Good evening Ladies and Gentlemen:
Gold: $1,251.10 DOWN $1.30 (comex closing time)
Silver 16.41 DOWN 7 cents
In the access market 5:15 pm
i) 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 6.79941 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 44 notices for 4400 ounces for gold,and for silver we had 0 notices for nil 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 240.41 tonnes for a loss of 63 tonnes over that period
In silver, the open interest FELL by only 385 contracts DOWN to 202,242 as the price was silver was UP by a tiny 4 cents with respect to Friday’s trading..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 0 notices served upon for nil oz.
In gold, the total comex gold OI fell by a CONSIDERABLE 16,559 contracts down to 556,637 as the price of gold was DOWN $1.80 with yesterday’s trading(at comex closing). They certainly got the liquidation in gold but not silver.
We had a monster deposit in gold inventory at the GLD to the tune of 3.96 tonnes. The inventory rests at 872.52 tonnes. I have no doubt whatsoever that this was a paper addition as they could not possibly find the 3 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 385 contracts down to 202,242 as the price of silver was UP by 4 cents with Friday’s trading. The gold open interest FELL by 16,559 contracts as gold was down $1.80 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 SUNDAY night/ MONDAY morning: Shanghai closed UP BY 18.14 PTS OR 0.64% / Hang Sang closed DOWN 43.17 OR 0.22%. The Nikkei closed DOWN 81,85 POINTS OR 0.49% . Australia’s all ordinaires CLOSED DOWN 0.60% Chinese yuan (ONSHORE) closed DOWN at 6.5542 . Oil FELL to 47.81 dollars per barrel for WTI and 48.14 for Brent. Stocks in Europe ALL IN THE RED . Offshore yuan trades 6.5627 yuan to the dollar vs 6.5542 for onshore yuan.THE SPREAD BETWEEN ONSHORE AND OFFSHORE NARROWS.
REPORT ON JAPAN SOUTH KOREA AND CHINA
a) REPORT ON JAPAN
i)The G7 meeting at Sendai Japan, have basically told Japan that it cannot intervene in the FX markets to lower the yen unless the USA gives its pre-approved endorsement.Japan has not been humiliated on its own turf.
If the USA does raise its interest rate in June or July, this will send turmoil throughout the globe, as Chinese FX leaves China, emerging markets tumble as does commodity prices. Europe and Japan will have a temporary reprieve as the EURO AND YEN fall as the dollar rises, but this will be short-lived until another SHANGHAI ACCORD comes into being
ii)Trade with Japan collapses as exports decline for the 7th straight month and imports decline for 16 months in a row. The decline in imports is greater than the decline in exports so Japan shows an unexpected rise in Japanese trade surplus. Japanese output shrinks at the fastest pace since 2012 and signals a complete failure in Abenomics.
b) REPORT ON CHINA
i)The number of strikes inside China has risen appreciably. As such we are witnessing the hiring of individuals on a part time basis in order to avoid social unrest:
( zero hedge)
ii)Two months ago China threw a trial balloon upon which we reported. They had a huge 31 trillion USA debt of which probably 20% was non performing/ The trial balloon was theat the POBC was going to force the banks to turn the bad debt into equity. We thought that it would not get out of the starting game. We were wrong: China has quietly bailed out 220 billion in bad debt.
iii)Soc Gen writes about the woes inside China and confirms Kyle Bass’s assessment that they will need at least a 30% devaluation. Soc Gen puts their non performing loans at 1.2 trillion USA or 12% of GDP. They have already a DEPT to GDP of 350% and have no place to put additional debt.If China goes the rout of the 15% devaluation, the yuan to usa cross would be around 7.46 to one. A 30% devaluation would put the cross at 8.44 to one. Regardless this would send a massive deflation throughout the globe and totally bury the likes of commodities, Japan, South Korea and the emerging markets.
a must read..
(courtesy Soc Gen/zero hedge)
C) SOUTH KOREA
Devastation inside South Korea as the global economy contracts. The huge problem here can be seen in the shipbuilding area where the yards have seen orders fall by a huge 94%
i)Not only Japan’s PMI printed badly but also the Eurozone which saw its PMI print 529 down from 53.0 last month and well below the 53.2 expected. It is hte hlowest in 16 months.
( ZERO HEDGE)
ii)Despite Greece’s depression, the crooks at the EU have forced hikes in VAT to 24% as well as added new taxes including lesser pensions.
iii) France hit by gas shortages as refinery workers go on strike and block all outgoing routes. There is no gas in the North West, North which includes Paris
( zero hedge)
iv)Again Deutsche bank admits that it now rigged stocks. It stock slides again
5.RUSSIAN AND MIDDLE EASTERN AFFAIRS
The algo traders lift WTI back above 48 dollars:
( zero hedge)
Well that did not take long. New President Temer has just suffered his first corruption scandal implicating the party;s planning Minister Juca and an executive with Petrobras. The theory here is that this will lead to many more in the car wash scandal including Temer:
(courtesy zero hedge)
9 PHYSICAL MARKETS
i)A good look at the trimmed down Kinross:
(courtesy James Wilson/London’s Financial Times/GATA)_
ii) Lawrie on gold/huge Russian purchase of 15.6 tonnes of gold and they are increase ing their reserves on average by this amount
(Lawrie on Gold)
10.USA STORIES WHICH MAY INFLUENCE THE PRICE OF GOLD/SILVER/
i)USA manufacturing collapses to 2009 level and these bozos are going to raise rates?
( PMI/zero hedge)
ii)The clowns at the FED have no idea what they are doing!!