Nov 5/A monstrous withdrawal of 14.53 tonnes of gold from the GLD/Gold and silver whacked a bit/Greece set to turn out the lights on many of its citizens/CIA and the Saudis are to give weapons to the ISIS rebels/Israel and uSA conduct training sessions in the Sinai/USA now believes that the Russian aircraft that was downed was caused by a bomb/Ratio of physical to paper gold rises to 293 : 1 at the comex/

Gold:  $1104.40 down $2.10   (comex closing time)

Silver $14.99  down 7 cents

In the access market 5:15 pm

Gold $1104.00

Silver:  $15.00

Remember tomorrow is the jobs (FOMC report) and expect massive volatilty.

 

 

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

At the gold comex today,  we had a very poor delivery day, registering 0 notices 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 208.24 tonnes for a loss of 95 tonnes over that period.

In silver, the open interest fell by only 144 contracts despite silver being down 18 cents in Wednesday’s trading.  The total silver OI now rests at 166,798 contracts In ounces, the OI is still represented by .834 billion oz or 119% of annual global silver production (ex Russia ex China).

In silver we had 0 notices served upon for nil oz.

In gold, the total comex gold OI rose by a rather large 2482 contracts to 446,382 contracts despite the fact that gold was down $7.70 yesterday.  We had 0 notices filed for nil oz today.

We had a monstrous withdrawal in gold inventory at the GLD to the tune of 14.53 tonnes  / thus the inventory rests tonight at 671.77 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,no change in silver inventory   / Inventory rests at 313.817 million oz.

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

1. Today, we had the open interest in silver fell by a tiny 144 contracts down to 166,798  despite the fact that silver was down 18 cents with respect to yesterday’s trading.   The total OI for gold rose by a rather large 2482 contracts to 446,382 contracts despite the fact that gold was down $7.70 yesterday.

The fact that OI continues to remain high in silver necessitates the bankers to continue raiding hoping to shake the leaves from both the gold and silver trees.  Remember that December is generally a big delivery month for both gold and silver

(report Harvey)

2.Gold trading overnight, Goldcore

(/Mark OByrne)

3. ASIAN AFFAIRS
 i) Last night, 9:30 pm WEDNESDAY night, THURSDAY morning Shanghai time.  Japan Nikkei rises, Shanghai rises as well.
Offshore value of yuan remains constant/Shanghai composite back into the bull market phase as PBOC outlaws shortselling by putting those offenders in jail.
(zero hedge)
4.  EUROPEAN AFFAIRS
 and you thought that Greece was fixed.  The Greek power company is set to put out the lights on 2.1 million customers who have not paid their bills. Total debt o/s amounts to 2.5 billion euros.
5. GLOBAL AFFAIRS
You know that something is wrong when this happens:
Investors flocking into Kenyan 91 day treasuries!!
(courtesy zero hedge)
6. RUSSIAN AND MIDDLE EASTERN AFFAIRS
 i) USA special ops already on the ground in Syria/also 4,000 Russian troops already in Syria/an accident waiting to happen
(zero hedge)
ii)  CIA and the Saudis gives ISIS and militants in Syria advanced weaponry…especially surface to air missiles.
(zero hedge)
iii) USA officials now believe that it was a bomb that caused the downing of the Russian aircraft.  Three personnel at the Sharm el Sheikh airport has been dismissed
(zero hedge)
iv) Scary!!  USA and Israel performing war exercises in the Sinai exactly where the Russian airliner when down
(Times of Israel/your news wire)
7.  OIL RELATED STORIES
 i) Oil retraces back into the 45 dollar column
(zero hedge)
ii)  Then late this afternoon, Saudi Arabia offers Europe huge discounts.
Saudi Arabia’s market share for crude in Europe has plummeted from 13% down to 10%
(courtesy zero hedge)
8.  EMERGING MARKETS
 none

9 USA stories/Trading of equities NY

i) Challenger Grey reports huge increase in layoffs in the energy sector/initial claims rise

(Challenger/Grey/zero hedge)

ii)  unit labour costs rise less than expected/this bothers the Fed greatly

(zero hedge)

iii) Because GDP data and the unemployment rate are bogus there is another way of calculating economic output and the BLS actually reports this on a quarterly basis.  It shows economic  output is on the decline as well as actual jobs.

(Economic Output/BLS/zero hedge)

iv)  A very important piece….the Fed is trapped.  They see huge bubbles and must raise rates even though it will kill multinationals and EM nations.  Now the Fed is trying to justify a rate rise by showing hidden inflation in rents.

(zero hedge)

 

v)  Another high tech company Kura which IPO’d yesterday is crashing along with Valeant.

(zero hedge)

vi ) Bill Ackman of Pershing Square is not having a good hair day
(courtesy zero hedge)

vii)

The USA wins its first big case against 2 Rabobank traders for rigging Libor.
The author correctly states that this should embolden other prosecutors to start actions against precious metals and other manipulations orchestrated by the bankers.
It is impossible to rig libor by itself without rigging the metals as the two go hand in hand.
(courtesy Bloomberg)

10.  Physical stories

i) Ratio of paper gold to registered gold at the comex rises to 293 to one, the highest on record

(zero hedge)

ii)  Bill Holter’s piece tonight is entitled:  “A Tool? A Fool? …Or rewriting history?”

iii) Dave Kranzler on silver:  the most manipulated product in the universe!

(Dave Kranzler/IRD)

 

Let us head over to the comex:

The total gold comex open interest rose from 443,900 up to 446,382 for a huge gain of 2482 contracts despite the fact that  gold was down $7.70 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. We now witness both developments today . The November contract fell by 46 contracts down to 247.  We had 0 notices filed yesterday, so we lost 46 contracts or 4600  additional oz that will not stand for delivery in this non active delivery month of November. The big December contract saw it’s OI fall by 1567 contracts from 269,748 down to 268,181. The estimated volume today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was 139,384 which is poor. The confirmed volume yesterday (which includes the volume during regular business hours + access market sales the previous day was fair at 174,368 contracts and aided by copious HFT trading.
Today we had 0 notices filed for nil oz.
And now for the wild silver comex results. Silver OI fell by only 144 contracts from 166,942 down to 166798 despite the fact that the price of silver was down by a considerable 18 cents in yesterday’s trading. 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. The huge rise in silver OI necessitates  massive raids by the bankers as they had to cover their rather large shortfall.  We now enter the non active delivery month of November. The OI fell by 4 contracts down to 7. We had 0 notices filed yesterday so we lost 4 silver contracts standing or 20,000 additional oz will not stand in this non active delivery month of November.  The huge (and active) delivery month of December saw it’s OI fall by 1289 contracts down to 100,360. The estimated volume for today (regular hours Comex) came in at a very good 43,438.  The confirmed volume yesterday (comex + globex) was an very good at 43,304..
We had 0 notices filed for nil oz.

November contract month:

INITIAL standings for November/First day notice

Nov 5/2015

Gold
Ounces
Withdrawals from Dealers Inventory in oz   nil
Withdrawals from Customer Inventory in oz  nil  2,089.75 oz

(Scotia)

Deposits to the Dealer Inventory in oz nil
Deposits to the Customer Inventory, in oz  nil
No of oz served (contracts) today 0 contracts

nil oz 

No of oz to be served (notices) 247 contracts

(24,700 oz)

Total monthly oz gold served (contracts) so far this month 6 contracts

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 5361.2 oz

 

AGAIN NO GOLD ENTERS THE COMEX
 Today, we had 0 dealer transactions
Total dealer withdrawals:  nil oz
we had 0 dealer deposits
total dealer deposit:  zero
We had 1 customer withdrawal:
i)Scotia
total customer withdrawal 2,089.75  oz
We had 0 customer deposits:

Total customer deposits nil  oz

we had 0  adjustments:

 JPMorgan has a total of 10,777.279 oz or.3352 tonnes in its dealer or registered account.
***JPMorgan now has 580,809.509 oz or 18.06 tonnes in its customer account.
.
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 final total number of gold ounces standing for the Oct contract month, we take the total number of notices filed so far for the month (6) x 100 oz  or 600 oz , to which we  add the difference between the open interest for the front month of Nov.( 247 contracts) minus the number of notices served upon today (0) x 100 oz   x 100 oz per contract equals the number of ounces standing.
 
Thus the initial standings for gold for the Nov. contract month:
No of notices served so far (6) x 100 oz  or ounces + {OI for the front month (247)– the number of  notices served upon today (0 x 100 oz which equals 25,300 oz  standing  in this month of Nov (0.7869 tonnes of gold).
We thus have 0.7869 tonnes of gold standing and only 4.708 tonnes of registered gold (for sale gold/dealer gold) waiting to serve upon those standing.
Total dealer inventory 151,384.629 oz or 4.708 tonnes
Total gold inventory (dealer and customer) =6,695,053.836   or 208.24 tonnes)
Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 208.24 tonnes for a loss of 95 tonnes over that period.
 
The liquidation of gold at the comex continues today in the customer account, the dealer account remains at a low 4.7 tonnes.
end
And now for silver

November initial standings/First day notice

Nov 5/2015:

Silver
Ounces
Withdrawals from Dealers Inventory nil
Withdrawals from Customer Inventory 681,595.600 oz 

(Brinks, CNT,Scotia)

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) 7 contracts 

35,000 oz)

Total monthly oz silver served (contracts) 5 contracts (25,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month nil oz
Total accumulative withdrawal  of silver from the Customer inventory this month 1,584,019.3 oz

Today, we had 0 deposit into the dealer account:

total dealer deposit; nil oz

we had 0 dealer withdrawals:
total dealer withdrawal: nil  oz
We had 0 customer deposits:

total customer deposits: nil oz

We had 3 customer withdrawal:
i) Out of Scotia: 400,355.100 oz
ii) Out of CNT:  280,289.6 oz
iii) Out of Brinks:  1000.900 oz

total withdrawals from customer: 681,595.600   oz

we had 0 adjustments
Total dealer inventory: 43.060 million oz
Total of all silver inventory (dealer and customer) 162.842 million oz
 *
The total number of notices filed today for the November contract month is represented by 0 contracts for nil oz. To calculate the number of silver ounces that will stand for delivery in Nov., we take the total number of notices filed for the month so far at (5) x 5,000 oz  = 25,000 oz to which we add the difference between the open interest for the front month of November (7) 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 Nov. contract month:
5 (notices served so far)x 5000 oz +(7) { OI for front month of November ) -number of notices served upon today (0} x 5000 oz ,=60,000 oz of silver standing for the Nov. contract month.
we lost 4 contracts or 20,000 additional oz will not stand in this delivery month.
the  removal of silver from the comex vaults continues
 
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:
Nov 5/a huge withdrawal of 14.53 tonnes of gold from the GLD/rests tonight 671.77 tonnes
nov 4/ no change in gold inventory at the GLD/Inventory rests at 686.30 tonnes
Nov 3/another huge withdrawal of 2.98 tonnes at the GLD/Inventory rests at 686.30 tonnes. (in 3 days:  total withdrawal 8.04 tonnes)
Nov 2..2015: another huge withdrawal of 2.98 tonnes at the GLD/Inventory rests at 689.28 tonnes
oct 30/a huge withdrawal in gold inventory of 2.08 tonnes at the GLD/Inventory rests at 692.26 tonnes
Oct 29/no change in gold inventory at the GLD.Inventory rests at 694.34 tonnes
Oct 28.2015: a huge withdrawal of 1.2 tonnes in gold inventory/rests tonight at 694.34
Oct 27/no change in gold inventory/rests tonight at 695.54 tonnes
Oct 26.no change in gold inventory/rests tonight at 695.54 tonnes
Oct 23/ a huge withdrawal of 1.78 tonnes of gold at the GLD/Inventory rests at 695.54 tonnes
Oct 22./no change in gold inventory at the GLD/Inventory rests at 697.32 tonnes
Oct 21./we had no change in gold inventory at the GLD./Inventory rests at 697.32 tonnes.
Oct 20./no change in gold inventory at the GLD/Inventory rests at 693.75 tonnes/
Nov 5/2015 GLD :671.77 tonnes*
* London is having a tough time sourcing gold. I believe that the last few days of additional GLD gold is a paper gold addition and not real physical. I sure looks like there is stress inside the GLD!!
end

And now SLV

Nov 5/strange no change in silver inventory/rests tonight at 313.817 million oz/

Nov 4/2015: no change in silver inventory/rests tonight at 313.817 million oz/

Nov 3.2015; no change in silver inventory/rests tonight at 313.817 million oz/

Nov 2/a withdrawal of 716,000 oz from the SLV/Inventory rests tonight at 313.817 million oz

Oct 30.no change in silver inventory at the SLV/Inventory rests at 314.532 million oz

Oct 29/a big withdrawal of 1.001 million oz from the SLV/Inventory rests at 314.532 million oz

Oct 28.2015: no change in silver inventory at the SLV//inventory rests at 315.533 million oz.

Oct 27/no change in silver inventory at the SLV/Inventory rests at 315.533 million oz/

Oct 26/no change in silver inventory at the SLV/Inventory rests at 315.533 million oz/

Oct 23./no change in silver inventory at the SLV/Inventory rests at 315.533 million oz

Oct 22./no change in silver inventory at the SLV/Inventory rests at 315.533 million oz

Oct 21:a we had a small addition in silver ETF inventory of 381,000 oz/inventory rests tonight at 315.533 million oz

Oct 20.2015/ no change in silver ETF/Inventory rests at 315.152 million oz

Nov 5/2015:  tonight inventory rests at 313.817 million oz***
 ** the jury is still out if the addition of silver is real or paper silver
especially with London in silver backwardation.
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 10.5 percent to NAV usa funds and Negative 10.5% to NAV for Cdn funds!!!!!!!
Percentage of fund in gold 61.6%
Percentage of fund in silver:38.3%
cash .1%( Nov 5/2015).
2. Sprott silver fund (PSLV): Premium to NAV rises to+0.96%!!!! NAV (Nov 5/2015) (silver must be in short supply)
3. Sprott gold fund (PHYS): premium to NAV falls to – .58% to NAV Nov 5/2015)
Note: Sprott silver trust back  into positive territory at +0.96% Sprott physical gold trust is back into negative territory at -.58%Central fund of Canada’s is still in jail.
end
And now your overnight trading in gold and also physical stories that may interest you:
Trading in gold and silver overnight in Asia and Europe
(courtesy goldcore/Mark O’Byrne/Steve Flood)

Bitcoin Surges 55% In Month – Chinese Moving Capital Into Bitcoin and Gold

Bitcoin has been surging in value since mid October and gained more than 20% yesterday alone. At one point, it hit a yearly high of more than $491 (see chart).

GoldCore: Bitcoin
CoinTelegraph

In August, bitcoin fell to a low for 2015 near $200 amid turmoil in the Chinese and global stock markets.  But bitcoin transaction volume has been growing. Blockchain.info data shows that unique bitcoin wallet addresses—which are how users manage and trade bitcoin—are at an all-time high. Some have multiple bitcoin addresses, but such a spike suggests there are new users as well.

It’s not entirely clear what’s driven the most recent price gains. There is an assertion in an article on the front page of the FT today that the gains are due to Chinese people flocking to bitcoin in a giant pyramid scheme run on a Russian fraudsters website:

The price of the cryptocurrency bitcoin surged on Wednesday to its highest in more than a year amid a wave of Chinese testimonials for a “social financial network” called MMM, which bears the hallmarks of a pyramid scheme.

New members of MMM have to buy bitcoins to join the scheme, which is the brainchild of Sergey Mavrodi, a former Russian parliamentarian since jailed for fraud.

Although the article is unbalanced and simplistic, the truth regarding the root cause of the price movement of any market is of course much more complex – and there are many supply and demand issues to be considered.

GoldCore: Bitcoin price chart
Source: CoinDesk

 

Most bitcoin experts once again see Chinese demand as key.  As China has been devaluing its currency, the yuan, throughout the year and the Chinese are aware of the growing risks posed to the yuan and indeed the dollar and other fiat currencies.

Also, their recent experience of the stock market crash has made bitcoin and, of course, gold more attractive again. Hence the surge in demand for gold in China again. China’s gold buying rose 7.83% year on year to 814 tons in the first three quarters, industry data from the China Gold Association (CGA) showed yesterday.

There are increasing concerns of capital controls in China and Chinese investors and companies are seeking to diversify internationally and move savings and capital out of China.

Bitcoin is an easy way for people to swap out of yuan. Goldman Sachs analysts estimated earlier this year that 80% of bitcoin volume is exchanged in and out of the Chinese yuan. Once converted to bitcoin, the owners can then swap back into other fiat currencies and indeed, physical gold.

We see value in having an allocation to bitcoin and see it as complementary to owning physical gold and silver. It is clearly more volatile than gold and even silver and is not proven as a hedging instrument and safe haven asset. Therefore, it is more speculative and merits having a lower allocation than gold and silver bullion.

 

DAILY PRICES
Today’s Gold Prices: USD 1107.30, EUR  1024.40 and GBP 724.75 per ounce.
Yesterday’s Gold Prices: USD 1118.00, EUR  1024.09 and GBP 724.99 per ounce.
(LBMA AM)

GoldCore: Silver in USD - 1 Year

Gold lost $10.20 yesterday to close at $1107.50.  Silver was also down by $0.20 for the day closing at $15.09. Platinum lost $8 to $953.

 

Download Essential Guide To Storing Gold In Switzerland

GoldCore: The Essential Guide to Storing Gold in Switzerland

Mark O’Byrne

end

 

There Are Now 293 Ounces Of Paper Gold For Every Ounce Of Physical As Comex Registered Gold Hits New Low

Unlike Bitcoin, which has doubled in the past few weeks (as the predicted Chinese buying onslaught indeedmaterialized), it hasn’t been a good week for spot gold prices which have tumbled from $1,180 to just over $1,100. While the reason for the selling is unknown, with recurring speculation that an imminent Fed rate hike will make holding gold even more unwelcome in real terms (if not in India where gold now pays interest on par with inflation), what we do know is that as of yesterday the total registered gold at the Comex had dropped to a fresh record low following another transfer of “registered” gold into “eligible.”

 

This reduced overnight the total amount of registered gold by a third to just over 151,000 ounces, or under 5 tons as the zoomed in chart below shows.

 

And since the gold open interest continues to rise modestly…

 

… this means that as of today, the gold “coverage” ratio, or the amount of paper claims for every ounce of physical, has just hit a new all time high of 293 ounces of paper per ounce of registered physical.

 

Curiously, the last time we observed a comparable surge in the Comex dilution ratio took place just two months agowhen a comparable “adjustment” reduced JPM’s “Registered” inventory by 122,124 ounces. Back then many said the adjustment would be promptly reversed.

Two months later not only has that not happened, but JPM is now down to just 10,777 ounces of Registered while many other vaults continue to see either outright withdrawals or comparable adjustments.

How much longer can this exponential surge in the dilution ratio continue? We don’t know, although with less than 5 tons of registered gold left in the Comex vault system, we hope that the mystery of what is really going on at the Comex will finally be unveiled.

 

end

Dave Kranzler on Silver fundamentals:

(courtesy Dave Kranzler IRD)

Silver Is The Most Manipulated Market In History

The price of paper silver has been mauled since Janet Yellen and her band of FOMC merry clowns released their policy statement last Wednesday which made the claim that there was strong possibility that the Fed would hike its Fed Funds rate in December.   Silver is now down 8.5% since that statement hit the tape (click images to enlarge):

UntitledUntitled1

But as you can see, silver is still in an nice uptrend, up over 7% from the bottom it hit in late August.  Of course, in testament to just how manipulated the markets are, the S&P 500 – which should have experienced the same type of sell-off as silver and gold on the threat of higher rates – is up 1.3%.

Part of the reason silver may be getting hit is the news of a report from the investment conference in New Orleans last week that some company had invented an aluminum-based replacement for silver used in solar panels.  Obviously, if this were true, it would impact the amount of silver going into India (see this report in which the U.S. exporting 100’s of tons of silver India).  And it would impact the amount silver China is using in the development of its massive solar program.

However, if you investigate the “beneath the surface headlines” of this claim being made, the Company has not proved its technology works or is practical in commercial applications.  I’ve seen at least two claims by companies over the last 10 years that they’ve developed a pill to cure alcoholism. Still haven’t seen that cure  hit the market.  And for how many centuries has the world had to endure claims from “scientists” who state they had figured out how to convert lead into gold?  As for this company’s claim?  I’ll believe it when I see it in action.  Until then, it’s nothing but hot air.

Feel free to read the source story here:  Natcore swaps silver for aluminum in solar cells.

Until proven otherwise with real life, profit-making applications, I believe that this story will fall into history’s dust-bin of false-flags.  Seems a bit coincidental that this story emerges just as the Fed/bullion banks are in the process of raiding the paper precious metals markets…again.  The only thing missing from this story is Jordan Belfort (the Wolf of Wall Street) resurrecting his old Stratton Oakmont penny stock brokerage and taking this company public.

The anti-gold/silver propaganda is reaching epic levels again.  It also happens to coincide with another multiple-day run on the gold in GLD and a record-breaking run up in the paper/gold ratio on the Comex.   The paper to gold ratio at close to 300 is nothing more than a reflection of how desperate the banks are becoming to keep a lid on the price gold/silver.

This paper to underlying deliverable physical commodity ratio is many multiples beyond the ratio that the CFTC and CME allow in ANY other commodity market. It completely destroys the purpose of futures markets.  It’s crystal clear that gold futures were introduced in 1974, one year after the U.S. devalued the dollar vs. the yen and Paul Volker admitted over 20 years ex post facto that the Fed made a mistake not preventing the price of gold from moving higher when the dollar was devalued.  They couldn’t manipulate the price of gold in 1973 because gold futures didn’t exist.

When history looks back on this period, one of the biggest official frauds will be the Fed’s empty threat of raising interest rates and the world will understand how and why it was used to help keep a lid on the precious metals.