Good evening Ladies and Gentlemen:
Gold: $1,252.40 DOWN $1.80 (comex closing time)
Silver 16.52 UP 4 cents
In the access market 5:15 pm
Today after a great start for gold and silver, the bankers thought in necessary to raid again. The gold/silver equity shares paid no attention to these antics and rose again today.
There is something really bothering them.
i)There was no question that the high open interest in gold for the entire complex, plus the high OI for June was one factor
ii) the continued high OI for silver and its refusal to melt with constant whacking
iii) the May gold contract is a non active contract. Yet we started the month with 5.67 tonnes of gold standing and it has increased every single day and today sits at 6.68 tonnes of gold standing:
The amount standing for gold at the comex in May is simply outstanding at 6.6811 tonnes. 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 GOOD delivery day, registering 69 notices for 6900 ounces for gold,and for silver we had 72 notices for 360,000 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 240.39 tonnes for a loss of 63 tonnes over that period
In silver, the open interest FELL by 2,302 contracts DOWN to 202,627 as the price was silver was DOWN by 64 cents with respect to yesterday’s trading. AGAIN TODAY, NOT NEARLY THE LIQUIDATION THAT THEY HAVE BEN LOOKING FOR. In ounces, the OI is still represented by just over 1 BILLION oz i.e. .1.013 BILLION TO BE EXACT or 144% of annual global silver production (ex Russia &ex China)
In silver we had 72 noticeS served upon for 360,000 oz.
In gold, the total comex gold OI fell by a CONSIDERABLE 17,504 contracts down to 573,196 as the price of gold was DOWN $19.50 with yesterday’s trading(at comex closing). They certainly got the liquidation in gold but not silver. However our banker boys have another problem in gold which I will highlight below.
We had a monster deposit in gold inventory at the GLD to the tune of 8.92 tonnes. The inventory rests at 869.26 tonnes. I have no doubt whatsoever that this was a paper addition as they could not possibly find 10 tonnes in one day.We had a good sized deposit in silver inventory at the SLV to the tune of 951,000 oz . Inventory rests at 336.024 million oz.
First, here is an outline of what will be discussed tonight:
1. Today, we had the open interest in silver fall by 2,302 contracts down to 202,627 as the price of silver was DOWN by 64 cents with yesterday’s trading. The gold open interest FELL by 17,504 contracts as gold was down $19.50 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;
2c) COT report
3. ASIAN AFFAIRS
i)Late THURSDAY night/ FRIDAY morning: Shanghai closed UP BY 18.56 PTS OR 0.66% / Hang Sang closed UP 157.87 OR 0.80%. The Nikkei closed UP 89.69 POINTS OR 0.54% . Australia’s all ordinaires CLOSED UP 0.53% Chinese yuan (ONSHORE) closed DOWN at 6.5471 . Oil FELL to 48.24 dollars per barrel for WTI and 48.81 for Brent. Stocks in Europe ALL IN THE GREEN . Offshore yuan trades 6.5649 yuan to the dollar vs 6.5471 for onshore yuan.THE SPREAD BETWEEN ONSHORE AND OFFSHORE NARROWS.
REPORT ON JAPAN SOUTH KOREA AND CHINA
a) REPORT ON JAPAN
wow!! late this afternoon, the central bank of Japan threw a huge trial balloon for the markets over here. This was released after midnight i.e. early Saturday morning for them.
Basically they are starting to prepare for losses on its huge debt holdings once QE ends.
They will have two problems:
i)as rates rise, bonds sink and thus huge losses
ii) a soaring yen, being unwound by everybody will kill the country’s exports
(courtesy zero hedge)
b) REPORT ON CHINA
China sends a strong message to the USA to cease immediately spy plane missions near its borders. If the USA does not respond, then China would devalue the yuan greatly!!
( zero hedge)
We now have an investigation of the Greek banks being investigated for funding politicians in Greece
( zero hedge)
5.RUSSIAN AND MIDDLE EASTERN AFFAIRS
Protesters have stormed Baghdad’s Green zone and now have entered the Prime Minister’s office..looks precarious to me
7. OIL ISSUES
i)The huge disruptions that we have had with respect to oil has now faded away as Canada, Libya and Nigera resume their production
( zero hedge)
ii)Just take a look at the idle tankers off the coast of Singapore:
iii)Oil falls a bit after the rig count declines have finally stalled:
i)An extremely important read.
Commodity prices are rising, not because of increased activity but because the dollar is losing purchasing power. This will in turn cause bond yields to rise.
And where is trouble going to manifest itself? Alasdair explains that the Eurozone will be in deep trouble and no doubt Italy will be in the forefront.
Italy has a Debt to GDP of 130% (and probably higher) . It also has non performing loans of 360 billion euros which represents 40% of all private loans. The author correctly believes that Italian sovereign bonds yields must rise from the ridiculous 1.5% level to more realistic 7%. That is when everything blows up
USA STORIES WHICH MAY INFLUENCE THE PRICE OF GOLD AND SILVER
i) a Insolvent Illinois has it’s state workers demanding wage increases of up to 29%. These guys also have gravy train health benefits that would make the envy of anybody in the USA
( Mish Shedlock)
ib)Chicago’s pension liabilities jump by 168% and understated by a huge 11.5 billion.
ii)Consumer loan delinquencies have been hanging in there but it is business loan soaring that is causing much grief for the Fed: