August 17 B /The upcoming deflation caused by China’s devaluation of the Yuan/Chinese demand (citizen demand) for gold in latest weekly reporting: 56 tonnes/Huge collapse in NY Manufacturing (Empire) Index/

Good evening Ladies and Gentlemen:

Here are the following closes for gold and silver today:

Gold:  $1118.60 up $5.70   (comex closing time)

Silver $15.30 up 9 cents.

In the access market 5:15 pm

Gold $1117.30

Silver:  $15.34

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

At the gold comex today, we had a poor delivery day, registering 0 notice for nil ounces  Silver saw 0 notices for nil oz

Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 227.62 tonnes for a loss of 75 tonnes over that period.

In silver, the open interest fell by 364 contracts as silver was down in price by 18 cents on Friday. The total silver OI continues to remain extremely high, with today’s reading at 174,507 contracts   In ounces, the OI is represented by .872 billion oz or 124% 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 0 notices served upon for nil oz.

In gold, the total comex gold OI rests tonight at 431,081. We had 0 notices filed for nil oz today.

We had no changes at the GLD today /  thus the inventory rests tonight at 671.87 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  tune of / Inventory rests at 324.968 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 364 contracts down to 174,507 as silver was down 18 cents in price with respect to Friday’s trading. Again, we must have had some short covering.  The OI for gold  fell by 932 contracts to 431,081 contracts as gold was down by $2.80 on Friday.  We still have close to 19 tonnes of gold standing with only 15.206 tonnes of registered gold in the dealer vaults ready to satisfy that which stands.

(report Harvey)

2.Gold trading overnight, Goldcore

(/Mark OByrne)

3. Seven stories on China devaluing their yuan and how this will lead to a huge deflation throughout the globe and also discussing the ramifications of the toxic explosion in Tianjin.

(zerohedge,David Stockman,Raul Meijer/UKtelegraph/John Ficenec/)

 4. Two stories on war breaking out in the Ukraine
(IBT/IWB/Investment Watch)

5 Trading of equities/ New York

(zero hedge)

6. Two oil related stories

(zero hedge)

7. Stories on Brazil and Turkey

(zero hedge)

8. Explosion in Central Bangkok,Thailand

 

9.  USA stories:

i Huge collapse in the Empire Manufacturing index

ii American Malls in total meltdown

(Jim Quinn)

 

Physical stories:

i) 56 tonnes of gold demand into China

(Lawrence Williams/mineweb)

 

ii) Gold imports and exports out of the USA

(Steve St Angelo/SRSRocco report)

 

iii) Silver Report chart

showing deficit of 930 million oz of silver

(Steve St Angelo/SRSRocco report)

 

iv)

Bill Holter’s  latest interview with Sean at SGT
Somewhat controversial regarding the Tianjin explosion.  The conversation morphed toward 911, no controversy nor even a question in my mind.  Standing watch,  Bill
(Bill Holter/SGT report)
5. Stanley Druckenmiller finally purchases huge sums of gold in his personal account
(zero hedge)
and other stories…../

Let us head over and see the comex results for today.

The total gold comex open interest fell from 432,013 down to 431,081, for a loss of 932 contracts as gold was down $2.80 with respect to Friday’s trading. 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 continued with its decline in gold ounces standing. What is also interesting is that the LBMA gold is continually witnessing a 7.00 plus 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 379 contracts falling to 2123 contracts. We had 0 notice filed on Friday and thus we lost 379 contracts or 37,900 additional ounces will not stand for delivery. The next delivery month is September and here the OI fell by 40 contracts up to 2284. The next active delivery month is October and here the OI fell by 189 contracts down to 26,439.  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 106,565. The confirmed volume on yesterday (which includes the volume during regular business hours + access market sales the previous day was poor at 108,890 contracts.
Today we had 0 notices filed for nil oz.
And now for the wild silver comex results. Silver OI fell by 364 contracts from 174,871 down to 174,507 despite the fact that silver was down by 18 cents in price on Friday . 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 16. We had 0 delivery noticse filed yesterday and thus we lost 0 contracts or an additional nil 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 3,673 contracts to 74,082. The estimated volume today was good at 42,298 contracts (just comex sales during regular business hours). The confirmed volume yesterday (regular plus access market) came in at 57,464 contracts which is excellent in volume.  We had 0 notices filed for nil oz.

August contract month:

initial standing

August 14.2015

Gold
Ounces
Withdrawals from Dealers Inventory in oz   nil
Withdrawals from Customer Inventory in oz 32.15 oz (Manfra/1 kilobar) 
Deposits to the Dealer Inventory in oz nil
Deposits to the Customer Inventory, in oz nil
No of oz served (contracts) today 0 contract (nil oz)
No of oz to be served (notices) 2123 contracts (212,300 oz)
Total monthly oz gold served (contracts) so far this month 3824 contracts(382,400 oz)
Total accumulative withdrawals  of gold from the Dealers inventory this month   nil
Total accumulative withdrawal of gold from the Customer inventory this month 552,940.1   oz
Today, we had 0 dealer transactions
total Dealer withdrawals: nil  oz
we had 0 dealer deposits
total dealer deposit: zero
we had 1 customer withdrawals
i) Out of Manfra:  32.15 (  1 kilobar)
total customer withdrawal: 32.15  oz
We had 0 customer deposits:

Total customer deposit: nil oz

We had 0  adjustments:

JPMorgan has 7.1966 tonnes left in its registered or dealer inventory. (231,469.56 oz)  and only 741,358.273 oz in its customer (eligible) account or 23.05 tonnes

.
Today, 0 notices was issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 0 contracts of which 0 notices were stopped (received) by JPMorgan dealer and 0 notices were stopped (received) by JPMorgan customer account
To calculate the total number of gold ounces standing for the August contract month, we take the total number of notices filed so far for the month (3824) x 100 oz  or 382,400 oz , to which we add the difference between the open interest for the front month of August (2123) and the number of notices served upon today (0) x 100 oz equals the number of ounces standing.  
Thus the initial standings for gold for the August contract month:
No of notices served so far (3824) x 100 oz  or ounces + {OI for the front month (2123) – the number of  notices served upon today (0) x 100 oz which equals 594,700 oz standing so far in this month of August (18.497 tonnes of gold).

We lost 379 contracts or an additional 37,900 ounces will not stand for delivery. Thus we have 18.497 tonnes of gold standing and only 15.206 tonnes of registered or dealer gold to service it. today we must have had considerable cash settlements.

Total dealer inventory 489,868.480 or 15.236 tonnes
Total gold inventory (dealer and customer) =7,318,056.475 or 227.62  tonnes)
Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 227.62 tonnes for a loss of 75 tonnes over that period. 
end
And now for silver

August silver initial standings

August 14 2015:

Silver
Ounces
Withdrawals from Dealers Inventory nil
Withdrawals from Customer Inventory  882,484.03 oz (Brinks,CNT,HSBC)
Deposits to the Dealer Inventory  nil
Deposits to the Customer Inventory
No of oz served (contracts) 0 contracts  (nil oz)
No of oz to be served (notices) 16 contracts (80,000 oz)
Total monthly oz silver served (contracts) 59 contracts (295,000 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 7,424,066.4 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;  113,144.28 oz
ii) Out of CNT:  739,107.410 oz
iii) Out of HSBC: 30,232.33 oz

total withdrawals from customer: 882,484.02   oz

we had 0  adjustment
Total dealer inventory: 55.943 million oz
Total of all silver inventory (dealer and customer) 171.754 million oz
The total number of notices filed today for the August contract month is represented by 0 contracts for nil 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 (59) x 5,000 oz  = 295,000 oz to which we add the difference between the open interest for the front month of August (16) and the number of notices served upon today (0) x 5000 oz equals the number of ounces standing.
Thus the initial standings for silver for the August contract month:
59 (notices served so far)x 5000 oz + { OI for front month of August (16) -number of notices served upon today (0} x 5000 oz ,= 375,000 oz of silver standing for the August contract month.

we neither lost nor gained any silver ounces standing in this non 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 shareholdersii) demand from the bankers who then redeem for gold to send this gold onto Chinavs no sellers of GLD paper.
And now the Gold inventory at the GLD:
August 17.2015: no changes in inventory/GLD inventory rests tonight at 671.87 tonnes
August 14.2015: no changes in inventory/GLD inventory rests tonight at 671.87 tonnes
August 13.2015:/no changes in inventory/GLD inventory rests tonight at 671.87 tonnes

August 12./ a huge deposit of 4.18 tonnes of gold into the GLD/Inventory rests at 671.87 tonnes

August 11.2015: no change in gold inventory at the GLD/Inventory rests at 667.93 tonnes August 10/no change in gold inventory at the GLD/Inventory rests at 667.93 tonnes

August 7./no change in gold inventory at the GLD/Inventory rests at 667.93 tonnes 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
August 17 GLD : 671.87 tonnes
end

And now SLV:

August 17.2015: no changes in inventory at the SLV/Inventory rests tonight at 324.968 million oz.

August 14/no changes in inventory at the SLV/Inventory rests at 324.968 million oz.

August 13.2013: a huge withdrawal of 1.241 million oz/Inventory rests tonight at 324.968 million oz

August 12.2015: no change in SLV inventory/rests tonight at 326.209 million oz.

August 11./ no changes in SLV inventory/rests tonight at 326.209 million oz.

August 10: no changes in SLV inventory/rests tonight at 326.209 million oz.

August 7.no changes in SLV/Inventory rests this weekend at 326.209 million oz

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

August 17/2015:  tonight inventory rests at 324.968 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 10.8 percent to NAV usa funds and Negative 10.8% to NAV for Cdn funds!!!!!!!
Percentage of fund in gold 61.6%
Percentage of fund in silver:38.1%
cash .3%( August 17/2015).
2. Sprott silver fund (PSLV): Premium to NAV falls to -0.24%!!!! NAV (August 17/2015) (silver must be in short supply)
3. Sprott gold fund (PHYS): premium to NAV falls to – .61% to NAV August17/2015)
Note: Sprott silver trust back  into negative territory at-  0.24% Sprott physical gold trust is back into negative territory at -.61%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 storieson gold and silver issues:

(courtesy/Mark O’Byrne/Goldcore)

Doomsday Clock Strikes One Minute To Midnight For Global Market Crash

It is only a matter of time before stock markets collapse under the weight of their lofty expectations and record valuations.

China currency devaluation signals endgame leaving equity markets free to collapse under the weight of impossible expectations.

17-08-2015
Photo: Reuters

The Telegraph’s John Ficenec has written an excellent piece warning of a possible market crash in the coming weeks.

He identifies eight key “signs things could get a whole lot worse.”

1 – China slowdown
2 – Commodity collapse
3 – Resource sector credit crisis
4 – Dominoes begin to fall
5 – Credit markets roll over
6 – Interest rate shock
7 – Bull market third longest on record
8 – Overvalued US market

17-08-2015_2

John Ficenec is a market and finance expert and is Editor of the Questor column at Telegraph Media Group working across the Daily and Sunday titles and online. He is a qualified accountant who trained at KPMG before moving into asset management and the private equity industry. He has worked in financial journalism since 2011 and joined the Telegraph in 2013. He won ‘Article of the Year’ in the 2013 CFA Society of UK awards.

As we know, a picture paints a thousand words and the article is replete with a number of excellent charts which should give even the most complacent investor pause for thought.

The convincing thesis can be read in GoldCore Commentaryhere

DAILY PRICES
Today’s Gold Prices: USD 1,117.30, EUR 1006.17 and GBP 714.34 per ounce.
Friday’s Gold Prices: USD 1,116.75, EUR 1002.11 and GBP 715.29 per ounce
(LBMA AM)

17-08-2015_3
Gold in USD – 1 Year

Gold and silver gained over 2% and 3% last week. After those gains, both precious metal took a breather on the COMEX on Friday. Gold and silver were mixed  – gold was flat and silver fell 1%.

This morning, gold is 0.4% higher to $1,118.60 per ounce. Silver is 0.2% higher to $15.37 per ounce.

Platinum and palladium are 0.5% and 0.2% higher to $1,001 and $623 per ounce respectively.

Download Essential Guide To Storing Gold Offshore

BREAKING NEWS
China Surprises for a Second Time This Week With More Gold Data – Bloomberg
Gold Holds Gain After Posting First Weekly Advance Since June – Bloomberg
Gold steady as focus returns to U.S. rate hike view – Reuters
Bears Miss Gold’s Best Rally Since June as Analysts See Declines – Bloomberg
China Says Gold Hoard Climbs 1.1% in Data Transparency Push – Bloomberg

IMPORTANT COMMENTARY
Doomsday Clock Strikes One Minute To Midnight For Global Market Crash  – The Telegraph
Beware a China crisis that could crash down on us all – The Telegraph
How The Wall Street Ponzi Works——The Stock Pumping Swindle Behind Four Retail Zombies – David Stockman’s Contra Corner
The ‘Big Long’ Gets Bigger As Goldman And HSBC Gobble Up Tons More Gold – Seeking Alpha
Germany Continues To Lead The West In Physical Gold Demand – GoldSeek
Billionaire Stanley Drucknemiller Loads Up On Gold, Makes It His Largest Position For First Time Ever – Zero Hedge

Click on News and Commentary

end

 

Many follow the following gentleman:  Stanley Druckenmiller:

for the first time he is buying gold:

(courtesy zero hedge)

Billionaire Stanley Drucknemiller Loads Up On Gold, Makes It His Largest Position For First Time Ever

Over the past several years, one of the biggest critics of the Fed’s ruinous monetary policy has been billionaire investor Stanley Druckenmiller, who in 2010 announcedhe would be shutting down his legendary Duquesne Capital Management, and convert it to a family office. Yet, despite his constant drumbeat of warnings that the period of ZIRP/QE/NIPR will end in tears, he had yet to put money where his mouth was (aside for a brief period in mid-2012 when we bought a lot of GLD calls, only to unwind the almost instantly).

This ended on June 30, when following Friday’s filing by the Duquesne Family Office, we learned that as of the end of Q2, the largest position for Stanley Druckenmiller was none other than gold, following the purchase of 2.9 million shares of the GLD ETF shares. In other words, as of this moment, gold amount to over 20% of Druckenmiller’s total holdings.

In a world in which starved for ideas alpha-chasers do anything and everything that billionaires report they did a month and a half ago, we wonder if this marks the end of the relentless liquidation in the GLD, which recently hit a multi-year low, as a result driving the price of paper gold to multi-year lows even as physical demand has approached record levels.

So with Druckenmiller now back and strapped in for the ride, we wonder which other prominent investor will promptly follow?

 end
Chinese demand for the week ending August 7: 56 tonnes
(courtesy Lawwrence Williams/Mineset)

Chinese Gold Demand Still Running Extremely High For Summer Months

Contrary to some of the expressed media-disseminated information, Chinese physical gold demand, as indicated by gold withdrawals from the Shanghai Gold Exchange (SGE), remains at a very high level indeed for this time of year. The latest figure for withdrawals for the week ended August 7th was 56 tonnes, bringing the total for the year to date to a massive 1,520 tonnes. This is a full 135 tonnes higher than the previous record for Chinese gold demand at the same time of year – back in 2013.

A particular feature of this year’s SGE withdrawal figures has been the continuing strength of demand so expressed through the summer months when demand normally falls away. This year weekly demand over the period has been mostly above the 50 tonne mark – indeed it was well over 70 tonnes just three weeks ago – and this is at a time of year when 30 tonnes plus normally represents a strong demand week on the SGE! See chart below from sharelynx.com.

If one checks out the weekly withdrawals bar chart (the lower section), one can see just how strong recent movement through the exchange has been in comparison with previous years.

Interestingly, the Chinese Central Bank – the Peoples Bank of China (PBoC) – has also now started to report monthly updates in its gold reserves (see China gold reserves up 19 tonnes in July. Really?!) which could be seen as adding to overall Chinese demand, although many Western analysts are unconvinced about the accuracy of PBoC statements regarding the size of the nation’s real gold reserves.

The big question may well be has the recent devaluation of the yuan against the dollar, coupled with the admittedly fairly small gold price recovery to date, started to redress sentiment in the gold market in the West where prices are set. There is news now of some of the big bullion banks taking deliveries of physical gold on their own account, and also of shortages of registered gold available for delivery in COMEX warehouses having to be ‘rescued’ from dangerously low levels by a major reclassification of a big hunk of gold from the Eligible to the Registered category by JPMorgan. Is the tide turning at last? This could presage a very interesting second half of the year in the gold markets of the world.

********

end

Steve St Angelo has provided us with a terrific commentary on gold imports into the USA and likewise gold exports out of the USA.
In essence the USA now produces around 15 tonnes per month (before it was 20 tonnes/month).  They import a little north of 25 tonnes per month, and then they export all of it  ie. around 42 tonnes per month.
The big recepients to this gold is of course China, India and other gold loving nations:
(courtesy Steve St Angelo/SRSRocco report)

THE U.S. EMPIRE INVESTMENT STRATEGY: Export All Of It’s Gold… The Barbarous Relic

by on August 17, 2015

As the world races towards another financial calamity, the U.S. Empire’s strategy to shield itself from this impending disaster, is to export all of its gold supply. That’s correct. The U.S. Gold Market can be explained in three simple words… ZERO SUM GAME.

This is quite a different strategy from the once great super power which held over 20,000 metric tons (mt) of official gold reserves in 1950. While the official figures now show the U.S. presently holds 8,133 mt of gold in reserve, anyone with an IQ greater than a “10”, realizes this is just an accounting gimmick. Unfortunately, most of that gold was probably dumped on the market (or leased) to help cap and rig the paper price lower.

According to the recently released USGS data, the U.S. exported every single ounce of its gold supply in April. Let’s take a look at the chart below:

U.S. Gold Market April 2015

U.S. gold production declined in April to 15 mt compared to 16.5 mt last year. Total U.S. gold production year to date is down a whopping 8%. When we add U.S. mine supply to imports for April, total U.S. gold supply for the month was 42 mt. Now, if we look at the total export figure, we can see the United States exported its entire gold supply. Thus, the net result was a BIG PHAT ZERO.

Again, a ZERO SUM GAME.

And, if you have been reading my articles in the past, it’s even worse than that. If we look at the total U.S. Gold Market supply and demand equation for the first four months of the year, this is the result: