Good evening Ladies and Gentlemen:
I will be reporting at my normal time June 9.2016
Gold: $1,259.80 UP $15.40 (comex closing time)
Silver 16.97 UP 60 cents
In the access market 5:15 pm
i) the June gold contract is an active contract. Late last night we had a smaller 123 notices filed for 12300 oz. The total number of notices filed in the 7 days is enormous at 13006 for 1,300,600 oz. (40.54 tonnes) WHAT IS MORE FASCINATING WAS OUR FRONT JUNE MONTH INCREASED IN NET OI BY 678 CONTRACTS LAST THURSDAY(67,800 OZ). ON FRIDAY IT INCREASED BY 78 CONTRACTS OR 7800 OZ, ON MONDAY IT INCREASED BY 264 CONTRACTS OR 26400 OZ. YESTERDAY, IT INCREASED BY 284 CONTRACTS. FOR 28,400 OZ. AND TODAY IT INCREASED BY 38 CONTRACTS OR 3800 OZ. THE ENTITY STANDING DOES NOT WANT FIAT AND IT SURE LOOKS LIKE A SOVEREIGN IS STANDING FOR GOLD.
Let us have a look at the data for today
Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 272.56 tonnes for a loss of 30 tonnes over that period
In silver, the total open interest FELL by 989 contracts DOWN to 192,376 DESPITE THE FACT THAT THE PRICE OF SILVER WAS DOWN by only 5 cents with respect to YESTERDAY’S trading. In ounces, the OI is still represented by just under 1 BILLION oz i.e. 0.962 BILLION TO BE EXACT or 137% 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 rose by a CONSIDERABLE 3,682 contracts UP to 496,330 DESPITE THE FACT THAT the price of gold was DOWN BY $0.20 with YESTERDAY’S trading (at comex closing).
With respect to our two criminal funds, the GLD and the SLV:
WITH RESPECT TO GLD
We had no change in inventory from the GLD/Inventory rests at 881.15 tonnes.
And now for SLV
We had no change in inventory into the SLV Inventory/Tonight it rests at 338.725 million oz.
Both the GLD and SLV are massive frauds as they have no metal behind them!
First, here is an outline of what will be discussed tonight:
1. Today, we had the open interest in silver FALL by 989 contracts DOWN to 192,376 despite the fact that the price of silver was DOWN BY ONLY 5 cents with YESTERDAY’S trading. The gold open interest ROSE by 3,682 contracts UP to 496,330 DESPITE THE FACT THAT GOLD WAS DOWN $0.20 YESTERDAY.
2 a) Gold trading overnight Europe, Goldcore
2b) Gold trading earlier this morning USA;
3. ASIAN AFFAIRS
i)Late TUESDAY night/ WEDNESDAY morning: Shanghai closed DOWN BY 8.89 PTS OR 0.30% /Hang Sang closed DOWN 30.36 OR 0.14%. The Nikkei closed UP 155.47 POINTS OR 0.93% Australia’s all ordinaires CLOSED DOWN 0.02% Chinese yuan (ONSHORE) closed DOW at 6.5715 Oil ROSE to 51.12 dollars per barrel for WTI and 52.09 for Brent. Stocks in Europe ALL IN THE RED . Offshore yuan trades 6.5771 yuan to the dollar vs 6.5715 for onshore yuan.THE SPREAD BETWEEN ONSHORE AND OFFSHORE NARROWS)
REPORT ON JAPAN SOUTH KOREA AND CHINA
a) REPORT ON JAPAN
The following is a major story and will no doubt have implications going forward for the central bank of Japan. Today we find that Japan’s biggest bank has quit being a primary dealer for sovereign bonds. The reason for them leaving is simple: negative interest rates are killing their balance sheet and they see no reason to buy the bonds. Actually bank levels of owing sovereign bonds have fallen as the Central Bank gobbles up 100% of new issuance;
( zero hedge)
b) REPORT ON CHINA
i)The rhetoric between China and the USA grows louder by the day. China now states that a USA plane entered South China Seas again and close to China’s air space. China sent up two planes to intercept the USA plane. China states that the USA is deliberating hyping up the situation.
I think China will send a message to the USA in the form of a run on gold and silver at the comex
ii) Chinese oil imports drop to 4 month lows. A good indicator that their economy is slowing and thus the global economy is slowing down.
4. EUROPEAN AFFAIRS
i)We now witness the growth in euro skeptic parties that wish to leave the Euro.
The 4 star party of Italy headed by Grillo now has the support of the majority in Italy as 48% of citizens want to leave the Euro.Economics is playing a major role here as unemployment in the south of Italy is extremely high.
We have been detailing problems that citizens have in France and England.
However the bigger threat to the European union would be a German-exit. Germany has a a major problem in that it is the major creditor of Europe through target 2 balances and many of individual sovereign European bills have not been paid like Greece. Because the Euro is weak, Germany has been the net winner as it can export cheaply to China and the USA at the expense of other nations. However the threat in Germany is whether the ECB and the target 2 balances go bust and cannot be paid and thus Germany leaves the EU
( John Mauldin)
ii)In March we reported that Munich Re the huge German insurance giant was buying gold and were hoarding cash in order to avoid the “fees” to the ECB as part of the negative interest rate policy. Now we see another NIRP blowback: the German bank, Commerzbank is also planning to hoard billions of paper Euro notes in vaults in order to avoid the ECB fees.. However the German bank must pay for fire insurance in case billions of notes are put up in flames. What a complete joke!
iv)We have been highlighting the plight of Banco Popular over the past month. It now seems that a scandal is brewing. The rights offering has been underwritten by 10 major banking entities but it does not seem enough money has been raised. So Banco Popular went to its own customers to loan them money as long as they bought shares in the bank. That is totally illegal in Spain.
5.RUSSIAN AND MIDDLE EASTERN AFFAIRS
ii)Crude all over the map as inventories drop due to the expected increase use as the summer months are upon us. However production increases: shale?
9. PHYSICAL STORIES
i)Do not pay any attention to this: China has stashed huge amounts of gold with China’s banking system. They decide arbitrarily when to increase their official reserves which now stand at 1808 tonnes of gold.
ii )It now seems that Mervyn King former Governor of the Bank of England is joining the “younger” Alan Greenspan as a gold advocate!( Mike Kosares/GATA)
iii) Interesting! The UK Mint will now sell pension investors gold. Strangely they are not allowed to take delivery of their metal nor see it at any time
(London’s Financial Times/GATA)
10.USA STORIES WHICH MAY INFLUENCE THE PRICE OF GOLD/SILVER
i)Very unusual: USA bond yield on the 10 yr tumbles below 1.70% and the Dow rises?
( zero hedge)
ii)The following ought to confuse the Fed even more. Hirings tumble in the JOLTS latest data despite the fact that job openings are rising to record highs. When the market expands, job openings rise. When the market contracts, job openings fall. It will be difficult for the Fed to raise rates if they do not understand what is happening on the labour scene
iii)And the following is going on in DC with respect to the labour scene. In DC the minimum wage went up from $8.25 to 11.50 per hour a year ago and then today, a new law proclaiming the rate to rise to $15.00 per hour is creating havoc for our employers. Almost 50% of employers have decided to cut jobs or reduce hours. The CEO of McDonald’s was correct: by raising the minimum rate , other workers will seek higher rates. Also the higher rate cuts off thousands of entry level workers.( zero hedge)