JULY 24//GOLD UP $8.80 TO $1900.30//SILVER DOWN 12 CENTS TO $22.64//GOLD TONNAGE STANDING AT THE COMEX: 24.92 TONNES//CHINA VS USA//CORONAVIRUS UPDATES: THE GLOBE//SWAMP STORIES FOR YOU TONIGHT///

GOLD:$:1900.30  UP $8.80   The quote is London spot price (cash market)

This is an all time high compared to last record:   London gold fix:  Sept 5/2011: $1891.30

 

 

 

 

Silver:$22.64// DOWN $0.12  London spot price ( cash market)

 

There is now no question that our bankers’ precious metals derivatives have blown up. The Fed is loaning these crooks mega dollars as they are hugely offside on their shorts of gold and silver.

 

your data:

 

Closing access prices:  London spot

i)Gold : $1901.80  LONDON SPOT  4:30 pm

 

ii)SILVER:  $22.75//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

 

 

OCT GOLD:  $1910.10  CLOSE 1.30 PM//   SPREAD SPOT/FUTURE OCT /: $8.80  ($2.80 ABOVE NORMAL CONTANGO)

DEC. GOLD  $1925.30   CLOSE 1.30 PM      SPREAD SPOT/FUTURE DEC   $25.00   ($13.00 ABOVE NORMAL CONTANGO)

 

CLOSING SILVER FUTURE MONTH

 

SILVER SEPT COMEX CLOSE;   $22.88…1:30 PM.//SPREAD SPOT/FUTURE SEPT//  :  24 CENTS  PER OZ

 

 

 

COMEX DATA

 

 

JPMorgan has been receiving gold with reckless abandon and sometimes supplying (stopping)

receiving today:  0/83

issued:  65

EXCHANGE: COMEX
CONTRACT: JULY 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,889.100000000 USD
INTENT DATE: 07/23/2020 DELIVERY DATE: 07/27/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
159 C ED&F MAN CAP 1
332 H STANDARD CHARTE 1
657 C MORGAN STANLEY 6
657 H MORGAN STANLEY 80
661 C JP MORGAN 65
686 C INTL FCSTONE 1
737 C ADVANTAGE 3
880 C CITIGROUP 4
905 C ADM 3 2
____________________________________________________________________________________________

TOTAL: 83 83
MONTH TO DATE: 7,959

NUMBER OF NOTICES FILED TODAY FOR  JULY CONTRACT: 83 NOTICE(S) FOR 8300 OZ  (.2581 tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  7959 NOTICES FOR 795900 OZ  (24.755 TONNES)

 

 

SILVER

 

FOR JULY

 

 

318 NOTICE(S) FILED TODAY FOR 1,590,000  OZ/

total number of notices filed so far this month: 15,678 for 78.400 MILLION oz

 

BITCOIN MORNING QUOTE  $9533  DOWN 70

 

BITCOIN AFTERNOON QUOTE.: $9582 DOWN 21

 

GLD AND SLV INVENTORIES:

WITH GOLD UP $8.80 AND NO PHYSICAL TO BE FOUND ANYWHERE:

WITH ALL REFINERS CLOSED//MEXICO ORDERING ALL MINES SHUT:   WHERE ARE THEY GETTING THE “PHYSICAL?

A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A MASSIVE PAPER DEPOSIT OF 3.80 TONNES INTO THE GLD

WHAT A MASSIVE FRAUD!

 

 

 

GLD: 1,225.01 TONNES OF GOLD//

 

WITH SILVER DOWN $0.12 TODAY: AND WITH NO SILVER AROUND:

 

A HUGE CHANGE IN SILVER INVENTORY AT THE  SLV:

 

NO CHANGE IN SILVER INVENTORY

 

RESTING SLV INVENTORY TONIGHT:

 

SLV: 558.779  MILLION OZ./

 

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI ROSE BY A SMALL SIZED 762 CONTRACTS FROM 184,943 UP  TO 185,705, AND CLOSER TO OUR NEW RECORD OF 244,710, (FEB 25/2020. THE SMALL SIZED GAIN IN  OI OCCURRED WITH OUR SMALL 4 CENT GAIN IN SILVER PRICING AT THE COMEX. IT SEEMS THAT THE GAIN IN COMEX OI IS PRIMARILY DUE TO HUGE  BANKER SHORT COVERING PLUS A STRONG EXCHANGE FOR PHYSICAL ISSUANCE, ZERO LONG LIQUIDATION, ACCOMPANYING  A STRONG INCREASE  IN SILVER STANDING  AT THE COMEX FOR JULY.  WE HAD A NET GAIN IN OUR TWO EXCHANGES OF 2082 CONTRACTS  (SEE CALCULATIONS BELOW).

 

 

 

WE HAVE ALSO WITNESSED A HUGE AMOUNT OF PHYSICAL METAL STAND FOR COMEX DELIVERY AS WELL WE ARE WITNESSING CONSIDERABLE LONGS PACKING THEIR BAGS AND MIGRATING OVER TO LONDON IN GREATER NUMBERS IN THE FORM OF EFP’S.  WE WERE  NOTIFIED  THAT WE HAD A STRONG SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:   JULY: 0  AND SEP 1320 FOR ZERO ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  1320 CONTRACTS. WITH THE TRANSFER OF 1320 CONTRACTS, WHAT THE CME IS STATING IS THAT THERE IS NO SILVER (OR GOLD) TO BE DELIVERED UPON AT THE COMEX AS THEY MUST EXPORT THEIR OBLIGATION TO LONDON. ALSO KEEP IN MIND THAT THERE CAN BE A DELAY OF 24-48 HRS IN THE ISSUING OF EFP’S. THE 1320 EFP CONTRACTS TRANSLATES INTO 9.315 MILLION OZ  ACCOMPANYING:

1.THE 4 CENT GAIN IN SILVER PRICE AT THE COMEX AND

2. THE STRONG AMOUNT OF SILVER OUNCES WHICH STOOD FOR DELIVERY IN THE LAST 12 MONTHS:

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ  STANDING FOR JULY

10.025   MILLION OZ INITIAL STANDING IN AUGUST.

43.030   MILLION OZ INITIALLY STANDING IN SEPT. (HUGE)

7.32     MILLION OZ INITIALLY STANDING IN OCT

2.630     MILLION OZ STANDING FOR NOV.

20.970   MILLION OZ  FINAL STANDING IN DEC

5.075     MILLION OZ FINAL STANDING IN JAN

1.480    MILLION OZ FINAL STANDING IN FEB

23.005  MILLION OZ FINAL STANDING FOR MAR

4.660  MILLION OZ FINAL STANDING FOR APRIL

45.220 MILLION OZ FINAL STANDING FOR MAY

2.205  MILLION OF FINAL STANDING FOR JUNE

83.15 MILLION OZ INITIALLY IN JULY.

 

THURSDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO LIQUIDATE SILVER’S PRICE…AND THEY WERE UNSUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT ROSE 4 CENTS ).. AND,OUR OFFICIAL SECTOR/BANKERS  WERE  UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE ANY SILVER LONGS FROM THEIR POSITIONS. THE SMALL GAIN AT THE COMEX WAS ACCOMPANIED BY : i)  A STRONG ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A STRONG INCREASE IN STANDING OF SILVER OZ STANDING FOR JULY,  HUGE BANKER SHORT COVERING  AND 4) ZERO LONG LIQUIDATION AS  WE DID HAVE A  NET GAIN OF 2082 CONTRACTS OR 10.41 MILLION OZ ON THE TWO EXCHANGES! YOU CAN BET THE FARM THAT OUR BANKER  ARE DESPERATE TO LIQUIDATE THEIR HUGE SHORT POSITIONS IN SILVER

 

HISTORICAL ACCUMULATION OF EXCHANGE FOR PHYSICALS

JULY

 

ACCUMULATION FOR EFP’S/SILVER/J.P.MORGAN’S HOUSE OF BRIBES, / STARTING FROM FIRST DAY /FOR MONTH OF JULY:

19,343 CONTRACTS (FOR 17 TRADING DAY(S) TOTAL 19,343 CONTRACTS) OR 96.72 MILLION OZ: (AVERAGE PER DAY: 1138 CONTRACTS OR 5.689 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF JULY: 96.72 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 13.82% OF ANNUAL GLOBAL PRODUCTION (EX CHINA EX RUSSIA)*  JUNE’S 345.43 MILLION OZ IS THE SECOND HIGHEST RECORDED ISSUANCE OF EFP’S AND IT FOLLOWED THE RECORD SET IN APRIL 2018 OF 385.75 MILLION OZ.

 

ACCUMULATION IN YEAR 2020 TO DATE SILVER EFP’S:          1,234.13 MILLION OZ.

JANUARY 2020 EFP TOTALS SO FAR: 181.61 MILLION OZ

FEB 2020 EFP’S TOTAL :  ……     259.600 MILLION OZ

MARCH EFP’S …..                     452.280 MILLION OZ  //TOTALS//AND A NEW RECORD FOR THE MONTH)

APRIL EFP                               95.355 MILLION OZ.  (EX. FOR PHYSICALS BECOMING A LOT LESS)

MAY EFP FINAL:                     77.27 MILLION OZ

JUNE EXP                              71.15 MILLION OZ.

JULY EXP                               96.72 MILLION OZ/

 

EXCHANGE FOR PHYSICAL ISSUANCE FOR THE PAST 60 DAYS IS A LOT LESS.  NO DOUBT THAT THE COST TO CARRY THESE THINGS HAS EXPLODED  AND AS SUCH CANNOT BE DONE AS FREQUENTLY AS BEFORE.

 

RESULT: WE HAD A SMALL SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 762, WITH OUR 4 CENT GAIN  IN SILVER PRICING AT THE COMEX ///THURSDAYTHE CME NOTIFIED US THAT WE HAD A STRONG SIZED EFP ISSUANCE OF 1320 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON  AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER

 

TODAY WE GAINED A STRONG SIZED OI CONTRACTS ON THE TWO EXCHANGES:  2082 CONTRACTS (WITH OUR 4 CENT GAIN IN PRICE)//

 

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 1320 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A SMALL SIZED INCREASE OF 782 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED DESPITE A 4 CENT GAIN IN PRICE OF SILVER/AND A CLOSING PRICE OF $22.76 // THURSDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY. 

 

In ounces AT THE COMEX, the OI is still represented by JUST UNDER 1 BILLION oz i.e. 0.892 BILLION OZ TO BE EXACT or 127% of annual global silver production (ex Russia & ex China).

FOR THE NEW  JULY  DELIVERY MONTH/ THEY FILED AT THE COMEX: 318 NOTICE(S) FOR 1,590,000  OZ OF SILVER.

IN SILVER,PRIOR TO TODAY, WE  SET THE NEW COMEX RECORD OF OPEN INTEREST AT 244,196 CONTRACTS ON AUG 22.2018. AND AGAIN THIS HAS BEEN SET WITH A LOW PRICE OF $14.70//TODAY’S RECORD OF 244,705 IS SET WITH A PRICE OF: 18.91 (FEB 25/2020)

 

.

 

ON THE DEMAND SIDE WE HAVE THE FOLLOWING:

  1. HUGE AMOUNTS OF SILVER STANDING FOR DELIVERY  (MARCH/2018: 27 MILLION OZ , APRIL/2018 : 2.485 MILLION OZ  MAY: 36.285 MILLION OZ ; JUNE/2018  (5.420 MILLION OZ) , JULY 2018 FINAL AMOUNT STANDING: 30.370 MILLION OZ   )  FOR AUGUST 6.065 MILLION OZ. , SEPT:  A HUGE 39.505 MILLION OZ./ OCTOBER: 2,520,000 oz  NOV AT 7.440 MILLION OZ./ DEC. AT 21.925 MILLION OZ   JANUARY AT  5.825 MILLION OZ.AND FEB 2019:  2.955 MILLION OZ/ MARCH: 27.120 MILLION OZ/  APRIL AT 3.875 MILLION OZ/ A MAY:  18.845 MILLION OZ ..JUNE 2.660 MILLION OZ//JULY 22.605 MILLION OZ; AUGUST 10.025 MILLION OZ/ SEPT 43.030 MILLION OZ//OCT: 7.665 MILLION OZ//   NOV: 2.630 MILLION OZ//DEC:  20.970 MILLION OZ; JAN:  5.075 MILLION OZ.//FEB 1.480 MILLION OZ//MAR: 23.005 MILLION OZ/APRIL 4.660 MILLION OZ//MAY  45.220 MILLION OZ//JUNE: 2.205 MILLION OZ// JULY 83.15 million oz
  2. THE  RECORD PRIOR TO TODAY WAS SET IN FEB 25/2018:  244,710 CONTRACTS,  WITH A SILVER PRICE OF $18.90//.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017 RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

 

AND YET, WITH THE EXTREMELY HIGH EFP ISSUANCE, WE HAVE A CONTINUAL LOW PRICE OF SILVER DESPITE THE ABOVE HUGE DEMAND.  TO ME THE ONLY ANSWER IS THAT WE HAVE SOVEREIGN  (CHINA) WHO IS ENDEAVOURING TO GOBBLE UP ALL AVAILABLE PHYSICAL SILVER NO MATTER WHERE, EXACTLY WHAT J.P.MORGAN IS DOING. AND IT IS MY BELIEF THAT J.P.MORGAN IS HOLDING ITS SILVER FOR ITS BENEFICIAL OWNER..THE USA GOVERNMENT WHO IN TURN IS HOLDING THAT SILVER FOR CHINA.(FOR A SILVER LOAN REPAYMENT)

 

GOLD

 

IN GOLD, THE COMEX OPEN INTEREST FELL BY A SMALL SIZED 1292 CONTRACTS TO 608,448 AND FURTHER FROM OUR NEW RECORD (SET JAN 24/2020) AT 799,541 AND  PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110.

THE  SMALL LOSS OF COMEX OI OCCURRED DESPITE OUR STRONG RISE IN PRICE  OF $24.90 /// COMEX GOLD TRADING// THURSDAY// WE  HAD HUGE BANKER SHORT COVERING, ANOTHER GOOD SIZED INCREASE IN GOLD OZ STANDING AT THE COMEX FOR JULY, ALONG WITH ZERO LONG LIQUIDATION ACCOMPANYING A SMALL EXCHANGE FOR  PHYSICAL ISSUANCE AND THE CONTINUATION OF GOLD SPREADER LIQUIDATION. THIS ALL HAPPENED WITH OUR HUGE GAIN IN PRICE OF $24.90 .

 

WE HAD A VOLUME OF 5    4 -GC CONTRACTS//OPEN INTEREST  59

 

WE GAINED A  GOOD SIZED 4932 CONTRACTS  (15.34 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A GOOD SIZED 6224 CONTRACTS:

CONTRACT .; AUG 4824 AND OCT: 0 DEC: 900; FEB: 500  ALL OTHER MONTHS ZERO//TOTAL: 6224.  The NEW COMEX OI for the gold complex rests at 608,448. ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL, 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. . EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER  AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.

IN ESSENCE WE HAVE A GOOD SIZED INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 4932 CONTRACTS: 1292 CONTRACTS DECREASED AT THE COMEX AND 6224 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 4932 CONTRACTS OR 15.34 TONNES. THURSDAY, WE HAD A GAIN OF $24.90 IN GOLD TRADING……

AND WITH THAT GAIN IN  PRICE, WE HAD A STRONG SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 15.34 TONNES!!!!!! THE BANKERS/OFFICIAL SECTOR  SUPPLIED INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER WITH RECKLESS ABANDON. THE BANKERS WERE UNSUCCESSFUL IN THEIR ATTEMPT TO LOWER GOLD’S PRICE (IT ROSE $24.90).AND IT ALSO SEEMS THAT THEIR ATTEMPT TO FLEECE ANY GOLD LONGS FROM THE GOLD ARENA WAS ALSO UNSUCCESSFUL  (SEE BELOW).

 

 

 

 

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES:

WE HAD A GOOD SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS  (6224) ACCOMPANYING THE SMALL SIZED LOSS IN COMEX OI  (1292 OI): TOTAL GAIN IN THE TWO EXCHANGES:  4932 CONTRACTS. WE NO DOUBT HAD 1 )HUGE BANKER SHORT COVERING, 2.)ANOTHER  INCREASE IN GOLD  STANDING AT THE GOLD COMEX FOR THE FRONT JULY MONTH,  3) ZERO LONG LIQUIDATION; 4) HUGE COMEX OI GAIN AND .5) SMALL EXCHANGE FOR PHYSICAL ISSUANCE 6) THE COMMENCEMENT OF GOLD SPREADER LIQUIDATION… AND  …ALL OF THIS WAS COUPLED WITH OUR STRONG GAIN IN GOLD PRICE TRADING//THURSDAY//$24.90.

 

WE ARE BEGINNING TO WITNESS A LACK OF EXCHANGE FOR GOLD PHYSICALS UNDERWRITTEN DUE TO PREMIUMS STARTING TO REAPPEAR IN THE FUTURE PRICE OF GOLD VS LONDON SPOT. THE COST TO THE BANKERS IS JUST TOO GREAT TO ENGAGE IN THESE VEHICLES ONCE THIS OCCURS.

THE FACT THAT WE ARE CONTINUALLY SEEING A DROP IN COMEX OPEN INTEREST AND VOLUMES COUPLED WITH LESS EXCHANGE FOR PHYSICALS PROBABLY MEANS THAT OUR LONGS ARE ALREADY DEPARTING NEW YORK FOR THE NEW PHYSICAL PLATFORM AT LONDON’S LME.

 

SPREADING OPERATIONS/NOW SWITCHING TO GOLD

 

 

OUR SPREADING OPERATION HAS NOW SWITCHED INTO GOLD…..

SPREADING OPERATION FOR OUR NEWCOMERS:

 

FOR NEWCOMERS, HERE ARE THE DETAILS:

 

SPREADING LIQUIDATION HAS NOW COMMENCED IN GOLD  AS WE HEAD TOWARDS THE NEW ACTIVE FRONT MONTH OF AUGUST.

 

 

FOR THOSE OF YOU WHO ARE NEW, HERE IS THE MODUS OPERANDI OF THE SPREADERS AND THE CRIMINAL ELEMENT BEHIND IT:

 HERE IS A BRIEF SYNOPSIS OF HOW THE CROOKS FLEECE UNSUSPECTING LONGS IN THE SPREADING ENDEAVOUR;

 

THE SPREADING LIQUIDATION OPERATION IS NOW OVER FOR SILVER..AND WE WILL NOW MORPH INTO AN ACCUMULATION PHASE OF SPREADING CONTRACTS FOR GOLD.  THEY WILL ACCUMULATE CONSIDERABLE AMOUNT OF THE CONTRACTS AND THEN LIQUIDATE ONE WEEK PRIOR TO FIRST DAY NOTICE

 

MODUS OPERANDI OF THE CORRUPT BANKERS AS TO HOW THEY HANDLE THEIR SPREAD OPEN INTERESTS:

.

 

 

AS I HAVE MENTIONED IN PREVIOUS COMMENTARIES:

 

 

“AS YOU WILL SEE, THE CROOKS WILL NOW SWITCH TO GOLD AS THEY INCREASE THE OPEN INTEREST FOR THE SPREADERS. THE TOTAL COMEX GOLD OPEN INTEREST WILL RISE FROM NOW ON UNTIL ONE WEEK PRIOR TO FIRST DAY NOTICE AND THAT IS WHEN THEY START THEIR CRIMINAL LIQUIDATION.

HERE IS HOW THE CROOKS USED SPREADING AS WE ARE NOW INTO THE NON  ACTIVE DELIVERY MONTH OF JULY HEADING TOWARDS THE ACTIVE DELIVERY MONTH OF AUGUST FOR GOLD:

 

YOU WILL ALSO NOTICE THAT THE COMEX OPEN INTEREST  STARTS TO RISE IN THIS NON ACTIVE MONTH OF JULY. BUT SO IS THE OPEN INTEREST OF SPREADERS. THE OPEN INTEREST IN GOLD WILL CONTINUE TO RISE UNTIL ONE WEEK BEFORE FIRST DAY NOTICE OF AN UPCOMING  ACTIVE DELIVERY MONTH (AUGUST), AND THAT IS WHEN THE CROOKS SELL THEIR SPREAD POSITIONS BUT NOT AT THE SAME TIME OF THE DAY.  THEY WILL USE THE SELL SIDE OF THE EQUATION TO CREATE THE CASCADE (ALONG WITH THEIR COLLUSIVE FRIENDS) AND THEN COVER ON THE BUY SIDE OF THE SPREAD SITUATION AT THE END  OF THE DAY. THEY DO THIS TO AVOID POSITION LIMIT DETECTION. THE LIQUIDATION OF THE SPREADING FORMATION CONTINUES FOR EXACTLY ONE WEEK AND ENDS ON FIRST DAY NOTICE.”

 

 

HISTORICAL ACCUMULATION OF EXCHANGE FOR PHYSICALS IN 2020 INCLUDING TODAY

JULY

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF JULY : 65,901 CONTRACTS OR 6,590,100 oz OR 204.98 TONNES (17 TRADING DAY(S) AND THUS AVERAGING: 3876 EFP CONTRACTS PER TRADING DAY

 

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 17 TRADING DAY(S) IN  TONNES: 204.98 TONNES

TOTAL ANNUAL GOLD PRODUCTION, 2019, THROUGHOUT THE WORLD EX CHINA EX RUSSIA: 3555 TONNES

THUS EFP TRANSFERS REPRESENTS 204.98/3550 x 100% TONNES =5.77% OF GLOBAL ANNUAL PRODUCTION

ISSUANCE OF EXCHANGE FOR PHYSICAL GOLD HAS DISSIPATED THIS MONTHTHE COST TO THE BANKERS TO CARRY THESE CONTRACTS IN LONDON IS BECOMING TOO GREAT FOR THEM.

 

ACCUMULATION OF GOLD EFP’S YEAR 2020 TO DATE   3223.18  TONNES

JANUARY 2220 TOTAL EFP ISSUANCE; : 570.19 TONNES

FEB 2020 TOTAL EFP ISSUANCE :            653.78 TONNES

MARCH TOTAL EFP ISSUANCE                1,098.93  TONNES  (*AND A NEW ALL TIME RECORD ISSUANCE//22 DAYS)

APRIL TOTAL EFP. ISSUANCE:               243.45  TONNES  (EFP ISSUANCE BECOMING A LOT LESS)

MAY TOTAL EFP ISSUANCE:                     248.68 TONNES (EFP ISSUANCE STILL LOW// PREMIUM COST TO THE BANKERS IS HUGE..SO ISSUANCE IS LESS)

JUNE TOTAL EFP ISSUANCE:                     192.06 TONNES

JULY TOTAL EFP ISSUANCE;                       204.98 TONNES SO FAR..

 

 

WHAT IS ALARMING TO ME, ACCORDING TO OUR LONDON EXPERT ANDREW MAGUIRE IS THAT THESE EFP’S ARE BEING TRANSFERRED TO WHAT ARE CALLED SERIAL FORWARD CONTRACT OBLIGATIONS AND THESE CONTRACTS ARE LESS THAN 14 DAYS.  ANYTHING GREATER THAN 14 DAYS, THESE MUST BE RECORDED AND SENT TO THE COMPTROLLER, GREAT BRITAIN TO MONITOR RISK TO THE BANKING SYSTEM.  IF THIS IS INDEED TRUE, THEN THIS IS A MASSIVE CONSPIRACY TO DEFRAUD AS WE NOW WITNESS A MONSTROUS TOTAL EFP’S ISSUANCE AS IT HEADS INTO THE STRATOSPHERE

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

 

1.Today, we had the open interest at the comex, in SILVER, ROSE BY A SMALL SIZED 762 CONTRACTS FROM 184,943 UP TO 185,705 AND CLOSER TO OUR COMEX RECORD //244,710(SET FEB 25/2020).  THE LAST RECORDS WERE SET  IN AUG.2018 AT 244,196 WITH A SILVER PRICE OF $14.78/(AUGUST 22/2018)..THE PREVIOUS RECORD TO THAT WAS SET ON APRIL 9/2018 AT 243,411 OPEN INTEREST CONTRACTS WITH THE SILVER PRICE AT THAT DAY: $16.53). AND PREVIOUS TO THAT, THE RECORD  WAS ESTABLISHED AT: 234,787 CONTRACTS, SET ON APRIL 21.2017 OVER  2 3/4 YEARS AGO.  THE PRICE OF SILVER ON THAT DAY: $17.89.

THE SMALL SIZED GAIN IN OI SILVER COMEX WAS PRIMARILY DUE TO;   1)   HUGE BANKER SHORT COVERING , 2) A STRONG ISSUANCE OF EXCHANGE FOR PHYSICALS (SEE BELOW), 3) A CONSIDERABLE INCREASE STANDING AT THE SILVER COMEX FOR JULY AND  4) ZERO LONG LIQUIDATION 

 

EFP ISSUANCE 1320 CONTRACTS

OUR CUSTOMARY MIGRATION OF COMEX LONGS CONTINUE TO MORPH INTO LONDON FORWARDS  AS OUR BANKERS USED THEIR EMERGENCY PROCEDURE TO ISSUE:

JULY: 0 CONTRACTS   AND SEPT: 1320 ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1320 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE  COMEX OI GAIN  OF 762  CONTRACTS TO THE 1320 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A STRONG GAIN OF 2082 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES 10.41 MILLION  OZ, OCCURRED WITH OUR 4 CENT GAIN IN PRICE///

 

BOTH THE SILVER COMEX AND THE GOLD COMEX ARE IN STRESS AS THE BANKERS SCOUR THE BOWELS OF THE EXCHANGE FOR METAL..THE EVIDENCE IS CLEAR: HUGE AMOUNTS OF PHYSICAL STANDING FOR BOTH  SILVER AND GOLD .

(report Harvey)

 

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

i)FRIDAY MORNING/ THURSDAY NIGHT: 

SHANGHAI CLOSED DOWN 128.34 POINTS OR 3.86%  //Hang Sang CLOSED DOWN 577.67 POINTS OR 2.21%   /The Nikkei closed DOWN 132.61 POINTS OR 0.58%//Australia’s all ordinaires CLOSED DOWN 1.06%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0158 /Oil UP TO 57.21 dollars per barrel for WTI and 64.13 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0158 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0234 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED//CORONAVIRUS/PANDEMIC  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

COMEX DATA//AMOUNTS STANDING//VOLUME OF TRADING/INVENTORY MOVEMENTS

GOLD

LET US BEGIN:

THE TOTAL COMEX GOLD OPEN INTEREST FELL BY A TINY SIZED 1262 CONTRACTS TO 608,448 MOVING CLOSER TO  OUR  RECORD THAT WAS SET IN JANUARY/2020: {799,541  OI(SET JAN 16/2020)} AND  PREVIOUS TO THAT: 797,110 (SET JAN 7/2020).  AND ALL OF THIS SMALL COMEX DECREASE OCCURRED DESPITE OUR STRONG  GAIN OF $24.90 IN GOLD PRICING /THURSDAY’S COMEX TRADING//). WE ALSO HAD A GOOD EFP ISSUANCE (6224 CONTRACTS),.  THUS WE HAD 1) HUGE BANKER SHORT COVERING AT THE COMEX AND 2)  ZERO LONG LIQUIDATION AND 3)  ANOTHER HUMONGOUS  INCREASE IN STANDING AT THE GOLD COMEX//JULY DELIVERY MONTH (SEE BELOW) AND THE COMMENCEMENT OF SPREADER LIQUIDATION , …  AS WE ENGINEERED A GOOD GAIN ON OUR TWO EXCHANGES OF 4932 CONTRACTS WITH GOLD’S  GAIN IN PRICE. NOTE THE FACT THAT LATELY THE EXCHANGE FOR PHYSICALS ARE SMALL.. SOME OF OUR MAJOR BANKERS REFUSE TO USE THE SERIAL FORWARDS AS IT JUST TOO COSTLY FOR THEM. THUS THE COMEX OPEN INTEREST RISES APPRECIABLY AGAINST A LOWER ISSUANCE OF THESE EXCH. FOR PHYSICALS.

 

 

(SEE BELOW)

 

 

WE  HAD 5    4 -GC VOLUME//open interest LOWERS TO 59

 

 

 

EXCHANGE FOR PHYSICAL ISSUANCE

WE ARE NOW IN THE NON  ACTIVE DELIVERY MONTH OF JULY..  THE CME REPORTS THAT THE BANKERS ISSUED A GOOD SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 6224 EFP CONTRACTS WERE ISSUED:  AUG  4824 , OCT: 0  DEC 900; FEB 500 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 6224 CONTRACTS.

YOU WILL FIND THAT WHEN WE HAVE A GOOD PREMIUM IN THE FUTURES/SPOT, THEN THE NUMBER OF EXCHANGE FOR PHYSICALS DECLINE IN NUMBERS.  THE COST IS JUST TOO MUCH FOR THEM TO ISSUE. TODAY THAT PREMIUM WAS SMALL AND THUS A LITTLE MORE THAN USUAL OF EXCHANGE FOR PHYSICALS WERE ISSUED.

 

ON A NET BASIS IN OPEN INTEREST WE GAINED THE FOLLOWING TODAY ON OUR TWO EXCHANGES:  5,761 TOTAL CONTRACTS IN THAT 6,224 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A TINY SIZED 1262 COMEX CONTRACTS.  THE BANKERS PROVIDED ALL THE NECESSARY SHORT PAPER TO WHICH OUR LONGS DUTIFULLY ACCEPTED AS THEY GOBBLED UP A SMALL  AMOUNT OF EXCHANGE FOR PHYSICALS WITH HUGE BANKER SHORT COVERING, ACCOMPANYING OUR STRONG COMEX OI GAIN,  A GOOD INCREASE IN  GOLD TONNAGE STANDING FOR THE JULY DELIVERY (SEE CALCULATIONS BELOW)… AND ZERO LONG LIQUIDATION, COMMENCEMENT OF SPREADER LIQUIDATION……AND WITH ALL OF THE ABOVE WE HAD A VERY STRONG GAIN IN COMEX PRICE OF 24.90 DOLLARS..

 

THE BANKERS WERE UNSUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT ROSE $24.90).  AND, THEY WERE UNSUCCESSFUL IN FLEECING SOME LONGS 

AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED A STRONG 15.34 TONNES.

 

 

NET GAIN ON THE TWO EXCHANGES :: 4932, CONTRACTS OR 493200 OZ OR 15.34 TONNES.

 

COMMODITY LAW SUGGESTS THAT COMMODITY FUTURES OPEN INTEREST SHOULD APPROXIMATE 3% OF TOTAL PRODUCTION.  IN GOLD THE WORLD PRODUCES AROUND 3500 TONNES PER YEAR BUT ONLY 2200 TONNES ARE AVAILABLE FROM THE WEST (THUS EXCLUDING RUSSIA, CHINA ETC..WHO KEEP 100% OF THEIR PRODUCTION)

THUS IN GOLD WE HAVE THE FOLLOWING:  608,448 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 60.85 MILLION OZ/32,150 OZ PER TONNE =  1892 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1892/2200 OR 86.03% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 349,454 contracts// good volume//

 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  515,012 contracts//  volume very strong //most of our traders have left for London

 

 

JULY 24 /2020

JULY GOLD CONTRACT MONTH

 

 

 

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
57,870,000 oz
LOOMIS
1800 kilobars
Deposits to the Dealer Inventory in oz 192,906.000 oz

Malca

6,000 kilobars

 

 

 

Deposits to the Customer Inventory, in oz  

8,849,57

OZ

HSBC

 

 

 

No of oz served (contracts) today
83 notice(s)
 8300 OZ
(0.2581 TONNES)
No of oz to be served (notices)
53 contracts
(5300 oz)
0.1648 TONNES
Total monthly oz gold served (contracts) so far this month
7959 notices
795,900 OZ
24.755 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

We had 1 deposit into the dealer

i) Int the dealer Malca:  192,906.000 oz

6,000 kilobars)

 

 

total deposit: 192,906.000 oz

 

DEALER WITHDRAWAL: 0

 

 

 

 

total dealer withdrawals: nil oz

we had 1 deposit into the customer account

 

 

i) Into HSBC:  8849.57  oz

 

 

 

 

total deposit:  8849.57 oz

 

 

we had 1 gold withdrawals from the customer account:

i) out of Loomis  57,870.000  oz

 

 

We had 2  kilobar transactions  +

 

ADJUSTMENTS: 2 //

 

dealer to customer

Brinks:  266,477.883 oz

and JPMorgan: 20,295.939 oz

 

 

 

 

 

 

 

 

The front month of JULY registered a total of 136 oi contracts FOR a GAIN of 17 contracts. We had 108 notices served on THURSDAY so we GAINED ANOTHER 125 contracts or an additional 12,500 oz will stand for delivery as they refused to morph into London based forwards.

 

 

Next comes August and another strong delivery month and here the OI  FELL BY A NORMAL 33,539  contracts DOWN to 226,985 contracts, as we continue our countdown to first day notice. We have 5 more reading days before first day notice.

 

August is contracting very slowly…and thus  we are going to have a whopper of a delivery month come July 31/2020..first day notice for the August contract month.

 

Sept saw another addition of 253 contracts to stand at 1,585.  Oct GAINED 3127 contracts UP to 48,579. (The boys still prefer August)

 

We had 83 notices filed today for  8300 oz

 

FOR THE JULY 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and 65 notices were issued from their client or customer account. The total of all issuance by all participants equates to 83 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 0 notice(s) was (were) stopped/ Received) by j.P.Morgan//customer account and 0 notices by the squid  (Goldman Sachs)

To calculate the INITIAL total number of gold ounces standing for the JULY /2020. contract month, we take the total number of notices filed so far for the month (7959) x 100 oz , to which we add the difference between the open interest for the front month of  JULY (136 CONTRACTS ) minus the number of notices served upon today (81 x 100 oz per contract) equals 788,700 OZ OR 24.531 TONNES) the number of ounces standing in this active month of JUNE

thus the INITIAL standings for gold for the JULY/2020 contract month:

No of notices filed so far (7959 x 100 oz + (136 OI) for the front month minus the number of notices served upon today (83) x 100 oz which equals 801,200 oz standing OR 24.920 TONNES in this  active delivery month. This is a HUGE record amount for gold standing for a JULY delivery month (a  non active delivery month).

We gained 125 contracts or an additional  12,500 oz will stand at the comex.

We are now witnessing an increase in queue jumping on a daily basis. Sooner or later they will be running out of metal to supply our longs.

 

 

NEW PLEDGED GOLD:  BRINKS

 

144,088.952 oz NOW PLEDGED  JAN 21.2020/HSBC  5.4807 TONNES

271,997.477 oz PLEDGED  JULY 9// 2020  JPMORGAN:  8.46 TONNES

42,548.308.00 PLEDGED  APRIL 3/2020: SCOTIA:            1.3234 tonnes

deleted Int. Delaware pledge July 7  (600 tonnes)

 

653,730.982 oz pledged June 12/2020 Brinks/july 2/july 21               20.333 tonnes

total pledged gold:  1,112,365.719 oz                                     34.59 tonnes

 

 

 

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE 379,95 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS ie. 24.920 tonnes

CALCULATION OF REGISTERED GOLD THAT CAN BE SETTLED UPON:

total registered or dealer  13,327,866.181 oz or 414.55 tonnes
which  includes the following:
a) pledged gold held at HSBC   which cannot settled upon   144,088.952 oz x ( 4.4817 TONNES)//
b) pledged gold held at JPMorgan (SOME  DELETED JUNE 24 2020/SOME JULY 9; SOME JULY 22) which cannot be settled upon:  271,997,477, oz (or 8.46 tonnes)
total pledged gold:
c)  pledged gold at Scotia: 1.3234 tonnes or 42,548.308 oz which cannot be settled  (1.3234 tonnes)
d) pledged gold at Manfra:  DELETED  MAY 26.2020
e) pledged gold at int.Del.    DELETED:   JULY 7.2020
f) pledged gold at Brinks:  DELETED july 2 and july 21
g) pledged gold at Brinks: 653,730.982 oz added which cannot be settled:  20.333 tonnes
total weight of pledged:  1,112,365.719 oz or 34.59 tonnes
thus:
registered gold that can be used to settle upon:  12,215,501.0  (379,95 tonnes)
true registered gold  (total registered – pledged tonnes  12,215,501.0 (379,95 tonnes)
total eligible gold:  21,708,471.968 oz (675.22 tonnes)

total registered, pledged  and eligible (customer) gold;   35,036,338,149 oz 1089.77 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   126.34 tonnes

total gold net of 4 GC:  963.43 tonnes

 

end

 

I have compiled  data with respect to registered (or dealer) gold taken on first day notice for each of the past 24 months

The data begins on first day notice for the May month taken on the last day of April 2018. and it continues to present day.  Thus 24 data entry points.

 

I then took, how many deliveries were recorded by the CME for each and every month.  I also included for reference the price of gold on first day notice.

 

The first graph is a logarithmic  graph and the second graph, linear.

You can see the huge explosion of registered gold at the comex along with deliveries.  Gold owners are very clear people.  They would know full well that

the gold at the comex is unallocated and that they would not be stupid enough to keep their gold at the comex especially in the registered category once deliveries are asked upon. If physical gold was present it would be have removed from the comex… It shows there is no gold at the comex.  They are just trading in sticky paper.

 

 

THE GOLD COMEX SEEMS TO BE  UNDER SEVERE ASSAULT FOR PHYSICAL

 

END

JULY 24/2020

And now for the wild silver comex results

 

 

JULY SILVER COMEX CONTRACT MONTH

 

Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
1,155,917.000 oz
CNT
Delaware

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
1,781,116.640 oz
JPMorgan
Delaware
Scotia
No of oz served today (contracts)
318
CONTRACT(S)
(1,590,000 OZ)
No of oz to be served (notices)
952 contracts
 4,760,000 oz)
Total monthly oz silver served (contracts)  15,678 contracts

78,400,000 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
We had 0 deposit into the dealer:

total dealer deposits: nil  oz

i) We had 0 dealer withdrawal

 

total dealer withdrawals: nil oz

i)we had 3 deposits into the customer account

into JPMorgan:   1,179,738.400  oz  3rd day in a row a big deposit

 

 

ii) Into  Delaware: 2045.500 oz

iii) Into Scotia:  599,332.740

 

 

 

 

 

*** JPMorgan for most of 2017, 2018 and onward, has adding to its inventory almost every single day.

JPMorgan now has 163.098 million oz of  total silver inventory or 49.49% of all official comex silver. (163.098 million/329.499 million

 

total customer deposits today:  1,781,116.640    oz

we had 2 withdrawals:

 

 

i)Out of CNT:  1143,720.998

 

iii) Out of Delaware: 12,196,002 oz

 

 

 

total withdrawals; 1,155,917.000   oz

We had 1 adjustments

Scotia:  customer to dealer:  783,301.600 o

 

total dealer silver: 131.070 million

total dealer + customer silver:  329.499 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

The front month of July has an open interest of  1270 contracts, as we lost 101 contracts.  We had 144 notices served on THURSDAY, so we GAINED 43 contracts or an additional 215,000 oz will stand in this active delivery month of July as they REFUSED TO  morph into a London based forwards.  It seems that we have little silver over on this side of the pond. We still have a huge amount of contracts still outstanding to be served upon in July.

 

 

 

The next month after July is the non active month of  August and here  sees its open interest FELL by 66 contracts FALLING  to 782

The big September contract month sees a LOSS of 1175 contracts down to 138,927.

 

The total number of notices filed today for the JULY 2020. contract month is represented by 318 contract(s) FOR 1,590,000, oz

 

To calculate the number of silver ounces that will stand for delivery in JULY we take the total number of notices filed for the month so far at 15,678 x 5,000 oz = 78,400,000 oz to which we add the difference between the open interest for the front month of JULY.(1270) and the number of notices served upon today 318 x (5000 oz) equals the number of ounces standing.

 

Thus the INITIAL standings for silver for the JULY/2019 contract month: 15,678 (notices served so far) x 5000 oz + OI for front month of JULY (1270)- number of notices served upon today (318) x 5000 oz of silver standing for the JULY contract month.equals 83,150,000 oz.  (A WHOPPER )//ALL TIME RECORD FOR ONE DELIVERY MONTH (corrected totals from yesterday)

WE GAINED 43 CONTRACTS OR 215,000 OZ WILL STAND FOR DELIVERY. SILVER IS STILL VERY SCARCE ON THIS SIDE OF THE POND AND THE REASON FOR CONSIDERABLE MORPHING OVER TO LONDON.

 

 

 

TODAY’S ESTIMATED SILVER VOLUME : 112,518 CONTRACTS // volume huge/

 

 

FOR YESTERDAY: 194,541.,CONFIRMED VOLUME//volume huge+++/

 

 

YESTERDAY’S CONFIRMED VOLUME OF 194,541 CONTRACTS EQUATES to 822 million  OZ  117% OF ANNUAL GLOBAL PRODUCTION OF SILVER..

 

COMMODITY LAW SUGGESTS THAT OPEN INTEREST SHOULD NOT BE MORE THAN 3% OF ANNUAL GLOBAL PRODUCTION. THE CROOKS ARE SUPPLYING MASSIVE PAPER TRYING TO KEEP SILVER IN CHECK.

The record level of silver open interest is 234,787 contracts set on April 21./2017 with the price at that day at $18.42. The previous record was 224,540 contracts with the price at that time of $20.44

end

 

NPV for Sprott

1. Sprott silver fund (PSLV): NAV  RISES TO- 0.57% ((JULY 24/2020)

2. Sprott gold fund (PHYS): premium to NAV  RISES TO -0.61% to NAV:   (JULY 24/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 0.57%

(courtesy Sprott/GATA

3.SPROTT CEF.A FUND (FORMERLY CENTRAL FUND OF CANADA):

NAV 19.03 TRADING 18.93///NEGATIVE .52

END

 

 

And now the Gold inventory at the GLD/

JULY 24/WITH GOLD UP $8.80 TODAY: WE HAVE ANOTHER HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 3.80 TONNES//INVENTORY RESTS AT 1228.81 TONNES

JULY 23/WITH GOLD UP $24.90 TODAY: WE HAVE A HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A DEPOSIT OF 7.26 TONNES/INVENTORY RESTS AT 1225.01 TONNES

JULY 22/WITH GOLD UP $22.00 TODAY: WE HAVE A HUGE CHANGE IN GOLD INVENTORY AT THE GLD/ A DEPOSIT OF 7.89 TONNES/INVENTORY RESTS AT 1219.75 TONNES

JULY 21//WITH GOLD UP $26.00 TODAY, WE HAVE A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 4.97 TONNES INTO THE GLD// INVENTORY RESTS AT 1211.86 TONNES

JULY 20/WITH GOLD UP $7.70 TODAY, WE HAVE NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 1206.89 TONNES

JULY 17/WITH GOLD UP $7.70 TODAY, WE HAVE NO CHANGES IN GOLD INVENTORY AT THE GLD: /INVENTORY RESTS AT 1206.89 TONNES

JULY 16/WITH GOLD DOWN $9.80 TODAY, WE HAVE NO CHANGES IN GOLD INVENTORY AT THE GLD: INVENTORY RESTS AT 1206.89 TONNES

JULY 15//WITH GOLD UP $1.55 TODAY/A HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A DEPOSIT OF 2.96 TONNES INTO THE GLD///INVENTORY RESTS AT 1206.89 TONNES

JULY 14//WITH GOLD DOWN $1.65 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD/A DEPOSIT OF 3.51 TONNES/INVENTORY RESTS AT 1203.97 TONNES

JULY 13//WITH GOLD UP $12.50 TODAY: A SMALL CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 0.36 TONNES INTO THE GLD//INVENTORY RESTS AT 1200.46 TONNES

JULY 10/WITH GOLD DOWN $.50 TODAY: A BIG CHANGE IN GOLD INVENTORY AT THE GLD//A STRANGE WITHDRAWAL  OF 1.75 TONNES FROM THE GLD//INVENTORY RESTS AT 1200.82 TONNES

JULY 9//WITH GOLD DOWN $11.75 TODAY: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OX 3.21 TONNES INTO THE GLD//INVENTORY RESTS AT 1202.57 TONNES

JULY 8/WITH GOLD UP $13.75 TODAY; A BIG CHANGE IN GOLD INVENTORY AT THE GLD:A DEPOSIT OF 7.89 TONNES INTO THE GLD//INVENTORY RESTS AT 1199.36 TONNES

JULY 7/WITH GOLD UP $12.50 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD: /INVENTORY RESTS AT 1191.47 TONNES

JULY 6/WITH GOLD UP $6.50 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 9.36 TONNES INTO THE GLD//INVENTORY RESTS AT 1191.47 TONNES

JULY 2/WITH GOLD UP $7.00 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 3.21 TONNES INTO THE GLD////INVENTORY RESTS AT 1182.11 TONNES

JULY 1/WITH GOLD DOWN $12.90//NO CHANGES IN GOLD INVENTORY AT THE GLD: /INVENTORY RESTS AT 1178.90 TONNES

JUNE 30//WITH GOLD UP $16.50 TODAY: NO CHANGE  IN GOLD INVENTORY AT THE GLD///INVENTORY RESTS AT 1178.90 TONNES

JUNE 29/WITH GOLD UP $2.90 TODAY: A HUGE DEPOSIT OF 3.61 TONNES OF GOLD INTO THE GLD//INVENTORY RESTS AT 1178.90 TONNES

JUNE 26/WITH GOLD UP $5.03 TODAY: VERY STRANGE: A PAPER WITHDRAWAL  OF 1.46 TONNES//INVENTORY RESTS AT 1175.39 TONNES

JUNE 25//WITH GOLD DOWN $3.30 TODAY//ANOTHER STRONG PAPER DEPOSIT OF 7.6 TONNES///INVENTORY RESTS AT 1176.85 TONNES

JUNE 24/WITH GOLD DOWN $1.50 TODAY;  A STRONG 3.21 TONNES ADDED TO THE GLD//INVENTORY RESTS AT 1169.25  TONNES

JUNE 23/WITH GOLD UP $25.50 TODAY/ANOTHER CRIMINAL PAPER DEPOSIT OF 6.73 TONNES OF GOLD INTO THE GLD//INVENTORY RESTS AT 1166.04 TONNES

JUNE 22/WITH GOLD UP $14.00 A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 23.09 TONNES//INVENTORY RESTS AT 1159.31 TONNES

JUNE 19/WITH GOLD UP$16.50 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//; INVENTORY RESTS AT 1136.22 TONNES

JUNE 18//WITH GOLD DOWN $2.75 TODAY: NO CHANGES IN GOLD INVENTORY: INVENTORY RESTS AT 1136.22 TONNES

JUNE 17/WITH GOLD DOWN $1.05: NO CHANGES IN GOLD INVENTORY AT THE GLD////INVENTORY RESTS AT 1136.22 TONNES

JUNE 16//WITH GOLD UP $6.70 TODAY: NO CHANGES IN GOLD INVENTORY: /INVENTORY RESTS AT 1136.22 TONNES

JUNE 15/WITH GOLD DOWN ANOTHER $8.80 TODAY, NO CHANGES IN GOLD INVENTORY/INVENTORY RESTS AT 1136.22 TONNES

JUNE 12//WITH GOLD DOWN $1.00 TODAY: A HUGE CHANGE IN GOLD INVENTORY: A DEPOSIT OF 1.17 TONNES AT THE GLD//INVENTORY RESTS AT 1136.22 TONNES

JUNE 11//WITH GOLD UP $16.80 TODAY: A HUGE CHANGE IN GOLD INVENTORY: A DEPOSIT OF 6.55 TONNES AT THE GLD//INVENTORY RESTS AT 1135.05 TONNES

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

Inventory rests tonight at

JULY 24/ GLD INVENTORY 1228.81 tonnes*

LAST;  868 TRADING DAYS:   +286.99 NET TONNES HAVE BEEN ADDED THE GLD

 

LAST 768 TRADING DAYS://+465.46  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

JULY 24/WITH SILVER DOWN $0.12 TODAY: NO CHANGE IN SILVER INVENTORY//INVENTORY RESTS AT 558.779 MILLION OZ/

JULY 23/WITH SILVER UP $.04 TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV// A HUMONGOUS PAPER DEPOSIT OF 9.594 MILLION OZ//INVENTORY RESTS AT 558.779 MILLION OZ///

JULY 22/WITH SILVER UP $1.54 TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV//A HUMONGOUS PAPER DEPOSIT OF 7.218 MILLION OZ//INVENTORY RESTS AT 549.185 MILLION OZ/

JULY 21/WITH SILVER UP $1.38 TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A HUMONGOUS PAPER DEPOSIT OF 15.368 MILLION OZ////INVENTORY RESTS AT 541.967 MILLION OZ//

JULY 20/WITH SILVER UP 40 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV:  A MASSIVE PAPER DEPOSIT OF 3.819 MILLION OZ ‘ENTERED” THE SLV..INVENTORY RESTS AT 526.599 MILLION OZ/

JULY 17/WITH SILVER UP 15 CENTS TODAY: A HUGE CHANGES IN SILVER INVENTORY AT THE SLV/: A DEPOSIT OF 1.583 MILLION OZ INTO THE SLV/INVENTORY RESTS AT 522.780 MILLION OZ//

JULY 16//WITH SILVER DOWN 14 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF  5.123 MILLION OZ//INVENTORY RESTS AT 521.197 MILLION OZ..

JULY 15.WITH SILVER  UP 21 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 1.956 MILLION OZ//INVENTORY RESTS AT 516.074 MILLION OZ//

JULY 14/WITH SILVER DOWN 21 CENTS TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY REST AT 514.118 MILLION OZ//

JULY 13//WITH SILVER UP 67 CENTS TODAY: A HUGE CHANGE IN SILVER: A WITHDRAWAL OF 1.677 MILLION OZ INTO THE SLV//INVENTORY RESTS AT 514.118 MILLION OZ//

JULY 10/WITH SILVER UP 7 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV//A DEPOSIT OF 4.844 MILLION OZ INTO THE SLV//INVENTORY RESTS AT  515.795 MILLION OZ

WHAT A FRAUD!!

JULY 9/WITH SILVER DOWN 8 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV//A DEPOSIT OF 8.198 MILLION OZ INTO THE SLV/INVENTORY RESTS AT 510.951 MILLION OZ/

JULY 8/WITH SILVER UP 37 CENTS TODAY//A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.118 MILLION OZ FROM THE SLV//VERY SURPRISING.//INVENTORY RESTS AT 502.753 MILLION OZ//

JULY 7/WITH SILVER UP 8 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV:/INVENTORY RESTS AT 503.871 MILLION OZ///

JULY 6//WITH SILVER UP 24 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 1.863 MILLION OZ INTO THE SLV//INVENTORY RESTS AT 503.871 MILLION OZ

JULY 2/WITH SILVER UP 4 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV//: A DEPOSIT OF 4.01 MILLION OZ INTO THE SLV//INVENTORY RESTS AT 502.008 MILLION OZ

JULY 1/WITH SILVER DOWN 23 CENTS TODAY: A HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A MASSIVE DEPOSIT OF 5.403 MILLION OZ//INVENTORY RESTS AT 498.007 MILLION OZ/

JUNE 30/WITH SILVER UP 39 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 492.604 MILLION OZ//

JUNE 29/WITH SILVER DOWN ONE CENT TODAY: A TWO CHANGES IN SILVER INVENTORY AT THE SLV: A SMALL WITHDRAWAL OF 466,000 OZ TO PAY FOR STORAGE FEES AND INSURANCE//// AND A LARGE DEPOSIT OF 1.212 MILLION OZ INTO THE SLV///INVENTORY RESTS AT 492.604 MILLION OZ//

JUNE 26/WITH SILVER UP 6 CENTS TODAY: ANOTHER HUGE CHANGE IN SILVER INVENTORY AT THE SLV/ RESTS AT 491.858 MILLION OZ//

JUNE 25/WITH SILVER UP 12 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 931,000 OZ INTO THE SLV////INVENTORY RESTS AT 491.858 MILLION OZ//

JUNE 24///WITH SILVER DOWN 31 CENTS// NO CHANGE IN SILVER INVENTORY//INVENTORY RESTS AT 490.927 MILLION OZ

JUNE 23//WITH SILVER UP 16 CENTS TODAY: A MONSTROUS CHANGE IN INVENTORY: A PAPER DEPOSIT OF 4.473 MILLION OZ INTO THE SLV//INVENTORY RESTS AT 490.927 MILLION OZ//

JUNE 22/WITH SILVER UP 15 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/: INVENTORY/INVENTORY RESTS AT 486/454 MILLION OZ//

JUNE 19//WITH SILVER UP 22 CENTS TODAY: STRANGE!!  A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 839,000 OZ FROM THE SLV////INVENTORY RESTS AT 486,454 MILLION OZ..

JUNE 18/WITH SILVER DOWN 16 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 932,000 OZ INTO THE SLV////INVENTORY RESTS AT 487.293 MILLION OZ

JUNE 17/WITH SILVER UP 8 CENTS TODAY: A HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 3.261 MILLION OZ INTO THE SLV////INVENTORY REST AT 486.361 MILLION OZ

JUNE 16//WITH SILVER UP 20 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 1.118 MILLION OZ INTO THE SLV////INVENTORY RESTS AT 483.100 MILLION OZ//

JUNE 15/WITH SILVER DOWN 14 CENTS NO CHANGES IN SILVER INVENTORY: //INVENTORY RESTS AT 481.982  MILLION OZ///

JUNE 12/WITH SILVER DOWN 30 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV/: TWO DEPOSITS OF 7.269 MILLION OZ AND 1.802 MILLION OZ ADDED TO THE SLV///INVENTORY RESTS THIS WEEKEND AT 481.982 MILLION OZ//

JUNE 11//WITH SILVER UP 6 CENTS TODAY: NO CHANGES IN SILVER INVENTORY: ///INVENTORY RESTS AT 472.89 MILLION OZ//

 

JULY 24.2020:

SLV INVENTORY RESTS TONIGHT AT

558.779 MILLION OZ.

end

 

 

PHYSICAL GOLD/SILVER STORIES
i) GOLDCORE BLOG/Mark O’Byrne

 

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

I highlighted this to you yesterday but it is well worth repeating: the new LME contract will probably go live in Sept and will no doubt cause the price reset in gold/silver

(Andrew Maguire/Craig Hemke/GATA)

New LME contract will slam ‘paper gold,’ foretell price ‘reset,’ Maguire says

 Section: 

12:27a ET Friday, July 24, 2020

Dear Friend of GATA and Gold:

London metals trader Andrew Maguire, interviewed this week by the TF Metals Report’s Craig Hemke for Sprott Money, says the London Metal Exchange soon will offer a gold contract much more closely tied to physical delivery than competing contracts, putting heavy pressure on the “paper gold” system.

Maguire also says:

— The gold/silver ratio will reduce to 63-1 and then to 32-1 and approach a more traditional and sustainable level.

… 

The recent record gold deliveries on the New York Commodities Exchange are an “illusion” because most of the metal is just returning to London and Europe.

Incorporating blockchain technology in gold trading will diminish the “paper gold” sham, ensure the integrity of every transaction from the mine to the end user, enable round-the-clock physical trading, and eliminate any need for daily gold price “fixes.

The U.S. Justice Department recently compelled JPMorganChase to reduce its silver futures contract volume to comply with position limits set by the U.S. Commodity Futures Trading Commission, but the bank routed into its own accounts the metal involved. Prosecutions of the bank will be tied to a “reset” of the monetary metals markets.

— Silver is in short supply at the wholesale level and deliveries are much delayed. The bar list for a recent large silver delivery from JPMorganChase did not include a single correct bar serial number.

Goldman Sachs, the investment bank intimately connected with government treasury departments and central banks, is working with the U.S. Treasury and Bank of England for a revaluation of the monetary metals.

There is now substantial division among bullion banks in their approach to the gold market. Meanwhile central banks know they need to get on the right side of the coming revaluation.

The revaluation will be arranged so the New York Commodities Exchange survives.

Hemke’s interview with Maguire is 27 minutes long and can be heard at Sprott Money here:

https://www.sprottmoney.com/Blog/ask-the-expert-andrew-maguire-july-2020…

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org

END

Please support us as we fight the bad guys.

(GATA/Chris Powell)

We’re beating the bad guys, so will you help us?

 Section: 

11:07a ET Thursday, July 23, 2020

Dear Friend of GATA and Gold:

While the bad guys — the government-underwritten riggers of the gold market — are not going away quietly, they’re on the run now, in large part because other governments and investors generally have come to understand the dishonest mechanisms and oppressive purposes of the Western fractional-reserve gold banking system.

Having documented those mechanisms and longstanding government policies to defeat gold as the only neutral world reserve currency, GATA will claim some credit for that understanding. Will you agree?

… 

Times have been tough in the monetary metals sector until recent months. Investors in the sector have been demoralized, and most monetary metals mining companies have remained too scared of their governments and banks to risk being consider sympathetic to GATA, much less to support us openly.

Despite our constant efforts with them, mainstream financial news organizations remain — there’s no other way of putting it — corrupted out of reporting the gold issue.

Throughout this time GATA has survived because of the help of a few good friends. But we can’t keep turning to them. To sustain operations we must enlist the financial support of new people who appreciate our work.

Each of our dispatches details ways of helping GATA.

Apart from subscribing to The Calandra Report, about which your secretary/treasurer wrote to you earlier today, you can support GATA by purchasing wine from the Fay J Winery in Arkansas and buying a copy of Stuart Englert’s book “Rigged,” a summary of gold price suppression policy that draws heavily on GATA’s work.

Or, of course, you can make a direct contribution to GATA by check or credit card. Since GATA is recognized by the U.S. Internal Revenue Service as a nonprofit and tax-exempt educational and civil rights organization under section 501-c-3 of the Internal Revenue Code, contributions to GATA are federally tax-deductible.

We haven’t formally asked for help in many months. So if you have not yet made a contribution, please consider doing so now. The details are below.

We have made much trouble for the bad guys. With your help we can win — not just for a free and transparent gold market but also for limited and accountable government and fairness among the nations.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org

END’

Mnuchin wants a stable USA dollar and he will protect the dollar’s reserve status

(MarketWatch/GATA)

Treasury secretary says U.S. will protect dollar’s reserve status

 Section: 

‘We Want a Stable Dollar,’ Treasury Secretary Mnuchin Says

By Mark DeCambre
MarketWatch, New York
Thursday, July 23, 2020

Treasury Secretary Steven Mnuchin says that a stable U.S. dollar is the goal of the Trump administration, while, separately, noting that some froth was percolating in the stock market, which has surged since its coronavirus lows seen in late March.

Speaking on CNBC today, responding to questions about the recent trend of weakness in the dollar, Mnuchin noted the nearly unceasing climb in benchmark stock indexes even as the economy continues to reel from the COVID-19 pandemic. The Nasdaq Composite Index has seen 48 consecutive trading days without back-to-back losses.

The Nasdaq has climbed more than 56% from its March 23 low on the back of rallies in the shares of companies including Tesla, Apple, Microsoft, Amazon, Netflix, and Google parent Alphabet. The S&P 500 index and the Dow Jones Industrial Average have both risen by at least 45%.

“We want a stable dollar,” Mnuchin said. “The dollar reflects lots of money coming back into the United States. … It is the reserve currency of the world and we’re going to protect that,” he said.

The dollar has declined by more than 5% against a basket of six major currencies over the past three months, as measured by the U.S. ICE Dollar Index. …

… For the remainder of the report:

https://www.marketwatch.com/story/we-want-a-stable-dollar-says-u-s-treas…

END

 

END

Gold and silver are the canaries in the coal mines and they are singing as to the financial mess in the world

(Ronan Manly/Bullion star)

Ronan Manly: Gold and silver canaries are soaring out of the financial coal mine

 Section: 

8:50p ET Thursday, July 23, 2020

Dear Friend of GATA and Gold:

Gold and silver, the canaries in the coal mine of the financial markets, aren’t choking to death. Bullion Star analyst Ronan Manly writes today that they are flying out and up to the sky in response to powerful developments. Manly’s analysis is headlined “Gold and Silver Roar Higher: The Canaries in the Coal Mine” and it’s posted at Bullion Star here:

https://www.bullionstar.com/blogs/ronan-manly/gold-and-silver-roar-highe…

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org

END

Neumeyer discusses the dynamics of the silver market

(Neumeyer/GATA/Kitco)

No reliable demand data for silver, First Majestic’s Neumeyer says, but world needs a lot more of the metal

 Section: 

11:06p ET Thursday, July 23, 2020

Dear Friend of GATA and Gold:

Interviewed this week by Michael McCrae of Kitco News, First Majestic Silver CEO Keith Neumeyer celebrates silver’s breakout and says there are no reliable demand figures for the metal, because industrial users fear that investors will front-run them even as demand for silver for “green” energy soars.

The interview with Neumeyer is 17 minutes long and can be viewed at Kitco here:

https://www.kitco.com/news/2020-07-23/Tight-silver-market-is-only-going-…

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org

END

Zhu, an important former member of the IMF warns of a blow up event which could sink the uSA dollar as its debts mount

(zerohedge)

Dollar at risk of collapse? Ex-IMF official warns ‘blow-up event’ could sink currency as debt mounts

 Section: 

By Karen Yeung
South China Morning Post, Hong Kong
Friday, July 24, 2020

With the United States expected to double down on its fiscal stimulus measures to mitigate the economic fallout from the coronavirus pandemic, and the U.S. Federal Reserve continuing its aggressive monetary policy easing, there is a rising risk of a sudden loss of confidence in the U.S. dollar, according to a former senior executive with the International Monetary Fund.

Zhu Min, who was deputy managing director of the IMF from 2011 to 2016, said the U.S. dollar’s position as the dominant global currency was at risk of being eroded because of mounting U.S. government debt.

The U.S. Congress is considering a fresh round of relief to support the U.S. economy that is likely to cost at least U.S.$1 trillion on top of the more than U.S.$2 trillion passed earlier this year. Leaders of the Democratic-led House of Representatives and Republican-led Senate will have to reach a compromise on separate bills, with the House having already passed a U.S.$3 trillion package, while the Senate is expected to pass a smaller bill of about U.S.$1 trillion in the coming days.

“The concern isn’t whether the U.S. dollar will see an accumulated decline of 30 percent in the future, but whether there will be a blow-up event that causes a sudden loss of confidence in the dollar and its market to collapse,’ said Zhu, who is head of the National Financial Research Institute at Tsinghua University in Beijing.

… For the remainder of the report:

https://www.scmp.com/economy/china-economy/article/3094416/us-dollar-ris…

end

iii) Other physical stories:

Controversial Gold Advocate Advances For Fed Appointment

Authored by Mike Shedlock via MishTalk,

President Trump’s two Federal Reserve nominees, including the hot-button pick Judy Shelton, will proceed to a vote in the full Senate.

The New York Times reports Shelton Clears Senate Committee, Moving Closer to Fed Board.

Judy Shelton, an unorthodox economist with close ties to the Trump administration, moved a step closer to a seat on the Federal Reserve Board after the Senate Banking Committee voted along party lines on Tuesday to advance her nomination to the full Senate.

Ms. Shelton moved forward along with Christopher Waller, who is research director at the Federal Reserve Bank of St. Louis and a more conventional pick. If they are confirmed by simple majority votes in the Senate, Ms. Shelton and Mr. Waller will fill the two empty seats on the Fed’s seven-member board in Washington.

Attack Dogs Blast Shelton

In a stunningly ignorant, yet hardly surprising op-ed, Steven Rattner says God Help Us if Judy Shelton Joins the Fed.

“Why do we need a central bank?” Ms. Shelton asked in a Wall Street Journal essay in 2009. She wants monetary policy set by the price of gold, a long-abandoned approach that would be akin to a Supreme Court justice embracing the Code of Hammurabi.

Anyone who questions the need for a Central Bank immediately has at least something on the ball. 

The Fed has blown 3 consecutive economic bubbles of increasing amplitude.

By keeping interest rates too low too long, the Fed helped brew the dotcom bubble, then when it burst blew the housing bubble, then before Covid hit blew another enormous stock market bubbles.

Letting the market set rates would have been a dramatic improvement.

The Federal Reserve is an indispensable player in managing our economy. Period.

Wong. Period.

Her past opposition to the Fed buying bonds to help stimulate the economy — as it did successfully during the 2008 financial crisis — would have prevented the central bank from standing up many of the rescue programs that are now helping to keep the economy afloat.

Were it not for the Fed blowing bubbles, we would not need the Fed to stimulate the economy. The Fed overstimulated the economy in a major way three times in the last 20 year.

Rattner wants more of the same.

Between 1880 and 1933, the United States experienced at least five full-fledged banking crises; in the past 87 years, we’ve had two. Though promoted as smoothing price movements, a gold standard in fact magnifies them, as a comparison of the pre-Depression period to the post-World War II era makes clear.

Rattner is ignorant of history.

We had banking crises not because of gold, but because banks lent out more gold than they had on deposit, a fraudulent practice.

A few other weird ideas from Ms. Shelton: She has questioned the accuracy of government statistics. She wants a single currency for North America. (Does she not know how badly the euro has worked?)

Government stats, especially GDP and the CPI are indeed fatally flawed.

But Rattner is correct that wanting a single currency for North America is ridiculous.

However, that is nothing Shelton could do on her own even as Fed Chair. The US, Canada, and Mexico would all have to agree.

Until her confirmation hearing, she backed getting rid of federal deposit insurance, a key protection for individual savers.

Bingo, that is another plus for Shelton. FDIC is an enabler of Fractional Reserve Lending (that is lending more money or for longer period than there are deposits)

The system is so screwed up now that lending creates its own deposit reserves to the benefit of those with first access to money (namely the banks and the wealthy).

Thus Ratter openly advocates more income and wealth inequality.

God help us if the next chair is Ms. Shelton or anyone else with her views. Senate Republicans must recognize this danger and show some backbone.

That was written before the committee vote. Shelton passed the committee 13-12 and now advances to the full senate.

Diversity Desperately Needed

What the Fed desperately needs is diversity in new ideas not token people of color or gender that all think the same way,

Regardless of what one thinks of gold, it is clear the Fed needs new ideas instead of the same old bubble-blowing mindset of a bunch of clowns who have proven they do not know what inflation even is.

Question for Rattner

Hello Steve what do you think if I proposed the Fed set the price of steel or oranges?

Hopefully you would think that would be crazy. But setting the correct price of interest rates and money supply is much harder.

We know that based on 3 consecutive bubbles.

end

GOLD TRADING EARLY THIS MORNING

 

Spot Gold Tops $1,900 For First Time Since 2011

Precious metals prices are once again on the rise this morning with spot gold prices back above $1900…

Source: Bloomberg

The all-time record high price for spot gold, according to Bloomberg data, is $1921.18 in Sept 2011...

(HARVEY: this was an intra day high/not a closing price.)

Source: Bloomberg

Silver is rising too but less so for now, stabilizing after its breathless surge this week…

Source: Bloomberg

The Gold/Silver ratio is creeping higher again…

 

Source: Bloomberg

As a reminder the last time gold traded at these levels, the SNB pegged the franc to the euro.

Where’s Benoit?

END

J Johnson’s gold and silver report…

 

https://www.jsmineset.com/2020/07/24/goooollldddd/

GOOOOLLLDDDD!

Posted July 24th, 2020 at 9:31 AM (CST) by J. Johnson & filed under General Editorial.

Great and Wonderful Friday Morning Folks,

     August Gold is staying in the green with the trade now at $1,890.40, up 60 cents and closer to the high at $1,896.70 than the low at $1,880.50. Silver is signaling, which may no longer be an indicator, with the trade at $22.76, down 22.8 cents after hitting a low of $22.58 with the high up at $22.985. The well printed US Dollar continues to find support with the value pegged at 94.71, up 6.1 points after reaching up to 94.78 with the low so far at 94.515. Of course, all this happened already, before 5 am pst, the Comex open, the London close, and after Goldman Sachs pays $3.9 Billion in penalty’s to the Malaysian government.

       Gold’s gains are everywhere these days! In Venezuela, Gold’s value now sits at 18,880.37 Bolivar, proving a gain of 138.82 overnight with Silver now priced at 227.316, showing a 1.098 Bolivar reduction. Argentina’s Peso price for Gold is now gauged at 135,658.41 giving the holder an additional 1,094.49 in A-Peso value with Silver losing 6.16 A-Peso’s with the last price at 1,633.79. Gold’s value under the Turkish Lira, is now gauged at 12,946.30 showing an additional gain of 96.16 Lira’s with Silver at 155.870, proving a slight reduction of 0.747 of a T-Lira.

      July Silver’s Delivery Demands are to end soon, yet the physical demands remain so strong we can hardly contain ourselves, with today’s starting count at 1,270 fully paid for 5,000-ounce contracts and with No Volume up on the board so far today, reducing the demand count by 106 from yesterday’s tally. Yesterday’s delivery activity happened in between $23.325 and $22.665 with the last buy at $22.91 with the closing price at $22.945. A total of 200 contracts swapped hands throughout yesterday’s pullback, as the trade took away only 13.8 cents. There was a ton of activity these past 2 days inside the Volumes in all the Ag contracts, yet the Overall Open Interest is not showing much of a change with the count adding another 511 short contracts bringing the total to 185,872 Overnighters going against the physicals. So far for the month of July, 15,678 purchases have been completed at the Comex (78,400,000 ounces) and that was before a certain Resolute made a statement.

      July Gold’s Delivery Demands now show a post of 136 fully paid for contracts waiting for receipts and with a Volume of 1 up on the board with a $1,884.30 price attached to it, down $4.80 so far today. Yesterday’s all-day-activity inside the delivery system happened between $1,890 and $1,868.50 with the last buy price at $1,882 with the adjusted close at $1,889.10 that brought a Volume of 133 with it. These newer purchases caused the delivery count to increase by 17. Gold’s Overall Open Interest is now gauged at 609,274 Overnighters proving a 5,676 reduction in count during yesterday’s rally as we watched closely as the Christmas Contract hit $1,927.10 before the calm was applied to the price. We’re not that far away from a new “Life of Contract High” in Gold, maybe today those that hold will feel better than they have these past 9 years.

      Next Tuesday is the August Options Expiration Day for Silver and Gold. The very next day, is the Last Trading Day for the July Contracts with next Friday being the First Notice Day for the August contracts. Yesterday’s activity in Gold was all about the rollover, out of the August contract and into December’s. Decembers Open Interest is now leading all contracts. August is another primary delivery month for Gold, and maybe it will be another stellar month for Silver too. August Gold’s Open Interest is now at 227,778 which represents 22,777,800 ounces. Is that too much for Comex? Let’s wait it out and see.

      Everything has changed for the positive in precious metals! The demands are overwhelming everywhere, including the already collapsed currencies called the emerging markets. Many nations are now vying for physicals, even after Venezuela was denied their gold held under British authority.

What we’ve been talking about can now be visualized, as the impact of the CCP-19 shutdowns on the Gold supply chain becomes more apparent everywhere. With Gold being only a few dollars away from making a new life of contract high, Silver is lagging, and under tremendous pressure, as we wait for that lid to blow! Could it be today, or will next week be it, or? Stay Tooned, and keep smiling! Have a great and wonderful weekend, have a prayer for all and keep your metals close, and as always …

Stay Strong!

Jeremiah Johnson

JeremiahJohnson@cableone.net

More J.Johnson content is available with purchase of a JSMineset subscription

end

Silver Leverage Is Unraveling Like The London Gold Pool

While some feel like the manipulation in the silver market will never end, not only does it appear to be getting closer to the end game, but this has actually happened before.

What we’re seeing now is incredibly similar to the later stages of London Gold Pool, the previous fractional-reserve precious metals scheme, that when it collapsed, forced Richard Nixon to take the U.S. off the gold standard.

To find out what’s going on in Wall Street’s latest version of the scheme, click to watch the video now!

Chris Marcus
July 24, 2020

end

Due to the criminal conviction of trader Edmonds, the USA prosecution is seeking to halt the civil lawsuit. I was misinformed: all discoveries in a civil suit are public and because of that, the prosecution gives the defendants the right to plead the 5th if their testimony incriminates them
(courtesy zerohedge/Chris Powell)

US seeks halt in civil lawsuit accusing JP Morgan of manipulating metals market, citing criminal case

  • The U.S. wants a federal judge to halt a civil lawsuit accusing J. P. Morgan of manipulating precious metals markets. The Justice Department cited an ongoing criminal case as its reason for the request.
  • A former J. P. Morgan trader pleaded guilty in Connecticut last month to manipulation charges.
  • In the guilty plea, the trader said he had learned to make bogus trade orders from senior traders at the bank and that he used the strategy hundreds of times with the knowledge and consent of his immediate supervisors.

A sign of JP Morgan Chase Bank is seen in front of their headquarters tower in New York.

Amr Alfiky | Reuters
A sign of JP Morgan Chase Bank is seen in front of their headquarters tower in New York.

The Justice Department is asking a judge to put the brakes on a civil lawsuit against J. P. Morgan Chase, citing an ongoing probe into a “related criminal case” that involves alleged manipulation of precious metals markets.

The department wants a six-month postponement in the proceedings of the civil lawsuit, which was filed in 2015 by hedge fund manager Daniel Shak and two commodity traders. The government also says it could ask for a longer delay in the case, according to a court filing on Monday.

The move comes days after Shak’s lawyer, David Kovel, sought permission to reopen questioning of two former J. P. Morgan traders and the bank’s current global head of base and precious metals trading.

Kovel, in making the request with the Manhattan federal judge in the civil case, cited last month’s guilty plea by one of those former traders, John Edmonds, in federal court in Connecticut.

Edmonds admitted making bogus bids on precious metals contracts while working at the bank from 2009 to 2015.

Neither J. P. Morgan Chase nor Kovel’s clients have opposed the Justice Department’s request.

In arguing for a delay, the Justice Department said Shak’s lawsuit is “related” to Edmonds’ criminal case and that Edmonds has “pleaded guilty and acknowledged his own participation in such conduct, as well as that of other traders.”

“Edmonds awaits sentencing, but the broader investigation is ongoing,” the Justice Department said. The U.S. wants to delay the civil case “to protect the integrity of its ongoing criminal investigation,” it said.

J. P. Morgan did not respond to a request for comment by CNBC. Kovel declined to comment.

Tuesday night, after this story first was published, Judge Paul Engelmayer ordered the federal prosecutors to explain in detail by Monday why postponing proceedings in the civil lawsuit would not harm those involved, and why reopening questioning “would be detrimental to the Government’s ongoing criminal investigation.”

Englemayer also wrote that he regards Edmonds’ guilty plea “as potentially highly consequential” to the civil case.

In his guilty plea, the 36-year-old Edmonds said he had learned to make bogus trade orders from senior traders at the bank and that he used the strategy hundreds of times with the knowledge and consent of his immediate supervisors. He admitted to working with “unnamed co-conspirators” at J. P. Morgan, according to the Justice Department.

Kovel wants to question Edmonds again as well as Michael Nowak, the bank’s global head of base and precious metal trading, and former J. P. Morgan Chase Managing Director Robert Gottlieb. The three had previously answered questions under oath in the civil case.

Kovel said in court filings that Nowak was the immediate supervisor of Edmonds, while Gottlieb was Edmonds’ mentor.

In his prior deposition, Edmonds said that Gottlieb sat only a “couple feet” away from him for about five years, and that he was “somebody [he] looked up to in the business,” who helped guide and train him.

Nowak is described by Edmonds as his direct supervisor, with whom he would sometimes discuss trading strategies. Nowak was also the person responsible for overseeing the performance and risk of Edmonds’ portfolio, according to the deposition.

Edmonds also stated in his prior deposition that he would enter precious metals trades for both Nowak and Gottlieb, among others.

The civil lawsuit claims Shak and his fellow plaintiffs lost tens of millions of dollars as a result of actions by J. P. Morgan’s traders.

A federal judge tells traders that they can combine cases (with the other 6 banks) as they accused JPMorgan of rigging the precious metals market
(courtesy CNBC)

Federal judge tells traders they can combine cases accusing JP Morgan of rigging metals market

  • Litigation in a separate civil case has been put on hold until at least May at the behest of the Justice Department, which is investigating a “related criminal case” that involves alleged market manipulation by precious metals traders at J. P. Morgan.
  • Judge John Koeltl of the Southern District of New York appointed the White Plains, N.Y., law firm Lowey Dannenberg as interim lead counsel for the proposed class action.

71671201

Spencer Platt | Getty Images

A group of traders from across the U.S. who allege that J. P. Morgan Chase manipulated precious metals markets for years are one step closer to bringing a class action suit against the nation’s largest bank.

Earlier this month, a federal judge said five separate lawsuits making similar allegations against the bank could be combined, potentially including thousands of people who traded in the precious metals market from Jan. 2009 through Dec. 2015.

Litigation in a separate civil case has been put on hold until at least May at the behest of the Justice Department, which is investigating a “related criminal case” that involves alleged market manipulation by precious metals traders at J. P. Morgan.

J. P. Morgan declined to comment on this story.

Judge John Koeltl of the Southern District of New York appointed the White Plains, N.Y., law firm Lowey Dannenberg as interim lead counsel for the proposed class action.

Vincent Briganti, a partner at the firm, filed the first suit seeking class action status in November on behalf of Dominick Cognata, a trader who alleges he suffered losses due to J.P. Morgan’s illegal trading conduct in the silver and gold futures and options markets.

That was after the federal court in Connecticut unsealed a criminal plea agreement by John Edmonds, a former J.P. Morgan metals trader. In his guilty plea, Edmonds, who is 36-years old, admitted that he and other “unnamed co-conspirators” fraudulently manipulated the precious metals markets while they were employed at J. P. Morgan from 2009 to 2015.

Edmonds said he had learned the illegal trading tactics from senior traders, and then used them hundreds of times with the knowledge of and consent of his immediate supervisors.

Briganti’s lawsuit also names John Edmonds and a group of yet-to-be-identified precious metals traders and the bank as defendants.

On Wednesday, the lawyers sent a letter to Judge Koeltl saying they were having difficulty locating Edmonds to serve him legal papers and requested a 30-day extension to do so, which the judge granted on Thursday. Briganti noted that they have been in contact with Edmonds’ attorney in the criminal case. Edmonds’ attorney and Briganti could not be reached for comment.

“We are hopeful that this extension will result in completing service on Mr. Edmonds without formal motion practice and a request for alternative means of service,” Briganti said in the letter.

The next step in the civil case is for the plaintiffs to file an amended class action complaint and set a schedule for defendants to respond.

In addition to the proposed class action, J. P. Morgan also faces a separate civil suit which also accuses the bank of rigging precious metals markets.

end

March 4.2019

Parker City News

JP Morgan faces potential class action lawsuit after guilty pleas by a former metals trader

Traders from across the U.S. are banding together to accuse J. P. Morgan Chase of manipulating precious metals markets for years.

At least six lawsuits, all making similar allegations against the nation‘s largest bank, have been filed in New York federal court in the past month, since federal prosecutors in Connecticut with a former J. P. Morgan Chase metals trader.

The cases could potentially include thousands of people who traded in the precious metals market. The White Plains, N.Y., law firm Lowey Dannenberg is asking the court to combine the cases and name it as the lead.

The law firm‘s commodities group is led by Vincent Briganti, the attorney who filed the first lawsuit on behalf of Dominick Cognata, a New York resident who alleges he suffered losses due to J. P. Morgan‘s trading conduct in the silver and gold futures and options markets.

A combined case, seeking class action status, would include anyone who purchased or sold futures contracts or an option on NYMEX platinum or palladium or COMEX silver or gold between at least Jan. 1, 2009, and Dec. 31, 2015. The lawyers believe that “at least hundreds, if not thousands” of traders would be eligible to join the case.

Named as defendants in all of the lawsuits are John Edmonds, a 36-year old former metals trader at J. P. Morgan, a group of yet-to-be-identified precious metals traders and the bank.

Edmonds, a New York resident, pleaded guilty in October to one count of conspiracy to defraud the market and manipulate prices of precious metals futures contracts and one count of commodities fraud. In the criminal plea, Edmonds admitted that he and other “unnamed co- conspirators” at J. P. Morgan, fraudulently manipulated precious metals markets from 2009 to 2015, the same time frame covered in the class action suits.

Briganti filed the initial class action on Nov. 7, just one day after the Justice Department unsealed Edmonds‘ plea in the U.S. District Court of Connecticut.

Edmonds admitted in his guilty plea that he deployed the illegal trading scheme hundreds of times with the direct knowledge and consent of his immediate supervisors. Plaintiffs say they have suffered economic injury, including monetary losses, as a direct result of actions by Edmonds and the other unnamed J. P. Morgan metals traders in the futures and options contracts.

One of the suits alleges that “the number of unlawful trades that JP Morgan traders executed in precious metals futures markets is at least in the thousands.”

J. P. Morgan declined to comment. Lowey Dannenberg did not respond to a request for comment by CNBC.

The Justice Department‘s criminal investigation is still ongoing and recently caused a separate related civil case to be put on hold for at least six months while the government continues its investigation. That civil lawsuit, which also accuses J. P. Morgan of rigging the precious metals market, was filed in 2015 by hedge fund manager Daniel Shak and two commodity traders.

After reviewing the details of the plea agreement, David Kovel, the attorney for Shak‘s suit, sought to re- interview Edmonds, along with two other current and former senior traders at the bank. However, the government argued that reopening questioning would be detrimental to the ongoing criminal investigation. The federal judge overseeing the proceedings ordered a six-month stay in the civil case.

Kovel declined to comment.

Edmonds was originally scheduled to be sentenced in Hartford, Conn., on Wednesday, Dec. 19, but a court filing on Nov. 27 shows the sentencing has been postponed until June. A spokesman for the U.S. Attorney for Connecticut could not elaborate on why the sentencing was postponed since the court filing is under seal.

-END-

Justice Department stalls another class action in gold market rigging, this one against JPM

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

Proceedings in the federal class-action anti-trust lawsuit against JPMorganChase charging the investment bank with manipulating the gold and silver futures markets —

http://www.gata.org/node/18844

— have been suspended for three months at the request of the U.S. Justice Department, just as the department has arranged suspension of proceedings in the class-action anti-trust lawsuit against Deutsche Bank charging similar market manipulation.

… 

In both cases the Justice Department has told U.S. District Court for the Southern District of New York that proceedings would jeopardize its criminal investigation into market rigging, which has been admitted by a former JPMorganChase trader, John Edmonds, who awaits sentencing.

According to court filings, the White Plains, New York, law firm representing the plaintiffs against JPMorganChase, Lowey Dannenberg, concurred in the government’s request to suspend proceedings. The stay is to continue for three months and may be extended.

The Justice Department’s motion, granted by the court on February 26 —

http://www.gata.org/files/JPMorganChaseClassActionStay.pdf

— said “the government is not seeking an open-ended stay that could indefinitely postpone this matter and thus jeopardize the parties’ interests in a timely resolution.” The motion added, “Any developments in the criminal case during the period the consolidated action is stayed may reduce or completely resolve the need to litigate certain issues in the consolidated action.”

Much of the Justice Department’s motion is redacted to conceal from the public evidence still under investigation. Edmonds has said he and other traders manipulated the gold and silver markets for years with the knowledge of their supervisors at JPMorganChase. In its motion to conceal that evidence, also granted by the court on February 26, the Justice Department said disclosure “could lead to destruction of evidence, flight from prosecution, and otherwise interfere with the government’s ability to conduct its investigation”:

http://www.gata.org/files/JPMorganChaseClassActionStaySeal.pdf

Monetary metals investors may be skeptical of the Justice Department’s stalling the Deutsche Bank and JPMorganChase cases, since the department and the U.S. Commodity Futures Trading Commission do not seem ever to have responded conscientiously to complaints of gold and silver market rigging until the class actions commenced.

How much time will the court give the Justice Department to delay getting to the bottom of the issue? The court might hasten matters if enough monetary metals mining companies protested the harm done to them and their shareholders by market rigging, but of course most monetary metals mining companies don’t mind at all.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org

* * *

Your early FRIDAY morning currency, Asian stock market results,  important USA/Asian currency crosses, gold/silver pricing overnight along with the price of oil Major stories overnight/7 AM EST

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 7.0158/ GETTING VERY DANGEROUSLY PAST 7:1

//OFFSHORE YUAN:  7.0234   /shanghai bourse CLOSED DOWN 128,34 POINTS OR 3.86%

HANG SANG CLOSED DOWN 557.67 POINTS OR 2.21%

 

2. Nikkei closed DOWN 132.61 POINTS OR 0.58%

 

 

 

 

3. Europe stocks OPENED ALL RED/

 

 

 

USA dollar index DOWN TO 94.70/Euro RISES TO 1.1609

3b Japan 10 year bond yield: FALLS TO. +.02/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 106.21/ THIS IS TROUBLESOME AS BANK OF JAPAN IS RUNNING OUT OF BONDS TO BUY./JAPAN 10 YR YIELD IS NOW TARGETED AT .11%/JAPAN LOSING CONTROL OF THEIR BOND MARKET//CARRY TRADERS GETTING KILLED

 

3c Nikkei now JUST BELOW 17,000

3d USA/Yen rate now well below the important 120 barrier this morning

3e WTI:: 41.11 and Brent: 43.41

3f Gold UP/JAPANESE Yen UP CHINESE YUAN:   ON -SHORE DOWN/OFF- SHORE: DOWN

3g Japan is to buy the equivalent of 108 billion uSA dollars worth of bond per month or $1.3 trillion. Japan’s GDP equals 5 trillion usa./“HELICOPTER MONEY” OFF THE TABLE FOR NOW /REVERSE OPERATION TWIST ON THE BONDS: PURCHASE OF LONG BONDS AND SELLING THE SHORT END

Japan to buy 100% of all new Japanese debt and by 2018 they will have 25% of all Japanese debt. Fifty percent of Japanese budget financed with debt.

3h Oil UP for WTI and UP FOR Brent this morning

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.45%/Italian 10 yr bond yield UP to 1.03% /SPAIN 10 YR BOND YIELD DOWN TO 0.35%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.85: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield RISES TO : 1.07

3k Gold at $1894.10 silver at: 22.61   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 45/100 in roubles/dollar) 71.91

3m oil into the 41 dollar handle for WTI and 43 handle for Brent/

3n Higher foreign deposits out of China sees huge risk of outflows and a currency depreciation. This can spell financial disaster for the rest of the world/

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 106.21 DESTROYING JAPANESE CITIZENS WITH HIGHER FOOD INFLATION

30 SNB (Swiss National Bank) still intervening again in the markets driving down the SF. It is not working: USA/SF this morning .9239 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0726 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

3p BRITAIN VOTES AFFIRMATIVE BREXIT/LOWER PARLIAMENT APPROVES BREXIT COMMENCEMENT/ARTICLE 50 COMMENCES MARCH 29/2017

3r the 10 Year German bund now NEGATIVE territory with the 10 year RISING to 0.45%

The bank withdrawals were causing massive hardship to the Greek bank. the Greek referendum voted overwhelming “NO”. Next step for Greece will be the recapitalization of the banks and that will be difficult.

4. USA 10 year treasury bond at 0.58% early this morning. Thirty year rate at 1.23%

5. Details Ransquawk, Bloomberg, Deutsche bank/Jim Reid.

6.  TURKISH LIRA:  UP  TO 6.8479..

S&P Futures Fall, “Panic Selling” In China As US-China Spat Escalates

U.S. stock index futures fell and Chinese stocks tumbled on Friday following another escalation in tensions between the United States and China, and as Intel’s shares slumped after reporting a delay in a developing new chip technology. The dollar continued its slide on the back of euro and yen strength, while interest rates and gold were mostly unchanged.

Global stocks took a hit after Beijing ordered the Washington to close its consulate in the city of Chengdu, responding to a U.S. demand this week that China close its Houston consulate. Intel fell 12% premarket after the company said it was six months behind schedule in developing 7-nanometer chip technology and it would consider farming out more work to outside semiconductor foundries. Competitor Advanced Micro Devices gained 6% on Intel’s woes. American Express dropped in pre-market trading after missing revenue estimates. FAAMGs stocks — Facebook, Amazon.com, Apple, Microsoft and Google — which were pivotal in driving the stock market’s recovery in recent months, slipped between 1.0% and 1.4% on Friday.

On Thursday, the S&P 500 pulled back from a five-month high weighed down by losses in technology stocks, a surprise increase in U.S. jobless claims and Washington’s tug-of-war over stimulus measures. Senate Republicans will unveil their proposal next week for a fresh round of coronavirus aid, including more direct payments to Americans and a partial extension of enhanced unemployment benefits, Senate Majority Leader Mitch McConnell said on Thursday.

European equities also slumped, following a heavy session in Asia which saw Chinese stocks tumble 4%.

As Bloomberg reports, China’s traders, company insiders and overseas investors are all fleeing the country’s stock market. Sentiment is quickly souring amid the biggest threat to Beijing’s diplomatic ties with Washington in years. Traders based beyond mainland China sold more than $2.3 billion worth of Chinese stocks Friday, one of the largest ever outflows via Hong Kong’s exchange links. Some of China’s controlling tech shareholders are getting out as soon as they can. The CSI 300 Index fell 4.4% at the close, while the ChiNext Index dropped 6.1%, the most since Feb. 3. Losses accelerated in the afternoon after the Chinese foreign ministry said it ordered the U.S. to close its consulate in the southwestern city of Chengdu. The Trump administration earlier this week ordered the closure of a Chinese consulate in Houston. Overseas investors sold 16.4 billion yuan of China stocks Friday, the most since a record 17.4 billion yuan was dumped on July 14. Turnover rose to 1.3 trillion yuan, the 17th session over the 1 trillion yuan mark.

“Worries over China-U.S. relations will dominate the market,” said Raymond Chen, a portfolio manager with Keywise Capital Management (HK) Ltd. “People will be closely watching how the U.S. reacts to the closure of Chengdu consulate. I expect more panic selling in the near term.”

The Eurostoxx 600 dropped over 2% with tech, retailers and mining stocks posting sharp losses. Most equity indexes drop into the red for the week, brushing off broadly solid preliminary July PMI data, FTSE MIB underperforms at the margin. European market completely ignored the latest stronger than expected PMI data. As Globman notes, after a record, better-than-expected cumulative improvement of 34.8pt over May and June, the Euro area composite PMI improved further, by 6.3pt to 54.8 in July—notably above expectations—consistent with a continued positive impulse to economic activity from easier lockdown measures and the improvements in high-frequency data. Across sectors, the recovery was broad-based, and slightly stronger in services. The overall composition of the July PMIs was strong. New orders continued to improve amid firmer domestic and foreign demand. The German and French composite PMIs also registered larger-than-expected increases and rose comfortably above 50. Overall, the July PMIs indicate a continued, primarily demand-driven recovery in economic activity across the Euro area, with material positive growth in activity in July (but slower than in May and June).

Key numbers:

  • Euro Area Composite PMI (July, Flash): 54.8, exp. 51.1, last 48.5.
  • Euro Area Manufacturing PMI (July, Flash): exp. 50.1, last 47.4.
  • Euro Area Services PMI (July, Flash): 55.1, exp. 51.0, last 48.3.
  • Germany Composite PMI (July, Flash): 55.5, exp. 50.2, last 47.0.
  • France Composite PMI (July, Flash): 57.6, exp. 53.5, last 51.7.

Australian stocks sunk along with regional peers on US-China escalation. The S&P/ASX 200 index fell 1.2% to close at 6,024.00.

In volatility, the VIX briefly snapped to a 28-handle while Europe’s V2X sits at the week’s highs, just below a 27-handle.

In FX, the Japanese yen led G-10 currency gains amid a broad risk-off sentiment, and the Bloomberg Dollar Spot Index declined, while bunds fell on signs that German activity was expanding. The euro and the pound are on track for their biggest weekly rise against the dollar since early June following encouraging economic data from Germany, the euro area and the U.K. China’s yuan fell as much as 0.28% to 7.0238 versus the greenback, the weakest since July 8.

In rates, haven seekers pushed Treasury 5-year yields to a record low and U.S. equity futures slipped following escalating US-China tensions. Trade has been choppy: Bund futures rally to highs for the week near  177.00, before fading the move through Thursday’s worst levels. China’s government bonds extended gains, with futures contracts on 10-year notes climbing as much as 0.36% to the highest since July 3. The yield on debt due in a decade dropped 5 basis points to 2.86%, the lowest since July 1.

In commodities, oil was flat while gold closed in on $1,900 an ounce, nearing its all-time intraday high. The dollar extended this week’s slide, and the offshore yuan dipped. Core European bonds fell after U.S. Treasuries turned lower.

On the economic calendar, Markit manufacturing and services PMI surveys are due at 9:45 a.m. ET, while new home sales data is expected at 10 a.m.

Market Snapshot

  • S&P 500 futures down 0.5% to 3,211.75
  • STOXX Europe 600 down 1.9% to 366.44
  • MXAP down 0.9% to 165.19
  • MXAPJ down 1.8% to 542.36
  • Nikkei down 0.6% to 22,751.61
  • Topix down 0.6% to 1,572.96
  • Hang Seng Index down 2.2% to 24,705.33
  • Shanghai Composite down 3.9% to 3,196.77
  • Sensex down 0.3% to 38,025.57
  • Australia S&P/ASX 200 down 1.2% to 6,024.00
  • Kospi down 0.7% to 2,200.44
  • German 10Y yield unchanged at -0.48%
  • Euro up 0.1% to $1.1612
  • Brent Futures up 0.4% to $43.46/bbl
  • Italian 10Y yield fell 5.3 bps to 0.858%
  • Spanish 10Y yield rose 0.7 bps to 0.33%
  • Brent Futures up 0.4% to $43.46/bbl
  • Gold spot up 0.4% to $1,894.65
  • U.S. Dollar Index down 0.03% to 94.66

Top Overnight News

  • China retaliated to the U.S. decision to close its mission in Houston by ordering Washington to shut down its consulate in Chengdu, a key listening post for Tibet developments
  • The euro- area economy saw activity grow for the first time in five months in July, but soft demand means companies continue to reduce headcount
  • Banks haven’t sufficiently prepared for reforms to interest-rate benchmarks that underpin assets worth trillions of euros, the European Central Bank said
  • European Union governments are poised to approve a “coordinated package” of measures to support Hong Kong in the face of China’s new national-security legislation for the financial hub

APAC stocks traded lower across the board as the region took its cue from the losses on Wall Street, where the S&P snapped a four-day winning streak and the Nasdaq underperformed on the back of the sell-off in major tech stocks. Furthermore, Intel shares slumped 10% after-hours despite broadly positive earnings as its advanced 7-nanometre chip product transition faces a further delay, albeit competitor AMD soared 7.5% on the news.  Losses in Asia-Pac came ahead of the anticipated retaliatory announcement from China, where it confirmed it will be asking the US to close its consulate in Chengdu, as touted by sources. ASX 200 (-1.2%) was weighed on by the losses across its heavyweight miners and financials. KOSPI (-0.7%) took a breather from yesterday’s underperformance, and as new cases in South Korea continue to decline in pace. Hang Seng (-2.2%) was pressured by a number of large cap stocks in the red and with fears that the closure of the US consulate in Hong Kong is in China’s arsenal, although this would be akin to a nuclear option. Similarly. Shanghai Comp (-3.8%) underperformed as investors took chips off the table amid China’s retaliatory move, whilst experts cited by Global Times stated that Beijing could also consider a targeting strike such as expelling hundreds or more US diplomats in Mainland and Hong Kong,. As a reminder, Japanese markets were closed in observance of National Sports Day Holiday.

Top Asian News

  • Panic Selling Grips Chinese Stocks After U.S. Tensions Worsen
  • Glove Mania Boosts Malaysia Market Value to Challenge Singapore

European equities trade lower across the board (Eurostoxx 50 -1.5%) following a negative close on Wall Street yesterday, alongside heightening tensions between the US and China after China confirmed it will be asking the US to close the Chengdu consulate in response to the closure of the Chinese consulate in US. Furthermore, Europe is also being hampered by performance in tech names after Intel (-11.1% pre-market) reported after-hours yesterday. Despite financial metrics being broadly positive, disappointment was seen after reports that the Co.’s advanced 7-nanometre chip product transition faces a further delay. Given the above, a raft of broadly upbeat PMI prints from across the Eurozone have prompted only a modest pick-up in sentiment, with markets perhaps looking to the weeks/months ahead to determine if such readings are indicative of the recovery that is to come. Elsewhere in terms of sector-wide performance, telecom names are being weighed on by Vodafone (-5.2%) after the Co.’s Q1 sales fell short of expectations, whilst also announcing that it is targeting early 2021 for a Frankfurt listing of its mast business. Energy names are faring modestly better than peers, albeit still lower on the day with some reprieve being granted by slightly firmer energy prices and Equinor (+1.8%) after the Co. reported former than expected profits, supported by trading activities. Centrica (+20.0%) is the clear outperformer in the Stoxx 600 with the Co. announcing it is to propose the sale of Direct Energy to NRG Energy for USD 3.625bln in cash alongside H1 earnings.

Top European News

  • U.K. July Flash Composite PMI 57.1 Vs 47.7; Est 51.7
  • Vallourec Falls on Report That It Has Sought State Aid
  • ECB Weighs the Publication of Compounded ESTR Term Rates

In FX, the lack of Japanese involvement and potential export/corporate supply may be exacerbating the move, but risk aversion on well documented and familiar factors have prompted a more pronounced and widespread increase in demand for the safe-haven Yen. Indeed, Usd/Jpy has made a decisive break through 107.00, 106.67-65 recent lows and is now edging towards the round number below where support resides at 106.07 (June 23 base) ahead of stronger downside technical levels in the form of a double or tweezer bottom at 105.99 (consecutive troughs from May 6 and 7). Similarly, Eur/Jpy has reversed sharply from post-EU fiscal stimulus highs to the low 123.00 zone, as the single currency loses momentum generally.

  • EUR/GBP – Propped by better than expected and encouraging preliminary PMIs, including the German manufacturing sector returning from deep contraction to the threshold of expansion, but hampered on the other hand by broader risk-off sentiment and no progress on the Brexit trade front. Hence, the Euro is finding the altitude rare above 1.1600 against the Greenback and the Pound continues to struggle on the 1.2700 handle, albeit forming a firmer base above Cable’s 200 DMA (bang on the big figure today).
  • AUD/CAD/NZD – Further erosion from lofty peaks vs their US counterpart, as the DXY pares some losses from a new 2020 nadir between 94.569-810 parameters, with the Aussie sub-0.7100, Loonie back under 1.3400 and Kiwi near the bottom of a 0.6653-19 range. Little independent reaction to decent improvements in CBA PMIs or a narrower NZ trade surplus overnight, with the former somewhat marred by more COVID-19 cases in Victoria and the Aud also monitoring another YUAN retreat below 7.0000 after confirmation of Chinese consulate retaliation against the US.
  • EM – The aforementioned sour risk tone and rising virus infections are weighing on regional currencies, but the Rouble is deriving a degree of underlying support from Brent holding above Usd 43/brl awaiting the upcoming CBR rate call amidst expectations for a 50 bp reduction, but no guarantee after Governor Nabiullina intimated that a pause is possible following June’s ease to the current 4.5% ATH.

In commodities, WTI and Brent are firmer this morning in what appears to be a consolidation from some of the US hours downside given stimulus concerns and US-China tensions; albeit, the benchmarks still have some way to go to recapture yesterday’s decline. In terms of newsflow there is nothing fundamentally new for the complex, which has been the theme for the entirety of the week. On the docket for today we do have the weekly Baker Hughes rig count which may draw some attention but aside from that price action will likely follow, at least directionally, risk sentiment once again. This morning saw earnings from Equinor and in terms of their more qualitative commentary the CEO sees downward pressure on prices given OPEC easing their production cut quotas but ultimately continues to expect the market to achieve balance in 2022. For metals, the upside action for precious metals continues with gold and silver both firmer on the day aided by dollar downside. The yellow metal is yet to eclipse USD 1900/oz with the session high USD ~2/oz from this handle afterwhich just the all time high of USD 1921.75/oz lies as a possible sticking point.

US Event Calendar

  • 9:45am: Markit US Manufacturing PMI, est. 52, prior 49.8
    • Markit US Services PMI, est. 51, prior 47.9
    • Markit US Composite PMI, prior 47.9
  • 10am: New Home Sales, est. 700,000, prior 676,000
  • 10am: New Home Sales MoM, est. 3.55%, prior 16.6%

DB’s Jim Reid concludes the overnight wrap

I’m in the dog house today. As my golf club has now opened for outdoor dining I took Maisie on a lunch date yesterday and a rare hour away from the desk. She has missed their ice creams and was so excited about going back. I even bought her a pink putter to use on the practise green. We had a lovely lunch and by 1pm I was back at my desk. At 5pm my wife comes up to my study and says “how much ice cream did you give Maisie? She has been hyper all afternoon and I can’t control her. She’s being a nightmare”. I innocently replied that she ate 3 scoops. My wife said, “Jim, she’s only 4. She shouldn’t have more than one small scoop. Not 3 adult size ones. She’s still got so much sugar running through her veins. Thanks a lot”. I had no concept at the time although I did wonder why she kept on knocking the putts off the green.

It’s fair to say that US/Chinese relations continue to steer off the fairway and into the deep rough and US Secretary of State Pompeo speech last night didn’t help matters. In it the Secretary called on the Chinese people to change the direction of the ruling Communist Party. He also said that “a new alliance of democracies” should be made to push back against “the Chinese Communist Party’s designs on hegemony”. Overall the speech was fairly hawkish in nature. This came a few hours after it was reported that China is ‘set to shut US consulate’ in Chengdu (confirmed overnight). It is strategically important given American interest in Tibet and is seemingly in retaliation to the orders earlier this week to close the Chinese consulate in Houston.

Shortly after a draft of Pompeo speech was sent to major news networks, US risk assets started sliding, especially technology stocks. Remember that these were more sensitive to negative news flow during the trade war last year.

Today however, attention will turn to the flash PMIs for July, which will be one of the first indications of how different economies have performed in the month. Overnight we saw the numbers out from Australia, which showed a continued recovery with the services PMI printing at 58.5 (vs 53.1 last month) while manufacturing came in at 53.4 (vs. 51.2 last month) bringing the composite PMI to 57.9 (vs. 52.7 last month). In Europe and the US consensus expectations are that most of the PMIs will cross the crucial 50-mark that separates expansion from contraction, but of course this is following months of often severe contractions, so still a long way to go before we get back to where we were. A big focus will be on whether the US can hold up relative to Europe given the slowing down of reopenings in the former and the steady normalisation in the latter.

Asian markets are all trading lower this morning with Chinese bourses leading the declines amidst renewed tensions with the US. The Hang Seng (-1.83%), Shanghai Comp (-2.25%), CSI (-2.99%), Kospi (-0.66%) and Asx (-1.17%) are all down. Meanwhile, President Trump’s overnight statement that the trade deal with China “means less to me now than when I made it” is also appearing to weigh on sentiment. In a sign of risk off, the Japanese yen is up +0.43% this morning. Futures, on the S&P 500 are also down -0.46% after a tough close in the US. Elsewhere, Japan’s markets continue to remain closed for a holiday and Intel’s warning on a production delay also has seen an after-hours dip in the stock (-1.06%).

Ahead of Pompeo’s speech yesterday, risk assets ran out of steam on poor US data and then accelerated lower on weakness in Tech stocks. The S&P 500 dropped -1.23% from its post-pandemic high the previous day. It was the “Mega-cap” Tech stocks that led the declines, first on the US/China headlines and then took another leg lower later in the session, potentially on regulatory news. It was reported that Apple could be facing a multi-state consumer protection probe. Also the US House of Representatives panel is meeting next week (on July 27) to discuss Google (-3.07%), Facebook (-3.03%), Apple (-4.55%) and Amazon (-3.66%) on potential antitrust matters. The panel was prescheduled but the outcomes may have higher investor scrutiny now given recent outperformance of the complex. The underperformance of tech stocks saw the NASDAQ close down -2.29%, the largest retreat in nearly a month. A reminder that Apjit Walia, our Tech Strategist, published a report where he explores the upcoming tech cold war between the US and China (first touched upon in our latest Konzept magazine). This could cost the sector $3.5tn over the next five years in a full blown cold war. Link to new video here.

With the majority of the US loses coming later in the session, European equities survived with little change, with the STOXX 600 managing to eke out a +0.06% advance. Meanwhile, the DAX saw a miniscule -0.01% loss, but it still brought an end to a run of 10 successive sessions in which it had outpaced the STOXX 600.

Along with the ratcheting up of US-China tensions and the ensuing tech news, the mood among investors was further dampened by the initial weekly jobless claims from the US, which covered the week ending July 18. They showed an increase in claims to 1.416m (vs. 1.3m expected), marking the first time that weekly claims have risen since late March, bringing to an end a run of 15 successive declines. Certainly that’s a metric to watch out for given the resurgence of the virus in the US, and the increase will only add to concerns that the recent progress in reducing unemployment in the last couple of jobs reports is likely to slow in the months ahead. That said, we did get more positive news from the continuing claims for the previous week (ending July 11), which fell to 16.197m (vs. 17.1m expected), with the insured unemployment rate falling to 11.1%.

On the coronavirus, Florida reported a record 173 deaths yesterday as cases rose by 2.6%, which is under the 7-day 3.3% average but still represents over 10,000 new cases. Even in light of the pickup in fatalities and high absolute case rate, Governor DeSantis said there was no need to impose new restrictions, citing locally enacted mask and distancing measures. Meanwhile, California reported 5,975 new cases over the past 24 hours or a 2.9% increase, which is larger than the 2.5% 7-day average, indicating that the spread is still ongoing in the state even as they re-implemented some restrictions late last month. On the other hand, Arizona is likely seeing early returns on their restrictions as public-health experts in the state said the virus may have reached a peak. Cases rose by 1.3% vs. the 7-day average of 2.0% and the 7-day average of new cases has fallen from under 4000 per day to just over 2000 in the past week. Given the initial claims data worsening across the US, it will be important to watch which states can get the recent outbreak under control and how long it takes to do so. Elsewhere, Asian countries like Hong Kong, Japan, India and the Australian state of Victoria are also seeing worrying virus trends.

Sticking with the US, it looks like fiscal support may be a bit further away, as Senate majority leader Mitch McConnell said overnight that committee chairman and other Republicans would begin introducing components of their stimulus plan on Monday. This may mean the Fed decides it needs to do more of the lifting when it meets next week. In other details on the stimulus plan out overnight, instead of a payroll tax cut, the GOP will now back $1,200 checks for individuals who make as much as $75,000 a year, exactly as in the March stimulus bill.

Back to markets yesterday and in fixed income, the drop in risk sentiment saw 10yr Treasury yields fall a further -2.0bps to 0.577%, a 3-month low and just 3.7bps off its all-time record low back in March. In Europe there was yet another divergence between core and periphery following the agreement on the recovery fund. Notably, yields on 10yr Italian BTPs fell below 1% for the first time since the lockdown, and the spread of Italian (-6.2bps), Spanish (-2.0bps) and Portuguese (-2.9bps) 10yr yields over bunds all fell to 4-month lows.

Staying on Europe, the latest round of Brexit talks wrapped up yesterday on the UK and EU’s future relationship. However, it was clear from what both sides said afterwards that serious gaps remained between their respective positions. Judging by both statements, the two key sticking points continue to be the question of the level playing field, where the EU is seeking guarantees that the UK won’t undercut it with lower standards, along with fisheries. The UK’s chief negotiator David Frost said that “considerable gaps remain in the most difficult areas”, while the EU’s chief negotiator Michel Barnier notably said that the UK’s “refusal to commit to conditions of open and fair competition and to a balanced agreement on fisheries” meant that “the UK makes a trade agreement at this point unlikely.”

With all that said, there were some promising signs, with indications that there’d been movement by both sides on the question of how a future agreement would be governed, as well as progress on the question of UK participation in EU programmes. The two sides have until the end of the year to finalise a deal, when the Brexit transition period finishes. In practice an agreement will likely be needed earlier than that, because of the ratification process that needs to occur. Barnier himself has previously put this effective deadline at the end of October, so it should be an eventful few months ahead.

In terms of the latest in the precious metals rally, gold advanced a further +0.86% yesterday in its 5th consecutive move upwards, reaching a fresh 8-year high of $1887/oz. Note that we’re now less than 1% away from the all-time closing high in nominal terms for gold of $1900/oz back in September 2011, with the intraday high of $1921/oz also reached that month. The rally ran out of steam elsewhere however, with silver down by -1.77%, and platinum (-0.47%) and palladium (-0.07%) also moving lower.

Finally, there wasn’t much in the way of other data yesterday. However, the European Commission’s advance consumer confidence reading for the Euro Area in July unexpectedly fell back to -15.0 (vs. -14.7 in June), suggesting the rebound might not be as vigorous as expected. Over in the US meanwhile, the Kansas City Fed’s manufacturing index rose to 3 (vs. 5 expected).

Before the day ahead some advertising of some interesting recent DB research videos. Our APAC Economics team have received an unusually high number of questions about the future of the HKD peg in recent weeks. What’s especially unusual is that market participants are concerned about devaluation of a currency that has been trading on the strong side of the convertibility band for most of the last four months. Video and report here from Michael Spencer, Head of APAC Research. Staying in APAC Yi Xiong, Chief China Economist, has published a report on how after a strong rebound in Q2, divergence across sectors will likely be the next main theme for China’s economy. Video and report here.

To the day ahead now, and the highlight is likely to be the aforementioned flash PMI readings. Otherwise, there’s UK retail sales out for June, Italy’s consumer confidence index for July, and US new home sales for June. Elsewhere, the Russian central bank will be making its latest monetary policy decision, while earnings highlights include Verizon, NextEra Energy, T-Mobile and American Express.

 

 

3A/ASIAN AFFAIRS

i)FRIDAY MORNING/ THURSDAY NIGHT: 

SHANGHAI CLOSED DOWN 128.34 POINTS OR 3.86%  //Hang Sang CLOSED DOWN 577.67 POINTS OR 2.21%   /The Nikkei closed DOWN 132.61 POINTS OR 0.58%//Australia’s all ordinaires CLOSED DOWN 1.06%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0158 /Oil UP TO 57.21 dollars per barrel for WTI and 64.13 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0158 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0234 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED//CORONAVIRUS/PANDEMIC  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

 

b) REPORT ON JAPAN

 

3 C CHINA

CHINA VS USA
China shutters American consulate in Chengdu.  A new cold war heats up dramatically
(zerohedge)

China Shutters American Consulate In Chengdu As “New Cold War” Heats Up

Update (0800ET): China’s Foreign Minister Wang Yi, one of the most visible senior officials in the President Xi-led Communist Party, said Friday that the current “difficult situation” in US-Sino relations was “entirely the fault of the US.”

Meanwhile, CCP mouthpiece the Global Times warned in an article published roughly an hour ago that the closure of the US consulate in Chengdu will cause more strategic losses on the US side as “Washington has long used its diplomats in Chengdu to infiltrate Tibet and other regions in Southwest China, interfering in China’s domestic affairs.

In a statement that alludes to the western powers’ criticisms of China’s blatant and widespread abuses of human rights in Xinjiang, the GT cited a top Foreign Ministry spokesman, who said during a briefing on Friday that the US’s consulate in Chengdu was a thinly veiled espionage operation…

Wang Wenbin, a spokesperson of China’s Foreign Ministry, said at a routine press conference on Friday that some diplomats at the US consulate in Chengdu have undertaken activities that are “inconsistent with their identity” to interfere in China’s domestic affairs and damage China’s national security, and China has made many representations to the US on that front.

Li Haidong, a professor at the Institute of International Relations under the China Foreign Affairs University, told the Global Times on Friday that the US consulate in Chengdu covered affairs in China’s Tibet and many ethnic regions in Southwest China, meaning it played a significant strategic role for the US in China.

The US Consulate General in Chengdu was established in 1985 and covers regions including the Sichuan, Yunnan and Guizhou provinces, the Chongqing Municipality and the Tibet Autonomous Region, according to the consulate’s website.

An expert on China-US relations and intelligence who asked for anonymity told the Global Times that the US has used its consulate in Chengdu to infiltrate Tibet region and interfere in China’s ethnic and religious affairs for a very long time.

…unlike China’s consulate in Houston, which existed simply to serve the needs of Chinese nationals living the expat life in the Southwestern US (along with Puerto Rico),

Li said, “In recent years, the consulate in Chengdu has been collecting intelligence in Tibet and other areas of Southwest China, and has produced misinformation to demonize China’s governance in Tibet. If the US, just as US Secretary of State Mike Pompeo said, intends to increase its input in China and support a color revolution, the consulate in Chengdu could create a lot of problems for China.”

Unlike the US consulate in Chengdu, China’s consulate in Houston is mainly responsible for providing consular services to Chinese nationals in southeastern American states and other diplomatic affairs, said experts.

On Weibo, a popular social media platform in China, users reportedly “felt sorry” for the American diplomats who were being kicked out of Sichuan because the diplomats would no longer be able to enjoy the authentic Sichuan-style cooking in the region, or gaze at the giant pandas.

Chinese web users also mocked the US diplomats “will lose more” as they can’t stay in Chengdu anymore. Some of them said on Sina Weibo that they feel “very sad” for the Americans who won’t have access to delicious cuisine from Sichuan like hotpot nor the lovely giant pandas in Chengdu, as they would feel the consequences of their reckless politicians who decided to endlessly challenge the bottom line of the Chinese government.

The article was accompanied by this helpful infographic:

* * *

As one prominent CCP mouthpiece warned yesterday afternoon, China has unveiled its retaliation against Washington for ordering the abrupt closure of a consulate in Houston. And markets aren’t taking it too well, with US futures moving even lower following a sharp selloff Thursday afternoon as the gravity of the situation finally rattled investor confidence.

China announced Friday morning that it would order the closure of the American consulate in Chengdu, a major Chinese city and the capital of Sichuan Province.

China ordered the US to close Chengdu consulate within 72 hours, the same as the time that the US gave to China for the closure of the Houston consulate, according to Global Times editor Hu Xijin.

As the New York Times explains, this latest tit-for-tat suggests that the bilateral relationship between the world’s two largest economies has reached another grim milestone as the deterioration accelerates.

The tit-for-tat consulate closures were yet another twist in deteriorating relations between Washington and Beijing, perhaps the gravest one yet. Previous moves by the two sides have included visa restrictions, new travel rules for diplomats and the expulsion of foreign correspondents. By shutting down diplomatic missions, however, the two countries seem to be moving inexorably toward a deeper divide.

The Ministry of Foreign Affairs in Beijing said the move was a “legitimate and necessary response to the unjustified act by the United States.” It said the United States was responsible for the deterioration in relations and urged it to “immediately retract” its directive to close the consulate in Houston.

China’s announcement came hours after Secretary of State Mike Pompeo delivered a speech outlining the Trump administration’s increasingly aggressive stance toward China on virtually every aspect of the relationship — from trade to technology.

“We must admit a hard truth that should guide us in the years and decades to come, that if we want to have a free 21st century, and not the Chinese century of which Xi Jinping dreams, the old paradigm of blind engagement with China simply won’t get it done,” Mr. Pompeo said on Thursday. “We must not continue it and we must not return to it.”

He spoke in California at the library of President Richard M. Nixon, whose visit to China in 1972 set in motion a new era of relations that, he said, China exploited to the disadvantage of the United States. His reference to the closing of the consulate in Houston was met with a round of applause.

Several academics quoted by Voice of America News warned that this latest diplomatic standoff is a sign of a new ‘Cold War’, and that there would likely be more mud-slinging and military posturing between now and the November election.

“It is an escalation (of diplomatic tensions). And it is a new cold war that’s been launched step by step by the U.S. and China,” said Sang Pu, a political commentator in Hong Kong.

“U.S.-China relations have been hitting all-time lows since the [coronavirus] pandemic started or, in particular, Hong Kong’s national security law took effect,” Shi Yinhong, an international relations professor at Beijing’s Renmin University, told VOA.

“There are still four months ahead of the U.S. presidential election and six months before the next administration takes office in the White House. During that period of time, Trump will no doubt make many other moves to worsen the relationship between both countries,” the professor projected.

But Pompeo’s speech wasn’t the only reason for CCP officials to grouse. Media reports published yesterday claimed the US had identified at least 25 CCP members who are involved with sensitive research at universities around the US.

Sen Marco Rubio tweeted earlier this week that China’s Houston consulate was a “nest of spies”; the White House hasn’t offered much in the way of justification for the decision.

White House adviser Kellyanne Conway said during a press briefing earlier this week that President Trump “remains unhappy” with China over its handling of an outbreak that has killed more than 140,000 Americans.

Washington “abruptly demanded” the closure of the Houston consulate late Tuesday, according to media reports confirmed by China’s Foreign Ministry. The order apparently led officials at the diplomatic mission to start burning sensitive documents, drawing the attention of local police.

end

4/EUROPEAN AFFAIRS

CORONAVIRUS UPDATE/SPAIN/THE GLOBE

Spanish Officials Panic As Barcelona COVID-19 Outbreak Intensifies; US Suffers 3rd Day Of 1k+ Deaths: Live Updates

Summary:

  • Spain’s latest outbreak worsens
  • US suffers 3rd day of ~1k deaths
  • US cases pass 4 million
  • Vietnam sees first suspected local case after nearly 100 days

* * *

Update (0825ET): While Paul Krugman continues to point fingers and exaggerate the failures of the US’s approach to fighting the pandemic from his comfortable perch on the NYT’s editorial board, investor Jim Bianco highlights three “problem charts” that have little to do with the US.

Krugman, meanwhile, is engaging in one of his favorite pastimes: honing the art of the self-own.

* * *

Following record or near-record daily death tolls in Texas, Florida and several other badly hit Sun Belt states yesterday, it looks like the US recorded more than 1,000 deaths for the third day in a row, according to the figures reported yesterday.

Source: The COVID Tracking Project

While the Sun Belt outbreak appears to have passed its peak for new cases, deaths remain elevated, as do hospitalizations. It appears that the measures undertaken by regional leaders have finally caused the rate of infection to plateau, but not before the number of confirmed cases topped 4 million.

As a new cluster emerges in the capital of Xinjiang, the far-flung western province where 1 million or more members of a Muslim minority have been sent to a network of prison camps, Beijing has apparently sloughed off its own outbreak scare, and is now allowing movie theaters to reopen in the capital city for the first time since the outbreak began.

In Western Europe, fears about a second wave have intensified as a new outbreak in Catalonia, a region of Spain known for its separatist inclinations, has spread seemingly untrammeled.

Even the revival of a lockdown and other containment measures in Lleida and the regional capital Barcelona, the area where the new outbreak is centered, has yet to slow the new outbreak, and in their frustration, Spanish officials have started playing “the blame game”, according to the FT.

José Luis Morales Rull, lead coronavirus doctor at one of the main hospitals in the Catalan city of Lleida, took his first time off in months after Spain’s original lockdown ended on June 21. With a single Covid-19 patient remaining, he looked forward to closing the dedicated ward and going back to normal. But when he returned to work two days later, there were 16 infected patients and the numbers have not stopped rising since.

Dr Morales this week opened a fourth Covid-19 ward to treat the influx of victims after a second wave of infections around Lleida and the regional capital Barcelona prompted authorities to impose new restrictions on the province. Catalonia, with 16 per cent of Spain’s population, has accounted for almost half of its 16,410 Covid-19 cases recorded in the past two weeks. “They underestimated the enemy,” the doctor said.

After recording 99 consecutive days without a single verifiable case of local transmission, Vietnamese health officials in the coastal city of Danang have quarantined more than 50 people who are believed to have come into contact with a man who tested positive in what many fear might be the first locally-transmitted case in months. The unidentified 57-year-old male had tested positive for the virus twice and authorities are waiting for more tests to confirm the situation.

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

6.Global Issues

CORONAVIRUS UPDATE/GERMANY

The coronavirus can travel nearly 30 feet. Meat slaughterhouses have to be careful because they do their job in 50 degree F with stagnant air flow

(zerohedge)

Coronavirus Traveled Nearly 30 Feet At German Slaughterhouse Where 1,500 Employees Contracted Virus

COVID-19 particles traveled26 feet across a German slaughterhouse where approximately 1,500 workers contracted the virus, according to researchers who reconstructed the likely cause of the outbreak at the Toennies Groups slaughterhouse in Rheda-Wiedenbrueck.

According to Bloomberg, a combination of cold, stale airallowed the virus to spread over such a long distance, raising concerns that the same might happen at meat plants worldwide.

And while the virus is significantly less deadly than originally thought, it can lead to significant disruptions, as it takes between two weeks and several months to recover. Some patients still report symptoms, though how contagious they are is yet to be seen.

Similar conditions at plants globally are a reason they’ve become virus epicenters, according to the report from groups including the Helmholtz Center for Infection Research.

Meat plants from the U.S. to the U.K. and South America have seen the rapid spread of the virus, infecting thousands of employees who often work in close proximity on processing lines. Dozens of workers have died, and labor advocates have said that a lack of social distancing could continue to put people at risk. Outbreaks also forced American meat plants to close earlier this year, sparking some protein shortages. –Bloomberg

The Tonnies outbreak is believed to have been caused in May by a single employee who infected the rest of their co-workers in the plant’s dismantling area, where temperatures hover around 50 degrees Fahrenheit.

According to Adam Grundhoff, co-author of the study,chilly air circulated without frequent changes, combined with a strenuous work environment, helped move virus particles long distances.

“It is very likely that these factors generally play a crucial role in the global outbreaks in meat or fish processing plants,” said Grundhoff, a research group leader at the Heinrich Pette Institute, Leibniz Institute for Experimental Virology. He added that distances of 1.5 to 3 meters (5 to 10 feet) is insufficient to prevent transmission.

The Toennies plant — Germany’s largest pork abattoir — reopened last week after a month-long closure and plans to gradually ramp up output. The company, which posted a link to the research report on Twitter, also recently released 25-point plan detailing measures it’s making to prevent further outbreaks. They include testing employees twice a week, hiring workers directly and overhauling ventilation.

The report’s findings show that no factory worldwide was built for such a crisis, and the company has invested in air filters and other mechanisms to protect employees, a Toennies spokesman said by email. –Bloomberg

The workers’ housing conditions were not found to play a significant role in the outbreaks.

“The important question now is under what conditions transmission events over longer distances are possible in other areas of life,” said Helmholtz center research group leader Melanie Brinkmann.

The results of the German meat plant study put COVID-19’s reach at just under twice that observed by a team of Chinese government epidemiologists, who found that aerosolized coronavirus can hang in the air for at least 30 minutes and travel up to 14 feet.

As we noted in March, the study, conducted by a team of Chinese government epidemiologists from Hunan province, also found that the virus can survive for days on a surface where respiratory droplets land.

The length of time it lasts on the surface depends on factors such as temperature and the type of surface, for example at around 37C (98F), it can survive for two to three days on glass, fabric, metal, plastic or paper.

These findings, from a group of official researchers from Hunan province investigating a cluster case, challenge the advice from health authorities around the world that people should remain apart at a “safe distance” of one to two metres (three to six and a half feet). –SCMP

The researchers warned that the virus could survive over five days in human feces or bodily fluids, and that it could remain floating in the air after a carrier had left a public bus.

“It can be confirmed that in a closed environment with air-conditioning, the transmission distance of the new coronavirus will exceed the commonly recognised safe distance,” the researchers wrote in their paper, published in peer-reviewed journal, Practical Preventive Medicine.

“Our advice is to wear a face mask all the way [through the bus ride],” the researchers recommended.

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

 

 

 

Your early morning currency/gold and silver pricing/Asian and European bourse movements/ and interest rate settings FRIDAY morning 7:00 AM….

Euro/USA 1.1609 UP .0014 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS/CORONAVIRUS/PANDEMIC /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /ALL RED

 

 

USA/JAPAN YEN 106.21 DOWN 0.640 (Abe’s new negative interest rate (NIRP), a total DISASTER/NOW TARGETS INTEREST RATE AT .11% AS IT WILL BUY UNLIMITED BONDS TO GETS TO THAT LEVEL…

GBP/USA 1.2761  UP  0.0032  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.3422 UP .0017 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  FRIDAY morning in Europe, the Euro ROSE BY 14 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1609 Last night Shanghai COMPOSITE CLOSED DOWN 128.34 POINTS OR 3.86% 

 

//Hang Sang CLOSED DOWN 557.67 POINTS OR 2.21%

/AUSTRALIA CLOSED DOWN 1,06%// EUROPEAN BOURSES ALL RED

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL RED 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 557.67 POINTS OR 2,21%

 

 

/SHANGHAI CLOSED DOWN 128,34 POINTS OR 3.86%

 

Australia BOURSE CLOSED DOWN 1.06% 

 

 

Nikkei (Japan) CLOSED DOWN 132.61  POINTS OR 0.58%

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1893.40

silver:$22.60-

Early FRIDAY morning USA 10 year bond yield: 0.58% !!! DOWN 0 IN POINTS from THURSDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1,23 DOWN 1  IN BASIS POINTS from THURSDAY night.

USA dollar index early FRIDAY morning: 94.70 DOWN 0 CENT(S) from  THURSDAY’s close.

This ends early morning numbers FRIDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing  FRIDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.36% UP 3 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: +.02%  DOWN 0   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.36%//UP 1 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,02 UP 2 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 66 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: RISES TO –.45% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.43% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR FRIDAY

Closing currency crosses for FRIDAY night/USA DOLLAR INDEX/USA 10 YR BOND YIELD/1:00 PM

Euro/USA 1.1632  UP     .0037 or 37 basis points

USA/Japan: 105.82 DOWN 1.028 OR YEN UP 103  basis points/

Great Britain/USA 1.2785 UP .0056 POUND UP 56  BASIS POINTS)

Canadian dollar DOWN 22 basis points to 1.3425

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY: AT 7.0171    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.0258  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.8484 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at +02%

 

Your closing 10 yr US bond yield DOWN 1 IN basis points from THURSDAY at 0.58 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1,23 DOWN 1 in basis points on the day

Your closing USA dollar index, 94.43 DOWN 27  CENT(S) ON THE DAY/1.00 PM/

 

Your closing bourses for Europe and the Dow along with the USA dollar index closing and interest rates for FRIDAY: 12:00 PM

London: CLOSED DOWN 87.62  .141%

German Dax :  CLOSED DOWN 215.33 POINTS OR 2,02%

 

Paris Cac CLOSED DOWN 77,33 POINTS 1.54%

Spain IBEX CLOSED DOWN 90.20 POINTS or 1.20%

Italian MIB: CLOSED DOWN 379.19 POINTS OR 1,85%

 

 

 

 

 

WTI Oil price; 40.73 12:00  PM  EST

Brent Oil: 42,91 12:00 EST

USA /RUSSIAN /   RUBLE FALLS:    71.73  THE CROSS HIGHER BY 0.28 RUBLES/DOLLAR (RUBLE LOWER BY 28 BASIS PTS)

 

TODAY THE GERMAN YIELD RISES  TO –.45 FOR THE 10 YR BOND 1.00 PM EST EST

END

 

This ends the stock indices, oil price, currency crosses and interest rate closes for today 4:30 PM

Closing Price for Oil, 4:00 pm/and 10 year USA interest rate:

WTI CRUDE OIL PRICE 4:30 PM :  41.22//

 

 

BRENT :  43.27

USA 10 YR BOND YIELD: … 0.58..down one basis point…

 

 

 

USA 30 YR BOND YIELD: 1.23..down 0 basis points..

 

 

 

 

 

EURO/USA 1.1642 ( UP 47   BASIS POINTS)

USA/JAPANESE YEN:105.97 DOWN .847 (YEN UP 85 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 94.41 DOWN 29 cent(s)/

The British pound at 4 pm   Britain Pound/USA: 1.2787 UP 58  POINTS

 

the Turkish lira close: 6,8469

 

 

the Russian rouble 71.67   down 0.23 Roubles against the uSA dollar.( down 23 BASIS POINTS)

Canadian dollar:  1.3419 DOWN 15 BASIS pts

 

German 10 yr bond yield at 5 pm: ,-0.45%

 

The Dow closed DOWN 187.51 POINTS OR 0.70%

 

NASDAQ closed DOWN 98.24 POINTS OR 0.94%

 


VOLATILITY INDEX:  25.78 CLOSED DOWN .30

LIBOR 3 MONTH DURATION: 0.244%//libor dropping like a stone

 

USA trading today in Graph Form

Stocks Sink As Silver Soars To Best Week In 40 Years

FANG Stocks dared to have their first consecutive weekly close lower since the March collapse…

Source: Bloomberg

Which pushed Nasdaq to its second weekly loss in a row and underperformance this week… After Monday’s meltup, it was downhill (and remember this has typically been the pattern post VIX options expiry)…

Notably, Nasdaq has reversed at a key historical level of richness relative to the S&P…

Source: Bloomberg

Perfectly testing and failing at the dotcom peak…

Source: Bloomberg

AAPL was clubbed like a baby seal…

AMZN was monkeyhammered late in the week (again) but managed to cling to green on the week…

TSLA was twatted…

Boeing didn’t help as emergency FAA headlines hammered it…

Is this the start of the herd move out of the high-flyers?

And as stocks were sold, ‘safe-havens’ like bonds, bullion, and bitcoin (and ethereum) were bid…

The long-end of the yield curve dropped around 10bps on the week with the short-end flat…

Source: Bloomberg

10Y Yield back near intraday lows

Source: Bloomberg

Cryptos screamed higher this week dominated by Ethereum…

Source: Bloomberg

Pushing the biggest altcoin to February highs…

Source: Bloomberg

Gold gained notably on the week with spot back above $1900, back near 2011 record highs…

But while gold gained significantly, this week saw silver surge over 17% to $23…

Its best week in 40 years (since The Hunt Brothers tried to corner the silver market)…

Source: Bloomberg

And investors appeared to reject the USDollar (falling for the 4th straight week)…

Source: Bloomberg

Sending it lower for the year…

Source: Bloomberg

Precious metals dominated the week in commodity land with copper stalling and crude sliding as the week progressed…

Source: Bloomberg

Dr. Copper has stopped signaling a resurgence in growth, stalling at key levels once again…

Source: Bloomberg

Silver is now outperforming gold YTD…

Source: Bloomberg

Finally, WTF is going on here… (stocks at record highs, bond yields at record lows)…

Source: Bloomberg

And one has to ask what the message of the market is…

Source: Bloomberg

Are the Sino-US tensions raising doubts about the dollar and sending the world into ‘real’ money?

And now your more important USA stories which will influence the price of gold/silver

MARKET TRADING//USA

a)Market trading/THIS MORNING/GOLD TRADING/USA

As Gold Soars Near Record Highs, USDollar Tumbles To Six-Month Lows

It’s probably nothing but as precious metals are seeing a dramatic bid, the USDollar is tumbling to its lowest since January…

Source: Bloomberg

Notably, since the March surge in demand for dollars (and dump in gold), the green back has been under pressure and precious metals have soared…

As Johnny Bravo recently noted:

“The reason that governments don’t like gold is probably for the same reason that kids don’t like chaperones at the senior prom. Because the chaperones are there to keep the kids in line and prevent them from doing things they really shouldn’t be doing. And that’s really what gold does. It’s kind of like a chaperone for government politicians because it keeps them honest. Because if you have real money, and government wants to spend money on programs, it needs to collect that money in taxes. And that generally puts a brake on a lot of programs because the public doesn’t want to pay.

Gold stands in the way, because you can print paper out of thin air. But gold can’t be printed into existence; it needs to be mined. And if we’re on a gold standard, and gold is money, then the government needs real money. And since it doesn’t have the ability to make it, it has to collect it in taxes before it can spend it back into circulation.”

Is the world losing faith in fiat?

END

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

More disappointments in both USA manufacturing and service surveys

(zerohedge)

US Manufacturing & Services Surveys Disappoint In Early July Look

Having rebounded dramatically in May and June, US PMI surveys for manufacturing and services were expected to continue their resurgence into expansion territory in preliminary July data.

  • Markit US Manufacturing PMI MISS 51.3 vs 52.0 exp vs 49.8 prior
  • Markit US Services PMI MISS 49.6 vs 51.0 exp vs 47.9 prior

And as the chart below shows, macro surprise data is starting to lag again as hope-filled expectations are missed…

Source: Bloomberg

The Composite index rebounded to 50.0…

Commenting on the flash PMI data, Chris Williamson, Chief Business Economist at IHS Markit, said:

While the stabilisation of business activity in July is welcome news, the lack of growth is a disappointment. Moreover, a renewed acceleration in the rate of loss of new business raises concerns that demand is faltering. Many companies, notably in consumer-facing areas of the service sector, linked falling sales to re-imposed lockdowns.

Firms’ costs have meanwhile spiralled higher, surging at the steepest rate for seven years in the service sector, in part due to the additional burdens of safeguarding against the coronavirus.

“Thankfully, the job-shedding seen over the prior four months has come to an end, but companies remain wary of taking on more staff given the weakness of current order books. Future expectations have improved, however, with optimism rising to the highest for over a year, as increasing numbers of firms see better times ahead. Hopes are qualified, however, by uncertainty over the coronavirus outbreak and the political environment as November’s election draws closer.

Will bad news be good news for stocks? Or does it have to get worse first?

iii) Important USA Economic Stories

Another one: we start to sit shiva for Ann Taylor before sundown tomorrow

(RetailDrive)

“They Built Their Own Coffin” – How Ann Taylor Parent Ascena Went Bankrupt

By RetailDive,

Ann Taylor and Lane Bryant owner Ascena last year pushed back on the notion that it was anywhere near bankruptcy — its interim board chief in October pointed to its “large iconic brands and a business with significant liquidity” — and it doubled down on that as recently as March.

That didn’t last.

The company is restructuring under Chapter 11, filing documents on Thursdain the U.S. Bankruptcy Court for the Eastern District of Virginia that include a restructuring support agreement with more than 68% of its secured term lenders, $150 million in a new term loan from existing lenders and a plan “to significantly reduce debt” by about $1 billion, according to a company press release.

It won’t emerge unscathed. After ditching its discount banners last year, (liquidating Dressbarn and all its 544 stores and selling a majority stake in Maurices), Ascena is now further dismantling its stable. That includes selling its Catherine’s plus-size banner to online plus retailer City Chic, closing all Catherine’s stores in the process. Stores run by its Justice tween brand will close, probably a significant number, according to GlobalData Retail Managing Director Neil Saunders, considering the brand’s troubling “roller coaster” performance.

While the overall number of store closures across any of the brands is yet to be determined, the company seems to be leaving its Ann Inc. premium brands — Ann Taylor, Loft and Lou & Grey — and its Lane Bryant plus brand more or less intact, according to information posted to its website.

Any hope of turning around its already struggling business appears to have been dashed by the COVID-19 pandemic, which in the first quarter forced its stores shut and swept away demand as people need and want fewer clothes in a wavering, work-from-home economy. It’s been bleak for Ascena, as it has for all nonessential retailers, especially those selling apparel — and the recovery as stores have reopened has been feeble.

But its troubled story is less about the pandemic and more about how it decided to go big in the last decade as clothing sales growth steadily declined. Well before COVID-19 shook the retail industry, sales at all of Ascena’s banners steadily tumbled. The company notched an overall net sales decline in 2019, $5.49 billion compared to $5.57 billion in 2018, and an operating loss that widened to $681.4 million in 2019 from $88.9 million in 2018. Operating losses in the last half year were $125.8 million, and it was weighed down by more than $1.2 billion of long-term debt, according to GlobalData Retail.

iv) Swamp commentaries)

This is why you cannot have mail in votes..this is bound to happen many times over

(zerohedge)

Democratic Ex-Congressman Charged With Rigging Votes, Bribery, Falsifying Records And Obstruction

A federal grand jury has indicted former Pennsylvania Senator Michael J. “Ozzie” Myers on charges that the Philadelphia Democrat committed election fraud for his alleged role in a ballot box-stuffing scheme in 2014, 2015 and 2016, according to CBS Philly.

 

Michael J. “Ozzie” Myers (D)

Myers, 77, is charged with conspiring with and bribing another Democrat – former Judge Domenick J. DeMuro, who pleaded guilty in May to accepting the money in the ballot box scheme while he served as a judge of elections. DeMuro’s responsibilities included overseeing a polling place during voting.

DeMuro, 73, charged between $300 and $5,000 per election to rig the votes for Myers, who in turn charged his clients “consulting fees” which were used to pay off multiple Election Board Officials. The disgraced judge would illegally add votes for certain candidates – many of whom paid for the votes, and others who Myers favored for other reasons. According to this week’s indictment.

“Free and fair elections are the hallmark of our system of government,” said Acting Assistant Attorney General Brian C. Rabbitt of the DOJ’s Criminal Division. “The Department of Justice has zero tolerance for corruption of the electoral process, and we will spare no effort in investigating and prosecuting those who would seek an unfair advantage at the polls by bribing state and local officials responsible for ensuring the fairness of our elections.”

In a Thursday statement, US Attorney William M. McSwain said “If only one vote has been illegally rung up or fraudulently stuffed into a ballot box, the integrity of that entire election is undermined,” adding “Votes are not things to be purchased and democracy is not for sale.”

Myers had previously been convicted of bribery and conspiracy for taking money from FBI agents who posed as Arab sheiks in the 1970s “Abscam” scandal, according to CBS Philly.

A former ward leader and former cargo checker on the Philly waterfront, he was captured on tape saying a $15,000 bribe was not sufficient.

Myers was expelled from Congress in 1980 and served more than a year in federal prison before his release in 1985. –CBS Philly

END

 

v) King report/Courtesy of Chris Powell of GATA which includes the major swamp stories.

Mnuchin asserted that there will be no payroll tax cut in the Phase 4 coronavirus stimulus package.  Team Jared won again!  Given cover, Senate Majority Leader Mitch McConnell also joined the no payroll tax cut bandwagon.  Democrats were delighted.  They got a major concession without ceding anything!

Payroll tax cut won’t be included in fourth coronavirus bill, Mnuchin says

https://www.foxbusiness.com/politics/no-payroll-tax-cut-fourth-coronavirus-bill-mnuchin

Mnuchin says GOP plan for unemployment extension will be based on ’70% wage replacement’

  • The $600 a week enhanced unemployment benefit expires at the end of the month…
  • The Treasury secretary also said a payroll tax holiday, which President Donald Trump has repeatedly pushed for, “won’t be in the base bill.”

Mnuchin noted thatthe administration would consider an additional relief packageif the spending in the developing plan does not go far enough to combat the crisis.

https://www.cnbc.com/2020/07/23/coronavirus-stimulus-gop-unemployment-plan-would-have-70percent-wage-replacement.html

The draft Senate Republican plan was expected to include direct payments to Americans totaling $1,200 for individuals and $2,400 for couples, according to a senior Senate aide…

https://www.reuters.com/article/us-health-coronavirus-usa-congress/draft-republican-plan-for-us-coronavirus-relief-has-more-direct-payments-aide-idUSKCN24O1PN

Oxford epidemiologist says COVID herd immunity threshold may be ‘much lower’ than earlier estimates – Exposure to other coronaviruses ‘could have played a role’ – Sunetra Guptaargues

    If correct could mean the pandemic may be closer to ending than many experts now assert

https://justthenews.com/politics-policy/coronavirus/oxford-epidemiologist-says-covid-herd-immunity-threshold-may-be-much

Portland mayor tear-gassed by federal agents, riot declared

Wheeler had joined protesters downtown earlier in the evening for a listening session… he was booed, told to resign, given a list of demands and tear-gassed by federal agents…

https://www.foxnews.com/us/portland-mayors-security-teams-scuffles-with-protesters-after-listening-session

@MrAndyNgo: @tedwheeler [Portland Mayor] says, “I saw nothing that provoked this response” when asked about his thoughts on federal law enforcement deploying tear gas. The building had been set on fire and rioters were throwing explosives.

Fox News: Three federal officers in Portland could be permanently blind due to lasers from protesters

Gun-Toting Kids as Young as 10 Car-Jack Over A Dozen Vehicles in Chicago

The group of kids, in two incidents, have discharged weapons in broad daylight as they approached their victims… some Democratically controlled cities are refusing to jail minors as police departments are being defunded, which allows criminal gangs to employ kids to steal cars…

https://www.zerohedge.com/political/inner-city-chaos-armed-gang-children-car-jack-over-dozen-vehicles-chicago

Downtown Seattle jail to close, plans for inmates unclear

The mission, spearheaded by County Executive Dow Constantine, aims to switch jails to programs for “prevention, diversion, rehabilitation, and harm reduction,” according to a memo outlining the closure plans that was sent Tuesday…Much of the plan to shut down the county jail is vague, but the memo said they’re aiming to eliminate all youth offender incarcerations by no later than 2025

https://www.q13fox.com/news/downtown-seattle-jail-to-close-plans-for-inmates-unclear

For young African-Americans, access to good schools is crucial for building a better future. Thomas Sowell demonstrates that charter schools are part of the solution, not the problem. https://t.co/a0RhJXvYTm

Joe Biden: ‘People’ don’t distinguish between Chinese and other Asians –“He’s blaming everything on the Chinese… People don’t make a distinction, as you well know, from a South Korean and someone from Beijing… They make no distinction, it’s Asian. And he’s using it as a wedge.”  https://trib.al/2ILWXZl

Cato Institute: Nearly two-thirds—62%—of Americans say the political climate these days prevents them from saying things they believe because others might find them offensive… 31% of Americans and 50% of “strong liberals” believe that a co-worker who donates money to Trump should be fired.  22% of Americans and 36% of “strong conservatives” believe Biden donors should be fired…

https://www.cato.org/publications/survey-reports/poll-62-americans-say-they-have-political-views-theyre-afraid-share#liberals-are-divided-political-expression

What does the above survey imply about political-related polls?

@Rasmussen_Poll: FOR – July 23, 2020 – Backlash Building ???

National Likely Voter (LV) Job Approval of @POTUS – 49%; Men LV App – 50%; Women LV App – 48%; GOP LV App – 80%; Dem LV App – 30% !; Ind LV App – 37%; White LV App – 49%; Black Total LV App – 43%; Other Non-White Total LV App – 55%

https://twitter.com/Rasmussen_Poll/status/1286385634584735745

Trump’s problem now is with Independents.  But, that’s good news for DJT, who is maxed out with likely Republican and Democratic voters.  He has fertile ground to mine votes with Independents that do NOT like him; but they are reluctant to vote for the equally unpleasant alternative.  The Independent vote will depend on how Biden performs (particularly debates) between now and the election as well as the scope and breadth of indictments against Team Obama.

Source says FBI agent used 2016 briefing on election interference as ‘cover’ to question Trump team – The document, obtained by Fox News, was declassified by Director of National Intelligence John Ratcliffe and transmitted to Capitol Hill… The source went on to tell Fox News that the briefing was used as “a cover to listen for any remarks” by Trump or others about the Russian federation

[Is someone prepping the nation for coming indictments?]

https://www.foxnews.com/politics/source-says-fbi-agent-used-2016-briefing-on-election-interference-as-cover-to-question-trump-team

Last night Trump canceled the Jacksonville, Florida portion of the RNC Convention due to Covid.  With his ascent in the polls, DJT does not need the media bashing that would occur at the Convention parcel.

Ohio man in custody after kneeling on crying White child’s neck, praising Black Lives Matter

The photo shows a man, who has since been identified as 20-year-old Isaiah Jackson, with his knee on the neck of a crying white toddler who is only wearing a diaperAnother person holds the child’s hands behind his back. The banner across the photo read: “Blm now mf.”… According to WGCL-TV, Cedar Grove High School Interrelated Teacher Brian Papin commented beneath the photo, writing: “Again! Your [sic] doing it wrong! One knee on the center of the back one one [sic] the neck and lean into it until death! You saw the video! Get it right or stop f***ing around!” [Where is the MSM on this?]

https://www.fox35orlando.com/news/ohio-man-in-custody-after-kneeling-on-crying-white-childs-neck-praising-black-lives-matter.amp

Dr. Fauci’s ceremonial 1st pitch at the Yankee-National’s opener last night was wildly inaccurate.

https://twitter.com/CurtisHouck/status/1286436310132109313

end

Let us close out the week with this offering courtesy of Greg Hunter

Pompeo Rips CCP, Covid Spike Scam, Gold Rising

By Greg Hunter On July 24, 2020

Secretary of State Mike Pompeo ripped the Chinese Communist Party (CCP) in a speech late Thursday afternoon.  He dressed down party leaders on everything from the destructive virus released from Wuhan concentration camps and stealing intellectual property with operations in Houston, Tx.  You might remember Attorney General Barr gave a speech recently warning about the threats from China and admonishing big U.S. tech companies bowing down to the CCP.  Whatever so-called trade deal you thought the U.S. had with China, it is over.  This is signaling bad economic times at least and all-out war at worst.

The mainstream media (MSM) is reporting that Covid cases and deaths are spiking anew, but is that true?  If the rest of the country is reporting numbers anything like the numbers in Florida, it’s a total scam.  Florida health officials are having a hard time explaining why 100% of the tests are coming back positive and how people who die in motorcycle accidents are counted as Covid deaths.  Oh, and a Yale epidemiologist says you could save lots of lives if you just give them Hydroxychloroquine (and Zinc), but you don’t hear that on the evil MSM.

Gold is about $30 from all-time highs.  Why?  Is it because it has already hit all-time highs in every other currency in the world?  Is it because the debt creation at the Fed and Congress has gone parabolic?  Is it because we are headed for a Greater Depression?  I am going to go with all of the above.

Join Greg Hunter as he gives these stories and more in the Weekly News Wrap-Up.

-END-

Well that is all for today

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One comment

  1. Paul Heron · · Reply

    Harvey, I read you every day but please please please take off all the stale, months old reports like the JPM trio all your avid readers are sick of scrolling over……otherwise, great job and thanks…Paul

    Like

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