The new week begins with some pretty volatile trading.
Last night, I suggested that The London Monkeys would likely raid gold and silver at their usual appointed hour today. Sadly, they didn't disappoint and price fell back some $20 in the American wee hours of Tuesday. Then, just when all looked lousy after the Comex open, prices shot higher and the June13 actually had the audacity to briefly trade above $1400, reaching a high of $1400.80. At that point, The Monkeys struck back and painted a lousy-looking FUTF on the charts. Nuts.
Oh, well. At least we now know where we stand. Ole Louis Braille himself would be able to see the clear capping effort now being made at $1400. The stage has now been set for this week's battle. We'll have to wait to see who wins but we should have some indications by Friday, at the latest.
Two, main news items today that you might have missed. First, Jim Willie mentioned last week that King Abdullah of Saudi was "basically dead". Looks like he was right. (http://www.presstv.ir/detail/2013/05/26/305584/saudi-arabias-king-clinically-dead/) Now lets see what happens next to:
- The price of crude
- The political stability of Saudi Arabia
- Overall tension level of the MENA
- the future of the petro-dollar
And do you recall this story from two weeks ago? This: http://libertyblitzkrieg.com/2013/05/14/why-has-1-billion-in-gold-been-shipped-from-new-york-to-south-africa/ was sourced from this: http://qz.com/83396/1-billion-of-gold-has-been-shipped-from-new-york-to-south-africa-this-year/. Earlier today, Santa himself issued a public comment on this. Take it fwiw:
I wonder how much longer these criminals will play this gold paper game.
That question will be answered by the condition of the Comex warehouse as they will change delivery to cash or GLD, in my opinion within 90 days, if the decline of the Comex warehouse gold stock continues. It has been confirmed that the large shipment of gold from the USA to RSA was not scrap as first reported, but Comex 100 ounce gold bars to be melted and cast as Chinese small denominations then shipped to China.
Shipped to China and recast into smaller denominations? Gee, where have we heard that before?? http://www.tfmetalsreport.com/blog/3924/gonefor-good
Speaking of being "gone", the GLD dropped another 22 1/4 metric tonnes of gold last week, dropping its stated "inventory" down to 1016.16 mts. Again, for those doing the math at home...22.25 mts is 715,354 troy ounces. That's approximately 1,788 London good delivery bars or, roughly, 9.5 of these:
Also of interest for those keeping score at home, The Comex reported on Friday that total registered gold is now down to just 1,641,000 ounces or about 51 metric tonnes. That is only enough registered gold to physically settle 16,410 contracts. Recall that Feb and April gold both saw about 13,000 contracts stand for delivery so it won't take much of an increase in June to deplete the entire stated inventory.
We just received the OI number for Friday so, with four days left to go before First Notice Day, the total OI for the June 13 stands at 125,684 of a total OI of 435,106. If you're wondering, with four days to go before February FND, the total OI for the Feb13 was 148,517 out of a total OI of 458,197 and, as we approached FND for the April, Apr13 OI with four days to go was 121,902 out of a total OI at 438,833.
Here's where this will get interesting in June. For Feb, over 13,000 contracts stood for delivery but very few were added during the delivery period. However, in April, just 6,601 stood on FND but an amount nearly equal to that number showed up during the month of April, put up their 100% margin and "jumped the queue". Based on Friday's numbers, it looks like maybe 10,000 or so will stand on Friday. What happens next will tell the tale. If, like April, 6,000+ show up during June to queue-jump, the registered inventory at The Comex will be drained. Rest assured, I'll be watching this very closely.
Finally, there were some great conversations here over the weekend but a couple of comments merit your attention as they may have slipped past you. First, this great summary of the current situation from "Icarus": http://www.tfmetalsreport.com/comment/316025#comment-316025
And "Lamenting Laverne" posted two fascinating items into the Jim Willie thread. Please read them both and then ponder whether or not Laverne is onto something.
Ok, I'm going to stop here for now. Sorry for the delay in getting today's post up but I have been sending out emails all day trying to connect raffle donors with raffle winners. I should be back to a normal "schedule" tomorrow.