Gold: $1088.20 up $.30 (comex closing time)
Silver $14.36 down 6 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 very poor delivery day, registering 0 notice for nil ounces. Silver saw 0 notices for nil oz.
Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 208.60 tonnes for a loss of 94 tonnes over that period.
In silver, the open interest surprisingly fell by only 1462 contracts despite silver being down 27 cents in yesterday’s trading. The total silver OI now rests at 165.289 contracts In ounces, the OI is still represented by .826 billion oz or 118% 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 fell by 1581 contracts to 438,385 contracts despite the fact that gold was only down by $0.30 yesterday. it seems the modus operandi of the bandits is to liquefy gold/silver OI. We had 0 notices filed for 100 oz today.
We had a slight addition in gold inventory at the GLD to the tune of 0.32 tonnes / thus the inventory rests tonight at 666.43 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. Our 670 tonnes of rock bottom inventory in GLD gold has been broken. 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, after they deplete the GLD will be the FRBNY and the comex. In silver,no change in silver inventory / Inventory rests at 313.681 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 only 1,462 contracts down to 165,278 despite the fact that silver was down 27 cents with respect to yesterday’s trading. The total OI for gold fell by a rather large 1,581 contracts to 436,804 contracts despite the fact that gold was down only 30 cents 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:
i) Apple cuts component orders by 10% as global aggregate demand softens
ii) Looks what happens when China sends her deflation to the rest of the world:
iii) The real truth behind the jobs report: the declining manufacturing jobs vs leisure time part time gains
generated through the factitious B/D and further adjustments
( David Stockman)
iv) The Fed is worried about the soundness of the USA banks
(Simon Black/Sovereign Man)
v) The phoniness is the retail jobs and the construction jobs in the latest jobs report
vi Something to worry about: the spread between retail sales and inventories have never been greater
vii) Fast food workers are going on strike. With automation here, just why on earth are they striking?
viii) Continuing with the fast food industry:
10. Physical stories
i) Koos Jansen reports on gold demand (SGE withdrawal) in the latest weekly report: 47 tonnes.
He compares gold deliveries at the SGE vs comex. It is nutshell, they are totally different
ii) James Turk believes (as do I) that the gold that has been fed by the uSA into the market is from the FRBNY
iii) Hugo Salinas Price… what is Bitcoin?
(Hugo Salinas Price)
iv) China now allows the direct conversion from yuan into Swiss francs and visa versa, totally by-passing the dollar
v) Bill Holter interview by Palisades Radio
vi) Dave Kranzler on the looting of GLD gold:
vii Nyrstar does a rights offering and 20% owned Trafigura is buying 50% of the rights offering raising their level to 30% of the company. They are contemplating removing 400,000 tonnes of zinc concentrate from the market to order to raise the price of zinc
viii Dave Kranzler talks about that other base metal company is trouble;
Take a look at the discrepancy in silver production reporting from our major country producers!!
looks to me like the supply of silver is coming down!!!
a great paper!!
(courtesy Steve St Angelo/SRSRocco report)
Let us head over to the comex:
The total gold comex open interest fell from 438,385 down to 436,804 for a loss of 1,581 contracts despite the fact that gold was down by only $0.30 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. The November contract fell by 0 contracts remaining at 211. We had 0 notices filed yesterday, so we neither lost nor gained any gold contracts that will stand for delivery in this non active delivery month of November. The big December contract saw it’s OI fall by 10,338 contracts from 247,319 down to 164,476. The estimated volume today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was 164,476 which is good. The confirmed volume yesterday (which includes the volume during regular business hours + access market sales the previous day was good at 172,212 contracts and aided by copious HFT trading.
November contract month:
INITIAL standings for November
|Withdrawals from Dealers Inventory in oz||nil|
|Withdrawals from Customer Inventory in oz nil|| 7,046.878 oz
|Deposits to the Dealer Inventory in oz||nil|
|Deposits to the Customer Inventory, in oz||
|No of oz served (contracts) today||0 contracts
|No of oz to be served (notices)||211 contracts
|Total monthly oz gold served (contracts) so far this month||7 contracts
|Total accumulative withdrawals of gold from the Dealers inventory this month||nil|
|Total accumulative withdrawal of gold from the Customer inventory this month||89,423.6 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||95,399.720 oz|
|Deposits to the Dealer Inventory||nil|
|Deposits to the Customer Inventory||nil|
|No of oz served (contracts)||0 contracts (nil oz)|
|No of oz to be served (notices)||5 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||3,512,989.6 oz|
Today, we had 0 deposit into the dealer account:
total dealer deposit; nil oz
total customer deposits: nil oz
total withdrawals from customer account: 803,216.592 oz
And now SLV
Nov 10/no change in silver inventory at the SLV/rests tonight at 313.681 million oz/
Nov 9/no change in silver inventory/rests tonight at 313.681
Nov 6/ we had a very tiny withdrawal of 136,000 oz (probably to pay for fees)/Inventory rests tonight at 313.681 oz
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
One of America’s Largest Online Retailers Is Stockpiling Gold and Silver Coins to Pay Employees In Coming Crisis
One of America’s largest companies is preparing for problems in the banking and financial system and another financial crisis.
Online retail giant Overstock.com (OSTK), publicly stated that the company has stockpiled gold and silver coins in preparation for another U.S. financial crisis. Patrick Byrne, its founder and chief executive, is a libertarian who champions crypto currencies, bitcoin and gold and silver bullion as financial insurance against risk in the financial and monetary system.
Overstock Chairman, Jonathan Johnson recently told an audience at the United Precious Metals Association:
“We are not big fans of Wall Street and we don’t trust them. We foresaw the financial crisis, we fought against the financial crisis that happened in 2008; we don’t trust the banks still and we foresee that with QE3, and QE4 and QE n that at some point there is going to be another significant financial crisis.”
Quantitative easing (QE) is when central banks create billions and trillions worth of fiat currency out of thin air and inject it into the financial system rising currency debasement and inflation in the long term.
Johnson went on to explain the company’s preparations:
“So what do we do as a business so that we would be prepared when that happens? One thing that we do that is fairly unique: we have about $10 million in gold, mostly the small button-sized coins, that we keep outside of the banking system. We expect that when there is a financial crisis there will be a banking holiday. I don’t know if it will be two days, or two weeks, or two months. We have $10 million in gold and silver in denominations small enough that we can use for payroll. We want to be able to keep our employees paid, safe, and our site up and running during a financial crisis.
We also happen to have three months of food supply for every employee that we can live on.”
A further insight into the company’s preparations for a crisis can be seen in the company’s latest 10-Q filed with the SEC:
“Our precious metals consisted of $6.3 million in gold and $4.6 million in silver at June 30, 2015 and December 31, 2014. We store our precious metals at an off-site secure facility. Because these assets consist of actual precious metals, rather than financial instruments, we account for them as a cost method investment initially recorded at cost (including transaction fees) and then adjusted to the lower of cost or market based on an average unit cost”.
Johnson, Overstock’s anti-establishment chairman, told the Financial Times it holds the bullion coins outside the banking system so the company could pay employees even if banks close for a period of time in a crisis – as was seen in Cyprus and Greece in recent months:
“We thought there’s a decent chance that there could be a banking holiday at some point caused by a crisis and it could last for two days or two weeks or who knows how long, and we wanted to be in a position where we could continue to operate during any such crisis,” he said.
GoldCore is advising companies internationally to allocate capital to gold and silver bullion as a way to diversify their assets. This is prudent given the risks of today and need for financial insurance to protect against bank bail-ins, capital controls, “bank holidays”, currency debasement and other risks posed by another financial crisis.
Today’s Gold Prices: USD 1092.50, EUR 1017.23 and GBP 723.50 per ounce.
Yesterday’s Gold Prices: USD 1095.60 , EUR 1015.90 and GBP 725.95 per ounce.
Gold closed higher yesterday up $3.10 to $1091.10. Silver lost $0.18 to close at $14.56. Platinum lost $28 to $910.
Gold in USD – 5 Years
Gold has eked out small gains and appears to be stabilising at just above five-year lows reached in July, after last week’s nearly 5% plunge.
Less than two weeks ago – on October 28th – gold was trading at $1180 per ounce and has declined a sharp 8 per cent in just two weeks. Value buyers and those dollar cost averaging into position are taking advantage of the price weakness.
Indian demand for gold and silver remains robust as we had into the Indian festival season. Gold and silver coins saw good demand on Dhanteras in India today instead of jewellery. It was noted that consumers were on a buying spree due to lower prices.
According to jewellers and bullion dealers MMTC-PAMP India, the buying activity remained robust in the first half of the day at most places. But more sales are expected later in the day, with office-goers coming in for buying late in the evening.
Dhanteras is considered to be an auspicious day for buying gold and silver and is largely celebrated in North and West India.
Here is Steve St Angelo’s latest piece of silver
Take a look at the discrepancy in silver production reporting from our major country producers!!
looks to me like the supply of silver is coming down!!!
a great paper!!
(courtesy Steve St Angelo/SRSRocco report)
As the financial and economic systems continue to disintegrate, this will put more stress will on the silver market. Why? Because elevated physical silver investment demand will likely exceed available silver supply in the future. Even though physical silver investment demand has fallen off since the huge spike starting in June, market conditions have impacted supply in a negative way.
According to the most recently released data, three of the top five silver producing countries are showing large declines in production compared to the same period last year. When I researched the mine supply figures, I came up with some conflicting data. For some strange reason, my data showed a decline in Mexican silver production, while figures from another source stated an increase.
I wrote the organization responsible for providing silver production figures to the Chile Copper Commission. You see, the Chile Copper Commission (Cochilco.cl) provides global production data on many metals. They use data from World Metal Statistics.
Here is a snapshot of their monthly world silver production update:
Please click on the table to see a larger image. If you look at Mexico silver production, they show an increase to 3,870.1 metric tons (mt) JAN-AUG 2015 up from 3,767.9 mt during the same period in 2014. From this report, Mexico’s silver production JAN-AUG 2015 increased 102 mt, or 3% year over year (yoy).
However, I spoke with a person at Mexico’s Department of Mineral Resources (INEGI), and they sent me the link to their monthly silver production figures. I downloaded the excel spreadsheet and made a screenshot show below:
I added the total of Mexican silver production from JAN-AUG 2014 and 2015 and put the figures in the next column. As you can see from Mexico’s official INEGI monthly data, silver production is down from 3,839 mt in JAN-AUG 2014 to 3,640 mt during the same period this year.
So, instead of Mexican silver production being up 3% this year (according to data from World Metal Statistics), it’s actually down 6% if we go by official Mexican INEGI figures.
When I contacted World Metal Statistics about this inconsistency, they were nice enough to reply. I asked them why was their Mexican silver production showing an increase while Mexico’s official data reports a decline? They stated that they do use INEGI data for their silver production figures, but they use different data for the Chile Copper Commission.
That being said, they were surprised that Mexico showed a decline in silver production in 2015. I sent them the excel spreadsheet from Mexico’s INEGI, and they told me that their data was different. They replied to me stating that they had to update all their Mexican silver production data back to 2011… as it was revised and I gather they revised it using incorrect data. How interesting.
I find this quite interesting because it costs an individual 2,240 Euros to purchase 12 monthly metal production reports from World Metal Statistics. Readers on my site, get to find out this information for FREE.
NOTE: I will be including a DONATE BUTTON on the site shortly. After many requests from readers, I decided to finally add this function for the individuals who would like to donate for the public research and articles on the site.
While I used some of the silver production data (in the chart below) from the Copper Commission Table shown above, I double checked Peru’s and Australia’s silver production from their official state figures.. and they matched up. That being said, I also have a problem with World Metals Statistics “Total World Silver Production Figures” shown at 17,967 metric tons (mt) JAN-AUG 2015 compared to 18,014 mt during same period in 2014. These figures come from the Chile Copper Commission table above.
Basically, World Metal Statistics shows a small reduction in total global silver supply JAN-AUG 2015 compared to last year. Even if we adjust the revised lower Mexican silver production data, total world silver production is only down 2.5%… again, according to their figures.
However, if we just go by the top five producers (Mexico, Peru, China, Australia & Chile), overall silver production in down 6%. I gather World Metal Statistics is saying the rest of the countries are reporting increases to show just an average loss of 3% worldwide. Unfortunately, some of the other countries such as Canada are reporting declines in silver production.
Here are the biggest silver supply losers for 2015:
As we can see from the chart above, Australian silver production JAN-AUG 2015 is down a whopping 41% compared to the same period last year, followed by Canada down 32%, Mexico down 6% and Chile down 4%. The combined silver production from these four countries is down 15% compared to last year.
Here is additional silver production data from three countries:
Russia’s Polymetal Jan-Sep 2015 = +53 mt
Poland’s KGHM Polska Jan-Jun 2015 = + 6 mt
United States Jan-Aug 2015 = -22 mt
If we just add up these three producers, we find a net increase of about 37 metric tons. Of course, these show different periods, but an increase of even 40-50 mt for these producers won’t change the overall decline of the top five down 684 mt JAN-AUG 2015.
I would imagine the low metal prices going forward will continue to impact global silver production. Chile, the largest copper producer in the world, is showing a 4% decline in silver production this year. The majority of silver production from Chile is a by-product of copper mine supply. As the price of copper continues to fall, we will see more companies shut down copper mines. This will have a negative impact on global silver supply going forward.
I will be writing future articles on how the future silver supply, demand and price will impact the market in the next several weeks and months.
If you haven’t checked out THE SILVER CHART REPORT, there’s a great deal of information on the Silver Industry & Market not found in any single publication on the internet. There is one chart in this report (Chart #19) that I can guarantee that 99.9% of precious metal investors haven’t seen before.
I use this bird’s-eye approach when I create my easy to understand charts. The Silver Chart Report is a collection of my top silver charts from articles published over the past six years, and includes in-depth, never-before-seen charts and content that indicate that silver is on the rise. There are 48 charts in the report, broken down in five sections.
Please check back for new articles and updates at the SRSrocco Report. You can also follow us at Twitter below:
China allows the direct conversion between yuan and Swiss francs totally by-passing the dollar
China to allow direct conversion between yuan and Swiss franc
Submitted by cpowell on Mon, 2015-11-09 16:17. Section: Daily Dispatches
By Fion Li
Monday, November 9, 2015
China took another step to boost the yuan’s global usage, saying it will start direct trading with the Swiss franc, as the nation pushes its case for reserve-currency status at the International Monetary Fund.
The link will start on Tuesday, the China Foreign Exchange Trade System said in a statement, making the franc the seventh major currency that can bypass a conversion into the U.S. dollar and be directly exchanged for yuan. The rate will be allowed to fluctuate a maximum 5 percent on either side of a daily fixing, according to CFETS. …
… For the remainder of the report:
Dave Kranzler on the looting of GLD gold:
I agree with Dave in that with huge troubles in the steel industry, the base metals industry, and the oil industry there must be huge derivative train wrecks.
a must read…
(courtesy Dave Kranzler/IRD)
The choke hold put on the precious metals the past several days has been relentless, Eric. It was so forceful, it might even have been unprecedented…the selling is being driven by the paper-gold market and the central planners no doubt have had a hand in it. The paper-gold they sell needs to be matched from day to day with a show of force, and the only way to do that is being able to deliver physical metal when the buyer of your paper promise asks for physical metal rather than cash settlement. – James Turk on King World News
The price of gold pushed through its 200 dma and hit a high of $1191 on October 15. It appeared ready to assault $1200 (click to enlarge):
But over the next 17 trading days 36 tonnes of gold was removed from the GLD Trust. Most of the gold – 29 tonnes – was removed in the last 9 trading days to facilitate manipulating the price back below 200 day moving average (red line in the graph above).
There’s unquestionably something wrong behind the “curtain.” With the increasing meltdown in various areas of the global financial system (energy, commodities, high yield debt, leveraged loan portfolios, biotech stock, Glencore/Lonmin, emerging market currencies, etc) the OTC derivatives market must be littered with train wrecks.
At a time when the price of gold should be soaring to reflect the increasing financial, economic and political turmoil brewing, the western Central Banks/banks are relentlessly manipulating the price. Without a doubt they have had to resort to raiding GLD in order to make the deliveries referenced at the top by James Turk.
Now we have to endure another round of the “we’re going to raise rates this time, we promise” game. How many times can the Fed get away with hammering Wall Street’s calcified brain trust and the financial media over the head with this farce?
With the level of systemic debt in the U.S. (Federal, State, corporate, individual and pension debt in the form of underfunding) going parabolic, economic activity quickly fading, financial landmines going off behind the scenes and geopolitical risk escalating, the only way the Fed can maintain any level of credibility is to prevent the price of gold from engaging in bona fide, market-determined price discovery.
At some point the Central Banks will lose their ability to contain the price of gold. We’re already starting to sense their level desperation in this endeavor as reflected in the paper gold to deliverable ratio on the Comex, the gold being drained from the Fed’s vaults and the removal of gold from GLD.
Remember that we told you about the troubles in Nyrstar. They hare undergoing a rights offering and 20% owned Trafigura is taking half of the issue which will raise their share to 30%. They are also looking to take 400,000 tonnes oz zinc concentrate off the market which will hurt their bottom line:
(courtesy Zinc news)
On Monday, debt-laden Nyrstar (EBR:NYR)announced that Trafigura will purchase up to half of the shares it’s selling in a rights offering for 250 to 275 million euros. The news has raised red flags for those concerned that Trafigura is seeking to gain control of Nyrstar.
As the Financial Times explains, Trafigura, a multinational commodities trading company, amassed a 20-percent stake in Nyrstar last year and “pushed successfully to get two directors appointed to its board.” The rights offering could raise Trafigura’s interest in Nyrstar to 30 percent, and will likely attract further scrutiny from the European Commission, which is already looking at whether Trafigura “has taken de facto control of the zinc company.”
However, Bill Scotting, CEO of Nyrstar, has denied that is happening, commenting, “[t]his is not a takeover by stealth. Trafigura is a supportive shareholder.”
Market watchers too seem unconcerned about the growing relationship between Nyrstar and Trafigura, and have instead latched onto other aspects of Nyrstar’s Monday release. In particular, the following statement from the company has raised eyebrows:
Following a detailed review of the performance, near term cash needs, medium term capital requirements and exploration potential of the Mining segment, Nyrstar management is now pursuing strategic alternatives for its mining assets, individually and as a portfolio, which may include additional suspensions, asset disposals and a full exit from mining and has appointed financial advisors to assist with that process. Where appropriate, offtake agreements will be put in place to maintain Nyrstar’s access to concentrates.Nyrstar will consider further suspensions of its mines if the current depressed commodity price environment continues; such suspensions would potentially reduce global supply by up to a further 400,000 tonnes of zinc concentrate (in addition to the 100,000 tonnes removed by the Myra Falls and Campo Morado suspensions).
Many have honed in on the fact that Nyrstar is considering “a full exit from mining,” while those in the zinc space are taking heart from the news that the company is looking at suspensions that could take 400,000 tonnes of zinc concentrate off the market.
And now Dave Kranzler talks about that other copper giant Glencore:
(courtesy Dave Kranzler/IRD)
Glencore stock popped up last week after it announced a $900 million dollar streaming deal with Silver Wheaton. It involves Glencore’s share of the silver that is produced from the Antimina mine in Peru. But Glencore leveraged up to buy Xstrata in 2012, when silver was $32/oz. The amount of debt that Glencore was able to access for this transaction without doubt assumed a $32/oz valuation on Glencore’s silver assets. It only took 3 days for reality to reassert control over Glencore’s stock:
The stock has plunged 16% since hitting 130 (British pounds) last Wednesday after the streaming deal was announced.
Glencore’s business is a general reflection of the entire global economy: A massive cesspool of too much debt supported by economic fundamentals which are quickly collapsing. Glencore’s stock has been repriced downward by 65% since May, when it hit 318 pounds.
This one is going to be a wild ride because the big banks with derivatives and debt exposure to Glencore will do their best to proliferate disinformation designed to cause upward spikes in the stock. But ultimately they can’t support of a collapsing economy and base metals commodities market.