Nov 10/Government in Portugal falls/Copper and nickel fall putting huge pressure on Glencore/ Also Nyrstar seeking help from Trafigura/Devastation in the UK steel industry as Lord Paul’s son commits suicide as steel prices collapse/Euro crashes early in the session into the 106 column on fears of NIRP/Venezuela close to bankruptcy/ McDonald’s bonds closing in on junk status/China demand (SGE wihtdrawals) equal 47 tonnes in latest weekly reporting/James Turk believes that the FRBNY is one of the main suppliers of gold suppressing the gold price/

Gold:  $1088.20 up $.30   (comex closing time)

Silver $14.36  down 6 cents

In the access market 5:15 pm

Gold $1089.90

Silver:  $14.42

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

(report Harvey)

2.Gold trading overnight, Goldcore

(/Mark OByrne)

3. ASIAN AFFAIRS
 i) Last night, 9:30 pm MONDAY night, TUESDAY morning Shanghai time.  Japan Nikkei rises, Shanghai falls as does most of Asia.
Base metals fall badly putting more pressure on Glencore et al.
(zero hedge)
 ii) China sends in more jets on an island close to the Spratly Islands from which it is guessed that the Chinese will use as a naval base.
Tensions running a little higher
(zero hedge)
4.  EUROPEAN AFFAIRS
 i) Euro crashes into the 1.06 column as the dollar strengthens initially in the morning
(zero hedge)
 ii) One expert believes that the secretive TPP will cause the agricultural sector in Canada to go bankruptcy
(zero hedge)
iii) Portuguese government falls
(zero hedge)
iv) Devastation in the steel industry in the UK
(zero hedge)
5. GLOBAL AFFAIRS
 All global banks must raise 1.1 trillion USA to shore up their reserves
(London’s Financial Times)
6. RUSSIAN AND MIDDLE EASTERN AFFAIRS
 non today
7.  OIL RELATED STORIES
Oil tumbles into the 43 dollar column after market closed due to huge API inventory build:
(courtesy zero hedge)
8.  EMERGING MARKETS
i)  Venezuela raids its capital account at the IMF of 427 million dollars. It will not be long before they default on everything.
(zero hedge)
ii)  Emerging countries have seen over 1/2 trillion  uSA dollars leave their respective countries from the capital accounts
(zero hedge)

9 USA stories/Trading of equities:

i) Apple cuts component orders by 10% as global aggregate demand softens

(zero hedge)

ii)  Looks what happens when China sends her deflation to the rest of the world:

(zero hedge)

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

(zero hedge)

vi Something to worry about:  the spread between retail sales and inventories have never been greater

(zero hedge)

vii) Fast food workers are going on strike.  With automation here, just why on earth are they striking?

(zero hedge)

viii) Continuing with the fast food industry:

 S and P just lowered the ratings on McDonald’s as they continue to buy back shares.  McDonald’s debt is now close to junk:
(courtesy zero hedge)

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

(Koos Jansen)

ii) James Turk believes (as do I) that the gold that has been fed by the uSA into the market is from the FRBNY

(James Turk/Kingworldnews)

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

(Bloomberg/GATA)

 

v) Bill Holter interview by Palisades Radio

(Bill Holter0

vi) Dave Kranzler on the looting of GLD gold:

(Dave Kranzler/iRD)

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

(zinc news)

viii Dave Kranzler talks about that other base metal company is trouble;

Glencore

 

(Dave Kranzler/IRD)

ix) Steve St Angelo/SRSRocco report on silver production;

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.

Today we had 0 notices filed for nil oz.
And now for the wild silver comex results. Silver OI fell by only 1,462 contracts from 166,940 down to 165,278 despite the fact that the price of silver was down by 27 cents with 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 0 contracts remaining at 7. We had 0 notices filed yesterday so we neither lost nor gained any additional silver contracts that will stand for delivery in this non active delivery month of November.  The huge (and active) delivery month of December saw it’s OI fall by 3126 contracts down to 91,988. The estimated volume for today (regular hours Comex) came in at an excellent 63,250 contracts.  The confirmed volume yesterday (comex + globex) was excellent at 62,478..
We had 0 notices filed for nil oz.

November contract month:

INITIAL standings for November

Nov 10/2015

Gold
Ounces
Withdrawals from Dealers Inventory in oz   nil
Withdrawals from Customer Inventory in oz  nil  7,046.878 oz

(Scotia, Brinks,Manfra

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) 211 contracts

(21,100 oz)

Total monthly oz gold served (contracts) so far this month 7 contracts

700 oz

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

 

 Today, we had 0 dealer transactions
Total dealer withdrawals:  nil oz
we had 0 dealer deposits
total dealer deposit:  zero
We had 3 customer withdrawal:
i)Scotia:  6,430.000 oz  (200 kilobars)
ii) Out of Brinks:  96.45 oz (3 kilobars)
iii) Out of Manfra: 520.428 oz
total customer withdrawal 7,046.878  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 (7) x 100 oz  or 600 oz , to which we  add the difference between the open interest for the front month of Nov.( 211 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 (7) x 100 oz  or ounces + {OI for the front month (211)– the number of  notices served upon today (0 x 100 oz which equals 21,800 oz  standing  in this month of Nov (0.678 tonnes of gold).
We thus have 0.6780 tonnes of gold standing and only 4.711 tonnes of registered gold (for sale gold/dealer gold) waiting to serve upon those standing.
we neither lost nor gained any gold ounces standing in this non active delivery month of November.
Total dealer inventory 151,481.079 oz or 4.711 tonnes
Total gold inventory (dealer and customer) =6,706,517.894   or 208.60 tonnes)
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.
 
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 10/2015:

Silver
Ounces
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 

25,000 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 3,512,989.6 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 withdrawals:
i) Out of Scotia: 30,225.57 oz
ii) Out of Brinks:  63,138.05moz
iii) Out of Delaware:  2036.100 oz

total withdrawals from customer account: 803,216.592   oz

we had 1 adjustment
i) Out of Delaware:
280,271.823 oz was adjusted out of the customer and this landed into the dealer account of Delaware
Total dealer inventory: 43.340 million oz
Total of all silver inventory (dealer and customer) 161.217 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 (5) 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 +(5) { OI for front month of November ) -number of notices served upon today (0} x 5000 oz ,=50,000 oz of silver standing for the Nov. contract month.
we neither lost nor gained any silver ounces standing for this non active delivery month of November.
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 10/a small deposit of .32 tonnes of gold in gold inventory/rests tonight at 666.43 tonnes
nov 9/another 2.98 tonnes of gold leaves the GLD/Inventory rests at 666.11
Nov 6/another huge 2.68 tonnes of gold leaves the GLD/Inventory rests at 669.09 tonnes
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. 10/2015 GLD :666.43 tonnes*
*this is the lowest level in quite some time.  It looks like physical gold acquired in the past few months have now left the GLD vaults heading for China.
end

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

Nov 10/2015:  tonight inventory rests at 313.681 million oz***
Note the difference between the GLD and SLV.  GLD sees liquidation of metal but not SLV. Why?  because the SLV has no real silver behind it only paper silver.
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 11.2 percent to NAV usa funds and Negative 10.8% to NAV for Cdn funds!!!!!!!
Percentage of fund in gold 61.8%
Percentage of fund in silver:38.1%
cash .1%( Nov 10/2015).
2. Sprott silver fund (PSLV): Premium to NAV falls to+0.70%!!!! NAV (Nov 1-/2015) (silver must be in short supply)
3. Sprott gold fund (PHYS): premium to NAV falls to – .60% to NAV Nov 10/2015)
Note: Sprott silver trust back  into positive territory at +0.70% Sprott physical gold trust is back into negative territory at -.60%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)

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.

GoldCore: Patrick Byrne, CEO Overstock
Patrick Byrne, CEO of e-commerce giant Overstock.com

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”.

GoldCore: Overstock.com

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.

DAILY PRICES

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.
(LBMA AM)

Gold closed higher yesterday up $3.10 to $1091.10.  Silver lost $0.18 to close at $14.56. Platinum lost $28 to $910.

GoldCore: Gold in USD - 5 years

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.

 

Essential Guide to Gold Storage in Singapore

GoldCore: Storing Gold in Singapore

Mark O’Byrne

end

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)

 

Biggest Silver Supply Losers For 2015

Filed in Mining, Precious Metals by on November 10, 2015 0 Comments

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:

Chile-Copper-Commission-World-Silver-Production

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:

Mexico-Aug-2015-INEGI-Silver-Figures

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:

Biggiest-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:

end

This morning:

China allows the direct conversion between yuan and Swiss francs totally by-passing the dollar

(Bloomberg/GATA)

 

China to allow direct conversion between yuan and Swiss franc

Section:

By Fion Li
Bloomberg News
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:

http://www.bloomberg.com/news/articles/2015-11-09/china-to-allow-direct-…

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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)

GLD Is Being Looted To Help Banks Manipulate The Price Of Gold

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):

GLDtonnes

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.

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And now Dave Kranzler talks about that other copper giant Glencore:

(courtesy Dave Kranzler/IRD)

Glencore Stock Is Down 16% In Three Days

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:

Untitled

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.

Glencore derives 37% of operating income from copper. When the price of copper dives below $2, which