August 6/Atlanta fed states that 3rd Quarter GDP will be only 1%/Silver production from major mines fell off a cliff these past few months/Huge increase in NPL’s in China/Brazil also fell off a cliff as their bonds and currency crash/Huge layoffs reported by Challenger,Christmas,Gray/

Good evening Ladies and Gentlemen:

Here are the following closes for gold and silver today:

Gold:  $1090.20 up $4.50   (comex closing time)

Silver $14.67 up 12 cents.

 

In the access market 5:15 pm

Gold $1090.00

Silver:  $14.67

 

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

 

At the gold comex today, we had a poor delivery day, registering 8 notices for 800 ounces  Silver saw 27 notices for 135,000 oz

Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 235.44 tonnes for a loss of 67 tonnes over that period.

In silver, the open interest fell by 1637 contracts despite the fact that silver was unchanged yesterday. The total silver OI continues to remain extremely high, with today’s reading at 184,211 contracts   In ounces, the OI is represented by .9210 billion oz or 131% 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 27 notices served upon for 135,000 oz.

In gold, the total comex gold OI rests tonight at 432,301. We had 8 notices filed for 800 oz today.

We had no change in gold leaving the GLD today /  thus the inventory rests tonight at 667.93 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 thought that 700 tonnes is the rock bottom inventory in GLD gold, but I guess I was wrong. However we must be coming pretty close to a level of only paper gold and the GLD being totally void of physical gold.  In silver, we had no changes in silver  inventory at the SLV, / Inventory rests at 326.209 million oz.

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

1. Today, we had the open interest in silver fell by 1637 contracts down to 184,211 even though silver was unchanged in price yesterday. Again, we must have had some short covering.  The OI for gold fell by 1972 contracts to 432,301 contracts as gold was down by $5.00 yesterday.  We still have close to 22 tonnes of gold standing with only 19.66 tonnes of registered gold in the dealer vaults ready to satisfy that which stands.

(report Harvey)

2. One story on Greece whereby the IMF will delay making a decision to join in the bailout until the fall

(courtesy Reuters)

3.Gold trading overnight, Goldcore

(/Mark OByrne)

 

4. Two stories on the plummeting stock market and economy inside China

(zero hedge)

5 Trading of equities/ New York

(zero hedge)

 

6.  USA stories:

i) Data for today:

a) huge layoffs reported in the Challenger/Christmas/Gray report

b) the Thursday jobless report

c) Atlanta Fed reports that they believe 3rd quarter GDP will be only 1%

d) Personal finance confidence falters badly

ii) Looks like the FBI are undergoing a criminal probe on Hillary

(zero hedge)

6. Two oil related stories:

(zero hedge/Wolf Richter)

 

7. James Turk discusses gold backwardation with greg Hunter

(Greg Hunter usa watchdog/James Turk/Dave Kranzler)

 

8. The next “Argentina” is Brazil:  (i.e. to default)

(two stories/zero hedge)

9.  Iran refuses to let inspectors in:

(zero hedge)

10. The Bank of England reports that they are now moving to the dovish side as the global economy is sinking:

(zero hedge/Bloomberg)

 

11.Silver production from the mines fell off the cliff these past few months;

(Steve St Angelo/SRSRocco report)

12.

Here are today’s comex results:

 

The total gold comex open interest fell from 434,273 down to 432,301 for a loss of 1972 contracts as gold was down $5.00 yesterday. For the past two years, we have strangely witnessed two interesting developments with respect to the gold open interest:  1) total gold comex collapse in OI as we enter an active delivery month, and 2) a continual drop in the amount of gold standing in an active month, and today the latter stopped its decline and actually rose. What is interesting is that the LBMA gold is witnessing a 7.40 premium spot/next nearby month as gold is now in backwardation over there. We are now in the contract month of August and here the OI fell by 2718 contracts falling to 3875 contracts. We had 2828 notices filed upon on yesterday and thus we gained 110 contracts or 11,000 additional ounces will stand for delivery. The next delivery month is September and here the OI rose by 245 contracts up to 2523.  The next active delivery month if October and here the OI  rose by 300 contracts up to 26,713.  The estimated volume on today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was poor at 82,238. The confirmed volume on yesterday (which includes the volume during regular business hours + access market sales the previous day was poor at 127,924 contracts. Today we had 8 notices filed for 800 oz.

And now for the wild silver comex results. Silver OI fell by 1637 contracts from  185,848 contracts down to 184,211 despite the fact that silver was unchanged in price yesterday .  We continue to have some short covering as our bankers pulling their hair out with respect to the continued high silver OI as the world senses something is brewing in the silver  arena. We are in the delivery month of August and here the OI fell by 0 contracts remaining at 60. We had 0 delivery notices filed yesterday and thus we gained 0 contracts or an additional zero ounces will stand for delivery in this non active August contract month. The next major active delivery month is September and here the OI fell by 3023 contracts to 113,664. The estimated volume today was poor at 21,236 contracts (just comex sales during regular business hours). The confirmed volume yesterday (regular plus access market) came in at 43,932 contracts which is excellent in volume.  We had 27 notices filed for 135,000 oz.

August contract month: initial standing

August 6.2015

Gold

Ounces

Withdrawals from Dealers Inventory in oz   nil
Withdrawals from Customer Inventory in oz  16,916.156 oz (JPMorgan,Scotia
Deposits to the Dealer Inventory in oz nil
Deposits to the Customer Inventory, in oz 18,043.443 (Delaware,Scotia)
No of oz served (contracts) today 8 contracts (800 oz)
No of oz to be served (notices) 3867 contracts (386,700 oz)
Total monthly oz gold served (contracts) so far this month 3178 contracts(317,800 oz)
Total accumulative withdrawals  of gold from the Dealers inventory this month   nil
Total accumulative withdrawal of gold from the Customer inventory this month 292,138.1   oz

Today, we had 0 dealer transactions

 

total Dealer withdrawals: nil  oz

 

we had 0 dealer deposits

total dealer deposit: zero

 

we had 2 customer withdrawals
i) Out of JPMorgan: 16,783.956 oz
ii) Out of Scotia: 100.05 oz
iii) Out of Manfra; 32.15 oz (1 kilobar)

total customer withdrawal: 16,916.156  oz

We had 2 customer deposits:

i) Into Delaware: 1770.37 oz

ii) Into Scotia: 16,273.406 oz

Total customer deposit: 18,043.443 oz

We had 1  adjustment

 

ii) out of Scotia: 10,754.504 oz was adjusted out of the dealer and this landed into the customer account of Scotia.

 

 

JPMorgan has 11.66 tonnes left in its registered or dealer inventory.

(375,019.978 oz)

.

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 8 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 August contract month, we take the total number of notices filed so far for the month (3178) x 100 oz  or 317,800 oz , to which we add the difference between the open interest for the front month of August (3875) and the number of notices served upon today (8) x 100 oz equals the number of ounces standing

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

No of notices served so far (3178) x 100 oz  or ounces + {OI for the front month (3875) – the number of  notices served upon today (8) x 100 oz which equals 704,600 oz standing so far in this month of August (21.916 tonnes of gold).

Thus we have 21.916 tonnes of gold standing and only 19.66 tonnes of registered or dealer gold to service it.

We gained 110 contracts or an additional 11,000 oz will stand for delivery in this active month of August.

Total dealer inventory 632,041.588 or 19.66 tonnes

Total gold inventory (dealer and customer) = 7,569,584.573 oz  or 235.44 tonnes

Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 235.41 tonnes for a loss of 67 tonnes over that period.

 

end

 

And now for silver

August silver initial standings

August 6 2015:

Silver

Ounces

Withdrawals from Dealers Inventory nil
Withdrawals from Customer Inventory 1,028,623.39  oz (CNT,Brinks, Scotia)
Deposits to the Dealer Inventory  nil
Deposits to the Customer Inventory nil
No of oz served (contracts) 27 contracts  (135,000 oz)
No of oz to be served (notices) 33 contracts (165,000 oz)
Total monthly oz silver served (contracts) 45 contracts (225,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month 85,818.47 oz
Total accumulative withdrawal  of silver from the Customer inventory this month 4,039,673.1 oz

Today, we had 0 deposits into the dealer account:

total dealer deposit: nil   oz

 

we had 0 dealer withdrawal:

 

total dealer withdrawal: nil  oz

 

We had 0 customer deposits:

 

 

total customer deposits:  nil  oz

 

We had 3 customer withdrawals:

i)Out of Brinks:  1000.000  oz ????

ii) Out of CNT:  967,619.46 oz

iii) Out of Scotia:  1,028,623.38 oz

 

total withdrawals from customer: 1,028,623.38  oz

 

we had 2  adjustments

 Out of Brinks:
i)  35,902.400 oz leaves the customer account and lands into the dealer account of Brinks
ii) Out of CNT:
39,098.000 oz (???) leaves the customer and lands into the dealer account at CNT:

Total dealer inventory: 55.829 million oz

Total of all silver inventory (dealer and customer) 172.381 million oz

The comex has been bleeding silver lately.

 

The total number of notices filed today for the August contract month is represented by 27 contracts for 135,000 oz. To calculate the number of silver ounces that will stand for delivery in August, we take the total number of notices filed for the month so far at (45) x 5,000 oz  = 225,000 oz to which we add the difference between the open interest for the front month of August (60) and the number of notices served upon today (27) x 5000 oz equals the number of ounces standing.

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

45 (notices served so far)x 5000 oz + { OI for front month of August (60) -number of notices served upon today (27} x 5000 oz ,= 390,000 oz of silver standing for the August contract month.

we neither gained nor lost any silver ounces in this delivery month of August.

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:

August 6/no change in gold inventory at the GLD/Inventory rests at 667.93 tonnes

August 5.we had a huge withdrawal of 4.77 tonnes from the GLD tonight/Inventory rests at 667.93 tonnes

August 4.2015: no change in inventory/rests tonight at 672.70 tonnes

August 3.2015: no change in inventory at the GLD./Inventory remains at 672.70 tonnes

 July 31/we had a huge withdrawal of 7.45 tonnes/Inventory rests this weekend at 672.70 tonnes

July 29/no change in inventory/rests tonight at 680.13 tonnes

July 28/no change in inventory/rests tonight at 680.13 tonnes

July 27/no change in inventory/rests tonight at 680.13 tonnes

July 24.2015/we had another massive withdrawal of 4.48 tonnes of gold form the GLD/Inventory rests at 680.13 tonnes.

July 23.2015: we had another withdrawal of 2.68 tonnes of gold from the GLD/Inventory rests at 684.63 tonnes

july 22/another withdrawal of 2.38 tonnes of gold from the GLD/Inventory rests at 687.31

July 21.2015: a massive withdrawal of 6.56 tonnes of gold from the GLD.

Inventory rests at 689.69 tonnes.  China and Russia need their physical gold badly and they are drawing their physical from this facility.

July 2o.2015: no change in inventory

July 17./a massive withdrawal of 11.63 tonnes  in gold tonnage tonight from the GLD/Inventory rests at 696.25 tonnes

July 16./we lost 1.19 tonnes of gold tonight/Inventory rests at 707.88 tonnes

 

August 6 GLD : 667.93 tonnes

 

end

 

And now SLV:

August 6/no changes in SLV/inventory rests at 326.209 million oz

August 5/ a small withdrawal of 142,000 oz of inventory leaves the SLV/Inventory rests tonight at 326.209 million oz

 

August 4.2015: a small withdrawal of 476,000 oz of inventory at the SLV/Inventory rests at 326.351 million oz

August 3.2015; no change in inventory at the SLV/inventory remains at 326.829 million oz

And now for silver (SLV)  July 31/no change in inventory/rests tonight at 326.829 million oz

July 29/no change in silver inventory/326.829 million oz

July 28/we had a huge withdrawal of 2.005 million oz from the SLV/Inventory rests at 326.829 oz

July 27/no change in silver inventory/inventory rests tonight at 328.834 million oz

July 24/no change in silver inventory/inventory rests tonight at 328.834 million oz

July 23.2015; no change in silver inventory/rests tonight at 328.834 million oz

july 22/no change in silver inventory/inventory rests at 328.834 million oz.

July 21.we had a massive addition of 1.241 million oz into the SLV/Inventory rests tonight at 328.834 million oz.

Please note the difference between gold and silver (GLD and SLV).  In GLD gold is being depleted and sent to the east.  In silver: no depletions, as I guess this vehicle cannot supply physical metal.

July 20/no change

july 17.2015/no change in silver inventory tonight/inventory at 327.593 million oz

July 16./no change in silver inventory/rests tonight at 327.593 million oz

 

August 6/2015:  tonight inventory rests at 326.209 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 11.4 percent to NAV usa funds and Negative 11.7% to NAV for Cdn funds!!!!!!!

Percentage of fund in gold 62.0%

Percentage of fund in silver:37.7%

cash .3%

( August 6/2015)

2. Sprott silver fund (PSLV): Premium to NAV falls to -1.04%!!!! NAV (August 5/2015)  not out today

3. Sprott gold fund (PHYS): premium to NAV rises to – .76% to NAV(July August5/2015) not out today

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

Sprott physical gold trust is back into negative territory at -.76%

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

 

And now for your overnight trading in gold and silver plus stories

on gold and silver issues:

 

(courtesy/Mark O’Byrne/Goldcore)

a must read….

Gold Bullion Demand In ‘Chindia’ Heading Over 2,000 Tons Again

  • Shanghai Gold Exchange deliveries at 73.289 tonnes last week
  • 3rd largest week of gold withdrawals ever on SGE
  • Both China and India heading for over 1,000 metric tonnes in 2015 … again
  • India imports 96.1 tonnes in May alone
  • ‘Chindia’ imports 296.55 tonnes in May – 14% greater than global production
  • South Korean gold demand surges in wake of Chinese crash
  • Asian and global gold demand robust contrary to anti-gold narrative

China India Gold Demand

The recent lower prices in gold have not deterred investors internationally from buying gold coins and bars in large volumes again. Indeed the Perth Mint and the US Mint are struggling to fulfill demand for gold coins and bars.

This is particularly the case in the eastern hemisphere – especially in India and China – where demand has again increased significantly on price weakness.

Between them, these two countries are on-track to import 2,000 tonnes of gold this year – that is more than two thirds of the total annual global gold mine production, which is set to be about 2,800 tonnes this year.  (Harvey:  2,200 ex China ex Russia)

The Shanghai Gold Exchange, which deals exclusively in physical bullion, saw buyers take delivery of over 73 tonnes of gold last week, the third largest withdrawal on record. This follows two weeks of steadily increasing demand as investors pull or attempt to pull money out of the Chinese stock market.

Demand out of China is on track to surpass last year’s official figure of 974 tonnes and may reach 1,000 tonnes this year. Chinese demand has been steadily growing, with the encouragement of the government. The ban on gold ownership imposed by Chairman Mao in 1949 was lifted in 2003.

Shanghai Gold Exchange - Gold Withdrawals

As such, demand from the nation of 1.3 billion people who have a strong cultural affinity to gold – and experience of monetary mismanagement and hyperinflation – has been rising from a base of nearly zero and has recently surpassed that of India to become the world’s top gold buying nation. Nonetheless, Chinese gold ownership remains very low when compared to that of India.

Prudent Indian households hold 11% of the world’s gold. That is more gold than the gold reserves that the U.S. Federal Reserve, the German Bundesbank and the Swiss central bank are believed to own put together.

Indian demand remains robust. In April and May alone the country imported over 155 tonnes of the precious metal.

Demand so far this year has greatly exceeded that of the same period last year – up 61% – as Indians take advantage of the low prices despite the fact that we are some months away from the typical gold buying season. Indian demand is also expected to hit 1,000 tonnes this year.

India gold imports

Together, “Chindia” imported 296.55 tonnes of gold in May. This surpasses current monthly mine supply globally by 14%. Clearly there is an imbalance in the gold market when demand from two countries alone exceeds total mine supply, which must then be supplemented by existing stocks. (Harvey: world produces 183 tonnes per month)

 

Yet prices remain in a downward trend as speculative short selling continues to depress prices. Indeed it not just the huge Asian nations of China and India where demand remains high. There are reports of strong demand – including by thePerth Mint – in Thailand, Vietnam and Malaysia. Demand for gold in South Korea has surged in recent weeks, according to Reuters.

Koreans, nervous about the fallout from the crash in China’s stock market, are choosing to diversify into gold and take advantage of lower dollar prices.

This trend is likely to be repeated across east and south-east Asia in countries who are reliant on the increasingly important Chinese economy.

Quarterly Gold Supply 2010-2015

While it is unlikely to have significant impact on global demand – last year’s demand from South Korea amounted to only 17 tonnes – it demonstrates the psychological appeal that gold still has in times of economic crisis among people across the world – and especially in Asia.

The triumphalism with which some Wall Street commentators have covered the temporary set-back in gold prices looks misplaced and misguided. This is especially the case when the bigger picture is taken into account – including the significant macreconomic, systemic, geopolitical and monetary risks of today.

These are being ignored for now – as they were in 2007 and early 2008.

Gold will continue to retain value well into the future – a claim we would not be too confident about making with regards to paper currencies and bonds issued by the most indebted nations in the world.

Own allocated, segregated gold coins and bars of which you can take delivery.

MARKET UPDATE
Today’s AM LBMA Gold Prices were USD 1,085.00, EUR 996.05 and GBP 694.56 per ounce.
Yesterday’s AM LBMA Gold Prices were USD 1,086.50, EUR 1,000.18 and GBP 697.82  per ounce.

Gold and silver on the COMEX were nearly unchanged yesterday – down $3.20 and up 1 cent respectively – to $1,085.00/oz and $14.60/oz.