Gold: $1054.20 down $9.60 (comex closing time)
Silver $13.98 down 7 cents
In the access market 5:15 pm
At the gold comex today, we had an extremely poor delivery day, registering 0 notices for nil ounces. Silver saw 123 notices for 615,000 oz.
Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 200.015 tonnes for a loss of 103 tonnes over that period.
In silver, the open interest rose by 980 contracts despite the fact that silver was unchanged with respect to yesterday’s trading. Generally we are witnessing a massive OI contraction once we approach the first few days of an active delivery month and they did not disappoint us with yesterday’s results.. We should start to see the OI in silver start to rise. The total silver OI now rests at 163,286 contracts In ounces, the OI is still represented by .816 billion oz or 116% of annual global silver production (ex Russia ex China).
In silver we had 123 notices served upon for 615,000 oz.
In gold, the total comex gold OI fell by 1732 contracts as the OI fell to 390,940 contracts as gold was down by $2.00 with respect to yesterday’s trading.
We had no change in gold inventory at the GLD/ thus the inventory rests tonight at 654.80 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, we had a huge addition of 1.144 million oz in silver inventory, / Inventory rests at 319.353 million oz.
First, here is an outline of what will be discussed tonight:
1. Today, we had the open interest in silver rise by 980 contracts up to 163,286 as silver was unchanged in price to with respect to yesterday’s trading. The total OI for gold fell by 1732 contracts to 390,940 contracts as gold was down by $2.00 with respect to yesterday’s trading.
2 Gold trading overnight, Goldcore
3. ASIAN AFFAIRS
ii) And now the details as to how the Russian airstrikes are crippling ISIS. Please note that the USA is not bombing any ISIS trucks
iv) Turkey is clogging the shipping lanes at the Bosporus and the Straits of Dardanelles. No Russian ship is getting through as of now.
If this continues, this is an act of War!!
v) Iraq to USA: we do not want you in Iraq!(courtesy zero hedge)
vi) The USA under Reagan promised Gorbachev that NATO would not seek admission of former communist countries in the former Soviet bloc. First NATO sought the Ukraine and now Montenegro which has very close ties to Russia. The citizens of Montenegro are also upset.
And now Russia has threatened with some sort of retaliatory action!
(courtesy zero hedge)
ii) And now Michael Snyder details why Brazil is in a deep depressionary state:
i) A double whammy@@!! Crude tumbles as inventories surge for the 10th week in a row with respect to the DOE report. Production also rises as demand for oil falters as the global economy seizes!
iii) And this causes oil to break into the 40 dollar column:
iv) Another mass shooting/14 dead!! in San Bernardino California
v) Karl Denninger predicts that Obamacare will implode and kill the economy
Let us head over to the comex:
The total gold comex open interest fell to 390,940 for a loss of 1732 contracts as gold was down by $2.00 with respect to yesterday’s trading. For the past two years, we have strangely witnessed two interesting developments with respect to the gold open interest: 1) total gold comex collapse in OI as we enter an active delivery month, and 2) a continual drop in the amount of gold standing in an active month and we are certainly witnessing both of those today. We are now entering the big December contract which saw it’s OI fall by a considerable 1946 contracts from 5831 contracts down to 3885. We had only 38 notices filed upon yesterday, so we lost 1908 contracts or 190,800 oz of gold that will not stand for delivery in this active delivery month of December. As we indicated to you on many occasions, the bankers are cash settling as they do not have physical gold to settle upon.The next contract month of January saw it’s of rise by 8 contracts up to 574. The next big active delivery month is February and here the OI rose by 2249 contracts up to 280,502. The estimated volume today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was 112,643 which is poor. The confirmed volume yesterday (which includes the volume during regular business hours + access market sales the previous day was very poor at 133,353 contracts.
December contract month:
INITIAL standings for DECEMBER
|Withdrawals from Dealers Inventory in oz||nil|
|Withdrawals from Customer Inventory in oz nil||9,785.864 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)||3885 contracts
|Total monthly oz gold served (contracts) so far this month||40 contracts(4000 oz)|
|Total accumulative withdrawals of gold from the Dealers inventory this month||nil|
|Total accumulative withdrawal of gold from the Customer inventory this month||9,785.864 oz|
Total customer deposits 0 oz
DECEMBER INITIAL standings/
|Withdrawals from Dealers Inventory||nil|
|Withdrawals from Customer Inventory|| 612,448.030 oz
|Deposits to the Dealer Inventory||nil|
|Deposits to the Customer Inventory||nil|
|No of oz served today (contracts)||123 contracts
|No of oz to be served (notices)||626 contracts
|Total monthly oz silver served (contracts)||3403 contracts (17,015,000 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||1,212,674.3 oz|
Today, we had 0 deposit into the dealer account:
total dealer deposit; nil oz
we had no dealer withdrawals:
total dealer withdrawals: nil
we had 0 customer deposit:
total customer deposits: nil oz
total withdrawals from customer account: 612,448.030 oz
And now the Gold inventory at the GLD:
Dec 2.2015: no change in gold inventory at the GLD/inventory rests at 654.80 tonnes
Nov 30/no change in silver inventory at the SLV/Inventory rests at 318.209 million oz
Sprott Issues Open Letter to Unitholders of Central GoldTrust and Silver Bullion Trust
The Trustees of GTU and SBT have made clear their intentions. They have entered into an agreement with Purpose Investments that will put your investment at significant risk in order to protect their own fees. You made the choice to invest in a closed-end physical bullion security, and now the Spicers and their Trustees are ignoring this choice, and betraying the principles of physical bullion securities, to ensure they continue to profit.
The Purpose Investments transaction would convert your security to an open-ended ETF. Similar transactions have resulted in redemptions of greater than 50% of assets in the first three months of trading as an ETF. There is no reason to believe something similar will not occur with your investment, given the competitive landscape of the bullion ETF market. In short, you made the decision to invest in physical bullion, and the Trustees of GTU and SBT see fit to offer you a sub-standard investment. Do not be fooled.
The proposed transaction with Purpose is highly conditional, and may yet prove to be a defensive measure by the Spicers, as there is no guarantee, or likelihood, that it will close. Such a drastic step is a reflection of their weak position. GTU and SBT have been plagued by significant underperformance, gross mismanagement and questionable side payments to the Trustees and other friends of the Spicer family.
This transaction was principally negotiated by the Spicers themselves, not the Trustees, and there are undisclosed financial arrangements between the Spicers and Purpose. This is especially troublesome, given the history of fees and self-dealing involving the Spicers and their bullion products.
The Sprott offers provide you with an immediate and real premium, certainty, and most importantly, a direct investment in physical bullion. The GTU and SBT transaction with Purpose Investments offers you none of these things.
This proposed conversion presents a number of considerable risks, many of which the GTU and SBT Trustees have declined to disclose. The tax consequences to GTU and SBT unitholders of the anticipated significant redemptions that are likely to occur at GTU and SBT are highly uncertain, and the Trustees have elected to remain silent on the issue. Until further details are provided, it is reasonable to believe that U.S. unitholders are likely to be subject to material taxes. There is no possibility for unitholders to access their physical gold or silver bullion in this investment structure, and ETFs are designed to ensure that GTU and SBT will not trade at a premium, even in a gold or silver bull market.
We urge you to not be distracted by this desperate attempt and to tender into the Sprott offers. The Sprott offers represent an opportunity to preserve the nature of your investment, receive an immediate premium, close the historical discounts to NAV, and participate in a security that trades at, near or above NAV.
With the support of the majority of your fellow unitholders, we will take the necessary steps to remove the Trustees of GTU and SBT and call a special meeting to allow you to vote on the Sprott offers. You have the right to decide. Those have not yet tendered to the Sprott offers, we urge you to tender your units today.
Thank you for your support.
CEO, Sprott Asset Management
And now your overnight trading in gold and also physical stories that may interest you:
Gold Is Real Money That Protects The Wealth of Nations
Editors Note: With the New York Times once again trying to convince us that the Gold Standard is a barbarous relic from the past (see below), we are happy to publish an interesting and informative piece by one of our contributors David Bryan.
Gold is real independent money that can be explained in terms of physics and ensures the economic health of a nation. Counterparty liability money is a monetary ideology that empowers central bankers who issue currency that destroys the economic wealth of nations.
Science invalidated belief five hundred years ago and proved the earth is round.
Science has since advanced knowledge that the entire universe is comprised of energy and matter.
EconomicScience is an attempt to understand how the dynamic of energy and matter contributes to the economic benefit of one and all.
Enterprise is the energy that drives productivity and creates real economic wealth. To sustain life there is no scientific substitute for enterprise and yet banks and socialist politicians would have us believe that enterprise is not needed for wealthy creation.
Banks and socialist politicians have us believe in a monetary ideology that uses fake money so that we lose monetary independence, economic freedom and wealth security to their central planning and control.
Money defines our prosperity, financial independence and economic freedom, to protect us from harm it must have real wealth.
Counterparty money is the liability owed to the issuing central bank and it has no value apart from a legal stipulation that prevents real money from being used in competition.
Virtual money is almost or nearly as described, but not completely according to strict definition, it does not physically exist as such but is made by software to appear to do so.
Gold is Monetary Science that is Par Excellence.
Gold used as real monetary wealth to fund enterprise has the interaction of energy and matter, science based on physics to underpin the productive dynamic of nations and maintain a continued cycle of economic renewal.
Gold has no issuer’s counterparty liability.
Gold is money outside the banking system that protects wealth from the corrupt actions of governments and financial institutions.
Gold has a natural inbuilt compound interest that over time reflects economic progress and increases it’s monetary worth.
Gold in excess of $1033.50 an oz today has increased by 5000% from $20.67 an oz when the Federal Reserve Bank was formed in 1913. The people of the United States were tricked into losing their monetary independence to this privately owned central banking institution.
Falsely pretending something that does not have value as monetary worth is a crime, a sham and a fraud intended to take something valuable from another person. Since it became money the Federal Reserve’s Ponzi counterfeit dollar has been steadily devalued by 97% to just 3% of its original purchasing power.
Gold is real independent money with intrinsic worth that cannot go broke.
Gold is the mortal enemy of central bankers. It is an independent monetary asset that would prevent the central banks from using their Ponzi of counterparty paper to exclusively manage, control and centrally plan the economy.
Gold would prevent paper monetarism being used to steal the wealth and productivity of nations. Portugal, Italy Greece, Spain termed the PIGS nations and almost every other country in the world are now locked in a debt-induced depression caused by banker counterparty finance.
Gold is real wealth and cannot be printed into existence. It does not have or need the risks that come from the central bankers financial engineering to manipulate and rig the value of every asset class.
Gold would prevent paper monetarism being used to fund the global agenda of countless wars and the use of mercenaries to destabilize entire regions that cause the problems of massive cultural migration.
Gold as money would end gross injustice, where an industry that decides on the allocation of capital itself produces nothing of real value and yet it is the main beneficiary of wealth.
Gold as measured by the trusted Exter’s pyramid of risk assets, cannot be stopped by the manipulation policies of central bankers from being the ultimate safe haven.
Gold is economic science to reset the world from the social and economic devastation caused by adopting corrupt dogma that divide rich from poor of debt monetarism, corporatism, socialism, capitalism, communism and globalism.
Gold is the monetary means to rid the world from central banking and end the massive amounts of finance to institutionalize ownership of business and labor. Endless new money is used to incorporate resources beyond the reach and hope of most people on the planet. In the last seven years debt finance has increased 40%, this $57 trillion in new money has distanced $50,000 in assets and capital from every family in the world.
Interest charged on make-believe money is no more than a private tax that kills enterprise and jobs. Interest on the US national debt is $216 billion per year equivalent to $1,500 tax on each man woman and child.
Gold or silver over several thousand years, have allowed every country in the world to exist without the need for income tax.
Gold provides the monetary basis for establishing free markets without the Bank for International Settlements occupying the role of counterparty to all counterparty currencies.
Gold and silver over several thousand years have been safely used by every country in the world to guarantee national economic independence and provide confidence in the monetary value of their currencies.
Gold does not have a national currency and is internationally recognized as monetary wealth everywhere in the world.
Gold provides the means to trade without multiple currencies.
Gold is mined from ore and has real value as natural refined wealth.
Gold held in the vaults of the national treasury is wealth that belongs equally to each of its citizens.
Gold in the nations treasury, when used as backing for their currency, provides citizens with monetary independence and the economic freedom of using their own wealth to fund productive enterprise.
Gold is time proven to be independent monetary wealth and an accepted unit of value for exchange, as well as providing a monetary measure par excellence to value all goods and services.
Gold is physically indestructible and has a lasting independent monetary worth that will safely protect wealth for future generations.
Gold as a monetary asset provides a stable economic environment with the certainty of using money that has real wealth to make binding commercial transactions.
Gold and silver coins in the United States are respectfully engraved to promote endeavor that serves to advance the public good “IN GOD WE TRUST”.
Gold is chosen for wedding rings because it is a precious metal, the circle is the symbol of eternity and the ring signifies the never ending love between a couple.
“Do not believe in anything simply because you have heard it. Do not believe in anything simply because it is spoken and rumored by many. Do not believe in anything because it is found written in your religious books. Do not believe in anything merely on the authority of your teachers and elders. Do not believe in traditions because they have been handed down for many generations. But after observation and analysis, when you find that anything agrees with reason and is conducive to the good and benefit of one and all, then accept it and live up to it” – Buddha
– The Good Old Days of the Gold Standard? Not Really, Historians Say – New York Times
– For additional science and the brilliance and wisdom of the Tibetan ancients seewww.thetibetansecret.blogspot.com
Today’s Gold Prices: USD 1066.90, EUR 1007.68 and GBP 708.80 per ounce.
Yesterday’s Gold Prices: USD 1069.25, EUR 1009.25 and GBP 708.55 per ounce.
With sentiment very poor towards gold and silver today, it is important to realise that gold and indeed silver have outperformed other base and indeed the precious metals.
In fact, they have held up quite well in terms of the wider commodity sector. Indeed, they have also held up well in terms of other leading currencies such as the euro, Canadian dollar, New Zealand dollar, Australian dollar and other non dollar currencies. These have all fallen quite significantly against the dollar and indeed against gold year to date and in the last 12 months. Emerging market currencies have seen even greater routs against the dollar.
Gold is again acting as a hedge against currency depreciation and devaluation. Dollar and sterling investors have not needed a hedge in recent months given the buoyant dollar and indeed U.S. and UK equities and property.
This is likely to change in the coming months and then gold will come into its own as a hedging instrument and a safe haven asset.
For the first time since 2006, hedge funds are net short on gold. This is occurring with November record USA gold coin sales.
Hedge funds are also net short many of the commodities. This I can understand due to the huge increase in capacity throughout China and the rest of the world producing massive quantities of commodities against a backdrop of poor global economic climate.
(courtesy zero hedge)
Hedge Funds Have Never Been This Short Gold
The ratio of paper gold to real gold is an unbelievable 325 to one
(courtesy Dave Kranzler /ird)
If you don’t want everyone to run out of the coal mine, hide the canary from everyone’s sight before it dies. – Quote from a good friend and colleague
The story is getting old, but it needs to be shoved in front of us to keep the truth alive. By now most of you have seen the incredible 325:1 paper gold to deliverable gold ratio on the Comex. Let’s say the CME were to hypothecate ALL of the gold reported to be held in Comex vaults and used it to “back” the paper gold open interest. It would require importing 6 times more gold, or 956 tons – more than 1/3 the total amount of gold mined globally in a year. Just not possible.
It’s very important to keep in mind that the numbers that are reported representing the amount of gold held in Comex vaults are numbers that originate from the bullion banks, who generate the reports and send them to the publishing apparatus at the CME. They are not audited. Using those numbers as “the numbers” requires a leap of faith that could easily be betrayed. This is a point fact – not opinion – based on the history of bank numbers reporting that gets lost on most people and market analysts. Let’s put it this way: If the Comex numbers are being reported accurately and honestly, it would be the only area of bank financial reporting that is not laced with fraud. Are you willing to make that wager?
For the record, here’s what happened today: