Oct 7

Gold $1252.50 down  $0.50

Silver 17.42 up 12  cents

I will be back on Monday and I will bring you my normal commentary.  I will

a short version on Tuesday night and then report to you very late Wednesday night

As for gold, we will see a rise in the  gold and silver price starting Monday as China will be back from their one week holiday and they will have a feast on the low price

THE DAILY GOLD FIX REPORT FROM SHANGHAI AND LONDON

Shanghai fix closed this week for holiday

.

The Shanghai fix is at 10:15 pm est and 2:15 am est

The fix for London is at 5:30  am est (first fix) and 10 am est (second fix)

Thus Shanghai’s second fix corresponds to 195 minutes before London’s first fix.

And now the fix recordings:

Shanghai morning fix Oct 3 (10:15 pm est last night): $  holiday

NY ACCESS PRICE: $

Shanghai afternoon fix:  2: 15 am est (second fix/early  morning):$   holiday

NY ACCESS PRICE:

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

London Fix: Sept 30: 5:30 am est:  $1255.40   (NY: same time:1255.40  $:    5:30AM)

London Second fix Sept 30: 10 am est:  $1258.55  (NY same time: $1258.55 ,    10 AM)

It seems that Shanghai pricing is higher than the other  two , (NY and London). The spread has been occurring on a regular basis and thus I expect to see arbitrage happening as investors buy the lower priced NY gold and sell to China at the higher price. This should drain the comex.

Also why would mining companies hand in their gold to the comex and receive constantly lower prices.  They would be open to lawsuits if they knowingly continue to supply the comex despite the fact that they could be receiving higher prices in Shanghai.

end

For comex gold:

the total number of notices filed today :  3 for 300 oz

For silver:

for the Oct contract month:  9 notices for 45,000 oz.

Let us have a look at the data for today

.

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In silver, the total open interest fell by 2974 contracts down to 191,837. The open interest fell as the silver price was down 25 cents in yesterday’s trading .In ounces, the OI is still represented by just less THAN 1 BILLION oz i.e. .9590 BILLION TO BE EXACT or 137% of annual global silver production (ex Russia &ex China).

In silver for October we had 9 notices served upon for 45,000 oz

In gold, the total comex gold FELL by a whopping 12,059 contracts as the price of gold fell by $9.00  yesterday . The total gold OI stands at 511,340 contracts. The bankers have done a great job fleecing longs and as usual the entire gold comex OI obliterates

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With respect to our two criminal funds, the GLD and the SLV:

GLD

LAST NIGHT WE HAD NO CHANGES OUT OF THE GLD//

Total gold inventory rests tonight at: 949.65 tonnes of gold

SLV

we had no changes at the SLV

THE SLV Inventory rests at: 360.292 million oz

.

First, here is an outline of what will be discussed tonight:

1. Today, we had the open interest in silver fell by 2974 contracts down to 191,837 as the price of silver fell by 25 cents with yesterday’s trading.The gold open interest FELL by 12,059 contracts DOWN to 511,340 as the price of gold fell $9.00 IN YESTERDAY TRADING.

(report Harvey).

2.a) The Shanghai and London gold fix report

(Harvey)

 

2 b) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY:  Bloomberg

end

 

SOMEBODY BIG IS GOING AFTER PHYSICAL GOLD AT THE COMEX

Let us head over to the comex:

The total gold comex open interest FELL BY 12,059 CONTRACTS to an OI level of 511,340 the as price of gold fell by  $9.00 with yesterday’s trading.

The contract month of Sept is now off the board. The next delivery month is October and here the OI lost 135 contracts down to 251.  We had 252 notices filed on yesterday so we gained 117 notices or an additional 11,700 oz will  stand

The next delivery month is November and here the OI rose by 53 contracts up to 2988 contracts. The next contract month and the biggest of the year is December and here this month showed an decrease of 13,241 contracts down to 392,481.

Today we had  3 notices filed for 300 oz of gold.
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now for the wild silver comex results.  Total silver OI FELL BY 2974 contracts from  194,811 down to 191,837 as the  price of silver fell  to the tune of 25 cents yesterday.  We are moving  further from the all time record high for silver open interest set on Wednesday August 3:  (224,540).  The next non active delivery month is October and here the OI rose by 11 contracts up to 96. We had 27 notices filed on yesterday so we gained 38 contracts or 190,000 additional oz will  stand for delivery.The November contract month saw its OI rise by 7 contracts down to 365.   The next major delivery month is December and here it FELL BY 3224 contracts DOWN to 159,493.

today we had 9 notices filed for silver: 45,000 oz

\
INITIAL standings for OCTOBER
 Oct 4.
Gold
Ounces
Withdrawals from Dealers Inventory in oz  NIL
Withdrawals from Customer Inventory in oz  nil
 xxxx
Deposits to the Dealer Inventory in oz nil oz
Deposits to the Customer Inventory, in oz 
 xxx oz
No of oz served (contracts) today
3 notices 
300 oz
No of oz to be served (notices)
248 contracts
 24800
oz
Total monthly oz gold served (contracts) so far this month
7786contracts
778,600 oz
24.21 tonnes
Total accumulative withdrawals  of gold from the Dealers inventory this month    oz
Total accumulative withdrawal of gold from the Customer inventory this month    96.45 oz
Note:
If anybody is holding any gold at the comex, you must be out of your mind!!!
since comex gold storage is unallocated , rest assured any gold stored at the comex will be compromised!
I also urge all of you do not place any option trades at the comex as these gangsters will gun you down.
If you are taking delivery of gold/silver please remove it from comex banks and place it in private vaults
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
For October:

Today, 0 notices were issued from JPMorgan dealer account and 0 notices were issued form their client or customer account. The total of all issuance by all participants equates to 3 contract  of which 1 notices were stopped (received) by jPMorgan dealer and  0 notice(s) was (were) stopped received) by jPMorgan customer account.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
To calculate the initial total number of gold ounces standing for the Oct contract month, we take the total number of notices filed so far for the month (7783) x 100 oz or 778,300 oz, to which we add the difference between the open interest for the front month of OCT (386 contracts) minus the number of notices served upon today (252) x 100 oz per contract equals 791,700 oz, the number of ounces standing in this  NON active month of September.
 
Thus the INITIAL standings for gold for the SEPT contract month:
No of notices served so far (7786) x 100 oz  or ounces + {OI for the front month (251) minus the number of  notices served upon today (3) x 100 oz which equals 803,400 oz standing in this non active delivery month of Oct  (24.989 tonnes).
we gained 38 contracts or an additional 3800 oz that will stand for delivery.
Total dealer inventor 2,311,300.256 or 71.89 tonnes
Total gold inventory (dealer and customer) =10,572,568.400 or 328.85 tonnes 
 
Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 328.85 tonnes for a  gain of 26  tonnes over that period. However since August 8 we have lost 25 tonnes leaving the comex.(corrected total from yesterday and today)
Ladies and Gentlemen:  the comex is beginning to lose some of its gold as no doubt the Shanghai fix is having its effect.
The gold comex is an absolute fraud.  The use of kilobars and exact weights makes the data totally absurd and fraudulent! To me, the only thing that makes sense is the fact that “kilobars: are entries of hypothecated gold sent to other jurisdictions so that they will not be short with their underwritten derivatives in that jurisdiction.  This would be similar to the rehypothecated gold used by Jon Corzine.ALSO TODAY THE LIQUIDATION OF 96 CONTRACTS HAVING STOOD FOR THE ENTIRE MONTH AND THEN ROLLING MAKES ABSOLUTELY NO SENSE
 
IN THE LAST MONTH and one half , 25 NET TONNES HAS LEFT THE COMEX.
end
\
And now for silver
 
OCT INITIAL standings
 Oct 4. 2016
Silver
Ounces
Withdrawals from Dealers Inventory NIL
Withdrawals from Customer Inventory
xxx oz
xxxx
Deposits to the Dealer Inventory
 xx OZ
Deposits to the Customer Inventory 
xx oz
No of oz served today (contracts)
9 CONTRACTS
(20,000 OZ)
No of oz to be served (notices)
87 contracts
(435,000 oz)
Total monthly oz silver served (contracts) 353 contracts (1,805,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month  NIL oz
Total accumulative withdrawal  of silver from the Customer inventory this month  420,010.27 oz
today, we had xxx deposit into the dealer account:
total dealer deposit: xx oz
we had xxx dealer withdrawals:
 total dealer withdrawals: xxx oz
 we had 0 customer withdrawals:
Total customer withdrawals: nil  oz
We had xxx customer deposit:
total customer deposits: xxx oz
 
 
 
 we had xx adjustments 
The total number of notices filed today for the Oct contract month is represented by 4 contracts for 20,000 oz. To calculate the number of silver ounces that will stand for delivery in OCT., we take the total number of notices filed for the month so far at 
344) x 5,000 oz  = 1,760,000 oz to which we add the difference between the open interest for the front month of OCT (85) and the number of notices served upon today (4) x 5000 oz equals the number of ounces standing 
 
Thus the initial standings for silver for the OCT contract month:  353(notices served so far)x 5000 oz +(96 OI for front month of SEPT ) -number of notices served upon today (9)x 5000 oz  equals  2,240,000 oz  of silver standing for the OCT contract month. THIS IS STILL A HUGE SHOWING FOR SILVER AS OCTOBER IS GENERALLY A VERY WEAK DELIVERY MONTH. We gained 190,000 additional silver ounces THAT WILL  STAND.
 
Total dealer silver:  30.362 million (close to record low inventory  
Total number of dealer and customer silver:   173.321 million oz
The total open interest on silver is NOW close to its all time high with the record of 224,540 being set AUGUST 3.2016.  The registered silver (dealer silver) is NOW NEAR  multi year lows as silver is being drawn out at both dealer and customer levels and heading to China and other destinations. The shear movement of silver into and out of the vaults signify that something is going on in silver.
end
 GLD  remains a 947.63 tonnes/NO CHANGE/ wow
SLV: lowers to 360.292 million oz/ WE zero OZ.
that tells you something
BIG STORIES
COT report:
Our large specs in gold:
those large specs who are long in gold pitched an astonishingly high 34,536
those large specs who are short in gold added 11,560  contracts
Our criminal  commercials:
those commercials who are long in gold pitched 11,292 contracts
those commercials who are short in gold covered an astonishing  54,644
and they continued on Wed. through Fri
Our small specs 
those small specs  who are long in gold added 1850 contracts
those small specs who are short in gold covered 1194 contracts.
silver cot
large specs
those large specs that are long in silver pitched a large 6184 contracts
those large specs that are short in silver added 2875 contracts to their short side
commercials:
those commercials that are long in silver added 724 contracts to their long side
those commercials that are short in silver covered whopping 9198 contracts
small specs:
those small specs that are long in silver pitched 824 contracts from their long side
those small specs that are short in silver added 39 contracts to their short side.
COT Gold, Silver and US Dollar Index Report – October 7, 2016
      Google +

— Published: Friday, 7 October 2016 | Print  | Comment – New!

Gold COT Report – Futures
Large Speculators Commercial Total
Long Short Spreading Long Short Long Short
324,136 78,628 53,866 111,864 383,106 489,866 515,600
Change from Prior Reporting Period
-34,836 11,560 5,941 -11,292 -54,644 -40,187 -37,143
Traders
177 110 84 48 56 270 208
 
  Small Speculators      
  Long Short Open Interest    
  54,958 29,224 544,824    
  1,850 -1,194 -38,337    
  non reportable positions Change from the previous reporting period  
COT Gold Report – Positions as of Tuesday, October 04, 2016
 

Silver COT Report: Futures
Large Speculators Commercial
Long Short Spreading Long Short
110,764 34,961 12,117 48,885 139,781
-6,184 2,875 3,545 724 -9,198
Traders
111 56 43 34 39
Small Speculators Open Interest Total
Long Short 198,747 Long Short
26,981 11,888 171,766 186,859
-824 39 -2,739 -1,915 -2,778
non reportable positions Positions as of: 169 118
  Tuesday, October 04, 2016   © SilverSeek.com

 

end

 

Major stories:

first rumour denied: no Qatar investment

second: margin call of 1.2 billion to DB

 

 

Rumor Of Qatar Investment In Deutsche Bank Denied; Speculation Of A $1.2 Billion Margin Call Remains

Update: and rejected

  • QATAR SAID UNLIKELY TO RAISE STAKE IN DEUTSCHE BANK: REUTERS

And scene.

* * *

Last Friday a fake Deutsche Bank headline saved the market. Can they do it again?  It appears that just like a certain Saudi prince took a bath in Citi sevearl years ago, a greater fool has been found again, according to Spiegel:

  • *QATAR SAID TO CONSIDER RAISING STAKE IN DEUTSCHE BANK TO 25%

Remember when Korea’s SWF was going to take a stake in Lehman?

x

For now it’s working…

 

Although it may not last long. First, the story is 4 hours old..

Qatari investors who own the largest stake in Deutsche Bank do not plan to sell their shares and could consider buying more if the embattled German bank decides to raise capital, sources familiar with Qatari investment policy told Reuters.

 

Funds controlled by Qatar’s former Prime Minister Sheikh Hamad bin Jassim al-Thani bought 6.1 percent of Deutsche in mid-2014 and increased their stake to just under 10 percent, including options, in July this year.

Second, what DB needs is to raise capital; it can only do that by selling shares to Qatar directly, and not for the Qatari investors to buy stock in the open market, of which DB would see precisely zero in proceeds.

Third, by announcing their intentions to buy the stock ahead of actually doing so, Qatar guarantees it will pay much more for the same “25% stake”. Brilliant.

Fourth, and final, as Reuters reports, the Qataris have so far lost, on paper, over $1.2 billion on their investments in the bank. It is therefore far more likely that Qatar is using first Reuters, then Spiegel, to get the price as higher as possible – just like the rumor spreaders last week used AFP – to that they can sell into the bid.

Especially, when one considers the following story from 2014:

The man who is providing Deutsche Bank AG with a 2.1 billion-euro ($2.9 billion) cash infusion, and a vote of confidence, held talks with banks about getting a loan to finance the investment and to hedge it. Former Qatari Prime Minister Sheikh Hamad Bin Jassim Bin Jabr Al Thani was approached by banks offering loans to fund the purchase as well as derivatives to protect him from losses on the shares he purchased, said four market participants who asked not to be identified because they weren’t authorized to speak publicly. Two of the participants said they were told Qatar National Bank agreed to provide a $2 billion margin loan.

 

An official at Sheikh Hamad’s office in Doha declined to comment on the talks, as did representatives for Qatar National Bank and Frankfurt-based Deutsche Bank. If Sheikh Hamad’s investment turns out to have been structured to limit his financial risk in the stock, that would be a red flag, according to Peter Hahn, a finance lecturer at London’s Cass Business School.

 

“That should be a concern for all Deutsche Bank shareholders,” Hahn said. “What sounded like a vote of confidence may be a hedged bet.”

 

In a margin loan, a borrower pledges an asset to obtain money and typically agrees to hand over cash to the lender if the value of the collateral declines. The lender typically can sell some of collateral if the borrower is unable to post cash.

 

“There’s a growing trend among sovereign wealth funds to buy on margin,” said Bernardo Bortolotti, director of the Sovereign Investment Lab, a research unit at Bocconi University in Milan. “An investment of this magnitude is rare, and it’s likely to attract significant interest for financing from banks seeking fees.”

Instead of “voicing confidence” in DB, is Qatar just just trying to find a way to get rid of what may be a rather pesky $1.2 billion margin call?

 

end

this is a big miss and no doubt we will not have a Nov or Dec rate hike.

(courtesy zerohedge)

 

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3 comments

  1. So what happened today, Harvey? You said China would feast PM today, 10 Oct?

    Like

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