AUGUST 11//HUGE RAID//BANKERS CALL ON OFFICIAL SECTOR (BIS) FOR A MASSIVE ATTACK ON OUR TWO PRECIOUS METALS// GOLD DOWN xx //SILVER DOWN XXX//

GOLD:$1,937.40  DOWN $92.40  The quote is London spot price (cash market)

 

 

 

 

 

Silver:$26.21// DOWN 3.25   London spot price ( cash market)

 

 

DONATE

Click here if you wish to send a donation. I sincerely appreciate it as this site takes a lot of preparation.

 

Closing access prices:  London spot

i)Gold : $1910.00  LONDON SPOT  4:30 pm

 

ii)SILVER:  $24.78//LONDON SPOT  4:30 pm

CLOSING FUTURES PRICES:  KEY MONTHS

 

AUGUST GOLD:   $1932.50  CLOSE  1::30 PM  SPREAD SPOT/FUTURE AUG  (BACKWARD  $5.10)

OCT GOLD:  $2038.90  CLOSE 1.30 PM//   SPREAD SPOT/FUTURE OCT /:   : $1.50//CONTANGO//BELOW NORMAL CONTANGO $1.50

 

 

DEC. GOLD  $2046.20   CLOSE 1.30 PM      SPREAD SPOT/FUTURE DEC   $8.80   ($ BELOW NORMAL CONTANGO)

 

 

CLOSING SILVER FUTURE MONTH

 

SILVER SEPT COMEX CLOSE;   $26.20…1:30 PM.//SPREAD SPOT/FUTURE SEPT//  :  1 CENT  PER OZ  ( BACKWARDS)

SILVER DECEMBER  CLOSE:     $26.38  1:30  PM SPREAD SPOT/FUTURE DEC.       : 17  CENTS PER OZ  ( 5 CENTS ABOVE NORMAL CONTANGO)

 

XXXXXXXXXXXXXXXXXXXXXXXXX

For the past few decades, we have been experiencing constant raids orchestrated by our bankers, and these raids are criminal but they are given a green light by the regulators as these operations are official sanctions in nature (through the BIS) and are always aided by the bankers are they front run the scheme.

There are three reasons why bankers raid:

  1. when the President or Chairman of the Fed speak they always raid.  Gold must not rise while these guys are speaking
  2.  on options expiry.  There are 3 expiry issues :

a) equity issues and the only ones we are concerned with is the GLD and SLV options

b) comex gold/silver options expiry..and that occurs 4 trading days before first day notice.

c) London gold/silver//OTC expiry and expiry ends on first day notice:  10 am est.

especially b and c) occur always with much force and tenacity every month driving our precious metals down  and in some cases decimate their pricing.

The reason for banks whacking gold/silver during the last week of the month is to ensure that underwritten options (underwritten by the banks) become worthless. This is also criminal!

3. on FOMC jobs report on the first Friday of every month.

The whacking on the jobs report does not occur with the same frequency as options expiry but when it does occur it too can be very forceful  in price. (The selling of naked contracts has no concern for profit..they are only concerned in lowering the price of the metals).

Reason for the whacking:  speculators have built up enormous long positions which of course is countered by our banker friends huge short positions. The raid is done to lessen speculators longs and also to provide an opportunity for the bankers to cover some their short positions.

In this report Alasdair Macleod has concluded that the total short position of gold on Comex and LBMA is north of 200 billion dollars.

Modus operandi:

the crooks send signals as to when a raid is forthcoming.  It could either be a weak silver price when gold is very strong. If we witness this, say, on a Thursday, then Friday is the raid day,  If both silver and gold are strong, then it is weak trading of equity gold/silver shares one day prior to raid which sends the signal. The raid on Friday was the latter.

(The crooks also use the liquidation of spreading contracts on the comex to aid in options expiry. I have given a separate explanation of this below).

This brings us to Friday’s raid.  I think most of the gold bugs knew on Thursday that a raid was coming and I certainly telegraphed that to my friends. The gold/silver equity shares were very weak despite a strong precious metals price.  We knew that FOMC was next day, so the odds for a raid was close to 100%

The raid caused much harm in price but the crooks were only interested in removing longs from their ownership. As you will see from the data below below , the bankers failed miserably as net longs refused to budge. Demand for gold and silver is just too strong.

This morning, our bankers threw billions of dollars worth of non backed paper to suppress the price. Should be an epic battle today.

 

COMEX DATA

 

 

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

receiving today: 708/2359

issued: 33

EXCHANGE: COMEX
CONTRACT: AUGUST 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 2,024.400000000 USD
INTENT DATE: 08/10/2020 DELIVERY DATE: 08/12/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
072 C GOLDMAN 1333 5
072 H GOLDMAN 383
104 C MIZUHO 167
118 H MACQUARIE FUT 3
132 C SG AMERICAS 573
135 H RAND 2
159 C ED&F MAN CAP 1
226 C DIRECT ACCESS 1
323 C HSBC 12
332 H STANDARD CHARTE 62
355 C CREDIT SUISSE 14
365 C ED&F MAN CAPITA 1
657 C MORGAN STANLEY 56
657 H MORGAN STANLEY 297
661 C JP MORGAN 33 456
661 H JP MORGAN 252
686 C INTL FCSTONE 1 2
690 C ABN AMRO 231 31
700 C UBS 59
709 C BARCLAYS 185
709 H BARCLAYS 5
730 C PTG DIVISION SG 1
732 C RBC CAP MARKETS 6
737 C ADVANTAGE 2 29
800 C MAREX SPEC 183 14
880 C CITIGROUP 8
880 H CITIGROUP 302
905 C ADM 8
____________________________________________________________________________________________

TOTAL: 2,359 2,359
MONTH TO DATE: 46,280

NUMBER OF NOTICES FILED TODAY FOR  AUGUST CONTRACT: 2359 NOTICE(S) FOR 235,900 OZ  (7.334 tonnes)

 

TOTAL NUMBER OF NOTICES FILED SO FAR:  46,280 NOTICES FOR 4,628,000 OZ  (143.95 TONNES)

 

 

SILVER

 

FOR AUGUST

 

 

16 NOTICE(S) FILED TODAY FOR 80,000  OZ/

total number of notices filed so far this month: 1147 for 5.735 MILLION oz

 

BITCOIN MORNING QUOTE  $11,686  DOWN 286

 

BITCOIN AFTERNOON QUOTE.: $11,409 DOWN 483

 

GLD AND SLV INVENTORIES:

WITH GOLD DOWN $92.40 AND NO PHYSICAL TO BE FOUND ANYWHERE:

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

NO CHANGES IN GOLD INVENTORY AT THE GLD/// //

 

 

 

 

GLD: 1,262/12 TONNES OF GOLD//

 

 

WITH SILVER DOWN $3.25 CENTS TODAY: AND WITH NO SILVER AROUND:

A HUGE CHANGE IN SILVER INVENTORY AT THE  SLV: A DEPOSIT OF 2.141 MILLION OZ//

 

 

RESTING SLV INVENTORY TONIGHT:

 

SLV: 571,632  MILLION OZ./

 

 

XXXXXXXXXXXXXXXXXXXXXXXXX

 

 

 

Let us have a look at the data for today

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI FELL BY A STRONG SIZED 1575 CONTRACTS FROM 207,490 DOWN TO 205489, AND FURTHER FROM OUR NEW RECORD OF 244,710, (FEB 25/2020. THE LOSS IN  OI OCCURRED DESPITE OUR STRONG $1.87 GAIN IN SILVER PRICING AT THE COMEX. IT SEEMS THAT THE LOSS IN COMEX OI IS PRIMARILY DUE TO A FAILED  BANKER SHORT COVERING PLUS A STRONG EXCHANGE FOR PHYSICAL ISSUANCE, MINIMAL LONG LIQUIDATION, ACCOMPANYING  A ZERO DECREASE IN SILVER OZ. STANDING AT THE COMEX FOR AUGUST.  WE HAD A TINY NET LOSS IN OUR TWO EXCHANGES OF 575 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:   SEP 950 DEC:  50 FOR ZERO ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  1000 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 1000 EFP CONTRACTS TRANSLATES INTO 5.000 MILLION OZ  ACCOMPANYING:

1.THE 187 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

86.470 MILLION OZ FINAL STANDING IN JULY.

6.400 MILLION OZ INITIAL STANDING IN AUGUST

 

MONDAY, 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 187 CENTS ).. AND, OUR OFFICIAL SECTOR/BANKERS  WERE UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE ANY SILVER LONGS FROM THEIR POSITIONS. THE CONSIDERABLE LOSS AT THE COMEX WAS ACCOMPANIED BY : i)  A STRONG ISSUANCE OF EXCHANGE FOR PHYSICALS 2) A ZERO DECREASE IN SILVER OZ STANDING  FOR AUGUST,  A FAILED BANKER SHORT COVERING  AND 4) MINIMAL LONG LIQUIDATION AS  WE DID HAVE A SMALL NET LOSS OF 509 CONTRACTS OR 2.875 MILLION OZ ON THE TWO EXCHANGES! YOU CAN BET THE FARM THAT OUR BANKERS  ARE DESPERATE TO LIQUIDATE THEIR HUGE SHORT POSITIONS IN SILVER..AND THUS THE REASON FOR OUR MASSIVE RAID THIS MORNING!!

 

SPREADING OPERATIONS/NOW SWITCHING TO SILVER

 

 

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 SILVER  AS WE HEAD TOWARDS THE NEW ACTIVE FRONT MONTH OF SEPT.

 

 

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 GOLD..AND WE WILL NOW MORPH INTO AN ACCUMULATION PHASE OF SPREADING CONTRACTS FOR SILVER.  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 SILVER 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 AUGUST HEADING TOWARDS THE ACTIVE DELIVERY MONTH OF SEPT FOR SILVER:

 

YOU WILL ALSO NOTICE THAT THE COMEX OPEN INTEREST  STARTS TO RISE IN THIS NON ACTIVE MONTH OF AUGUST. BUT SO IS THE OPEN INTEREST OF SPREADERS. THE OPEN INTEREST IN SILVER WILL CONTINUE TO RISE UNTIL ONE WEEK BEFORE FIRST DAY NOTICE OF AN UPCOMING  ACTIVE DELIVERY MONTH (SEPT), 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

AUGUST

 

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

8373 CONTRACTS (FOR 7 TRADING DAY(S) TOTAL 8373 CONTRACTS) OR 41.865 MILLION OZ: (AVERAGE PER DAY: 1196 CONTRACTS OR 5.9807 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF AUGUST: 41.865 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 4.32% 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:          1,313.25 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                               133.95 MILLION OZ/ (EXCHANGE FOR PHYSICALS STARTING TO RISE EXPONENTIALLY AGAIN)

AUGUST EXP                         41.865  MILLION OZ (EXCHANGE FOR PHYSICALS INCREASING)

 

 

 

RESULT: WE HAD A CONSIDERABLE SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 1575, DESPITE OUR STRONG 187 CENT GAIN  IN SILVER PRICING AT THE COMEX ///MONDAYTHE CME NOTIFIED US THAT WE HAD A STRONG SIZED EFP ISSUANCE OF 1000 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 LOST A SMALL SIZED OI CONTRACTS ON THE TWO EXCHANGES:  575 CONTRACTS (DESPITE OUR  $1.87 GAIN IN PRICE)//

 

 

THE TALLY//EXCHANGE FOR PHYSICALS

i.e 1000 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A CONSIDERABLE SIZED DECREASE OF 1575 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED DESPITE A HUGE 187 CENT GAIN IN PRICE OF SILVER/AND A CLOSING PRICE OF $29.44 // MONDAY’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 OVER 1 BILLION oz i.e. 1.030 BILLION OZ TO BE EXACT or 147% of annual global silver production (ex Russia & ex China).

FOR THE NEW AUGUST  DELIVERY MONTH/ THEY FILED AT THE COMEX: 16 NOTICE(S) FOR 80,000 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 WAS 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 86.470 million oz//AUGUST 6.400 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 ROSE BY A SMALL SIZED 509 CONTRACTS TO 551,018 AND CLOSER TO  OUR NEW RECORD (SET JAN 24/2020) AT 799,541 AND  PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110.

THE TINY GAIN OF COMEX OI OCCURRED DESPITE OUR STRONG RISE IN PRICE  OF $11.45 /// COMEX GOLD TRADING// MONDAY//WE  HAD A FAILED BANKER SHORT COVERING, A GOOD SIZED INCREASE IN GOLD TONNAGE STANDING AT THE COMEX FOR AUGUST, ALONG WITH ZERO LONG LIQUIDATION ACCOMPANYING A SMALL EXCHANGE FOR  PHYSICAL ISSUANCE. THIS ALL HAPPENED WITH OUR STRONG GAIN IN PRICE OF $11.45. 

 

 

WE HAD A VOLUME OF 0    4 -GC CONTRACTS//OPEN INTEREST  53

 

WE GAINED A SMALL SIZED 1797 CONTRACTS  (5,589 TONNES) ON OUR TWO EXCHANGES.

 

E.F.P. ISSUANCE

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A SMALL SIZED 1288 CONTRACTS:

CONTRACT .; AUG 0 AND OCT: 0 DEC: 1147; JUNE: 141  ALL OTHER MONTHS ZERO//TOTAL: 6201.  The NEW COMEX OI for the gold complex rests at 551,018. 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 EXCHANGE 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 SMALL SIZED INCREASE IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 1797 CONTRACTS: 509 CONTRACTS INCREASED AT THE COMEX AND 1288 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 1797 CONTRACTS OR 5.589 TONNES. MONDAY, WE HAD A STRONG GAIN OF $11.45 IN GOLD TRADING……

AND WITH THAT GAIN IN  PRICE, WE HAD A SMALL SIZED GAIN IN  TOTAL/TWO EXCHANGES GOLD TONNAGE OF 5.589 TONNES!!!!!! THE BANKERS/OFFICIAL SECTOR  WERE LOATHE TO SUPPLY SHORT GOLD COMEX PAPER. THE BANKERS WERE UNSUCCESSFUL IN THEIR ATTEMPT TO LOWER GOLD’S PRICE (IT ROSE $11.45) AS IT SEEMS THAT OUR BANKER FRIENDS WERE NOT HAPPY AS WE HAD A  FAILED BANKER SHORT COVERING MONDAY//THE BANKERS REGROUPED AND THEN INITIATED ANOTHER MASSIVE RAID ON GOLD/SILVER THIS MORNING AS THE BANKS FRONT RUNNED OUR OFFICIAL SECTOR BOMBING ORCHESTRATED BY THE BIS.

 

 

 

 

 

 

 

 

CALCULATIONS ON GAIN/LOSS ON OUR TWO EXCHANGES:

WE HAD A SMALL SIZED ISSUANCE IN EXCHANGE FOR PHYSICALS  (1288) ACCOMPANYING THE SMALL SIZED GAIN IN COMEX OI  (509 OI): TOTAL GAIN IN THE TWO EXCHANGES:  1797 CONTRACTS. WE NO DOUBT HAD 1 )A FAILED BANKER SHORT COVERING, 2.)A GOOD INCREASE IN GOLD TONNAGE  STANDING AT THE GOLD COMEX FOR THE FRONT AUGUST MONTH,  3) ZERO LONG LIQUIDATION; 4) SMALL COMEX OI GAIN AND 5) SMALL EXCHANGE FOR PHYSICAL ISSUANCE  AND  …ALL OF THIS WAS COUPLED WITH OUR VERY STRONG GAIN IN GOLD PRICE TRADING//MONDAY//$11.45.

 

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.

 

 

 

HISTORICAL ACCUMULATION OF EXCHANGE FOR PHYSICALS IN 2020 INCLUDING TODAY

AUGUST

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF AUGUST : 14,707, CONTRACTS OR 1,470,700, oz OR 45.75 TONNES (7 TRADING DAY(S) AND THUS AVERAGING: 2101 EFP CONTRACTS PER TRADING DAY

 

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 7 TRADING DAY(S) IN  TONNES: 45.75 TONNES

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

THUS EFP TRANSFERS REPRESENTS 45.75/3550 x 100% TONNES =1.28% 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   3,305.93  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;                       313.09 TONNES ..(EXCHANGE FOR PHYSICALS REVERSE COURSE AND ARE NOW INCREASING!)

AUGUST TOTAL EFP ISSUANCE;                 45.75 TONNES

 

 

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, FELL BY A CONSIDERABLE SIZED 1575 CONTRACTS FROM 207,064 DOWN TO 205,489 AND FURTHER FROM 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 CONSIDERABLE SIZED LOSS IN OI SILVER COMEX WAS PRIMARILY DUE TO;   1)   A FAILED BANKER SHORT COVERING , 2) A STRONG ISSUANCE OF EXCHANGE FOR PHYSICALS (SEE BELOW), 3) A ZERO INCREASE IN SILVER OZ  STANDING AT THE SILVER COMEX FOR AUGUST,  AND  4) MINIMAL LONG LIQUIDATION 

 

EFP ISSUANCE 1000 CONTRACTS

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

 SEPT: 950 AND DEC. 50 AND  ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1000 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE  COMEX OI LOSS  OF 1575 CONTRACTS TO THE 1000 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A SMALL LOSS OF 575 OPEN INTEREST CONTRACTS FROM OUR TWO EXCHANGES. THUS IN OUNCES, THE LOSS ON THE TWO EXCHANGES 2.875 MILLION  OZ, OCCURRED DESPITE OUR HUGE 187 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)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED DOWN 38.96 POINTS OR 1.15%  //Hang Sang CLOSED UP 513.25 POINTS OR 2.11%   /The Nikkei closed UP 420.30 POINTS OR 1.88%//Australia’s all ordinaires CLOSED UP .40%

/Chinese yuan (ONSHORE) closed UP  at 6.9447 /Oil UP TO 42,841 dollars per barrel for WTI and 45.60 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED UP // LAST AT 6.9447 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.9380 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 BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER 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 ROSE BY A SMALL SIZED 509 CONTRACTS TO 551,708 MOVING CLOSER TO  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 TINY  COMEX INCREASE OCCURRED WITH OUR VERY STRONG GAIN OF $11.45 IN GOLD PRICING /MONDAY’S COMEX TRADING//). WE ALSO HAD A SMALL EFP ISSUANCE (1288 CONTRACTS),.  THUS, THE ONLY EXPLANATION IS THAT WE HAD 1) ANOTHER FAILED BANKER SHORT COVERING AT THE COMEX AND 2)  ZERO LONG LIQUIDATION AND 3)  STRONG INCREASE IN GOLD OZ  STANDING AT THE GOLD COMEX//AUGUST DELIVERY MONTH (SEE BELOW) …  AS WE ENGINEERED A SMALL GAIN ON OUR TWO EXCHANGES OF 1797 CONTRACTS DESPITE GOLD’S VERY STRONG GAIN IN PRICE.  WE HAVE LATELY WITNESSED THE EXCHANGE FOR PHYSICALS ISSUED BEING SMALL….. AS IT JUST TOO COSTLY FOR THEM TO CONTINUE SERVICING THE COSTS OF SERIAL FORWARDS CIRCULATING IN LONDON. 

 

 

 

(SEE BELOW)

 

 

WE  HAD 0    4 -GC VOLUME//open interest REMAINS AT 53

 

 

 

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 1288 EFP CONTRACTS WERE ISSUED:  AUG  0 , OCT: DEC 1147; JUNE// ’21 141 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 1288 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: 1797 TOTAL CONTRACTS IN THAT 1288 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A SMALL SIZED 509 COMEX CONTRACTS.  THE BANKERS ARE NOW LOATHE TO SUPPLY THE SHORT PAPER.  THEY CONTINUE TO ISSUE  SMALLER AMOUNTS OF EXCHANGE FOR PHYSICAL AS THE COST ON CARRYING SERIAL FORWARDS IN LONDON IS TOO GREAT FOR THEM. WE HAD ANOTHER FAILED BANKER SHORT COVERING AS THE BANKERS HAVE BEEN CAUGHT TERRIBLY OFFSIDE ON THEIR SHORT POSITIONS..AND THE REASON FOR ANOTHER HUGE RAID THIS MORNING AS OUR BANKER FRIENDS CALLED IN THE CAVALRY (OFFICIAL SECTOR) TO BOMB OUR PRECIOUS METALS// TODAY WE WITNESSED A GOOD INCREASE IN GOLD TONNAGE STANDING FOR AUGUST…..  WE NO DOUBT YESTERDAY  HAD ZERO LONG LIQUIDATION AS  WE HAD A SMALL GAIN IN BOTH EXCHANGES WITH OUR COMEX PRICE  GAIN OF 11.45 DOLLARS..

 

 

THE BANKERS WERE UNSUCCESSFUL IN LOWERING GOLD’S PRICE  //// (IT ROSE $11.45).  AND, THEY WERE  UNSUCCESSFUL IN FLEECING SOME LONGS 

AS THE TOTAL GAIN ON THE TWO EXCHANGES REGISTERED  5.589 TONNES.

 

 

NET GAIN ON THE TWO EXCHANGES :: 1797, CONTRACTS OR 179700 OZ OR 5.589 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:  551,018 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 55.10 MILLION OZ/32,150 OZ PER TONNE =  1714 TONNES

THE COMEX OPEN INTEREST REPRESENTS 1714/2200 OR 77.90% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

Trading Volumes on the COMEX TODAY: 532,196 contracts// HUGE volume//

 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  275,538 contracts//  volume FAIR //most of our traders have left for London

 

 

AUGUST 11 /2020

AUGUST GOLD CONTRACT MONTH

INITIAL STANDING FOR AUGUST GOLD

 

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
1639.701 oz
Manfra
51 kilobars
Deposits to the Dealer Inventory in oz 160,690.700 oz

 

 

 

Deposits to the Customer Inventory, in oz  

547,853.000

OZ

BRINKS

 

17040  1/2

KILOBARS

No of oz served (contracts) today
2359 notice(s)
 235900 OZ
(7.337 TONNES)
No of oz to be served (notices)
2126 contracts
(212,600 oz)
6.610 TONNES
Total monthly oz gold served (contracts) so far this month
46,280 notices
4628,000 OZ
143.95 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) Into Brinks  160,690.700 oz

 

 

 

 

 

total deposit: 160,690.700 oz

 

 

DEALER WITHDRAWAL: 0

 

 

 

 

total dealer withdrawals: nil oz

we had 0 deposit into the customer account

 

 

 

total deposit:  nil   oz

 

 

we had 1 gold withdrawals from the customer account:

i) Out of Manfra 1639.701 oz

 

 

total withdrawals;  1639.701 oz

 

 

 

We had 2  kilobar transactions  +

 

ADJUSTMENTS: 3 //

:   customer to dealer

i) Int Delaware:  24,002.400 oz

ii) Out of JPMorgan:  200,018.646 oz

iii) Out of Loomis:  8005.35 oz (249 kilobars)

 

 

 

 

 

The front month of AUGUST registered a total of 4486 CONTRACTS as we lost 105 contracts. We had 156 notices served on MONDAY so we GAINED 51 contracts or an additional 5100 will stand for delivery on this side of the pond as they refused to morph into London based forwards as well as negating a fiat bonus. The boys are scrambling in search of badly needed physical metal.

 

 

 

 

 

After August we have the non active Sept contract month.. Here we saw another GAIN of 41 contracts to stand at 2758.  Oct GAINED 868 contracts UP to 69,505

 

The big December contract LOST 1034 contracts down to 404,713 contracts… on a rise in price???.(attempted short covering)

 

 

We had 2359 notices filed today for  235,900 oz

 

FOR THE AUGUST 2020 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and 33 notices were issued from their client or customer account. The total of all issuance by all participants equates to 2359 contract(s) of which 252  notices were stopped (received) by j.P. Morgan dealer and 456 notice(s) was (were) stopped/ Received) by j.P.Morgan//customer account and 5 notices by the squid  (Goldman Sachs)

To calculate the INITIAL total number of gold ounces standing for the AUGUST /2020. contract month, we take the total number of notices filed so far for the month (46,280) x 100 oz , to which we add the difference between the open interest for the front month of  AUGUST (4485 CONTRACTS ) minus the number of notices served upon today (2,359 x 100 oz per contract) equals 4,840,600 OZ OR 150.560 TONNES) the number of ounces standing in this active month of JUNE

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

No of notices filed so far (46,280, x 100 oz + (4485 OI) for the front month minus the number of notices served upon today (2,359) x 100 oz which equals 4,840,600 oz standing OR 150.506 TONNES in this  active delivery month. This is a HUGE  amount for gold standing for a AUGUST delivery month (an active delivery month).

We gained 51 contracts or 5100 oz of gold as these guys refused to morph into London based forwards.

 

NEW PLEDGED GOLD:  BRINKS

 

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

 

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

deleted Int. Delaware pledge July 7  (600 tonnes)

231,924.295 oz  (some deleted august 3)         JPM  7.2138 TONNES

611,401.341 oz pledged June 12/2020 Brinks/   july 2/july 21               19.017 tonnes

total pledged gold:  1,029,962.895 oz                                     32.03 tonnes

 

 

 

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE 463.99 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS i.e. 150.560 tonnes

CALCULATION OF REGISTERED GOLD THAT CAN BE SETTLED UPON:

total registered or dealer  15,947,431.719 oz or 496.03 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/July 03/august 3) which cannot be settled upon:  231,924.295 oz (or 7.2138 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: 611,401.341 oz added which cannot be settled:  19,017 tonnes
total weight of pledged:  1,029,962.896 oz or 32.03 tonnes
thus:
registered gold that can be used to settle upon:  14,917,469.0  (463.99 tonnes)
true registered gold  (total registered – pledged tonnes  14,917,469.0 (463.99 tonnes)
total eligible gold:  20,946,719.959 oz (651.54 tonnes)

total registered, pledged  and eligible (customer) gold;   36,660,485.581 oz 1,140.95 tonnes (INCLUDES 4 GC GOLD)

total 4 GC gold:   126.34 tonnes

total gold net of 4 GC:  1014.61 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 July 2018. and it continues to present day.

 

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.

 

 

THE DATA AND GRAPHS:

 

 

 

THE GOLD COMEX SEEMS TO BE  UNDER SEVERE ASSAULT FOR PHYSICAL

 

END

AUGUST 11/2020

And now for the wild silver comex results

 

 

AUGUST SILVER COMEX CONTRACT MONTH//INITIAL STANDINGS

 

Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 617,300.733 oz
Delaware
Scotia

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
643,722.950 oz
CNT
Delaware
No of oz served today (contracts)
16
CONTRACT(S)
(80,000 OZ)
No of oz to be served (notices)
133 contracts
 655,000 oz)
Total monthly oz silver served (contracts)  1147 contracts

5,735,000 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

we had 2 deposits into the customer account

i)into JPMorgan:  nil oz

 

 

 

ii) Into CNT: 599,305.160 oz

iii) Into Delaware: 44,417.790 oz

 

 

 

 

 

 

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

JPMorgan now has 164.3 million oz of  total silver inventory or 48,79% of all official comex silver. (164.3 million/336.816 million

 

total customer deposits today: 643,722.950   oz

we had 2 withdrawals:

 

 

 

 

 

i) Out of Delaware:  17,217.513 oz

ii) Out of Scotia: 600,083.220 oz

 

 

 

 

total withdrawals; 617,300.733     oz

We had 1 adjustments

i) Out of CNT:  585,486.19 oz

customer to dealer account of CNT

Total dealer(registered) silver: 128,022 million oz

total registered and eligible silver:  336.816 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

the front month of August registered an open interest of 149 contracts and thus we lost 25 contracts.  We had 25 notices filed on Monday so we lost 0 contracts or NIL oz will  stand for delivery as these guys refused to morph into London based forwards as well as negating a fiat bonus for their efforts…. The bankers are now desperate in their search for badly needed silver whether it is on this side of the pond or the European side.

 

 

 

After August we have the  big September contract month and here we see a lost 6399 contracts down to 117,772. November saw another gain of 29 contracts to stand at 185.

 

The big December contract month saw its OI rise by strong 4179 contracts up to 76,202

Nobody has left the silver arena despite the vicious attack, Friday.

 

The total number of notices filed today for the AUGUST 2020. contract month is represented by 16 contract(s) FOR 80,000, oz

 

To calculate the number of silver ounces that will stand for delivery in AUGUST we take the total number of notices filed for the month so far at 1147 x 5,000 oz = 5,735,000 oz to which we add the difference between the open interest for the front month of AUGUST(.149) and the number of notices served upon today 16 x (5000 oz) equals the number of ounces standing.

 

Thus the INITIAL standings for silver for the AUGUST/2019 contract month: 1147 (notices served so far) x 5000 oz + OI for front month of AUGUST  (149)- number of notices served upon today (16) x 5000 oz of silver standing for the AUGUST contract month.equals 6,400,000 oz. ..VERY STRONG FOR A NON ACTIVE MONTH.

We lost 0 contracts or an additional nil will stand for delivery as they refused to morph into London based forwards..

 

 

TODAY’S ESTIMATED SILVER VOLUME : 356,999 CONTRACTS // volume huge++++++++++++++++++/

 

 

FOR YESTERDAY: 303,196.  ,CONFIRMED VOLUME//volume huge+++++++++++++++++++++++++++++/

 

 

YESTERDAY’S CONFIRMED VOLUME OF 303,196 CONTRACTS EQUATES to 1.784 billion  OZ 254% 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- 1.39% ((AUGUST 11/2020)

2. Sprott gold fund (PHYS): premium to NAV  FALLS TO -0.74% to NAV:   (AUGUST 11/2020 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ 1,39%

(courtesy Sprott/GATA

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

NAV 19.65 TRADING 19,25///NEGATIVE 2,01

END

 

 

And now the Gold inventory at the GLD/

AUGUST 11//WITH GOLD DOWN $92.40 TODAY, WE HAD NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1262.12 TONNES.

AUGUST 10/WITH GOLD UP $11.35  TODAY, WE HAD A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 5.84 TONNES//INVENTORY RESTS AT 1262.12 TONNES

AUGUST 7/WITH GOLD DOWN $38.30 TODAY, WE HAVE NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 1267.96 TONNES

AUGUST 6/WITH GOLD UP $20.45 TODAY, WE HAVE ANOTHER HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A PAPER DEPOSIT OF 10.23 TONNES INTO THE GLD/INVENTORY RESTS AT 1267.96  TONNES//

AUGUST 5/WITH GOLD UP $ 33.75 TODAY, WE HAVE A HUGE CHANGE IN GOLD INVENTORY AT THE GLD/A DEPOSIT OF 9.35 TONNES INTO THE GLD//INVENTORY RESTS AT 1257.73 TONNES

AUGUST 4//WITH GOLD UP $31.75 TODAY, WE HAVE A HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A DEPOSIT OF 6.48 TONNES/GLD INVENTORY RESTS AT 1248.38 TONNES

AUGUST 3/WITH GOLD UP $2.20 TODAY, WE HAVE NO CHANGES IN THE GOLD INVENTORY AT THE GLD////INVENTORY RESTS AT 1241,96 TONNES

JULY 31/WITH GOLD UP $17.90 TODAY/WE HAVE NO CHANGES IN GOLD INVENTORY AT THE GLD////INVENTORY RESTS AT 1241.96 TONNES.

JULY 30/WITH GOLD DOWN  $10.00 TODAY, WE HAVE ANOTHER SMALL CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.16 TONNES//INVENTORY RESTS AT 1241.96 TONNES.

JULY 29//WITH GOLD UP  $12.45 TODAY, WE HAVE ANOTHER HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A HUGE DEPOSIT OF 8.47 TONNES/INVENTORY RESTS AT 1243.12 TONNES

JULY 28///WITH GOLD UP $13.25 TODAY, WE HAVE ANOTHER HUGE CHANGE IN GOLD INVENTORY AT THE GLD//A HUGE DEPOSIT OF 5.84 TONNES/INVENTORY RESTS AT 1234.65

JULY 27//WITH GOLD UP $35.30 TODAY, WE HAVE NO CHANGES IN GOLD INVENTORY AT THE GLD//A DEPOSIT OF XXX TONNES/INVENTORY RESTS AT 1228.81 TONNES

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

AUGUST 11/ GLD INVENTORY 1262.12 tonnes*

LAST;  878 TRADING DAYS:   +322.68 NET TONNES HAVE BEEN ADDED THE GLD

 

LAST 778 TRADING DAYS://+501.15  TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

 

Now the SLV Inventory/

AUGUST 11/WITH SILVER DOWN $3.25 CENTS, WE HAVE ANOTHER CHANGE IN SILVER INVENTORY AT THE SLV//A DEPOSIT OF 2.41 MILLION OZ//INVENTORY RESTS AT 571.632 MILLION OZ//

AUGUST 10/WITH SILVER UP 1.89 TODAY, WE HAVE ANOTHER HUGE CHANGE IN SILVER INVENTORY AT THE SLV//A WITHDRAWAL OF 3.538 MILLION OZ/INVENTORY RESTS AT 569.491  MILLION OZ//

AUGUST 7/WITH SILVER DOWN 69 CENTS TODAY: WE HAVE ANOTHER HUGE CHANGE IN SILVER INVENTORY: A DEPOSIT OF 0.465 MILLION OZ/INVENTORY RESTS AT 573.029 MILLION OZ.

AUGUST 6/WITH SILVER UP $1.52 TODAY, WE HAVE NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 572.564 MILLION OZ///

AUGUST 5/WITH SILVER UP $1.03 TODAY, WE HAVE A HUGE CHANGE IN SILVER INVENTORY AT THE SLV// A MONSTROUS DEPOSIT OF 5.403 MILLION OZ//INVENTORY RESTS AT 572.564 MILLION OZ//

AUGUST 4/WITH SILVER UP $1.45 TODAY, WE HAVE NO CHANGES IN SILVER INVENTORY: //INVENTORY RESTS AT 367.161 MILLION OZ//

AUGUST 3/WITH SILVER UP 23 CENTS TODAY: WE HAVE A HUGE CHANGE IN SILVER INVENTORY AT THE SLV//SURPRISINGLY ANOTHER WITHDRAWAL OF 0.931 MILLION OZ//INVENTORY RESTS AT 367.161 MILLION OZ//

JULY 31/WITH SILVER UP 82 CENTS TODAY: WE HAVE A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: SURPRISINGLY A HUGE WITHDRAWAL OF 3.26 MILLION OZ//INVENTORY RESTS AT 368.092 MILLION OZ//

JULY 30//WITH SILVER DOWN 97 CENTS TODAY: WE HAVE A SMALL CHANGE IN SILVER INVENTORY: A WITHDRAWAL  OF 0.931 MILLION OZ//INVENTORY RESTS AT 571.352 MILLION OZ//

JULY 29/WITH SILVER UP 7 CENTS TODAY, WE HAD A BIG CHANGE IN SILVER INVENTORY//A DEPOSIT OF 5.984 MILLION OZ//INVENTORY RESTS AT 572.283 MILLION OZ//

JULY 28  WITH SILVER DOWN 14 CENTS TODAY, WE HAD A BIG CHANGE IN SILVER INVENTORY: A DEPOSIT OF 7.52 MILLION OZ//INVENTORY RESTS AT 566.299 MILLION OZ//

JULY 27/WITH SILVER UP $2.67 TODAY, WE HAD NO CHANGES IN SILVER INVENTORY: A DEPOSIT OF XX MILLION OZ//INVENTORY RESTS AT 558.779 MILLION OZ//

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//

 

AUGUST 11.2020:

SLV INVENTORY RESTS TONIGHT AT

571,632 MILLION OZ.

end

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

 

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

Biden vows to block Pebble mine project if elected

 Section: 

From the Associated Press
via Alaska Public Media, Anchorage
Sunday, August 9, 2020

JUNEAU, Alaska — Democratic presidential candidate Joe Biden said Sunday that if he’s elected, his administration would stop a proposed copper and gold mine in Alaska’s Bristol Bay region.

“It is no place for a mine,” the former vice president said in a statement to news media. “The Obama-Biden administration reached that conclusion when we ran a rigorous, science-based process in 2014, and it is still true today.”

The Environmental Protection Agency under the Obama administration proposed restricting development in the Bristol Bay region but never finalized the restrictions. The agency retains the option to invoke that so-called veto process again if it decides to do so. …

 

… For the remainder of the report:

https://www.alaskapublic.org/2020/08/09/biden-vows-to-block-pebble-mine-…

end

Turk talks about the huge potential for silver

Kingworldnews/James Turk

In comments to KWN, Turk sees greatest potential for silver

 Section: 

10:58a ET Monday, August 10, 2020

Dear Friend of GATA and Gold:

In comments to King World News today, GoldMoney founder and GATA consultant James Turk updates his predictions for the accelerating monetary metals. Turk is most impressed by silver’s prospects because the metal is still trading far below its price 40 years ago when the U.S. dollar was also succumbing to inflation.

The monetary metals, Turk concludes, “are in a long-overdue major bull market.”

His comments can be found at KWN here:

https://kingworldnews.com/man-who-correctly-predicted-silver-would-hit-3…

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

end

bill Murphy talks about gold/silver price suppression

(Bill Murphy/GATA)

GATA Chairman Murphy interviewed about gold price suppression

 Section: 

11:25a ET Monday, August 10, 2020

Dear Friend of GATA and Gold:

GATA Chairman Bill Murphy was interviewed yesterday about gold price suppression policy by market observer Bob Unger. The interview is a half hour long and can be seen at YouTube here:

https://www.youtube.com/watch?v=rW977KwhEiM

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

end

iii) Other physical stories:

Gold and silver bombed!  ..official sector

Gold, Silver, Bonds Hit As “Everything Duration”-Momo/Liquidity Trade Unwinds

Precious metals are getting pummeled this morning as real rates rise amid vaccine optimism and hotter than expected inflation data…

Bonds are also getting slammed with 10Y Yields back above 60bps at 10-day highs…

As Nomura’s Charlie McElligott reiterates (from his call last week), “inflation expectations” are beginning to adjust higher – Inflation swaps in U.S. and Europe (fickle traders, no doubt) are beginning to tell a story of nascently accelerating global views towards forward inflation – something that was inconceivable to nearly all just a few months ago and now coinciding with the back-to-back weeks of U.S. M2 decline, showing a decrease in risk-aversion and saving and a “less bad” economic outlook from corporates.

And as real yields rise, gold prices fall…

As the Nomura MD has noted over the past few weeks, the SPX macro factor regime has transitioned from “Liquidity” macro factor measures which led the March Equities recovery:

1. Fed QE Expectations – 1y5y USD Rate Vol,

2. Fed Rate Cut Expectations – ED$ Curve,

3. USD Liquidity – FX Basis Swaps

…now into “Growth” inputs as the largest POSITIVE price-drivers for S&P 500 in the factor PCA model:

1. US and EU GDP NowCasting and

2. Inflation Swaps

But the most dramatic impacts of the reflation trade inflection are evident in the broad equity markets… where Nasdaq (tech – growth focused) is tumbling as Small Caps (financials/energy – value dominant) surge…

And as McElligott notes, US Equities factors are showing the most glaring expression of the market’s flat-footedness in their growth- and inflation- skepticism (and evidencing itself in the crowded “Everything Duration” Momentum-positioning which is evidently being de-grossed by somebody):

The current iteration of this U.S. Equities factor “Value / Momentum” swing (5d aggregate % chg) is a doozy, ranking as in the top six since at least 2010, going hand-in-hand with monster thematic- and sector- reversals.

The question is – how high will The Fed let nominal rate rise before it stomps on this reversal? As Morgan Stanely recently warned:

To be clear, we think that overall equity and credit markets can weather a modest rise in yields, driven by better data. Risk assets have frequently been happy to trade a better growth outlook for a higher discount rate, and we saw this pattern as recently as Monday when global PMIs surprised to the upside. But the rise in duration across asset classes, at its most expensive levels on record, suggests that the transition won’t be smooth. 

Whether one is active or passive, August appears to be a good time to evaluate, and be honest about, your cross-asset duration exposure.

 

end

James McShirley to me

“The Comex raised margins on gold and silver yesterday. That was the trigger for the late day selloff, and now today’s smack down. As I have said whenever there is a margin requirement change it nearly always precedes a cartel attack. Raising margins is one of the few remaining weapons the cartel and their Comex cronies have to slow down this precious metal bull market. Silver leverage now back down to 11.9-1. Gold leverage now 22.4-1. Look for more of the same in the future as it will help the cartel escape their short positions.”

JMc

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 TUESDAY 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: 6.9447/ GETTING VERY DANGEROUSLY CLOSE TO 7:1

//OFFSHORE YUAN:  6.9380   /shanghai bourse CLOSED DOWN 38.96 POINTS OR 1.15%

HANG SANG CLOSED UP 513.25 POINTS OR 2.11%

 

2. Nikkei closed UP 420.30 POINTS OR 1.88%

 

 

 

 

3. Europe stocks OPENED ALL GREEN/

 

 

 

USA dollar index DOWN TO 93.20/Euro RISES TO 1.1799

3b Japan 10 year bond yield: RISES TO. +.03/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 106.00/ 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:: 42.84 and Brent: 45.60

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

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 -.48%/Italian 10 yr bond yield DOWN to 0.94% /SPAIN 10 YR BOND YIELD DOWN TO 0.29%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.42: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.06

3k Gold at $1954.50 silver at: 27.19   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 68/100 in roubles/dollar) 72.82

3m oil into the 42 dollar handle for WTI and 45 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 106.00 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 .9134 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0755 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 0.48%

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 0.62% early this morning. Thirty year rate at 1.30%

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

6.  TURKISH LIRA:  UP  TO 7.25..

S&P Futures Hit All Time Highs On Stimulus, Vaccine Hopes; Gold, Silver Tumble

S&P 500 futures hit a record high as investors shrugged off continuing U.S.-China tensions and instead focused on news of an approved, if largely unclear, Russian vaccine, and more stimulus optimism as President Donald Trump said he’s considering a tax cut on capital gains. According to Reuters calculations at the current levels, the benchmark index is set to open about 12 points below its Feb. 19 record peak of 3,393.52.

American Airlines and Carnival led a boom in travel shares in the premarket. The S&P 500 closed less than 1% below its record high on Monday as investors extended a rotation into value stocks from heavyweight tech-related names. At 8:00 a.m. ET, S&P 500 e-minis were up 23.25 points, or 0.69%, topping an all-time high of 3,372.25 points last hit on Feb. 20.
A rally in the tech megacaps including Amazon.com, Netflix and Apple that thrived during the shutdowns helped the Nasdaq reclaim its all-time high in June, while the Dow still remains about 6% below its peak.

“Equity has never looked cheaper compared to fixed income and the like,” Jun Bei Liu, portfolio manager at Tribeca Investment Partners, said in a Bloomberg TV interview. “If you want any return, any yield, any income or even any growth you have to go to equities.”

In Europe and Asia, a broad rally from industrial goods to health-care shares set the Stoxx Europe 600 Index headed for its best increase since mid-June. The Stoxx 600 Europe index rose more than 2% , with auto shares leading the way after a surge in Chinese car sales. The Stoxx 600 Travel & Leisure Index jumps as much as 4.8%, to the highest since June 11, amid investor optimism about the development of a vaccine for the coronavirus and after InterContinental Hotels said it is seeing some very early signs of improvement as traveller confidence returns, sending its stock up 6.1%. The subgroup was among the biggest advancers in Europe’s Stoxx 600 Index, which is up 2.1% after President Vladimir Putin said Russia has registered its first Covid-19 vaccine, though some pharmaceutical companies have called Russia’s rushed registration dangerous. Airline stocks also rose: IAG +7.8%, EasyJet +6.5%, Lufthansa +4.7%, Ryanair +4%, Turkish Airlines +8%.

Earlier in the session, Asian shares ex-Japan gained nearly 1%, with Japan’s Nikkei rising 1.9% after a Monday holiday. There were hopes Beijing’s sanctions on 11 U.S. citizens  may end this round of tit-for-tat moves between the two powers.

“It has left the White House untouched,” said Vishnu Varathan, head of economics at Mizuho Bank in Singapore. “That gives some relief that China is still giving some priority to the (trade deal) dialogue,” he said.

Elsewhere, the resignation of Lebanon’s government after the devastating explosion in Beirut threatened to upend prospects of a debt restructuring deal in the next few months.

Market participants remain eager to see an agreement on the fifth federal aid bill to help Americans battle with the health crisis was far from over with U.S. cases surpassing 5 million last week. The mood remains cautious as sparring continues in the U.S. Congress over extending fiscal stimulus while economic data such as a steep drop in South Korean exports and a rise in UK jobless rates remain a cause for concern. But upbeat comments by U.S. Treasury Secretary Steven Mnuchin on the prospects for a bipartisan stimulus deal supported Brent crude futures at near five-month highs and kept the dollar index near a one-week peak.

Commerzbank analysts said markets were shrugging off doubts over the legality of Trump’s order and appeared convinced Congress would agree a deal

“Not without good reason, because in the election campaign both parties have an interest in presenting  themselves well,” they said. “Who wants to be seen as the stingy bad guy even in times of great need?”

General optimism kept safe haven assets under gentle pressure, with gold falling back under $2000 an ounce, down more than 2%, even as the dollar slumped. Precious metals dropped with spot gold south of $2000 and spot silver just about holding onto a USD 28/oz handle having briefly dipped below the figure. No fundamental news flow coincided with the losses across precious metals but action could merely be a function of tech play alongside some profit taking/stops being triggered. But the most likely reason for the back down in gold prices is that 10Y real rates – which gold has been tracking tick for tick – also dipped from recent record lows.

In FX, the dollar slipped as European stocks follow Asian equities higher, with markets taking encouragement from falling hospitalization rates in California and New York and decreasing new infections in Hong Kong. The euro rose as much as 0.5% after ZEW data revealed investors raised their expectations of a rebound for the German economy in August. Italy’s 10-year yield premium over its German equivalent tightened to its lowest level since February.

In rates, ten-year U.S. Treasury yields were near a two-week high of 0.5870% while German yields likewise rose to two-week highs. Treasury yields were cheaper by 1bp to 2.5bp across the curve led by long end, steepening 2s10s, 5s30s by 1.6bp and 1bp; 10-year yields around 0.60% while bunds, gilts both lag by ~1bp. Ahead of 3-year auction, WI yield is ~0.160%, 3bp richer than July’s record low stop at 0.19%; refunding includes $38b 10-year Wednesday and $26b 30-year Thursday; all sizes are records.

In commodities, WTI and Brent continue to grind higher in early trade, with upside more-so a function of the overall risk tone as opposed to fresh fundamental catalysts, albeit prices remain underpinned by the recent upbeat assessment from Saudi, Iraq and Gulf members alongside the constructive outlook by Saudi Aramco post-earnings. Looking ahead, traders will be eyeing the weekly API inventory release, with expectations for crude stockpiles to decline by almost 4mln barrels, but ahead of the weekly release, participants will pay attention to the EIA Short Term energy Outlook which will include US crude production forecasts for the rest of 2020 and 2021. In terms of base metals, Dalian iron ore futures snapped its two-day losing streak as prices were bolstered by falling portside inventories, whilst LME copper prices saw early downside.

Looking at the day ahead, and data releases out include UK unemployment data for June, the German ZEW survey for August, as well as July’s PPI reading and the NFIB small business optimism index from the US. Otherwise, Fed speakers today include Barkin, Daly and Brainard.

Market Snapshot

  • S&P 500 futures up 0.6% to 3,371.75
  • STOXX Europe 600 up 1.8% to 371.07
  • MXAP up 1.1% to 169.75
  • MXAPJ up 0.6% to 562.38
  • Nikkei up 1.9% to 22,750.24
  • Topix up 2.5% to 1,585.96
  • Hang Seng Index up 2.1% to 24,890.68
  • Shanghai Composite down 1.2% to 3,340.29
  • Sensex up 0.9% to 38,507.25
  • Australia S&P/ASX 200 up 0.5% to 6,138.65
  • Kospi up 1.4% to 2,418.67
  • German 10Y yield rose 1.3 bps to -0.513%
  • Euro up 0.3% to $1.1768
  • Brent Futures up 0.8% to $45.33/bbl
  • Italian 10Y yield fell 0.8 bps to 0.795%
  • Spanish 10Y yield fell 0.2 bps to 0.253%
  • Brent Futures up 0.8% to $45.33/bbl
  • Gold spot down 2.1% to $1,985.04
  • U.S. Dollar Index down 0.2% to 93.44

Top Overnight News from Bloomberg

  • Britain’s mounting labor market crisis was underscored by a 220,000 slump in employment during the height of the coronavirus lockdown, the worst decline since the global financial crisis
  • Even as China continues to hit back at the Trump administration, leaders in Beijing are also signaling they want to ease tensions with the U.S. as the clock ticks down to the presidential election
  • Lebanon’s political leaders are expected to launch parliamentary consultations to choose a new prime minister after Hassan Diab’s government resigned on Monday over the devastating explosion at Beirut’s port
  • Hong Kong’s worst coronavirus outbreak is showing signs of coming under control as the city reported the lowest number of new local infections since its resurgence began over a month ago

A quick look at global markets courtesy of NewsSquawk:

Asian equity markets traded higher as risk appetite in the region improved on the tepid performance seen on Wall St where most major indices finished in the green but tech underperformed and indecision lingered amid the ongoing stimulus talks stalemate, mixed views on President Trump’s recent executive orders and ongoing US-China tensions. ASX 200 (+0.5%) was positive as top-weighted financials spearheaded the advances and with the broad sector gains offsetting the weakness in gold miners and tech, while Nikkei 225 (+1.8%) was buoyed on return from an extended weekend helped by a predominantly weaker currency and after bank lending increased by its fastest pace on record. Hang Seng (+2.1%) and Shanghai Comp. (-1.2%) conformed to the upbeat mood after the PBoC upped its liquidity efforts with a CNY 50bln reverse repo injection and although China announced sanctions against officials in retaliation to US sanctions on Hong Kong, they refrained from imposing them on Trump administration officials. Furthermore, casino stocks are red-hot after reports China is to remove the quarantine requirement for Macau effective tomorrow and Next Digital shares surged over 400% in an extension of yesterday’s sharp intraday turnaround as activists piled into the shares in a show of support following the founder’s recent arrest and amid speculation it could sell its listed entity as a shell for other firms to acquire for a back-door listing. Finally, 10yr JGBs were lower and approached 152.00 to the downside as they played catch up to the recent weakness in T-notes and as havens were shunned amid gains in riskier assets, while the lack of BoJ presence in the market also added to the dampened mood for JGBs.

Top Asian News

  • One of World’s Strongest Rallies Propels Kospi to Two-Year High
  • Tough-to-Impress Harvard Grad Molds Fortunes of China’s Rich
  • Singapore’s Economy Posts Worse Contraction in Second Quarter
  • Iron Ore Futures Gain as China’s Economic Recovery Fuels Demand

European equities trade higher across the board [Euro Stoxx 50 +2.7%], with upside accelerating after the cash open as sentiment improved following an initially bleak APAC handover – prompting DAX cash and Sept futures to gain above 13k, albeit fresh fundamental catalysts remain light throughout the session thus far; some modest impetus coincided with vaccine updates from Russia. Firm gains are also seen across all European sectors, with cyclicals/value clearly outpacing defensives, whilst the breakdown paints a similarly performance, with Travel & Leisure topping the chart, closely followed by Oil & Gas, Autos and Banks, whilst the other side of the spectrum sees Healthcare and Chemicals as the laggards. In terms of individual movers, UK listed Cineworld (+17%) extended on earlier gains and resides at the top of the Stoxx 600 amid reports that the group could go private. BP (+3.7%) coattails on the back of firmer energy prices coupled with source reports the group is said to be mulling the sale of its German chemicals’ unit DHC Solvent Chemie. Mediobanca (+5.9%) extends on opening gains after the ECB gave the green-light for shareholder Del Vecchio to increase his stake in the Co. to 13-14% from 10%.

Top European News

  • Hungary Inflation Surges, Putting Rate Policy Back in Focus
  • U.K. Jobs Crisis Worsens as Employment Drops Most Since 2009
  • Vestas Shares Surge as 2020 Revenue Guidance Reintroduced
  • Unilever Warns of Dutch Tax Proposal’s Risk for Plan to Move

In FX, another back up in US Treasury yields and mild steepening along the curve into record refunding has underpinned the Dollar to a degree, but a deeper retracement in spot bullion to test support around the psychological Usd 2000/oz level coincided with the DXY marginally eclipsing Monday’s high at 93.729. However, the Greenback has lost momentum against the backdrop of extended gains in global equities that is keeping high beta/cyclical currencies supported and safe-haven demand suppressed.

  • AUD/NZD/CAD/NOK – As noted above, the Aussie is benefiting from bullish risk sentiment to the extent that declines in NAB business sentiment and conditions have not weighed on Aud/Usd unduly, while the Kiwi is just keeping tabs with 0.6600 ahead of Wednesday’s RBNZ policy meeting even though the bias may be skewed towards a more dovish event compared to the prior assessment and guidance, while NZ reports a local outbreak of COVID-19 cases after a 100+ day run of no infections at all. Elsewhere, elevated crude prices are helping the Loonie and Norwegian Crown remain afloat around 1.3300 and 10.5800 vs the Buck and Euro respectively, with the former now looking for some independent impetus via Canadian housing starts.
  • EUR/CHF/GBP – All benefiting from the aforementioned Dollar fade, with the index now back under 93.500 again and Euro rebounding between 1.1723-83 parameters following a somewhat mixed ZEW survey, the Franc paring losses within a 0.9168-34 range and Pound maintaining 1.3050+ status, but not quite able to retest yesterday’s best a few pips over 1.3100 in wake of mostly weaker than forecast UK labour and pay data.
  • JPY – The Yen is marginally underperforming either side of 106.00 on a loss of safety premium and with Japanese markets back from their long holiday weekend, but little lasting reaction to a wider than anticipated Japanese current account surplus.
  • EM – Oil’s ongoing resurgence is helping the Rouble and Mexican Peso supplement gains vs the flagging Greenback. but the SA Rand has not been deterred by Gold’s meltdown or looming data and has breached key technical resistance in the form of the 100 DMA (17.6240) on the way up towards 17.5400. Similarly, the Turkish Lira is back in recovery mode as tighter CBRT funding conditions prompt some short covering, while Brazil’s Real awaits BCB COPOM minutes from the last meeting.

In commodities, WTI and Brent front-month futures continue to grind higher in early trade, with upside more-so a function of the overall risk tone as opposed to fresh fundamental catalysts, albeit prices remain underpinned by the recent upbeat assessment from Saudi, Iraq and Gulf members alongside the constructive outlook by Saudi Aramco post-earnings. The benchmarks experienced modest downside heading into the European cash open, in which prices briefly dipped below 45/bbl for the Brent Oct contract, whilst WTI Sep tested 42/bbl, before recovering lost ground and some more. Looking ahead, traders will be eyeing the weekly Private Inventory release, with expectations for crude stockpiles to decline by almost 4mln barrels, but ahead of the weekly release, participants will pay attention to the EIA Short Term energy Outlook which will include US crude production forecasts for the rest of 2020 and 2021. Elsewhere, precious metals are under pressure this morning with spot gold south of USD 2000/oz and spot silver just about holding onto a USD 28/oz handle having briefly dipped below the figure. No fundamental news flow coincided with the losses across precious metals but action could merely be a function of tech play alongside some profit taking/stops being triggered. In terms of base metals, Dalian iron ore futures snapped its two-day losing streak as prices were bolstered by falling portside inventories, whilst LME copper prices saw early downside amid the firming USD at the time; albeit, has since nursed losses.

US Event Calendar

  • 6am: NFIB Small Business Optimism 98.8, est. 100.5, prior 100.6
  • 8:30am: PPI Final Demand MoM, est. 0.3%, prior -0.2%; PPI Ex Food and Energy MoM, est. 0.1%, prior -0.3%
  • 8:30am: PPI Final Demand YoY, est. -0.7%, prior -0.8%; PPI Ex Food and Energy YoY, est. 0.0%, prior 0.1%

DB’s Jim Reid concludes the overnight wrap

The last 24 hours has pretty much fit the bill as far as slow news days are concerned in markets. That being said there was a somewhat notable milestone reached yesterday as the S&P 500 surpassed the all-time highs from February on a total return basis. This is a fairly astonishing feat when you consider that in late-March the index was down as much as -33.79% from those highs. In price terms it finished +0.27% yesterday which means it’s just -0.76% lower than its all-time closing high. That move also marked the S&P’s 7th consecutive advance for the first time since April 2019.

While the S&P nudged higher, the Dow Jones saw a much larger +1.30% gain, which is somewhat unusual given the strong correlation between the two indices. Indeed, it’s only the 6th time in the last decade that the Dow’s daily move has been more than one percentage point different to the S&P’s (even if 5 of them have been since the pandemic hit). At the other end of the spectrum though, the NASDAQ (-0.39%) slipped for a rare second consecutive session. At the margin the macro news acted as a bit of headwind and included the news of further Chinese sanctions on US officials after similar measures were announced by the US on Friday, with those sanctioned by China including the Republican senators Marco Rubio, Ted Cruz and Tom Cotton. Chinese Foreign Ministry spokesman Zhao Lijan said yesterday that “China has decided to impose sanctions on those individuals who behaved badly on Hong Kong-related issues”. And in a further sign that US-China tensions are showing no sign of abating any time soon, US Secretary of State Mike Pompeo tweeted yesterday that the arrest of Jimmy Lai under Hong Kong’s national security law was “further proof that the CCP has eviscerated Hong Kong’s freedoms and eroded the rights of its people.”

Meanwhile, markets continue to turn a bit of a blind eye to the lack of any progress on the next US fiscal package with no updates to report of yesterday. Nevertheless there was some more positive coronavirus news from the US, with the number of hospitalisations in New York State at the lowest since the start of the pandemic, and the number of cases in Florida at their lowest in over 6 weeks. California and Texas also reported a fall in hospitalizations. Overall, cases in the US grew by 44,647 in last 24 hours or +0.9% while at the same point last week cases had grown by 46,918 or 1.0%. Globally, the number of cases have crossed the 20 million mark. It is worth highlighting that it took 6 months for cases to reach 10 million after the first infection surfaced in China while the second 10 million took only 6 weeks. On the positive side, China has said that it will resume issuing tourist visas for visitors to Macau which has helped casino stocks rally in the region.

Indeed most Asian bourses have posted strong gains this morning. The Hang Seng (+2.40%) has led the way after underperforming on Monday, while the Nikkei (+1.81%) is up following Monday’s holiday. The Kospi (+1.60%) and ASX (+0.84%) all also up while futures on the S&P 500 are also up +0.26%. It’s been fairly quiet for overnight news, however President Trump did say that he’s “very seriously” considering a capital gains tax cut “which would create a lot more jobs”.

Back to yesterday, and over in Europe the moves were pretty similar to the US in terms of the upward direction for equities, though the STOXX 600 (+0.30%) still remains nearly 16% beneath its own record high in February, with European indices having underperformed their US counterparts since the pandemic hit. Energy stocks led the rally on both sides of the Atlantic thanks to a strong performance in oil prices, and both WTI (+1.75%) and Brent (+1.33%) saw solid gains. Staying with the commodities sphere, it’s worth noting that silver was up +2.93% at a 7-year high of $29.13/oz yesterday, though gold (-0.40%) continued to come down from Thursday’s record high with a 2nd successive decline. Looking at other markets, sovereign bonds advanced modestly in Europe, with yields on 10yr bunds (-1.7bps), OATs (-2.3bps) and BTPs (-0.8bps) all moving lower. Indeed yields on 10yr BTPs were down to 0.918%, their lowest level in nearly 6 months. US Treasuries gave up their gains however, with 10yr yields ending the session up +1.2bps at 0.577%. The MOVE index of implied Treasury volatility did nudge up yesterday however still remains just 2 points off the all-time lows from the end of July. Speaking of volatility, the VIX is now down to 22.13, the lowest since 21 February.

Elsewhere, in terms of data yesterday there weren’t a great deal of releases, though we did get the JOLTS job openings from the US, which rose to 5.889m in June (vs. 5.3m expected). That’s their second monthly increase since their low of 4.996m in April, but still over a million lower than their levels in January and February of just over 7m. On a less positive note however, the New York Fed’s Survey of Consumer Expectations showed that households’ expectations on their employment prospects and year-ahead financial situation worsened in July following two months of improvements.

To the day ahead now, and data releases out include UK unemployment data for June, the German ZEW survey for August, as well as July’s PPI reading and the NFIB small business optimism index from the US. Otherwise, Fed speakers today include Barkin, Daly and Brainard.

 

3A/ASIAN AFFAIRS

i)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED DOWN 38.96 POINTS OR 1.15%  //Hang Sang CLOSED UP 513.25 POINTS OR 2.11%   /The Nikkei closed UP 420.30 POINTS OR 1.88%//Australia’s all ordinaires CLOSED UP .40%

/Chinese yuan (ONSHORE) closed UP  at 6.9447 /Oil UP TO 42,841 dollars per barrel for WTI and 45.60 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED UP // LAST AT 6.9447 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.9380 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 BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER 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

Flooding on our major rivers is creating food storages.  Also pests are ruining the harvest season

Hao/Epoch Times)

China Faces Food Shortage As Droughts, Flooding, And Pests Ruin Harvest

By Nicole Hao of Epoch Times

Chinese Vice Premier Hu Chunhua recently asked the governors of each province in China to make sure the sown areas of agricultural crops would not shrink and crop yield won’t be reduced this year. At a food security meeting held in Beijing on July 27, he warned that governors would be punished if they failed to uphold the promise, including with dismissals.

And when Chinese leader Xi Jinping visited northeastern Jilin Province on July 22, he told the local government to treat grain production as a priority task. The top officials’ emphasis on food supplies raised questions about whether China is facing a severe food shortage this year.

In early July, the government organ China National Grain and Oils Information Center released its estimates that the corn supply gap in the 2020-2021 fiscal year would be 25 million metric tons—more than double the previous estimated 12 million metric tons.

On Aug. 5, the Center estimated that China would import six million metric tons of wheat in the 12 months from June 2020 to May 2021, which would be the highest amount in the past seven years. The Center said the wheat would likely come from France, Russia, Lithuania, and Kazakhstan.

 

Farmers work in the fields in Yangzhou, Jiangsu, China on June 6, 2018. (VCG/VCG via Getty Images)

In late January, Chinese authorities mandated that people stay at home to prevent the spread of COVID-19, farmers among them. Around March, restrictions eased and most farmers were allowed to go out again. But not long after, extreme weather across large swathes of China led to the destruction of crops. Since early June, heavy rain has befallen the country’s south, center, and east. Meanwhile, parts of the northwest and northeast are suffering from droughts. Pests such as locusts and fall armyworms have also invaded crops.  Farmers told The Epoch Times that they suspected that they would lose their harvest this year.

 

China’s Vice Premier Hu Chunhua speaks at the Brazil-China Business Seminar in Beijing, China on October 25, 2019. (MADOKA IKEGAMI/POOL/AFP via Getty Images)

Flooding

Chinese farmers plant rice in 13 provinces, including Hunan, Hubei, Jiangxi, Anhui, Jiangsu, Zhejiang, Sichuan, Chongqing, Guizhou, Guangdong, Guangxi, Yunnan, and Fujian. All these provinces were impacted by flooding in June and July. Farmers plant rice at three different times of the year. The early season is planted in late March, and harvested in late June. The middle season is planted in early May and harvested in late September. The late season is planted in late June and harvested in mid-October. The flooding in June and July impacted all three seasons of rice planting.

Mr. Li is from Poyang county, Jiangxi Province. He told the Chinese-language Epoch Times on July 18: “The early rice in our province was ruined before harvest. The mid-season rice was destroyed by the floods. Now it’s too late to plant the late rice.” While sobbing on the phone, Mr. Chen from Hunan Province said farmers in his area had no harvest this year. He and his fellow villagers were worried that they might not have enough food to eat, as flooding has hit the region continually.

 

A sports ground along the Yangtze River was inundated in Wuhan in China’s central Hubei Province on July 28, 2020. (STR/AFP via Getty Images)

Droughts

Wheat is mainly planted in central and northern China. Farmers only harvest once a year in late May to early June. Wheat production in Henan Province contributes to roughly a quarter of China’s total agricultural production. However, droughts killed the crops in Henan, Inner Mongolia, Gansu, Xinjiang, Jilin, and other northern provinces.

Privately-run Chinese grains and oil wholesale platform CCTIN visited wheat production areas of Henan, Anhui, and Jiangsu provinces and reported that the quality of wheat in 2020 was worse than that in 2019, and production was 15 to 30 percent less than previous years.

The situation in Inner Mongolia, Gansu, and Xinjiang is worse. State-run media Xinhua reported on June 16 that 50.7 percent of Inner Mongolia’s land suffered heavy droughts this year. The region mainly grows wheat, as well as soybeans and corn. Crops and wild grass were unable to grow, impacting local animal husbandry.

State-run China News reported on June 3 that the dry bout led to almost no harvesting in Gansu Province this year. “I’m 50 years old. I had never seen a drought like this year,” a farmer in Yuzhong city, Gansu said in the report. One woman in Xinjiang shared a video on social media on July 17, showing large wheat fields that have dried up.

“You think this yellow color is harvested [wheat]? They all died. Our farmers have no harvest at all this year,” she said.

Chinese media reports also noted that due to a two-month-long drought, two-thirds of the corn crops in northeastern Liaoning Province have dried up.

Pests

Meanwhile, nearby Jilin and Heilongjiang provinces reported native locust plagues in June. In late June, a foreign locust invasion entered China’s Yunnan Province in the southwest, from Laos, and continued moving to other regions. On July 27, Chinese Ministry of Agriculture and Rural Affairs organized a drill to wipe out locusts in Yunnan and estimated that more locusts would keep on entering China from Laos before late August.

Farmers in southern Guangxi and Hunan provinces have also reported native locust plagues in June.

And the fall armyworm, which enjoys feeding on corn, was reported to have destroyed crops in Shandong, Anhui, Jiangsu, Henan, and other provinces in July.

 

An armyworm, which usually comes out at night, is seen on corn crop at a village of Menghai county in Xishuangbanna Dai Autonomous Prefecture, Yunnan Province, China, on July 12, 2019. (Aly Song/Reuters)

Other Signs

China has a national grain reserves system in order to maintain food security, but how much the country actually possesses in reserve has been called into question. Meanwhile, all domestic grain prices have gone up in the first week of August, compared to the same period last year, according to data issued by Orient Securities and Huatai Securities.

Soybean prices, in particular, jumped up 37.83 percent, from 3,454 yuan ($484.85) per metric ton in Aug. 2019 to 4,761 yuan ($682.1) per metric ton in Aug. 2020. The Chinese regime also recently made record purchases of U.S. agricultural goods. On July 29, China purchased its biggest-ever order of U.S. corn, 1.937 million metric tons, which will be delivered during the 2020-21 marketing year that begins on Sept. 1, according to the U.S. Department of Agriculture (USDA).

Orders in July also broke previous records. On July 14, USDA reported that China bought 1.762 million metric tons of corn and 129,000 metric tons of soybeans. On July 10, China ordered 1.365 million metric tons of U.S. corn, 130,000 metric tons of U.S. hard red winter wheat, and 190,000 metric tons of U.S. hard red spring wheat.

Qin, an agriculture researcher in China who only gave his last name because he was not authorized to speak to foreign media, explained that grains have three primary uses in China, which are: food for human consumption, feed for livestock, and raw materials to make wine and other industrial products.

He said the current shortage “won’t be as serious as people not having food to eat… The key is no feed for livestock and poultry. Then, people don’t have enough meat to eat,” Qin said.

One final observation confirming that food in China is indeed becoming scarce: food inflation has been in the double digits for the past 12 months.

END
Huawei now feeling the bit from USA sanctions as the Kirin chip processors can be used as TSMC cuts off Huawei
(zerohedge)

Huawei Ends Production Of Kirin Smartphone Microchips As US Sanctions Capsize Supply Chain

Back in May, we reported how TSMC, one of the biggest contract chipmakers in Asia, and a critical component of China’s high-tech supply chain, would be forced to cut off supplies of US-designed microchips used in Huawei smartphones. That, in turn, would create serious problems for the company as it seeks to supplant Samsung as the world’s largest seller of smartphones.

More than three months later, the situation hasn’t changed much: The full force of the newest restrictions out of the US are starting to bite, and on Friday, Yu Chengdong, CEO of Huawei’s consumer business, confirmed to an industry conference that Huawei’s new high-end Mate40 handsets, set to debut this fall, will be the last smartphones featuring the company’s most advanced processor (Huawei has had plenty of time to stockpile components).

But starting on Septl 15, the Kirin processors used in these handsets will no longer be produced.

“From Sept. 15 onward, our flagship Kirin processors cannot be produced. Our AI-powered chips also cannot be processed. This is a huge loss for us. Huawei began exploring the chip sector over 10 years ago, starting from hugely lagging behind, to slightly lagging behind, to catching up, and then to a leader. We invested massive resources for R&D, and went through a difficult process.”

Before Washington added Huawei and a bunch of its subsidiaries to an American blacklist,

a subsidiary of Huawei produces its own chips based on designs owned by ARM

He called it a “huge loss” to the company. But it’s a problem that Huawei can only face once, as it seeks to mimic Apple by producing more of its own chips.

But since Huawei hasn’t developed nearly as much in terms of resources to developing their manufacturing capacity (as opposed to the company’s design capacity, which has thrived, bolstered by plenty of stolen IP). And the death of Huawei’s Kirin9000 chipsets, manufactured for the company by TSMC, appear to already creating new constraints for Huawei’s 2020 and 2021 smartphone shipments.

Here’s more on that from Caixin, the Chinese financial news organization:

The Kirin9000 chipsets have been produced by Taiwan Semiconductor Manufacturing Co. (TSMC) with U.S. equipment. In July, the Taiwan contract chipmaker said it stopped taking new orders from Huawei in May.

Yu said Huawei’s smartphone shipments this year will be less than last year’s 240 million units reflecting the chip shortage caused by the U.S. trade ban. Huawei’s global shipments in the second quarter totaled 55.8 million phones, surpassing Samsung for the first time to become the world’s largest mobile phone vendor.

However, facing disruptions in its supply chain, Yu said he regretted that Huawei had only invested in developing chips, not in manufacturing them. “After Sept. 15, we will neither be able to produce our flagship chipsets, nor our chips with AI processing capabilities — this is a huge loss to us,” he told the event.

He said Huawei is determined to solve the problems by making breakthroughs in technology innovations on operation systems, chips, data and cloud services. He also called on China’s chip industry to make advancements on chip manufacturing and new generation semiconductors.

In the first-half of the year, Huawei’s consumer business garnered 255.8 billion yuan in sales revenue and sold more than 105 million smartphones.

Since winding up on the Commerce Department’s trade ‘blacklist’, Huawei has invested heavily in R&D. But no matter how fast it innovates, the company still can’t escape the reality of a globally diversified supply chain illustrated in the chart below:

In the second quarter, over 70% of its device shipments were in China, where the Covid-19 pandemic and associated lock-downs is thought to have contributed to boosting sales by 8%. Its shipments in markets outside China, however, dropped 27%.

“Strength in China alone will not be enough to sustain Huawei at the top once the global economy starts to recover,” said Mo Jia an analyst at Canalys. “Its major channel partners in key regions, such as Europe, are increasingly wary of ranging Huawei devices, taking on fewer models, and bringing in new brands to reduce risk.”

To be effectively compete against Samsung, Huawei needs to dominate. And the Trump Administration’s sanctions are about to make that much more difficult.

4/EUROPEAN AFFAIRS

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

TURKEY/GREECE

Erdogan sets up military drills off the island of Rhodes.  The fight for the gas exploration resumes

(zerohedge)

Turkey Sends Military For ‘Gunnery Drills’ Off Rhodes As Contested Gas Exploration Resumes

Greece’s military is once again said to be in a state of high alert with all troops prevented from leaving their duty stations or going on temporary leave. Not only has Turkey’s Energy Minister Fatih Donmez announced Monday that the Oruc Reis seismic exploration ship has been dispatched to the Mediterranean, but Bloomberg reports Turkey has launched naval exercises in the same region.

“Turkey launched naval exercises off two Greek islands and announced energy exploration research in the same area, projecting its military might amid heightened territorial tussles in the eastern Mediterranean,” according to the report.

The naval drills are described as east and to the south of Rhodes and Kastellorizo, both which are among Greece’s easternmost islands, and not far from Turkey’s coast. The drills are expected to go multiple days running through this week.

 

Turkey’s military engaged in exercises earlier this summer of Libya, via TRT World.

Greece’s defense ministry says it’s prepared to “counter” any Turkish military maneuvers in a worsening situation which appears ripe for conflict, also given Turkey’s oil and gas exploration plans have been source of intense controversy for the past year, resulting in threatened EU sanctions for violations of Greek and Cypriot waters. This as an urgent Greek Government Council for National Security meeting is expected to kick off Monday in Athens.

“Turkey doesn’t recognize Greece’s claim that its territorial waters start immediately south of Kastellorizo, the most distant Greek outpost,” Bloomberg continues. “The gunnery exercises that will run through Tuesday, according to a Turkish navy website, are a message that Ankara won’t accept any agreement or move that would limit its own maritime interests in the Mediterranean.”

Though as of a week ago it appeared a cooling of tensions could be on the horizon, with Athens and Ankara said to be in negotiations, Turkey abruptly halted its diplomacy after the announcement of a Greece and Egyptian deal defining their exclusive economic zones in contradiction to Ankara’s interpretation.

Turkey denied the agreement as “null and void” — which means Turkey’s expansionist claims are being contested by pretty much every Mediterranean country, also including Israel. The exception of course, is the Tripoli-based Libyan Government of National Accord (GNA), which lately inked its own agreement with Turkey defining broad swathes of the Mediterranean as within Turkey’s rights.

Turkey has sought to argue that the so-called Turkish Republic of Cyprus, which remains unrecognized internationally, gives it expansive rights encompassing the whole of Cyprus, including areas that cut into Greece’s waters. The EU, with France’s Macron lately leading the way, has consistently sided with Greece and Turkey, condemning Turkey’s maritime violations of EU member states’ Exclusive Economic Zones.

end

LEBANON

My goodness: how stupid can they be..the initial cause for the fire and explosion was due to a welding torch on work in the building that contained the ammonium nitrate and fireworks, stored side by side. There is now a leak from dangerous chemicals

(zerohedge)

Dangerous Chemical Containers Still Leaking At Destroyed Beirut Port; Initial Cause Of Fire Revealed

In a continuing clean-up effort amid a dangerous and potentially toxic environment, leaking chemical containers are posing a challenge to crews working to inspect and secure the Beirut port section which was site of what’s being deemed the largest non-military munitions explosion in history on August 4.

“Chemical experts and firefighters are working to secure at least 20 potentially dangerous chemical containers at the explosion-shattered port of Beirut, after finding one that was leaking, according to a member of a French cleanup team,” the AP reports.

 

An international team, including French experts, is working to assess hazardous materials possibly leaking at the destroyed port, via AP.

Chemical containers were in many cases found punctured following the detonation of over 2,500 tons of ammonium nitrate.

“French and Italian chemical experts working amid the remains of the port have so far identified more than 20 containers carrying dangerous chemicals,” AP continues.

“We noted the presence of containers with the chemical danger symbol. And then noted that one of the containers was leaking,” one French chemical expert working at the site said. “There are also other flammable liquids in other containers, there are also batteries, or other kind of products which could increase the risk of potential explosion,” he added.

An international response team working with the Lebanese government is attempting to identify and contain any leaked chemicals at ground zero for the blast — which was feared to have emitted dangerous gases into the air over the city in the wake of last Tuesday’s deadly accident. The death toll has risen to over 200, including more than 6,000 injured, many of them severely.

More has been learned and confirmed about what precisely started the deadly fire which detonated the highly explosive and volatile ammonium nitrate, commonly used in fertilizer and professional explosives.

Lebanese media as well as Reuters has widely reported the fire started after welding work was done in the very warehouse containing the volatile chemical compound.

It appears the welding crew had no idea that both ammonium nitrate and (astoundingly) a cache of fireworks were being stored on site.

It was reportedly maintenance work on the door of Warehouse 12 – now location of a huge crater which has forever altered the port and coastline.

Port officials reportedly tried to warn top government officials and the Lebanese judiciary for years that the ammonium nitrate, stored there since 2013 in unsafe conditions, was a ticking time bomb in their midst.

END

6.Global Issues

Coronavirus update/the globe

New Zealand Revives Lockdown 2 Months After ‘Declaring Victory’ Over Coronavirus: Live Updates

Summary:

  • Auckland back on lockdown as first cluster of covid cases discovered in 102 days
  • Russia approves world’s first COVID vaccine
  • Global COVID total tops 20 million

* * *

They really thought they had it licked.

After surmounting what was at worst an extremely mild outbreak, New Zealand declared “victory” over the coronavirus two months ago, only to see a mild spike two weeks later.

Since the very beginning, New Zealand’s COVID-19 response effort, led by progressive prime minister Jacinda Ardern, was infused with the pinch of “compassionate” social justice, as the island nation focused on using it as an opportunity to look into how to recalibrate society to make more time for leisure by adopting a 4-day work-week.

But in its desperation to establish New Zealand as a liberal (and polar) antithesis to President Trump’s America, Ardern made what now looks to be one critical error: She lifted practically all of the country’s COVID travel restrictions after her sweeping “victory” declaration.

That, and slowly allowing businesses to reopen, has apparently helped give the virus all it needs for another flareup which, however comparatively minor to what’s going on just next door in Victoria, Australia, has forced Ardern to order a new lockdown, just as doubts about the efficacy of such lockdowns are growing.

New Zealand announced on Tuesday it would shut down Auckland, its largest city (though not the capital), after four new cases of the virus were confirmed in the city, the first sign of new domestic spread after 102 days without any domestic COVID cases.

NZ’s Director General of Health Ashley Bloomfield said the four confirmed cases were all within one family living in South Auckland. One patient is in their 50s. The family had no history of international travel. Family members have been tested and contact tracing – which might actually prove pretty effective with such a small body of the infected – is being carried out.

News of the cases sent panic across the country with media reporting people rushing to supermarkets to stack up, and businesses preparing to shut.

Prime Minister Jacinda Ardern said Auckland would return to a “level 3 restriction” beginning at noon local time on Wednesday as a “precautionary approach,” which would mean people should stay away from work and school, and gatherings or more than 10 people would again be restricted. Though, with so few cases, even these economically-constricting decisions might be overkill.

Though fortunately, these restriction would be applied for three days until Friday, which she said would be enough time to assess the situation, gather information and make sure there’s enough widespread contact tracing.

Meanwhile, the world finally crossed a major COVID-19 threshold last night: 20 million confirmed cases, according to JHU. As we reported last night.

As expected, Johns Hopkins has just confirmed that the number of confirmed COVID-19 cases worldwide has surpassed 20 million since the start of the pandemic. Of those, more than 700,000 have died.

It comes just days after the US, the world’s biggest outbreak, topped 5 million, and Brazil, the No. 2, topped 3 million.

Aside from this, perhaps the biggest COVID-related news of the day is coming out of Russia, where Vladimir Putin just hailed the approval of the country’s – and the world’s – first COVID-19 vaccine to be approved by a regulator.

end

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.1799 UP .0063 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 /GREEN

 

 

USA/JAPAN YEN 106.00  UP 0.010 (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 1.3124   UP   0.0047  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/

 

USA/CAN 1.3285 DOWN .0068 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  TUESDAY morning in Europe, the Euro ROSE BY 63 basis points, trading now ABOVE the important 1.08 level RISING to 1.1799 Last night Shanghai COMPOSITE CLOSED DOWN 38.96 POINTS OR 1.15% 

 

//Hang Sang CLOSED DOWN 131.51 POINTS OR 0.46%

/AUSTRALIA CLOSED UP 0,40%// EUROPEAN BOURSES ALL GREEN

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 513,25 POINTS OR 2.11%

 

 

/SHANGHAI CLOSED DOWN 38.96 POINTS OR 1.15%

 

Australia BOURSE CLOSED UP 40% 

 

 

Nikkei (Japan) CLOSED UP 420.30  POINTS OR 1.88%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1967.40

silver:$27.48-

Early TUESDAY morning USA 10 year bond yield: 0.62% !!! UP 4 IN POINTS from MONDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 1,20 UP 5  IN BASIS POINTS from MONDAY night.

USA dollar index early TUESDAY morning: 9 DOWN 6 CENT(S) from  MONDAY’s close.

This ends early morning numbers TUESDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing  TUESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.29% UP 2 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: +.03%  UP 1   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.28%//UP 1 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:0.95 UP 3 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 67 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: RISES TO –.48% 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 TUESDAY

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

Euro/USA 1.1765  UP     .0029 or 29 basis points

USA/Japan: 106.57 UP .576 OR YEN DOWN 58  basis points/

Great Britain/USA 1.3076 UP .0001 POUND UP 1  BASIS POINTS)

Canadian dollar UP 59 basis points to 1.3295

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY: AT 6.9493    ON SHORE  (UP)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  6.9420  (YUAN UP)..GETTING REALLY DANGEROUS

TURKISH LIRA:  7.24 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at +.03%

 

Your closing 10 yr US bond yield UP 6 IN basis points from MONDAY at 0.645 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 1.33 UP 8 in basis points on the day

Your closing USA dollar index, 93.51 DOWN 7  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 TUESDAY: 12:00 PM

London: CLOSED UP 103.75  1.71%

German Dax :  CLOSED UP 259.36 POINTS OR 2.04%

 

Paris Cac CLOSED UP 118.48 POINTS 2.41%

Spain IBEX CLOSED UP 209.60 POINTS or 2.97%

Italian MIB: CLOSED UP 557.54 POINTS OR 2.84%

 

 

 

 

 

WTI Oil price; 54.92 12:00  PM  EST

Brent Oil: 61.83 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    73.03  THE CROSS LOWER BY 0.42 RUBLES/DOLLAR (RUBLE HIGHER BY 42 BASIS PTS)

 

TODAY THE GERMAN YIELD RISES  TO –.48 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 :  41.59//

 

 

BRENT :  44.45

USA 10 YR BOND YIELD: … 0.628..up 5 basis points…

 

 

 

USA 30 YR BOND YIELD: 1.31..up 5 basis points..

 

 

 

 

 

EURO/USA 1.1732 ( DOWN 4  BASIS POINTS)

USA/JAPANESE YEN:106.52 UP .530 (YEN DOWN 530 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 93.73 UP 15 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.3045 DOWN 30  POINTS

 

the Turkish lira close: 7.25

 

 

the Russian rouble 73.25   UP 0.21 Roubles against the uSA dollar.( UP 21 BASIS POINTS)

Canadian dollar:  1.3313 UP 21 BASIS pts

 

German 10 yr bond yield at 5 pm: ,-0.48%

 

The Dow closed DOWN 104.53 POINTS OR 0.38%

 

NASDAQ closed DOWN 185.53 POINTS OR 1.69%

 


VOLATILITY INDEX:  24,62 CLOSED UP 2.49

LIBOR 3 MONTH DURATION: 0.256%//libor dropping like a stone

 

USA trading today in Graph Form

Liquidation: Stocks, Bonds, Bullion, & Bitcoin All Puked

Well that really did escalate quickly…

Today had the feeling of ‘liquidation’ (similar to March) as big-tech stocks (growth/value rotation), bitcoin, bonds, and bullion were all dumped unceremoniously.

While Nasdaq futs were bid along with everything else on Putin’s vaccine headlines overnight, it didn’t take long for the growth/value rotation pressure to kick in and send them lower as small caps (financial/energy dominant) surged… but late on things rolled over as the liquidations spread and the rest of the market tumbled lower on ‘stalled stimulus’ talks…

This 3-day losing streak for the Nasdaq is the worst in 5 months and the Dow/S&P broke its 7 day win streak.

The momo/growth vs value rotation continued to pick up…

Source: Bloomberg

Another serious quant-quake…

Source: Bloomberg

The early ‘value’ gains were erased in the last hour…

Source: Bloomberg

FANG stocks staged the typical BTFD effort after an initial tumble but accelerated lower later to foll the gap-up from July 31st…

Source: Bloomberg

VIX spiked 13 handles to 25 (after tagging a 20 handle intraday)…

Notably the S&P has a way to go until gamma flips (3218)…

Source: Nomura

But the Nasdaq’s gamma just flipped negative…

Source: Nomura

However, it was precious metals that caught the eye today as gold saw its biggest daily drop sine April 2013

And silver crashed by its most since Lehman (Oct 2008)

Sending the gold/silver ratio spiking…

Source: Bloomberg

Gold’s initial tumble tracked real yields perfectly but over-did as the yellow metal broke $2000 and ran stops…

Source: Bloomberg

So, Vladimir Putin (whose nation has been among the most avid buyers of gold for its reserves in recent years), announces a vaccine (which crushes the price of gold by the most since Lehman)? Does make you wonder eh?

But let’s not over-react too much eh?

But it was not just gold and silver were clubbed like a bay seal. Bonds puked led by the long-end, but as stocks started to accelerate lower in the last hour, things turned around and bonds were suddenly bid (McConnell said ‘stimulus talks are stalled’)…

Source: Bloomberg

With 10Y exploding 9bps higher (the biggest absolute jump since March) to its highest since July 8th and tagged the 50DMA…

Source: Bloomberg

…and then reversed notably…

Source: Bloomberg

We are all in big trouble if this gap is really starting to fill – a surge in rates of that scale will kill America’s balance sheet and a purge of that scale in stocks will be worse for sentiment still…

Source: Bloomberg

Simply put, The Fed is in a corner, it can’t let rates run (debt loads) on the back of hope-filled ‘reflation’ and if the growth-to-value rotation escalates further it will create a flight to safety in bonds… which will hurt financials and thus leave the two legs of the growth/value rotation hurting.

Bitcoin was monkeyhammered…

Source: Bloomberg

The dollar ended marginally higher after another roller-coaster today…

Source: Bloomberg

Oil prices were higher early on, excited about Putin’s vaccine but as the liquidation accelerated WTI was bashed back below $42…

And Dr.Copper also stalled and tumbled again at key resistance…

 

Finally, we note that today’s reversal came at an interesting moment in mega-tech valuation… Combine Apple Inc. and Microsoft Inc. with the FANG stocks, and the result is a record valuation. The average price-sales ratio among the so-called FANMAGs climbed as high as 8.33 last week, according to data compiled by Bloomberg. Their peak just surpassed the previous mark of 8.32, set in June 2018.

Source: Bloomberg

And one wonders if the ‘dead cat bounce’ is over (if nothing else, today’s reversal is interestingly timed)…

Source: Bloomberg

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

MARKET TRADING//USA

a)Market trading/THIS MORNING/USA

Nasdaq Tumbles Into Red, Erases Vaccine Spike As ‘Momo Meltdown’ Continues

All major US equity indices spiked in the early hours overnight on the back of optimistic vaccine headlines from Russia. However, while Russell 2000 futures are holding gains up over 1%, Nasdaq has tumbled into the red as the last few days trend of momo/growth vs value rotation appears to be accelerating…

As a reminder, the last two days have seen the biggest plunge in momentum since the early June quant-quake…

Source: Bloomberg

As the reflation trade inflects as money supply falls for two straight weeks…

Source: Bloomberg

…and momentum vs value flips…

Source: Bloomberg

The biggest two day rotation since the June collapse…

Source: Bloomberg

Cyclicals also dominated defensives…

Source: Bloomberg

Source: Bloomberg

If this is truly accelerating then that could begin to impact the mega-tech stocks driving the entire market, then look out below.

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

iii) Important USA Economic Stories

Devastation in the New York restaurant industry: 83% of restaurants unable to pay July rent

(zerohedge)

“Financially Devastated” – 83% Of NYC Restaurants Unable To Pay July Rent

The state of the New York City restaurant industry is in dire straits. July proved to be another disastrous month for restaurants, bars, and nightlife establishments across the city with a majority unable to pay rent in July, a new survey found.

NYC Hospitality Alliance surveyed about 500 owners and operators of eateries in the city, with 83% of respondents indicating they couldn’t pay the entire rent in July while 37% paid no rent at all.

“Restaurants and nightlife venues are essential to the economic and social fabric of our city, but they are struggling to survive and absent immediate and sweeping relief so many will be forced to close permanently,” said Andrew Rigie, executive director of The Alliance.

“While complying with the necessary pause, our industry has been uniquely and financially devasted. Small businesses urgently need solutions from government leaders at the city, state, and federal level, inclusive of extending the moratorium on evictions, extending the suspension of personal liability guarantees in leases, pausing commercial rent taxes, providing landlords with needed support, and infusing small businesses with enough cash to weather the storm,” Rigie said.

To make matters worse, 71% of owners and operators said landlords “would not waive portions of rent due to COVID-19.” About 61% said, landlords “would not defer rent payments,” while 90% of landlords “would not formally renegotiate leases.”

Indoor dining in the city remains halted, “outdoor dining service is not generating sufficient revenue to cover rent and other expenses, small business owners in the industry continue to express significant concerns about surviving the pandemic and staying viable in the future,” said The Alliance.

Through July, OpenTable restaurant data reveals foot traffic at eateries remains depressed.

We recently outlined how high-frequency data suggests New York City’s recovery has stalled, as well as the US recovery has reversed.

Some restaurants in the city are just calling it quits, liquidating everything they have on Facebook Marketplace.

Is New York City in a depression? 

END

Trump seriously considering a huge capital gains tax cut

(zerohedge)

Trump ‘Seriously Mulling’ Capital Gains Tax Cut

President Trump on Monday said he’s “very seriously” considering slashing the capital gains tax via executive order, according to Bloomberg.

“We’re looking at also considering a capital gains tax cut, which would create a lot more jobs,” said Trump during a White House news conference.

The president can’t unilaterally cut the 20% long-term capital gains rate without Congress, but some advisers tell him he could issue an executive order that would slash tax bills for investors when they sell assets. The move, known as indexing capital gains to inflation, adjusts the original purchase price of an asset when it is sold so no tax is paid on appreciation tied to inflation. –Bloomberg

The move would undoubtedly face legal challenges by Democrats – which is apparently why President George H.W. Bush’s administration ditched a similar plan, according to the report. Though given Trump’s weekend executive order bypassing Congress to renew lapsed coronavirus relief funds and delay payroll taxes – it’s hard not to wonder if the capital gains tax announcement is designed to goad his political opponents into openly opposing actions that benefit US taxpayers during an election year.

Last year, Trump passed on the idea of indexing capital gains to inflation despite urging from conservatives such as Sen. Ted Cruz (R-TX) and Americans for Tax Reform President Grover Norquist – saying “it’s not something I love.”

Most of the benefit of the tax cut would go to America’s highest earners, with the top 1% receiving 86% of the benefit, according to Bloomberg, citing 2018 estimates by the Penn Wharton Budget Model – and could reduce federal tax revenue by $102 billion over a decade.

Trump is also considering a “cut in the middle income tax” which would require Congress to pass legislation – a move which is unlikely to happen before the end of the year.

END

A must read,,,,

Tom Luongo

Luongo: Trump Won Re-Election This Weekend

Authored by Tom Luongo via Gold, Goats, ‘n Guns blog,

Trump Destroys Abusive Democrats In Stimulus Showdown

President Trump won re-election this weekend with his four executive orders.

We haven’t even reached the DNC convention in Milwaukee and it looks to me like this election season is over.

I know the polls keep trying to convince me that Joe Biden, most likely suffering from dementia, is leading President Trump but I just don’t buy it.

And neither do the Democrats.

Because if they did they wouldn’t be so desperate to push through unlimited mail-in voting as their political hill to die on.

And die on it they have.

Speaker Nancy Pelosi held up a new round of stimulus legislation over this issue. The massive gap between the GOP and DNC proposals highlight only part of the political divide between the two sides (see graphic, H/T Zerohedge).

The real divide was in enshrining in law the kind of mail-in voting which would ensure near unlimited cheating and ballot harvesting which would give the Democrats their best chance at “winning the election.”

Pelosi thought she had Trump cornered on this because he had to cave to spend that $1.7 trillion he’s already collected through treasury auctions which prove the Big Lie that the dollar is about to die false.

But all he had to do was make payroll tax irrelevant for a majority of taxpayers in this country.

Go over those Executive Orders he signed. And each one attacks a core position the Democrats carve out for themselves in the public discourse.

  1. Defer Payroll Tax Collection — Here Trump is doing at least two things. First, he’s a Republican lowering taxes on the poor and middle class. Second, he lowers the cost of U.S. labor, cuts away red tape and makes it easier for businesses in a cash flow crunch to stay open not having to worry about paying monthly/quarterly tax payments. This attacks a core Democrat talking point, “Republicans don’t care about the little guy, we do!”
  2. Extend Student Loan deferments – This is one step closer to debt jubilee on debt that, again, freezes people in place, dealing with debt servicing rather than creating demand in the real economy for goods and services. This also attacks the banks who made these predatory loans, which most student loan debt is, which undermines the “Occupy Wall. St.” talking point that all the money goes to the banks.
  3. Extend Renter and Mortgage Eviction Moratorium – Again Trump hits the banks where they live by stopping the eviction of people whose income the Federal and State governments destroyed with their COVID-19 lockdown orders. This is a direct attack on the DNC’s plan to see the banks throwing millions of people out of their homes during the height of the election campaign. Restates the argument that the GOP is only for the rich vulture capitalists.
  4. Lower and extend Unemployment Assistance — Trump’s no dummy. At this point the budget deficit is ludicrous. Lowering the assistance through the election season, again, says he’s helping and they are obstructing. It’s not perfect, but it extends the fiscal cliff people are facing until after the election allowing him to make more sweeping changes to the tax code while keeping people in their homes, fed and capable of maintaining some semblance of normality. Trump claims the ‘I care about you’ moral high ground.

The only thing the Democrats could do in response was fulminate about funding Social Security. But that’s an irrelevant argument to anyone other than Boomers who aren’t paying into the system anyway.

Their checks are coming and will continue to come.

High unemployment only makes Social Security’s future less secure. The people out of work aren’t contributing to Social Security now anyway. If you want to get the economy back on its feet you have to let the money circulate.

Removing the deduction from people’s paychecks highlights for the poorest working people in this country just how much of a burden that 15% actually is on their ability to build wealth or even maintain a home.

I never thought I’d see the day where an American President called the social engineers’ bluff about enforced retirement savings. Social Security is a pay-as-you-go death tax for so many people and a blatant wealth transfer system from younger generations to older ones.

This depression will kill off a lot of people, including those Social Security recipients Andrew Cuomo effectively murdered in New York, before they collect on it.

When coupled with inflationary fiat funny money it is an egregiously (and ingeniously) abusive system which ensures the lower and middle classes never get off the hamster wheel no less get out of the cage it’s in.

And it needs to end, at least in its current form.

Between social security and abortion they’ve been the two biggest shibboleths in American politics for the past fifty years. Only one of them is relevant this time around because Trump just made it one.

Trump threatened during the press conference to make the payroll tax exemption permanent if re-elected as well as revamp the capital gains tax. He understands, better than anyone, how difficult it is to build wealth while paying off debt.

Social Security, in its purest form, is a 12.4% interest payment on your labor before you even begin working. It’s a bureaucratic nightmare and robs people of the choice as to how to deploy their capital at the earliest stages of their careers.

Enforced savings for the future for people without a present is not just moronic, it’s counter-productive.

It’s not disciplined, it’s truly abusive.

And once people see how much easier their lives are without carrying that burden before they make their first dollar, the more they will reject all of this social engineering on which the Democrats have based their entire political persona.

This is the first step towards sunsetting the biggest unfunded liability in the U.S. today.

End the fiction that people like me will ever collect Social Security. Begin the hard political fight to face the reality of its insolvency and use the manufactured COVID-19 crisis to get that done.

Local governments are out there today telling you to live in fear of a virus and that they can’t protect your home from rioters and looters.

The cops are overwhelmed and, worse, should be disbanded.

And these are the same people who are also telling you that if you give them power over the Federal Government they will take away all those guns you just bought to protect yourself.

They are also the ones saying they can best safeguard your retirement by extracting one-eighth of your earnings before you ever show up to work for the first time.

Morover, next week they’ll tell you something different because Trump took away another one of their talking points.

With these executive orders, regardless of their legality at this point, Trump is single-handedly changing the entire narrative on which the federal government is premised.

Between now and the election the next narrative to fall will be the idea DNC is running a campaign for any other reason than for its leadership to stay out of jail for treason.

But that narrative only sticks after Trump has made sure things don’t get worse for those already abused by them.

*  *  *

Join My Patreon if you like calling out the lies of Commies. Install the Brave Browser if you want to end Google’s panopticon supporting them.

end

It begins:  overall delinquency rates soar and this will surely create a housing crisis

(zerohedge)

Mortgage Mayhem Begins: Overall Delinquency Rates Soar As Housing Crisis Lurks 

Readers may recall as early as April we outlined how mortgage lenders were preparing for the most significant wave of delinquencies in history as tens of millions of people lost their jobs because of the virus-induced recession.

Mortgage lending standards have since tightened as mass foreclosures and mortgage market mayhem appears to be ahead.

The Trump administration has found creative ways to prevent the foreclosure wave during the election year – which has placed millions of homeowners in forbearance programs to shift the mortgage crisis until after November. 

Property data and analytics firm CoreLogic published a new report Tuesday warning about early-stage delinquency rates are starting to rise.

CoreLogic said on a national level, 7.3% of mortgages were 30+ days or more overdue (in May). This is a 3.7-percentage point increase in the overall delinquency rate compared to 3.6% in May 2019.

Stages of delinquency: 

  • Early-Stage Delinquencies (30 to 59 days past due): 3%, up from 1.7% in May 2019.
  • Adverse Delinquency (60 to 89 days past due): 2.8%, up from 0.6% in May 2019.
  • Serious Delinquency (90 days or more past due, including loans in foreclosure): 1.5%, up from 1.3% in May 2019. This is the first year-over-year increase in the serious delinquency rate since November 2010.

National Overview of Loan Performance

CoreLogic’s chief economist Dr. Frank Nothaft said, “the national unemployment rate soared from a 50-year low in February 2020, to an 80-year high in April. With the sudden loss of income, many homeowners are struggling to stay on top of their mortgage loans, resulting in a jump in non-payment.”

Government and industry relief programs have provided a temporary safety net for millions of homeowners unable to service their mortgage. The housing crisis is expected to begin after the election:

“U.S. serious delinquency rate to quadruple by the end of 2021, pushing 3 million homeowners into serious delinquency,” said CoreLogic.

Frank Martell, president and CEO of CoreLogic, said, “barring additional intervention from the Federal and State governments, we are likely to see meaningful spikes in delinquencies over the short to medium term.”

All states logged increases in overall delinquency rates in May from a year earlier. New Jersey and Nevada, both still hot spots for the virus, experienced the largest overall delinquency gains with 6.4 percentage-point increases each in May, compared to one year earlier. New York again remained atop the list with a 6.1 percentage-point increase, while Florida experienced a gain of 5.8 percentage points.

On the metro level, nearly every U.S. metropolitan area posted at least a small annual increase in their overall delinquency rate, with tourism destinations such as Miami, Florida (up 9.2 percentage points), and Kahului, Hawaii (up 8.8 percentage points), posting two of the largest increases. Odessa, Texas — which has a local economy strongly tied to the oil industry — also logged a considerable increase, posting an annual gain of 9 percentage points.

Meanwhile, over 75% of all metro areas logged at least a small increase in their serious delinquency rate. Odessa, Texas, and Laredo, Texas, tied for largest increase with gains of 1.1 percentage points each. McAllen, Texas; Midland, Texas and Hattiesburg, Mississippi all followed with gains of 0.7 percentage-points each. -CoreLogic

And while the Trump administration is now in “bailout everyone mode” – their ability to dissolve the financial crisis in its entirety will likely not succeed but only push off part two of the crisis until after the election.

END

Washington Post columnist shreds NBC for CCP propaganda on the origins of the coronavirus

(zerohedge)

WaPo Columnist Shreds NBC For Spouting CCP Propaganda On Wuhan Lab

On Monday, NBC News published a puff-piece for the Wuhan Institute of Virology – giving controversial lab which ‘could pass for a college campus’ a glowing review after a five-hour visit and interviews with several employees.

The report slams the Trump administration for showing “no credible proof to back up claims that the coronavirus was either manufactured at or accidentally leaked from the lab,” while helping the CCP dispute an April Washington Post report over US Embassy cables warning of safety issues at the facility.

The author of that WaPo piece, Josh Rogin, has just shredded NBC News over their report – which he says contains ‘several errors.’

Rogin continues (condensed thread via Twitter, emphasis ours):

Wang Yanyi, director of the WIV, told NBC reporters the U.S. officials visited in March 2018, two months after the first cable was written. The truth is they visited three times, both before and after the Jan. 2018 cable. Did U.S. officials make an entire visit? Not likely..

That calls into question Wang’s credibility. She also says biosafety was not discussed. Again, calling several U.S. diplomats fabricators? NBC reports that without any pushback. But there’s more…

The NBC reporters toured the lab, as if that would tell them anything. What did they expect to find, a piece of paper they forgot to throw out that says “Coronavirus Origin Evidence”? It’s absurd to think that has any probative value. But there’s more…

This, from Yuan, the Wuhan institute’s vice director is interesting and true: “So far, there is no evidence to show that the novel coronavirus jumped from animals to people in Huanan Seafood Market in Wuhan.” No evidence.

Overall, the Chinese scientists can’t be blamed for toeing the Party line. They deviate from that under penalty of death. But U.S. news organizations must do better than presenting a walk around a lab and an interview with falsehoods in it as telling us anything about the virus.

Rogin then explains why the truth matters:

iv) Swamp commentaries)

 

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

Tech Hammered: Nomura Believes “Reflation Signal” Has Been Triggered

Nomura’s Charlie McElligott believes that the M2 money-aggregates “reflation signal” observation discussed last week is actually in the process of “triggering” real-time.  This, McElligott notes, is marking a possible inflection away from what has been (risk-aversion and savings-tied slowdown) behind … the recent “Momentum” trade in US Equities…One by one the world’s legendary deflationists are taking one look at the following chart of the global money supply (as shown most recently by DB’s Jim Reid) and after seeing the clear determination of central banks to spark a global inflationary conflagration, are quietly (and not so quietly) capitulating… https://www.zerohedge.com/markets/tech-hammered-nomura-believes-reflation-signal-has-been-triggered

@charliebilello: Odds of a Trump victory have moved up in betting markets to 45%, highest in 2 months..https://predictit.org/markets/detail

Bettors on PredictIt GREATLY underestimated Trump in 2016.  The day before the 2016 Election, DJT was 21% to win.  https://www.predictit.org/markets/detail/1296/Which-party-will-win-the-2016-US-Presidential-election

@jennfranconews: CA Gov. Newsom says President Trump’s plan to extend federal unemployment benefits would cost the state $700 million per week, warning it would lead to “massive cuts.”  (Pres. Trump’s EO calls on states to commit to providing $100 of the $400 per week benefits.)

 

Fox’s @ChadPergram: [Senate Majority Leader] McConnell: Democrats think they smell an opening they have wanted for years — to make Uncle Sam bail out decades of mismanagement and broken policies in places like New York, New Jersey, and California.

@jennfranconews: President Trump says he’s considering a capital gains tax cut and income tax cut for middle income families

Office of the DNI @ODNIgov Statement by @DNI_Ratcliffe“This hyperpartisan smear piece with demonstrably false accusations against both the Trump Administration and the nonpartisan men and women of the Intelligence Community is embarrassing even for The New York Times.”

Senate chairman subpoenas FBI Director, ex-State Russia-Ukraine probe intensifies

Sen. Ron Johnson says evidence shows Joe Biden’s family engaged in a ‘glaring conflict of interest.’

    “Many in the media, in an ongoing attempt to provide cover for former Vice President Biden, continue to repeat the mantra that there is ‘no evidence of wrongdoing or illegal activity’ related to Hunter Biden’s position on Burisma’s board,” the senator wrote. “I could not disagree more.”…

     “Isn’t it obvious what message Hunter’s position on Burisma’s board sent to Ukrainian officials?” Johnson asked. “The answer: If you want U.S. support, don’t touch Burisma. It also raised a host of questions, including: 1) How could former Vice President Biden look any Ukrainian official (or any other world leader) in the face and demand action to fight corruption? 2) Did this glaring conflict of interest affect the work and efforts of other U.S. officials who worked on anti-corruption measures?”…

https://justthenews.com/accountability/russia-and-ukraine-scandals/senate-chairman-subpoenas-fbi-director-ex-state-official

@Rasmussen_Poll: 49% of Democrats think it’s likely #bidenVPpick will become president in the next four years, although that compares to 73% of #Republicans and 57% of voters not affiliated with either major party… https://bit.ly/3gKe64P

U.S. Attorney General Barr says the left wants to tear down system https://reut.rs/2Ds2epP

“They’re not interested in compromise; they’re not interested in dialectic exchange of views. They’re interested in total victory,” Barr said of the left. “It’s a secular religion. It’s a substitute for a religion.”

 

@thebradfordfile: WOW. The looting and rioting in Chicago got so bad last night, the media is actually reporting it. Democrats own all of it.

 

@chicagotribune: Hundreds of people swept through the Magnificent Mile and other parts of downtown Chicago early Monday, smashing windows, looting stores and clashing with police for hours https://t.co/oUd3diKaDm

 

2 shot, more than 100 people arrested, 13 officers injured amid widespread downtown looting

CPD Supt. David Brown called the looting “pure criminality” in a news conference Monday morning, not connected to any protest…

https://chicago.suntimes.com/crime/2020/8/10/21361546/magnificent-mile-looting-vandalism-property-damage-michigan

@DylanGresik: @nbcchicago reporting 12+ stores on Jewelers Row in the Loop completely cleared out.

 

Chaos in Chicago: Bridges Raised to Prevent Gun-Toting Looters Getting Downtown

https://www.zerohedge.com/political/chicago-raises-bridges-prevent-gun-toting-looters-getting-downtown

Access to Downtown Chicago to Be Restricted Overnight: Police

Brown said access to the city’s downtown will be “restricted” from 8 p.m. to 6 a.m…

https://www.nbcchicago.com/news/local/access-to-downtown-chicago-to-be-restricted-overnight-police/2319750/

@bennyjohnson: [Chicago Police] Superintendent David Brown: These looters acted the way they did because they feel emboldened by the lack of consequences of arrests in the past months. “We have to have consequences for the arrests that Chicago Police officers make”.

Tribune’s @John_Kass: Tribune reports Kim Foxx drops more felony cases than her predecessorBut I wonder: who dropped millions in campaign cash to help elect Kim Foxx? Hmm. Who endorsed her?…

Kim Foxx drops more felony cases as Cook County state’s attorney than her predecessor, Tribune analysis shows – For the three-year period analyzed, Foxx’s office dropped 8.1% of homicide cases, compared with 5.3% under Alvarez, the Tribune found. Under Foxx, the office dropped 9.5% of felony sex crime cases; the rate was 6.5% for Alvarez…  https://t.co/tSUFUFopFT

@joshdcaplan: Prosecutor Kim Foxx’s office has dismissed 25,183 felony cases, more than predecessor… Rev. Jesse Jackson slams Chicago looting as “humiliating, embarrassing, and morally wrong.”

Babylon Bee: Chicago Mayor Drives Past Looters to Arrest 7-Year-Old Having a Birthday Party

“The streets are now safe,” Lightfoot said as she led the boy to a Chicago PD squad car… On her way back from arresting the youngster, Lightfoot pulled over to lecture a rioter who wasn’t wearing a mask. Once he had put his mask back on, she told him to go about his business.

https://babylonbee.com/news/chicago-mayor-protects-citizens-by-arresting-7-year-old-having-a-birthday-party/

Controversial Bronx judge releases alleged rapist without bail  https://trib.al/flUl4iJ

@ZaidJilani: Martin Luther King Jr. – who by this point had been assaulted multiple times, had his home bombed twice, had a cross burned on his lawn – responds to an interviewer who asks him why he never considered leaving America. [Dr. MLK Jr.: “The United States is home for me… in spite of its short comings, naturally there are things in the United States and people in the United States that I love… The democratic creed is a marvelous one… We are moving in the right direction… this problem can be solved…”] https://twitter.com/ZaidJilani/status/1292912839141855233

Babylon Bee: Bible Experts Determine Goliath Died of COVID-19 https://t.co/bnOQpkCC82

Well that is all for today

I will see you WEDNESDAY night.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: