Good evening Ladies and Gentlemen:
Gold: $1,228.70 down $20.30 (comex closing time)
Silver 16.90 down 19 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 61 notices for 6100 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 224.12 tonnes for a loss of 79 tonnes over that period.
In silver, the open interest rose by a gigantic 6,698 contracts up to 199,231 despite the fact that the price was silver was down by 4 cents with respect to YESTERDAY’s trading. In ounces, the OI is still represented by .996illion oz or 142% of annual globla silver production (exRussia &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 4,520 contracts to 511,334 contracts even though the price of gold was DOWN $4.20 with THURSDAY’S TRADING(at comex closing).Upon seeing that huge OI number in gold, along with the huge accompanying extreme high OI in silver was enough for our bankers and the decision to raid again was on for today.
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 a whopping 6,648 contracts up to 199,231 despite the fact that the price of silver was DOWN 4 cents with THURSDAY’S trading. The gold open interest rose by A LARGE 4,520 contracts despite the fact that gold fell by $4.20 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 THURSDAY night/ FRIDAY morning: Shanghai closed UP BY 6.35 POINTS OR 0.22% ON A LAST HR RESCUE / Hang Sang closed DOWN 155 OR 0.72%. The Nikkei closed UP 208.87 POINTS OR 1.20% . Australia’s all ordinaires CLOSED DOWN 0.69%. Chinese yuan (ONSHORE) closed DOWN at 6.4925. Oil ROSE to 43.36 dollars per barrel for WTI and 44.867 for Brent. Stocks in Europe ALL IN THE RED (EXCEPT SPAIN) . Offshore yuan trades 6.49607 yuan to the dollar vs 6.49607 for onshore yuan.
REPORT ON JAPAN SOUTH KOREA AND CHINA
a) REPORT ON JAPAN
ii)Kuroda thinking of increasing NIRP and also to supply banks with negative rates
iii)And the resultant action of this total nonsense:
huge rise in the USA/Yen cross. Houston we have a problem, stocks are not buying the move as earnings are just too awful!!
( zero hedge)
b) REPORT ON CHINA
iv)Two big stories: Last night
First: hundreds of Chinese children mysteriously fall ill suffering from nose bleeds, rashes and coughing from East China’s Jiangsu Province. The school is right next store to huge chemical factories:
( zero hedge)
i) Greece is back in the spotlight as they fail to reach a deal with lenders. Worse still, they lost their “champion” , the IMF, who now state that Greece can survive without debt haircuts. I do not know what planet the iMF is on but Greece is one big basket case
( zero hedge)
ii)Great Britain has politely asked Obama not to interfere in the BREXIT situation.Things must not be going well as he just gave an OP-Ed to Gr. Britain:
iii)A very important read today by David Stockman on the ECB. He basically states that this gentleman is nothing but a charlatan and do not pay attention to his phony statements like the European households are now lending money to finance projects etc…Europe has no growth in that dept. for quite a while. Basically, Draghi cannot go further into NIRP as this will totally annihilate the European banks and he has very little assets left to monetize.
New York listed Caterpillar is perhaps the best Bellwether companies to determine global health. We now witness their sales plunging 26% and they had another earning miss. However it is their outlook that is looked upon with great earnest: they are slashing revenue and earnings. The global picture is not good at all:
( zero hedge)
Venezuela is without a doubt becoming one complete train wreck: they are now cutting off electricity 4 hrs per day:
( zero hedge)
7. OIL ISSUES
SCHLUMBERGER, THE WORLD’S LARGEST OIL SERVICE PROVIDER HAS COME OUT WITH ok NON GAAP EARNINGS, BUT THEIR NET INCOME PLUNGED NEARLY 50%. THESE GUYS HELP FIND OIL FOR OIL COMPANIES AND THEY ARE STATING THAT OIL DRILLERS ARE CUTTING BACK. AND SLASHING SPENDING BY 50%. THEY HAVE GIVEN THEIR GUIDANCE LOWER!
( ZERO HEDGE)
ii)Crude rises as rig counts tumbles again:
iii)The IEA warns that both the Saudi and the Russians will pump as much oil as they can and will not pay any attention to “freezes”
ii)The Russians are mocking the west’s rigging of the precious metals market”( Sputnik/GATA/Chris Powell)
iii)Dave Kranzler shows the extreme manipulation that is happening and will be happening in the coming week as we go into options expiry week:
( Dave Kranzler/IRD)
9.USA STORIES WHICH WILL INFLUENCE THE PRICE OF GOLD/SILVER
i)As expected USA manufacturing PMI flash prints at 50.8 missing expectations of 52.0. This is the lowest print since 2009. This is a reading of the entire USA:
( zero hedge/PMI)
ii)The Bond king speaketh:
Two points of interest:
a) He feels Trump will win and will be good for the economy
b) The Fed has given up on raising rates
(courtesy Gundlach/zero hedge)
iii)We have outlined to your on several occasions that the used car prices are coming down and that this is causing problems for the new car market as it is much cheaper to buy a used car than a new one. The Volkswagen car settlement case in NY will create havoc as countless numbers of used Volkswagen cars will flood the market once they are fixed
( zero hedge)
iv)Greg Hunter’s weekly wrap up