 cents in price with respect to yesterday’s trading. We continue to have our bankers pulling their hair out with respect to the continued high silver OI as today we have in all probability a huge shortcovering by the bankers as they sensed something was brewing in the silver arena. The next delivery month is July and here the OI fell by 52 contracts down to 571. We had 38 notices served upon yesterday and thus we lost 14 contracts or an additional 70,000 ounces of silver will not stand for delivery in this active month of July. This is the first time in quite some time that we have not lost any silver ounces standing immediately after first day notice. The August contract month saw it’s OI fall by 39 contracts down to 130. The next major active delivery month is September and here the OI fall by 1,997  contracts to 129,420. The estimated volume today was poor at 2,019 contracts (just comex sales during regular business hours). The confirmed volume yesterday (regular plus access market) came in at 52,657 contracts which is very good in volume.  We had 178 notices filed for 890,000 oz

 

July initial standing

July 10.2015

Gold

Ounces

Withdrawals from Dealers Inventory in oz    nil
Withdrawals from Customer Inventory in oz 1961.15 (61 kilobars)Delaware,Manfra
Deposits to the Dealer Inventory in oz nil
Deposits to the Customer Inventory, in oz 1,611.98 oz (Brinks)
No of oz served (contracts) today 2 contracts (200 oz)
No of oz to be served (notices) 147 contracts 14,700 oz
Total monthly oz gold served (contracts) so far this month 412 contracts(41,200 oz)
Total accumulative withdrawals  of gold from the Dealers inventory this month   nil oz
Total accumulative withdrawal of gold from the Customer inventory this month 82,448.5   oz

 

 

Today, we had 0 dealer transactions

 

we had zero dealer withdrawals

total Dealer withdrawals: nil  oz

we had 0 dealer deposits

 

total dealer deposit: zero
we had 2 customer withdrawals

i) Out of Manfra; 64.30 oz (2 kilobars)

ii) out of JPMorgan 1896.85 oz  (59 kilobars??)

 

 

total customer withdrawal: 1961.15 oz  (61 kilobars)

We had 0 customer deposits:

 

Total customer deposit: 0 ounces

We had 1 adjustment.

i) Out of JPMorgan:  10,125.946 oz was adjusted out of the dealer and this landed into the customer of JPMorgan.

 

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 2 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 July contract month, we take the total number of notices filed so far for the month (412) x 100 oz  or 41,200 oz , to which we add the difference between the open interest for the front month of July (149) and the number of notices served upon today (2) x 100 oz equals the number of ounces standing.

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

No of notices served so far (412) x 100 oz  or ounces + {OI for the front month (149) – the number of  notices served upon today (2) x 100 oz which equals 55,900  oz standing so far in this month of July (1.738 tonnes of gold).

 

we gained an additional 300 oz of gold standing in this non active delivery month of July. somebody was badly in need of physical gold today.

Total dealer inventory 483,078.788 or 15.025 tonnes

Total gold inventory (dealer and customer) = 7,978,931.428 oz  or 248.17 tonnes

Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 248.17 tonnes for a loss of 55 tonnes over that period.

 

 

end

And now for silver

July silver initial standings

July 10 2015:

Silver

Ounces

Withdrawals from Dealers Inventory nil
Withdrawals from Customer Inventory 684,141.660  oz (CNT,Scotia,Delaware)
Deposits to the Dealer Inventory  nil
Deposits to the Customer Inventory  1078.657 oz (Delaware)
No of oz served (contracts) 178 contracts  (890,000 oz)
No of oz to be served (notices) 393 contracts (1,965,000 oz)
Total monthly oz silver served (contracts) 2923 contracts (14,615,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month nil
Total accumulative withdrawal  of silver from the Customer inventory this month 3,489,448.1 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 deposit: nil  oz

 

We had 3 customer withdrawals:

i) Out of CNT: 52,256.04 oz

ii) Out of Scotia: 629,962.300 oz

iii) Out of Delaware:  1923.32 oz

 

 

total withdrawals from customer:  684,141.660   oz

 

we had 1  adjustment

i) Out of CNT:

we had 981.82 oz of silver leave the customer at CNT as an accounting error.

 

Total dealer inventory: 58.96 million oz

Total of all silver inventory (dealer and customer) 180.879 million oz

The total number of notices filed today for the July contract month is represented by 178 contracts for 890,000 oz. To calculate the number of silver ounces that will stand for delivery in July, we take the total number of notices filed for the month so far at (2923) x 5,000 oz  = 14,615,000 oz to which we add the difference between the open interest for the front month of July (571) and the number of notices served upon today (178) x 5000 oz equals the number of ounces standing.

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

2973 (notices served so far) + { OI for front month of July (571) -number of notices served upon today (178} x 5000 oz ,= 16,580,000 oz of silver standing for the July contract month.

We lost  70,000 ounces standing in this active delivery month of July. Somebody, again, was in great need of physical silver today.

 

for those wishing to see the rest of data today see:

http://www.harveyorgan.wordpress.comorhttp://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:

July 10/ we had a big withdrawal of 2.07 tonnes of gold from the GLD/Inventory rests this weekend at 707.58 tonnes

July 9/ no change in gold inventory at the GLD/Inventory at 709.65 tonnes

July 8/no change in gold inventory at the GLD/Inventory at 709.65 tonnes

July 7/ no change in gold inventory at the GLD/Inventory at 709.65 tonnes

July 6/no change in gold inventory at the GLD/Inventory at 709.65 tonnes

July 2/we had a huge withdrawal of inventory to the tune of 1.79 tonnes/rests tonight at 709.65 tonnes

July 1.2015; no change in inventory/rests tonight at 711.44 tonnes

June 30/no change in inventory/rests tonight at 711.44 tonnes

June 29/no change in inventory/rests tonight at 711.44 tonnes

June 26./it did not take our bankers long to raid the GLD. Yesterday they added 6.86 tonnes and today, 1.75 tonnes of that was withdrawn/Inventory tonight rests at 711.44 tonnes.

June 25/a huge addition of 6.86 tones of  inventory at the GLD/Inventory rests tonight at 713..23 tonnes

June 24/ a good addition of.900 tonnes of gold into the GLD/Inventory rests at 706.37 tonnes

June 23/no change in gold inventory/rests tonight at 705.47 tonnes

June 22/ a huge increase of 3.27 tonnes of gold into GLD/Inventory tonight: 705.47 tonnes

 

 

 

July 10 GLD : 707.58 tonnes

 

end

 

And now for silver (SLV)

july 10/no change in silver inventory at the SLV tonight/inventory 326.542 million oz/

July 9/ a huge increase in inventory at the SLV of 1.337 million oz. Inventory rests tonight at 326.542 million oz

July 8/no change in inventory at the SLV/rests at 325.205

July 7/no change in inventory at the SLV/rests at 325.205 tonnes

July 6/we have a slight inventory withdrawal which no doubt paid fees. we lost 137,000 oz/Inventory rests tonight at 325.205 million oz

July 2/ no change in inventory at the SLV/rests tonight at 325.342 million oz

July 1/ we had an addition of 1,624,000 oz into the SLV inventory/rests tonight at 325.342 million oz

June 30/we lost another 621,000 oz of silver from the SLV/Inventory rests at 323.718 oz (somebody must be in great need of physical silver)

June 29/ a monstrous loss of 4.777 million oz of silver from the SLV/Inventory rests tonight at 324.339 million oz

June 26/today we had another addition of 198,000 of silver/Inventory rests at 329.116 million oz

June 25/ a huge increase of 1.242 million oz of silver into the SLV inventory/Inventory rests at 128.918 million oz

June 24/no change in inventory/rests tonight at 326.918 million oz

June 23/we had a small withdrawal of 956,000 oz/Inventory tonight rests at 326.918 million oz

 

July 10/2015:  tonight inventory rests at 326.542 million oz

 

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 9.1 percent to NAV usa funds and Negative 9.4% to NAV for Cdn funds!!!!!!!

Percentage of fund in gold 62.3%

Percentage of fund in silver:37.4%

cash .3%

( July 10/2015)

2. Sprott silver fund (PSLV): Premium to NAV rises to 1.91%!!!! NAV (July 10/2015) (silver must be in short supply)

3. Sprott gold fund (PHYS): premium to NAV rises to – .74% toNAV(July 10/2015

Note: Sprott silver trust back  into positive territory at +1.91%

Sprott physical gold trust is back into negative territory at -.74%

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 CentralGoldTrust (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 releases the COT report which provides for us position levels of our major players.

Let us head over to the gold COT and see what we can glean from it;

Gold COT Report – Futures
Large Speculators Commercial Total
Long Short Spreading Long Short Long Short
193,776 143,328 48,006 172,552 225,141 414,334 416,475
Change from Prior Reporting Period
-700 16,007 1,837 8,755 -13,425 9,892 4,419
Traders
141 102 81 59 50 236 206
 
Small Speculators  
Long Short Open Interest  
37,811 35,670 452,145  
-48 5,425 9,844  
non reportable positions Change from the previous reporting period
COT Gold Report – Positions as of Tuesday, July 07, 2015

Our Large Specs:

Those large specs that have been long in gold covered a tiny 700 contracts from their long side.

Those large specs that have been short in gold added a whopping 16,007 contracts to their short side and this is an accident waiting to happen.

Our commercials:

Those commercials that have been long in gold added a monstrous 8755 contracts to their long side.

Those commercials that have been short in gold covered a huge 13,425 contracts from their short side.

Our small specs;

Those small specs that have been long in gold pitched a tiny 48 contracts from their long side.

Those small specs that have been short in gold added a huge (for them) 5425 contracts to their short side.

Conclusions;  criminal activity orchestrated by the bankers.  They go net long by  a huge 22,180 contracts.(generally bullish)

And now for our Silver COT:

Silver COT Report: Futures
Large Speculators Commercial
Long Short Spreading Long Short
70,786 63,993 23,008 78,158 92,477
-1,100 1,988 448 1,912 -4,929
Traders
106 49 40 50 38
Small Speculators Open Interest Total
Long Short 197,092 Long Short
25,140 17,614 171,952 179,478
-892 2,861 368 1,260 -2,493
non reportable positions Positions as of: 174 114
Tuesday, July 07, 2015

 Our large specs:

Those large specs that have been long in silver pitched another 1100 contracts from their long side.

Those commercials that have been short in silver added 1988 contracts to their short side.

Our commercials;
Those commercials that have been long in silver added 1912 contracts to their long side.

Those commercials that have been short in silver covered a whopping 4929 contracts from their short side.

Our small specs:

Those small specs that have been long in silver added 892 contracts to their long side.

Those small specs that have been short in silver added 2861 contracts to their short side.

Conclusion:  same as gold/the commercials go net long by 6841 contracts.

end

And now overnight trading in gold/silver from  Europe and Asia/plus physical stories that might interest you:

 

First:  Goldcore’s Mark O’Byrne

 

(courtesy Goldcore/Mark O’Byrne)

Bail-Ins Coming – GoldCore Interviewed By Financial Repression Authority

– Governments move toward ever greater financial repression
– Repression includes suppression of rates, capital controls, outlawing of cash and bail-ins
– Finance ministers discuss cashless society, giving banks total control over public’s money
– Bail-in legislation is at advanced stage internationally
– Bail-ins coming to indebted western nations – question is when …
– Legislation is devised to protect larger banks
– Ramifications of bail-ins have not been thought through
– Bail-ins will be destructive and may contribute to deflationary collapse
– Diversification both in asset classes and geographical diversification essential

goldcore_chart1_10-07-15
Goldcore’s Director of Research Mark O’ Byrne joined Gordon T Long of Financial Repression Authority for an in depth discussion on the deepening financial repression in the world today, with particular focus on bail-ins.

Mark identified a number of elements which he believes amount to financial repression including the suppression of interest rates using QE, capital controls, the move towards a cashless society and most importantly – bail-ins.

He points out that bail-in legislation, while under reported in the mainstream media, is actually at a very advanced stage. He quotes from the Bank of England’s former Deputy Governor, Paul Tucker, who following a meeting between the Bank of England and the Federal Deposit Insurance Corporation (FDIC) in October, 2013 said:

“U.S. authorities could do it today — and I mean today … ”  

Bail-in is the confiscation of bank deposits of savers and businesses which were formerly viewed as sacrosanct in the event of a bank failure. The deposits of “widows and orphans”  are now at risk and treated akin to bondholders.

bails-ins-infographic-goldcore
The Fed’s Stanley Fischer has said that the U.S. was preparing such legislation – after Tucker had indicated that such legislation was in place.

The EU is also at an advanced stage in forcing countries to ratify bail-in legislation. The legislation is being devised to protect the larger banks against the interest of both depositors, taxpayers and the wider economy.

The various “state guarantees” for deposits or deposit insurance – generally a big round figure of €100,000 in most EU states and £75,000 in the UK)  is purely arbitrary and can be adjusted lower with the stroke of a pen lulling the public into a false sense of security.

goldcore_chart2_10-07-15

The ramifications of bail-ins have not been thought through. With central banks taking unprecedented measures to fight deflation, Mark points out that bail-ins would create “deflation like you would not believe” by taking a large portion of cash out of the system and with further consequences for future spending and investment, consumer confidence, trade, commerce and all our economies.

Gordon points out the EU finance ministers in Dresden recently discussed moving quickly to a cashless society which would give the banks total control over the money of the public.

They could charge for “services” arbitrarily and the public would be unable to protect itself from bail-ins and reckless bank activity.

View Interview Here


Must Read Bail-In Guides:

From Bail-Outs To Bail-Ins: Risks And Ramifications

Protecting Your Savings In The Coming Bail-In Era

MARKET UPDATE

Today’s AM LBMA Gold Price was USD 1,162.40, EUR 1,041.20 and GBP 750.30 per ounce.
Yesterday’s AM LBMA Gold Price was USD 1,162.10, EUR 1,053.96 and GBP 755.37 per ounce.

Gold climbed $2.60 or 0.22 percent yesterday to $1,161.40 an ounce. Silver rose $0.32 or 2.11 percent to $15.46 an ounce.

Gold in USD - 1 Week

Both gold and silver are lower in major currencies for the week but have recovered tentatively from the latest bout of intense selling on the futures market on Tuesday which again led to sharp price falls despite robust physical demand.

Gold bullion in Singapore for immediate delivery was up 0.3 percent at $1,162.71 an ounce near the end of the day,  while gold in Switzerland was essentially flat.

The Greek government sent reform proposals to its eurozone creditors last evening in an effort to secure new funds to avoid bankruptcy and will seek a parliamentary vote on Friday to endorse immediate actions. European stocks have risen sharply on hopes for a resolution or at least some form of reprieve and another exercise in “extend and pretend.”

Gold in GBP - 1 Week

Chinese stocks rose again today after ministry officials try to stop the 30 percent market drop from mid-June, by banning shareholders with large stakes in listed firms from selling. Asian stocks were buoyant on Chinese gains.

The financial repression in China will not end well and may lead to an even greater bubble – followed by an even greater crash.

Other economic news has been poor with the IMF cutting global growth forecasts and U.S. jobs data poor and this has supported gold today.

The IMF cut its global economic growth forecast this year to 3.3 percent from  3.5 percent, citing recent weakness in the United States which also supported the yellow metal.

New applications for U.S. unemployment insurance benefits rose last week to their highest level since February, suggesting a slowdown in the labour market. Initial claims for state unemployment benefits rose 15,000 to a seasonally adjusted 297,000 for the week that ended July 4, the U.S. Department of Labor said on Thursday.

The U.S. and indeed global ‘recovery’ remains on tentative grounds at best.

Members of the Chinese Gold & Silver Exchange Society (CGSE) in Hong Kong began trade on the Shanghai Gold Exchange (SGE) directly on today, expanding ways to access to one of the world’s fast-growing bullion markets, China.

The CGSE members can now trade the Shanghai gold in Hong Kong through the CGSE’s membership in the Shanghai Gold Exchange, a CGSE spokeswoman said today.

Gold in EUR - 1 Week

London’s role in the benchmark gold fix will be challenged by China’s Shanghai Gold Exchange (SGE) who reported last month it will launch a yuan-denominated gold fix by the end of 2015.

China is the world’s largest producer and buyer of gold bullion, making China’s dominance of the gold market a foregone conclusion.

 In late morning European trading gold is up 0.50 percent at $1,164.56 an ounce. Silver is up 0.45 percent at $15.60 an ounce, and platinum is up 1.47 percent at $1,035.00 an ounce.

Breaking News and Research Here

 

end

Steve St Angelo delivers a huge paper on silver where he proves that a few major buyers are continuing to hoard physical silver.

He is very accurate in his calculations.

(courtesy Steve St Angelo/SRSRocco report)

Major Buyers Continue To Stockpile Silver As U.S. Silver Imports Surge In April

By SRSrocco on July 10, 2015 s, large U.S. buyers continue to stockpile silver. How do I know this? Well, according to the most recently released USGS data, U.S. silver imports surged even higher in April. How much? Let’s look at the chart below:

As we can see, U.S. silver imports surged to 531 metric tons (mt) in April,(17.7 million oz) up from 459 mt in March. Total U.S. silver imports in the first four months of the year are up a stunning 505 metric tons (2,035 mt) compared to the same period last year (1,530 mt).

(Harvey:  2035 metric tonnes equals 65.4 million oz)

As I mentioned in my previous article, Why Is The U.S. Importing So Much Silver?:

Well, if we look at the three major market indicators below, we can certainly see, they don’t justify an increase in silver bullion demand:

1) U.S. Industrial silver consumption continues to decline

2) U.S. Silver Eagle sales were flat year-over-year.

3) Comex silver inventories Jan-Feb net build was only 1.3 Moz

According to the recently released 2015 World Silver Survey, U.S. industrial silver fabrication continued to fall in 2014. Total U.S. silver fabrication declined from 138 Moz in 2011, to 132.7 Moz in 2012, 127.4 Moz in 2013, and down again in 2014 to 125.4 Moz. So, if the U.S. Q1 2015 GDP growth was only 0.2%, I would imagine U.S. industrial silver consumption also declined.

Now, if we look at the change in U.S. Silver Eagle sales… this doesn’t help us either. The U.S. Mint sold a total of 8.5 million Silver Eagles in the first two months of 2014 and 2015. As we can plainly see, no need for more silver at the U.S. Mint.

The data above was just for the first two months of the year, but nothing really changed in U.S. silver demand during March or April to account for 33% more silver imports. If this trend continues, the U.S. will import over 6,000 mt of silver in 2015.

Why is this amount significant? Because U.S. annual silver imports ranged between 3,500-5,300 mt from 2009 to 2014, except for the surge in 2011 of 6,400 mt. U.S. silver imports were high in 2011 due to higher industrial silver demand as well as record physical silver investment (due to silver reaching a high of $49 in May that year).

However, industrial silver consumption in the U.S. is lower this year compared to 2011 and overall physical silver investment demand is less than it was during the same period last year when Jan-Apr U.S. silver imports were only 1,530 mt vs the 2,035 mt so far this year.

Which means, some large buyers must be acquiring a great deal of silver on the HUSH-HUSH. There has been speculation that JP Morgan is one of the big buyers. If they are, they are buying SILVER BARS, not Silver Eagles or Maples. I know this as my contacts in the industry tell me that none of the Authorized Dealers that they do business with have heard anything that would lead them to believe that JP Morgan is buying large lots of Silver Eagles or Maples.

So where is all this silver coming from that the U.S. is importing? Let’s look at the chart below:

Mexico and Canada accounted for 78% of the total (413 mt) in April. The U.S. imported a staggering 233 mt of silver from Mexico and 180 mt from Canada. Interestingly, the U.S. imported 36 mt of silver from South Korea and 18.5 mt from Poland. Of we go back several years, these two countries did not export any silver to the United States. They are recent sources of U.S. silver imports. The remaining silver imports were from the typical Central and South American countries.

While this information is from a few months ago, I would imagine U.S. silver imports will probably remain elevated or increase in June and July due to the financial turmoil stemming from the Greek “No” vote. I will post updates when the new data is released by the USGS.

-END-

Mike Kosares: The Shanghai stock crash and China gold demand

Section:

1:20p ET Friday, July 10, 2015

Dear Friend of GATA and Gold:

China’s stock-market crash likely will encourage Chinese investors to consider the capital-preservation virtues of gold, Mike Kosares of USAGold in Denver writes today, especially since the Chinese government has been encouraging gold ownership and building market mechanisms to facilitate it. Kosares’ commentary is headlined “The Shanghai Stock Crash and China Gold Demand” and it’s posted at USAGold here:

http://www.usagold.com/publications/NewsViewsJuly2015SpecialReport.html

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

end

China wants to steal gold market ‘reins’ from New York and London

Section:

By Myra P. Saefong
MarketWatch.com
Friday, July 10, 2015

China has been making it very clear that it wants more control over the global gold market, but it’ll have to go through New York and London first.

“Given that China is the epicenter of the physical gold market, it does make sense that the Chinese government would want its physical Shanghai gold market to supplant the Comex derivative market (and others) as the primary global price-setting mechanism,” said Anthem Blanchard, chief executive officer of online precious-metal retailer Anthem Vault.

China is, after all, the world’s largest producer and one of the biggest buyers of the metal, often running neck and neck with India as the globe’s top consumer. …

… For the remainder of the report:

http://www.marketwatch.com/story/china-wants-to-steal-gold-market-reins-

end

And now your overnight trading in bourses, currencies, and interest rates from Europe and Asia:

 

1 Chinese yuan vs USA dollar/yuan weakens to 6.2092/Shanghai bourse green and Hang Sang: green

2 Nikkei closed down by 75.67  points or 0.38%

3. Europe stocks all in the green /USA dollar index up to 95.63/Euro up to 1.1189

3b Japan 10 year bond yield: falls to  44% !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 122.34

3c Nikkei still just below 20,000

3d USA/Yen rate now just above the 122 barrier this morning

3e WTI 53.21 and Brent:  59.17

3f Gold up /Yen down

3gJapan is to buy the equivalent of 108 billion uSA dollars worth of bond per month or $1.3 trillion. Japan’s GDP equals 5 trillion usa.

Japan to buy 100% of all new Japanese debt and by 2018 they will have 25% of all Japanese debt. Fifty percent of Japanese budget financed with debt.

3h Oil up for WTI and up for Brent this morning

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10 yr bund rises to .80 per cent. German bunds in negative yields from 4 years out.

Except Greece which sees its 2 year rate fall to 34.38%/Greek stocks this morning: stock exchange closed again/ still expect continual bank runs on Greek banks /Greek default to the IMF in full force/

3j Greek 10 year bond yield falls to: 14.02%

3k Gold at 1163.50 dollars/silver $15.46

3l USA vs Russian rouble; (Russian rouble up 7/10 in  roubles/dollar in value) 56.56,

3m oil into the 53 dollar handle for WTI and 59 handle for Brent/Saudi Arabia increases production to drive out competition.

3n Higher foreign deposits out of China sees huge risk of outflows and a currency depreciation. This can spell financial disaster for the rest of the world/China may be forced to do QE!!

30 SNB (Swiss National Bank) still intervening again in the markets driving down the SF. It is not working: USA/SF this morning .9363 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0473 well below the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

3p Britain’s serious fraud squad investigating the Bank of England/

3r the 4 year German bund remains in negative territory with the 10 year moving further away from negativity at +.80%

3s The ELA is frozen now at 88.6 billion euros.  The bank withdrawals were causing massive hardship to the Greek bank. the Greek referendum voted overwhelming “NO”. We await the German response to the latest deal

4. USA 10 year treasury bond at 2.36% early this morning. Thirty year rate above 3% at 3.16% / yield curve flatten/foreshadowing recession.

5. Details Ransquawk, Bloomberg, Deutsche bank/Jim Reid.

 

(courtesy Jim Reid/Bloomberg/Deutsche bank/zero hedge)

 

Groundhog Day All Over Again: Futures Surge On “Greek Hope”, China Stock Manipulation

It’s officially Groundhog day… and month… and year… and so on.

After futures soared yesterday morning following the Chinese government’s halt of the local stock bloodbath, only to fade the euphoria late in the day on Greek concerns and the realization that threatening Chinese sellers with arrest…

 

outlawing short selling, while keeping half your stocks frozen (those which would be otherwise sold) and implementing nearly 20 different official measures to halt the market plunge...

 

is hardly a basis for bullish sentiment, this morning we again wake up to futures surging about 1% higher, with HFTs taking out all the stops overnight, and with even more Chinese intervention as the local police instead of just threatening have actually started cracking down on sellers and “rumor spreaders.”

As a result, after brief early weakness, the Chinese market soared out of the gate rising above 5% before seeing some late session selling to close up 4.5%, up 10% in the past two days, the biggest 2-day surge in Chinese stocks since 2008.

Still, even as half the Chinese stock market has rebounded strongly the other half remains stuck in time at days-old prices, leading some to invoke jokes about a Schrodingerian market: is China up or frozen? It depends which half you look at. Of the roughly 2,800 stocks listed on the Shanghai and Shenzhen markets, half were suspended from trading as of Friday morning. On the ChiNext, a Nasdaq-like board of small-cap stocks, the count was 205 trading, 279 suspended.

Of course, what the suspended companies are waiting for is simple: a return of the market euphoria – with the market rising, more than 60 companies said their trading would resume Friday. As the WSJ reports, they may have been hoping to replicate the experience of the likes of Hangzhou Iron & Steel Co., Zhejiang Huahai Pharmaceutical Co. and Leshi Internet Information & Technology Corp. Beijing, all of which resumed trading on Thursday – and all of which saw their shares rise by the daily maximum 10% within 30 minutes. Because when it comes to making the same mistake over and over again, the Chinese have zero learning capacity.

But the key catalyst so far for US equity futures appears to be Greece, which as we reported last night submitted a proposal to the Eurogroup, one which is virtually a replica of the European proposal from June 26, subsequently rejected by over 60% of the Greek population on July 5. Now, 5 days later, the Greek parliament will vote on this proposal (which has no request for a debt haircut, and which makes a lot of promises and no actual spending cuts) even as the “Oxi” vote supporters meet in front of parliament for a previously scheduled demonstration.

One wonders what the mood will be among the nearly two-thirds of the Greek population once it realizes it has been sold down the river by its government once again, and this time with a referendum vote to back it. Surely the release of some €120 billion in deposits, if only briefly, from the hostage clutches of the ECB will ease the pain, although don’t hope the Greek bank run will go away even if the ECB boosts Greek ELA. Having seen what happens to their deposits in the worst case, no Greek in their right mind will keep their money in the bank ever again.

Another problem for Tsipras will be his own party: he appealed to his party’s lawmakers on Friday to back a tough reforms package after abruptly offering last-minute concessions to try to save the country from financial meltdown. After walking into a party meeting to applause, Tsipras rallied his Syriza lawmakers to throw their weight behind the new proposals ahead of a snap vote in parliament on the negotiations, urging them to help keep Greece in the euro. Cited by Reuters, Tsipras said that “we are confronted with crucial decisions.” Which was also the case two weeks ago when Tsipras called the referendum he had hoped to lose.

“We got a mandate to bring a better deal than the ultimatum that the Eurogroup gave us, but certainly not given a mandate to take Greece out of the eurozone, he said. “We are all in this together.”

As of this moment it is unclear whether all the creditors would back the latest reforms package, which was “strikingly similar” to the terms Greece had rejected in a referendum that Tsipras had called in June. Finance ministers of the 19-nation euro area will meet on Saturday to decide whether to recommend opening negotiations on a third bailout program for Athens despite widespread exasperation at the five-year-old Greek debt crisis. Worse, any new deal would also have to be endorsed by national parliaments including in Germany.

Has Germany finally had enough may be the question. For now the market’s answer is no, judging by the surge, but this won’t be the first (or second, or hundredth) time that the algos have been fooled by the endless game between Greece and Germany, now in its fifth year, that the former is solvent, and that the latter still has a European monetary union to look for in the future. Both have now been revealed as utter shams.

So expect many more “Greek hope” headlines, rumors, and denials all day as is now the norm, and into the weekend, another weekend ruined by the Greek fiasco, with the Eurogroup meeting at 9am Eastern followed by the Summit of 28 European Union nations on Sunday.

* * *

A closer look at stock markets reveals that Asian equities rose as sentiment was bolstered after Greece submitted proposals similar to reforms sent by its EU creditors last month . Chinese stocks continued their recovery with the Shanghai Comp (+4.5%) sees its largest 2-day gaining streak since 2008 as aggressive measures supported the nations markets . Nikkei 225 (-0.4% ) was weighed on by weakness in index giant Fast Retailing, however the index pared losses amid an optimistic tone in Asia and continued recovery in Chinese stocks. Finally, JGBs fell amid spill over selling in USTs, although pulled off worse levels BoJ conducted its large bond purchase program.

In Europe, equities (Euro Stoxx: +2.9%) have spent the morning firmly in the green amid hope of a Greek deal, seeing financials outperform. Elsewhere, energy names have underperformed their counterparts, which comes in tandem with a move lower in the energy complex this morning after the !EA forecast that oil may see a further drop in price prior to a slowdown in supply growth forecast for 2016.

Fixed income markets have taken a leg lower this morning amid the aforementioned hope of a Greek proposal, with Bund Sep’15 futures lower by over 90 ticks. Today has been touted as an opportune time to come to market for US corporate issuance as T-Notes trend lower and with the key Greek risk event occuring over the weekend, Fed’s Yellen due to speak later in the day and Chinese equities ending their session in positive territory. Fixed income markets have recently seen a backlog in corporate issuance as many choose to hold off due to risk-off sentiment amid the current spate of risk events.

After a couple of days out of the limelight while Chinese equities took center stage, Greece as now back firmly in focus this morning after submitting their written proposals to creditors overnight. The Greek proposals are reportedly very similar to the offer they received on June 26th, which was later voted on and rejected by the public, with this suggesting that the offer may be seen as more acceptable to creditors than previous negotiations from Greece as France’s EU Affairs Minister stated that the newly submitted proposals from Greece are ‘credible and serious.’

Of note EU’s Dijsselbloem has said that an outcome of the Greek proposal may be presented today and EU sources have said that IMF’s Lafarge, EU’s Juncker, ECB’s Draghi and Eurogroup Dijsselbloem are to have a meeting on Greece at 1200BST/0600CDT

This has seen sentiment bolstered, with EUR/USD retaking the 1.1100 handle to the upside to reside firmly in the green (+122 pips), while JPY has continued to weak today as risk-on sentiment returns to the market . As such, USD/JPY is now firmly above the 6 week lows seen earlier in the week as the pair resides above the 122.00 handle (+83 pips). Despite USD/JPY strength, the USD index resides in negative territory (-0.6%) weighed on by the aforementioned EUR strength. Meanwhile, GBP/USD (+116 pips) is also stronger in tandem with the EUR as large hedge funds are said to be on the bid in the pair.

The metals complex sees gold head into the weekend firmly above its 4 month lows after the greenback weakened overnight as the continued recovery of Chinese stocks lift sentiment in the Asia-Pacific region.

Elsewhere, copper trades higher amid a softer USD and mainland China posting its largest 2 day intraday climb since 2008, while Dalian iron ore futures trades higher but is on course for the largest weekly drop since 2013 of 11%, following the oversupply of the industrial mineral. In the energy complex, the aforementioned IEA forecast has seen both WTI and Brent crude futures come off their earlier highs, to trade in modest positive territory after bolstered Chinese sentiment saw strength in the commodities overnight.

Looking ahead, this afternoon sees Canadian unemployment rate, US crop report and comments from Fed’s Rosengren and Yellen.

Bulletin Headline Summary From Bloomberg and RanSquawk

  • Greece hand over proposals to creditors, leading to positive sentiment and gains across the board in European equities as well as strength in EUR.
  • Shanghai Comp sees its largest 2-day gaining streak since 2008 as aggressive measures supported the index.
  • Looking ahead, this afternoon sees Canadian unemployment rate, US crop report and comments from Fed’s Rosengr