Harvey Organ Should Be An Interesting Read Today

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Harvey Organ Should Be An Interesting Read Today

This topic is nominally a five day a week summary of the Harvey Organ Daily Gold and Silver Report (http://harveyorgan.blogspot.com/).  I summarize the key gold and silver statistics he reports, condense some of the articles he reproduces on gold, silver, and the economy, and I usually add some of my own comments to the mix.  My emphasis is on protection of yourself, your family, and your assets by converting ALL paper assets to precious metals, particularly silver.  All paper assets will eventua

This topic is nominally a five day a week summary of the Harvey Organ Daily Gold and Silver Report (http://harveyorgan.blogspot.com/).  I summarize the key gold and silver statistics he reports, condense some of the articles he reproduces on gold, silver, and the economy, and I usually add some of my own comments to the mix.  My emphasis is on protection of yourself, your family, and your assets by converting ALL paper assets to precious metals, particularly silver.  All paper assets will eventually become worthless.  Only gold and silver will protect wealth.  A global economic collapse is inevitable.  The collapse will most likely be followed by WWIII.  As Ranting Andy says, "Protect yourself, and do it now!"  God, grub, guns, and gold (Son, snacks, security, and silver) are your best insurance against what is coming.

DayStar

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Harvey 25 Aug 12

This is DayStar (DS) with the Saturday Harvey Report. 

DS:  The FDIC did not seize any banks this weekend.

DS:  Harvey notes Comex Yesterday added 1.216 million oz (Moz) of silver and 1.648 Moz on Thursday.  Since it has taken Sprott 44 days to get 7 Moz, the ability of Comex to get large deliveries at will seems a little suspect.

DS/Harvey:  At around 3:30 pm Friday, the CME released the COT (Commitment of Traders) report from August 14.2012 through to August 21.2012.  It always goes from a Tuesday to a Tuesday, and since they don't release the data until Friday, it is always stale.  It is useful to see what the positions of the bullion banks are, even though they have stopped reporting on them by name.  Before they stopped reporting, the silver bullion banks listed were JPM, HSBC, and Bundesbank. 
The gold COT: The bankers again went ver large net short on the week and this is bearish from the standpoint that the banks will raid in an attempt to unload the shorts.  However their Friday attempted raid, for about the first time in year, failed because the large and small speculators loaded the boat with gold futures (net 27,282 contracts).  However, the banks have been raiding almost every day, sometimes several times a day, so a raid is routine and expected.  Sooner or later the banks' luck will run out, because gold is being accumulated at prices below $1600 (gold) by large buyers (probably sovereign wealth funds like China and Russia, Turkey/Iran, India, and the Saudis) and the buying is not by the day-trading momentum chasers, but by strong hands that buy and hold.
The silver COT:  This week's results were neutral.  It seems that the bankers are loathe to supply the necessary paper.  Probably, the bankers know the physical is gone, people are increasingly standing for delivery and taking the physical out of the system, and they don't dare offer too much they don't have at too low a price.  Also, silver has been held so low and costs have gone up so much that mine production is falling, as there is no incentive to produce at a loss.

Simon Black (Soverign Man):  The committee which is drafting the platform for next week’s US Republican National Convention has announced that they are including a proposal to return to the gold standard. Big news, but ironic… given that it was a Republican president (Richard Nixon) who abolished the gold standard in the 1970s. Regardless, it’s nice to see the issue thrust into the spotlight.  From a practical perspective, to back the $10 trillion M2 money supply, the US would have to control all of the gold mined from the beginning of the world, or they would have to devalue the dollar with respect to gold and make gold more expensive.

Chris Powell (GATA):  Matterhorn Asset Management's Egon von Greyerz stuck his neck way out with King World News, predicting stunningly fast moves up in gold and silver, with gold reaching $4,000 without a major correction. Some of us pray to live to see the day when gold reaches just $1,800 and figure that $4,000 and higher won't be reached any time soon without central banks getting ahead of the collapse of their currencies, getting out of gold's way, and forthrightly remonetizing the metal. But none of us will hate von Greyerz if he's off by a few days.

DS: They keep talking about the problems in Greece that cannot be fixed.  They could be fixed, but nobody is even trying.  We rebuilt Germany out of the ashes by building factories and roads and bridges thereby providing jobs for the people.  The Marshall plan kick started the economy by reinstituting economically useful allocations of money.  The money they are spending now is creating even more debt thereby making the problem worse.  None of the loan money goes to the people except through subsistence level welfare and pension payments that are not producing much of anything.  The banks have been the recipients of the real wealth, and they have squirreled it away in the financial system, refusing to loan to anyone who might put it to productive use. 

John Embry (Sprott Asset Management):  With the world's central banks now major gold buyers, the reality of significant bullion shortages now lies heavily upon us.  Add to this the staggering amount of paper gold in ETF, futures, pooled accounts and the like and the magnitude of the emerging shortage can easily be appreciated.  This obvious shortage is eacerbated by the recent discovery that in many allocated gold accounts, the metal isn't even readily available, having been hypothecated and, in many case, re-hypothecated.  That is an extremely explosive situation, given that gold is now primed for a powerful spike--one that may even surprise the metal's most ardent supporters.  Meanwhile, an annual fiscal deficit in the US of well over US$1 trillion has created a serious debt trap.  It is naive to think that any big increases in taxes or decrease in spending could rectify American's problems without triggering an economic collapse.  As in Europe, there is only one course of action left to shield the US from a deflationary collapse, and that is quantitative easing (money printing) to infinity.  In addition to the already existing scarcity of gold, QE will drastically increase demand for physical bullion.  In addition to these bullish factors, Embry cites the woes of Barrick Gold Corp and expresses the view that Barrick's production problems are not exclusive to Barrick, but are common to all large miners, and these problems will be reflected in lower global gold mine production thus further restricting the already dwindling supply of gold and exacerbating the already tremendous pressures on price. 

Harvey's comments on Friday's price action(basis 1:30 PM EST)

Harvey's comments on Friday's price action wrote:

Gold closed up 20 cents at Comex closing time at $1669.80. 
Silver also rebounded to post a positive gain of 16 cents to $30.61.

Thursday, Aug 23rd Gold and Silver Action (basis 1:30 PM EST)
http://harveyorgan.blogspot.com/2012/08/republican-party-platform-discussing.html

Total, Aug (Gold), Sep (Silver), Oct (Gold) Open Interest

In silver 

Quote:

The total silver Comex OI rose to 3 year highs coming in at 129,496 rising by 2627 contracts from Thursday's level of 126,869.  The bankers already knew this figure Thursday night when the raid was orchestrated to commence starting immediately in Thursday's access market, through the European trading session and then onto Wall Street. There was only one problem for the bankers :  they were met with a huge demand for physical and paper contracts which nullified the raid. The August silver contract mysteriously saw its OI rise by 24 contracts,( from 80 to 104) despite only 1 notice filed on Thursday.  We thus gained an additional 23 or  115,000 oz of silver standing. We are now exactly one week away from first day notice which will occur on Friday August 31.2012. In this month of September we had the OI fall by 3186 contracts from 32420 down to 29,234.  All of these guys rolled into December as they continue the play the paper game.

In gold

Quote:

The total gold Comex OI fell by 6 contracts from 137 to 131.  We had 22 notices filed on Thursday so in essence we gained another 16 contracts or 1,600 oz of additional gold.
The September gold contract month saw its OI fall by 15 contracts from 1099 down to 1084.
The next official delivery month for gold is October and here the OI rose by 203 contracts from 27,633 to 27,836.

Volume

In silver

Quote:

The estimated volume at the silver Comex was quite good coming in at 59,923.
The confirmed volume on Thursday was a real humdinger coming in at 94,470. 
The bankers must have been busy and they were joined by our high frequency traders but their attempts to quell demand failed.

In gold

Quote:

The estimated volume today was on the low side coming in at 105,179. 
The confirmed volume on Thursday was a little better at 165,748.

Inventory Numbers

In silver:

Quote:

The silver vaults were busy again on Friday.
The dealer at Brinks received the following:
1. Into Brinks:  598,359.29 oz
The customer had no deposits of silver.

We had the following customer withdrawal:
i) Out of Brinks: 2070.000 oz
ii) Out of Delaware: 984.50 oz
iii) Out of Scotia: 650,643.01
Total withdrawal:  653,697.51 oz

We had one one tiny adjustment of 94.00 oz leave the dealer at Scotia and re-enter the customer at Scotia.
The registered or dealer inventory rests this weekend at 36.157 million oz
The total of all silver rests at 139.919 million oz.

In gold:

Quote:

Activity inside the gold vaults was very quiet again tonight.
The only transaction was a deposit into the HSBC vault of a customer to the tune of 4,469.78 oz
We had no dealer activity and no customer withdrawal.

We did have a tiny adjustment of 103.40 oz at Scotia whereby gold left the customer to enter the dealer. Quite possibly this was a lease arrangement.

The total registered or dealer gold inventory rests this weekend at 2.754 million oz or  85.66 tonnes of gold.

Delivery Notices

In silver:

Quote:

The CME (Chicago Mercantile Exchange, Inc) notified us that we had a whopper of a delivery notice to the tune of 103 contracts or 515,000 oz. 

In gold:

Quote:

The CME notified us that we had 35 notices filed for 3500 oz of gold. 

Contracts Left To Be Delivered + Month-To-Date Summary

In silver:
For those that are interested in the alleged bullion in the vaults of Comex by date, you can see it here:
http://www.investmenttools.com/futures/metals/Base_Metals_Inventory_London_and_Shanghai.htm#Comex_silver

Quote:

The total number of notices filed so far this month total 266 for 1,430,000 oz.  To obtain what is left to be filed upon, I take the OI standing for August (104) and subtract out Friday's notices (103) leaves us with just 1 contract left to be served upon or 5,000 oz.

Thus the total number of silver oz standing in the month of August is as follows;

1,430,000 oz (served) +  5,000 oz (served)  =  1,435,000 oz
we gained a huge 115,000 oz of additional silver on Friday standing.

If I am a betting man, I will wager than this level will increase as the August month closes out.

Let us wait and see.

DS: I have been saying since the beginning of the month that there would be sizable amounts of heretofore off the books silver contracts added as the month progressed.  The cartel is having less success, particularly in Europe, of settling in fiat.  Those two large purchases announced earlier in the week of 5 and 10 million ounces, that they would not deliver off the LBMA system in actual physical have served notice to anyone paying attention that the LBMA is out of the real goods (they can't deliver 15 Moz of physical) and all they can do now is write unbacked contracts and deliver lists of fake bar serial numbers.  The boyz are increasingly reported (Jim Sinclair) to have resorted to "leasing" even allocated metal.  However, we have recently discovered (MFG, PFG) that ANY deposit in the banking system is hypothecated (not stored, but reused by the bank), and the depositors have last (or no) rights when push comes to shove.  Allocated account holders have recently experienced long delays in taking delivery their allocated metal, and when they did get it, the bars were bars minted long after they opened the allocated account.  Third party storage of metal is an unacceptable risk either here or abroad, as you will likely have no way to retrieve metal stored in a foreign vault.  If you don't hold it in your hand, you don't own it, and even then you will probably have to fight to keep it.  You will also need food, water, and guns to give you the strength to defend it.

In gold:

Quote:

The total number of notices filed so far this month total 9709 for 970900 oz of gold.  To obtain what is left to be filed upon I take the OI standing for August (131) and subtract out Friday's notices (35) which leaves us with 96 notices or 9,600 oz of gold.

Thus the total number of gold ounces standing in this delivery month of August is as follows:

970,900 oz (served) + 9,600 oz (to be served upon) = 980,500 oz or 30.49 tonnes of gold.
We gained 1600 oz of additional gold.  The 30.49 tonnes of delivery notices is very impressive for August!
We are witnessing high amounts of gold settling on the gold Comex with no gold coming in. Strange!!

The Bloomberg Baltic Dry Index (BDI) was up 0.28% at 717. WTI crude was down 0.12 today at 95.85. Brent closed at 115.14, down 0.67. The spread between Brent and WTI was 19.84, up 0.06. US Treasury 30 year closed at 2.790 up 0.004. The dollar was up 23 points at 81.59. The PPT/Dow was up 100.51 settled well above the important level of 13,000 at 13,157.97. FaceBook closed at 19.41 down 0.03 (0.16%) and silver closed at $30.82. The Nov CCI was 573.30, down 1.65. September wheat was down 7.00 at 867.40. September corn was 802.20 down 6.40! October lean hogs were down 0.200 at 72.375.  September feeder cattle were down 0.525 at 142.950. September copper was 3.4835, down 0.0090. September natural gas was down 0.100 to close at 2.702. September coal is 56.68 down 0.70.

Thank you for reading the Harvey Report.  There is much more on Harvey's blog http://harveyorgan.blogspot.com.
Goooood day!

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Thanks

For your efforts Daystar. Just dropping a note so I can follow along in my history.

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Very cool...

...thanks DayStar.yes    

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Lindsey Williams on Govt Shutdown

Lindsey Williams, a sometimes confidant of the elites, got information from a source that Raytheon had received a classified message relayed by a person who worked there to whom he personally talked that Raytheon should prepare for the financial shutdown of the US Government in the very near future.  He relayed this information in a 24 Aug interview on the John McGowan internet show.  Many things could be the cause of the shutdown.  One thing could be the devaluation of the dollar over a weekend and the bank holiday that would follow.  Another could be the government reaching the debt ceiling and the chaos that comes out of that not being raised.  It looks like the the plan, though, is to shut down the government rather than to fix the problem.

Lindsey Williams also said the elites have stopped the Liberty Rig drilling http://www.bp.com/sectiongenericarticle.do?categoryId=9039709&contentId=7058099 because the price of oil is not high enough, and they are almost to the level (40,000+ feet) where they will hit a gargantuan abiotic oil reservoir as the Russians have already done.  They are also using the time to strengthen the plumbing on the well, as it must withstand over 50,000 psi in order to not blow out.  They don't want a repeat of the Gulf oil disaster.  I saw an article recently where they estimated there are oil reserves worth $700 trillion underneath the arctic, which appears to be why they are using HAARP to melt the arctic ice cap.  http://nsidc.org/arcticseaicenews/ At least this time they had sense enough to drill on land and not over a mile deep of open water.

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Oil IS Abiotic

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This is DayStar (DS) with the

This is DayStar (DS) with the Monday Harvey Report.

Bill Murphy (GATA): There is still the matter of JP Morgan having a big problem with their short silver position, according to one of our sources … which has been expounded upon here since early July. Don’t know when this scandal will surface, but it will and the ramifications of JPM’s sordid affair in silver are likely to fuel more buying by the bulls.

Harvey: Turkey last month saw its gold reserves jump by 1/5th (20%). Its total reserves are now 9.3 million oz or 289 tonnes of gold. Not only are they supplying the Arabs, but they are buying for themselves and Iran. Russia's central bank increased its gold reserves by around 0.6 million troy ounces last month, taking its total holdings to 30.1 million ounces. Other central banks with significantly smaller reserves - Belarus, Sri Lanka, Moldova, Ukraine, Kyrgyz Republic and Kazakhstan - added to their reserves in July, but the increases were incremental. Kazakhstan, which purchased 45,000 troy ounces, was the largest.

Dan Norcini: The bullion banks saw some major short covering in gold and silver last week. Speculators are also rushing back into the precious metals. From Harvey's vantage point, he saw some short covering by some banks, but our two illustrious friends, JPMorgan and HSBC (from the COT report) continued to supply massive non backed paper. DS: Norcini saw the specs coming back, but the OI does not really support that. The total gold OI today was only up 6477 on thin trading. Silver OI fell 2388 contracts.

Jens Weidmann (Bundesbank) describes debt monetization as nothing but an addictive drug. Once you rely on central banks buying of debt, there becomes the need for more and more debt until the body (the economy) breaks down. Explicitly monetizing the debt, "can be addictive as a drug." Angela Merkel of Germany says she will support this monetization if the governments of Europe will yield their sovereignty and move the unified budget to Brussels, the capitol of the EU. DS: Germany is on the hook to bail out the failing states of Europe. Merkel has decided to hold their feet to the fire. If they are intent on destroying the Euro by printing more Euros (monetizing the debt), then everyone give up their sovereignty, give Brussels the right to set budgets (and he that has the gold makes the rules/laws), and then print to their hearts' content. She knows full well the sovereign states will not give up their sovereignty until their economies completely collapse and their people are starving, but it is the objective the elites want to achieve out of this monetary crisis. The US handles regional economic imbalances by slight differences in interest rates in the various regions. The Euro never had regional banks that could do that. The result of all of the different approaches and needs of the various sovereigns can be summarized in one word: "volatility", which is what is about to come back to Europe with a vengeance as the fundamental problem at Europe's core is made all too clear once more: 17 countries in the "Union", 17 different languages, 17 election cycles, and 17 different rates of going broke, all of which, however, are converging toward unity with each passing day.

Harvey on Mark J. Grant (Author of Out of the Box): Greece has asked for more time and because it needs more time, obviously it needs more money so Greece Euro can continue to function in the Euro. France and Germany will always state publicly that they want Greece to remain in the Euro. However, they say Greece must abide by the terms, and because Greece is not and cannot, there probably will not be any more money advanced. If they do advance money, it will disappear faster than you can say boo. Any advanced money only kicks the can down the alley for a few months. Sooner or later, the alley runs into a dead end. The German populace have had enough, particularly as their own economy is now headed into recession, and over the weekend, the Dutch Prime Minister stated that he has had enough as well.

Grant's second topic is Dexia (Belgian Bank), and today Dexia announced another 16 billion euros of losses. This must be shared by: 60.5% France, 36.5% Belgium and 3.0% Luxembourg. As Mark Grant pointed out on many previous occasions on this subject, many contingent liabilities are now coming to the surface and rearing their ugly heads over this huge bank (it's bigger than the GDP of Belgium). The problem here, of course, is that the debt now must be added to the ledgers of the central banks of France and Belgium.

The third topic is Portugal. These guys were one of the first to be bailed out, as the elites cut them off at the knees by calling loans and by over indebting them through wasteful construction schemes. This year they were scheduled to have a positive revenue of 2.5%. Well, sorry to tell you folks, but they again came in with a negative 3.5% growth in revenues. Unemployment in that country hovers around 15%. With a budget deficit in the neighbourhood of 4.5 billion euros, these guys will need another bridge loan of about 3 billion euros. Portugal's largest trading partner is Spain, yes the basket case of Castille.

Next Grant talks about China hitting the wall. Sales of mining equipment have come to a complete standstill. As well, the coal industry has come to a complete halt. Grant advises us to stay away from companies that have a major export to China as exports of many capital goods have ground to a halt.

Finally, grant talks about the Dutch Prime Minister and the Austrian Finance Minister who stated over the weekend that they have had enough of Greece's excuses and lack of progress and its financial black hole.

Graham Summers (Phonix Capital Research): The world’s central banks are in a bind. That bind is that their monetary policies are becoming less and less effective at placating the markets while the consequences of said policies (higher costs of living, the targeting of troubled banks in the credit market, etc.) are increasing. As a result of this, central banks have begun resorting to more and more "verbal intervention" or promises to "act" without ever acting. For over two years now, we’ve been hearing time and again that the European crisis was "solved" and that things would improve. It’s obvious now that all of those claims were lies. Indeed, we’re now at the point that politicians are openly asking central bankers not to discredit attempts to prop up the markets. How desperate do things have to be that a politician asks a central banker not to use certain words during public appearances as Merkel asked Bundesbank Head Jens Weidmann? The answer: very, very desperate. Even in a best case scenario, the bankrupt nations asking for bailouts are going to fund 30% of the very bailout fund that will bail them out!?!? we’re fast approaching the REAL storm over there: when countries actually start defaulting and leaving the Euro. When this happens, we will see the return of systemic risk. And the US will not prove immune to it. With China entering a hard landing and the US re-entering a recession the potential for another 2008 type event is higher than at any point in the last three years.

Tyler Durden: Today the Chinese stock market did something unthinkable: it plunged to fresh post 2009 lows on news so bad they would have been enough to send the stock markets of such "developed" bizarro economies as the US and Europe limit up. The catalyst, as Bloomberg reports, was that Chinese industrial companies’ profits fell in July by the most this year, a government report showed today, adding to evidence the nation’s economic slowdown is deepening. Income dropped 5.4 percent last month from a year earlier to 366.8 billion yuan ($57.7 billion), the fourth straight decline.

Zero Hedge: As the European double, and in some cases triple, dip, continues to take its toll on the periphery (in some cases retroactively, with Spain realizing that 2010 and 2011 GDPs were mysteriously lower than expected, previously printing at -0.1% and 0.7%, revised to -0.3% and 0.4%), the core continues to be dragged ever more into the quicksand of insolvency. The latest confirmation came from Germany, where for the fourth month in a row the IFO survey showed that firms have grown more pessimistic for the 4th month in a row in August, declining from 103.3 to 102.3, on expectations of a 102.7 print.

Harvey's comments on Monday's price action

(basis 1:30 PM EST)

Quote:

Gold closed up today to the tune of $2.60 with the final Comex closing coming in at $1672.40. However the star of the day still belongs to silver closing up 43 cents finishing the session at $31.04. However in the access market, the bankers are getting ready for a raid as they whacked our two precious metals:

Access market closing prices:

gold....$1663.60

silver....$30.72

Our regulator clowns are nowhere to be seen!!

 

Friday, Aug 24th Gold and Silver Action

(basis 1:30 PM EST)

http://harveyorgan.blogspot.com/2012/08/turkeys-gold-reserves-rise-15-to-93.html

Total, Aug (Gold), Sep (Silver), Oct (Gold) Open Interest

In silver

Quote:

The total silver Comex OI saw its OI fall a bit from 129,496 to 127,108 for a loss of 2388 contracts. Please note again how different silver plays as opposed to gold. The August silver month saw it's OI falter by 79 contracts from 104 to 25. You will recall that we had a very big notice on Friday of 103 contracts. So in essence we gained 24 contracts or 120,000 oz of additional silver standing this month. We are now 4 days away from first day notice which is this Friday. Thursday night we will get first day deliveries and if I am up to it I will report on it for you. On Friday, we get to see how many silver longs will stand for delivery in September. In gold, September is an off month.

In gold

Quote:

The total gold Comex OI rose by 6477 contracts from 410,679 to 417,156. It seems that we have a few brave souls willing to take on the bankers. I wish them luck. The OI in gold has advanced smartly these past few days. If you couple this fact with the high OI in silver, you can bet that the bankers are anxious for another raid. The weakness in gold and silver equities have given us a strong hint of a raid tomorrow. However the biggest clue is the whacking of the both metals in the access market. So prepare for a raid tomorrow.

The August gold delivery month saw its OI fall from 131 to 99 for a loss of 32 contracts.

We had 35 notices filed yesterday so in essence we gained 3 contracts or an additional 300 oz of gold standing. The September gold month saw its OI fall 40 contracts down to 1044.

The next official delivery month is October and here the OI rose 543 contracts from 27,836 to 28,379.

Volume

In silver

Quote:

The estimated volume today was huge at 85,048.

The confirmed volume yesterday was also very good at 61,206.

It seems that we have some players wishing to take on the bankers in the silver arena as well.

In gold

Quote:

The estimated volume today was extremely large at 84,933 compared to Friday's level of 64,304.

However, we did have several rollovers which aided the numbers.

Inventory Numbers

In silver:

Quote:

The CME reported brisk activity inside the silver vaults.

We had one tiny deposit of 958.1 oz into Delaware.

We had the following silver withdrawal:

i) 275,267.04 oz into Brinks

ii) 674,304.15 oz into Scotia

Total withdrawal: 949,571.19 oz

We had no adjustments

Thus the dealer or registered inventory rests tonight at 36.157 million oz.

The total of all silver rests at 138.97 million oz.

In gold:

Quote:

Finally, we had some activity in the gold vaults.

We had the following customer deposit:

i) 64,195.21 oz into HSBC

ii) 192,900.000 oz enter into JPMorgan. (If it is physical that represents exactly 6,000 kilo bars).

Total deposit: 257,095.21 oz

We had the following withdrawal of gold:

i) From HSBC: 128.60 oz

ii) from Manfra: 128.60 oz

iii) From JPMorgan: 59,848.629 oz

Thus JPM brings in 192.900.000 oz of gold and withdraws out an odd lot of 59,848.629 oz

It seems that JPMorgan can do whatever it wants as the regulators are totally blind to all activities.

We had one tiny adjustment of 482.25 oz of gold which left the dealer to repay a customer at Manfra for a prior liability.

The total registered or dealer gold rests tonight at 2.754 million oz.

Delivery Notices

In silver:

Quote:

The CME reported that we had another good delivery notice day for silver to the tune of 25 for 125,000 oz.

In gold:

Quote:

The CME notified us that we had 7 notices filed for 700 oz of gold.

Contracts Left To Be Delivered + Month-To-Date Summary

In silver:

For those that are interested in the alleged bullion in the vaults of Comex by date, you can see it here:

http://www.investmenttools.com/futures/metals/Base_Metals_Inventory_London_and_Shanghai.htm#Comex_silver

Quote:

The total number of notices filed so far this month registers 304 contracts or 1,520,000. To obtain what is left to be served upon, I take the OI standing for August (25) and subtract out today's delivery notices (25) which leaves us with 9 notices or 45,000 oz left to be served upon our longs.

Thus the total number of silver ounces standing in this delivery month of August is as follows:

1,520,000 oz (served) + 45,000 oz (to be served upon) = 1,565,000 oz.

Early in the month I promised to you a 1 million plus in delivery notices. We may end up close to 2 million oz.

In gold:

Quote:

The total number of notices filed so far this month is represented by 9716 or 971,600 oz of gold. To obtain what is left to be served upon our longs, I take the OI standing for August (99) and subtract out today's notices (7) which leaves us with 92 notices or 9,200 oz left to be served upon our longs.

Thus the total number of gold ounces standing in August is as follows;

971,600 oz (served) + 9,200 oz (to be served upon) = 980,800 oz or 30.51 tonnes of gold.

This is quite a showing for deliveries. Everyone wonders how they are settling with no gold entering as a deposit at the gold Comex to the dealer.

The Bloomberg Baltic Dry Index (BDI) was unchanged at 717 as London was closed today. WTI crude was down 1.67 today at 95.47. Brent closed at 113.47, down 0.38. The spread between Brent and WTI was 18.00, down 1.84. US Treasury 30 year closed at 2.757 down 0.033. The dollar was up 6 points at 81.66. The PPT/Dow was down 33.30 and settled well above the important level of 13,000 at 13,124.67. FaceBook closed at 19.15 down 0.26 (1.33%) and silver closed at $30.72. The Nov CCI was 571.00, down 2.30. September wheat was down 5.40 at 862.00. September corn was 794.40 down 7.60. October lean hogs were up 0.875 at 73.250. September feeder cattle were up 0.350 at 143.000. September copper was 3.4765, down 0.0070. September natural gas was down 0.049 to close at 2.653. September coal is 55.83 down 0.85.

Thank you for reading the Harvey Report. There is much more on Harvey's blog http://harveyorgan.blogspot.com.

Goooood day!

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This is DayStar (DS) with the

This is DayStar (DS) with the Tuesday Harvey Report.

DS: Silver options expired today, so the bankers will probably pound silver to the best of their ability through the end of the week in an effort to persuade the option holders that it is not worth it to convert options into a futures contract deliverable in September. However, when the dismal US confidence numbers came out today, there was not enough bankers supplying paper to keep the raid going in silver. The raid stopped in its tracks due to the bad news and the fear it engendered in investors.

Harvey: Spain saw a massive run on their banks in August as their deposit base dropped a gigantic 5% month over month. Not only are they experiencing massive unemployment, but now they also have a huge run on their banks. The total drop in deposits for the year equates to 56% which just about wipes out all equity of every single bank in Spain. Also today, Catalonia not only officially asked for 5 billion euros, but also demanded no conditions be placed on the bailout. Good luck to them. Draghi announced that he would not attend Jackson Hole conference so as to not spoil the fun for Bernanke. DS: Draghi's decision to not go to Jackson Hole at least bumps my estimation of him a little. From what we hear about Jackson Hole, it is a homosexual frenzy among world leaders along with worship of Baal and possibly child sacrifice; the most degrading spectacle imaginable. And don't forget that they are coordinating plans on how they plan to shaft the little people over the coming year. We can expect some fit hitting the shan after Jackson Hole. As you look around, it is virtually impossible to find a bright spot on the world horizon. What's coming is not going to be pretty.

Harvey: Russia announced a huge 18.6 tonnes of gold added to the reserves. The total now stands at a record for them of 936.6 tonnes of gold. Kazakhstan added another 1.4 tonnes as this tiny nation now has 103 tonnes.  I will bet that they have 103 tonnes more than the USA. I reported yesterday that Turkey added a whopping 45 tonnes, and their total reserves are now 289 tonnes of gold. Not only is Turkey a gateway into Iran and the Arab world, but they have decided to store gold as official reserves for their own self preservation.

GoldCore: China is continuing to quietly accumulate their reserves and diversify out of their massive $3.24 trillion of foreign exchange reserves. China’s gold reserves remain miniscule as a percent of their overall foreign exchange reserves – less than 2%. In marked contrast to the US, Germany and even France and Italy when gold’s share of national forex reserves is over 70%. China’s undeclared official gold reserve purchases remains an elephant in the room in the gold market with very little coverage of or analysis of the People’s Bank of China’s quiet and untransparent accumulation of gold. In the coming months, one can expect that China will announce that they have doubled their gold reserves to over 2,000 tonnes. This announcement may again shock the market and drive prices higher as did their announcement in April 2009 which surprised those less informed about the gold market. The People’s Bank of China will not telegraph its intentions or purchases to the market as doing so would lead to a surging gold price and to a further devaluation of its foreign exchange reserves. China is trying to position the yuan or renminbi as an alternative global reserve currency and large gold reserves are essential if this is to be achieved.

Chris Powell (GATA): Sprott Asset Management's John Embry tells King World News that gold and silver have built massive bases that will support explosive moves as central banks get desperate with money creation.

Due to the overproduction of steel in China, and the sharp drop in raw material prices, we see that this led to a margin compression over there and thus weakness in China's economy. Steel inventories continue to rise sending a continued downward price on raw materials which will thus have a considerable material effect on North American base metal producers. DS: Since the majority of silver is a byproduct of base metal production, if base metal production cuts back sharply, silver production will follow suit.

Harvey: This morning from Japan, we see the Prime Minister, Azumi cut his assessment on the Japanese economy. In an alarming statement he said he sees a risk that government funding drying up. DS: If Azumi says he sees a risk, you can bet your bottom dollar it is not merely a risk, it is happening. The Japanese have by far the worst demographics in the world. They have failed to reproduce themselves, and now have a drastically reduced young population and a very large group of aged Japanese and a very large group of baby boomers that are now retiring. Japan's population has patriotically bought Japanese bonds for many years and provided the government with revenue. Now instead of buying bonds, the Japanese are redeeming the bonds to support retirement, and bond redemption is killing the Japanese revenue. The land is polluted with radiation, many companies left Japan, they don't have adequate labor, and the yen, the stock market, and exports are facing disaster. Japan is in a world of hurt.

Harvey: Oh OH!!, France's third largest bank, Credit Agricole posted a huge drop in earnings of 67% because of their losses in the ownership in its Greek bank, Emporiki, and their loss in their stake in the Intesa SanPaolo bank in Spain. They purchased Emporiki in 2006, and it has lost money in every single year. Credit Agricole, led by Chief Executive Officer Jean-Paul Chifflet, is shutting its riskiest Emporiki investment-banking activities and weighing offers from Greece’s three largest lenders for its Emporiki Bank unit in the country, which is stuck in a five-year recession. The bank said it’s still studying the bids. DS: "Studying the bids" as in "you guys can't be serious!" smiley

Reuters: A makeshift bomb exploded outside a National Bank of Greece branch in Athens early on Tuesday, causing minor damage but no injuries, police said. Windows were smashed and four parked cars suffered minor damage in the blast, which took place about 4 a.m (0100 GMT) in the western suburb of Ilion." ZH: Luckily nobody was hurt. However, it would not look good on the front page of German papers to find that while the general Greek population is not ungrateful for the continued ECB recycling of ponzi cash, some budding Greek entrepreneurs have decided to take out an ATM machine or two on their own. smiley

Harvey's comments on Tuesday's price action (basis 1:30 PM EST)

Quote:

Gold finished the session at $1665.50 down $5.50 on the day.

Silver which is the object of great interest to our bankers closed down 22 cents at $30.82.

Monday, Aug 27th Gold and Silver Action (basis 1:30 PM EST)

http://harveyorgan.blogspot.com/2012/08/a-huge-bank-run-in-spaincatalonia.html

Total, Aug (Gold), Sep (Silver), Oct (Gold) Open Interest

In silver

Quote:

The total silver Comex OI continues to play havoc to our bankers. The total OI fell marginally by 650 contracts from 127,108 contracts to 126,458. Silver had a good day yesterday so it is reasonable to assume that we lost a few banker shorts. We are now 3 days away from first day notice this Friday. The September silver OI fell from 26,191 to 21,386 with almost all of our paper players rolling into the big December contract. The estimated volume today was quite good at 72,771.

In gold

Quote:

The total Comex gold open interest fell by 534 contracts from 417,156 to 416602. The raid

did not commence until the access market, so those figures will be in tomorrow's data. The fall in OI was marginal. The August gold month saw its OI fall by 14 contracts from 99 to 85. We had only 7 notices filed yesterday so we lost 7 contracts or 700 oz of gold standing for delivery. The Sept gold contract saw its OI fall by 132 contracts down to 912. The active delivery month of October saw its OI fall by a tiny 164 contracts from 28,379 to 28,215.

 

Volume

In silver

Quote:

The confirmed volume yesterday was superb at 100,019.

It seems that we have some very determined investors wishing to tackle the likes of JPMorgan and company.

In gold

Quote:

The estimated volume at the gold Comex today was weak at 105,327 as the bankers could not put much emphasis behind their raiding tactics.

The confirmed volume yesterday was also extremely weak at 82,424.

Inventory Numbers

In silver:

Quote:

We had quite a day over at the silver vaults.

The dealer at Brinks received the following:

i) Into Brinks dealer: 296,186.72 oz

We had the following customer deposit:

i) Into Brinks; 604,463.87 oz

ii) Into HSBC: 644,110.87 oz

Total deposit: 1,248,574.74 oz

Somebody must be expecting huge silver delivery notices.

We had the following silver withdrawal:

i) 10,032.000 oz

I always suspect something is fishy when you have exactly 10,032.000 oz

most silver bricks are odd weights.

We had no adjustments.

The dealer inventory rests tonight at 36.453 million oz

The total of all silver inventory rests at 140,505 million oz.

In gold:

Quote:

Strange day at the gold vaults.

We had a tiny deposit of 511.60 oz into Brinks.

We also had a tiny withdrawal by the dealer at Brinks to the tune of 100.14 oz.

Now comes the fun part:

You will recall yesterday I reported that JPMorgan deposited into their customer account the following:

192,900.000 oz which works out to exactly 6,000 kilo bars. To me the entry is suspicious.

It gets better:

JPM also reported, yesterday, a withdrawal from the customer account of the following:

59,848.629 oz

And now today: JPM reported an addition back to the customer account of the following;

59,958.167 oz. What happened with all of those kilo bars which are exactly 32.15 oz?

I think JPMorgan is fooling around with multiple pieces of hypothecated and re-hypothecated paper gold.

We had an adjustment of 1398.958 oz of gold removed from the dealer at:

You guessed right: JPMorgan, and this gold re enters back to the customer's account.

The registered or dealer inventory rests tonight at 2.752 million oz or 85.5 tonnes of gold.

Delivery Notices

In silver:

Quote:

The CME reported that we had a huge 83 notices filed upon our longs.

In gold:

Quote:

The CME reported that we had 18 notices filed for 1800 oz of gold.

Contracts Left To Be Delivered + Month-To-Date Summary

In silver:

For those that are interested in the alleged bullion in the vaults of Comex by date, you can see it here:

http://www.investmenttools.com/futures/metals/Base_Metals_Inventory_London_and_Shanghai.htm#Comex_silver

Quote:

You will recall yesterday that we had exactly 83 notices ready to be filed upon, so it looks like the month of August is complete. We still can have some notices filed in the next few days. If I see that, then we know that bankers need some badly needed silver. The total number of notices filed so far this month total 387 for 1,935,000 oz. We have completed the month of August for the silver contract.

Thus the total number of silver ounces standing in August is as follows:

1,935,000 oz (served) + zero oz to be served upon = 1,935,000 oz.

We gained a huge 210,000 oz of additional silver standing.

In gold:

Quote:

The total number of notices filed so far this month is represented by 9734 contracts or 973,400 oz of gold. To obtain what is left to be filed upon, I take the OI standing for August (85) and subtract out today's notices (18) which leaves us with 67 notices or 6700 oz left to be served upon our longs.

Thus the total number of gold ounces standing in this month of August is as follows:

973400 oz (served) + 6700 oz (to be served upon) = 980,100 oz (30.48 tonnes of gold).

We lost 700 oz of gold standing.

The Bloomberg Baltic Dry Index (BDI) was up 0.98% at 724. WTI crude was up 0.86 today at 96.33. Brent closed at 113.18, down 0.29. The spread between Brent and WTI was 16.85, down 1.15. US Treasury 30 year closed at 2.743 down 0.014. The dollar was down 29 points at 81.37. The PPT/Dow was down 21.68 and settled above the important level of 13,000 at 13,102.99. FaceBook closed at 19.34 up 0.19 (0.99%) and silver closed at $30.90. The Nov CCI was 572.00, up 1.00. September wheat was down 7.20 at 854.60. September corn was 789.40 down 5.00. I read a report today that said a hands on inspection of fields in the Midwest showed crops worse than what had already be predicted. These falling corn and wheat prices do not reflect what the boots on the ground are seeing. It looks to me like they are manipulating these commodities up making a very bad situation awful. Like silver, these food commodities will run out, and then we will have a commercial signal failure and chaos! They cannot produce food from paper futures. October lean hogs were unchanged at 73.250. September feeder cattle were up 0.200 at 143.800. September copper was 3.4625, down 0.0140. September natural gas was down 0.039 to close at 2.614. September coal is 57.05 up 1.22.

Thank you for reading the Harvey Report. There is much more on Harvey's blog  http://harveyorgan.blogspot.com

Goooood day!

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Nice...

....wow, loads of info. Nice job :-)

__________________

An epic lack of foresight, accuracy and humility over 3 1/2 years ago. Once a pumper, always a pumper!
http://www.tfmetalsreport.com/comment/170246#comment-170246

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Thanks

Thanks DayStar. Great presentation of the information! Shall be checking in regularly.

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DS

Thanks for the summary. Great work.

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I appreciate the kudos.  Many

I appreciate the kudos.  Many thanks for the expressions of appreciation.

DayStar

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Harvey Organ

Harvey Organ was one of the first sites I started to read regularly as I became interested in PM's. 

One of the mainstays of Bullion bank/Comex analysts, relevant and intuitive.

A fine gentleman.

Thank You, Daystar.

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Harvey 29 Aug

This is DayStar (DS) with the Wednesday Harvey Report.

Harvey led off with a bit on a new movie being produced by LinePlot Productions (http://www.silvercirclemovie.com/). It is a dramatized movie about currency manipulation set in our world after a massive economic collapse. It has tyranny, explosions, monetary mayhem, romance, and rebels. The trailer is here: http://www.youtube.com/watch?feature=player_embedded&v=DkQQ4MLasgs It could be interesting. The trailer certainly was not lacking for action. They also have an article at http://silverunderground.com/2012/08/do-they-or-dont-they-silver-market-manipulation-and-the-u-s-treasury/ which is an excellent review of the silver market manipulation issue -- the evidence for manipulation, the mechanisms by which it might be implemented, and the unanswered questions about it. The review is headlined "Do They or Don't They? Silver Market Manipulation and the U.S. Treasury".

Ben Protess (Dealbook): As many of you are aware of, the CFTC to the tune of 5:0 passed the new definition of swaps. However, in small print, they have until Jan 1 2012 to get their house in order.

Tyler Durden: China’s credit risk is rising, probably much more rapidly than the official non-performing loan (NPL) statistics indicate. SocGen is concerned as they think we are only seeing the beginning of the end of this NPL cycle. While they do not anticipate an outright banking crisis, as the government will certainly keep intervening at each turn on the way to avoid such an outcome, this is no reason to feel relieved. The reason we should not be relieved is a major structural element in China's NPL cycle as many industries have massive excess capacity.

Zero Hedge: As the dominoes resume tumbling, Valencia follows Catalonia in demanding a EUR3.5 billion bailout.

Tyler Durden: This note from Bloomberg takes the proverbial biscuit. In the "most mean-spirited, ruthlessly executed corruption," India's politicians and their criminal syndicates have looted as much as $14.5bn in food from one province alone. 57,000 tons of food meant for the devastatingly poor of the Uttar Pradesh region sits in a government storage facility five football fields long. The 'theft' has blunted the nation's only weapon against mass starvation, and as Supreme Court commissioner Naresh Saxena notes: "What I find even more shocking is the lack of willingness in trying to stop it," as the Minister for Food, who stands charged with attempted murder, kidnapping, armed robbery and electoral fraud, has diverted more than 80 percent of the food. Saxena asks, "Who is a person who holds a below poverty line ration card? A person of no influence; you can just tell him to buzz off."

Graham Summers (Phoenix Capital Research): Mr Draghi… a few questions for you…You say that whatever measure you take… it will be "enough" to support the Euro. Seeing as you’ve already spent over €1 trillion via your LTRO 1 and LTRO 2 schemes only to find that:

The uptick in EU banks shares lasted less with each new scheme

The bond and credit markets punished those banks who sought funding via these vehicles

…my question is… what exactly is "enough"? Obviously €1 trillion wasn’t. Would €2 trillion be? What about €5 trillion? Seeing as banking deposits at the troubled PIIGS banks exceed €5 trillion alone, it seems even €5 trillion wouldn’t be enough to backstop the EU and get it out of this mess. So could you quantify "enough" please?

My second question would be… if you were to announce some "Hail Mary" policy of monetizing trillions of Euros worth of sovereign and banking debt, how would you stop the Euro from imploding?

You’ve no doubt observed the impact that QE 1 and QE 2 had on the US Dollar. How would you stop the Euro from collapsing if you were to announce an amount that would indeed be "enough" to contain the EU Crisis?

My third and final question… thus far the ECB, when acting in concert with Germany and the IMF, has failed to contain the Greek crisis (there is now talk of Greece needing a third bailout)… how exactly do you intend to handle Spain or Italy (economies and banking systems many multiples larger than those of Greece)?

 

Harvey's comments on Wednesday's price action

(basis 1:30 PM EST)

Quote:

Gold finished the session at: $1659.80 down $6.70.

The price of silver fell by 5 cents to $30.77.

 

Tuesday, Aug 27th Gold and Silver Action

(basis 1:30 PM EST)

http://harveyorgan.blogspot.com/2012/08/valencia-now-asks-for-bailoutanother.html

 

Total, Aug (Gold), Sep (Silver), Oct (Gold) Open Interest

In silver

Quote:

The total silver Comex OI saw its OI fall from 4681 contracts from 126,458 down to 121,777. The August contract month saw it's OI fall from 83 to 11 for a loss of 72 contracts. We had 83 delivery notices filed yesterday so in essence we gained 11 contracts or 55,000 oz of additional silver ounces standing. We are now 2 days away from first day notice and here the OI fall by 6304 contracts from 21,386 to 15,082 which is understandable as these paper players rolled into December.

In gold

Quote:

The total gold Comex open interest rose by 9,957 contracts from 416,602 to 426559. No wonder the bankers supplied the paper yesterday as they knew the raid was on for today.

The August delivery month saw its OI fall from 85 to 66 for a loss of 19 contracts. We had 18 delivery notices yesterday and as such we lost 1 contract or 100 oz of gold standing.

The September gold month saw its OI decline by 163 contracts to 749.

The October delivery month saw its OI rise by 6286 contracts from 28,215 to 34,503.

 

Volume

In silver

Quote:

The estimated volume at the silver Comex came in at 78,667 which is a good day.

The confirmed volume yesterday was also very good at 76,362.

In gold

Quote:

The estimated volume at the gold Comex came in at 120,715 which is a fair day.

The confirmed volume yesterday was also fair at 113,679.

 

Inventory Numbers

In silver:

Quote:

The activity inside the silver vaults were very quiet today.

The only transaction was a withdrawal of 300,239.62 oz form Scotia.

We had one adjustment whereby 15,634.44 oz leaves the dealer and re enters the customer at HSBC.

The registered or dealer inventory rests at 36.43 million oz

The total of all silver rests at 140.205 million oz.

In gold:

Quote:

It looks like JPMorgan was at it again. Today that famous deposit of JPMorgan of yesterday resulted in a withdrawal from its customer account as follows:

i) Out of JPMorgan: 59,883.085 oz

And this gold landed in a customer account of HSBC:

i) Incoming deposits to the customer:

i) 59,848.594 oz.

It seems that this 59,000 oz is a hot potato.

We had the following gold adjusted out of the customer at JPM into the customer at JPMorgan to the tune of 29,551.655 oz. JPMorgan was a busy camper today.

The registered or dealer inventory rests tonight at 2.782 million oz or 86.5 tonnes of gold.

 

Delivery Notices

In silver:

Quote:

The CME notified us that we had 11 notices served today for 55,000 oz of silver.

In gold:

Quote:

The CME notified us that we had 43 notices filed for 4300 oz of gold.

 

Contracts Left To Be Delivered + Month-To-Date Summary

In silver:

For those that are interested in the alleged bullion in the vaults of Comex by date, you can see it here:

http://www.investmenttools.com/futures/metals/Base_Metals_Inventory_London_and_Shanghai.htm#Comex_silver

Quote:

The total number of notices filed so far this month total 398 for 1,990,000 oz. To obtain what is left to be served upon, I take the OI standing for August (11) and subtract out today's notices (11) which leaves us with zero notices left to be served upon.

Thus the total number of silver oz left to be served upon is as follows:

1,999,000 oz (served) + zero notices to be served upon = 1,990,000 oz.

We gained 11 contracts or an additional 55,000 oz standing in silver.

In gold:

Quote:

The total number of notices filed so far this month total 9,777 for 977,700 oz. To obtain what is left to be filed upon, I take the OI standing for August (66) and subtract out today's notices (43) which leaves us with 23 notices or 2,300 oz of gold left to be served upon our longs.

Thus the total number of gold ounces standing in this delivery month of August is as follows:

977,700 oz (served) + 2,300 oz ( to be served upon) = 980,000 or 30.48 tonnes of gold.

We lost 100 oz of gold standing for delivery.

The Bloomberg Baltic Dry Index (BDI) was down 0.83% at 718. WTI crude was down 0.84 today at 95.49. Brent closed at 113.08, down 0.10. The spread between Brent and WTI was 17.59, up 0.74. US Treasury 30 year closed at 2.768 up 0.025. The dollar was up 18 points at 81.55. The PPT/Dow was up 4.49 and settled above the important level 13,000 at 13,107.48. FaceBook closed at 19.10 down 0.24 (1.24%) and silver closed at $30.73. The Nov CCI was 575.15, up 3.15. September wheat was (finally) up a large 30.60 at 885.40. September corn was 810.20 up 20.60. October lean hogs were up 0.450 at 73.700. September feeder cattle were up 0.400 at 144.100. September copper was 3.4425, down 0.0200. September natural gas was up 0.020 to close at 2.634. October coal is 57.95 down 0.17.

Thank you for reading the Harvey Report. There is much more on Harvey's blog http://harveyorgan.blogspot.com.

Goooood day!

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Why All Signs Point To A Major Stock Market Crash This Fall?

Michael Snyder: Is the stock market going to crash by the end of this year?  The second half of 2012 looks a little bit more like the second half of 2008 with each passing day. For example, credit default swaps are soaring just like we saw back during the last financial crisis.   These gangrenous instruments were a primary cause of the 2008 decline.  Now they are back bigger than ever, and their effects are starting to become apparent.  One anonymous banker was even bold enough to predict a “market shock” for “September or October”….

“I think we are heading for a market shock in September or October that will match anything we have ever seen before,” said a senior credit banker at a major European bank."

 Dennis Gartman, the publisher of the Gartman Leter, has dumped all of his stocks at this point.  George Soros has dumped all of his stock in banking giants JP Morgan, Citigroup and Goldman Sachs and bought gold ETFs.  Are they just being paranoid?  Now there are persistent rumors that Morgan Stanley is in big trouble and that it will be allowed to fail and probably take its 100,000 private stock brokerage accounts down with it.  Much of southern Europe is already experiencing depression-like conditions.  Unemployment in both Greece and Spain is well above 20 percent and both economies are steadily shrinking.  Spanish banks are experiencing a nationwide bank run with deposits dropping over 5% in August.  But the truth is that all of Europe is in big trouble.  Even German companies are slashing jobs.

And if you think that the global elite are not aware of what is happening then you have not been paying attention.  This summer the global elite have been preparing very hard.  Either they are getting very paranoid or they know things that we do not.  If you want to catch up on what the global elite have been up to recently, check out these three articles that I have published previously….

-”Are The Government And The Big Banks Quietly Preparing For An Imminent Financial Collapse?

-”Startling Evidence That Central Banks And Wall Street Insiders Are Rapidly Preparing For Something BIG

-”Jacob Rothschild, John Paulson And George Soros Are All Betting That Financial Disaster Is Coming

Sourced from: http://etfdailynews.com/2012/08/28/why-all-signs-point-to-a-major-stock-market-crash-this-fall-indexsp-inx-spy-tza-gld-faz/

FWIW,

DayStar

 

 

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Mogambu Guru

Mogambu Guru has been around for a long time and can write some very funny but informative articles about gold and silver, but I don't see his work very often.  Since Harvey posted too late for me to get it done last night (he had out-patient surgery), I present this piece of the latest Mogambu Guru for your entertainment and education.

Mogambu: Bonds, thanks to all the money being pumped out by the Federal Reserve et al, are now priced at astronomical price levels to produce yields that are at ludicrous, laughable, historical lows! It's just So Freaking Obvious (SFO) that THIS ain't a-gonna last!
 
I can see that you are suspicious of my analysis, so I will postpone asking you for $5,000,000 in start-up money, in cash, in small unmarked, non-sequential bills, to, you know, kind of "get the ball rolling", and instead provide you with an illuminating example of why I am entranced by the idea of shorting bonds.
 
Suppose that interest rates are 6%. The theoretical market price for a $1,000 bond paying 6% is therefore $1,000.
 
So what is the theoretical price of a $1,000 bond with a 6% coupon when interest rates are 0.1%, which is close to zero (the result of massive, monstrous monetary inflation running at an astronomical 9% of GDP while actual, non-manipulated consumer-price inflation is running at over 10%, which is the very, VERY weird and scary situation today, meaning that bonds are ridiculously mis-priced)?
 
The bond is worth, almost unbelievably, $60,000. Big difference, huh?
 
So what is the theoretical price for that same $1,000 bond yielding 6% when interest rates are at 10%? A paltry $600.
 
With my usual aplomb and Supreme Mogambo Arrogance (SMA), I am 100% certain that I am perfectly, absolutely correct that price inflation will soar because of all of this over-creation of money and credit by the damnable banks.
 
I am likewise 100% certain, with quarts of SMA oozing from every pore of my body, that interest rates will soar, too, and thus the prices of the bonds will collapse as their yields are forced higher to make them more attractive to reluctant bond buyers who will be horrified to see roaring price inflation everywhere.
 
If bonds behave classically, as they usually do (until now) and things go exactly to plan, as they usually don't, traders should now sell-short a bond, getting the whopping $60,000, paying out that meager $60 per year interest payment, and then a year later, when interest rates have soared to 10% -- and probably more! -- like they should, acting in response to the horrible monetary and price inflations all around him or her, the trader would close the short position by buying the bond for $600, making gross nominal profit of $59,400, less expenses. Nice work!
 
On the other hand, this entails a lot of risk, which I hate because I am a gutless little coward who remembers, with each precious dollar laid out, how I had to earn each and every dollar of that money by slaving as a lowly lickspittle piece of employee crap whose bosses were all morons for not recognizing my obvious genius, and (judging by my annual employee evaluations) for expecting too much of me in the first place, morons.
 
And actually, unbelievably, despicably and tragically, the Federal Reserve, under the dysfunctional thrall of the satanic Ben Bernanke, is trying, for the first time in history, to literally create inflation in prices to achieve some "target "rate of price inflation of more than 2% a year! Gaaahhhh!
 
No wonder I say "Un-freaking-believable!" or "We're Freaking Doomed (WFD)!", I haven't decided which!
 
And where does the money go? To buy the flood of new Treasury bonds, of course! And so bond prices go up and up, simply by the Federal Reserve creating a LOT of new money which the despicable and treacherous Obama administration desperately needs for its suicidal deficit-spending madness), driving bond prices up and the yield down.
 
The whole article is here:
 
DayStar
 
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DS:  Mogambu shows the

DS:  Mogambu shows the incredible money to be made in buying bonds, if only you could be sure that interest rates would go up and not go negative.  FreeMarketAgent has disclosed that knowing which way interest rates will move, and shorting bonds just before the elites send the interest rates to the moon is the pièce de résistance of the elites whereby they plan to accumulate the vast portion of the earth's wealth. 

Mogambu Guru: Traders should now sell-short a bond, getting the whopping $60,000, paying out that meager $60 per year interest payment, and then a year later, when interest rates have soared to 10% -- and probably more! -- like they should, acting in response to the horrible monetary and price inflations all around him or her, the trader would close the short position by buying the bond for $600, making gross nominal profit of $59,400, less expenses. Nice work!

The risk with bonds is very, very real, too, as the Federal Reserve has repeatedly demonstrated the power, and they repeatedly demonstrated the odious inclination, to keep pounding interest rates down and down by creating more and more money and credit, regardless of the inflation in consumer prices it caused!

DS: Since interest rates are so low, small changes make big differences, like movements in penny stocks.  Consequently, a small drop in interest rates can generate a big margin call and drive you out of your position or wipe you out completely. 

DayStar

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Harvey 1 Sep 2012

This is DayStar (DS) with the Saturday Harvey Report.

Harvey: Commitment of Traders Report (COT):

Gold: "Criminal activity" is all I can say as the commercials continued to supply naked short gold contracts in huge numbers. They are having a weekend retreat meeting to decide how they are going to handle the coming week in gold. They went net short a monstrous 32,402 contracts!!!

Silver: The bankers continue to go net short in silver and thus bearish from a bankers standpoint.

It seems that the market is quite confused. Notice the huge difference between gold and silver as to how our major bankers are playing their respective metal positions!! DS: The thing that I noticed was the huge difference between the large specs and the small specs. The large specs' position did not change hardly at all which would seem to indicate they are strong hands willing and able to meet all margin calls to maintain their positions. The small specs changed a lot. It looks to me like the small specs went long too soon based on the big gains at the end of last week, when it seemed silver finally got some momentum, and then they got blown out by the raid on Monday. On MOnday morning it looked like silver was breaking out and that could have sucked in some longs in addition to the ones that bought in last week, but then the cartel took silver down $0.80 in the aftermarket and blew out the marginal longs. The specs that were short during that Monday raid probably took profit on the dip as they foresaw the market getting much higher and bailed out of the trap in which they had found themselves. The net result for silver is smaller OI at the expense of the small specs.

Bill Murphy (Lemetropole): *Then today I received a phone call from a sophisticated Café member who is in the gold/silver business. This person asked me about a client who was having trouble getting his $5 million silver order delivered. [This client] is getting one excuse after another why he is not getting his physical silver. The question to me [via the phone call] was about the manufacturing dates these days for silver being delivered. [What silver there is that is actually being delivered has recent manufacturing dates]… because there just isn’t any [vaulted] silver around in size to be delivered. SMOKE is everywhere. It is billowing and is advertising the coming silver fire.

Harvey: The bankers initially raided silver and gold in Europe trading but the physical demand certainly outweighed the paper shorts and thus our illustrious heroes had to retreat to higher ground. As I and many other commentators have mentioned, September is going to be a very interesting month in the precious metals.

Gillian Tett (London Financial Times/FT): The World Gold Council (the body that represents the gold industry) has recently lobbed a new idea into the European economic fray: it thinks it is time for eurozone governments to start using gold in a creative manner, particularly in places such as Italy, to cut those interest rates. According to the council, "It is well known that some of the countries most affected by the crisis, including Portugal and Italy, are responsible for a significant proportion of these assets [DS: 10,000 tonnes]." Eurozone countries should essentially securitise part of that gold, by issuing government bonds that are in part backed by gold. This could be done in a simple manner; or it could be structured to include tranches of different risks. Either way, the key point is that gold would be used to provide additional security for bonds -- and thus reassure investors who do not trust eurozone government balance sheets anymore. DS: Since there is huge public opposition in places like Portugal an Spain to selling their legacy gold, obligating the legacy gold via sovereign bonds is a good way for the elites to get their hands on this ancient gold. They know that these countries will eventually default and leave the Euro, but the elites would have a claim on the gold no matter what happened. The interesting thing is that the World Gold Council is a functional arm of the global elites. They have actively participated in the suppression of gold prices over the past 20 years in jawboning gold prices down and supporting the gold price suppressing hedging positions held by several of the largest gold miners.

DS: As fast as the dollar is depreciating, its collapse is eclipsed by the Indian rupee and the British pound. Gold priced in these currencies has risen faster in terms of the rupee and pound than it has in dollars. Euro gold is within 3% of its all time high and the rupee is just 2% below its all time high while gold is still about 12% below its max when priced in dollars. Like gold priced in dollars, both the pound and rupee have formed year long pennant formations. Andy Hoffman of Miles Franklin believes that once either the gold in rupees or gold in pounds breaches the all time high for gold in the currency that it will start a flood of buyers in that currency that will quickly spread to gold priced in other currencies. The breakout from the pennant formations in either pounds or rupees could be the trigger for hyperbolic moves in all other currencies.

Harvey: There is an on-going battle between Jens Weidmann of the Bundesbank and Mario Draghi, the president of the European Central Bank. As Zero Hedge and other commentators like Wolf Richter and Mark Grant explain:

1.Policies supported by Draghi, such as Eurobonds, a banking license for the ESF, or a European fiscal or political union are pure fantasy, because these actions are opposed by Weidmann at the Bundesbank.

2. Weidmann's Germany and the other core nations in Europe will not pay for the folly of the PIIGS nations

3. Germany prevents the monetization of debt (QE)

4. Even German opposition parties are opposed to the funding by the ESM (European Stability Mechanism) through direct purchases of bonds or giving the ECB a banking license.

The conflict between Weidmann and Draghi has only begun as the interests of Germany and Italy have only recently started to diverge, and what Draghi really wants is to help his own country Italy and what Weidmann really wants is to help his own country of Germany. Draghi at the ECB cannot unilaterally take the actions he wishes because of the veto threat of Germany, Finland, Austria, and the Netherlands who want no part of lowering their standard of living.

Harvey's comments on Friday's price action (basis 1:30 PM EST)

Quote:

The price of gold finished the Comex session at $1684.90 up a huge $31.40.

Silver also responded in kind rising by $1.00 to $31.37.

In the access market the prices of both metals continued to shine:

Gold finished at $1691.60 (a further $7.00 rise)

Silver finished at $31.74 (a further 34 cent rise)

Thursday, Aug 29th Gold and Silver Action (basis 1:30 PM EST)

http://harveyorgan.blogspot.com/2012/09/youth-unemployment-skyrocket-in.html

Total, Sep (Silver), Oct (Gold), Nov (Silver) Open Interest

In silver

Quote:

The total silver Comex OI fell dramatically by 2006 contracts from 118,929 down to 116,923. Either certain players refused to play the paper games anymore and bailed or some bankers are scared out of their minds in silver, we do not know. No matter what, the real story, the truth of the matter, is that those who left the silver arena on the long side are not happy campers this morning. The front September silver OI fell from 6474 down to 2575 and thus the latter number generally gives us a first glimpse as to what will stand for September and this is a rather good level of 12,875,000 oz standing. After Blythe gets busy with some cash settlements, we will probably see in the month's conclusion over 10 million oz stand.

The next non active delivery month is October and here the OI rose by 4 contracts to 174.

The very big December contract saw it's OI rise to an absolutely astounding OI of 76,146 a rise of 1946 contracts from Thursday. Will this month be the battle of Waterloo for our bankers and long players?

In gold

Quote:

The total gold Comex OI rose by quite a margin Friday to the tune of 1770 contracts from 422,751 to 424,521 as the bankers continue to supply the necessary short paper.

The front September gold contract saw its OI rise by 20 contracts to 741.

The next active gold contract is October and here the OI fell marginally by 849 contracts from 31,528 down to 30,679.

I will now start to report on the key December gold contract as it is the largest and most important gold month in the gold calender. On Friday, its OI rose by 2643 contracts from 276,729 up to 279,372. Remember that all OI results are 24 hours back in time. The bankers know the OI figures in real time, but we do not, and it gives the house a much bigger advantage.

Volume

In silver

Quote:

The estimated volume on Friday was excellent at 53,903.

The volume on Thursday came in at 54,811 which is basically on par with Friday as we had about 12,000 contracts of rollovers.

In gold

Quote:

The estimated volume today was very good for a change at 173,953 compared to Thursday's lacklustre level of 102,956.

Inventory Numbers

In silver:

Quote:

We had another busy day at the silver vaults.

The dealer brinks received the following silver metal:

i) 598,565.41 oz

The customer at Brinks received the following silver metal:

i) 303,410,42 oz

The customer withdrawal was as follows;

i) 312,671.89 oz from Brinks

ii) 33,767.53 oz from Scotia

Total customer withdrawal: 346,439.42 oz

We had two adjustments and they were absolutely dandies:

i) from the customer at Brinks into the dealer at Brinks a massive 2,462,746.59 oz was transferred, and this obviously will be used in the September settling process.

ii) 441,637.96 oz leaves the dealer at jPMorgan and re enters the customer account as a former liability repaid.

Tonight we have the following silver inventories:

Registered or dealer inventory rests at 39.258 million oz.

The total of all silver rests at 140.95 million oz.

In gold:

Quote:

We had a wild day at the gold vaults today.

It seems that the dealer Scotia is still fooling around with that 59 thousand oz of gold. On Friday, 59,999.765 oz of dealer gold was withdrawn from Scotia and 59,884.09 oz landed in the customer account of HSBC.

Thus the official deposit for Friday:

1) Into HSBC 59,884.09 oz (coming from dealer at Scotia)

And now the withdrawals;

From the customer side of things:

i) 63,775.80 oz leaves HSBC outright.

ii) 99.61 oz leaves Scotia

Total customer withdrawal:

63,875.41 oz

We then had that famous withdrawal of 59,999.765 oz from the dealer at Scotia.

We had two adjustments:

i) 11,462.84 oz leave the dealer at JPMorgan and land at the customer at JPM

ii) 297 oz leave the customer at HSBC and enter the dealer.

With all of those changes, we have the dealer inventory rest this weekend at 2.711 million oz or 84.3 tonnes of gold

Delivery Notices

In silver:

Quote:

The Chicago Mercantile Exchange (CME) reported a very tiny 292 notices served on first day notice for 1,460,000.

In gold:

Quote:

The CME group late Thursday night reported that we had 590 notices served upon our September longs to the tune of 59,000 oz of gold.

Contracts Left To Be Delivered + Month-To-Date Summary

In silver:

For those that are interested in the alleged bullion in the vaults of Comex by date, you can see it here:

http://www.investmenttools.com/futures/metals/Base_Metals_Inventory_London_and_Shanghai.htm#Comex_silver

Quote:

The total number of notices for the month is thus 292. To obtain what is left to be served upon, I take the OI standing for September (2575) and subtract out Friday's first day notices (292) which leaves us with a rather huge 2283 or 11,415,000 left to be served upon our longs.

Thus the total number of silver ounces standing in this active delivery month of September is as follows:

1,460,000 oz (served) + 11,415,000 oz (to be served upon) = 12,875,000oz

Blythe Masters will have here work cut out for her this month!!

In gold:

Quote:

The total number of notices served thus far this month is still 590 contracts.

To obtain what is left to be served upon, I take the OI standing for September (741) and subtract out Friday delivery notices (first day notice or 590 contracts) which leaves us with 151 notices or 15,100 oz left to be served upon our longs.

Thus the total number of gold ounces standing in this non active delivery month of September is as follows:

59,000 oz (served) + 15,100 oz to be served upon = 74,100 oz (2.305 tonnes)

This is a very good showing for gold in a non active month.

The Bloomberg Baltic Dry Index (BDI) was down 0.57% at 703. WTI crude was up 1.85 today at 96.47. Brent closed at 115.46, up 2.38. The spread between Brent and WTI was 19.84, up 2.25. US Treasury 30 year closed at 2.67 down 0.07. The dollar was down 48 points at 81.21. The PPT/Dow was up 90.13 and settled above the important level of 13,000 at 13,090.84. FaceBook closed at 18.06 down 1.03 (5.40%) and silver closed at $31.74. I guess all the Facebook insiders have now sold their stock and the PPT can let this one go down the toilet since it is not in the Dow Jones Index. The Nov CCI was 579.00, up 3.50. September wheat was down 13.40 at 870.00. September corn was 802.00 down 8.60. October lean hogs were up 0.025 at 74.175. September feeder cattle were up 1.300 at 144.600. September copper was 3.4540, up 0.0135. October natural gas was up 0.051 to close at 2.799. October coal is 58.20 up 0.02.

Thank you for reading the Harvey Report. There is much more on Harvey's blog http://harveyorgan.blogspot.com.

Goooood day!

DayStar
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Gold in Indian Rupees Has Broken Out

If you go to http://www.goldprice.org/spot-gold.html, scroll down and select INR, 2 Year, you will get a chart that shows that gold has broken out of a year long pennant in terms of Rupees and has broken its all time high.  India is probably the largest gold buyer in the world.  The theory is that when gold breaks through its doldrums to take out its all time high, then first greed and then panic buying will ensue, and there is going to be a stampede to get into gold and silver.  If the vast Indian herd starts running after gold in rupees, how long will will it be till the fear spreads to the rest of the global herd? 

DayStar

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Harvey 4 Sep 12

This is DayStar (DS) with the Tuesday Harvey Report.

DS: Strikes spread to Goldfields (gold miner) as thousands of ounces remain in the ground as workers demand extra rights for mining the stuff. JPMorgan and friends did not have a pleasant holiday weekend knowing that 1,660 oz of gold will not be mined per day because of the wildcat strike. Just think of all of those derivative contracts that must be called in from London (ratio one oz of physical per 100 oz of paper gold)! Some are suggesting the miners are causing the wildcat strikes as a cover for the physical they are selling out the back door. According to this theory the strikes would then cover for the public loss of production that is actually still ongoing by other miners and going out the back door to private cash buyers in the East (how many suitcases do you need for $1Bln in small unmarked bills? laugh).

GoldMoney: Two Bloomberg correspondents reported on August 8 that the US Government’s unfunded liabilities rose by $11 trillion last year, "ten times larger than the official deficit", and are now at an estimated $222 trillion. The authors base their estimates on figures supplied by the Congressional Budget Office. This makes talk about the "fiscal cliff", as the Bush tax cuts come to an end, a secondary issue. Meanwhile in Germany the Constitutional Court will be told on 12 September that the bailout costs faced by Germany are €2 trillion with a further €1.7 trillion in the pipeline, compared with only €170 billion a year ago. DS: Fox News tonight reported that the US debt passed $16 tln today. http://zfacts.com/p/461.html

Harvey: the Spanish banks are now selling the sovereign bonds they acquired through the LTRO as they must balance with cash that which have left the banking system. Thus the selling of these bonds. It will get interesting in 3 years when they must reswap things.

Chris Powell (GATA): Gold fund manager Egon von Greyerz of Matterhorn Asset Management analyzes Federal Reserve Chairman Ben Bernanke's latest ambiguous remarks and concludes that more "quantitative easing" is indeed coming, but not when everyone expects. There will only be smaller amounts of orderly money printing on a regular basis, but the real one will come when there is a panic situation. There will be a panic situation in the US, in the eurozone, and the rest of the world. That's where, just like in 2008, we will have massive QE happening worldwide.

Eric King (King World News): Futures market analyst Dan Norcini says last week speculative money entered the gold and silver markets in a big way, which is how those markets climb. The COT is a good reflection of what we saw on the price side. In both metals (gold and silver) you had a huge influx of speculative money, whether it's hedge fund money, large reportable (entities) such as CTA's, commodity pool operators, or large private traders, and then we have the public. They were all in there buying with a passion this week, while the usual suspects, the bullion banks and some of the swap dealers were all selling. We've got speculative money coming into these markets in a big way, and we've got big, commercial related selling.

Ted Butler's views are always of interest, particularly his take on the shenanigans of the market place in terms of the huge short positions held by some major banks and traders. His conclusions regarding what he, and a number of others, see as subsequent price manipulation with trading volumes many, many times higher than the amount of silver actually available - a pattern also prevalent in the gold market - leads to the viewpoint that these markets are indeed rigged, but that ultimately market forces will prevail regardless. Butler notes that for the past 10 years or more he has been convinced that silver, in particular, would outperform most assets, including gold and points out that overall this has largely been shown to be true. Even after what he describes as a number of unprecedented and deliberate price smashes over the past year, he reckons silver has still recorded superior outperformance over the longer term than just about any other asset and that you would thus have made more money (or at least protected your wealth better against the ravages of inflation) by investing in silver than in anything else. He is also convinced that silver will likely continue to generate better overall returns, while any further price smash downs by the big short position holders will just provide some great buying opportunities to enter the market at bargain prices.

DS: Harvey has an article on gold mining shares from the Wall Street Journal which says the mining stocks are undervalued. If you compare stock prices to the price of gold, then the statement is certainly correct, for stocks have declined while gold price has risen. The problem with gold mining shares like any financial paper is the problem of retaining value. Mining stocks might rise for time, but if they do they will face intense pressure from labor, governments that want to nationalize them, drasticly rising production costs, and probably windfall profits taxes like those with which the government hit the oil companies.

James Turk via KWN: "This breakout (in gold and silver) is very important historically because it is not only ushering in the next great move in the metals, but it also signals the beginning of the next leg of the destruction of fiat money." Turk also said, "Given that silver is still in stage 1, the media attention won't begin until silver hits a new record high over $50 per ounce, and I think this is coming in just a few months..Even though the US [was] closed for the Labor Day holiday market, gold and silver are on fire over here in Europe. Silver has hurdled $32 while gold looks ready to take on resistance at $1700, which is a key level the bears have been defending since last March."

Harvey on Mark Grant:

1. Spain saw a massive 56 billion euros (70.9 billion USA dollars) leave Spanish banks in June which was followed by another 75 billion euros of withdrawals in July (92.88 billion usa dollars). In July close to 5% of all deposits fled the country.

2. Only 1.5 trillion euros remain in Spain as of July 31.2012;

3. For the first 7 months a total of 295 billion euros (368 billion usa dollars) have left the nation. (17.7% of total deposits)

4. As we highlighted to you on Friday, the 10 yr Spanish bond yield rose to 6.81%. On Monday it finished the day at: 6.883%

5. Spain has set a fund of about 18 billion euros for its regions. That will fall far short of about is needed which Grant pegs at about 60 billion euros.

6. In October, Spain has about 20 billion euros worth of bonds maturing and then on top of that they will need additional funding.

7. Many regions of Spain are not paying their suppliers.

8. On top of this, Bankia on Friday reported a huge 44% gain in bad loans and a loss of 4.45 billion euros from operations. The government has promised an injection of 5 billion euros to prevent Bankia's collapse.

9. Very important...Bankia to save itself has issued preferred stock to investors and depositors. If the IMF/EU come to rescue the Bank, these players will see their investment rifle all the way down to zero.

There will be rioting on the streets if this happens.

10. Spain has the highest unemployment in Europe at 25.1%, higher than in Greece. The unemployment rate among the youth is greater than 53%.

11. To solve the bank runs, Spain had to adopt an unusual measure: In late 2011 and 2012, you will recall that the ECB engaged in a swap arrangement called LTRO whereby Spanish banks would receive freshly minted euros in exchange for collateral. Generally the banks bought sovereign Spanish bonds with the euros received. Now this process is reversed as the Spanish banks must sell the bonds to raise the Euros necessary to balance what has been withdrawn from the country. The problem will multiply in 3 years, when the banks must reswap back their euros for the collateral sitting on the ECB's books. The bonds that have not been sent over to the ECB are the ones that have been sold and sold at a loss.

12. Mark Grant believes the fun will begin when real audits are done on the finances within Spain and its regions and they will find that it is far worse that recorded.

I love his last line: "There will be bodies"

Harvey's comments on Tuesday's price action

(basis 1:30 PM EST)

Quote:

Gold closed at par today at $1693.00 which also includes the gain of 3 dollars from Monday.

Silver again had a stellar two days by rising 36 cents today and 10 cents in European trading on Monday.

Monday, Sep 3rd Gold and Silver Action

(basis 1:30 PM EST)

http://harveyorgan.blogspot.com/2012/09/another-huge-run-on-spanish.html

Total, Sep (Silver), Oct (Gold), Nov (Silver), Dec (Silver and Gold) Open Interest

In silver

Quote:

The total silver Comex OI rose by 623 contracts from 116,923 to 117,546. The bankers were loathe to supply the paper in silver. The front active month of September saw its OI fall from 2575 to 2103 contracts for a fall of 472 contracts. We had only 292 delivery notices filed on Friday so we lost 180 contracts or 900,000 oz to cash settlements courtesy of Blythe Masters of JPM. The October silver month saw its OI rise by 9 contracts to 183. The big December contract saw its OI rise by a rather large 1133 contracts from 76,146 to 77,279. This month will also be watched carefully by our bankers.

In gold

Quote:

The total gold Comex open interest rose sharply today to the tune of 13,512 as the bankers supplied the necessary short paper.

The front September gold month saw its OI fall from 741 contracts to 152 for a loss of 589 contracts. We had 590 delivery notices filed on Friday so we lost just one contract or 100 oz of gold standing.

The next active delivery month for gold is October and here the OI fell by 1806 contracts from 30,679 to 28,873.

October is a very poor delivery month so do not expect much once first day notice appears in gold.

I will be reporting however on the big December contract which is always the biggest delivery of the year for both gold and silver. In December the OI rose smartly by 14,316 contracts from 279,372 to 293,688. This will be of concern to our bankers.

Volume

In silver

Quote:

The estimated volume at the silver Comex today came in at 55,512 compared to the confirmed volume on Friday of 62,087. Both volumes were quite good.

In gold

Quote:

The estimated volume at the gold Comex today came in at a very respectable 170,519.

The confirmed volume on Friday was excellent for a change at 214,388.

Inventory Numbers

In silver:

Quote:

We again had considerable activity inside the silver vaults today.

We had the following deposit at the customer level:

i) 631,389.00 oz (CNT vault)

ii) 997.70 oz (Delaware)

iii) 615,997.1 (JPMorgan

Total 1,248,363.80 oz

We had the following withdrawal at the customer level:

i) 218,529.98 oz from Brinks

ii) 20,788.80 oz form Scotia

Total withdrawal: 239,318.78 oz

We had no adjustments.

The total dealer or registered silver rests tonight at 39.358 million oz

The total of all silver rests at 141.959 million oz.

In gold:

Quote:

I think that the CME boys are fooling around again.

Our famous 59,999 oz of gold is circling the globe. It again landed as another withdrawal of 59,867.48 from the dealer at Scotia. We had no customer deposit in gold.

We had the following gold deposit at the customer level:

i) 1,499.86 oz (Brinks)

ii) 20,431.oz (HSBC)

Total deposit: 21,931.303.0z

We had the following adjustment:

i) 1499.86 oz of gold leave the customer at Brinks and enter the dealer at Brinks

ii) 6,516.589 oz of gold leave the dealer at HSBC and enter the customer at HSBC

iii) 369.848 oz of gold leave the customer at JPM and enter the dealer at JPM

iv) 200.92 oz of gold leave the customer at Scotia and enter the dealer at Scotia.

The total gold inventory for the dealer rests tonight at 2.646 million oz or 82.3 tonnes of gold.

Delivery Notices

In silver:

Quote:

The CME reported that we only had 29 delivery notices filed in silver today.

In gold:

Quote:

The CME notified us that we had 60 notices filed today for 6,000 oz of gold.

Contracts Left To Be Delivered + Month-To-Date Summary

In silver:

For those that are interested in the alleged bullion in the vaults of Comex by date, you can see it here:

http://www.investmenttools.com/futures/metals/Base_Metals_Inventory_London_and_Shanghai.htm#Comex_silver

Quote:

Strange for an active delivery month. For two straight days we had had minor delivery notices in silver which seems to highlight some physical shortage everywhere. The total number of silver ounces filed today is thus 29 notices x 5000 per contract or 145,000 oz. The total number of silver notices filed so far this month total 321 or 1,605,000 oz.

To obtain what is left to be served upon, I take the OI standing for September ( 2103) and subtract out today's notices (29) which leaves us with 2074 notices or 10,370,000 oz left to be filed upon.

Thus the total number of silver ounces standing in this active delivery month is as follows:

1,605,000 oz (served) + 10,370,000 (oz left to be served upon) = 11,975,000.

we lost 180 contracts or 900,000 oz to cash settlements. I doubt if any would have rolled as silver was rising quite nicely these past several days.

In gold:

Quote:

The total number of notices filed so far this month total 650 for 65,000 oz. To obtain what is left to be filed upon, I take the OI standing for September (152) and subtract out today's notices (60) which leaves us with 92 notices or 9200 oz left to be served upon our longs.

Thus the total number of gold ounces standing in this non active month of September is as follows;

65,000 oz (served) + 9200 oz (to be served upon) = 74,200 oz or 2.30 tonnes of gold.

We lost 100 oz of gold standing today.

The Bloomberg Baltic Dry Index (BDI) was down 0.72% at 693. WTI crude was down 1.17 today at 95.30. Brent closed at 114.19, down 1.27. The spread between Brent and WTI was 18.89, down 0.95. US Treasury 30 year closed at 2.69 up 0.02. The dollar was up 10 points at 81.31. The PPT/Dow was down 54.90 and settled above the important level of 13,000 at 13,035.94. FaceBook closed at 17.73 down 0.33 (1.82%) and silver closed at $32.36. The Nov CCI was 580.00, up 1.00. September wheat was down 4.00 at 866.00. September corn was 807.00 up 4.20. October lean hogs were up 0.025 at 74.200. October feeder cattle were up 0.050 at 147.000. September copper was 3.4685, up 0.0145. October natural gas was up 0.055 to close at 2.854. October coal is 57.97 down 0.23.

Thank you for reading the Harvey Report. There is much more on Harvey's blog http://harveyorgan.blogspot.com.

Goooood day!

maravich44
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Posts: 1221
Daystar..hey bro

Thank You. Edit add: Hat tips should be more. please keep posting. 

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