sept 9/Dealer gold (Registered Gold) at the comex falls to 5 tonnes/Comex continues to bleed both gold and silver/gold and silver raid today/Another huge withdrawal of silver fro the SLV/Russia sends more armaments to Syria/Turkey getting closer and closer to civil war/

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

Gold $1106.50

Silver:  $14.65

 

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.

(report Harvey)

2.Gold trading overnight, Goldcore

(/Mark OByrne)

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

(zero hedge)

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

(Citibank/Buiter)

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.

Unbelievable!!

(zero hedge)

10.  The Mises institute economist, Wilson states that the Greek government should repudiate their debt

(Mises Institute/Wilson)

11. Russia continues to supply armaments to Syria and they are warned by the USA.  Showdown coming

(zero hedge)

12. Turkey now closer and closer to civil war as citizens torch Kurd operations in Istanbul, Izmir, Ankara and southern cities

(zero hedge)

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

(JOLTS/zero hedge)

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:

(Dave Kranzler/IRD)

 

14.  Physical stories:

  1. Something snapped at the comex (zero hedge)
  2.  One commentaries on the faulty data at the comex (Dave Kranzler IRD)
  3.  One commentary explaining the high ratio of paper gold to real gold at 207/1
  4. Greg Hunter interviews David Morgan who states categorically that the silver market has seized up.
  5. 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)
  6.  Bill Holter’s commentary tonight is titled:  “The Breaking Point?”
  7.  Peter Hambro explains to Bloomberg that there is a difference between paper gold and real gold  (Bloomberg/Peter Hambro)
  8.  Silver premiums rising exponentially/Profit Confidential

 

 

 

and well as other commentaries…

 

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

The total gold comex open interest rose from 419,002 up to 421,732 for a gain of 2,730 contracts despite the fact that gold was down $0.20 with respect to yesterday’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 stopped with its decline as gold ounces standing rose. 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 now enter the delivery month of September and here the OI rose by 36 contracts up to 211 . We had 0 notices filed yesterday so we gained 36 contracts or 3600 additional oz will stand for delivery in this non active month of September. The next active delivery month is October and here the OI fell by 165 contracts up to 26,616. The big December contract saw it’s OI rise by 3,028 contracts from 286,904 up to 289,932. The estimated volume on today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was estimated at 186,145 which is poor. The confirmed volume yesterday (which includes the volume during regular business hours + access market sales the previous day was poor at 161,275 contracts.
Today we had 4 notices filed for 400 oz.
 
And now for the wild silver comex results. Silver OI fell by 1891 contracts from 157,506 down to 155,615 as silver was down by 16 cents in price yesterday . As mentioned above we always have a huge contraction in the OI of an upcoming active precious metal month.  The bankers continue to pull their hair out trying to extricate themselves from their silver mess (the continued high silver OI with it’s extremely low price, combined with the banker’s massive physical shortfall) as the world senses something is brewing in the silver arena (judging from the high volume every day at the comex). We are now in the active delivery month of September. Here the OI fell by 149 contracts to 703. We had 140 notices filed yesterday, so we lost 9 contracts or an additional 45,000 oz will not stand for delivery in this active delivery month of September.
The big December contract saw its OI fall by 1667 contracts down to 120,905.The estimated volume today was estimated at 32,600 contracts (just comex sales during regular business hours) which is fair.  The confirmed volume yesterday (regular plus access market) came in at 46,618 contracts which is good in volume.
We had 140 notices filed for 700,000 oz.

September contract month:

Initial standings

September 9.2015

Gold
Ounces
Withdrawals from Dealers Inventory in oz   nil
Withdrawals from Customer Inventory in oz 229.645 oz

Manfra, Scotia

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
 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 Manfra:  32.15 oz  1 kilobar
ii) Out of Scotia:  197.495 oz
total customer withdrawal: 229.645oz
We had 0 customer deposit:

Total customer deposit: nil  oz

We had 1  adjustments:
 i) out of Scotia;
16,649.029 oz was adjusted out of the dealer and this landed into the customer account of Delaware

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

.
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 4 contracts of which 0 notices were stopped (received) by JPMorgan dealer and 0 notices were stopped (received) by JPMorgan customer account.
 
To calculate the final total number of gold ounces standing for the August contract month, we take the total number of notices filed so far for the month (16) x 100 oz  or 900 oz , to which we  add the difference between the open interest for the front month of September (211 contracts) minus the number of notices served upon today (4) x 100 oz   x 100 oz per contract equals the number of ounces standing.
 
Thus the initial standings for gold for the September contract month:
No of notices served so far (16) x 100 oz  or ounces + {OI for the front month (211) – the number of  notices served upon today (4) x 100 oz which equals 22,30000 oz  standing  in this month of Sept (0.6936 tonnes of gold).
we gained 36 contracts or an additional 3600 oz will stand in this non active delivery month of September.
Somebody was in urgent need of physical gold today.
Total dealer inventory 185,314.061 or 5.764 tonnes
Total gold inventory (dealer and customer) =7,072,666.23 or 219.98  tonnes)
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.
 
 the comex continues to bleed gold.
end
And now for silver

September silver initial standings

September 9 2015:

Silver
Ounces
Withdrawals from Dealers Inventory nil
Withdrawals from Customer Inventory  1,843,791.062 oz

(CNT,Scotia)

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

we had 0 dealer withdrawal:
total dealer withdrawal: 0  oz
We had 1 customer deposits:
 i) Into JPMorgan: 1,197,145.082

total customer deposits: 1,197,145.082  oz

We had 2 customer withdrawals:
ii) Out of CNT:  1,189,429,300 oz
iii) Out of Scotia: 654,370.762 oz

total withdrawals from customer: 1,843,791.062   oz

we had  0  adjustments
Total dealer inventory: 51.213 million oz
Total of all silver inventory (dealer and customer) 165.965 million oz
 The comex is  bleeding silver badly.
The total number of notices filed today for the September contract month is represented by 3 contracts for 15,000 oz. To calculate the number of silver ounces that will stand for delivery in September, we take the total number of notices filed for the month so far at (807) x 5,000 oz  = 4,035,000 oz to which we add the difference between the open interest for the front month of September (703) and the number of notices served upon today (3) x 5000 oz equals the number of ounces standing.
Thus the initial standings for silver for the September contract month:
807 (notices served so far)x 5000 oz +( 703) { OI for front month of August ) -number of notices served upon today (3} x 5000 oz ,=7,535,000 oz of silver standing for the September contract month.
we lost 9 contracts or an additional 45,000 oz will not stand in this active delivery month of September.
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
And now the Gold inventory at the GLD:
Sept 9/2015: no changes in gold inventory at the GLD/rests tonight at 682.35 tonnes
Sept 8/ a slight withdrawal and this no doubt was to pay for fees/withdrawal of .24 tonnes/GLD inventory tonight at 682.35 tonnes
Sept 4/ again no changes in gold tonnage at the GLD/Inventory rests at 682.59 tonnes
sept 3/no change in gold tonnage at the GLD/inventory rests at 682.59 tonnes.
Sept 2.2015: no change in gold tonnage at the GLD/inventory rests at 682.59 tonnes
Sept 1/2015: no change in gold tonnage at the GLD/Inventory rests at 682.59 tonnes
August 31./no change in gold tonnage at the GLD/Inventory rests at 682.59 tonnes
August 28.2015:/no change in gold tonnage at the GLD/Inventory rests at 682.59 tonnes
August 27./ a huge addition of tonnage at the GLD to the tune of 1.49 tonnes/Inventory rests at 682.59 tonnes
(I believe that the GLD has now run out of physical gold and they cannot supply China from this vehicle)
August 26.2015/ no change in tonnage at the GLD/Inventory rests at 681.10 tonnes
August 25.2015; an addition of 3.27 tonnes of gold into the GLD/Inventory rests at 681.10 tonnes.
August 24./no changes tonight at the GLD/Inventory rests at 677.83 tonnes
August 21.2015/another huge addition of 2.35 tonnes of gold into the GLD/(not sure if this is real physical or not)/inventory rests tonight at 677.83 tonnes
August 20/2015:a huge addition of 3.57 tonnes of gold into the GLD/Inventory rests tonight at 675.44 tonnes
August 19/no changes in inventory/GLD inventory rests tonight at 671.87 tonnes
August 18.2015: no changes in inventory/GLD inventory rests tonight at 671.87 tonnes
Sept 9/2015 GLD : 682.35 tonnes
end

And now SLV:

Sept 9.2015:

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

September 9/2015:  tonight inventory rests at 322.060 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 10.0 percent to NAV usa funds and Negative 9.6% to NAV for Cdn funds!!!!!!!
Percentage of fund in gold 62.2%
Percentage of fund in silver:37.6%
cash .2%( Sept 9/2015).
2. Sprott silver fund (PSLV): Premium to NAV rises to+.33%!!!! NAV (Sept 9/2015) (silver must be in short supply)
3. Sprott gold fund (PHYS): premium to NAV falls to – .41% to NAV September 9/2015)
Note: Sprott silver trust back  into positive territory at +.33% Sprott physical gold trust is back into negative territory at -.41%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)

Please note:

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 debt mountain stacks up

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

DAILY PRICES
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.
(LBMA AM)

GoldCore Bullion Coin & Bars

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.

IMPORTANT NEWS

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

IMPORTANT COMMENTARY

end

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.

 end
Dave is in my camp on the following:
two commentaries
(courtesy Dave Kranzler/IRD)

Anyone Who Believes The Comex Numbers Is Very Naive

“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.

end

(courtesy Dave Kranzler /IRD)

The Comex Is Facing A Gold Crisis

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.

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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

Section:

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:

http://www.bloomberg.com/news/videos/2015-09-09/is-gold-still-a-safe-hav…

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org

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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”

 

(courtesy GATA/Bloomberg)

 

Indian government approves scheme for paperizing gold

Section:

India’s Modi Moves Closer to Tapping Gold Hoard to Cut Imports

By Bibhudatta Pradhan and Swansy Afonso
Bloomberg News
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:

http://www.bloomberg.com/news/articles/2015-09-09/india-s-modi-moves-clo…

 

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Silver premiums skyrocketing  (spot plus 32%)

(courtesy Profit Confidential)

Silver Price Forecast: Rush to Physical Silver Indicates System is On the Verge of Economic Collapse

By Wednesday, September 9, 2015

Silver Price ForecastThere is no doubt that silver prices have been crushed in recent years. Since its peak of around $50.00 per ounce in April 2011, the silver spot price has plunged more than 70% to $14.55. However, to establish an outlook for the price of the grey metal, we have to set one thing straight first: what do we mean by silver price?

You see, silver trades on many different venues. You can get paper silver on futures exchanges such as COMEX; you can buy silver exchange-traded funds (ETFs) on stock exchanges; or you can get physical silver from your local bullion store. To me at least, the real price of silver should be the price you pay to get the physical metal into your vault.

And on that front, here is an interesting pattern about the different silver prices: