Harvey Organ Should Be An Interesting Read Today

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benny_bomb_boom
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daystar ~~ bravo

piling on pistol pete here, but dang, i love what you are putting together. serious gathering of info. solid work. thank you. cheers bro 

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no better time than now

145Bluesman
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Thanks, Daystar Your efforts

Thanks, Daystar

Your efforts are better served here, than over at the home of the mindless called shitco.

maravich44
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benny_bomb_boom

this tune keeps rolling my head. yes 

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Thanks, Bluesman

But not many are reading this here.  Anything in the forums is rather buried.

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Thanks also to

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Harvey 5 Sep 12

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

Chris Powell (GATA): Market analyst and newsletter writer Marc Faber today tells King World News that increasing intervention by central banks is making markets ever harder to analyze and that he fears that gold will rise so fast that governments will feel compelled to try to confiscate it from investors. DS: And how would they do that? Are they going to ransack every house in the country? Are they going to dredge the bottoms of the lakes? The ancients used to take the man of the house and torture or kill his family until the man told where it was, and then they would maybe let him go. Is our government sunk to that level? That's about the only way they will have any luck getting the stackers' PM is if they make a credible threat to harm the stackers family. Since the stackers only have a tiny fraction of the world's gold, it would seem not worth the trouble. Besides, if they crash the economy, you can't eat gold, and stackers who did not prep will die.

Harvey: Iran continues to buy gold with its oil. It bought a record 6.2 billion dollars worth of gold from January through to July. We now have major purchases of gold from: i) China, ii) Russia, iii) Turkey itself, iv) Iran through Turkey. London seems to be holding a bag full of derivatives with no physical attached.

Jack Farchy: Investors will return to the gold market after a recent spell of apathy to buy record quantities in the second half of 2012. A fresh wave of investor interest would drive prices sharply higher. "We could see a drive to $1,850-plus over the next couple of months," said Philip Klapwijk, head of metals analytics at GFMS, forecasting that investors would buy 973 tonnes in the second half of 2012, more than during the frenzied market of last summer. In the past three weeks, the prospect of further quantitative easing from the US central bank has reawakened interest in the precious metal, lifting prices by 6.3 per cent to hit a peak of $1,698 yesterday, the highest in nearly six months. DS: Some tickers showed gold briefly above $1700 yesterday. I don't know where he got the $1,698 unless it's MOPE.

GoldMoney: GoldMoney Research Director Alasdair Macleod, interviewed by the German media relations firm Cometis, says Western central banks are trying to suppress the gold price so that they may sustain their policy of negative real interest rates but that Eastern central bank purchases have put a floor under the price.

Tyler Durden: When stripped of its apolitical mask, the ECB is split along the lines in the same way as Europe's politicians: the broke and the solvent, and to nobody's surprise the broke want endless bailouts from the solvent, i.e., unconditional money printing which will result in inflation hitting the solvent, while the solvent won't hear about it unless the broke subject themselves to being controlled by the solvent.

Zero Hedge: It seems that the Spanish banks have started to use the secretive emergency bailout funds (ELA) from the central Bank of Spain. From public documents, it looks like all the Spanish banks have called upon 400 million euros under the program for emergency use. This system bypasses the ECB directly and thus avoiding the huge and tough collateral demands -- the beginning of the end. DS: I have been hearing that phrase for a long time, and have used it myself upon occasion. It has a lot of contexts since it depends upon the timeframe one is considering. "Beginning of the end" in this context could mean instead of two years as it turned out when I used it, to rather be six weeks when the fit starts to hit the Shan as reported by some sources.

ZH: 88% of traders expect Spain to formally request a bailout by year's end. 50% expect Italy to do likewise.

Wolf Richter: Slovenia will be the next country to join the ranks receiving a bailout. It will be the 6th nation out of 17 so far. They went on a borrowing binge that soon faltered. They can't print their way out, so the Prime Minister in Slovenia announced that this nation was bankrupt and will seek a bailout in October. Again they are asking the taxpayers to bailout the bondholders.

Wolf Richter:  In Germany itself their economy is faltering. Car sales which have been holding up quite well up until June collapsed in July down a full 4.7% for the year. In August another disastrous sales report showed that car sales dropped another 8% from the July figure. Dismal indeed for this big exporting nation. Sales of medium to heavy trucks, a barometer for measuring the health of the nation plummeted on average 17% for all various heavy loaded trucks. Retail sales also skidded in July as confidence inside Germany faltered. The world is becoming "less stable," with a "bloated" financial sector, "bankrupt governments" looking for ever more revenues, and the possibility of a "gold mania," said Doug Casey, chairman of Casey Research.

Harvey's comments on Wednesday's price action

(basis 1:30 PM EST)

Quote:

Gold closed down today to the tune of $2.20 to finish the Comex session at $1690.80.

Silver finished down 10 cents to $32.26.

Tuesday, Sep 4th Gold and Silver Action

(basis 1:30 PM EST)

http://harveyorgan.blogspot.com/2012/09/bloomberg-leaks-scope-of-euro-bond.html

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

In silver

Quote:

The total silver Comex OI saw its OI rise from 117,546 to 119,504 for a gain of 1958 contracts.

We are witnessing in the silver arena, speculators wishing to take on our bankers.

The September contracts saw its OI fall 95 contracts from 2103 down to 2008. We had only 29 delivery notices so we lost a full 66 contracts to cash settlements or 330,000 oz.

The October silver month saw its OI rise by 14 contracts to 197.

The big December silver month saw its OI rise by 1020 contracts from 77,279 up to 78,299.

In gold

Quote:

The total gold Comex OI continues to ramp higher as many speculators are jumping on the band wagon taking on the crooked bankers knowing full well that the regulators will do nothing.

The total OI rests tonight at 444,489 a rise of 6,456 contracts from 438,033. All of the paper was no doubt supplied by our short bankers.

The next delivery month is October and here the OI fell by 879 contracts from 28,873 to 27,994 as most of the paper players would prefer to play December, the most active month in the entire calender for gold and silver.

The big December contract saw its OI swell by 5979 contracts from 293,688 to 299,667.

Volume

In silver

Quote:

The estimated volume today was quite low at 31,590.

The confirmed volume yesterday was much better at 64,597.

In gold

Quote:

The estimated volume today at the gold Comex was tiny at 107,207 compared to the confirmed volume of 192,493 yesterday.

Inventory Numbers

In silver:

Quote:

We had considerable action in the silver vaults today.

We had the following customer deposit:

i) 601,827.78 oz enter Brinks

ii) 984.50 oz enter Delaware

Total deposit: 602,812.28 oz

We had a dandy of a withdrawal by the customer at Scotia:

i) 1,558,280.46 oz

We had no dealer activity and no adjustments.

The total registered or dealer silver inventory rests tonight at 39.258 million oz and the total of all silver rests at 141.004 million oz.

In gold:

Quote:

If you want a definition of hypothecated gold flying all over the place maybe it is this 59,999.770 oz of deposit at HSBC. You will recall that we have had 3 days of this 59,900 oz deposit, bouncing all over the place and today it landed into the HSBC customer account. Yesterday it was a dealer withdrawal from HSBC. Why didn't they just do an adjustment from HSBC? To me it is very suspicious and I just highlight it for you and let you make the judgement call on it. Thus for the record, we have a 59,999.770 oz of gold deposited into the HSBC vault. (It left the dealer at HSBC yesterday).

We had the following customer deposit:

i) 675.15 oz into HSBC

ii) 643.000 oz into Manfra

Total deposit: 1318.15 oz

We had one adjustment of 96.46 oz whereby the customer leased some gold to the dealer at JPM.

The total registered or dealer gold rests tonight at 2.646 million oz.

Delivery Notices

In silver:

Quote:

The CME notified us that we had only 27 notices filed in September for 135,000 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 total 348 for 1,740,000 oz. To obtain what is left to be filed upon, I take the OI standing for September (2008) and subtract out today's notices (27) which leaves us with 1981 notices or 9,905,000 oz left to be served upon our longs.

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

1,740,000 (oz served) + 9,905,000 oz (to be served upon) = 11,645,000 oz.

We lost 330,000 oz to cash settlements.

In gold:

Quote:

The total number of notices filed so far this month is represented by 657 notices or 65700 oz of gold.

To obtain what is left to be served upon, I take the OI for September (91) and subtract out today's notices (7) which leaves us with 84 notices or 8400 oz left to be served upon.

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

65,700 oz (served) + 8,400 oz (to be served upon) = 74,100 oz or 2.304 tonnes of gold

We lost 100 oz of gold standing.

The Bloomberg Baltic Dry Index (BDI) was down 1.30% at 684. WTI crude was up 0.06 today at 95.36. Brent closed at 113.55, down 0.64. The spread between Brent and WTI was 18.19, down 0.70. US Treasury 30 year closed at 2.705 up 0.015. The dollar was down 8 points at 81.05. The PPT/Dow was up 11.54 and settled above the important level of 13,000 at 13,047.48. FaceBook closed at 18.58 up 0.85 (4.80%) and silver closed at $32.27. The Nov CCI was 579.00, down 1.00. September wheat was down 20.20 at 845.60. September corn was 789.60 down 17.20. These grain prices do not look real. The crop is awful and we are getting big down drafts? Maybe they want to break the farmers so they won't even get a good price for their terrible yields. October lean hogs were down 0.575 at 73.625. October feeder cattle were up 0.075 at 147.200. September copper was 3.5320, up 0.0635. October natural gas was down 0.059 to close at 2.795. October coal is 57.07 down 0.90.

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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Harvey 6 Aug 2012

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

DS: Eric Sprott of Sprott Asset Management today announced that his gold fund (PHYS) has launched a follow-on offering. The Trust will use the net proceeds of the Offering to acquire physical gold bullion in accordance with the Trust's objective and subject to the Trust's investment and operating restrictions.

Chris Powell (GATA): Gold fund manager Egon von Greyerz today tells King World News that investors have begun to trade positions in gold exchange-traded funds for gold vaulted outside the banking system. Von Greyerz expects central banks to create virtually infinite money and gold and silver prices to respond accordingly.

Ranting Andy: The ECB spoke - and as expected, launched their NEXT phase of "QE"; this time called the MOT, or the "Monetary Outright Transactions" Program. In other words, the ECB will PRINT MONEY to buy sovereign bonds of the PIIGS, and other dying European nations. today's ECB "QE to infinity" announcement - which is EXACTLY what it is, no ifs, ands, or buts, as the ECB KNOWS it MUST keep printing, to avoid outright COLLAPSE, immediately. DS: It also kicks off first sign of the collapse of the American economy as described by the article on Lindsey Williams latest comments below.

Mark J. Grant (Out of the Box): One of the primary purposes of a government, any government, is to sustain itself. In its final hours it will do almost anything possible for its self-preservation. If the rumors are to be believed and Draghi is going to propose unlimited bond buying in the short end of the curve for the nations of Europe in maturities up to three years then it must be said that Mario Draghi, personally, has re-written the treaties for the European Union which specifically forbids what he is apparently about to undertake. In my mind, this is an act of desperation that makes me quite nervous because my thinking extends out past the announcement that will be made later today as I consider its consequences, ramifications and where the focus will shift which will be to the recession in Europe and to the fundamental financial health of the nations in the European Union and then to the fundamental financial health of the European Central Bank itself.

Here is the intro paragraph from the first official response in German Welt:

Financial markets cheer the death of the Bundesbank. ECB President Draghi breaks with brazen principles of German monetary policy. The central bank is pumping unlimited money in the bond markets. Stock markets cheer - for Germany, the nightmare begins. It is this that the Bundesbank is lamenting: the ever greater trade off of meaningless short-term market gains in exchange for long-term broad collapse and potentially hyperinflation. Sadly, nobody else is, or will be joining in their lament until not even all the world's central banks can control the fate of the bond and stock markets any longer.

Dave From Denver: The Government is mathematically insolvent and the solution will not be found in working within the system as it currently exists. There needs to be a huge "reset" of everything. The "reset" process can occur in several ways, all of which will entail a substantial decline in the standard of living for the 99.5%'ers. In order to create the financial "reset" that will be required to restructure and discharge inter-Governmental debt obligations, the value of gold will have to be reset to a much higher level in current dollar/euro/yen/yuan terms. Much higher. Ron Paul wrote a paper on how to use gold to allow the US to retain the dollar as the world reserve currency. However, there's been too much damage and our country has crossed the Rubicon of dollar destruction. The U.S. supposedly owns 8100 tonnes of gold. However, there is a question of to what degree the U.S. gold has been encumbered by financial transactions like swaps and leases. But let's assume that the U.S. gold is intact. And let's assume that the world were to resort to the old gold standard which required the value of any country's gold to represent 40% of the country's reserves. In order for the U.S. to "monetize" its $16 trillion of on-balance-sheet debt, the price of gold would have to be reset to $23,500/oz. That's just the direct U.S. Treasury debt and that doesn't include all the other non-direct, non-current debt obligations. It doesn't include the $7 trillion FNM/FRE debt guarantees. And it doesn't address the private sector debt load in this country. The bottom line is that the world is going to have to engage in a global "reset" in order to restructure and solve the massive global debt problem. This will either be done peacefully using gold as the measuring standard for wealth or it will be done through war.

DS: Lindsey Williams appeared on GoldSeek Radio Tuesday with a an update on the plans of the globalist elites. Lindsey says that Ghadaffi set the elites back two months and Assad has set their timetable back six more months, and the elites are getting desperate. Someone with some leverage twisted Putins arm (or something) to where he pulled up stakes in Syria after basically telling the West "over my dead body". Now Assad is pretty much on his on with the "insurgents" (CIA). Lindsey says the elites will replace Assad with the Muslim Brotherhood and then they will take Saudi Arabia. At that point they will choke off oil to the West until oil gets to $150/bbl. Then they will open up the abiotic oil via the 40,000 foot well at Gull Island. They will supply North America via the pipeline that Obama cancelled, and for which action they are actively seeking his non election. Interestingly, there was an Illuminati card game in 1995 http://www.thetruthbehindthescenes.org/2011/03/22/illuminati-card-game/ that had a playing card in it called Sucked Dry and Cast Aside. The person "sucked dry" in the picture looks astonishingly like "O" http://www.omni.to/upload/illuminati-cards/sucked_dry_and_cast_aside.jpg. Lindsey went on to say that the trigger that will bring down the world economy is the $1+ quadrillion derivative bomb. He said you can know when they are about to pull the trigger (crash the fiat currencies and the stock market) by watching for 1) currency wars (Draghi kicked that off today with his print to infinity announcement) 2) trade wars (tarriffs and protectionist policies) and 3) interest rates skyrocket. Lindsey says if you wait for the interest rates, it will probably be too late. As Ranting Andy, champion of holding physical gold and silver, says, "Protect yourself, and do it now!"

Harvey's comments on Thursday's price action

(basis 1:30 PM EST)

Quote:

Gold had a good day rising by $11.60 dollars finishing the Comex session at 1702.60 crossing the 1700 dollar barrier for the first time since March 13/2012. Silver also had a good day closing up 26 cents at $32.62.

Wednesday, Sep 5th Gold and Silver Action

(basis 1:30 PM EST)

http://harveyorgan.blogspot.com/2012/09/draghi-announce-omt-or-europes.html

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

In silver

Quote:

The total silver Comex OI fell by 219 contracts from 119,504 down to 119,285 as silver had a fairly decent day yesterday. Our bankers are very nervous about silver and with silver's rise yesterday, we probably had a few bankers fall by the wayside. The non active October silver month saw it's OI rise by 20 contracts to 217. The big December silver contract saw its OI fall marginally by 532 contracts down to 77,767.

In gold

Quote:

The total gold Comex OI fell by a tiny 394 contracts from 444,489 to 444,095. Gold lost a few dollars yesterday so this is quite understandable.

The non active September gold month saw it's OI remain constant at 91 despite 7 deliveries. So in essence we gained 7 contracts or 700 oz of additional gold standing.

The next active gold month is October which is 3 1/2 weeks away. Here the OI fell marginally by 72 contracts down to 27,922.

October is generally a poor delivery month as everybody plays December. Here, the OI for December rose by 529 contracts from 299,667 to 300,196. The bankers are watching this level very closely, ready to raid as soon as the word is given.

Volume

In silver

Quote:

The estimated volume today came in at a very high 55,013 compared to the rather lacklustre volume yesterday of 34,844.

In gold

Quote:

The estimated volume at the gold Comex today came in at a respectable 186,046.

The confirmed volume yesterday was quite meek at 114,341.

Inventory Numbers

In silver:

Quote:

Silver was moving all over the board today.

We had the following customer deposit of silver today into HSBC:

i) Into HSBC 926,750.20 oz

We had the following dealer inventory withdrawal from Brinks: 885,414.76 oz

We had the following customer inventory withdrawal from Scotia: 231,068,62.

We had no adjustments

The dealer or registered inventory rests tonight at 38.372 million oz

The total of all silver rests at 140.813 million oz.

In gold:

Quote:

Strange events inside the gold vaults today.

We had a very tiny deposit of 675.15 oz into Brinks.

We had no dealer deposit.

The customer had no withdrawal but the dealer certainly made up for that:

Withdrawals by the dealer today:

i) out of Manfra, 1936.06 oz

ii) Out of Scotia we another of those 59,900. plus withdrawals. Today it was 59,747.468 oz.

Thus the total dealer withdrawal was 61,683.529 oz.

There were no adjustments.

Thus the dealer inventory falls to 2.584 million oz or 80.37 tonnes of gold.

Delivery Notices

In silver:

Quote:

The CME notified us that we had a rather chunky 485 notices or 2,425,000 oz served upon our longs today.

In gold:

Quote:

The CME notified us that we had a tiny 16 notices filed for 1600 oz.

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 served thus far is represented by 833 notices or 4,165,000 oz. To obtain what is left to be served upon, I take the OI standing for Sept (1,345) and subtract out today's notices (485) which leaves us with 1,345 or 6,725,000 oz left to be served upon our longs.

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

4,165,000 oz (served) + 6,725,000 oz (to be served) = 10,890,000 oz

We lost a rather large 755,000 oz to Blythe and her gang.

In gold:

Quote:

The total number of notices filed so far this month is represented by 657 notices or 65700 oz of gold.

To obtain what is left to be served upon, I take the OI for September (91) and subtract out today's notices (7)

which leaves us with 84 notices or 8400 oz left to be served upon.

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

65,700 oz (served) + 8,400 oz (to be served upon) = 74,100 oz or 2.304 tonnes of gold

We lost 100 oz of gold standing.

The Bloomberg Baltic Dry Index (BDI) was down 1.32% at 675. WTI crude was up 0.17 today at 95.53. Brent closed at

112.55, down 1.00. The spread between Brent and WTI was 17.02, down 1.17. US Treasury 30 year closed at 2.790 up

0.085. The dollar was down 18 points at 81.04. The PPT/Dow was up handsomely at 244.52 and settled above the important level of 13,000 at 13,292.00. FaceBook closed at 18.96 up 0.38 (2.05%) and silver closed at $32.71. The Nov CCI was 581.00, up 2.00. September wheat was up 26.20 at 872.00. I guess they must be reading my report <g>. September corn was 797.20 up 7.40. October lean hogs were down 1.875 at 71.750. October feeder cattle were down 0.350 at 147.900. September copper was 3.5235, down 0.0085. October natural gas was down 0.019 to close at 2.776. October coal is 56.70 down 0.37.

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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What Happens In An Economic Collapse

Wonder what would happen when the quadrillion dollar derivative market goes boom?  Here is an excerpt from Matt Bracken who seems to have a clue.  The following is just a very condensed snapshot of his grim but compelling narrative:

What if a cascading economic crisis, even a temporary one, leads to millions of EBT (electronic benefit transfer) cards flashing nothing but zeroes? Or if the government’s refusal to reimburse them causes supermarket chains to stop accepting them for payment? The government can order the supermarkets to honor the cards, but history’s verdict is clear: If suppliers are paid only with worthless scrip or blinking digits, the food will stop.

STEP ONE: FLASH MOB LOOTING

In my scenario, the initial riots begin spontaneously across affected urban areas, as SNAP (supplemental nutrition assistance program) and other government welfare recipients learn that their EBT cards no longer function. This sudden revelation will cause widespread anger, which will quickly lead to the flash-mob looting of local supermarkets and other businesses. The media will initially portray these “food riots” as at least partly justifiable. Sadly, millions of Americans have been made largely, or even entirely, dependent on government wealth transfer payments to put food on their tables.

In the absence of an effective official police response to the exploding levels of violence, suburbanites will first hastily form self-defense forces to guard their neighborhoods.  The sniper ambush will predictably be used as a counter to rampaging mobs armed only with short- to medium-range weapons. This extremely deadly trick was developed by our war fighters in Iraq and Afghanistan, taking advantage of the significant effective range and firepower of our scoped 5.56mm rifles. Tactics such as the sniper ambush may not be seen early in the civil disorder, but they will surely arise after a steady progression of atrocities attributed to rampaging minority urban youths.

Read the full article here:
http://westernrifleshooters.wordpress.com/2012/09/03/bracken-when-the-music-stops-how-americas-cities-may-explode-in-violence/#comments

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Trade Wars

In Lindsey William's 4 Sep piece on GoldSeek Radio, he said we could know the end of the present economic order was near when three things happened that would bring down the global derivative leviathan:

1) Currency wars.  Draghi just fired the opening salvo in that saga this week when he essentially promised to print to infinity and the Swedes unexpectedly devalued their currency by 0.25%.

2) Trade wars.  Apple sued Samsung in a parochial domestic court over alleged patent infringements and won, thus putting Samsung in a very unfavorable position in the American market.  Trouble is, Apple may face a difficult task invalidating two HTC Corp. (2498) patents for data transmission in wireless devices, a U.S. trade judge said at a trial that could lead to import bans on the newest iPad and next version of the iPhone.

3) Interest rates going up.  Don't know if this is in play yet, but the US 10 year has been making some pretty big moves up recently, at least until this last Friday.  John Moore is even saying there will be a planned economic crash the 3rd week in October

.  Lindsey Williams reported last week that Raytheon received a message from the government warning them of a government shut down in the near future. 

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Harvey 8 Sep 2012

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

DS: The FDIC Friday night seized the First Commercial Bank in Bloomington, MN. It has been over a month (3 Aug 12) since they have seized one even though many of them are actually insolvent when their assets are marked to market.

DS and Harvey, the Commitment of Trader's Report (COT): Gold: The commercials went net short another 15,762 contracts in full view of our regulators. This is bearish as they must act forthwith to lessen their exposure or else risk commercial failure. The risks involved are 1) not being able to deliver due to many buyers standing for actual physical delivery and there not being enough physical available to meet contract obligations (the Chinese have been shipping it to Beijing), 2) a paper market commercial signal failure where the paper markets go limit up every day on the recognition there is no supply, forcing a horrendous short squeeze on leveraged shorts who have to meet margin calls and can't find anyone willing to sell at any price before the market closes limit up so they can cover their short positions, 3) gold prices soar forcing catastrophic derivative calls that escalate with increasing gold price (some paper derivatives are based on a bet on the price of a PM).

Silver COT: the commercials went net long by 6346 contracts which again is bearish.  Against a big rise in silver certainly raises some concerns on the health of the banks of a possible commercial failure in silver.

The Times of India and GATA: On a day gold prices touched a new high, the Reserve Bank of India urged the public against choosing gold as an asset for savings or investment. "Because interest rates are very low, people are investing in gold. But the poor should never invest in gold, for whenever they have purchased gold, it either ends up in the temple or in the hands of the moneylender or, at most, it may be given away during a daughter's marriage," said RBI Deputy Governor K.C. Chakrabarty. This is the second time that the deputy governor has spoken out against investing in gold. Despite the import drop due in part to higher tariffs on gold, domestic gold prices continue to run high with the yellow metal being seen as a strong hedge against inflation.

Harvey via Goldcore on physical trading overnight in London, Thursday night: Mainland China continues to buy massive amounts of gold. In July they purchased 75.84 metric tonnes from their gateway, Hong Kong. At this rate they will import close to 910 tonnes or 38.% of annual global production ex China itself. This is double from one year ago. Demand is now rampant in China, Russia, Turkey and Iran. The bankers are having a tough time shorting paper when the physical demand is dwarfing paper shorts. The LBMA must have some serious problems as most of the physical for these countries are sourced here. The bankers will be left with a bag of paper gold against their massive shorts. We should be on the lookout for some bankers falling out of windows this weekend!!

Chris Powell (GATA): Tom Fitzpatrick gave King World News six charts suggesting that a certain yellow precious metal, long disparaged by everyone aspiring to respectability, is a far better investment than anything else [DS: except silver]. Fitzpatrick's charts and accompanying commentary are posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/9/7_KWN...

Jim Sinclair explained why gold is such a good buy at his JSMineSet blog: Coordinated central bank monetary "stimulus" is taking place and gold is going to and through $3,500.

Harvey: Overnight China rebounded with news that government is going to spur development of roads and subways. The markets took this news with delight as the Shanghai stock exchange rose by a huge 4%, the most in over 4 months. The news sparked Europhoria in Europe with all bourses in the green. The Eur/USA key currency exchange rose to 1.27 and the Canadian dollar rose to 1.019 against the USA dollar. As we head into the jobs reports, the risk on trade has the algos going full steam. The Spanish Ibex rose despite industrial production falling 5.4%, far more than the projected 5.2%. German industrial production rose unexpectedly, as it also did in the UK, sending signals for green light buying of equities throughout Europe early Friday morning.

Harvey: The following is your most important read for the day courtesy of Bruce Krasting.

I would have to say that Bruce Krasting, Mark Grant and Wolf Richter all understand the European situation perfectly. Please follow these guys and you can never go wrong.

Krasting begins his commentary with the reasons the world were enamoured with Draghi's European operation "twist". There was something for everyone:

1. To appease the core nations like Finland, Netherlands and Austria he stated that conditionality will be stiff. Spain cannot receive funds unless they adhere to strict guidelines brought forth by Troika like authorities.

2. The markets rejoiced because of one word: UNLIMITED.

Draghi's bazooka is unlimited bond buying. He removed any uncertainty in the minds of investors as to how he was going to proceed with respect to the Euro and the EU.

3. To appease the bond markets, he stated that purchases by the ECB will not be senior but will be pari passu with other holders. Markets rejoiced that the bondholders would not receive a haircut. There will be no preference to the bonds that Draghi would purchase on the open market.

4. Draghi lowered the collateral requirements that basically they will accept anything. This unglues the EU funding capital markets.

5. To satisfy some guys at the Bundesbank (and not all) he stated that all purchases will be STERILIZED.

Some of the Germans are happy as the operation twist program will not be inflationary.

6. Thus, the ECB can transmit monetary policy to throughout the region. That means that Italy and Spain will receive the same benefits as the rest of the core nations. The low interest rates that have been bestowed on Germany and their core nation friends will flower this gift to the periphery nations of Europe.

This is why Europe's stock exchanges have risen in full force these past few days.

However, Krasting states that this is all nonsense and explains why:

What is new? Nothing. It is the same SMP with a new name OMT.

On the subject of conditionality, how will Spain get it's funds? Simply by begging and then handing the keys of government to Troika like officials, something that Rajoy just will not do. He wants unlimited funds and no austerity for his people and he does not want to lose his job. What is worse, he signs up for the entire EU/IMF austerity program. As Bruce Krasting points out, the rage in Spain will be nothing when you compare what will happen when Italy comes begging!!

On the important use of UNLIMITED:

Draghi said "unlimited" and with that he bought the EU some time, but he made an all in bet. The consequences of an EU member leaving has now been raised dramatically. Mario has created an "all or nothing" scenario for the EU. When a member leaves, it will crash the entire system. Systemic risk in Europe has increased as a result of Marios' efforts. I don't think the markets (or the politicians) realize how high the stakes have become. Krasting's key line: "How can anyone promise "unlimited" action when there are always limits?"

There are two possible outcomes that will eventually happen:

i) Mario lives up to his promises and absorbs unlimited quantities of Eurobonds from Spain and Italy

ii) Mario blinks and does not fulfill his promise to purchase and backs off at that crucial time.

Either way, the Euro is finished. By using the term unlimited he stalled for time but in return he has made an all in bet. When a member leaves, it will crash the system. The stakes now are becoming extremely high.

On a further point, he stated that countries that receive unlimited funding must adhere to strict terms, something that countries have not done in the past. Spain could not have the level of austerity demanded by the Periphery. If this happens, the ECB will stop its purchases.

Krasting does not believe that the ECB will be pari passu with all bondholders. The IMF are always senior and if they are involved, you can bet the farm that they will be first in line.

The new collateral requirements will have German and Finnish citizens up in arms as they receive crap collateral for freshly minting euros.Their citizens will revolt, ask for a referendum and then leave the Euro.

As for the STERILIZED purchases:

Krasting believes only a small amount can be done. Once it exceeds 200 billion euros, it will be impossible. Inflation must follow.

And finally he concludes that there will not be a transmission of monetary policy. In order for Spain or Italy to receive bailout funds there must be a crisis. This is not the environment for the smooth transmission of monetary policy.

Harvey: Yesterday, the BLS released its jobs report and lo and behold the USA added only 96,000 jobs in August far less than what was expected. You will recall that to stay even with unemployment, the USA must engineer at least 150,000 new jobs per month as the population grows. Not only was the report for AUGUST bad but they also scaled back the growth in the previous two months. Most of the gain in jobs was due to their plug B/D. For newcomers, the BLS assumes that for every job loss ( D for Death), an entrepreneur is born to create jobs (Birth = B). This figure is nothing but a phony. The old method of producing unemployment for the USA (U6) showed unemployment at 14.6%. The all important labour participation rate fell to a low of 63.5%. This is a measure of those working plus those wishing to work divided by the entire labour pool. It seems many poor souls have just given up looking for a job and they are not counted in the unemployment figures.

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

Quote:

Gold had a monstrous day on Friday closing at $1737.70, rising by $35.10 dollars on the day. Silver joined in the fun rising by $1.02 to finish the Comex session at $33.64.

In the close of the access market here are your final prices for gold and silver:

Gold: $1735.30

Silver: $33.68

Thursday, Sep 6th Gold and Silver Action (basis 1:30 PM EST)

http://harveyorgan.blogspot.com/2012/09/poor-jobs-report-causes-gold-and-silver.html

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

In silver

Quote:

The total silver Comex OI continues to confound our bankers. The silver complex OI rose marginally by 110 contracts from 119,285 to 119,395. Obviously silver is trading different to gold as the bankers seem to loathe supplying additional paper short. No doubt we lost quite a few bankers on Friday in both gold and silver.

The front active delivery month of September saw its OI fall from 727 contracts from 1830 to 1103. We had 485 delivery notices filed on Thursday so we lost another 242 contracts or 1.21 million oz of silver to cash settlements. With silver rising exponentially these past few days, the chances that these guys rolled with no cash incentives are slight.

The non active silver month of October saw its OI fall by 23 contracts and presumably these guys rolled into December.

The next big active month for silver will be December and "no doubt" this month "may" play out as a "Battle of Waterloo" for our bankers as they try with added vigour defending their turf in the paper precious metals game.

In gold

Quote:

The total Comex gold OI rose by 4598 contracts with this weekend's final reading registering 448,693 compared to Thursday's level of 444,095. No doubt the bankers had their midnight oil meeting, Thursday night, planning to cause some raucous in gold and silver as they generally do. However the poor payroll results nullified that in a hurry causing our bankers to retreat to higher ground. They will regroup and try again at a time set forth by the banking cartel with government inner circle joining in on the criminal collusion. The front Sept gold month saw its OI fall from 91 contracts to 79 for a loss of 12 contracts. We had 16 notices filed on Thursday so we again gained in gold ounces standing. The next active gold month is October and we are 31/2 weeks away from first day notice. In October, we had the OI fall from 27,922 to 26,657 as the longs would rather play the more liquid and fun month of December. Thus the fall in OI registers 1265 as half of these guys rolled into December. The active December contract saw its OI rise by only 680 contracts from 300,196 to 300,876. The bankers and inner circle government higher echelon are watching this level with bated breath.

Volume

In silver

Quote:

The estimated volume at the silver Comex on Friday registered a superb 56,702 contracts.

The confirmed volume on Thursday was even better at 58,480.

In gold

Quote:

The estimated volume at the gold Comex on Friday registered a terrific performance at 222,559 with little switches.

The confirmed volume on Thursday was also very good at 195,295.

Inventory Numbers

In silver:

Quote:

Friday was also very quiet in the silver vaults.

We had no dealer activity.

The customer had the following silver deposit: 600,848.70 oz into Brinks

The customer had the following silver withdrawal: 30,599.80 oz.

We had one adjustment of 58,923.90 oz of silver leave the customer at Scotia and enter the dealer at Scotia.

Thus the registered or dealer silver rests this weekend at 38.431 million oz

The total of all silver rests at 141.384 million oz.

In gold:

Quote:

There was very light activity inside the gold vaults on Friday.

We had no dealer activity.

The customer received the following gold deposit:

i) Into HSBC vault: 1,768.25 oz

The customer had a tiny withdrawal:

i) Out of JPM: 4,134 oz.

we had only one adjustment whereby 100.14 oz was adjusted out of the customer side of Scotia and enter the dealer side in a probably lease arrangement.

The total registered or dealer inventory rests this weekend at 2.584 million oz or 80.37 tonnes of gold.

Delivery Notices

In silver:

Quote:

The Chicago Mercantile Exchange (CME) notified us that we another chunky 157 notices filed on Friday for785,000 of silver.

In gold:

Quote:

The CME notified us that we had only 5 notices filed for 500 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 silver notices filed so far this month total 990 for 4,950,000 oz. To obtain what is left to be filed upon, I take the OI standing for September (1,103) and subtract out Friday's delivery notices (157) which leaves us with 946 or 4,730,000 oz 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:

4,950,000 oz (served) + 4,730,000 oz (to be served upon) = 9,680,000 oz

we lost another 1.21 million oz of silver to cash settlements.

In gold:

Quote:

The total number of notices filed so far this month total 678 for 67800 oz of gold. To obtain what is left to be filed upon, I take the OI standing for December (79) and subtract out Friday's deliveries (5) which leaves us with 74 notices or 7400 oz left to be filed upon our longs.

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

67,800 oz (served) + 7,400 oz (to be served upon) = 75,200 oz (2.34 tonnes of gold).

We gained 400 oz of additional gold standing. This is a good performance for physical deliveries in a generally poor delivery month.

The Bloomberg Baltic Dry Index (BDI) was 669 down 0.89%. WTI crude was 96.42 up 0.89 today. Brent closed at 114.15, up 0.89. The spread between Brent and WTI was 17.73, up 0.71. US Treasury 30 year closed at 2.825 up 0.035. The dollar was down a large 0.79 points at 80.25. The PPT/Dow was up 14.64 and settled above the important level of 13,000 at 13,306.64. FaceBook closed at 18.98 up 0.02 (0.11%) and silver closed at $33.68. The Nov CCI was 585.00, up 4.00. September wheat was up 12.60 at 884.60. September corn was 795.00 down 2.20. October lean hogs were down 0.400 at 71.350. October feeder cattle were down 0.325 at 144.300. September copper was 3.6560, up a large 0.1325. October natural gas was down 0.094 to close at 2.682. October coal is 56.42 down 0.28.

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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Harvey 10 Sep 12

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

Dave from Denver: "I just did a quick calculation. JPM is short at least 130mm ozs of silver via futures vs.38mm of deliverable silver (registered). So JPM alone is short 340% of the deliverable silver on the Comex. That's just the Comex and doesn't include LBMA forwards and OTC derivatives."

Gene Arensberg (Got Gold Report): Clearly gold is once again gaining purchasing power in most or all fiat currencies. The charts are irrefutable proof of it. Probably no one believes the breakout is just a random effect, or a movement on the market’s whim. The very powerful consolidation breakouts are answering something the market has been anticipating. Put simply, the collective market has been anticipating that governments would attempt to "print their way out of a giant debt hole." We can point to one trigger across ‘the pond,’ with the European Central Bank announcing its intention to do "unlimited bond buying" for a 3-year period, ushering in a new round of fiat money printing. Other catalysts include less than good economic data here in the U.S., the U.S. presidential election now just two months away with the U.S. headline unemployment rate still over 8% and the incumbent’s chances for reelection flagging ... along with statements by the Federal Reserve that poor U.S. jobs performance is of "grave concern."

Bill Holter (Miles Franklin): Bill Gross says that Gold, of all things, is a better investment than bonds or stocks. Has he lost his mind? Here is a guy who manages something like $1 trillion and he thinks that GOLD is better than stocks or bonds? Uh...what if he - or OTHER large portfolio managers - decide to buy some Gold as a hedge?

Bill Gross: [There's] a diminished or dying cult of both bonds and stocks from the standpoint of a belief that they can return 10% ...And there has been an unlimited amount of paper money over the past 20 to 30 years and now - in this period of central bank expansion where it's QE1 or QE2, or whether it's the LTROs of the ECB or this potential new program ... then central banks are at their leisure to basically print money. Gold is a fixed commodity that has a considerable store of value that paper money has not....When a central bank starts writing checks and printing money in the trillions of dollars, it's best to have something tangible that can't be reproduced, such as gold.

DS: Gold trading in Euros reached a new record high of 1,360 per oz today. This will be noticed by Europeans as they see this as their signal to "pour it on" as they trade in their euros and buy gold. Gold priced in rupees has also reached or surpassed its all time high. Ranting Andy is reporting it in terms of a gold mutual fund that trades in rupees and has not yet surpassed its all time high, but GoldMoney and others show gold in rupees having already broken out http://www.goldmoney.com/gold-charts.html, http://bse2nse.com/metals-ex-gold/2056-live-gold-price-chart-india-inr-gram-historical.html, etc.

GoldCore: UBS has joined JP Morgan, Goldman, Bank of America and others in revising upwards its gold forecast. UBS raised its one-month gold forecast to $1,850 an ounce, from $1,700 and the three-month estimate to $1,850 from $1,750 an ounce in a report e-mailed today. UBS also revised higher their estimates for silver and see silver 10% higher at $37 an ounce in one and three months from $33.50 today. UBS previous silver forecast was from $32 and $35. Gold is being supported by the unrest in South Africa which continues to destabilise the mining sector.

Gold Fields said this morning that some 15,000 workers were still on strike at one of its gold mines outside of Johannesburg. The tally of workers on strike at the West Section of the KDC Gold Mine is about 3,000 higher than last week. All production at the mine has been brought to a standstill.

Harvey: We find 54% of Germans hoping that the German Constitutional Court will just say "nein" and be done with it. No more money to the EU funded by Germany is what they wish. In other news, we learn that the Greek Prime Minister does not have agreement on cuts required by the Troika. We doubt very much if any funds will be advanced if they do not have agreements on this front. Now that everyone is back from their holidays, we see that teachers, pharmacists, judges, doctors and teachers are all planning strikes against the austerity measures. In the words of Yogi Berra: it is deja vu, all over again. None of this is new and since in Europe the popular vote no longer matters on important matters such as whether or not to perpetuate failed monetary regimes, the only opinion is that of several red robe-clad men and women.

Harvey: Wow! Target 2 claims were published this morning and the markets did not like what they saw:  The German Bundesbank financing rose to a record of 751.4 billion euros (almost 1 trillion usa dollars) as Germany funded the periphery as follows:

i) Spain...a record 415 billion euros

ii) Italy 280 billion euros (also a record)

iii) Greece: 105 billion euros.

This is a crisis deepening and ready to implode all of Europe!! DS: The growth of Target 2 has gone exponential!http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/09/Target%202%20Aug.jpg

Graham Summers (Phoenix Capital Research): Mario Draghi's (ECB) use of the word "conditions" completely negates his use of the word "unlimited." Saying that you’ll buying "unlimited" bonds as long as EU sovereigns meet certain "conditions" actually means nothing. Greece has received over €200 billion in bailouts under "conditions." How did that work out? So the ECB is not actually announcing a massive new bond-buying program. Instead it’s just announced that it’s willing to provide more money as long as EU nations hand over their fiscal sovereignty and implement austerity measures. This is nothing new. In fact, this has been the exact same program that the ECB’s had in place ever since the EU Crisis began in 2010. The fact that it has changed the wording around a bit changes nothing from a fundamental standpoint. Indeed, the program the ECB "announced" is, if anything, the last thing Spain or Italy actually wants.

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

Quote:

Gold closed down today by $9.00 to $1728.70 as the bankers decided that a mini raid was necessary as they had a look at the burgeoning OI figures.

Silver on the other hand only lost 7 cents to $33.57 as the bankers are loathe to supply the necessary short paper.

Friday, Sep 7th Gold and Silver Action (basis 1:30 PM EST)

http://harveyorgan.blogspot.com/2012/09/baltic-dry-index-collapsesitalian-gdp.html

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

In silver

Quote:

The total silver Comex OI rose by only 876 contracts as these guys are playing to a different drummer. The total OI for the silver complex rests tonight at 120,271 compared to 119,395 from yesterday. The active September contract saw it's OI fall by 203 contracts falling from 1103 to 900. We had 157 delivery notices on Friday so we lost 46 contracts or 230,000 oz to a probable cash settlement. The non active October silver contract saw it's OI rise by 78 contracts from 194 to 272. Probably this is where our cash settlements landed. The next big delivery month is December and here the OI rose by 777 contracts from 78,070 to 78,841.

In gold

Quote:

The total Comex gold open interest rose big time today to the tune of 8396 contracts rising form 448,693 to rest tonight at 457,089 as the specs pile into gold and the commercials supply the non backed paper. This is occurring under the "watchful" eye of the regulators. The front month of September (non active for gold) saw its OI fall from 79 to 71 for a loss of 8 contracts. We had 6 notices filed on Friday so we lost 200 oz of gold standing. We are now 3 weeks away from first day notice which will occur on Friday Sept 28.2012. The October gold contract saw it's OI rise by 348 contracts from 26,657 to 27,005. October is generally a very poor delivery month as most investors wish to play December. The December contract saw it's OI rise a huge 7026 contracts and it was here that most of the speculators piled into gold.

Volume

In silver

Quote:

The estimated volume today at the silver Comex was good at 42,493.

The confirmed volume on Friday was superb at 64,621.

In gold

Quote:

The estimated volume today was very low at 104,886.

The confirmed volume on Friday was immense at 232,406 contracts.

Inventory Numbers

In silver:

Quote:

Again there was considerable activity inside the silver vaults. We had no deposits of any kind.

We had the following dealer withdrawal: 390,018.86 oz at Brinks

We had the following customer withdrawal:

i) 101,262.14 oz from Brinks

ii) 975.60 oz from Delaware

iii) 1,003.5oz from HSBC

Total withdrawal of silver; 213,255.25 oz

The registered silver inventory rests tonight at 38.041 million oz

The total of all silver rests at 140.678 million oz.

In gold:

Quote:

We had considerable activity today inside the gold vaults.

We had no dealer deposit.

We had the following customer deposit:

Into Brinks: 1900.23 oz

We had the following dealer withdrawal from Scotia:

i) 65,134.56 oz from Scotia

We had the following customer withdrawal from Brinks:

96.86 oz

And then we had another strange one:

We had an adjustment of 1900.23 oz adjusted out of Brinks customer and back into the dealer at Brinks.

This was adjusted out back into the dealer once it was received by Brinks as a customer deposit.

The registered or dealer gold inventory rests tonight at 2.521 million oz or 78.07 tonnes of gold.

Delivery Notices

In silver:

Quote:

The CME notified us that we had only 3 notices filed today for 15,000 oz.

In gold:

Quote:

The CME notified us that we had 23 notices filed for 2300 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 993 for 4,965,000 oz. To obtain what is left to be served upon, I take the OI standing for September (900) and subtract out today's delivery notices (3) which leaves us with 897 notices or 4,485,000 oz left to be served upon.

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

4,965,000 oz (served) + 4,487,000 oz (to be served upon) = 9,450,000 oz

We lost 46 contracts or 230,000 oz of silver standing today from Friday.

In gold:

Quote:

The total number of notices filed so far this month total 701 for 70100 oz. To obtain what is left to be served upon, I take the OI standing for Sept (71) and subtract out today's notices (23) which leaves us with 48 notices or 4800 oz left to be served upon our longs.

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

70,100 oz (served) + 4800 oz (to be served upon) = 74,900 oz 2.33 tonnes of gold.

We lost 200 oz of gold standing.

The Bloomberg Baltic Dry Index (BDI) was an occult 666 down 0.45% (3 points, which I can hardly characterize as a "collapse", though it is very close to the 2008-09 bottom. WTI crude was 96.54 up 0.12 today. Brent closed at 114.54, down 0.39. The spread between Brent and WTI was 18.00, up 0.27. US Treasury 30 year closed at 2.842 up 0.017. The dollar was up 0.11 points at 80.36. The PPT/Dow was down 52.35 and settled above the important level of 13,000 at 13,254.29. FaceBook closed at 18.84 down 0.17 (0.90%) and silver closed at $33.34. The Nov CCI was 587.50, up 2.50. September wheat was down 16.40 at 868.20. September corn was 781.00 down 14.00. October lean hogs were up 1.225 at 72.575. October feeder cattle were down 0.175 at 146.400. September copper was 3.700, up 0.0440. October natural gas was up 0.130 to close at 2.812. October coal is 56.33 down 0.09.

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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At Risk Funds Now Flooding Into Gold

Davos Sherman Okst:  A currency’s price in gold is the canary in the coal mine, and it is causing institutional money to have a Sterling Stamos Moment. They’ve spotted the biggest Ponzi scheme in global economic history and as a result have decided the first out is the best out, and it is now redemption time.  Those risked funds are now flooding into gold. The currencies will fall, as all past fiat currencies litter history with broken promises, and the fall will be parabolic as events force a shift from things being priced in paper to things being priced in the worlds only long lasting currency:  gold. 

Paging “Smart Money’s” Marc Faber: Finally, two hands in your audience were raised when for the hundredth time you asked large institutions if they new what gold was.  Bill Gross’s hand went up first.  His fund, PIMCO, the world’s largest Bond Fund (that is aside from Bernanke’s and Draghi's), is buying gold.  Let’s give that a second’s thought.  A billionaire, that made a fortune in paper, is shunning paper and buying gold?  Yes, PIMCO is pimping gold and on Bloomberg TV no less.

Next up was Ray Dalio’s Bridgewater Associates, the world’s largest hedge fund, is echoing Bill Gross on why YOU need to own gold.  Gold is primarily an alternative to fiat currency and a storehold of wealth. The main advantage that gold has over other currencies is that it can’t be printed.  I wouldn’t call Dalio’s Bridgewater Associates “Dumb Money”, but the title “Smart Money” is reserved for Jim Sinclair (who top ticked the 1980s gold market and has been tirelessly beating this gold markets drum, even during the dark days thereafter), Eric Sprott (he says he is "all in"), Egon von Greyerz (who punctuates with confidence and certainty that this time is historic, because it is the first time all currencies are getting flushed at once), Marc Faber (who was once Greenspan’s boss and knows Greenspan is a moron), and those like them.  The gang who got in around 2002 has doubled their money, not once, not twice, but three times.  Run the “Rule of 72" on that for a period of 3.3 years, and see that the Smart Money was earning 22% while everyone else was getting taken to the woodshed or just treading water as Bernanke et al. decimated the value of every currency's purchasing power. 

Smart Money also clearly articulates the differences between holding paper and holding physical.  That will soon be of utmost importance.  Most fail to grasp this, and likely never will.  Smart Money also mentions silver, which to gold is 50:1 (50 ounces of silver buy 1 ounce of gold), and many expect it to go to 7:1 and some even 1:2.  Paging nouveau genius’s just joining the 10 year old gold party: Yah might wanna look at silver too there “Champs”. 

http://beforeitsnews.com/gold-and-precious-metals/2012/09/sterling-stamos-moment-opens-hells-floodgates-those-risked-funds-are-now-flooding-into-gold-2449468.html                    

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O's Birth Certificate A Fake

I don't know if this has much to do with gold and silver, but it is current news.  Sheriff Joe has come out against Mr. O with evidence his birth certificate is forged (never mind his SSAN and citizenship).  Now we have an Israeli scientific organization opining that the certificate is a forgery. 

http://www.science.co.il/Obama-Birth-Certificate.htm

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Harvey 11 Sep 12

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

GoldCore: Turkey’s gold imports were 11.3 metric tons last month alone. Silver imports were 6.7 tons, the data show. Much of these imports may be destined for Iran where imports have surged an astonishing 2,700% in just one year – from $21 million to $6.2 billion. In the first seven months of this year, Turkey's exports to Iran have also skyrocketed to $8 billion, up from $2 billion in the same period last year. And it is widely believed that the major portion of the increase, which is $6 billion, stems from the export of gold. DS: Turkey took over key command and control centers from the "insurgents" in Syria. My thesis is that Syria will invade Israel in conjunction with all of Israel's Arab neighbors. Somehow, Iran has to position supplies and personnel in Syria in order to bolster Syria and Hezbullah. What if, and this part is just conjecture, Turkey was playing the bad guy against Syria as a ploy to provide cover for Iran's clandestine movement of troops and supplies. These could be disguised as support for the "insurgents". We see that Turkey is working very closely with Iran, providing Iran support that she probably could not get from any place else. Why should we then take at face value the role that Turkey is playing in supposedly opposing Assad whom Iran wants to succeed at nearly all costs. So, on the face of it, Turkey is opposing Iran in Iran's key ally in Syria, while on the other hand supplying vital financing to Iran on the other. What if both actions are actually serving Iran? The Syrian/Iranian/Iraqi/Hezbullah/Jordan/Sinai Arabs/Palestinians/maybe Egyptian attack on Israel will reduce it to ashes (and, yes, Damascus will also become a heap), but it will kick off WWIII, send us back to the early days of the Industrial Revolution, and kill billions, but God will protect Israel. After this is over, there will be a second ingathering of Israelis from all over the earth, there eventually won't be any left anywhere except Israel, Israel will actually serve God, and their land will be the only protected place on the face of the earth.

Bloomberg: Gold inched higher on Tuesday as investors await the German ruling on the eurozone’s bailout fund and a possible US Fed decision on QE3. There are expectations of a pullback by market participants, including clients, but what tends to happen after break outs like this is that gold continues to surprise to the upside and buyers only buy with conviction after gold is at record highs in dollar terms and again making some headlines.

0800 GMT (4 AM EDT) tomorrow is the German constitutional court decision as to whether Germany can contribute to the European Financial Stability Mechanism. The court has already rejected a last bid by Peter Gauweiler to delay the case (because of Draghi’s pledge of unlimited funds to buy government bonds) and its decision tomorrow is crucial to the future of the euro and the eurozone. If Germany does not ratify the ESM treaty, the ESM and other bailout measures may be thrown into chaos leading to considerable market volatility tomorrow. A no vote would likely see a considerable increase in risk aversion. Last week, Mario Draghi announced the ECB was ready to buy unlimited quantities of short-term government bonds of nations signed up to rescues from the ESM or the temporary European Financial Stability Facility it is designed to replace.

Chris Powell (GATA): GoldMoney founder and GATA consultant James Turk today tells King World News that investors may be waiting for a pullback in gold and silver but the "currency cliff" is so close that there's a big risk that they won't get one. Turk adds that while the Federal Reserve thinks it can control inflation by manipulating the public's expections, reality still gets out of hand.

Harvey: While it appears the mainstream media has forgotten about the ongoing drama in South Africa, the tensions are rising rather dramatically around the Marikana mines (owned by LonMin mining). As Al Jazeera reports, thousands of miners (along with wives and supporters) have defied an extended deadline (brokered by the government) and decide to remain on strike. The following clip provides some rather concerning color on what is occurring as Julius Malema, the expelled ANC leader, has already been charged with inciting violence - and is "playing a rather dangerous game." He is calling for a national strike as he addresses the people: "they have been stealing this gold from you. Now it is your turn, you want your piece of the gold." The tough reality is that as extraction costs rise (energy/depth) and now miners' costs rise, then the end-product's cost must rise, or - as Melema suggests - supply goes offline.

Mineweb: In an upbeat presentation at the Denver Gold Forum, Rob McEwen forecast that gold is going to $5,000, while setting out the path forwards for the company which now bears his name - McEwen Mining. McEwen does have a pretty good track record with respect to gold. One remembers that when gold was sitting at around $700 only a few short years ago, he was adamant that it would soon hit $1,000 when to non-gold believers this seemed unlikely, yet only a few short months later the gold price did indeed rise above that level.

Harvey: German Finance Minister Schaeuble is now extremely worried about the high levels of USA debt. He questions how will they deal with this huge "fiscal cliff" coming at the globe in full force.

Tyler Durden: By now everyone knows about the collapse in Chinese iron ore consumption, electricity production and luxury good demand (see Burberry), as well as the record copper stockpiling, all of which point to the arrival of the long-deferred Chinese hard landing. Rumors, subsequential denials notwithstanding, that Chinese Hu Jintao successor Xi Jinping may or may not be missing, are not helping. Below we present yet another data point which had, for the longest time managed to diverge from the underlying Chinese economic reality, only for it too now to recouple with gravity with a bang: Chinese crude imports. Coming in at 18.4 million barrels, this was a 16% plunge from July's total imported energy needs, and is the lowest print since mid-2010 swoon, first crossed to the upside back in early 2009. Which likely is where the general Chinese economy is as well, at least in terms of actual demand. Only this time instead of going from the lower left to the upper right, to quote Dennis Gartman, it is doing the inverse.

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

Quote:

Gold closed up today by $ 3.10 dollars closing the Comex session at $1731.80.

Silver however fell marginally by 6 cents to $33.51.

Monday, Sep 10th Gold and Silver Action (basis 1:30 PM EST)

http://harveyorgan.blogspot.com/2012/09/china-records-big-drop-in-oil.html

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

In silver

Quote:

The total silver Comex OI rose by 349 contracts from 120,271 to 120,620. The active September silver contract saw its OI fall by 158 contracts from 900 to 742. We had only 3 delivery notices yesterday so we lost a huge 155 contracts to a probable cash settlement.

The non active October contract saw it's OI fall by 232 contracts to 254.

The big December contract saw it's OI fall by 463 contracts, from 78,841 to 78,378 but remains very elevated.

In gold

Quote:

The total gold Comex OI fell by a very tiny margin of 176 contracts from 457,089 to 456,913.

We had a bit of a raid yesterday even though gold and silver held its own. The bankers had trouble removing the gold leaves from the gold tree.

The non active September contract saw it's OI fall by 22 contracts from 71 to 49. We had 23 notices filed yesterday so we actually gained one contract or 100 oz of additional gold is standing.

The next active delivery month is October, and here the OI fell by 1739 contracts as these guys rolled into December. The October OI stands tonight at 25,266.

The next big delivery month is December and here the OI rose by 1724 contracts from 307,902 to 309,626.

Volume

In silver

Quote:

The estimated volume today came in at a very weak 33,241.

The confirmed volume yesterday was much stronger at 49,997.

In gold

Quote:

Our banker friends are keeping a close eye on the figure. The estimated volume at the gold Comex today came in at a very low 105,989.

The confirmed volume yesterday was just a weak at 120,766.

Inventory Numbers

In silver:

Quote:

Activity was quite light today.

We had the following customer deposit:

i) 1003.50 oz into Brinks

ii) 59,867.441 into HSBC. (this 59 thousand oz seems to be kicking around continually at the Comex)

Total deposit: 60,542.591 oz

We had the following customer withdrawal from JPM:

i) 7006.941 (JPM)

We had one adjustment of 94.319 oz out of Brinks as a removal due to a counting error.

The total registered or dealer gold rests tonight at 2.521 million oz or 78.4 tonnes of gold.

The total dealer or registered inventory rests tonight at 38.041 million oz

The total of all silver rests at 140.678 million oz

In gold:

Quote:

Activity was quite light today.

We had the following customer deposit:

i) 1003.50 oz into Brinks

ii) 59,867.441 into HSBC. (this 59 thousand oz seems to be kicking around continually at the Comex)

Total deposit: 60,542.591 oz

We had the following customer withdrawal from JPM:

i) 7006.941 (JPM)

We had one adjustment of 94.319 oz out of Brinks as a removal due to a counting error.

The total registered or dealer gold rests tonight at 2.521 million oz or 78.4 tonnes of gold.

Delivery Notices

In silver:

Quote:

The CME reported today that we had 23 notices filed for 115,000 oz.

In gold:

Quote:

The CME notified us that we had zero notices filed, and thus the total number of notices remain at 701

or 70100 oz.

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 1016 for 5,080,000 oz. To obtain what is left to be filed upon, I take the OI standing for Sept (742) and subtract out today's notices (23) which leaves us with 719 notices or 3,595,000 oz.

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

5,080,000 oz (served) + 3,595,000 oz (to be served upon) = 8,675,000 oz

We lost 155 contracts or 775,000 oz silver standing.

In gold:

Quote:

To obtain what is left to be filed upon, I take the OI standing for September (49) and subtract out today's notices (zero) which leaves us with 49 or 4900 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:

70,100 oz (served) + 4900 oz (to be served upon) = 75,000 oz or 2.332 tonnes of gold.

The Bloomberg Baltic Dry Index (BDI) was 662 down 0.60%. WTI crude was 97.17 up 0.63 today. Brent closed at 114.54, down 0.28. The spread between Brent and WTI was 17.37 down 0.63. US Treasury 30 year closed at 2.846 up 0.004. The dollar was down big (0.50 points) at 79.79. The PPT/Dow was up 69.07 and settled above the important level of 13,000 at 13,323.36. FaceBook closed at 19.43 up 0.62 (3.30%) and silver closed at $33.48. The Nov CCI was 587.50, unchanged. September wheat was down 8.20 at 860.00 (you can tell an election is coming :-(). September corn was 782.20 up 1.20. October lean hogs were up 0.150 at 72.725. October feeder cattle were up 0.100 at 144.750. September copper was 3.7145, up 0.0145. October natural gas was up 0.180 to close at 2.992. October coal is 56.47 up 0.14.

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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Harvey 12 Sep 12

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

Beni Emmanuel (EMET Report): The US Ambassador to Libya Chris Stevens and three staff members at the US consulate in Benghazi were deliberately murdered Tuesday night Sept 11 just after memorial ceremonies were held in America for the victims of the 9/11 outrage. Counter-terror sources report that far from being a spontaneous raid by angry Islamists, it was a professionally executed terrorist operation by a professional Al Qaeda assassination team, whose 20 members acted under the orders of their leader Ayman al Zawahri after special training. They were all Libyans, freed last year from prisons where they were serving sentences for terrorism passed during the late Muammar Qaddafi's rule. To mask their mission, they stormed the consulate on the back of a violent protest by hundreds of Islamists against a film said to insult Prophet Muhammed produced by a Florida real estate agent called Sam Bacile, who has been described as of Israeli origin, but that was later refuted. The operation is rated by terror experts as the most ambitious strike al Qaeda has pulled off in the last decade. According to our sources, the gunmen split into two groups of 10 each and struck in two stages: 1. They first fired rockets at the consulate building on the assumption that the ambassador's bodyguards would grab him, race him out of the building and drive him to a safe place under the protection of the US secret service; 2. The second group was able to identify the getaway vehicle and the ambassador's armed escort and lay in wait to ambush them. The gunmen then closed in and killed the ambassador and his bodyguards at point blank range.

Tyler Durden: Labour unrest sweeping across South Africa's mining sector hit top world platinum producer Anglo American Platinum on Wednesday, with striking miners blockading roads leading to shafts belonging to the mining giant, police said. The platinum price jumped as much as 1.5 percent to $1,624.74 an ounce, its highest since mid-April amid fears of more disruption to supplies of the precious metal used in jewellery and vehicle catalytic converters. The platinum price has jumped more than 17 percent since police shot dead 34 protesters at the Marikana mine of world No. 3 platinum producer Lonmin on Aug. 16, the bloodiest security incident since the end of apartheid in 1994.

Writing at GoldMoney, economics student Felix Moreno de la Cova begins setting out the arguments for gold's superiority as money over fiat money. He writes: "Gold is a finite and scarce element. There is a limited amount and it is costly and difficult to extract. Gold production typically adds 1-2 percent annually to the existing gold stock. Even in the largest gold rushes, such as mid-19th-century California, global gold production never exceeded an annual range of 3-4 percent. In contrast, the fiat electronic dollar can be created out of thin air in unlimited quantities and at almost infinite speed. Electronic dollars can be destroyed just as fast. There are no physical, logistical, real-world limits to how fast or how many dollars can be created. So even before policy, political will, and central bankers' whims are considered, the reality is that the money supply has the potential to expand much more rapidly under a pure fiat currency system. Which is why, of course, governments have been so determined to control the price of gold by both open and surreptitious means, lest more attention be called to the arbitrariness and indeed the potential nothingness of fiat money.

Jessie (American Cafe): The Sprott Physical Gold Trust (PHYS) completed its secondary offering and the underwriters allotment, raising $392 million to buy additional gold bullion to be held in the trust. The report does not indicate if they have secured title to the gold yet. Even after they have secured title, it often takes weeks and even months to achieve actual delivery to their vaults. The recent lag times in their Silver Trust expansion, and the types of bars they received, suggested a tight market for the real thing.

Jessie (American Cafe): The German high court decision was also an excuse for the traditional pre-FOMC metals smackdown [DS: Berneke is supposed to speak tomorrow about the FOMC minutes, probably around 10 AM EDT]. As you know the FOMC is in a two day meeting with their announcement coming tomorrow. The violence of the selling was concentrated and hard as you can see from the intraday silver chart below. It looks like a straightforward "Dr. Evil" strategy where a big player just comes in to a thin market and runs the stops with a mass of sell orders.

Harvey: Dave from Denver on the importance of my friend Ray Dalio advocating GOLD…Ray Dalio, who runs/owns the wildly successful Bridgewater hedge fund firm, is now openly advocating investing in gold. This is what will trigger a big instutional movement into allocating assets in a major into gold, silver and mining stocks: http://www.businessinsider.com/ray-dalio-on-the-1-reason-to-own-gold-2012-9. Institutional investing is "monkey see, monkey do," and Ray Dalio is well-respected by his peers. I've been patiently waiting for the time when big institutions would start herding some of their investing capital into the precious metals markets. It will only take a small percentage of institutional money to cause a huge move in the price of the metals and the mining stocks. You want to be positioned ahead of this. DS: Mining stocks are paper denominated in dollars. Mining stocks can be naked shorted to infinity. The miners can be shut down, have their production nationalized, and be subject to killer windfall profits taxes, cartel controlled prices of their products, and skyrocketing production costs. Miners are much more risky than physical gold silver held in one's possession.

Harvey: Here is the German response through their Finance Minister Schaeuble as he faces a visibly angry taxpayer mob. He categorically states:

i) no country can hope for the firing up of the printing presses

ii) the ECB cannot finance individual sovereigns.

iii) the ESM cannot have a banking license so as to buy up Eurobonds.

Harvey: My favourite politician from across the pond, Nigel Farage:

He attacks:

1. the notion that the EU should not have any democratic power.

2. and derides unlimited money...money does not grow on trees.

3. Mario Draghi says he will fight to the last German taxpayer to keep the lowly Mediterranean countries inside the monetary EU.

4. Mario Monti states that "nation-state democracy will BRING DOWN THE EUROPEAN UNION"

Graham Summers (Phoenix Capital Research):

The ECB:

1. Didn’t announce anything new

2. Is implementing the same policies it’s tried twice before with no success

3. Is implementing policies that neither Spain nor Italy will go for

4. Has solved nothing due to the fact that of the two mega-bailout funds, one has only €65 billion in firepower left and the other has yet to be ratified by Germany

The central banks are running out of bullets.

John Williams (Shadow Stats): The Federal Reserve is talking about "unlimited QE," or money printing, to boost employment. Economist John Williams says, "That’s absolutely nonsense. The Fed is just propping up the banks." Williams says, "You’re likely going to see a dollar sell-off... That should evolve into hyperinflation." Williams, "Doesn’t see the current system holding together without hyperinflation beyond 2014." He contends the real annual deficit is "$5 trillion per year" and says, "That’s beyond containment." Williams predicts, "Hyperinflation is virtually assured because the Fed doesn’t have any options left." Williams says people should get prepared because we are facing a "man-made disaster."

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

Quote:

Gold and silver suffered from a mini raid today.

Gold finished the Comex session at $1730.60 down only $1.20 on the day.

Silver finished the session at $33.23 down 28 cents. Silver at one point was down to $32.40.

Tuesday, Sep 11th Gold and Silver Action (basis 1:30 PM EST)

http://harveyorgan.blogspot.com/2012/09/german-constitutional-court-oks-esm-but.html

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

In silver

Quote:

The total silver Comex OI rose marginally from 120,620 to 121,050 contracts. The front active month of September saw it's OI fall from 742 to 694 for a loss of 48 contracts. We had 23 delivery notices yesterday so we lost another 25 contracts or 125,000 oz to cash settlements. The non active silver delivery month of October saw its OI fall by 3 contracts from 257 to 254. The big December contract saw it's OI rise by 338 contracts from 78,378 to 78,716.

In gold

Quote:

The total Comex gold open interest rose by 3618 contracts from 456,913 to 460,531.

The non active month of September saw its OI remain constant at 49. Since we had zero delivery notices we neither gained nor lost any gold standing.

The active October gold contract lowered in OI to the tune of 204 contracts from 25,266 to 25,062 as most rolled into December.

The big December contract rose by 2982 contracts from 309,626 to 312,608. This level will be closely watched by our bankers. Today, they felt it was necessary to try and relieve some of the gold leaves from the gold tree but they failed. The demand for metal was just too great for them.

Volume

In silver

Quote:

The estimated volume at the silver Comex today was extremely good at 70,713.

The confirmed volume yesterday came in at 38,248.

In gold

Quote:

The estimated volume today was much better than of late coming in at 192,876 contracts and no doubt the mini raid was the reason for the higher volume.

The confirmed volume yesterday was very subdued a 118,893.

Inventory Numbers

In silver:

Quote:

Activity was quite heavy in the silver vaults today.

We had the following customer deposit:

i) Into Brinks: 300,047.28 oz

ii) Into HSBC: 541,033.34 oz

Total deposit: 841,080.62 oz

We had the following withdrawal:

i) out of Brinks: 300,682.02 oz

ii) out of Scotia: 30,797.1 oz

Total withdrawal: 331,479.12 oz

We had another dandy of an adjustment whereby a monstrous 1,396,574.85 oz was adjusted out of the dealer and back into the customer. No doubt that this will be used in the settling process.

The registered or dealer silver inventory rests tonight at 39.438 million oz

The total of all silver rests at 141.185 million oz.

In gold:

Quote:

Activity was quite light today.

We had the following customer deposit:

i) Into HSBC 1323,152.497 oz

ii) Into Scotia: 7006.947

Total deposit: 139,159.444 oz

We had the following withdrawal:

i) 192.90 oz out of HSBC

ii) 64.3 oz out of Manfra

Total customer withdrawal: 758.64 oz

We had no adjustments.

The dealer or registered inventory rests at 2.521 million oz (78.07 tonnes of gold)

Delivery Notices

In silver:

Quote:

The CME reported that we had a chunky 270 notices for 1,350,000 oz of silver served upon our longs.

In gold:

Quote:

The CME notified us that we had again zero notices filed for zero ounces.

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 1296 for 6,480,000 oz. To obtain what is left to be served upon our longs, I take the OI standing for September (694) and subtract out today's notices (270) which leaves us with 424 notices or 2,120,000 oz.

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

6,480,000 oz (served) + 2,120,000 (oz to be served upon) = 8,600,000 oz.

We lost another 125,000 oz of silver standing, probably due to cash settlements.

In gold:

Quote:

The total number of notices remain at 701 for 70,100 oz.

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

70,100 oz (served) + 4,900 oz (to be served upon) = 75,000 oz the same as yesterday, or in tonnage: 2.332 tonnes.

The Bloomberg Baltic Dry Index (BDI) was 661 down 0.15%. WTI crude was 97.01 down 0.16 today. Brent closed at 115.89, up 1.35. The spread between Brent and WTI was 18.88 up 1.51. US Treasury 30 year closed at 2.926 up 0.080. The dollar was down 0.12 points at 79.74. The PPT/Dow was up 9.99 and settled above the important level of 13,000 at 13,333.35. FaceBook closed at 20.93 up 1.50 (7.73%) and silver closed at $33.31. The Nov CCI was 590.00, up 2.50. September wheat was up 7.00 at 867.00. September corn was 771.00 down 11.20. October lean hogs were up 0.700 at 73.425. October feeder cattle were up 0.375 at 147.750. September copper was 3.700, down 0.0045. October natural gas was up 0.071 to close at 3.063. October coal is 55.57 down 0.90.

The full Harvey report can be found here: [noparse]http://www.tfmetalsreport.com/forum/4132/harvey-organ-should-

be-interesting-read-today[/noparse]

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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Joined: 06/14/2011
Hat Tips: 12533
Posts: 2171
Harvey 13 Sep 12

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

Harvey: This is the first time I can recall that the following as happened to futures gold trading. It seems to me that our bankers are in a little trouble tonight!! NEW YORK--Exchange operator CME Group Inc. (CME) said it halted trading in gold futures twice Thursday to prevent excessive price volatility, according to an email from a spokesman. Stop Logic, a type of circuit breaker that pauses trading for between five and 20 seconds, was triggered at 12:14:47 EDT and at 12:31:20 EDT Thursday. "Stop Logic offers market participants the opportunity to provide additional liquidity and permits the market to regain its equilibrium," the spokesman said in the email. Comex gold futures for December delivery, the most active contract, settled up 2.2%, or $38.40, at $1,772.10 a troy ounce.

Harvey: The news that caused the spark in the precious metals and the Dow was the Bernanke announcement of QE to infinity. He announced that the Fed will purchase up to 40 billion dollars of mortgages per month indefinitely.It will also continue with it's program of "operation twist". Please, please note that this will now officially go onto the balance sheet of the Fed. The risk of hyperinflation has now heightened.

Beni Emmanuel (EMET Report): Western sanctions against Iran have apparently been doing their job. Iran's currency, the real, continued its freefall spiral downward in value. The Iranian currency on Monday alone lost 8% of its value against the dollar. Currently, the exchange rate is 26,400 reals per dollar. Monday's drop followed a fall of 7% in the value of the currency on Sunday. But still Iran survives financially - and that may be, say experts, because Iran has found a way to outsmart the sanctions against selling their oil overseas. An investigation by Reuters shows that Iran is using a small, out of the way port off the coast of East Malaysia to store millions of barrels of oil. The oil is loaded onto ostensibly "empty" ships, with workers supplying ships from Asian countries with Iranian oil under cover of night. The ships operate under Panamanian flags, and are docked in the tax-haven port of Labuan, an offshore financial center about the size of Manhattan, Reuters said.

GoldCore: It is worth remembering that gold, silver and the platinum group metals (PGMs) have seen strong gains in the last 30 days and therefore a correction is possible [DS: Anything is possible, but with the CME pulling circuit breakers, the ME melting down, and the Fed and the ECB printing to infinity, I don't see a pullback anytime soon]. In the last 30 days (since August 13th), platinum has risen by 18.9%, silver by 18.7%, palladium by 18.4% and gold by 7.6%. All remain well below their nominal record highs (see charts) and more importantly well below their inflation adjusted highs. All will most likely continue to rally especially if the Fed announces QE3 today as investors turn to precious metals to hedge substantial money printing by governments and the real risk of future inflation. "The Euro bailout measures and the opening of the monetary policy floodgates by the central banks are likely to result in higher inflation in the medium to long term," says today's Commerzbank commodities note.

The strikes and violence in South Africa's gold and platinum industries are supporting and may contribute to higher prices. Machete-wielding strikers forced Anglo American Platinum, the world's No.1 platinum producer, to shut down some of its operations in South Africa, sending spot platinum to a five month high of $1,654.49. Spot palladium gained 0.9% to $677.20, and reached $680.50 earlier in the session -- a four-month high yesterday.

Harvey: Overnight in Australia, we saw this nation's largest iron ore producer, Fortescue, hit hard due to the massive slowdown in China. It has asked for debt waivers as liquidity fears have sent this once highly stock plummeting. As I have mentioned to you on many occasions, if China catches a cold, the rest of world catches pneumonia

Harvey: In the elections in Holland the ruling liberal party took 41 out of 150 seats. They narrowly edged out the labour party that took 39 seats. They could have either a centre right or centre left coalition which would be good for the markets and they would solidly back Germany on it's demands. Greek officials are meeting the Troika and they have signed off on 1/2 of the cuts proposed. They have identified 40 uninhabited islands that could be sold to lower their debt. Good luck to anyone stupid enough to buy them.

Ambrose Evans Pritchard (Telegraph UK): The German court decision bans eurobonds, debt-pooling or fiscal union under the existing Basic Law. Any alienation of the Bundestag’s budgetary powers would require a new constitution and a referendum. “This is the key clause,” said Hans Redeker from Morgan Stanley. “The court’s ruling is 'back-loaded". The consequences will hit later. For now we are living in a monetary paradise with the ECB ready to do some heavy weightlifting, so we think risk assets will continue to rally until Christmas. “An acquisition of government bonds on the secondary market by the ECB aiming at financing the Members’ budgets independently of the capital markets is prohibited, as it would circumvent the prohibition of monetary financing,” the ruling said. Germany’s judges are holding a tight leash and pulling it tighter with each successive ruling.

Wolf Richter (TestosteronePit): The French and Dutch voted to hold on to their national sovereignty in a 2005 referendum. The politicians got the message: don't let the riffraff decide. Such matters are best handled by the elite—politicians, bankers, and unelected bureaucrats, and they have been busy. The German Constitutional Court allowed Federal President Joachim Gauck to sign them; and they then become binding international treaties, a transfer of sovereignty from parliament to unelected bureaucrats within the European Union government. And then the noose tightened further on national sovereignty in Europe, and particularly in the Eurozone. Michel Barnier, European Commissioner for Internal Markets and Services,hammered home his plan to create a supranational banking supervisor with a bank bailout fund and a deposit insurance fund, under the ECB. It would not only cover the 25-30 systemically important Eurozone banks, the TBTF banks that could take down the world, or worse, presumably, but all 6,000 Eurozone banks, down to small savings banks. Unelected European Commission President José Manuel Barroso chimed in with his state of the union speech to the European Parliament—not only calling for a centralized banking supervisory and bailout mechanism, but for a “quantum leap” in every other aspect of centralizing governance in Europe to form a “federation of nation states.” His grandiose plans weren’t just for the 17-member Eurozone but for the 27-member European Union, which includes the UK.

Tyler Durden: If there was one absolutely must read article exposing everything that is broken with the Fed's brand new policy of QE-nfinity, it was the exchange between Reuters' Pedro da Costa and the Chairman. This exchange shows, beyond a reasonable doubt, that the only goal the Fed now has is to reflate the stock market bubble to previously unseen levels, to focus on generating jobs although not for everyone but only for Wall Street, consequences be damned, because by the time the consequences arrive, and they will (just recall that subprime is contained), they will be some other Fed chairman's problem. Bernake's term mercifully runs out in January 2014.

DS: When I saw silver go vertical at 12:30 as Berneke announced QE to infinity, I got the same sinking feeling in my stomach that I got when Congress bailed out the too big to fails instead of letting them go belly up as they so richly deserved. Berneke's decision is not going to turn out well for you and me. Lindsey Williams has been saying since last year that the elites plan to destroy the dollar. Today Berneke made it a reality. I feel like I am in a dream world. Berneke is pulling the plug on the dollar. The Chinese are even selling oil in yuans. It gives me a sickening feeling. Next up is Dave from Denver with similar sentiments.

Dave from Denver: The FOMC: The Beginning Of "The Big Print" - Unlimited QE. For the first time since QE first started, today's FOMC announcement stunned me. Not because I was expecting something other than what was announced, but because of what was actually announced and the timing of the announcement. I have been expecting eventual global QE to infinity since like 2003. Seriously. I didn't think we would get the first indication that it's coming today, two and a half months ahead of a Presidential election [DS: The elites have turned against O], and I didn't think it would come first in the form of a direct attempt to reflate the housing market with subprime mortgage paper. The Fed said it will add to its purchases if the labor market doesn't improve, it will keep its policy stimulative for a "considerable time," and it left the duration of the mortgage purchase program open-ended. De facto QE to infinity. What the FOMC policy decision, and the timing of the decision, tells me is that the overall economy is in big trouble and the Fed is going to try and stimulate economic growth by reflating the housing bubble using sub-prime paper. That fact that the program is entirely open-ended, with no defined goals or parameters, tells me that we are on the insidious path to complete fiat currency devaluation via unlimited QE, because if this policy does not do anything, which it won't (other than generate bigger commission checks for a few mortgage brokers) - the Fed will be forced to implement even more drastic policy measures.

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

Quote:

Gold closed the Comex session up a whopping $38.50 to $1769.10.

Silver also responded to finish up $1.49 to $34.72.

Tuesday, Sep 11th Gold and Silver Action (basis 1:30 PM EST)

http://harveyorgan.blogspot.com/2012/09/qe-to-infinity.html

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

In silver

Quote:

The total silver Comex OI plays to the different drummer. Here the total OI fell by 1328 contracts from 121,050 down to 119,722 as the bankers are loathe to supply the necessary short paper. The active September contract saw its OI fall from 694 down to 412 for a loss of 282 contracts. We had 270 delivery notices filed yesterday so we lost an additional 12 contracts or 60,000 oz of silver standing.

The non active October silver contract saw it lose 7 contracts down to an open interest of 250 contracts.

The big December contract saw it's OI lose 722 contracts from 78,716 down to 77,994.

In gold

Quote:

The total Comex gold OI rose appreciably to the tune of 3750 as the bankers continued to supply the necessary paper. They must be shaking in their boots tonight.

The non active delivery month of September saw it's OI fall by 1 contract from 49 to 48.

We are now 2 weeks away from first day notice in the October gold contract. Generally this is a slow delivery month but judging from the action today we may get some excitement there as well. However I am sure that December will be the ultimate battleground. The total October gold Comex OI rose by 125 contracts to 25,187.

The big December contract has everyone fixated on the total OI. Today it rests at 316,831 a rise from 4223 contracts from yesterday's level of 312,608. No doubt tomorrow's reading will be much higher still.

Volume

In silver

Quote:

The estimated volume at the silver Comex today was enormous at 85,041.

The confirmed volume yesterday was also huge at 74,136.

It looks to me like the bankers are in serious trouble and we may get our long awaited banking failure due to a gold and/or silver default.

In gold

Quote:

The estimated volume today was a monstrous 244,189.

The confirmed volume yesterday was also high at 203,556.

Inventory Numbers

In silver:

Quote:

Activity was quite heavy in the silver vaults today.

We had the following customer deposit:

Into Delaware: 1901.5 oz

We had the following silver withdrawal from the customer:

i) out of Brinks: 104,080.48 oz

ii) out of Scotia; 3082.04 oz

Total customer withdrawal: 107,162.52 oz

We had one adjustment whereby the dealer repaid the customer.

20,141.64 oz and the vault was HSBC.

The total registered silver rests tonight at 39.418 million oz.

The total of all silver rests at 141.082 million oz.

In gold:

Quote:

Activity was quite light today.

We had neither a customer deposit nor a dealer deposit.

We had the following dealer withdrawal from Brinks:

i) out of Brinks, 1199.87 oz

we had the following customer withdrawal from Brinks:

i) out of Brinks: 1060.85 oz

we had no adjustments.

Thus the dealer inventory remains at 2.52 million oz or 78.38 tonnes of gold.

Delivery Notices

In silver:

Quote:

The CME notified us that we had 18 notices filed for 90,000 oz.

In gold:

Quote:

The CME notified us that we had again zero notices filed.

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 1,304 for 6,520,000 oz.

To obtain what is left to be filed upon, I take the OI standing for September (412) and subtract out today's delivery notices (18) which leaves us with 1,970,000 oz to be served upon our longs.

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

6,520,000 oz (served) + 1,970,000 oz (to be served upon) = 8,490,000 oz

In gold:

Quote:

The total number of notices remain at 701 for 70100 oz of gold. To obtain what is left to be served upon, I take the OI standing for September (48) and subtract out today's notices (0) which leaves us with 48 notices or 4,800 oz left to be filed upon our longs.

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

70,100 oz (served) + 4800 oz (to be served upon) = 74,900 oz.

The Bloomberg Baltic Dry Index (BDI) was 66e up 0.30%. WTI crude was 98.31 up 1.30 today. Brent closed at 116.41, up 0.52. The spread between Brent and WTI was 18.10 down 0.52. US Treasury 30 year closed at 2.950 up 0.024. The dollar was down a large 0.47 points at 79.26. The PPT/Dow was up a large 206.51 on news the dollar was becoming vaporware. The Dow settled above the important level of 13,000 at 13,539.86. FaceBook closed at 20.71 down 0.22 (7.73%) and silver closed at $34.68. The Nov CCI was 595.00, up 5.00. September wheat was up 12.00 at 879.00. September corn was 776.60 up 5.60. October lean hogs were up 0.125 at 73.550. October feeder cattle were up 0.200 at 147.225. September copper was 3.7270, up 0.0170. October natural gas was down 0.037 to close at 3.037. October coal is 54.73 down 0.84.

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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Bill Murphy: The Silver Run Is On

Dominique de Kevelioc de Bailleul: It’s finally here—the long-awaited run on silver supplies.  Speaking with Alternative Investors Hangout (AIH), GATA’s Bill Murphy told investors, “Just pay attention, right now,” because the buying is so heavy in an unprecedentedly tight silver market, we “don’t know what will happen here; it’s historic.”  And investors should, indeed, pay attention to Murphy’s latest assessment of the silver market. In July, he said an unidentified European billionaire told him to expect the bull market in silver to resume in late August.
“The fellow I spoke with I’ve known for years, one of the wealthier men in all of Europe,” Murphy told SGTReport in late July. “He’s got a lot of connections . . . It will be tough for the gold and silver markets [during the month of July], but starting in August they would start to ‘go nuts’, and they would ‘stay nuts’ for a long time. . . Big, big moves are coming, starting in August.”
After 15 months of a painfully long consolidation, the big move in the silver price began, just as Murphy’s source predicted. After briefly touching the low $27 level, silver has soared more than $7 within three weeks, a gain of approximately 27 percent, or an annual compound rate of 6,500 percent!
Reminiscent of Andrew Maguire’s demonstration to the CFTC of his intimate knowledge of JP Morgan’s nefarious activities in the silver space (hours after alerting the media of Maguire’s meeting with the CFTC, Maguire and his girlfriend were rammed at high-speed by a would-be assassin in an armoured automobile).  Murphy believes his source is well-placed and able to leak accurate information to investors, as it comes available. Another one of Murphy’s sources told him the silver market is so tight that the poor-man’s gold could touch $100 in another mini mania replay of the Aug. 2010 to April 2011 bull run that took silver from $17.50 to pennies shy of $50—a near-triple within eight months.
A similar move today, off the $26.50 baseline support, equates to a target price of $75, but, according to Murphy, this next move in the silver price could eclipse that exciting jump which began in the summer of 2010—both in amplitude and time frame.
“I have other sources telling me the silver market is as tight as they’ve ever known it in history,” he says. “I expect silver to go towards $80 to $100, quickly. I know that seems like a big thing, but that’s what I think."

http://beforeitsnews.com/gold-and-precious-metals/2012/09/breaking-historic-silver-panic-in-progress-says-gata-sources-2450114.html

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Harvey 15 Sep 12

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

Friday night the FDIC seized the Truman Bank in St. Louis, MO.

Commitment of Traders Report (COT)

Gold: Terribly bearish as the bankers went net short by another 17,705 contracts. I believe this is the 4 or 5th straight COT report that the bankers have continually gone additionally net short. DS: This chart http://www.screencast.com/users/RandyTabit/folders/Silver/media/1b9ff269-650a-40d3-88b0-fd481e526855 shows a hockey stick inflection on the 19th of August. Since then silver has been back in its exponential channel. The volume on Comex has been huge because there is a bank run in Europe and that money is looking for a place to go. Also, the Fed is buying up long term treasuries over 3 years which means there are no treasuries left for any one to buy. The hot money will either go in an ever increasingly shakey looking stock market, into other bonds, or into PMs. Furthermore, the Chinese now offer unlimited oil in terms of renminbi. This means countries don't need depreciating dollars to buy oil any more. Almost certainly a tsunami of trillions (about 15 trillion) of unwanted dollars will come home to roost in America causing humongous inflation. For these and other reasons I do not believe the short position in gold and silver matters much any more. In spite of the naked shorts, the dollar is now losing value exponentially, and the PMs will react in an amplified mirror image. It will be amplified because of both fear and greed and because the metals have been held way below a dollar value that reflects their true scarcity. In addition to these factors the mines are shutting down, production in the remaining mines is down, the elites have bought up the above ground supply of refined metal, and now we could likely see a commercial signal failure as a result of the grotesquely distorted price levels imposed by the cartel while they looted the system.

Silver: Our commercials went net short another 2352 contracts. Yet they were loathe to supply the paper as they knew physical demand for silver was strong while supply is very tight and prices were rising. This weekend our bankers in both gold and silver are not happy campers.

Dan Norcini via King World News: In both the gold and silver markets, “... we were seeing a violent wave of short covering.” This started taking place immediately after the Fed signaled the additional QE. Just six days ago Norcini correctly predicted that gold and silver would continue this surge. The acclaimed commodity trader had this to say about what is now taking place: “Once the QE announcement came from the Fed, gold and silver immediately soared, but so did the rest of the commodity complex. Anything that was a hard asset was moving higher, along with the stocks that produce those hard assets.” Dan Norcini continues: “The stock market hit four and a half year highs, gold is knocking on the door of $1,800, and silver is pushing up toward $35.50. There was a flood of hot money that had been on the sidelines which came roaring back into the market. While hard assets were flying high, the US dollar continued to break down. Of course anybody that was positioned on the short side of the metals was simply run over when the news hit the wire. Those shorts were panicking out of their positions and more buying poured in the throughout the day. “The shorts could not exit positions without paying up. So we were seeing a violent wave of short covering along with fresh buying from new sources. There was a relentless flow of new money coming into both the gold and silver markets. All of this is having the net impact of further destroying the middle class. Crude oil is nearing $100 a barrel, so consumers are going to get hit with higher gasoline prices. When you take a look at the CCI (Continuous Commodity Index), you can see the move higher across the entire commodity complex. Grains were on the move, along with livestock, cocoa, coffee, all of these markets were moving higher because hot money was coming in, and speculators were chasing prices higher. There is enough of this money, which has been on the sidelines, that we could continue to see upward pressure going forward. But people have to remember that wages are still relatively flat in both Europe and the US. The jobs environment in the West is dreadful. This means that the already stressed consumers in the West are going to be hit with another round of inflation at a time when they can least afford it [DS: and this will limit their ability to buy commodities futures]. So we will continue to see the middle class being wiped out on both sides of the Atlantic. Having said that, from an investment perspective, this is the type of stagflationary environment where gold and silver can continue to soar, just as they did in the 70s.”

Reuters: Gold demand in India, the world's biggest consumer, rose sharply on Friday despite a record high price as jewellers and investors scaled up purchases expecting prices to climb further during the festive season. India celebrates Ganesh festival next week, which will be followed by Dussehra in October and Diwali in November. Buying gold during festivals is considered auspicious in the country. Spot gold price in India hit a record high of 32,558 Indian rupees per 10 grams on Friday, compared to previous session's close of 32,173 rupees. "Buyers were waiting for a correction in prices for a long period. Now they think the correction is unlikely as the U.S. Federal Reserve announced stimulus," said a Mumbai based dealer with a state-run bank importing the yellow metal. ”Some buyers even think price may cross 35,000 rupees." Spot gold overseas rose to a six-month high on Friday, extending the previous session's 2-percent gain, after the Federal Reserve launched an aggressive economic stimulus program that could add to the risk of inflation and strengthen bullion's appeal. "Jewellers and jewellery exporters were keeping lower inventory. They were postponing purchases, hoping prices will drop from record level," said a Mumbai based dealer with a private bank. ”Now jewellers are buying at record high price since festival season is just around the corner. They can't wait further."

Chris Powell (GATA): Sprott Asset Management's John Embry couldn't be more bullish about the monetary metals and their miners -- nor more aggravated about the continuing manipulation of all markets by central banks.  "All the manipulation is doing," Embry tells King World News today, "is creating wonderful buying opportunities for the Chinese, the Russians, and the rest of the central banks that know full well what's going on. In the fullness of time, this group of manipulators will be seen to have eclipsed the blunders and the folly of the original London Gold Pool." [DS: The effect of creating wonderful buying opportunities for the Asians is the intent of the policy. The elites say the Chinese are to be the strong ones.]

Zero Hedge: Spanish debt and bank borrowings soar to highest in decades as home prices fall by most ever while GDP shrinks. Housing in Spain contracts by 14.4% in the second quarter alone.

Phoenix Capital Research: Wednesday the Fed announced QE 3: an open ended program through which the Fed will purchase $40 billion worth of Mortgage Backed Securities every month until it decides that the world is right again. The implications of this are severe. However, the first question we have to ask is, “why now? After all, stocks were already at 4-year highs, food and energy prices were soaring, interest rates were at record lows, etc. On top of this, the Fed failed to announce QE 3 for over a year (QE 2 ended June 2011). Why announce it now? There are only two reasons:

1) Things are in fact far worse behind the scenes than we know (the Fed HAD to do something to get more money into the system)

2) Politics

DS: There is a third reason, the obvious one, that nobody mentions, because nobody wants to be the crazy conspiracy theorist. The third reason is they have a schedule to keep. They had to give time to their compadres to clean out the riches of the world and set up WWIII before they bring the world to ruin by crashing the global economy.

Harvey: By the end of 2014, Bank of America sees the Fed balance sheet surpassing 5 trillion USA dollars and thus gold at $3350 per oz and crude at 190 per barrel. Or, in terms of US GDP, the Fed's balance sheet will have Leveraged Bought Out (LBOed) just shy of 30% of all US goods and services. The Fed will own more than 33% of the entire mortgage market by 2014. The Federal Reserve will hold two thirds of the entire bond market with a maturity over 5 years. DS: What a deal! End up owning the real resources of America by printing dollars out of thin air that cost them nothing and leaving the taxpayers on the hook as debt slaves in perpetuity! Not a bad gig, if you can get it! The only thing is, this QE is not going to 2015. With the tidal wave of repatriated dollars that will be idled by the renminbi oil trade, the dollar will essentially be useless by the end of 2012. In addition, we have the collapse of Europe that could go down any day, especially the first week of October, and we have WWIII that could follow shortly thereafter. These things will not wait around for Berenke's measly $5 trillion to destroy the dollar. They will be happening shortly in a bank and big city near you.

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

Quote:

Gold closed up 70 cents to $1769.80.

Silver was under pressure all day falling by 12 cents to $34.60.

Thursday, Sep 6th Gold and Silver Action (basis 1:30 PM EST)

http://harveyorgan.blogspot.com/2012/09/more-bank-runs-in-spainspanish-housing.html

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

In silver

Quote:

The total Comex gold open interest continues to ramp higher with our crooked bankers supplying the necessary

short paper being cheered on by the regulators who forgot about their duty to the public. The total gold open

interest rose by another 5594 contracts rising from 464,281 to 469,875. The rise in OI over these past few

weeks have been relentless. The front September (non active) gold month saw it's OI rise by 9 contracts from

48 to 57. We had zero notices filed on Thursday so we actually gained another 9 contracts or 900 additional

ounces are standing. The next active delivery month is October and here the OI fell by 1678 contracts as the

paper players rolled into December. The weekend level of Oct OI rests at 23,509 which is very small. All eyes

are really focused on the big December contract and this month has the makings of a huge Battle Royale. This

may be the bankers Waterloo. The December OI rose another 4,957 contracts from 316,831 to rest this weekend

at 321,798.

In gold

Quote:

The total Comex gold open interest continues to ramp higher with our crooked bankers supplying the necessary

short paper being cheered on by the regulators who forgot about their duty to the public. The total gold open

interest rose by another 5594 contracts rising from 464,281 to 469,875. The rise in OI over these past few

weeks have been relentless. The front September (non active) gold month saw it's OI rise by 9 contracts from

48 to 57. We had zero notices filed on Thursday so we actually gained another 9 contracts or 900 additional

ounces are standing. The next active delivery month is October and here the OI fell by 1678 contracts as the

paper players rolled into December. The weekend level of Oct OI rests at 23,509 which is very small. All eyes

are really focused on the big December contract and this month has the makings of a huge Battle Royale. This

may be the bankers Waterloo. The December OI rose another 4,957 contracts from 316,831 to rest this weekend

at 321,798.

Volume

In silver

Quote:

The estimated volume at the gold Comex on Friday, was extremely good coming in at 197,194.

Get a load of the confirmed volume on Thursday, the day QE into infinity was announced: 283,644.

In gold

Quote:

The estimated volume at the gold Comex on Friday, was extremely good coming in at 197,194.

Get a load of the confirmed volume on Thursday, the day QE into infinity was announced: 283,644.

Inventory Numbers

In silver:

Quote:

We had the following customer deposit:

i) 617,909.70 oz into JPMorgan.

We had the following customer withdrawal:

i) 3,826.70 oz out of Delaware

ii) 30,666.70 oz out of Scotia

Total withdrawal by customer: 34,493.4 oz

We had one adjustment of 45,832.35oz at Scotia where the customer leased silver to the dealer.

The dealer or registered silver rests at 39.464 million oz

The total of all silver rests at 141.666 million oz.

In gold:

Quote:

We had neither a customer deposit nor a dealer deposit for the second straight day.

We had the following customer withdrawal:

i) Out of HSBC: 96,756.57 oz

ii) out of Manfra; 1028.80 oz

Total withdrawal by customer: 97,785.37 oz

We had no adjustments.

Thus the dealer inventory rests this weekend at 2.52 million oz or 78.38 tonnes of gold.

Delivery Notices

In silver:

Quote:

The Chicago Mercantile Exchange (CME) notified us that we another chunky 157 notices filed on Friday for 785,000 of silver.

In gold:

Quote:

The CME reported that we had only 10 notices filed on Friday for 1,000 oz.

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 silver notices filed so far this month total 990 for 4,950,000 oz. To obtain what is left to be filed upon, I take the OI standing for September (1,103) and subtract out Friday's delivery notices (157) which leaves us with 946 or 4,730,000 oz 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:

4,950,000 oz (served) + 4,730,000 oz (to be served upon) = 9,680,000 oz

we lost another 1.21 million oz of silver to cash settlements.

In gold:

Quote:

The total number of notices filed so far this month is represented by 711 notices or 71100 oz of gold. To obtain what is left to be filed upon, I take the OI standing for September (57) and subtract out Friday's notices (10) which leaves us with 47 notices or 4700 oz of gold 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:

71,100 oz (served) + 4700 oz (to be served upon) = 75,800 oz or 2.357 tonnes.

The Bloomberg Baltic Dry Index (BDI) was 622 down 0.15%. WTI crude was 99.00 up 0.69 today. Brent closed at 117.59, up 1.18. The spread between Brent and WTI was 18.59 up 0.49. US Treasury 30 year closed at 3.088 up a large 0.138. The dollar was down a large 0.42 points at 78.85. The PPT/Dow was up 53.51. The Dow settled above the important level of 13,000 at 13,593.37. FaceBook closed at 22.00 up 1.29 (6.21%) and silver closed at $34.68. The Nov CCI was 602.00, up 7.00. September wheat was up a large 18.40 at 897.40. September corn was 777.40 up 0.60. October lean hogs were up 0.475 at 74.025. October feeder cattle were down 0.400 at 146.825. September copper was 3.8515, up a large 0.1450. October natural gas was down 0.094 to close at 2.943. October coal is 53.95 down 0.48.

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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Harvey 17 Sep 12

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

Marc Faber: With the global QE upon us we should all own gold. However he is warning our American friends to not store this gold on USA soil as the Fed will again take it away from you like they did in 1933. DS: And if you store it in some foreign vault, it will be inaccessible and probably looted when the global elitists consolidate power. Faber said that Bernanke is a money printer and this could lead to massive inflation and the Dow Jones at 20,000, 50,000 or 10 million. Faber cheerily predicted that the “the Federal Reserve’s monetary policy will destroy the world” and “eventually we will have a systemic crisis and everything will collapse.”

Two South African mines reopened on Monday after labor strife forced them to suspend operations last week, but striking miners vowed to keep operations run by world No. 1 platinum producer Anglo American Platinum (Amplats) shut. Wage talks were set to resume in a bid to end a violent 5-week strike that has killed 45 people around the Marikana mine of platinum producer Lonmin, bringing its production to a halt and pushing up the price of the precious white metal. The unrest has its roots in a bloody turf war for members between an upstart union and the dominant National Union of Mineworkers (NUM)

Jeff Nielson (SilverGoldBull): In general, any time we contemplate a situation where lenders are paying borrowers to borrow, the word “dump” immediately comes to mind. This is because we begin the scenario with a lender choosing to enter into a transaction with the deliberate outcome of losing money. Because the world of commerce is entirely devoted to earning profits rather than creating losses, this automatically also implies market-manipulation – and thus fraud. It is with this general context that we can now look at the particular subject of the gold and silver markets, where lease-rates are now usually negative (and are negative again currently). With negative lease rates creating a prima facie presumption of manipulation and fraud, the issue then becomes whether the particular fundamentals of the gold and silver markets either support or refute that presumption of fraud.

Between 1990 and 2005; silver inventories plummeted by 90% -- from over 2 billion ounces down to roughly 200,000 ounces. Since 2005, we have lost access to any reliable inventory data on the silver market, as inventory numbers have been falsified through perverse manipulation of supply/demand data. We can only assume that this deception is expressly intended to hide the fact that silver inventories are continuing to collapse. This suspicion is reinforced by a stream of anecdotal reports that with all large-scale purchases of physical silver:

a) Buyers are being forced to wait extended periods to take delivery.

b) When they receive delivery, all of their stock is comprised of newly-refined bars.

Both these factors suggest a market stretched to the breaking point. It utterly defies rationality that in such a market that silver-holders are paying people to borrow their silver. The conclusion is that the markets are fraudulent and manipulated.

James Turk: The US federal government spent $369 billion in August, but only received $179 billion in revenue. The resulting $190 billion deficit was a record for any August and the third highest monthly deficit in the current fiscal year, which ends on September 30th. Looking at this deficit another way, the federal government borrowed 51.6% of the dollars it spent in August. Consequently, the growth of the national debt continues to accelerate. The money problem facing the US is structural and policy makers are doing very little to help. So we need to prepare for the consequences. The best way to do that of course is to own physical gold and silver.

Harvey based on Zero Hedge report: Protests were in full swing on the Spanish main streets on Saturday as workers were rebelling against the wage cuts ordered for federal workers by the EU folk. In two weeks, there will be an organized national labour strike in Greece. It seems the Spanish could not wait and they took to the streets early to let out their frustrations. In Spain it seems that we have a circle of chaos.

i) the citizens are protesting wage cuts and wanting help from the government

ii) the Debt to GDP of Spain is well north of 140% if you include its regional debt and other guarantees by the sovereign, so Spain itself is totally insolvent and unable to help. The market anticipates that Spain will officially ask for a bailout which of course will send its bonds lower in price and higher in yield in a similar fashion that we witnessed with respect to Greek bonds.

iii) With the jawboning, Rajoy has made it clear that as long as rates are low, he will not officially ask for a bailout (so he can keep his job)

iv) With the USA going all-in on QE to infinity, that dashed all hopes for Spain which saw its bond yields rise on Friday. The Spanish IBEX rose big time but the bonds fell and did not participate in the rally.

v) By next month, bonds will mature and thus Spain will run out of money and then be forced to officially ask for a bailout.

vi) the riots will then be in full bloom, completing the circle with rioters demanding more from an even more broke Spain.

Charles Penty: Households and companies drained 26 billion euros ($34 billion) from Spanish bank accounts in July, driving the ratio of loans to deposits among lenders to 187 percent. Shrinking deposits undermine the ability of banks to support economic growth by lending to companies and consumers. Private sector deposits shrank by 74 billion euros, or 4.7 percent, in July, the biggest drop on record. There is “a clear underlying trend of accelerating deposit decline,” Nomura’s Quinn wrote in a Sept. 4 report. Depositors are taking their money to Germany, Switzerland and gold.

Zero Hedge: Back in 2010, everyone's favorite truthsayer in Europe - MEP Nigel Farage - opined on who exactly was Herman Van Rompuy - the new EU President. Claiming HvR's charisma approached that of a damp rag, we noted at the time that this was indeed slanderous to all the hard-working damp-rags out there. Well, given the EU's need for cash - by any route possible - it seems they have chosen to start building a mountain of fines. As AP reports, the EU parliament fined Nigel EUR2980 (about $4000) for his self-expression.

Bruce Krasting: In theory, the Egyptians hate the Iranians. This is Sunni versus Shia hatred that goes back a thousand years. The fact that Morsi chose to take the trip to Iran is more evidence that he is no friend of America. My question is, What did Morsi and the Iranian generals discuss? They talked about what all generals always talk about; mutual enemies. The mutual enemy of Egypt and Iran is Israel. Has Morsi done anything else that is hostile to Israel? There was an event that took place on August 4. A splinter group of Al Qaeda attacked a remote Egyptian military outpost on the Israeli/Egypt border in the Sinai. Sixteen Egyptian soldiers were killed in the attack. The story put out was that the Al Qaeda terrorists were trying to capture an Israeli military officer that was nearby. The killing of the sixteen Egyptian soldiers was the excuse that Morsi needed to load up troops in the Sinai. This action is in violation of existing treaties (Camp David Accord). As of today, Egypt has a large military presence in the Sinai. This is exactly what Iran would like to see. Egypt and Iran are strange bedfellows. They are in bed together because of the old Middle East saying, The enemy of my enemy is my friend.

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

Quote:

the price of gold finished at $1767.70 down $1.90 on the day. Silver also faltered a bit dropping 30 cents to $34.30. However the bankers decided to raid in the access market dropping gold down to as low as $1754.00 and silver below $34.00

At 4:30 pm, the access market has the following prices for gold and silver:

Gold: 1760.00

Silver: $34.13

Friday, Sep 14th Gold and Silver Action (basis 1:30 PM EST)

http://harveyorgan.blogspot.com/2012/09/again-run-on-spanish-banksriots-in-arab.html

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

In silver

Quote:

The total silver Comex OI rose again today to 123,402 from 124,366 and this is getting to be quite bothersome to JPMorgan and his cohorts. The OI for the entire silver complex continues to inch up slowly but surely. The active September contract month saw its OI rise by 178 contracts from 339 to 517. We had 18 delivery notices filed on Friday so we gained an additional 196 contracts or 980,000 oz of silver. The next non active October contract fell by 65 contracts down to 208.

The big December contract remained relatively unchanged at 80,094.

In gold

Quote:

The total gold Comex OI rose by a monstrous 6,178 contracts which of course set the stage for today's raid. The boys had to get the OI down for fear of too many contracts taking delivery.

The non active month of September saw it's OI fall from 57 to 42 for a loss of 15 contracts. We had 10 delivery notices on Friday so we lost a tiny 5 contracts or 500 oz of gold standing.

We are less than two weeks away from first day notice in the October contract.

In October we saw the OI fall marginally by 414 contracts down to 23,095.

All eyes will however focus on the big December contract and here the OI rose by 4807 contracts from 321,788 up to 326,595.

Volume

In silver

Quote:

The estimated volume at the silver Comex came in at 41,388.

On Friday we had confirmed volume of 56,493 which is very good action.

In gold

Quote:

The estimated volume today at the gold Comex was weak at 104,694.

The confirmed volume on Friday was a rather robust 208,874 as the markets reacted to Bernanke's QE to infinity.

Inventory Numbers

In silver:

Quote:

Activity was brisk in the silver vaults on Friday.

We had no dealer deposit and no customer silver deposit.

We had the following dealer withdrawal:

i) out of Brinks: 170,543.76 oz

We had the following customer withdrawal:

i) out of Brinks: 1052.2 oz

ii) out of Delaware: 988.000 oz

iii) out of Scotia; 683,483.68 oz

Total withdrawal by customer: 685,523.88 oz

We had one adjustment of 25,610.9 oz whereby the dealer at Brinks repaid the customer account.

Thus tonight the dealer inventory rests at 39.267 million oz

The total of all silver rest at 140.810 million oz.

In gold:

Quote:

Activity was quite good today.

We had the following customer deposit: 56,262.5 oz into Scotia

We had the following customer withdrawal:

i) 192.60 oz out of Brinks.

We had the following adjustment whereby 202.59 oz was adjusted out of the customer account and into the dealer account at Scotia as a probable lease.

The registered or dealer inventory rests tonight at 2.52 million oz or 78.38 tonnes of gold.

Delivery Notices

In silver:

Quote:

The CME reported that we had only 13 notices filed today for 65,000 oz.

In gold:

Quote:

The CME reported that we had only 5 delivery notices for 500 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 1317 for 6,585,000 oz. To obtain what is left to be filed upon, I take the OI standing for September (517) and subtract out today's notices (13) which leaves us with 504 notices or 2,520,000 oz 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;

6,585,000 oz (served) + 2,520,000 oz (to be served upon) = 9,105,000 oz

In gold:

Quote:

The total number of notices filed so far this month total 716 for 71600 oz. To obtain what is left to be served upon, I take the OI standing for September (42) and subtract out today's delivery notices ( 5) which leaves us with 37 notices or 3700 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:

71600 oz (served) + 3700 oz (to be served upon) = 75,300 oz or 2.342 tonnes of gold.

The Bloomberg Baltic Dry Index (BDI) was 663 up 0.15%. WTI crude was 98.31 up 0.69 today. Brent closed at 114.23, down 3.36. The spread between Brent and WTI was 17.61 down 0.98. US Treasury 30 year closed at 3.032 down 0.056. The dollar was up 0.16 points at 79.01. The PPT/Dow was down 40.27. The Dow settled above the important level of 13,000 at 13,553.10. FaceBook closed at 21.52 down 0.48 (2.18%) and silver closed at $34.25. The Nov CCI was 589.00, down 13.00. December wheat was down a huge 46.20 at 878.00. December corn was 748.00 down 34.00. October lean hogs were down 0.650 at 73.375. October feeder cattle were up 0.350 at 147.350. December copper was 3.7920, down 0.0405. October natural gas was down 0.078 to close at 2.865. October coal is 52.58 down 1.37.

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

Goooood day!

Dr. Fix
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Joined: 06/08/2012
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Thanks for bringing Harvey here.

I read him every day, and have for 3 years now.

Thank you  Day Star.

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