Gold at (1:30 am est) $1210.60 UP $17.40
silver at $17.51: up 39 cents
Access market prices:
THE DAILY GOLD FIX REPORT FROM SHANGHAI AND LONDON
The Shanghai fix is at 10:15 pm est last night and 2:15 am est early this morning
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 FIRST morning fix Feb 1/17 (10:15 pm est last night): $ holiday
NY ACCESS PRICE: $xxx (AT THE EXACT SAME TIME)/premium $xxx
Shanghai SECOND afternoon fix: 2: 15 am est (second fix/early morning):$ holiday
NY ACCESS PRICE: $xxxx (AT THE EXACT SAME TIME/2:15 am)
SPREAD/ 2ND FIX TODAY!!: $xxx
China rejects NY pricing of gold as a fraud/arbitrage will now commence fully
London FIRST Fix: Feb1/2017: 5:30 am est: $1210.00 (NY: same time: $1210.40 (5:30AM)
London Second fix Feb 1.2017: 10 am est: $1203.65 (NY same time: $1201.60 (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 FEBRUARY CONTRACT MONTH: 1159 NOTICE(S) FOR 115,900 OZ. TOTAL NOTICES SO FAR: 4450 FOR 445,000 OZ (13.841 TONNES)
For silver: FEBRUARY
50 NOTICES FILED FOR 250,000 OZ/
TOTAL NO OF NOTICES FILED: 138 FOR 690,000 OZ
Let us have a look at the data for today
In silver, the total open interest ROSE by 5,656 contracts UP to 186,839 with respect to YESTERDAY’S TRADING. In ounces, the OI is still represented by just less THAN 1 BILLION oz i.e. .934 BILLION TO BE EXACT or 133% of annual global silver production (ex Russia & ex China).
FOR THE NEW FRONT FEBRUARY MONTH: 50 NOTICES FOR 250,000
In gold, the total comex gold ROSE BY 6984 contracts WITH THE RISE IN THE PRICE GOLD ($17.40 with YESTERDAY’S trading ).The total gold OI stands at 398,433 contracts
we had 1,159 notice(s) filed upon for 115,900 oz of gold.
With respect to our two criminal funds, the GLD and the SLV:
We had no changes in tonnes of gold at the GLD
Inventory rests tonight: 799.07 tonnes
we had no changes in silver into the SLV:
THE SLV Inventory rests at: 335.759 million oz
FEDERAL RESERVE BANK OF NY: GOLD MOVEMENT REPORT FOR DECEMBER EXPORTS
The FRBNY reported that we have 7,841 million dollars worth of gold in inventory valued at $42.22 for December.
The previous month we had 7,841 million dollars worth of gold inventory valued at $42.22 for December.
We thus had 0 gold oz moved out of inventory
First, here is an outline of what will be discussed tonight:
1. Today, we had the open interest in silver RISE by 5,656 contracts UP to 186,839 AS SILVER WAS UP 39 CENTS with YESTERDAY’S trading. The gold open interest ROSE by 6,984 contracts UP to 398,433 WITH THE RISE IN THE PRICE OF GOLD OF $17.40 (YESTERDAY’S TRADING)
2.a) The Shanghai and London gold fix report
2 b) Gold/silver trading overnight Europe, Goldcore
and in NY: Bloomberg
2c) COT report
3c FEDERAL RESERVE BANK OF NY/GOLD INVENTORY MOVEMENT
3. ASIAN AFFAIRS
i)Late TUESDAY night/WEDNESDAY morning: Shanghai closed HOLIDAY/ /Hang Sang closed . The Nikkei closed UP 106.74 POINTS OR .56% /Australia’s all ordinaires CLOSED UP 0.51%/Chinese yuan (ONSHORE) closed HOLIDAY at 6.8840/Oil ROSE to 53.16 dollars per barrel for WTI and 55.94 for Brent. Stocks in Europe ALL IN THE GREEN. Offshore yuan trades 6.8295 yuan to the dollar vs 6.8840 for onshore yuan.THE SPREAD BETWEEN ONSHORE AND OFFSHORE NARROWS QUITE A BIT AS POBC ATTEMPTS TO STOP DOLLARS FROM LEAVING CHINA’S SHORES.
REPORT ON JAPAN SOUTH KOREA NORTH KOREA AND CHINA
b) REPORT ON JAPAN
c) REPORT ON CHINA
4 EUROPEAN AFFAIRS
Italian youth unemployment rises above 40%. Sovereign Italian bond yields rise but also we witness that sovereign bond risk soars to 3 yr highs (credit default swaps)
( zero hedge)
Initially French markets slump as Le Pen gains in the polling:
( zero hedge)
5. RUSSIAN AND MIDDLE EASTERN AFFAIRS
7. OIL ISSUES
iThe author suggest that an oil price was will begin shortly
8. EMERGING MARKETS
9. PHYSICAL MARKETS
Let us head over to the comex:
The total gold comex open interest ROSE BY 6,984 CONTRACTS UP to an OI level of 398,433 WITH THE RISE IN THE PRICE OF GOLD ( $17.40 with YESTERDAY’S trading). We are now in the contract month of FEBRUARY and it is one of the better delivery months of the year. In this next big active delivery month of February we had a LOSS of 2,987 contracts DOWN to 3468. We had 3291 notices served upon yesterday and therefore we gained 304 contracts or an additional 30,400 oz will stand for delivery. This is the first time in over 3 years that we have gained in oz standing on the second day notice. Somebody is in urgent need of physical gold. The next non active contract month of March saw it’s OI rise by 436 contracts up to 2906.The next big active month is April and here the OI rose by 7,977 contracts up to 271,136.
We had 1159 notice(s) filed upon today for 115,900 oz
And now for the wild silver comex results. Total silver OI ROSE by 5,656 contracts FROM 181,183 up to 186,839 AS the price of silver ROSE IN PRICE TO THE TUNE OF 39 CENTS with respect to YESTERDAY’S trading. We are moving further from the all time record high for silver open interest set on Wednesday August 3/2016: (224,540).
The active month of February saw the OI FALL by 61 contract(s) DOWN TO 185. We had 88 notices served upon yesterday so we GAINED 27 CONTRACTS or an additional 135,000 oz will stand. I cannot ever recall seeing both precious metals, gold and silver, show an increase in amount of oz standing for delivery on the second day notice.
The next big active delivery month is March and here the OI increase by 1466 contracts up to 133,494 contracts. For comparison purposes last year on the same date only 104,561 contracts were standing.
We had 50 notice(s) filed for 250,000 oz for the FEBRUARY contract.
VOLUMES: for the gold comex
Today the estimated volume was 99,907 contracts which is poor.
Yesterday’s confirmed volume was 262,796 contracts which is good
volumes on gold are getting higher!
|Withdrawals from Dealers Inventory in oz||nil|
|Withdrawals from Customer Inventory in oz||
|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||7963.144 oz|
Today, 0 notice(s) were issued from JPMorgan dealer account and 700 notices were issued from their client or customer account. The total of all issuance by all participants equates to 1159 contract(s) of which 105 notices were stopped (received) by jPMorgan dealer and 33 notice(s) was (were) stopped/ Received) by jPMorgan customer account.
March 2016: 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)||138 contracts (690,000 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||nil oz|
And now the Gold inventory at the GLD
JAN 31/no change in gold inventory at the GLD/Inventory rests at 799.07 tonnes
jan 30/no change in gold inventory at the GLD/Inventory rests at 799.07 tonnes
Jan 27/no changes at the GLD/Inventory rests at 799.07 tonnes
Jan 26/no changes at the GLD/Inventory rests at 799.07 tonnes/
jan 25/another exactly the same withdrawal as yesterday: 50.4 tonnes and again this was used in the whacking of gold today/inventory rests at 799.07 tonnes
jan 24/a huge withdrawal of 5.04 tonnes and probably this was used today in the whacking of gold/inventory rests at 804.11 tonnes
Jan 23/a big change/this time a deposit of 1.19 tonnes of gold into the GLD/inventory rests at 809.15 tonnes. The drainage of gold from the GLD to Shanghai has now stopped!
Jan 20/no changes in gold inventory a the GLD/Inventory rests at 807.96 tonnes
Jan 19/no changes in gold inventory at the GLD/Inventory rests at 807.96 tonnes
Jan 18/no changes in gold inventory at the GLD/Inventory rests at 807.96 tonnes
Jan 17/17/a deposit of 2.96 tonnes of gold/inventory at the GLD rests at 807.96 tonnes. I guess there is no more gold inventory to sent to C+Shanghai
Jan 13/17/there were no changes in gold inventory at the GLD/Inventory rests at 805.00 tonnes
Jan 12/2017/no change in gold inventory at the GLD/Inventory rests at 805.00 tonnes
Jan 11/no change in gold inventory at the GLD/Inventory rests at 805.00 tonnes
JAN 10/no changes in gold inventory at the GLD/Inventory rests at 805.00 tonnes
JAN 9/A WITHDRAWAL OF 8.87 TONNES OF GOLD FROM THE GLD/INVENTORY RESTS AT 805.00 TONNES
NPV for Sprott and Central Fund of Canada
Major gold/silver trading/commentaries for WEDNESDAY
The Alternative Fact of the Cashless Society
Why gold will benefit from the alternative fact of the cashless society
- Alternative facts prevail in the European Commission’s calls for cash controls
- Terrorism is blamed for the need to control cash
- Evidence shows criminals find alternative ways to finance activities
- Citizens continue to want and to use cash in day-to-day life
- Cashless society is being used to force through other ‘agendas’
- Gold and silver will be used as savers are forced to hold assets outside of the financial system
Why gold will benefit from the alternative fact of the cashless society
“Those who control the present, control the past and those who control the past control the future.”
Last week a new phrase was introduced into our lexicon by Trump Adviser Kellyanne Conway. When asked about why press secretary Sean Spicer had made statements that were (according to the press) unverifiable she said that he had used ‘alternative facts’.
This prompted a raft of satire, journalists to flail their arms up at the audacity of Conway and Trump’s administration, and for people to rush out and buy George Orwell’s 1984.
Penguin, the world’s largest publisher, ordered a 75,000 copy reprint last week. Apparently more than the ‘typical reprint’ for the 1949 Orwellian classic. The ‘alternative facts’ statement echoed of ‘Newspeak’ the language used by the totalitarian government in Orwell’s 1984 to influence and control its citizens of Airstrip One (previously Britain).
European Commission Embraces Newspeak
A day after Conway’s interview the European Commission took of the advantage of the furore that continues to surround the Trump administration (the shock that the President is doing exactly what he promised to do) and introduced a proposal enforcing “restrictions on payments in cash.”
The EC apparently like to use their own version of alternative facts when it comes to arguing why we should be going cashless.
The proposal is based on a plan from February 2016 that explained, “Payments in cash are widely used in the financing of terrorist activities… In this context, the relevance of potential upper limits to cash payments could also be explored. Several Member States have in place prohibitions for cash payments above a specific threshold.”
And whilst terrorists do no doubt use cash to finance some activities (the US has purportedly blown-up stockpiles of ISIS’ cash), research shows that countries with higher denominations of cash in fact experience lower levels of crime and corruption.
And what about those non-criminals? EC are failing to address the fact that law-abiding citizens still like to use cash and will continue to whilst negative interest rates and bail-ins remain a reality. Not to mention the privacy it affords us.
This Newspeak is starting to feel like we’re supposed to feel bad about using cash and instead should become inclined to move to a cashless way of life. Whilst the EC is still in proposal-stage we should be reminded that the move to cashless is very much in play, as we explained in Cashless society – War on Cash to Benefit Gold?.
Cash-free does not mean terrorism free
As pointed out by Zerohedge the proposal is very focused on stopping terrorism, crime and money laundering. It states:
‘Potential restrictions to cash payments would be a mean to fight criminal activities entailing large payment transactions in cash by organised criminal networks…Terrorists use cash to sustain their illegal activities, not only for illegal transactions (e.g. the acquisition of explosives) but also for payments which are in appearance legal”
But, as argued in the, economists such as Rogoff and Stiglitz and government organisations such as the EC are relying on the myth that ‘cash facilitates illegal activity.’
Who is so naive to think that a ban on cash will stop terrorism? What they have missed is that criminal and terrorist leanings facilitate such activities, they will always find some form of means of exchange to facilitate it.
Sovereign Man explains that criminals and terrorists can, miraculously, use means other than physical cash in order to facilitate illegal activities.
“The US military has literally blown up more than a billion dollars worth of ISIS’s stockpiles of physical cash during airstrikes.
But this hasn’t affected their terrorist activities one bit.
That’s because the most notorious terrorist group on the planet famously uses both the world’s oldest currency (gold) and the world’s newest currency (Bitcoin).”
And it’s not just big terrorist groups who are able to work their way around a cash-based monetary system.
“What Stiglitz, and perhaps many law enforcement agencies, fail to realize is that one of the biggest tools in masking illegal activity is actually Amazon.com.
Specifically, Amazon gift cards.
If you’re looking to quietly and easily pay large sums of money, even tens of thousands of dollars, you can do so with Amazon gift cards.
Amazon gift cards are essentially a “cash equivalent”.
Amazon sells just about everything on the planet, so its gift cards can either be spent or quickly resold for cash.”
Cash will soon not be a right
The EC, Rogoff and Stiglitz are all behaving as though cash is only used for illicit activities. There is apparently little thought to those of us who still use cash. Most of us look at cash as something that is both convenient and provides a way to spend money without it being anyone else’s business other than ours and the seller. But governments label this as suspicious with the intention to get us away from cash so that the banking system may be propped up and ‘bailed-in’ by our funds.
There is but a fleeting mention of the fundamental right to use cash in this recent EC proposal but it is quickly dismissed:
It should also be observed that national restrictions to cash payments were never successfully challenged based on an infringement to fundamental rights.”
Cash is still widely used, by both citizens and big businesses but this has not stopped both governments and banks looking to move us away from using cash.
The most recent example of a shift to a cashless society was of course the demonetisation of 500 and 1,000 rupee notes in India. Whilst Prime Minister Modi acknowledged that millions had been affected he reiterated calls for the country to become a cashless society.
Meanwhile In Ireland companies are making investments on the basis of the future cashless society. US company EVO, a payment processing partner of Bank of Ireland, announced a €9.1 million move to the country that is embracing a cashless way of life. Brian Cleary, managing director of BOI Payment Acceptance Ireland and UK, an arm of Evo Payment International told the Irish Independent, ”With over six million debit and credit cards in the market, debit card spend on the increase year-on-year and over 35,000 Irish businesses offering contactless payment facilities, this number continues to grow.”
In the UK, cashless is almost as popular as the likes of the Scandinavian countries. In August 2016 More than 260 million contactless transactions were made in the UK, a 200% increase from the year before. According to a Telegraph article, ATMs are close to becoming extinct as banks will no longer finance them. Rural areas will be “the hardest hit with the South West, Scotland, and the South East where 44pc, 40pc and 33pc of cash points are under threat”
The threat of a cashless society is seemingly greater than ever, so much so that MPs are being called to investigate. As Ron Delnevo, director of the ATM Industry Association in Europe, told the Telegraph: “Some organisations want to drive people away from cash because it suits their agenda.” He also warned of a “domino effect”, saying that if one big bank pulled out of the arrangement “the whole thing will just melt”.
Cash controls will extend beyond cash
The EC doesn’t intend to stop just at putting controls on (or even outright banning) cash. Under the guise of preventing anonymity they believe that restrictions should be placed on all means of payment that mean people can have some privacy:
“In view of the development of cryptocurrencies and the existence of other means of payments ensuring anonymity, an option could be to extend the restrictions to cash payments to all payments ensuring anonymity (cryptocurrencies, payment in kinds, etc.). On the other hand, restrictions on cash payments could promote the development of alternative payments technologies compatible with the non-anonymity objective pursued.”
Aside from what this means for all forms of payments, it ultimately means that the EC has decided that