Good evening Ladies and Gentlemen:
Gold: $1,249.00 down $4.20 (comex closing time)
Silver 17.09 down 4 cents
In the access market 5:15 pm
I WROTE THE FOLLOWING YESTERDAY:
Let us have a look at the data for today
At the gold comex today, we had a good delivery day, registering 171 notices for 17,100 ounces for gold,and for silver we had 0 notices for nil oz for the non active April delivery month.
Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 224.15 tonnes for a loss of 79 tonnes over that period.
In silver, the open interest fell by 1927 contracts DOWN to 192,583 DESPITE THE FACT THAT the silver price was UP 16 cents with respect to WEDNESDAY’s bullish trading. In ounces, the OI is still represented by .963 billion oz or 138% of annual global silver production (ex Russia ex China). We are now at multi year highs in OI with respect to silver
In silver we had 0 notices served upon for nil oz.
In gold, the total comex gold OI ROSE 3.484 contracts UP to 506,814 contracts even though the price of gold was only UP $0.20 with WEDNESDAY’S TRADING(at comex closing).Upon seeing that huge OI number in gold, the boys started their pounding of gold throughout the night and into trading today. That started today’s huge slug fest!!
We had no changes in gold inventory at the GLD, thus the inventory rests tonight at 805.03 tonnes.The boys loading gold into and/or removing gold at the GLD must be getting dizzy at the sheer pace of transactions!! 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’s SLV,we had no change in silver inventory. Thus the inventory rests at 334.724 million oz.
First, here is an outline of what will be discussed tonight:
1. Today, we had the open interest in silver rise by 946 contracts up to 194,510 as the price of silver was UP 16 cents with WEDNESDAY’S trading. The gold open interest rose by A LARGE 3,483 contracts WITH GOLD’S RISE OF 20 CENTS YESTERDAY. Somebody big is standing FOR SILVER and surrounding the comex with paper longs ready to ponce once called upon to take out physical silver.
2 a) Gold trading overnight, Goldcore
3. ASIAN AFFAIRS
i)Late WEDNESDAY night/ THURSDAY morning: Shanghai closed DOWN BY 19.69 POINTS OR 0.66% / Hang Sang closed UP 385.94 OR 1.82%. The Nikkei closed UP 457.08 POINTS OR 2.70% . Australia’s all ordinaires CLOSED UP 1.09%. Chinese yuan (ONSHORE) closed DOWN at 6.4770. Oil ROSE to 44.25 dollars per barrel for WTI and 45.84 for Brent. Stocks in Europe ALL IN THE RED . Offshore yuan trades 6.4823 yuan to the dollar vs 6.4770 for onshore yuan.
REPORT ON JAPAN SOUTH KOREA AND CHINA
a) REPORT ON JAPAN
i)David Stockman delves into two countries finances: First Japan and then China!!
With respect to Japan, he states correctly that they will default on its bonds in the future namely through its demographics. They are in a hopeless situation.
However the most important part of his commentary is China where he discusses, the latest Chinese folly of increasing production of steel (the so called iron rooster stimulus plan). What he comments on is the fact that the POBC has basically given their OK to stiff suppliers as unpaid bills are now at record level times.
Pay no attention to the rise in commodity prices as the world’s economy is going nowhere
( David Stockman/on Japan and China)
b) REPORT ON CHINA
ii)George Soros echoes Kyle Bass on China’s inevitable hard landing:
Also Bank of America is frightened on the increase in bond defaults on SOE’s and what can happen if these defaults are on the increase as the state lets them die!
( George Soros/zero hedge)