Good evening Ladies and Gentlemen:
Here are the following closes for gold and silver today:
Gold: $1102.40 down $18.20 (comex closing time)
Silver $14.57 down 18 cents.
In the access market 5:15 pm
First, here is an outline of what will be discussed tonight:
At the gold comex today we had a poor delivery day, registering 4 notices for 400 ounces Silver saw 3 notices for 15,000 oz.
Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 219.98 tonnes for a loss of 83 tonnes over that period.
In silver, the open interest fell by 1891 contracts despite the fact that silver was up in price by 21 cents yesterday. Again, our banker friends used the opportunity to cover as many silver shorts as they could but failed. The total silver OI now rests at 155,615 contracts In ounces, the OI is still represented by .778 billion oz or 111% of annual global silver production (ex Russia ex China).
In silver we had 3 notices served upon for 15,000 oz.
In gold, the total comex gold OI surprisingly rose to 421,732 for a gain of 2,730 contracts. We had 4 notices filed for 400 oz today.
We had no changes in tonnage at the GLD today/ thus the inventory rests tonight at 682.59 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. It sure looks like 670 tonnes will be the rock bottom inventory in GLD gold. It looks to me that China has taken the last amounts of physical gold from the GLD. I guess the only place left for China to receive physical gold will be the FRBNY and the comex. In silver, we had a big withdrawal in silver inventory at the SLV to the tune of 1.336 million oz/Inventory rests at 322.06 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 1891 contracts up to 155,615 despite the fact that silver was up by 21 cents in price with respect to yesterday’s trading. The total OI for gold rose by 2739 contracts to 421,732 contracts, despite the fact that gold was down by 20 cents yesterday.
2.Gold trading overnight, Goldcore
3. Trading overnight from Japan
4. Trading overnight from China.
5. You have to love this guy Gartman. Last night he covered his short position on the markets and then went long..just in time to lose a fortune again as the Dow plummeted
6. World bank economist warns the USA not to raise interest rates on Sept 17.
7.Willem Buiter states that only “Helicopter Money” can save the world
8.David Stockman puts everything into perspective with respect to Japan’s collapsing economy, China’s imploding economy together with the massive liquidation of USA treasuries from the entire globe
(David Stockman/Contra CornerBlog)
9. Spain votes on Sept 27 for independence. The Spanish defense minister warns that he may have to call in the army to defend Spain.
10. The Mises institute economist, Wilson states that the Greek government should repudiate their debt
11. Russia continues to supply armaments to Syria and they are warned by the USA. Showdown coming
12. Turkey now closer and closer to civil war as citizens torch Kurd operations in Istanbul, Izmir, Ankara and southern cities
13. USA stories/Trading of equities NY
a) Puerto Rico will run out of cash by either year end or the latest in June 2016. trouble ahead! (zero hedge)
b) the JOLTS report shows a big increase in job openings. This is the figure that Janet Yellen likes to show that slack in the job market is waning
c First off today, it was World Bank Economist Basu who stated that the USA should not raise interest rates on Sept 17. Later in the day it was Keynesian and Nobel prize winner Krugman also stated that the raising of USA rates will be harmful
(Paul Krugman/zero hedge)
d) Dave Kranzler talks about the USA’s latest retail sales reporting:
14. Physical stories:
- Something snapped at the comex (zero hedge)
- One commentaries on the faulty data at the comex (Dave Kranzler IRD)
- One commentary explaining the high ratio of paper gold to real gold at 207/1
- Greg Hunter interviews David Morgan who states categorically that the silver market has seized up.
- The Indian government again is trying to coax its citizens to give up their physical gold to receive paper gold and an interest rate on that. Good luck to them. They fail each time they try (Bloomberg)
- Bill Holter’s commentary tonight is titled: “The Breaking Point?”
- Peter Hambro explains to Bloomberg that there is a difference between paper gold and real gold (Bloomberg/Peter Hambro)
- Silver premiums rising exponentially/Profit Confidential
and well as other commentaries…
Let us head over and see the comex results for today.
September contract month:
|Withdrawals from Dealers Inventory in oz||nil|
|Withdrawals from Customer Inventory in oz||229.645 oz
|Deposits to the Dealer Inventory in oz||nil|
|Deposits to the Customer Inventory, in oz||nil oz|
|No of oz served (contracts) today||4 contracts (400 oz)|
|No of oz to be served (notices)||211 contracts (211,000 oz)|
|Total monthly oz gold served (contracts) so far this month||16 contracts(1,600 oz)|
|Total accumulative withdrawals of gold from the Dealers inventory this month||nil|
|Total accumulative withdrawal of gold from the Customer inventory this month||153,840.9 oz|
Total customer deposit: nil oz
JPMorgan has only 0.6133 tonnes left in its registered or dealer inventory. (19,718.722 oz) and only 863,683.63 oz in its customer (eligible) account or 26.86 tonnes
September silver initial standings
September 9 2015:
|Withdrawals from Dealers Inventory||nil|
|Withdrawals from Customer Inventory|| 1,843,791.062 oz
|Deposits to the Dealer Inventory||nil|
|Deposits to the Customer Inventory||1,197,145.082 JPMorgan|
|No of oz served (contracts)||3 contracts (15,000 oz)|
|No of oz to be served (notices)||700 contracts (3,500,000 oz)|
|Total monthly oz silver served (contracts)||807 contracts (4,035,000 oz)|
|Total accumulative withdrawal of silver from the Dealers inventory this month||nil|
|Total accumulative withdrawal of silver from the Customer inventory this month||7,865,087.3 oz|
Today, we had 0 deposits into the dealer account:
total dealer deposit; 0 oz
total customer deposits: 1,197,145.082 oz
total withdrawals from customer: 1,843,791.062 oz
And now SLV:
we had another huge withdrawal of 1.336 million oz of silver from the vaults of the SLV/Inventory rests at 322.06 million oz
Sept 8/we had a huge withdrawal of 1.524 million oz of silver from the SLV/Inventory rests tonight at 323.396 million oz.
Sept 4.2015:no changes in inventory at the SLV/rests tonight at 324.923 million oz
sept 3/we had a small withdrawal of 140,000 oz of silver from the SLV/Inventory rests at 324.923 million oz
Sept 2: we had a small withdrawal of 859,000 oz of silver from the SLV vaults/inventory rests tonight at 325.063 million oz
September 1/no change in inventory over at the SLV/Inventory rests tonight at 325.922 million oz
August 31.a huge addition of 954,000 oz were added to inventory today at the SLV/Inventory rests at 325.922 million oz
August 28.2015: no change in inventory at the SLV/Inventory rests tonight at 324.698 million oz
August 27.no change in inventory at the SLV/Inventory rests at 324.698 million oz
August 26.2015/no change in inventory at the SLV/Inventory rests at 324.698 million oz
August 25.2015:no change in inventory at the SLV/Inventory rests at 324.698 million oz
August 24./no change in inventory at the SLV/Inventory rests at 324.698 million oz
August 21.2015/ no change in inventory at the SLV/Inventory rests at
324.698 million oz
August 20.2015:/no changes in inventory at the SLV/Inventory rests tonight at 324.698 million oz
August 19/no changes in inventory at the SLV/Inventory rests tonight at 324.698 million oz
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. * * * * *
1.the huge increase in UK household debt
2. in London the huge 5% premium on gold bullion USA eagles and 8,5% on sovereigns, 4% on Krugerrands and Canadian maples
3. in silver, premiums on regular bars: 9.5%
4. in silver, silver maples are 32% ie. spot plus $4.75 and the huge delays in receiving them.
Britain’s £173 Billion “Debt Timebomb”
UK households are sitting on a £173 billion debt time bomb after once again being lured into a spending splurge by banks and credit card companies.
The startling rise in debt levels due to people splashing out on new cars, TVs, conservatories, luxury items, consumer goods and home improvements was uncovered in an investigation by Money Mail.
With a rise in interest rates imminent for the first time in more than eight years, fears are growing that many families will be left struggling with repayments.
The amount of borrowing being taken on by households continues to grow at a startling rate, spurred on by hundreds of offers for credit cards and loans.
Bank of England governor Mark Carney has sent a letter to all fund managers asking for reassurance they are able to deal with an anticipated rush of investors making emergency cash withdrawals to cover their mortgages and other debts.
Read full This Is Money article
Today’s Gold Prices: USD 1122.30, EUR 1002.50 and GBP 730.38 per ounce.
Yesterday’s Gold Prices: USD 1120.85, EUR 1003.49 and GBP 728.27 per ounce.
Note: Premiums on gold have remained steady but silver premiums continue to move higher – especially on silver eagles.
Gold has moved marginally lower today but remains just above $1,120 per ounce, not far from where they were this time yesterday, after they snapped four days of losses yesterday to rise 0.2%.
Gold in Singapore was marginally lower and in early European trading as it gave up the gains from yesterday. Lacklustre trading continues and gold remains locked in a tight $19 range between $1,117.50/oz and the high yesterday of $1,126.30/oz for the last three days.
Silver is down 0.3%, after it outperformed yesterday rising 1.8%, its biggest one-day rally in nearly two weeks.
Platinum’s down 0.3%, and palladium is up 0.6% up for a third day and up 11% in recent days as it bounces from five year lows.
Gold Climbs for Second Day on Dollar Weakness Amid Asian Rally – Bloomberg
Gold firms above 3-wk low as traders await Fed’s rate view – Reuters
Gold prices gain in Asia as investors cautious ahead of Fed next week – Investing.com
Palladium Poised for Biggest Gain This Month on Supply Threat – Bloomberg
Treasure hunter says he has found 100 tons of Soviet gold hidden from Nazis during WWII – RT Question More
Platinum upgrade to golden reserve status seen as monetary alchemy – Reuters
Advice to Putin: Default on foreign debt, put reserves into gold and BRICs bonds – Goldseek.com
When Governments mess with the price of money… – Casey Research
Britain sitting on a £173bn debt time bomb – and with rates set to rise its ticking even louder – The Mail Online
Isle of Man tax haven with tailless cats becomes Bitcoin hub – Bloomberg
I brought this to your attention last night with the release of inventory movements. Needless to say, is the fact that gold is bleeding from the comex and they may not have enough registered or “for sale’ gold to cover what is asked for delivery in Oct, November and December:
(courtesy zero hedge)
Something Just Snapped At The Comex
Just over one month ago, when looking at the latest changes in registered gold held at the Comex ,we were stunned not only by the collapse in this series to a record low of just over 350k ounces or barely over 10 tons, but also by the surge in “gold coverage”, or the amount of paper gold claims on physical gold, which exploded to a record high 124 per ounce.
This is what we said on August 3:
While on its own, gold open interest – which merely represents the total potential claims on gold if exercised – is hardly exciting, as we have shown previously it has to be observed in conjunction with the physical gold that “backs” such potential delivery requests, also known as the “coverage ratio” of deliverable gold.
It is here that things get a little out of hand, because as the chart below shows, all else equal, the 43.5 million ounces of gold open interest and the record low 351,519 ounces of registered gold imply that as of Friday’s close there was a whopping 123.8 ounces in potential paper claims to every ounces of physical gold.
This is an all time record high, and surpasses the previous period record seen in January 2014 following the JPM gold vault liquidation.
Another way of stating this unprecedented ratio is that the dilution ratio between physical gold and paper gold has hit a record low 0.8%. Indicatively, the average paper-to-physical coverage ratio since January 1, 2000 is a “modest” 19.1x. As of Friday it had soared to more than 6 times greater.
We showed this record surge in gold claims as follows:
But if last month was shocking, then what the COMEX revealed yesterday was absolutely jaw-dropping.
Here is the most recent update provided by the CME on eligible and registered gold.
What it reveals is that while JPM saw another 90,000 ounces of gold once again withdrawn from its vault, this time in the eligible category, for some reason a whopping 121,124 ounces of registered gold were reclassified as eligible. In doing so, JPM’s registered gold (red line in chart below) tumbled to a record low of just 19,718 ounces – an 86% collapse in just one day – and well under 1 ton of gold, some 600 kilos of physical gold available to meet delivery requests to be specific!
JPM’s dramatic adjustment also meant that total Comex registered gold has likewise tumbled to the lowest in history of just 202,054 ounces – just over 6 tons – available for delivery.
Zooming in only on the registered gold since 2014:
Not surprisingly, the latest collapse in registered gold took place while the gold open interest remained flat, and in fact has been modestly rising in the past year as seen below:
Which brings us to the punchline chart: the Comex gold “coverage” ratio, or the amount of paper claims for every ounce of physical. As of Friday this number was literally off the chart (it would not have fit on the chart below), soaring to a mindblowing 207 ounces of paper gold claims for every ounce of deliverable gold. This also means that the dilution ratio between physical gold and paper gold has hit a new all-time low of just 0.48%!
And while we know what caused this epic surge in potential claims on gold – namely the relentless outflow in registered gold – what we don’t know is whether this is a systemic event, one which threatens the next Comex gold delivery request with an “insufficient product” response, and a potential default, or simply a one day abnormality.
What we do know is that, if only for one day, something at the Comex has snapped.
We will keep a close eye on today’s Comex update to see if JPM reverse this “adjustment” and adds at least a few more tons of deliverable gold to its vault, and if not, perhaps a phone call or two may be in order.
“The information in this report is taken from sources believed to be reliable; however, the Commodity Exchange, Inc. disclaims all liability whatsoever with regard to its accuracy or completeness. This report is produced for information purposes only.” – disclaimer now posted on the Comex gold and silver daily warehouse stock report as of Monday, June 3, 2013 – Investment Research Dynamics – June 4, 2013
Yesterday I published an article detailing the Comex gold futures to deliverable physical gold ratio that is now north of 200:1. But an erudite colleague of mine, John Titus of “Best Evidence,” correctly pointed out that: “They are probably bluffing. In other words, the real number is significantly higher than 200:1.”
For the record, John does more thorough research on the economic numbers and reports that he studies than anyone I’ve ever come across. And he does it with the trained analytic eye of a seasoned patent litigation attorney.
Let’s put everything in perspective. The numerical reports from which fancy graphs and and dry detailed data presentations are created originate from the Too Big To Fail Banks. I’ve said for quite some time that IF the bullion banks who control the Comex and the LBMA are submitting honest data reports for the Comex and LBMA, it would be the only business line in which they do not hide the truth and report fraudulent numbers. What is the probability of that?
JP Morgan was recently caught stuffing proprietary Comex futures short-sell trades into the “Managed Money” account category of the COT report. The CFTC scolded JPM and slapped them with a whopping $650,000 – LINK. Does anyone really believe that the CFTC wrist-slapping corrected any fraudulent data reporting by the likes of JP Morgan? Really?
Put your “think like a criminal hat” on for a moment. You know that the people who care about this sort of thing already know that the there’s a paper vs. physical problem in the market. So just show them a number that they’ll buy into and that will be “the number.” Most analysts will accept that number at face value and use that in their articles and blog posts. That number then becomes accepted in goldbug circles as the “real” number.
But the truth of the matter is that they are more than likely reporting numbers they want us to see, not the real numbers. For instance, the silver market is now seizing up from lack of supply. Please see this report from Greg Hunter and David Morgan if you are still skeptical: Retail Silver Has Seized Up.
Yet, the Comex bank custodians are reporting over 51 million ounces of silver available fore delivery – LINK. In fact, CNT – an official supplier to the U.S. mint – is showing 13.3 million ounces of deliverable silver. So why is there’s a shortage of silver at the U.S. mint? IF that silver were actually in the vault, the U.S. mint could buy a spot contract – September has a silver contract open – and take immediate delivery.
Also, why did the CME, unannounced, start slipping that little accuracy disclaimer into its daily gold and silver inventory reports in 2013? I’ll let you draw your own conclusion about the truth.
The silver market is seizing up which means that there’s a severe shortage of silver available. It is also showing up in the LBMA wholesale market based on the backwardation in gold and silver forward contracts that have been observed for several weeks. It means that any visible inventories reports from ETFs and Comex/LBMA banks custodial vaults are fraudulent. That includes SLV reports.
It also means that the recent discovery that the LBMA altered its gold refining flow statistics, revising what was originally reported to be 6,601 tonnes of gold cleared by the LBMA in 2013 down by 2,000 tonnes to 4600 tonnes, are likely off the mark. That’s a big miss, given that the total global mine production annually is around 2500 tonnes.
The significance of this is that it’s easier to explain how 4600 tonnes of gold was refined into bars and sent to Asia than 6600 tonnes, given that the total global supply of gold from mine production + scrap production was reported to be slightly more than 3000 tonnes.
From where did that extra 1600 tonnes come? The REAL question is, from where did the extra 2600 tonnes come if we use the original number? And is the 6600 tonne number a good number? Was the real number even higher?
The obvious conclusion is that the supply deficits in gold and silver are being remedied by hypothecating gold and silver bars from allocated accounts held at bullion banks, including the accounts held in behalf of the gold/silver ETFs, like GLD and SLV. This is why ABN Amro and Rabobank stopped allowing their physical gold account investors to take physical delivery of the gold they thought they have invested in – the gold was not there to deliver. This also occurred in 2013.
Now for the final blow to any skeptics. You’ll note that the LBMA revised down the amount of gold it cleared from refineries in 2013. But you’ll also note that the Comex inventory report disclaimer at the top of this post was first inserted into the daily Comex inventory reports in June 2013. See any coincidences? Bueller…
Bill Murphy and GATA have maintained for years that the fraud and corruption in the precious metals market would eventually be revealed as the biggest financial fraud scheme in history. It would seem that the cracks in the wall of this scheme are growing wider and it’s becoming easier to see rays of truth.
History tells us that all Ponzi schemes and market interventions fail. I believe we are on the cusp of a massive failure in the scheme to cover up the truth about the precious metals market.
(courtesy Dave Kranzler /IRD)
Sure, you can’t eat a bar of gold and it just sits in storage like a Pet Rock that’s been cast aside by its bored owner. But try selling the Indians or Chinese a paper gold bar and see how far you get. You might end up with a knife in your forehead.
The stench has been growing stronger by the day. Many of us have been writing for years about the extreme imbalance between the paper futures open interest vs. the underlying amount of gold being reported as available for delivery. The latest disclosure from the CME is that the ratio of paper gold vs. the amount of deliverable ounces has spiked to over 200:1.
As of last Friday, JP Morgan had 89.4k ounces withdrawn from the “customer”/ eligible account in its vault and it moved 122k ounces of gold from its “deliverable”/ registered account into its customer account. What the true nature of those transactions were – i.e. who the counterparties were and did in fact any real gold actually leave JP Morgan’s gold vault – is anyone’s guess due the intentional opacity of disclosure on the Comex.
But the bottom line is that, as of last Friday, the Comex vaults collectively now show 202k ounces of gold in the “registered” / deliverable accounts of the Comex vault custodians. As of today’s trading, the “preliminary” gold futures open interest rose to 419k contracts representing 41.9 million ounces of paper gold. This would, preliminarily, put the ratio of paper gold to deliverable physical gold at an astonishing 207:1 ratio.
The amount of “deliverable” gold on the Comex is the lowest that I’ve seen it in the time I’ve been following the Comex data avidly since 2002. Please note that the preliminary open interest is almost always revised, most typically a bit lower, by the time the Final report is issued the next day. But based on many years of tracking this data, it is likely that any revision will not move the “needle” on that 207:1 ratio by much in either direction.
Nothwithstanding all the other information contained in this disclosure, this number represents the confirmation that the Comex is nothing more than a pure paper gold market. It’s nearly 100% derivatives. It’s the imposition of derivatives by the Fed and the U.S. Treasury – via their agent bullion banks – on the gold market in order to control the pricing discovery mechanism.
In other words, the Comex gold market is now a 100% artificial gold market.
I find it it quite interesting that the elitists overseeing this operation on the Comex are willing to advertise the 200:1 paper:gold ratio when they have the means at their disposal to hide that number or to make it look a lot smaller.
There’s some kind of message they’re sending to anyone who cares about this sort of thing. It’s either “f*ck you” we’re in control” or “help, we’re in trouble on our paper gold short position.” Or a combination of both.
The implications embedded in all three of those possibilities are quite horrifying to contemplate.
It’s quite obvious that there’s a problem with the supply of physical gold that is readily available for delivery. The same is true of the retail silver market, in which available supply at the retail level shrinks by the day. Premiums on a simple roll of 20 silver eagles are now over $5 at big coin dealers claiming to have inventory. Most dealers have been wiped out of most if not all of their entire inventory of silver SKU’s.
In my opinion, that head-splitting 200:1 ratio of paper to deliverable gold on the Comex is the surest sign that the market for gold and silver is in crisis mode. The term “crisis” also describes the state of condition of the U.S. stock market and, ultimately, the entire current U.S. financial and economic system.
My goodness, we must be hitting home: mainstream is beginning to get the idea that there is a difference between paper gold and real gold
(courtesy Bloomberg/Peter Hambro)
Mining exec Hambro tells Bloomberg that ‘paper gold’ isn’t real metal
Submitted by cpowell on Wed, 2015-09-09 15:05. Section: Daily Dispatches
11:04a ET Wednesday, September 9, 2015
Dear Friend of GATA and Gold:
Mining entrepreneur Peter Hambro, founder and chairman of the Russian mining firm Petropavlovsk, today explained to a couple of Bloomberg Television journalists the difference between “paper gold” and real metal in hand. The former, Hambro noted, carries serious counterparty risk. Hambro also noted that central banking has turned into the propaganda business, the business of “managing expectations.”
The interview with Hambro is a little less than 5 minutes long and can be viewed at the Bloomberg News Internet site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
The Indian government continues to try and confiscate the wealth of its citizens’ gold. This scheme is 4 years old and every time they try it, the citizens say absolutely no, “we are not handing in our physical gold to receive paper gold”
Indian government approves scheme for paperizing gold
Submitted by cpowell on Wed, 2015-09-09 15:33. Section: Daily Dispatches
India’s Modi Moves Closer to Tapping Gold Hoard to Cut Imports
By Bibhudatta Pradhan and Swansy Afonso
Wednesday, September 9, 2015
India moved a step closer to selling gold-backed bonds and allowing banks to tap idle jewelry and bars held by households and temples to cut reliance on imports.
Prime Minister Narendra Modi’s cabinet today approved the gold monetization plan and sale of sovereign bonds by the Reserve Bank of India, the government said in a statement. The plans were announced by Finance Minister Arun Jaitley in February as measures to woo Indians away from physical gold. …
The monetization plan will allow Indians to deposit their jewelry or bars with banks and earn interest, while the banks will be free to sell the gold to jewelers, thereby boosting supply. The deposits can be for a period of one year to 15 years with the interest on short-term commitments to be decided by the banks and those on long-term deposits by the government in consultation with the central bank. …
The plan may fail to draw people in large numbers because of Indians’ inherent love for holding physical gold and low interest rates likely to be offered by the banks.
Inadequate banking facilities in rural India, which makes up for 60 percent of physical gold demand, may also scupper the plan, according to the All India Gems & Jewellery Trade Federation.
“The schemes will succeed only if the banks offer interest rates of about 2.5 percent and do not require customers to declare the source of deposited gold below a certain limit,” Bachhraj Bamalwa, director of the federation, said by phone from Kolkata. “Indians’ love for physical gold and investment sentiment in the rural areas, which do not believe in such investment products, will determine the success of the plans.”
… For the remainder of the report:
Silver premiums skyrocketing (spot plus 32%)
(courtesy Profit Confidential)