Gold: $1104.40 down $2.10 (comex closing time)
Silver $14.99 down 7 cents
In the access market 5:15 pm
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
2.Gold trading overnight, Goldcore
9 USA stories/Trading of equities NY
i) Challenger Grey reports huge increase in layoffs in the energy sector/initial claims rise
ii) unit labour costs rise less than expected/this bothers the Fed greatly
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.
v) Another high tech company Kura which IPO’d yesterday is crashing along with Valeant.
10. Physical stories
i) Ratio of paper gold to registered gold at the comex rises to 293 to one, the highest on record
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!
Let us head over to the comex:
November contract month:
INITIAL standings for November/First day notice
|Withdrawals from Dealers Inventory in oz||nil|
|Withdrawals from Customer Inventory in oz nil|| 2,089.75 oz
|Deposits to the Dealer Inventory in oz||nil|
|Deposits to the Customer Inventory, in oz||nil|
|No of oz served (contracts) today||0 contracts
|No of oz to be served (notices)||247 contracts
|Total monthly oz gold served (contracts) so far this month||6 contracts
|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
Total customer deposits nil oz
we had 0 adjustments:
November initial standings/First day notice
|Withdrawals from Dealers Inventory||nil|
|Withdrawals from Customer Inventory||681,595.600 oz
|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
|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
total customer deposits: nil oz
total withdrawals from customer: 681,595.600 oz
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
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).
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.
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.
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.
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.
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.
Dave Kranzler on Silver fundamentals:
(courtesy Dave Kranzler IRD)
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):
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.