Good evening Ladies and Gentlemen:
Gold: $1,274.60 up $10.70 (comex closing time)
Silver 17.30 up 22 cents
In the access market 5:15 pm
Today, our banker friends huffed and they puffed when they saw the latest OI figures for silver/gold.Gold OI: 579,777 and silver: 205,391. The open interest for silver is a noose around their neck. They were mildly successful in removing a small number of gold leaves. They took their temper tantrum initially on the gold/silver shares midday but that too was short lived. Gold and silver had a good day, and by closing time, the gold/silver equity shares also had a stellar day.
Let us have a look at the data for today
At the gold comex today we had a GOOD delivery day, registering 100 notices for 10,000 ounces for gold,and for silver we had 25 notices for 125,000 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 232.13 tonnes for a loss of 71 tonnes over that period
In silver, the open interest rose by 1476 contracts up to 205,391 as the price was silver was UP by 1 cent with respect to yesterday’s trading. Not much liquidation for us to see today . In ounces, the OI is still represented by just over 1 BILLION oz i.e. .1.027 BILLION TO BE EXACT or 146% of annual global silver production (exRussia &ex China)
In silver we had 25 notices served upon for 125,000 oz.
In gold, the total comex gold OI FELL BY 7429 CONTRACTS DOWN to 579,777 contracts AS THE PRICE OF GOLD WAS DOWN $1.90 with YESTERDAY’S TRADING(at comex closing). Again the liquidation of contracts was not to the liking of our crooked banks.
As far as the GLD, we had another huge change in tonnes (despite the gold price being down) a deposit of 2.67 tonnes into the GLD. The new inventory rests at 841.92 tonnes. I have no problem in telling you that the addition was paper gold and not physical as London is having a tough time finding real metal. We had no changes in silver inventory at the SLV. Inventory rests at 335.073 million oz.
First, here is an outline of what will be discussed tonight:
1. Today, we had the open interest in silver ROSE by 1,476 contracts UP to 205,391 as the price of silver was UP by 1 cent with YESTERDAY’S trading. The gold open interest FELL by A SMALLISH 7,429 contracts as gold WAS DOWN $1.90 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.I also believe that for the first time we are witnessing players wishing to stand for real physical in gold. The May contract for gold investors are refusing the tempting fiat offer and want only physical. The amount standing for May remains at a very high 6.37 tonnes.
2 a) Gold trading overnight, Goldcore
(Mark OByrne/off today
2b) Gold trading earlier this morning;
2c) COT report
3. ASIAN AFFAIRS
i)Late TUESDAY night/ WEDNESDAY morning: Shanghai closed UP BY 4.446 PTS OR 0.16% / Hang Sang closed DOWN 187.39 OR 0.93%. The Nikkei closed UP 13.82 POINTS OR 0.09% . Australia’s all ordinaires CLOSED UP 0.54% Chinese yuan (ONSHORE) closed UP at 6.50160. Oil ROSE to 44.74 dollars per barrel for WTI and 45.88 for Brent. Stocks in Europe DEEPLY IN THE RED . Offshore yuan trades 6.5337 yuan to the dollar vs 6.50160 for onshore yuan.THE SPREAD BETWEEN ONSHORE AND OFFSHORE NARROWS.
REPORT ON JAPAN SOUTH KOREA AND CHINA
a) REPORT ON JAPAN
b) REPORT ON CHINA
i)Our important insolvent Italian bank, Banco Popolare is in trouble again today with a surprise Q1 loss driven by more soaring bad loan writedowns. It is down 14% on the day and 25% on the week. As you will recall they are planning a merger with Banca Popolare di Milano that will create Italy’s third largest banking group. Italy’s entire non performing loan sector is around 360 billion euros. They Italian authorities have created a bad bank Atlas which is suppose to house most of these bad loans. The problem, of course, is that they raised only 4.5 billion euros to purchase the junk. And please note the systemic risk here when you look at the performance of our favourite European bank: Deutsche bank
( zero hedge)
ii)Denmark has had 4 years of negative interest rates (NIRP). The idea for NIRP is to create inflation in the country as they bring forward spending by creating costs to the citizen for keeping funds in the bank. However it has having the opposite effect: citizens are now more prone not to spend because they sense something is wrong. Hugh-Smith goes over the various aspects as to why NIRP has failed!
We have been highlighting this to you on several occasions:
If the USA dollar strengthens then Europe Japan and Emerging Markets win but China loses and so does commodities. If the USA dollars weakens, then Europe, Japan emerging markets loses, but China and commodities win. Because of this, a war is now waging between central banks trying to put their country on the winning side. It generally ends in a global failure. And as Smith correctly states:
“no nation ever devalued its way to hegemony or empire.”
a must read.
( Charles Hugh Smith)
6.RUSSIAN AND MIDDLE EASTERN AFFAIRS
i)The nuclear arms race is back as Russia is furious with the USA as it launches a European ballistic missile shield:
( zero hedge)
ii)The crook Erdogan has threatened Europe again. Unless 1.they get 80 million visa free travel for its citizens and 2. the 3 billion euros goes directly to Erdogan and not to UN agencies to dispense with the aid, then he will unleash the refugees throughout Europe;
Oil spikes big time after the DOE reports a huge inventory draw down and a big production drop;
(courtesy DOE/zero hedge)
i)Craig Hemke gives a terrific commentary on the importance of the latest banking participation report. Because the banks have accounts in London with OTC and with LBMA, these positions are not accounted for. However from the participation report you can see the control the banks have by selling naked huge amounts of gold contracts to stifle gold’s advance. The mantra of the CFTC is that the futures exchange is a price discovery mechanism. This is now thrown out the window”
( Craig Hemke/ TF Metals/Chris Powell/GATA)
ii)Legendary hedge fund manger Paul Singer now states that gold is just beginning its rally. Strangely JPMorgan is also predicting a new gold bull market
( Paul Singer/Elliott Management/JPMorgan Marcelli)
iii)A terrific commentary from Steve St Angelo on record silver eagles and maples from Canada and the USA. The data has now been released in Canada for maple sales. Together with USA Eagles, both exceed mine production by over 33 million oz. Thus both countries must import silver for other uses such as pharmaceuticals, photography etc.
USA STORIES WHICH WILL INFLUENCE THE PRICE OF GOLD/SILVER
i)Macy’s stock was massacred today after the company slashed its outlook. They scared the living daylights out of investors when they stated that the consumer is “uncertain”. Inventories reach record levels against declining revenues of 7.4% IN THE QUARTER
Macy’s is a good Bellwether was to what is going on inside the uSA
( zero hedge/Macy’s)