Good evening Ladies and Gentlemen:
Gold: $1,214.80 UP $1.10 (comex closing time)
Silver 15.97 down 28 cents
In the access market 5:15 pm
i) the June gold contract is an active contract and the second biggest delivery month of the year following December. Friday night, the bankers first day delivery issuance to our longs to be settled on June 1 was huge: the number was 3,508 gold notices for 350,800 oz or 10.9 tonnes of gold.The number of open interest standing for gold, released at 1:30 pm this afternoon is astronomical at 15,493 contracts and thus 1,549,300 oz will be initially standing for gold in this active month of June (48.189 tonnes)
In silver we have 555 contracts standing for 2,775,000 oz of silver which is huge for an off month.
Let us have a look at the data for today
At the gold comex today we had a MONSTER delivery day FOR FIRST DAY NOTICE, registering 3508 notices for 350,800 ounces for gold OR 10.9 TONNES,and for silver we had 3 notices for 15,000 oz for the non active JUNE delivery month.In June, open interest for gold has a whopping 15,493 contracts standing for 1,549,300 oz or 48.189 tonnes.
Silver has 555 contracts standing for 2.775,000 million oz.
Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 262.97 tonnes for a loss of 40 tonnes over that period
In silver, the total open interest FELL by 654 contracts DOWN to 199,672 DESPITE THE FACT THAT THE PRICE OF SILVER WAS DOWN by only 9 cents with respect to FRIDAY’S trading.In ounces, the OI is still represented by just under 1 BILLION oz i.e. 0.9985 BILLION TO BE EXACT or 142% of annual global silver production (ex Russia &ex China)
In silver we had 3 notices served upon for 15,000 oz.
In gold, the total comex gold OI fell by a CONSIDERABLE 14,880 contracts DOWN to 493,080 as the price of gold was DOWN $6.60 with FRIDAY’S trading(at comex closing). They certainly got the liquidation in gold but not silver.
Friday night I wrote the following:
“However what is surprising is the fact that we have still an extremely high OI for the front June contract month (active)”
And so it was. The open interest for the Front June Contract Month is an unbelievable 15,493 contracts or 48.189 tonnes of gold.
Options expiry for the gold and silver contracts ended at 12 noon. These are the LBMA and OTC contracts traded in London England.
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 654 contracts DOWN to 199,672 as the price of silver was DOWN by ONLY 9 cents with FRIDAY’S trading. The gold open interest FELL by 14,880 contracts down to 493,080 as gold was down $6.60 ON FRIDAY. Our bankers have a lot of work cut out for them as the 48 tonnes of gold standing will break the bank i.e. the comex.
2 a) Gold trading overnight, Goldcore
(Mark OByrne/off today
2b) Gold trading earlier this morning;
3. ASIAN AFFAIRS
i)Late MONDAY night/ TUESDAY morning: Shanghai closed UP BY 94.17 PTS OR 3.34% / Hang Sang closed UP 185.70 OR 0.90%. The Nikkei closed UP 166.96 POINTS OR 0.98% . Australia’s all ordinaires CLOSED DOWN 0.54% Chinese yuan (ONSHORE) closed DOWN at 6.5776 . Oil ROSE to 49.52 dollars per barrel for WTI and 50.05 for Brent. Stocks in Europe ALL IN THE RED . Offshore yuan trades 6.5870 yuan to the dollar vs 6.5776 for onshore yuan.THE SPREAD BETWEEN ONSHORE AND OFFSHORE WIDENS A BIT.
REPORT ON JAPAN SOUTH KOREA AND CHINA
a) REPORT ON JAPAN
Trouble ahead for Japan as Abe is set to warn that there is going to be another sales tax delay: Why is this important? A delay will certainly cause our rating agencies to lower the boom on Japan again. Thus their debt will be downgraded and that can present itself with trouble as nobody will want to purchase any Japanese bonds.
( zero hedge)
b) REPORT ON CHINA
Late Sunday night early Monday morning, China sends another huge warning across the bow to Yellen. The Yuan (on shore) falls .5% down to 6.5794 and then crosses into the 6.5800 column hitting 6.5805 Monday morning. The lower yuan and higher dollar is playing havoc around the world: emerging markets are faltering due to lower commodity prices as we witness the head of Noble Industries abruptly leave office. The lower yuan will spur dollars to immediately leave China. Remember that 49% of Chinese FX reserves are short term speculative funds. It is also interesting that the comex received the highest number of notices filed for the first day notice in over 5 years:
a must read….
( zero hedge)
ii)Late Monday night/Tuesday morning:
Flash crash eliminated quickly by the central authorities
4. EUROPEAN AFFAIRS
i)Martin Senn was the former CEO of the largest insurance company in the world Zurich Insurance. He stepped down abruptly in Dec 2016. Today he committed suicide. What is really strange is that this suicide occurred 3 yrs after the previous CFO hanged himself. It sure looks like insurance companies cannot survive in a negative interest world
( zero hedge)
ii)The public unions are having a devastating effect on the economic climate in France as airports are blocked, gas stations are out of petrol and nuclear plants stretched to the limit. Yesterday France passed a new law that it is illegal for your employer to send yo an email outside of work hours. Give me a break! All public unions should be banned.
iii)wow!! this came out of nowhere: BREXIT is now more likely than “BREMAIN:
5.RUSSIAN AND MIDDLE EASTERN AFFAIRS
i)Over the weekend:
A good summary as to how Nigeria will be the next Venezuela as the undergoing a huge meltdown.
( London’s Financial Times)
Despite the highest oil production from OPEC, oil spikes close to 50 dollars due to turmoil in Libya and Nigeria:
( zero hedge)
i a)So what else is new: the latest brand new anti corruption Minister quits after a leak which exposes his involvement in the corruption scandal:
( zero hedge)
1 b) Brazil now in a depression as investors flee the country
ii)How Venezuela with the world’s largest oil reserves in the ground, collapsed. The socialistic government expropriated all the major businesses in Venezuela and as such no proper mechanism in place as to what to produce. This should be a lesson to all:
9. PHYSICAL MARKETS
i)We have highlighted this story last week as Venezuela’s gold reserves plunge by 1/3 as the repay their debt with gold. They should run out by the end of the second quarter of 2016.
ii)A very big story: the CEO of Noble Group, Asia’s largest commodity trader has unexpectedly resigns. These guys are traders in base metals and oil and a default will cause huge derivative damage throughout the globe.( zero hedge)
iii)When Grant Williams speaks, you listen. He explains why he accumulates gold and by the world will introduce a wealth tax:
( Grant Williams)
iv)The LBMA’s objective is to keep most of the us in ignorance as to the true nature of gold settlements, forwards etc.
v)The Libertarian platform is a failure with respect to gold:
USA STORIES WHICH MAY INFLUENCE THE PRICE OF GOLD/SILVER
i)Personal spending spikes by 1% caused no doubt by the huge rise in oil prices and gas prices. The higher spending causing savings to plummet:
( zero hedge)
ii)This morning we had two biggy reports:
iii)The second report showed consumer confidence plunging to 10 month lows.
iiib)The following is quite shocking: a huge 6 sigma miss again on the Dallas Mfg Fed index plunging from 13.9 down to -20.8. Even the higher price of oil is not helping the Dallas area manufacturing sector:
iv)David Stockman comments on how Main Street street is losing out to Wall Street
( David Stockman/ContraCorner)
v)The author goes into great detail on the durable goods orders and how in reality this number has been continually revised downwards. Since 2012 the total revision is 440 billion USA. Thus the economy has never grown at all:
( Alhambra Partners)
vi)Sam Zell dumps major holdings in the USA real estate market as he warns a crash in imminent:
( zero hedge)