Good evening Ladies and Gentlemen:
Gold: $1,213.80 DOWN $6.60 (comex closing time)
Silver 16.25 down 9 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 (EXCEPT ON TWO DAYS)and today ends at 6.889 tonnes of gold standing:
The amount standing for gold at the comex in May is simply outstanding at 6.886 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 much is standing for delivery through the active month of June. June is the second largest delivery month after December.
Despite the whacking of silver, it’s OI refused to decline like gold. Our bankers and the CFTC are “quite baffled” by this. We are now in our 6th year of high open interest in silver with a low price. This has never happened before.
If I am a betting man, it looks to me like China is the long taking delivery in gold and they are the longs waiting patiently to strike in silver.
Let us have a look at the data for today
At the gold comex today we had a FAIR delivery day, registering 19 notices for 1900 ounces for gold,and for silver we had 552 notices for 2,760,000 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 263.13 tonnes for a loss of 39 tonnes over that period
In silver, the open interest FELL by 1563 contracts DOWN to 200,326 DESPITE THE FACT THAT THE PRICE OF SILVER WAS UP by 8 cents with respect to YESTERDAY’S trading..In ounces, the OI is still represented by just over 1 BILLION oz i.e. .1.002 BILLION TO BE EXACT or 143% of annual global silver production (ex Russia &ex China)
In silver we had 552 notices served upon for 2,760,000 oz.
In gold, the total comex gold OI fell by a CONSIDERABLE 17,134 contracts DOWN to 507,960 as the price of gold was DOWN $3.25 with yesterday’s trading(at comex closing). They certainly got the liquidation in gold but not silver. However what is surprising is the fact that we have still an extremely high OI for the front June contract month (active)
With respect to our two criminal funds, the GLD and the SLV:
We had no change in gold inventory at the GLD The inventory rests at 868.66 tonnes. .
We had no change in silver inventory at the SLV/Inventory rests at 335.739 million oz
First, here is an outline of what will be discussed tonight:
1. Today, we had the open interest in silver FALL by 1563 contracts DOWN to 200,326 as the price of silver was UP by 8 cents with YESTERDAY’S trading. The gold open interest FELL by 17,134 contracts as gold was down $3.20 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. We ended the month with a huge 6.889 tones standing and it looks like we are going to have a dandy gold stand in June.
2 a) Gold trading overnight, Goldcore
(Mark OByrne/off today
2b) Gold trading earlier this morning;
3. ASIAN AFFAIRS
i)Late THURSDAY night/ FRIDAY morning: Shanghai closed UP BY 1.39 PTS OR 0.05% / Hang Sang closed UP 179.66 OR 0.88%. The Nikkei closed UP 62.38 POINTS OR 0.37% . Australia’s all ordinaires CLOSED UP 0.33% Chinese yuan (ONSHORE) closed DOWN at 6.5605 . Oil ROSE to 49.05 dollars per barrel for WTI and 48.97 for Brent. Stocks in Europe ALL IN THE GREEN . Offshore yuan trades 6.5686 yuan to the dollar vs 6.5605 for onshore yuan.THE SPREAD BETWEEN ONSHORE AND OFFSHORE WIDENS A BIT.
REPORT ON JAPAN SOUTH KOREA AND CHINA
a) REPORT ON JAPAN
Japan was intent on forcing the G7 to warn of “global economic crisis” as they want to lower the value of the yen. The boys even refused that. Another slap in the face of Japan
( zero hedge)
b) REPORT ON CHINA
This think tank is stating that China’s credit fueled economy is spinning out of control:
( zero hedge/Richard Duncan/MacroWatch)
ii)An excellent commentary from Craig Roberts as he comments on how Greece has been looted by Germany and the rest of the EU gang.
iii) The huge, across -country labour strikes are having a devastating effect on the French economy
5.RUSSIAN AND MIDDLE EASTERN AFFAIRS
Rigs continue to decline. Expect USA production to fall off the cliff in a time frame of 18 months
( zero hedge)
9. PHYSICAL MARKETS
i)India is now taking action against the parasites, the HFT trader
( zero hedge)
ii)We brought this to your attention but it is worth repeating. First Majestic Silver reports that it is dealing with silver mfgrs. directly as they seek dwindling supplies:
iii)After 7 months on their new scheme to monetize gold, the Indian banks have only succeeded in acquiring 2800 kg of gold: ( 90,000 oz or 2.79 tonnes)
v)The following is a huge story. For the first time ever England is importing gold from Switzerland!! They imported 79 tonnes on gold in April following 40 tonnes in March.
Lawrie Williams believes that it may be GLD.
At the beginning of May we had 836 tonnes of gold
At the beginning of March we had 793 tonnes
Thus we added in the two months; 43 tonnes to the GLD
Gold imported from Switzerland in the two months: 119 tonnes
the gold coming from Switzerland is not entering the GLD!
Ladies and Gentlemen:
London ran out of unallocated gold
1 it sure explains the turmoil inside the comex gold inventory
2 it sure sets up an interesting June delivery month
( Lawrie Williams/Sharp’s Pixley.)
USA STORIES WHICH MAY INFLUENCE THE PRICE OF GOLD/SILVER
i)First quarter GDP revision is slightly higher at .8%. However expectations were thought to be around .9% to 1.0%. Janet will not glean much from this. They will not get any important directional indicators until Q2 data starts rolling in, but that will come at the end of July.
( zero hedge)
ii)The all important and impartial U. of Michigan confidence index falls. Inflation expectations tumbled to record lows. Remember that the consumer is 70% of the USA GDP
( U. of Michigan Consumer Confidence Index./zero hedge)
iii)It does not look good for Hillary:
iv)The clown, Janet Yellen states that a rate hike is needed “for ammo in case of a shock to the economy: that sent all markets downward:
v)The bets of a rate hike rise. However the yield curve flattens suggesting that most do not believe that this is the right move for the fed i.e. a policy error.