Good evening Ladies and Gentlemen:
Gold: $1,273.70 DOWN $2.50 (comex closing time)
Silver 17.12 DOWN 11 cents
In the access market 5:15 pm
No doubt that the entire trading of gold and silver today was orchestrated by our crooked banks. They were massively selling paper gold throughout the night and early morning. Even the one billion dollar bid for gold early this morning did not spook the crooks. At 2 pm they released the beige book report and the Fed stated that it is likely that they will raise rates in June. The USA should raise rates but the problem will be China who has threatened to lower dramatically the yuan and in so doing would absolutely kill Japan, South Korea and the emerging markets. Besides no Fed would be stupid enough to raise rates three months before a USA election.
The amount standing for gold in May is simply outstanding at 6.504 tonnes, rising again by 100 oz. The previous May 2015, we had only .08 tonnes standing so you can certainly witness the difference as the demand for gold by investors/sovereigns is on a torrid pace. This makes the excitement for June gold that much more intense as more players are refusing fiat and demanding only physical metal. I will be reporting daily as to how which is standing for delivery through the active month of June. June is the second largest delivery month after December.
Let us have a look at the data for today
At the gold comex today we had a SMALL delivery day, registering 8 notices for 800 ounces for gold,and for silver we had 3 notices for 15,000 oz for the non active May delivery month.
Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 236.257 tonnes for a loss of 67 tonnes over that period
In silver, the open interest rose by 1,180 contracts up to 207,394 as the price was silver was UP by 9 cents with respect to yesterday’s trading. In ounces, the OI is still represented by just over 1 BILLION oz i.e. .1.037 BILLION TO BE EXACT or 148% of annual global silver production (ex Russia &ex China)
In silver we had 1 notice served upon for 5,000 oz.
In gold, the total comex gold OI fell by a tiny 1,436 contracts down to 595,077 as the price of gold was up $2.80 with yesterday’s trading(at comex closing).
As far as the GLD, no changes in inventory at the GLD. The inventory rests at 855.89 tonnes. 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 rise by 1,180 contracts UP to 207,394 as the price of silver was UP ONLY by 9 cents with yesterday’s trading. The gold open interest FELL by 1,436 contracts as gold was up $2.80 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. Gold investors, in the May contract month are refusing the tempting fiat offer as they want only physical.
2 a) Gold trading overnight, Goldcore
(Mark OByrne/off today
2b) Gold trading earlier this morning;
3. ASIAN AFFAIRS
i)Late TUESDAY night/ WEDNESDAY morning: Shanghai closed DOWN BY 36.10 PTS OR 1.27% / Hang Sang closed DOWN 292.39 OR 1.45%. The Nikkei closed DOWN 8.11 POINTS OR 0.06% . Australia’s all ordinaires CLOSED DOWN 0.74% Chinese yuan (ONSHORE) closed DOWN at 6.5362 as China fired another shot across the bow telling the USA not to raise rates. Oil ROSE to 47.76 dollars per barrel for WTI and 48.80 for Brent. Stocks in Europe MOSTLY IN THE GREEN . Offshore yuan trades 6.5581 yuan to the dollar vs 6.5362 for onshore yuan.THE SPREAD BETWEEN ONSHORE AND OFFSHORE WIDENS.
REPORT ON JAPAN SOUTH KOREA AND CHINA
a) REPORT ON JAPAN
b) REPORT ON CHINA
i)Just take a look at Tier 1 house prices in China, up a staggering 26-28% year over year.
This is a huge bubble and it will burst as there is not enough money earned to sustain the prices.
( zero hedge)
ii)A good illustration of the huge debt problem inside China. Kyle Bass has done huge research on China and he comes up with a total debt of 31 trillion USA with non performing loans of 20%.
The Pound/USA dollar rises due to the latest Evening Standard newspaper poll indicating the stay crowd ahead of the leave sector!
( zero hedge)
5.RUSSIAN AND MIDDLE EASTERN AFFAIRS
Saudi Arabia has a full blown liquidity crisis and they can only pay government contractors with IOU’s!
( zero hedge)
Rubber bullets are fired into the crowd as police clash with protesters. Conditions inside Venezuela worsens:
(courtesy zero hedge)
DOE shows a huge 3.5 million build against expectations of a 3.5 million draw. Crude production fell again to the lowest level since 2014. Cushing inventories rose again but less than expected. Oil initially dumped and then rose
( zero hedge)
i)Texas begins the construction of its own gold depository
( Ryan McMaken/Mises Institute)
ii)U. of Michigan is setting up a fund to invest in gold and copper mining companies
iii)John Paulson has lost big on many of his bets as he was forced to liquidate some of his investment in GLD. However Soros and others have rushed back into GLD. When this is over they will probably be shocked that the GLD has no physical behind it only paper obligations of others:( Kumar/Bloomberg news/GATA)
iv)For your enjoyment: After Maduro nationalized just about all the mines in Venezuela he needs good mining companies to go back into business and mine the precious metals. He has one problem: armed gangs are illegally mining and they enjhoy a cozy relationship with local military commanders
( Wall Street Journal/Kurmanev /GATA)
v)There is now an increased movement at Congress to Audit the Fed
vi)The TF Metals report is a must read. Craig Hemke discusses the fraudulent exercise orchestrated by the bankers by supplying non backed paper gold as they try and contain the gold price. Note the huge increase in OI in the comex gold complex and the great difficulty that the banks are now experiencing trying to cover their shortfall.
9.USA STORIES WHICH MAY INFLUENCE THE PRICE OF
GOLD AND SILVER
i)Fun and games! After the government stated that retail sales jumped the most in years, Target, misses on top line and worst of all , they slash guidance!
( zero hedge)
ii BEIGE BOOK RELEASE SENDS MARKETS SOUTHBOUND!
iv)With the rise in the USA dollar, we are now again seeing the China panic trade once again rear its ugly head. China has continued to warn the USA that if they raise rates, the POBC will devalue the yuan which will set off a massive deflation throughout the globe and totally kill Japan and South Korea as well as the emerging markets.
v) A must see interview of Rob Kirby/USAWatchdog