Gold closed at $1265.60 down $7.10
silver closed at $18.72: UP 36 cents.
Access market prices:
The boys raided gold today but not silver. I honestly thought that the raids would stop once the election was over but I am wrong. It sure seems that the powers to be are very worried about the financial system as bond yields skyrocket across the globe. Underwriting banks loathe to see huge volatility in yields and no doubt we will see huge smoke stacks shortly.
The boys may be worried about the huge number of gold contracts standing at the comex. It is extremely elevated vs what we witnessed on the exact same day last year.
It probably is both of these facts that are bothering them greatly and thus the need to raid.
THE DAILY GOLD FIX REPORT FROM SHANGHAI AND LONDON
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 Nov 10 (10:15 pm est last night): $ 1293.59
NY ACCESS PRICE: $1287.75 (AT THE EXACT SAME TIME)
Shanghai afternoon fix: 2: 15 am est (second fix/early morning):$ 1293.51
NY ACCESS PRICE: 1287.25 (AT THE EXACT SAME TIME/2:15 am)
HUGE SPREAD TODAY!! 6.00 dollars
London Fix: Nov 10: 5:30 am est: $1281.40 (NY: same time: $1282.35 5:30AM)???
London Second fix Nov 10: 10 am est: $1267.50 (NY same time: $1267.00 , 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.
For comex gold:
NOTICES FILINGS FOR NOVEMBER CONTRACT MONTH: 6 NOTICES FOR 600 OZ TONES
NOTICES FOR NOVEMBER CONTRACT MONTH FOR SILVER: 0 NOTICES OR nil OZ
Let us have a look at the data for today
In silver, the total open interest FELL by 217 contracts DOWN to 188,048. I stated THE FOLLOWING yesterday: ” No doubt tomorrow’s reading of the OI will be a humdinger as the bankers need to continue with their criminal ways of supplying non backed comex paper.” Boy, was I wrong The open interest hardly moved as the silver price was up by only 3 cents in yesterday’s trading. In ounces, the OI is still represented by just less THAN 1 BILLION oz i.e. .940 BILLION TO BE EXACT or 134% of annual global silver production (ex Russia &ex China).
In November, in silver, 0 notice(s) filings: FOR 10,000 OZ
In gold, the total comex gold FELL by 4,042 contracts WITH THE fall in price of gold ($0.80 YESTERDAY).The total gold OI stands at 524,161 contracts.
In gold: we had 6 notices filed for 600 oz
With respect to our two criminal funds, the GLD and the SLV:
GLD: Strange after two whack job days:
TODAY WE HAD A HUGE CHANGE AT THE GLD/A DEPOSIT OF 5.34 TONNES OF GOLD
Total gold inventory rests tonight at: 955.03 tonnes of gold
we had another huge change at the SLV/an addition of 949,000 oz
THE SLV Inventory rests at: 359.384 million oz
First, here is an outline of what will be discussed tonight:
1. Today, we had the open interest in silver FELL by 217 contracts DOWN to 188,048 despite the fact that the price of silver ROSE by 3 cents with YESTERDAY’S trading. The gold open interest FELL by 4,042 contracts DOWN to 524,161 even though the price of gold FELL BY ONLY $0.80 in YESTERDAY’S TRADING.
2.a) The Shanghai and London gold fix report
2 b) Gold/silver trading overnight Europe, Goldcore
and in NY: Bloomberg
3. ASIAN AFFAIRS
i)Late WEDNESDAY night/THURSDAY morning: Shanghai closed UP 42.91 POINTS OR 1.31%/ /Hang Sang closed UP 423.92 OR 1.89%. The Nikkei closed UP 1,092.88 POINTS OR 6.72%/ Australia’s all ordinaires CLOSED UP 3.26% /Chinese yuan (ONSHORE) closed DOWN at 6.7977/Oil FELL to 45.03 dollars per barrel for WTI and 46.38 for Brent. Stocks in Europe: ALL IN THE GREEN EXCEPT LONDON Offshore yuan trades 6.8285 yuan to the dollar vs 6.7977 for onshore yuan.THE SPREAD BETWEEN ONSHORE AND OFFSHORE WIDENS QUITE A BIT AS MORE USA DOLLARS LEAVE CHINA’S SHORES / CHINA SENDS A CLEAR MESSAGE TO THE USA AND JANET TO NOT RAISE RATES IN DECEMBER.
REPORT ON JAPAN SOUTH KOREA NORTH KOREA AND CHINA
b) REPORT ON JAPAN
c) REPORT ON CHINA
4 EUROPEAN AFFAIRS
Take a close look as to what is coming up in the next few weeks. Yhis is what is scaring European politicians after witnessing first a BREXIT and then the Trump election victory: the kicking out the establishment!
( zero hedge)
5. RUSSIAN AND MIDDLE EASTERN AFFAIRS
As the Dow rises all emerging nation currencies including the Chinese yuan fall into the gutter
( zero hedge)
For your knowledge ere ae the 7 chokepoints that can cause to spike if these are cut off:
( Irinia Slav/OilPrice.com)
i)What a bummer! Canadian mint employee is guilty of smuggling 138,000 dollars worth of gold in his rectum:
ii)We brought you this story yesterday but it is worth repeating in case you missed it yesterday
( Chris Powell/GATA)
iii)Good reason for gold to go down today: long lines buying gold in this gold loving nation. Overnight, the government made banknotes of 1,000 rupees and 2000 rupees overnight. The citizens figured it out quite fast as they line up to by the only real currency: gold.
( Bhandair/ActingMan com)
10.USA STORIES WHICH MAY INFLUENCE THE PRICE OF GOLD/SILVER
i)David Stockman on the uSA election: American voters have just fired the ruling elites
( David Stockman/ContraCorner)
ii) a.The long term bonds are skyrocketing around the globe. The uSA 10 yr is now 2.10% on fears of huge inflation with the Trump spending.
( zero hedge)
ii b)It sure looks like our bond vigilantes have finally woken up. The first of the “Trump 30 yr bond auction went terrible
( zero hedge)
iii)The big 4 Nasdaq stocks start to crash and that crashes all of the post Trump gains:
the Fangs: Facebook, Amazon, Apple and Google
( zero hedge)
iv)Seems that Soros is angry at the election so he calls on the the Black Lives Matter group to protest throughout the globe
( zero hedge)
v)Key highlights of the Trump plan to make America better:
( zero hedge)
Kranzler comments on Stanley Druckenmiller’s idiotic statement that inflation is coming so sell gold.
Let us head over to the comex:
The total gold comex open interest FELL BY 4,042 CONTRACTS to an OI level of 524,161 with the continual pummeling in the price of gold as it EVENTUALLY FELL $0.80 with YESTERDAY’S roller coast trading. In the front month of November we had 25 notices standing for a GAIN of 1 contract. We had 0 notices served yesterday so we GAINED 1 contract or 100 ADDITIONAL oz will stand for delivery in November. The next contract month and the biggest of the year is December and here this month showed a decrease of 11,957 contracts down to 318,162. The December contract month is still highly elevated compared to a year ago. On Wednesday Nov 11/2015 comex reading day, we had a total of 226,262 contracts standing ( a loss of 10,719 contracts from Nov 10/2015) It certainly emphasizes the huge demand for physical gold. THIS SHOULD EXPLAIN TO YOU THE CONSTANT WHACKING OF GOLD (AND SILVER): THE HIGH OI AND THE FACT THAT MANY WILL TAKE DELIVERY.
And now for the wild silver comex results. Total silver OI FELL by 217 contracts from 188,265 DOWN TO 198,048 despite the fact that the price of silver ROSE BY 3 cents with yesterday’s roller coaster trading. We are moving further from the all time record high for silver open interest set on Wednesday August 3/2016: (224,540). The front month of November had an OI of 94 and thus a gain of 15 contracts. We had 0 notices filed yesterday so we gained 15 contracts or an additional 75,000 oz will stand for delivery. The next major delivery month is December and here it FELL BY 8,120 contracts DOWN to 107,613. The December contract month is also highly elevated compared to a year ago. On Nov 10/2015 reporting day, we had a level of 91,988 contracts having lost 3126 contracts on the day).
In silver had 0 notices filed for nil oz
VOLUMES: for the gold comex
Today the estimated volume was 198,880 contracts which is good.
Yesterday’s confirmed volume was 897,927 contracts which is huge
(in ox: 89,792,700 oz or 2792 tonnes (126% of annual global production)
today we had 6 notices filed for 600 oz of gold:
|Withdrawals from Dealers Inventory in oz||NIL|
|Withdrawals from Customer Inventory in oz nil||
|Deposits to the Dealer Inventory in oz||nil oz|
|Deposits to the Customer Inventory, in oz||
|No of oz served (contracts) today||
|No of oz to be served (notices)||
|Total monthly oz gold served (contracts) so far this month||
|Total accumulative withdrawals of gold from the Dealers inventory this month||nil oz|
|Total accumulative withdrawal of gold from the Customer inventory this month||146,347.48oz|
Today, 0 notices were issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 6 contract of which 0 notices were stopped (received) by jPMorgan dealer and 0 notice(s) was (were) stopped/ Received) by jPMorgan customer account.
March 2015: 2.311 tonnes (March is a non delivery month)
|Withdrawals from Dealers Inventory||NIL|
|Withdrawals from Customer Inventory||
|Deposits to the Dealer Inventory||
|Deposits to the Customer Inventory||
|No of oz served today (contracts)||
|No of oz to be served (notices)||
|Total monthly oz silver served (contracts)||352 contracts (1,760,000 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||4,858,374.1 oz|
NPV for Sprott and Central Fund of Canada
Major gold/silver stories for MONDAY
Early morning gold/silver trading/Goldcore
Central Bank Gold Demand continues in Q3
Dedollarization and Uncertainty drive Central Bank Demand for Gold
- Central banks added 81.7t to their gold reserves in the third quarter
- Total central banks purchases in the year-to-date reach 271.1t.
- Fellow-SCO member Kazakhstan and Belarus also had to holdings
- 90% of reserve managers intend to increase or maintain gold reserves.
- “The case for gold remains compelling for reserve managers” state WGC
- Unconventional monetary policies will underpin gold demand in coming years.
Central banks added 81.7t to their gold reserves in the third quarter, bringing total purchases in the year-to-date to 271.1t. This was a fall from 168t purchased in the previous quarter. Much of this has gone unnoticed by the mainstream media, something which seems shortsighted given the monetary and geopolitical implications both this and recent elections results may lead to.
The World Gold Council described recent buying as a ‘more measured’ approach to previous years. Between Q3 2014 and Q3 2015 407.7t were purchased by central banks. The data was slightly skewed last year as China contributed their gold reserve data for the first time since 2009.
Gold buying will not stop
The World Gold Council and other mainstream analysts do not appear unduly worried about the fall in gold demand from central banks. The current geopolitical and economic environment provides an irrefutable argument for central banks, as well as investors, to hold gold.
“The case for gold remains compelling for reserve managers amid the prevalence of negative interest rate policies and diversification away from the US dollar” WGC, Q3 report.
Commenting in the aftermath of the US election Juan Carlos Artigas, director of the WGC’s investment research, drew attention to the politics of anger and argument that are playing out across the world stage, signalled by both Brexit and the US election result.
“This trend, combined with uncertainty over the aftermath of years of unconventional monetary policies measures, will firmly underpin investment demand for gold in the coming years,”
This was reflected in a recent WGC survey of 19 central bank reserve managers which found nearly 90%have plans to either increase or maintain their gold reserves at current level.
In a research note from Simona Gambarini of Capital Economics, he argues that “the case for gold as a reserve asset remains strong”, given around one third of global government debt now has negative yields:
In particular, we continue to expect central banks from developing economies to be the main source of demand from the official sector in the future, as they typically have much lower gold holdings as a percentage of total reserves compared to those in advanced economies.
However, for some whilst there is an air of uncertainty following political events of 2016 and a tricky economic environment, this is not enough for central banks to add more gold to their reserves. In a recent note Nell Agate, a Citi analyst, stated ”While negative real interest rates and low sovereign bond yields across several key currencies and countries may encourage inflows into gold, particularly as there are limited alternatives for safe-haven / reserve assets, we expect to see reserve holdings maintain current trends.”
Russian love for gold
Those central banks who we have become used to seeing purchase gold on an ongoing basis continued to do so – Russia (43.9t), China (15.2t) and Kazakhstan (10t). Belarus also added over 3t to their reserves.
The Central Bank of Russia has outpaced the PBOC by nearly 150t in the last seven years, and has been the world’s largest central banks buyer of gold reserves for some time. This trend is expected to continue. Earlier this year it indicated that over the next 3-5 years it will look to expand its holdings to some half a trillion dollars.
This push for more gold is now driving the Russian supply chain. In May 2015 Russian Central BankGovernor Elvira Nabiullina stated that she saw no need for the Russian government to buy up all domestic gold production (as is done in China) as the central bank’s gold demand could be satisfied on the open, international market. However, F. William Engdhal reports that so central is gold to the monetary policy that the Central Bank is now buying from domestic mining stocks to satisfy their demand. This is particularly notable given Russia is the world’s second largest gold producing nation.
‘Dedollarization’ drives the SOC’s love for gold
When looking at the top gold buyers, one must remember that Russia and China are the key members in the Shanghai Cooperation Organization (SCO). The project includes former Soviet Union states as well as India and Pakistan.
The aim of the 16 year old organisation is to unite those nations in the face of increasing American expansionism. The group has discussed trade, a new currency and a unified energy system. The currency is what has many people nervous.
At a time when Russia is often declared a failed state by the US, the fact is that their economy is, in some ways, in far better shape. Namely their very low debt-to-GDP ratio and movement towards a ‘good as gold’ currency.
As of October the Central Bank of Russia held $88.2 billion in Treasurys, a significant change from the $131.8 billion held in 2014. This move has been labelled as dedollarization, and it is thought that this process is funding gold purchases as the country moves to prop up its reserves as the Russia ruble has suffered hugely since the collapse in crude oil. Not to mention lines to cheap credit were cut thanks to US and European sanctions and inflation is well into double figures.
“Notably, the Russian central bank has been selling its holdings of US Treasury debt to buy the gold, de facto de-dollarizing, a sensible move as the dollar is waging de facto currency war against the ruble,” writes F. William Engdahl.
That Russia feature so prominently in gold buying statistics is of no surprise. As Goldcore reported last year, Russia has made no secret of its desire to hold gold, and to increase their reserves. Monetary policy manager Dmitry Tulin stated, “The price of it swings, but on the other hand it is a 100 percent guarantee from legal and political risks.”
Take control of uncertainty with gold
Yesterday we saw the price of gold surge 5% on the back of Trump’s ‘surprise’ victory in the US elections.
Much of this was driven by the uncertainty that an inexperienced President would bring. This morning the markets have largely recovered from the shock, however macroeconomic, systemic, geopolitical and monetary risks remain heightened. This is something that the Russians, along with China and their allies are all too aware of.
Their moves to diversify into gold and to keep the safe haven central to their monetary policy is something that should be a lesson to investors. The idea that gold offers a ‘100% guarantee’ is alluring in a world that is being influenced by a politics of anger and economy of instability and uncertainty.
Gold and Silver Bullion – News and Commentary
Gold Prices (LBMA AM)
10 Nov: USD 1,280.90, GBP 1,034.07 & EUR 1,175.48 per ounce
09 Nov: USD 1,304.55, GBP 1,050.42 & EUR 1,176.84 per ounce
08 Nov: USD 1,284.00, GBP 1,034.26 & EUR 1,162.02 per ounce
07 Nov: USD 1,286.80, GBP 1,036.13 & EUR 1,162.50 per ounce
04 Nov: USD 1,301.70, GBP 1,042.79 & EUR 1,172.57 per ounce
03 Nov: USD 1,293.00, GBP 1,040.61 & EUR 1,165.90 per ounce
02 Nov: USD 1,295.85, GBP 1,056.51 & EUR 1,169.76 per ounce
Silver Prices (LBMA)
10 Nov: USD 18.75, GBP 15.11 & EUR 17.20 per ounce
09 Nov: USD 18.81, GBP 15.12 & EUR 16.96 per ounce
08 Nov: USD 18.26, GBP 14.72 & EUR 16.54 per ounce
07 Nov: USD 18.22, GBP 14.67 & EUR 16.47 per ounce
04 Nov: USD 18.30, GBP 14.65 & EUR 16.48 per ounce
03 Nov: USD 18.07, GBP 14.50 & EUR 16.32 per ounce
02 Nov: USD 18.54, GBP 15.05 & EUR 16.70 per ounce
Recent Market Updates
– Trump Victory Sends Gold Surging 5%
– An uncertain election outcome looks good for gold
– Ignore past elections, this one’s too uncertain
– Gold may be the only winner in US elections
– The London Gold Market – ripe for take-over by China?
– Diwali, Gold and India – Is Love Affair Over?
– Silver Krugerrands By South African Mint Coming Soon – Massive Clearance Sale on Gold Krugerrands
– Trump “Will Probably Win” and Gold “May Rise $100” Overnight – Rickards
– World Is Out of Weapons
– Gold Is The “Kardashian of Commodities” – Herbert & Keiser Interview Skoyles
– Value of Gold – Unlike Paper Currency Gold Maintained Value Throughout Ages
– Fed Risks Lehman Crisis As US Recession Storm Gathers
– Silver Eagle Demand ‘Returned with a Vengeance’
What a bummer! Canadian mint employee is guilty of smuggling 138,000 dollars worth of gold in his rectum:
Canadian mint employee guilty of smuggling $138,000 of gold in rectum
Submitted by cpowell on Wed, 2016-11-09 17:32. Section: Daily Dispatches
From the Canadian Broadcasting Co., Toronto
Wednesday, November 9, 2016
OTTAWA, Ontario, Canada — A former Royal Canadian Mint employee has been found guilty of smuggling more than $100,000 worth of gold from the building on Sussex Drive — apparently in his rectum, an Ottawa judge ruled this morning.
Leston Lawrence “clearly had the opportunity” to steal the gold because he often worked alone and the security cameras would not have caught him slipping gold pucks into his pocket, Justice Peter Doody ruled. “His locker contained Vaseline and latex gloves, which could have been used to insert a puck into his rectum,” he ruled, adding that there were no cameras in the locker room. …
… For the remainder of the report:
We brought you this story yesterday but it is worth repeating in case you missed it yesterday
(courtesy Chris Powell/GATA)
The big scandal isn’t government’s market rigging but news media’s ignoring it
Submitted by cpowell on Wed, 2016-11-09 18:25. Section: Daily Dispatches
1:29p ET Wednesday, November 9, 2016
Dear Friend of GATA and Gold:
As Donald Trump’s election as president of the United States became apparent last night, Dow futures collapsed as much as 800 points and gold rose more than $50. But by this afternoon the Dow was up about 1 percent and gold had fallen back to a gain of barely a dollar.
What calmed things down so much?
No one can be sure without gaining access to the trades undertaken surreptitiously by central banks in the last 12 hours or so, but the result was entirely predictable and indeed was predicted by your secretary/treasurer, among others, when GoldSeek asked for comment early this morning:
“In the morning,” your secretary/treasurer told GoldSeek, “the Fed, the Treasury, and the other Western central banks will still be operating in the currency, bond, commodity, stock, and, yes, the monetary metals markets. If he’s elected, Trump won’t be giving instructions to the Fed and Treasury until January, if he even has any idea by then of the market rigging the government does. If he ever finds out, he still would have to care about it before the possibility of change arose. He well could be talked out of caring.”
Similarly, GATA Chairman Bill Murphy linked the FBI’s abrupt re-vindication of Hillary Clinton last week with the U.S. administration’s desire to get the Dow back above 18,000 in advance of the election.
That governments intervene secretly in markets and are thereby destroying market economies and cheating investors everywhere isn’t even the big scandal anymore. The big scandal is that mainstream financial news organizations won’t report this intervention even as it becomes not just more obvious but spectacularly so.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Good reason for gold to go down today: long lines buying gold in this gold loving nation. Overnight, the government made banknotes of 1,000 rupees and 2000 rupees overnight. The citizens figured it out quite fast as they line up to by the only real currency: gold.
(courtesy Bhandair/ActingMan com)
Gold Price Skyrockets In India After Currency Ban
India’s Government Makes Banknotes Worthless by Decree Overnight
As I write this in the morning of 9th November 2016, there are huge lines forming outside gold shops in India — and gold traded heavily until late into the night yesterday. Depending on who you ask, the retail price of gold has gone up between 15% and 20% within the last 10 hours.
Gold quotes in India – gold traded for as much as Rs 49,000 per 10 grams or US$ 2,294 per ounce
At some places, it was sold for as much as US$ 2,294 per ounce. That is, if you can actually find physical gold — gold inventories at stores are rapidly depleting. All of this happened well before the international price started to move up because of the election results coming out of the US.
Last night (8th November 2016), India’s government banned the use of Rs 500 (~$7.50) and Rs 1,000 ($15) banknotes. This pretty much made most currency-in-use illegal. Banks and ATMs are closed today. The government believes that doing this will help eradicate corruption and push counterfeit money out of circulation. According to the Indian government, the counterfeit money tends to come from Pakistan and helps finance terrorism.
My first instinct when I heard the news was that people would be on the streets this morning. There would be riots and the Indian Prime Minister, Narendra Modi, would be unceremoniously thrown out. Despite being a huge critic of him, I thought he at least had the spine to take bold action, however erroneous it might have been.
I am sometimes too optimistic about India and expect too much goodness from Indians. And I was wrong.
In the morning no opposition against the government was in sight. But there was some animosity detectable between people. Forgetful that they had lined up until late into the night yesterday trying to get cash out of ATMs before midnight, had fought at gas-stations to get their gas tanks filled, and had suddenly been trapped with unusable currency, people exchanged congratulations on what Modi had done.
Indian prime minister Narendra Modi
What Modi had done — contrary to what I initially thought — wasn’t a bold move. It was a populist move, designed to please the 98% who do not save. While they are really driven by envy, these 98% are putting on a brave face, celebrating the alleged defeat of corruption. To them the fights of yesterday — at gas stations and elsewhere — and the loss of trust in their fellow citizens is merely collateral damage.
Fresh Avenues for Corruption Immediately Open Up
Those who find themselves stuck with high denomination bills today, must accept as little as Rs 700 in usable currency for every Rs 1000 of banned currency.
At least theoretically, people can still use the otherwise banned bills at hospitals, gas stations, pharmaceutical shops, and train stations. As one would expect in India, these places have been converted into corrupt currency-exchange shops as of today. Some well-connected people are prepaying for their medical treatment.
But for most legitimate uses, none of these organizations are accepting the otherwise banned instruments. Why should they, when they can force customers to pay in the still-legal currency and then buy the banned instruments for Rs 700 for every Rs 1000 in face value, making a neat 43% extra profit without doing anything?
In India, a country not driven by morals or reason, almost everyone will exploit an opportunity to make an extra buck, however unethical it might be. Those who look deeper, understand that corruption in public life comes from ingrained corruption in India’s society and culture. If one had to make an effort to remove corruption this is where one should start.