Good evening Ladies and Gentlemen:
Gold: $1,289.40 up $23.60 (comex closing time)
Silver 17.79 up 24 cents
In the access market 5:15 pm
Let us have a look at the data for today
At the gold comex today,on first day notice we had a good delivery day, registering 25 notices for 2500 ounces for gold,and for silver we had 783 notices for 3,915,000 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 rose by a tiny 207 contracts up to 203,677 despite the fact that the price was silver was way up to the tune of 26 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 within spitting distance of all time highs for OI with respect to silver
In silver we had 783 notices served upon for 3,915,000 oz.
In gold, the total comex gold OI ROSE by a gigantic 23,385 contracts, UP to 525,414 contracts AS the price of gold was UP $15.90 with THURSDAY’S TRADING(at comex closing). You can just imagine what the OI for gold and silver will be like on Monday. Remember we are always 24 hours back in OI ( i.e. real OI for Friday will be received on Monday)
We had no change in 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 rise by only 207 contracts up to 203,677 despite the fact that the price of silver was UP by a huge 26 cents with THURSDAY’S trading. The gold open interest ROSE by A GIGANTIC 23,385 contracts AS gold ROSE by $15.90 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. Also the bankers are resolute in supplying non backed gold paper but they do not want to supply more silver paper.
2 a) Gold trading overnight, Goldcore
3. ASIAN AFFAIRS
i)Late THURSDAY night/ FRIDAY morning: Shanghai closed DOWN BY 7.26 POINTS OR 0.25% / Hang Sang closed DOWN 320.98 OR 1.50%. The Nikkei closed FOR HOLIDAY . Australia’s all ordinaires CLOSED UP 0.51% AS RESOURCE STOCKS DOING WELL. Chinese yuan (ONSHORE) closed DOWN at 6.4855. Oil ROSE to 46.45 dollars per barrel for WTI and 48.00 for Brent. Stocks in Europe ALL IN THE RED . Offshore yuan trades 6.4885 yuan to the dollar vs 6.4855 for onshore yuan.
REPORT ON JAPAN SOUTH KOREA AND CHINA
a) REPORT ON JAPAN
see trading overnight
b) REPORT ON CHINA
This is scary!! China in this latest USA-China escalation, Beijing denies a USA aircraft carrier access to a Hong Kong harbour:
( zero hedge)
i)The head of Deutsche Bank’s integrity committee, a lawyer, has been fired due to him being overzealous!
( zero hedge)
The real issue surrounding the globe: huge debt, not only at the sovereign level but also the corporate level. Debt to GDP rises to astronomical heights with respect to sovereigns like Japan, China, Greece Italy and the USA. If we take China, the total debt to GDP is 350%. Japan it is 450%. This is a runaway train ready to crash:
( Guy Hasselman/Scotia Bank)
ii)This is something to watch. When the Yen/South SAfrican Rand reaches high levels, it generally means crisis time: previous shocks where the cross was at all time highs;
i)Due to the higher prices for oil, USA shale companies are back in business and pumping out more oil. Now OPEC in response will also boost exports to near record levels trying to get them out of business
( zero hedge)
ii)And that sends the message to dump oil:
iii Rig counts decline and yet crude cannot climb:
i)Gold and silver skyrocket during the night/trading overnight
ii)Today’s commentary from Alasdair Macleod: a very important read as Alasdair believes it is in the interest of Saudi Arabia to sell its 5% stake in Aramco to China and in return, China removes a big block of its unwanted dollars.
iii)This will be another dagger into the heart of the USA dollar: Russia is to price its oil in Roubles:( Bloomberg/GATA)
iv)For your interest…explorers hunting for gold in the Egyptian desert: i.e. ancient sites where gold may be buried:
8.USA STORIES WHICH WILL INFLUENCE THE PRICE OF GOLD/SILVER
i)In the USA the consumer is 70% of GDP. With the latest results, savings rate rose while spending disappointed again. The consumer has reached peak debt!! and cannot spend anymore
( zero hedge)
ii)the all important Chicago National manufacturing PMI tumbles again due to lack of orders. This is a very significant index as it measures manufacturing at the national level and mfg is collapsing!
iv)The Fed just found its next excuse not to raise rates: BREXIT.
v)I have highlighted this to you on countless occasions but it is worth repeating;
vi)The following is interesting: The USA treasury, the biggest manipulator of them all, gives explicit warnings to China, Japan,South Korea, Taiwan and Germany not to devalue their currencies: I understand the first 4 countries but Germany? It does not have a currency, it is part of the EME (Euro). The key country named , of course is China. Actually it was China that warned the USA that if the Americans raised their interest rate, then China would devalue!