Good evening Ladies and Gentlemen:
Gold: $1,265.50 up $15.90 (comex closing time)
Silver 17.55 up 26 cents
In the access market 5:15 pm
From last night’s access market through to the opening of Japan, the bankers were doing everything possible to knock gold off its perch. Then suddenly, Kuroda of the Central Bank of Japan shocked all of the traders by doing absolutely nothing. Everyone was expecting some sort of new QE. That sent the Japan skyrocketing by over 340 basis points, the Nikkei plummeted by over 1000 points and then bourses around the world were hit pretty hard. The big winner was gold and silver as they immediately rebounded and that put a huge dent in the plans of the bankers with respect to the London’s options which expire tomorrow morning. If they fail tomorrow that would be the first time in many years that the bankers have failed during the entirety of options expiry week.
Let us have a look at the data for today
At the gold comex today, we had a good delivery day, registering 30 notices for 3000 ounces for gold,and for silver we had 2 notices for 10,000 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 225.51 tonnes for a loss of 77 tonnes over that period.
In silver, the open interest fell by 3,278 contracts down to 203,470 despite the fact that the price was silver was up by 18 cents with respect to yesterday’s trading. In ounces, the OI is still represented by 1 over BILLLION oz (1.01 BILLION TO BE EXACT or 145% of annual global silver production (exRussia &ex China) We are now at all time highs for OI with respect to silver
In silver we had 0 notices served upon for nil oz.
In gold, the total comex gold OI ROSE by 4142 contracts, UP to 502,029 contracts AS the price of gold was UP $7.00 with WEDNESDAY’S TRADING(at comex closing).
We had a huge addition of 1.49 tonnes of gold inventory at the GLD, thus the inventory rests tonight at 804.14 tonnes.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 335.580 million oz.
First, here is an outline of what will be discussed tonight:
1. Today, we had the open interest in silver fall by 4,278 contracts down to 203,470 despite the fact that the price of silver was UP by only 18 cents with WEDNESDAY’S trading. The gold open interest ROSE by A LARGE 4,145 contracts AS gold ROSE by $7.00 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 7.47 POINTS OR 0.25% / Hang Sang closed UP 26.43 OR 0.12%. The Nikkei closed DOWN 623.33 POINTS OR 3.61% . Australia’s all ordinaires CLOSED UP 0.73%. Chinese yuan (ONSHORE) closed EVEN at 6.4760. Oil FELL to 45.17 dollars per barrel for WTI and 47.14 for Brent. Stocks in Europe ALL IN THE RED . Offshore yuan trades 6.4831 yuan to the dollar vs 6.4760 for onshore yuan.
REPORT ON JAPAN SOUTH KOREA AND CHINA
a) REPORT ON JAPAN
ii) The big news: The central bank of Japan did absolutely nothing. That disappointed the markets and the Nikkei initially dropped 1000 points and finishing down 624 points. The USA/Yen crashed 3 huge handles to 108.07. Markets around the globe tumbled:
(courtesy zero hedge)
b) REPORT ON CHINA
iii) As we pointed out to you yesterday, Chinese commodity trading volume has crashed
The bubble has burst!!
( zero hedge)
v)China injected 1 trillion usa into its economy and did get industrial profits rising by 11% year over year. However China is still stuck with huge excess capacity. Another problems is payments due to suppliers is running at 83 days and that is not good. Remember also that this month commodity prices burst which should burst everything inside China
Oh boy!! this is trouble. The EU rejects the Greek emergency summit. As you will recall, Greece has big repayments in July and it does not seem that they will be made
(courtesy Mish Shedlock/)
Ports around the globe very quite as goods are just not moving
( C. Paris/Wall Street Journal/David Stockman/ContraCorner)
i) this is huge!! We now have the largest Russian bank, VTB that will supply up to 100 tonnes of gold per year to China. Since Russia generally keeps all of its gold and purchases gold on the foreign markets for its own account, they will now supply China.
iiA very important commentary tonight from Bill Holter
a must read…
My response to Bob Moriarty (public article)
iii)Dave Kranzler of IRD on gold, the market story of the year:
( Dave Kranzler/IRD)
8.USA STORIES WHICH WILL INFLUENCE THE PRICE OF GOLD/SILVER
i)The actual first quarter GDP grew at only .5% instead of the .7% expectations:
( zero hedge)
David Stockman lays out the political mess inside the USA
iii)David Stockman has the detailing on a continuous basis the S and P earning last year. The official earnings for the year: slightly over 86 dollars with a P/E at 24 x. Now we are entering first quarter 2016 and the S and P earnings are coming in at a growth rate of -8%.
iv)Carl Icahn dumps his entire stake in Apple:
v)Strange!! our Quant specialist, Marko Kolanovic is suddenly worried about the end game and believe it or not discusses how gold will be useful in this environment:
vi) What took them so long! The SEC will now begin to crack down on non GAAP accounting earnings: