Harvey Organ Should Be An Interesting Read Today

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DayStar
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RE: Hat Tips

Thanks for the kind words, guys.  I left a note on the front page this morning about the missing hat tips.  I haven't seen anything.  I will follow up if I don't hear soon.

Thanks,

DayStar

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~~Harvey 22 Aug 2013

This is DayStar (DS) with the Thursday Harvey Report

•••••••••••

News and Commentary

Andy Hoffman: There's a whole category of potential events that - while not necessarily "anticipated" - have relatively high probabilities of occurring in the coming months and years; and, frankly, in some cases, sooner. I deem such outcomes "Grey Swans" - as for example, it would be difficult to consider it "unexpected" if we awaken to a Greek or Spanish bank bail-in; a Suez Canal oil blockage related to the Egyptian Revolution; a U.S. and/or Israeli-led invasion of Iran; a derivatives blow-up at a major Western bank; bankruptcy of a major municipality (like Detroit); escalating civil unrest in India, Brazil, or Turkey; or implosion of the U.S. Treasury and/or housing markets. The whole point of pondering Black Swans, "Grey Swans," or any type of potential event is considering the odds of them occurring; and subsequently, acting to insure oneself if they do. In today's turbulent world, in which I anticipate a dramatic increase in financially destructive - and inflationary - events to occur, I fail to see how ANYONE can neglect the only assets that have served to PROTECT one's wealth throughout history; i.e, PHYSICAL gold and silver.

Andy Hoffman: As for the ongoing "Indian Implosion," the situation gets more ominous each day. As the government screams like Kevin Bacon in Animal House that "all's well," they are issuing new Capital Controls each day; and today, the rumor is that to obtain dollars to support the collapsing Rupee (down another 1.2% this morning, to yet another ALL-TIME LOW), they'll lease the very 200 tonnes of gold they just bought in 2009 from the IMF! Not only is this the dumbest idea in the history of dumb Central banking ideas - as it could well set off a citizen PANIC - but said "gold" likely never existed anywhere but in an electronic ledger. Jim Sinclair says there is an upcoming tsunami of panicked Indian gold demand.

Eric Pomboy (King World News): The stage is set for a surge in inflation going forward. Zero Maturity Money Supply y/y looks to lurch higher bringing CPI (and precious metals) in tow. As well, the 30-Year rally in bonds looks as if it has come to an end, and the value of US gold reserves will soon begin to catch up to our ever-expanding Monetary Base.

Michael Pento (via King World News): Eric King: “How destabilizing could rising interest rates be to the entire financial system?” Pento: “I think it could be exponentially worse than what we experienced in the collapse of the dot-com bubble and the collapse of the real estate market ... The bond market has already started to taper for the Fed ... Interest rates are set to soar. Interest rates have already started to climb. That’s just the beginning -- I think they go to 4% by the end of the first quarter of 2014, and that is where your watershed moment occurs where the Fed says, ‘Enough! We are now permanently in the business of manipulating the long-end of the Treasury yield market.’ That’s when you had better be exposed to precious metals and mining shares because these investments should then soar in price.”

Grant Williams (via King World News): Right now there is a lot of fear out here, particularly in India. There are some terrible capital controls that have been put in place in India, in an attempt to restrict this flow of gold. There is now discussion that the Indian Reserve Bank may be looking to lease out their 200 tons of gold because they think they can make $23 billion in interest payments on that. But that is a very, very dangerous thing to do given the tightness in the physical supply right now. If India does lease that gold out and it’s not just a book entry, which I would assume they would definitely want it to be, but if they physically lease that gold out and it leaves their vault, I don’t think India will ever get that gold back. It really feels to me like the tightness in the physical market is so acute that if you hold physical gold, you do not want to lend it to anybody else right now, for any price at all. An entity would have to have a really good reason to do that. Generally when central banks do something this extreme it’s because they want to move a currency down, or they want to move the price down, but it’s a very, very dangerous game to play right now.”

Keith Barron (via King World News): The Indian rupee has plunged very recently and it is now at an all-time low vs the U.S. dollar. This is very interesting because in my KWN interview last week I was talking about the moves that the Indian government had been making to kill the demand in the Indian gold market. These attempts by the Indian government to suppress gold purchases have been a total failure. Gold is now the most black-market trafficked item into India. Indians are moving to protect their wealth as the Indian currency continues its plunge, and they are doing this by purchasing physical gold and silver. readers need to keep in mind that the plunging rupee is not only highly inflationary in India, it also means gold and silver are soaring in terms of the Indian rupee. I think this talk of selling Indian gold is just more jawboning in an attempt to temporarily halt the advance in gold, and possibly to try to have the gold price back and fill a bit here. You have to remember the Western central planners never want to see the price of gold advance because it is an important alternative to holding U.S. dollars. But I think the West is going to great lengths to try to conceal the fact that everyone in Asia is dumping dollars right now. We can see this in the recently released sales of U.S. Treasuries by Asian countries. So they are dumping dollars as quickly as possible without trying to crash the price of the U.S. currency, and at the same time they are desperately buying as much physical gold as they can get their hands on. The bottom line here is this is rather tragic to witness the West near the edge of a cliff, as central planners recklessly endanger the entire global financial system and ensure that the West will eventually collapse.

Jeff Nielson: With many (most?) of those paper-holders simply swapping their paper for real metal, and with lower prices igniting gold demand in China and India; the Great Paper Liquidation quickly morphed into the Great Physical Accumulation. With the phony, paper market being (literally) a hundred times larger than the real gold market; naturally massive, net-selling of this paper would (and did) take down prices. Then there is the silver market. There was no Great Paper Liquidation with respect to paper-called-silver. In reaction to the (premeditated) Cyprus Steal, the “smart money” dumped their paper-called-gold for real metal. But apparently there is no smart money in the paper-silver market. Put another way, unlike the gold market there has been no reason at all for the decline in silver prices. The massive drop in the price of silver (which has exceeded the decline in the gold market) has simply been the result of more, naked manipulation. The price of silver fell not because it “should have” fallen (like gold); but simply because the banking cabal could manipulate prices lower. We have seen (in unequivocal terms) that lower gold prices do spark an immediate demand-response. In the recent frenzy to accumulate physical bullion; we saw markets all over the world explode with higher demand. Indeed, gold demand in India has soared to such extremes that the Indian government (and the bankers) have taken every step imaginable to attempt to suppress Indian gold imports. But those same actors have seen no need at all to intervene in India’s silver market. The same Indian bullion-buyers rabidly buying gold because it’s so cheap are (apparently) shunning silver because it is too cheap. What could alleviate such a conundrum? The banksters’ own market-rigging algorithms. At some point that the scorched-Earth attacks on bullion markets will cause demand for gold to ignite to such an extreme that the price of gold will simply catapult itself through any further attempts at price-suppression. When the gold market explodes; it will drag the silver market higher with it, because of those same trading algorithms. And once a rising price of silver causes sentiment to swing from positive to negative; that’s when the fun begins. The key (and obvious example) here is India.

Ron Rosen (via King World News): This market decline has just begun in the Dow, and this will be second only to the major collapse in the Dow between 1929 and 1932. That was an 89% collapse that we saw in the early 1930s. This will be at least a 66% decline, and as I said, second only to the collapse that led to the Great Depression. During this decline I expect gold and silver to skyrocket. With respect to silver, it hasn’t even taken out its high of $50 from 1980. Silver needs to rise nearly $30 from current levels just to take out that 1980 high. But silver will outperform gold in every conceivable way in the future. I expect for silver to hit roughly $150 in the next 18 months, and that’s not even half way to where I expect the ultimate price of silver will rise.

SilverDoctors.com: Ever since the big take-down in the price of the precious metals in April of this year, an interesting trend has taken place in the Gold & Silver Eagle market. While demand for both coins remained strong in the first four months of the year, investors are now overwhelmingly purchasing more Silver Eagles — banking on much higher gains in silver than gold. The gold to silver sales ratio was 19.5/1 in April, fell to 80/1 in July and so far in August it is a staggering 489/1! Over the last month, investors are overwhelming purchasing nearly 500 times as many Silver Eagles as Gold Eagles from the US Mint! Silver Eagle sales will hit a new all-time record this year by beating the past record set back in 2011 of nearly 40 million oz. if we look at the current trend in Gold & Silver Eagle sales, we can see that investors are purchasing silver as a premium investment over gold. Hedge Funds and investors are banking on much better future returns in silver than gold.

German Economic News [Google translation from German]: Several German counties and municipalities for years have already been close to bankruptcy. Now we see the threat of outright collapse in many regions. About ten million people live in cities that are almost incapable of action. The taxpayer will be asked to pay. The financial situation is so tense that the municipalities are almost paralyzed with shock. Around 50 to 60 of the municipalities with around ten million inhabitants are so deeply in debt that they "are scarcely able to act," says René Geissler, municipal expert at the Bertelsmann Foundation. The total debt has increased from 2007 to 2011 from 111 to 130 billion euros.

•••••••••••

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

Quote:

In the access market today at 5:15 pm tonight here are the final prices:

Gold: $1375.50

Silver: $23.19

Wednesday, August 21st Gold and Silver Action (basis 1:30 PM EST)

http://harveyorgan.blogspot.com/2013/08/august20Comex-dealer-and-total-gold.html

Select Commodity Prices:

The Bloomberg Baltic Dry Index (BDI) was 1158.0 up 0.17%. WTI August crude was 105.20 up 1.59. Brent closed at 109.90 up 0.30. The spread between Brent and WTI was 4.70, down 1.29. The 30 year US Treasury bond was up 0.0030 at 3.8850. The 10 year T-Note was up strongly by 0.0460 at 2.9010. This is the one that is the dollar killer. I am now worried about the financial meeting at the White House. GOFO is negative for the 34th day in a row. It still looks like they are running out of bullion. The dollar was up 0.17 at 81.52. The PPT/Dow was 14,963.74 up 66.19, BELOW the very key round number of 15,000. Facebook was 38.55 up 0.23 (0.60%). Silver closed up (0.30), at 23.19. It looks like they are keeping it range bound. September wheat was down 8.20 at 630.40. December corn was down 18.60 at 464.40. October lean hogs were 84.40 down 1.425. Hogs are also in backwardation as far out as June 2014. Seems the market is very concerned about the pork supply. September feeder cattle were down 0.775 at 158.100. September copper was 3.3300 up 0.0235. September natural gas was up 0.085 at 3.545. September coal is up 0.30 at 53.60.

Thank you for reading the Harvey Report. There is much more on Harvey's blog.

http://harveyorgan.blogspot.com

Goooood day!

•••••••••••••••••

TomMack
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DS

it seemed odd when i read your post yesteday that there wasn't any HTs since it had been posted.  i usually see a couple by the time i get to it.  i didn't think much about it until i saw your post on the (a) "main" thread (cal lawyer).  i read and HT'd 'harvey' around1030 central time 8/21. 

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DayStar
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RE: Hat Tips

Tom, if you were able to see the hat tip icon, that means it was a problem only for some of us.  I could see the HTs on the front page but not in any of the forums.  It was not that you couldn't click it; the icon wasn't even there to click.  They got it fixed later that day.  

With the new format, it is hard to tell what is the front page, and it is hard for me to know where to post the Harvey notice.  I am posting the Harvey notice outside the paywall, and often the latest posts outside the paywall are not the latest posts overall.  It appears from what I can see from the number of posts behind the paywall that activity there is quite brisk and the majority of active posters have subscribed to the pay side of TFMR.  I post to the free side so everybody can see my Harvey notice.  I don't know how many regulars will even see it, but my target audience is not the regular sophisticated investor who is more interested in detailed financial information, but it is the newer readers who might be well served to read a synopsis of the news regarding the PMs, learn about the global conspiracy to crash the global financial system and take control of the world, and to find out what they need to do to prepare for it.

DayStar

TomMack
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DS

i figured i would give you a little feed back on what i saw, no hat tips until mine which i noted to myself as not usual for your post.

i highly enjoy your synopsis and seek it out every day.  i will then follow up on things that i find interesting.

i consider myself an average investor.

i really cannot afford the pay service.  i have trimmed and trimmed the family budget but i am living paycheck to paycheck and have no need for daily charts with 1 minute and 5 minute ticks complete with all sorts of analysis which may be 60% right for that day.

what i do miss is the 1 MAIN thread  with all the great posts that is what i found to be the wealth of the post.  it is a little fragmented in and out of the pay wall as well as to the guest hosts/posts.  i think turd will figure it out. 

anyway have a nice weekend and i look forward to your posts they are highly appreciated.

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I'm back in my recliner.

After about a month of not relaxing with my laptop in my lap while laying on the La-Z-Boy that used to be central to my  former man cave, I have now established a corner of my living room that is just for me.smiley  

at least I didn't miss the end of the world as we know it, while doing the renovations on my house.

Although I have missed a lot of your posts, at least I will be looking for them going forward into the future.

I did notice that all the hat Tip icons were missing yesterday, on every forum.

I'll be up to speed shortly, it will be an exciting fall.

I'm glad you're still here.

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the teacher will appear."

DayStar
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~~Harvey 25 Aug 2013

This is DayStar (DS) with the Saturday Harvey Report

•••••••••••

Commitment of Traders Report

Gold: The commercials went net short again this week to the tune of 6791 contracts and this must be construed as bearish..yet the long specs seem to be winning.

Silver: Those commercials that have been short in silver added another 2241 contracts to their short side.

DS: Harvey didn't have a comment, but it would be considered bearish by comparing it to what he said about gold.

News and Commentary

Harvey: Friday, the Comex registered or dealer inventory of gold fell badly to well below the 1 million oz mark, at 767,232 oz or 23.86 tonnes. With no gold entering the dealer side it seems almost impossible for the bankers to settle upon longs once the December contract hits. The total of all gold at the Comex (dealer and customer) tonight rests just above the 7 million oz barrier resting at 7.013 million oz or 218.14 tonnes. JPMorgan's customer inventory rises tonight to 177,595.82 oz or 5.52 tonnes. It's dealer inventory remains constant at 286,485.185 oz (8.91 tonnes). The total of the 3 major gold bullion dealers( Scotia , HSBC and JPMorgan) in its Comex gold dealer account saw a huge reduction in gold inventory tonight and its resting inventory for the weekend is 19.14 tonnes of gold. Brinks continues to record a low of only 4.03 tonnes in its dealer account. On Friday, we recorded our 35th consecutive trading day for negative GOFO rates. We gained 6.61 tonnes of gold at the GLD vaults over the past 2 days. We had no gain nor loss of silver at the SLV. Today the total Comex gold rises to 7.013 million oz (218.14 tonnes).

GoldCore: Premiums on the Shanghai gold exchange rose from $21 yesterday to $22.40 (0800 GMT) over London spot showing robust physical demand in China. Demand from the over 2 billion people, rich and poor, in China and India alone this year alone is set to be 1,000 metric tonnes which is worth over $87 billion or roughly what the Federal Reserve is printing every single month. Gold is off almost 20% year to date, but has risen 16% from a 34-month low of $1,180.71/oz on June 28 as lower prices led to physical bullion demand throughout the world.

GoldCore on US Mint gold eagle sales: Sales of U.S. Mint American Eagle gold coins so far in August are down sharply from August last year and from recent months sales as gold coin buyers, particularly in the U.S. ease off their recent gold coin buying spree which has seen record demand in recent months and recent years. The U.S. mint sold 3,500 ounces of gold American Eagles so far this month, down from the near record levels seen in recent months. Demand may have fallen as the relatively small eagle coin buying community, primarily in the U.S., has secured their allocation to bullion in recent months and indeed years and many are now fully allocated. The U.S. mint was cleared out of its gold coin inventory in April after the astonishing 15% two day price plunge saw store of value buyers buy gold coins and bars in volume. This may have brought forward some of the demand that we were likely to see in the summer months this year. There has also been some large liquidations in the secondary market with some high net worth coin buyers choosing to reduce allocations and take profits in recent months.

True Economics: Sales of American Eagle silver coins are on track for a record. Sales are at 31.9 million ounces eight months into this year, compared with 33.7 million in all of 2012. Gold bar and coin purchases reached a record last quarter and jewelry usage rose to the most since 2008, World Gold Council figures showed last week. American Eagle gold coin sales were valued at $1.26 billion last year.

Dr Constantin Gurdgiev: Gold is a hedge against US dollar and British pound risk due to “its monetary asset role."

Simon Black (Sovereign Man): In a world where tax collectors seize people of wealth and accuse them of tax evasion till they prove themselves innocent, is there any good news? Yes, there is. The good news is that this fraudulent system of unchecked, unbacked paper currency is finally coming to an end. Of course, our faux-scientists who have been awarded society’s most esteemed prizes for intellectual achievement tells us that our monetary system is good, solid, and just. But it’s insane to think that four men control over 70% of the world’s money supply. At their sole discretion, they can effectively control the prices of everything, from real estate to rice options to the rates at which governments can borrow. This system is simply not natural. It’s not natural to grant such power and control to a tiny banking elite, no matter what the experts tell us. It’s so unnatural, in fact, it’s about as sensible as hanging out with grizzly bears. Governments and economists are there to tell us that the bears are safe and have been tamed by qualified professionals… that the trainers are the smartest guys in the world, and we should just trust them. It might work for a while… but eventually, people are just going to get mauled. That’s our monetary system. And it doesn’t take a rocket scientist to see that it’s obviously not working. The signs are everywhere, from Japan to Jakarta, India to Italy. And, as uncomfortable and difficult as interim transition period may be, the end of this corrupt fiat experiment is definitely something to celebrate.

SeekingAlpha: According to the WGC, gold demand dropped from 974.6 tonnes in Q2FY12 to 856.3 tonnes in Q2FY13. The drop was primarily due to a decline in ETF gold demand and Central Bank demand, while jewelry and bar and coin demand had large increases during the quarter. The trend has been the same for both quarter of FY2013, with ETF demand going negative to the tune of 579.1 tonnes, while coin and bar demand increased by 885.3 tonnes. An investor can truly see that we may have some serious supply issues in the future if ETF gold sales stop. After all, in the first half of the year ETFs sold a stunning 580 tonnes of gold (over 25% of annual gold mine supply) which kept the gold market supplied with ETF gold as other demand rose due to the fall in the gold price. If this gold was not unloaded by the ETF's, the market would have been short by this amount of gold which would have led to a much higher gold price. We are now beginning to see ETF gold outflows ending - if physical demand keeps up anywhere near to what it was in the first half of the year there may be trouble. If the ETFs start buying, where will they get their gold? We do not know.

William Kaye (via King World News): I’m focused right now on the fact that the gold price has been relatively strong. Generally we see very thin trading in August. In fact, most of the trading that is recorded in the markets is algorithm trading. In other words, it’s Goldman Sachs algorithm trading with JP Morgan, and then they switch roles the next day. This is well known in the industry, but it’s not well known to investors. So most of the liquidity that appears to be present in these markets is in fact nonexistent. It’s phantom liquidity provided by these high frequency trading algorithms. We are in a position where if the powers that be want to suppress things one more time, they probably would have the ability to do it because of the thinness of the markets. I would look for a serious push higher in the first week of September when the battle of true liquidity will be joined once again. There is serious concern at the moment over derivatives exposure because of the move higher in interest rates. So there are probably entities who are screaming right now because of what has taken place in the interest rate markets. And if they had to actually report, as opposed to just papering over in some fashion, the mark-to-market losses that they are experiencing, this would not only be extremely painful, but possibly it would possibly destabilize to the entire financial system.

Yoga Rusmana & Eko Listiyorini (Bloomberg): Gold jewelry demand in Indonesia is set to expand to a four-year high as consumers in Southeast Asia’s biggest buyer join India to China in increasing purchases as prices slump and the middle class expands. Consumption of necklaces, bracelets and rings will probably climb to 40 metric tons this year, according to Iskandar Husin, secretary-general of the Indonesian Goldsmiths and Jewelers Association. That’s a 30 percent increase from 30.8 tons in 2012, and the most since 41 tons in 2009, data from the London-based World Gold Council show.

Eric Sprott (Sprott Asset Management); I think we saw the bottom on June 28th. My way of defining a bull market in a commodity, I always say if a product can go up 20 percent in a reasonably short time, from a declining trend to up 20 percent, you’re in a new bull market. And silver has to go, I think, probably about another 20 cents from where it is at this moment, and we’re in a new bull market. It will have risen 20 percent. We’ve had the silver stocks go up to 37 percent. They’re already in a bull market. Both silver and the silver stocks have broken the 50-day moving averages, and I think gold’s gone through its 50-day moving average. So, it has all the signs of being in a new bull market. If I believe my own analysis that there’s a shortage of physical gold, and there’s a huge fight going on, they lost the fight. The fact is that demand surged for gold and silver, when the price got knocked down. I personally believe we are going to see a very, very dramatic increase in the price of gold and silver. And when I mean dramatic, I mean they could double in a year. In the case of silver, it probably would go up more than that. Of course, the spill off effect to the equities could be gargantuan, because the equities always double or triple the performance of gold. So, I think we have the set up for it. We have all the indications of tightness. We have the technical indicators starting to come together here, and I think it looks very, very exciting for precious metals owners and investors.

Tekoa Da Silva (Bull Market Thinking): Gold is now trading at $1800 oz, and small factories and workshops are shutting down because they can't get bullion gold. But despite the elevated pricing and increasing trade controls, Indian families are still buying gold, I also see gold coming in from illegal channels in the market which is not good. People are buying [In] small quantities every month or maybe every couple of months or alternate months,” Vishal Vyas noted. “They put 20% or 30% of their savings every month into gold…[and] when they get perks or added benefits from their commercial or professional careers…they’ve started investing 20% to 30% of that too.

Egon von Greyerz (via King World News): "The physical market will now take over as the only true market," von Greyerz writes for King World News. "Paper longs will take delivery and paper shorts will panic. This will not happen overnight, but gradually, over time. There will be periods with very high volatility, with gold going up hundreds of dollars in one day and silver tens of dollars a day. But corrections will also be violent, so investors must be careful."

Eric Sprott (Sprott Asset Management via King World News): Eric Sprott warned King World News that the world is in for a massive and frightening collapse. He also startled KWN when he revealed what his biggest fear is when the mega-collapse takes place. Sprott “Well, of course the (coming) collapse always has me worried. I know you’ve had various guests who talk about the derivatives, and it’s a huge concern because we all have no idea what’s going on there. It’s almost frightening to think about $500 trillion of derivatives, of which we all know nothing (about their structure). What happens if the system fails here? I’m talking economics here -- economically what happens? I think I know what happens to the price of gold, but it would be a sad day that we all find out that all of the emperors have no clothes, and the whole system grinds to a halt. So that’s my biggest fear (the collapse of the entire financial system).”

•••••••••••

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

Quote:

Gold closed up Friday $24.50 to $1395.70. (Comex closing time).

Silver was up 78 cents to $23.74 (Comex closing time).

In the access market today at 5:15 pm tonight here are the final prices:

gold: $1397.80

silver: $24.08

Thursday, August 22nd Gold and Silver Action (basis 1:30 PM EST)

http://harveyorgan.blogspot.com/2013/08/august-24scotia-to-rescue-to-jpmorgan.html

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

In silver

Quote:

The total silver Comex OI fell by 346 contracts yesterday. The total of all Comex silver OI stands at 131,051 contracts. For the front month of August we have an OI reading of 9 for no gain or loss of OI contracts. We had 0 notices served upon our longs yesterday and thus we neither gained nor lost any contracts standing for the August delivery month. The next big delivery month is September and here the OI fell by 3162 contracts down to 42,421.

In gold

Quote:

The total gold Comex open interest fell on Friday by 3071 contracts from 381,781 down to 378,710. The front August contract month has an OI of 612 contracts down from Thursday's level of 1117 for a loss of 505 contracts . We had 493 contracts filed on Thursday so we lost 12 contracts or 1200 oz that will not be standing in this delivery month of August. The next non active delivery month for gold is September and here the OI fell by 4 contracts to 400. The next active delivery month is October and here the OI fell by 725 contracts down to 26,997. The biggest of all delivery months is the December contract month. The December OI fell by 2143 contracts from 227,722 down to 225,431.

Volume

In silver

Quote:

The estimated volume Friday was huge coming in at 96.133 contracts.

The confirmed volume on Thursday was excellent at 67,876.

In gold

Quote:

The estimated volume on Friday was good at 172,277 contracts.

The confirmed volume on Thursday was fair at 156,530. The OI for the front August month remains extremely high as we head into the final days in the delivery process for August.

Inventory Numbers

In silver:

Quote:

Today, we had good activity inside the silver vaults.

we had 0 dealer deposits and 1 dealer withdrawals.

i) Out of the dealer Scotia: 15,015.80 oz

We had 1 customer deposits:

i) Into Brinks: 371,193.610 oz

total customer deposit: 371,193.610 oz

we had 1 customer withdrawals:

i) Out of Scotia: 64,994.60 oz

total customer withdrawal : 69,994.60 oz

we had 1 adjustment today

i) Out of Delaware: 50,018.578 oz was adjusted out of the customer and this landed into the customer at Delaware

Thus we have the following:

Registered (dealer) silver remains at: 39.274 million oz

Total of all silver: 164.430 million oz.

In gold:

Quote:

We have huge activity in the Comex gold vaults today.

The dealer had 0 deposits and 1 dealer withdrawal and it was a biggy!!

i) out of the dealer Scotia: 28,809.155 oz and this was an SOS from JPMorgan/

This dealer withdrawal landed into the customer account of jPM.

We had 1 customer deposits today:

i) Into JPMorgan: 28,809.155 oz

Total customer deposits: 28,809.155 oz

We had 0 customer withdrawals:

Total Customer withdrawals: nil oz

Today we had 3 adjustments and all were SOSs:

i) Out of Brinks: 397.42 oz adjusted out of the customer and into the dealer at Brinks

ii) Out of HSBC: 100.52 oz was adjusted out of the customer and into the dealer at HSBC

iii) Out of Scotia: 4605.15 oz was adjusted out of the customer and into the dealer.

These will be used to settle upon longs.

Thus tonight with respect to JPMorgan gold inventory here is JPMorgan's weekend inventory :

JPM dealer inventory remains constant tonight to: 286,485.185 oz or 8.91 tonnes (same)

JPM customer inventory rises tonight to: 177,595.819 oz or 5.52 tonnes courtesy of Scotia's largess.

Today, 0 notices were issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 36 contracts

The total dealer Comex gold falls tonight to 767,232.062 oz or 23.864 tonnes of gold. The total of all Comex gold (dealer and customer) rises tonight to 7,013,255 oz or 218.14 tonnes.

Tonight, we still have the continuing disturbing piece of news concerning the low dealer gold inventory for our 3 major bullion banks(Scotia, HSBC and JPMorgan). These 3 dealer gold inventory remains constant tonight at an extremely low of 19.14 tonnes:

i) Scotia: 183,508.994 oz or 5.707 tonnes

ii) HSBC: 154,555.673 oz or 4.80 tonnes

iii) JPMorgan: 286,485.185 oz or 8.91 tonnes

Total: 19.14 tonnes

Brinks dealer account which did have the lion's share of the dealer gold saw its inventory level rises tonight to 129,679.910 oz or 4.03 tonnes. A few months ago they had over 13 tonnes of gold at its registered or dealer account.

Delivery Notices

In silver:

Quote:

The CME reported that we had 1 notices filed for 5000 oz today.

In gold:

Quote:

Today we had 36 notices served upon our longs for 3,600 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:

To calculate what will stand for this non active delivery month of August, I take the number of contracts served thus far this month at 220 x 5,000 oz per contract = 1,100,000 oz to which we add the number of notices yet to be served upon: (9 notices - 1 notices today x 5,000 oz or 40,000 oz ). Thus in total we have 1,140,000 oz standing.

In summary:

220 contracts served x 5000 oz per contract (served) or 1,100,000 oz + 8 contracts x 5000 oz or 40,000 oz (to be served upon) = 1,140,000 oz.

We lost 1 contract or 5,000 oz will not stand for delivery in this August contract month.

In gold:

Quote:

In order to calculate what I believe will stand for delivery in July, I take the total number of notices served (3529) x 100 oz per contract to give us 352,900 oz already served this month to which I add the OI standing for August (612 contracts) minus the number of notices served (36) = 576 notices x 100 oz per contract or 57,600 oz still to be served upon. The total standing is thus 410,500 oz

Thus we have the following gold ounces standing for metal:

3529 contracts served x 100 oz or 352,900 oz + ( 612 - 36 contracts x 100 oz) or 57600 oz yet to be served upon = 410,500 oz or 12.70 tonnes of gold

We lost 12 contracts or 1200 oz of gold that will not stand for delivery in August

Ladies and Gentlemen: we have a three-fold problem:

i) the total dealer inventory of gold falls a very dangerously low level of only 23.864 tonnes

ii) a) JPMorgan's customer inventory rises to 177,595.819 oz but we should see much of this gold settle upon outstanding longs.

ii b) JPMorgan's dealer account remains constant tonight at 286,485.185 oz but all of that gold and them some is spoken for.

iii) the 3 major bullion banks have collectively only 19.14 tonnes of gold left in their dealer account.

Select Commodity Prices:

The Bloomberg Baltic Dry Index (BDI) was 1165.0 up 0.60%. WTI August crude was 106.42 up 1.22. Brent closed

at 111.04 up 1.14. The spread between Brent and WTI was 4.62, down 0.08. The 30 year US Treasury bond was

down 0.0870 at 3.7980. The 10 year T-Note was down strongly by 0.0830 at 2.8180. This is the one that is

the dollar killer. GOFO is negative for the 35th day in a row. It still looks like they are running out of

bullion. The dollar was down 0.11 at 81.41. The PPT/Dow was 15,010.51 up 46.77, ABOVE the very key round

number of 15,000. Facebook was 40.55 up a whopping 2.00 (5.19%). Silver also closed up a whopping 0.90 at

24.08. It looks like broke out today. Silver was up, but they drove down interest rates and drove up the

Dow. September wheat was up 4.00 at 634.40. December corn was up 5.40 at 470.00. October lean hogs were

85.10 up 0.700. Hogs are also in backwardation as far out as May 2014. Seems the market is very concerned

about the pork supply. September feeder cattle were down 1.050 at 156.650. September copper was 3.3485 up

0.0185. September natural gas was down 0.060 at 3.485. September coal is down 0.45 at 53.15.

Thank you for reading the Harvey Report. There is much more on Harvey's blog.

http://harveyorgan.blogspot.com

Goooood day!

•••••••••••••••••

Mr. Fix
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Just one question:

I am wondering how Eric Sprott can be saying that mining shares are a buy,  while he is simultaneously forecasting a global economic collapse.

Doesn't that sound insanely risky to you?

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the teacher will appear."

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RE: Miners

There might be a short window of opportunity after the PMs take off and before Ben says he is tapering when the miners go absolutely berserk, but the trick is to accurately forecast when to get out. If you are one minute late selling before Ben says he is tapering and pulls the plug, you will not be able to get out in time and even if you do you will have rapidly becoming worthless dollars in a broker account that's frozen, and you will likely lose everything.  To me, it's not worth the risk.  I sleep well knowing that real money will not go to zero no matter what, as long as God lets me stay alive.  I think that 99% of folks in miners will lose it all, because they will be blindsided by his taper call, just like we were all blindsided by the, "Well, we are thinking about tapering" call.  All paper denominated in dollars will become worthless. 

DayStar

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Timing

Daystar, thanks for the consistent, well put together info!

Mr fix, I'm with you on the whole timing thing, paper plays seem mighty risky if one believes the entire system is about to collapse.

I'd say most of us are believers in collapse, just when and how suddenly is anyones guess. So far it looks like the slow motion train wreck crowd has it right. That being said I feel terminal velocity can happen in a nano second.

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~~Harvey 26 Aug 2013

This is DayStar (DS) with the Monday Harvey Report

•••••••••••

News and Commentary

  • Harvey: The Comex registered or dealer inventory of gold rose marginally. It is still well below the 1 million oz mark, at 768,797 oz or 23.91 tonnes. With no gold entering the dealer side it seems almost impossible for the bankers to settle upon longs once the December contract hits. The total of all gold at the Comex (dealer and customer) tonight rests just above the 7 million oz barrier resting at 7.002 million oz or 217.81 tonnes. JPMorgan's customer inventory falls tonight to 167,056.49 oz or 5.196 tonnes. It's dealer inventory remains constant at 286,485.185 oz (8.91 tonnes). The total of the 3 major gold bullion dealers( Scotia , HSBC and JPMorgan) in its Comex gold dealer account remain constant in gold inventory tonight and its resting inventory is 19.14 tonnes of gold. Brinks continues to record a low of only 4.03 tonnes in its dealer account. The GLD reported no gain in its inventory tonight with a reading of 920.13 tonnes of gold. We had no change in the silver inventory at the SLV and thus the reading of the SLV inventory tonight is 339.373 million oz. DS: They probably just stopped reporting on these low, unchanging numbers. Remember the Comex caveat that the numbers may not be accurate.
  • Jeanette Rodrigues and Anoop Agrawal (Bloomberg): Gold in India remains well bid and premiums have risen to $35 per ounce over London spot prices due to a lack of supply and very robust demand. The wisdom of Indian housewives’ belief in gold as a store of value is being seen after the rupee’s rapid depreciation in recent weeks. Gold has risen or rather the rupee has fallen to near record lows against gold (see chart below) at 90,000 rupees per ounce. The rupee has fallen from 70,800/oz on June 28th to nearly 90,000/oz this morning or a fall of 27% in less than two months. Money managers predict the rupee’s slump to an all-time low against the dollar and resurgent inflation will lead to robust demand for gold bullion as a store of value. “We are likely to see a good rebound in demand before Diwali" [Hiren Chandaria]. DS: The press talks about gold being 80% of India's current account deficit, but the capital controls on gold have done nothing to stop the slide of the Rupee. The country is so poorly managed that they have squandered vast amounts of their wealth and printed money to boot, and now the people are trying to protect themselves from an imploding rupee by buying gold. The real reason controls went in on gold was to try to slow the hemorrhaging of gold from the West, and TPTB had rather the gold went to China that is the strong one. Mr. Fix, if you look at India, the price of gold has taken off in terms of rupees, and the elites have not yet pulled the plug. The elites are not perfect, and they may have to fight a dogged retreat, even before the crash as the pressure on gold becomes too great as the supplies dwindle.
  • Bull Market Thinking: BMT interviewed Vishal Vyas, head of operations at India’s top bullion dealer, Pushpak Bullions who said small shops are closing down in India, because there are no more gold to process thanks to the government's crackdown: "The trade controls are also pushing the price of gold higher Vishal noted, in that, “Since import duties have risen, the gold price in the Indian market is the same as it was when gold was $1800 oz. When $1800 an oz. gold was in the market, it was 31,500 rupees per 10 grams of gold. Today gold is below $1400 oz., and the price is the same—31,500 rupees per 10 grams of gold.” Based on the latest trade figures in July the country bought $2.9 billion worth of gold – an increase on June figures. With the festival season ahead these numbers are unlikely to drop any time soon.
  • Paul Mylchreest (Thunder Road Report): Stability in the gold market for policymakers and regulators implies a stable gold price, preferably at “low” levels (i.e. well below all-time highs), an efficiently functioning gold futures market, ample liquidity in the gold lending (leasing) market and no heightened desire among gold buyers to take possession of physical bullion. A surging gold price, backwardations and shortages of physical bullion are proverbial “canaries in the mine” regarding an overstretched system. When stress emerges in the financial system, the problem with the repo market is its tendency to be (very) “pro-cyclical” on the downside. It also operates pro-cyclically in terms of leverage and asset prices on the upside, which always seems to get forgotten. Looking underneath the bonnet/hood, we are doubtful that either of these markets, repos or gold, can reasonably be described as “stable” right now. There also seems to be a paradox where the current low repo rates and gold prices are, we suspect, fooling people into a false sense of complacency. What’s really piqued our interest, however, is whether there is a similar issue which is increasingly impacting both of these systemically important markets? This issue relates to the unavailability of sufficient collateral.
  • Eric Sprott (Sprott Asset Management): Central banks collude to suppress gold. we are in midst of a glaring supply crunch for physical gold, with central banks and institutions with large short books in gold, in his opinion, trying desperately to fight the tide. Eric believes that western central banks formulated a plan at the onset of the gold supply crisis, and decided to take measures to fight demand for the yellow metal. The Fed hasn’t been the only one concerned with the demand for physical gold, says Eric: “All the commercial banks that were short gold and silver have now covered their shorts. While they advised their customers to sell, they were buying.” Eric believes that central banks also did what they could to stop citizens in India from obtaining gold. The fact is that demand surged for gold and silver when the price got knocked down. I personally believe we are going to see a very dramatic increase in the price of gold and silver. And when I mean dramatic, I mean they could double in a year. Silver could do much more than that.
  • Chris Powell (GATA): Sprott Asset Management's John Embry tells King World News today that he sees intervention against gold by the Bank for International Settlements and in support of U.S. government bonds. But, he adds, the West's central planners don't have any plan that can avert higher gold and higher interest rates. The obvious alternative to the fiat currency system is gold, and so Embry totally accepts Andrew Maguire’s observation that the BIS’s hand is consistently active in the gold market, sometimes more than others, but the attempt by the BIS to maintain the viability of the fiat currency system will ultimately fail. There is major currency flight in countries such as Brazil and India. Brazil stepped forward with a $60 billion program in a desperate attempt to stabilize their currency. As rates rise in the United States, this is vacuuming money out of these other countries and creating a whole new set of problems. So the problems are just escalating. Meanwhile, as all of this chaos is unfolding, Western central planners are desperately trying to avoid the inevitable collapse that is coming.
  • Eric Sprott (via King World News): The shortage of gold got particularly acute late last year and early this year, which I think is what caused the raid. Of course it (the raid on gold) totally backfired as demand just skyrocketed. We see all of these weird things like this gold leaving London to go to Switzerland. I mean that’s a serious amount of gold -- almost 800 tons in six months. 800 tons is about 1/3 of (annual) mine supply, in half a year. If it kept going at that pace it would total 2/3 of (annual) mine supply for a whole year. So there are all of these things going on in the gold market that tell you there is a shortage. Our own analysis of the supply/demand (also) tells us there is a shortage. The GOFO rate being negative, backwardation in gold, Comex inventories going down, shipments from London to Asia, the activity on the Shanghai Gold Exchange, they are all saying the same thing (that there is a shortage of available physical gold). I think everyone has made a very compelling case of the fact that this smack down was engineered. So the snapback could be quite dramatic.
  • Bill Holter: The PM price suppression "operation" in April clearly backfired and it is now only a matter of time before we see the failure of one (or all) paper exchanges for metal. As Jim Sinclair has said, Gold will become a 100% cash market with real and full settlement. Armstrong, Edelson and Dent are still warning of a sharp downturn in gold. Are they correct? Time will tell but I personally believe that they are wrong now, were "lucky" to have "timed" the sale of tons upon tons of paper contracts that "made" price action. since the all time highs back in 2011 there is now more debt outstanding, more money supply outstanding, more derivatives and less equity. Put simply, the system is far riskier today to a complete and total crack up than where we were then and the reasons to own Gold and Silver are stronger today than they were then. Each day that you "wait" to buy PMs brings us closer and closer to the day that we go "no offer". I have said for many years now "do not trade" because if the music stops and you do not have your position...you will be out of position for the remainder of your life with no chance of repair. Trying to call a top ANY time before this system resets itself is in my opinion reckless, foolish and can only be dangerous because you have to be correct twice. You have to be correct that a reaction is in fact going to happen AND you must get back in. If you are wrong on either of these...you lose.
  • Tyler Durden: This year's Jackson Hole symposium came and went with virtually zero actionable impact, as the key topic was the central bankers' admission that they are all clueless about how to best unwind global QE, and the conclusion that they have cornered themselves as any unwind will mean dramatic risk upheavals. Speaking from Jackson Hole, top officials warned that global financial stability is at risk as central banks draw back from ultra-easy policies, because emerging markets lack defences to prevent potential huge money outflows.
  • Nigel Nelson (Daily Mirror): Cameron and Obama agree to a military strike over the use of chemical weapons in Syria [DS: never mind that the main evidence that we have that Syria used them is the ever so trust worthy John Kerry assuring us that he knows the Syrians used the weapons on their own people].
  • Ambrose Evans-Pritchard (Telegraph UK): India’s rupee and Turkey’s lira both crashed to record lows on Thursday following the US Federal Reserve releasing minutes which signalled a wind-down of quantitative easing as soon as next month. Dilma Rousseff, Brazil’s president, held an emergency meeting on Thursday with her top economic officials to halt the real’s slide after it hit a five-year low against the dollar. The central bank chief, Alexandre Tombini, cancelled his trip to the Fed’s Jackson Hole conclave in order “to monitor market activity” amid reports Brazil is preparing direct intervention to stem capital flight. The country has so far relied on futures contracts to defend the real – disguising the erosion of Brazil’s $374bn reserves – but this has failed to deter speculators. The Brazilian leaders are moving currency intervention off balance sheet, but the net position is deteriorating all the time. DS: Sounds like Brazil has been a good student of JPM.
  • Ellen Brown: If you think [the cash cushion from the unlent portion of deposits] makes the banks less vulnerable to economic shock, think again. Much of this balance sheet cash has been hypothecated in the repo market and laundered through the off-the-books shadow banking system. This allows the proprietary trading desks at these "banks" to use that cash as collateral to take out loans to gamble with. In a process called hyper-hypothecation this pledged collateral gets pyramided, creating a ticking time bomb ready to go kablooey when the next panic comes around. It appears that JPMorgan’s loan-to-deposit ratio is only 31% not because the bank could find no creditworthy borrowers for the other 69% but because it can profit more from buying airports and commodities through its prop trading desk than from making loans to small local businesses. DS: I doubt that the real reason is to make more money elsewhere. JPM does not want the economy to grow, and so they don't make loans to small businesses that create jobs that would stimulate the economy. They buy commodities and businesses in order to gain more control. Money is not the objective at this point. The banking system is now dominated by “global merchants that seek to extract rent from any commercial or financial business activity within their reach.” They represent a return to a feudal landlord economy of unearned profits from rent-seeking.

•••••••••••

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

Quote:

Gold closed down $2.70 to $1393.00. (Comex closing time ). Silver was up 24 cents to $24.00 (Comex closing time).

In the access market today at 5:15 pm tonight here are the final prices:

Gold: $1405.00

Silver: $24.33

Friday, August 23rd Gold and Silver Action (basis 1:30 PM EST)

http://harveyorgan.blogspot.com/2013/08/aug-26.html

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

In silver

Quote:

The total silver Comex OI fell by 1249 contracts today. The total of all Comex silver OI stands at 129,802 contracts. For the front month of August we have an OI reading of 11 for a gain of 2 contracts. We had 1 notice served upon our longs yesterday and thus we gained 3 contracts or 15,000 additional silver ounces will stand for the August delivery month. The next big delivery month is September and here the OI fell by 3,694 contracts down to 35,565.

In gold

Quote:

The total gold Comex open interest rose today by 1171 contracts from 378,710 up to 379,907 corresponding to a rise in price of gold to the tune of $24.50 on Friday. The front August contract month has an OI of 572 contracts down from Friday's level of 612 for a loss of 40 contracts . We had 36 contracts filed on Friday so we lost 4 contracts or 400 oz that will not be standing in this delivery month of August. The next non active delivery month for gold is September and here the OI fell by 4 contracts to 400. The next active delivery month is October and here the OI fell by 413 contracts down to 26,584. The biggest of all delivery months is the December contract month. The December OI rose by 1171 contracts from 225,431 up to 226,602.

Volume

In silver

Quote:

The estimated volume today was good coming in at 76,190 contracts.

The confirmed volume on Friday was excellent at 96,133. First day notice for the September contract is this Thursday.

In gold

Quote:

The estimated volume today was poor at 96,435 contracts.

The confirmed volume on Friday was good at 172,277. The OI for the front August month remains extremely high as we head into the final days in the delivery process for August.

Inventory Numbers

In silver:

Quote:

Today, we had good activity inside the silver vaults.

We had 0 dealer deposits and 0 dealer withdrawals.

We had 0 customer deposits:

Total customer deposit: nil oz.

We had 1 customer withdrawals:

i) Out of Scotia: 500,700.225 oz

Total customer withdrawal: 500,700.225 oz

We had 0 adjustments today.

Thus we have the following:

Registered (dealer) silver remains at: 39.274 million oz

Total of all silver: 163.930 million oz.

In gold:

Quote:

We have very little activity in the Comex gold vaults today.

The dealer had 0 deposits and 0 dealer withdrawals today.

We had no customer deposits today.

Total customer deposits: nil oz

We had 1 customer withdrawal:

i) out of JPMorgan: 10,539.325 oz (This was the reason for the SOS on Friday to Scotia)

Total Customer withdrawals: 10,539.325 oz

Today we had 1 adjustment:

i) out of Manfra: 1565.731 oz was adjusted out of the customer and into the dealer account of Manfra.

This will be used to settle upon longs.

Thus tonight with respect to JPMorgan gold inventory here is JPMorgan's Monday night inventory :

JPM dealer inventory remains constant tonight to: 286,485.185 oz or 8.91 tonnes (same)

JPM customer inventory falls tonight to: 167,056.491 oz or 5.196 tonnes courtesy of Scotia's SOS.

Today, 0 notices were issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 72 contracts of which 64 notices were stopped by JPMorgan dealer ( house account).

The total dealer Comex gold rises slightly tonight to 768,797.799 oz or 23.91 tonnes of gold (due to the adjustment at Manfra). The total of all Comex gold (dealer and customer) falls tonight to 7,002,716.313 oz or 217.81 tonnes.

Tonight, we still have the continuing disturbing piece of news concerning the low dealer gold inventory for our 3 major bullion banks(Scotia, HSBC and JPMorgan). These 3 dealer gold inventory remains constant tonight at an extremely low of 19.14 tonnes.

i) Scotia: 183,508.994 oz or 5.707 tonnes

ii) HSBC: 154,555.673 oz or 4.80 tonnes

iii) JPMorgan: 286,485.185 oz or 8.91 tonnes

Total: 19.14 tonnes

Brinks dealer account which did have the lion's share of the dealer gold saw its inventory level rises tonight to 129,679.910 oz or 4.03 tonnes. A few months ago they had over 13 tonnes of gold at its registered or dealer account.

Delivery Notices

In silver:

Quote:

The CME reported that we had 9 notices filed for 45,000 oz today.

In gold:

Quote:

Today we had 72 notices served upon our longs for 7,200 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:

To calculate what will stand for this non active delivery month of August, I take the number of contracts

served thus far this month at 220 x 5,000 oz per contract = 1,100,000 oz to which we add the number of

notices yet to be served upon: (9 notices - 1 notices today x 5,000 oz or 40,000 oz ). Thus in total we

have 1,140,000 oz standing.

In summary:

220 contracts served x 5000 oz per contract (served) or 1,100,000 oz + 8 contracts x 5000 oz or 40,000 oz

(to be served upon) = 1,140,000 oz.

We lost 1 contract or 5,000 oz will not stand for delivery in this August contract month.

In gold:

Quote:

In order to calculate what I believe will stand for delivery in July, I take the total number of notices served (3601) x 100 oz per contract to give us 360,100 oz already served this month to which I add the OI standing for August (572 contracts) minus the number of notices served (72) = 500 notices x 100 oz per contract or 5,000. oz still to be served upon. The total standing is thus 410,100 oz

Thus we have the following gold ounces standing for metal:

3601 contracts served x 100 oz or 360,100 oz + ( 572 - 72 contracts x 100 oz) or 5,000 oz yet to be served upon = 410,100 oz or 12.75 tonnes of gold.

We lost 4 contracts or 400 oz of gold that will not stand for delivery in August.

Ladies and Gentlemen: we have a three-fold problem:

i) the total dealer inventory of gold rises a bit but at a very dangerously low level of only 23.91 tonnes

ii) a) JPMorgan's customer inventory falls to 167,056.491 oz

ii) b) JPMorgan's dealer account remains constant tonight at 286,485.185 oz but all of that gold and them some is spoken for.

iii) the 3 major bullion banks have collectively only 19.14 tonnes of gold left in their dealer account.

Select Commodity Prices:

The Bloomberg Baltic Dry Index (BDI) was unchanged (London holiday). WTI August crude was 106.28 down 0.31. Brent closed at 110.73 down 0.31. The spread between Brent and WTI was 4.45, down 0.17. The 30 year US Treasury bond was down 0.0140 at 3.7840. The 10 year T-Note was down 0.0130 at 2.8050. This is the one that is the dollar killer. GOFO is negative for the 36th day in a row. It still looks like they are running out of bullion. The dollar was up 0.05 at 81.46. The PPT/Dow was 14,946.46 down 64.05, BELOW the very key round number of 15,000. Facebook was 41.34 up a 0.79 (1.95%). Silver also closed up 0.25 at 24.33. The GSR was 57.74, down from a high of around 67%. September wheat was up a huge 20.20 at 654.60. December corn was up a huge 30.40 at 500.40. October lean hogs were 86.025 up 0.925. Hogs are also in backwardation as far out as May 2014. Seems the market is very concerned about the pork supply. September feeder cattle were down 0.400 at 156.250. September copper was 3.3195 down 0.0290. September natural gas was up 0.028 at 3.513. September coal is down 0.02 at 53.13.

Thank you for reading the Harvey Report. There is much more on Harvey's blog.

http://harveyorgan.blogspot.com

Goooood day!

•••••••••••••••••

Mr. Fix
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DayStar, thanks for your reply.

I was just surprised that with all of the insight that Eric Sprott has, that he would overlook the obvious problems with investing in the miners.

As far as India is concerned, yes their currency is in freefall, and the powers that be are doing what they can to stem the flow into India, I'm not exactly sure what you mean by “pulling the plug”, but I do think that the powers that be are more focused on the dollar, and to a lesser extent the euro, as well as the yen, because when the “ plug gets pulled”, I think these currencies will be worthless in a heartbeat.

I am probably overly focused on the dollar, but at least in my peripheral vision, I know that the yen and the euro are also in hopelessly dire straits. I suspect that using the “domino theory”, if the dollar collapsed, it would take  nearly everything else with it.

Therefore, I am more focused on what is happening to the dollar.

Losing its world reserve currency status will be its death knell. War will be used as a diversion, as well as an excuse for making a horrible situation many  order of magnitudes worse.

It would appear that George Bush Junior at least took the time to attempt to rally the public opinion behind his forays into Afghanistan and Iraq, Obama is not even attempting it. He will start this war single-handedly with little to no public support. Wouldn't you consider this somewhat unprecedented? It is hard to interpret his actions as anything other than either desperation or arrogance at this point. It might be a combination of the two.

I left a significant post behind the pay wall addressing the “unintended consequences” of the upcoming war.

Turd Coined that phrase in his podcast this evening, as if this war  was going to cause events that were unintended to unfold.

My basic premise, is that it is the “unintended consequences” are the real agenda, and they have been carefully planned.

As we say,

“this will not end well”.

__________________

"When the student is ready,
the teacher will appear."

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RE: Terminal Velocity

Thanks, BigNasty.  I am glad Harvey suits your interests. 

I mentioned "pulling the plug" to Mr. Fix and I think that maps into your terminal velocity in a nanosecond.  What I mean by "pulling the plug" is purposely creating an event that causes the whole system to break. The elites have purposely created these behemoth banks that are consuming the world.  They are so big they have been able to impose fiat money on an otherwise unwilling world.  They have systematically acquired the majority of the above ground investment grade PM and are now printing the fiat system into oblivion as one means to loot the wealth of the world.  On top this terminally destructive and purposeful devaluation of our fiat, the banks have erected this impossibly large system of derivatives based mainly on interest rates.  It is sort of like a circle of suiciders strapped with terminator-ware, each of whom has the detonator button for the other guy's vest.  FreeMarketAgent says the plan is to use derivatives to crash the European bond market and in a domino effect 2-3 weeks later crash the US bond market while the elites are massively short the UST in offshore funds.  So, yes, apparently it is a "plug pulling" event where the system reaches terminal velocity in a nanosecond.  Lindsey Williams says the bond markets will tank when Bernanke intentionally stands up and announces tapering, because interest rates will instantly head for the moon.  Lindsey says Bernanke's "well, we are thinking about tapering" was a test of how well the system would react to tapering.  I guess they must be satisfied, because it looks to me like the market nearly got away from them when they were merely musing about tapering.  In any event, when it goes down, it will be planned.  Even the wars are staged events where both sides are working for the same master with the objective to thin the herd and obtain direct control over the whole earth.

FWIW,

DayStar

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RE: Pulling the Plug

Good to see you back, Mr. Fix. 

Pulling the plug is an intentional, planned event where TPTB crash the modern economic system of the world.  I think it will happen when Bernanke announces tapering and sends interest rates to the moon.  They intend for it to result in famine, war, and the death of billions.  As you have previously noted, their published intention is to end up with 500 million out of about 6.7 billion.  That means they are looking for about a 90% mortality rate world wide.  Oddly enough, that is the upper limit of what the congressional EMP commission estimated (section now redacted) would die if an EMP turned off the lights. 

It has been a year since Lindsey Williams said the dollar would be worthless by the end of the year.  I think he had the wrong year.  Most likely they delayed the plan to crash the dollar in 2012 because of their uncertainty that resulted from what their "think tanks" discovered about a divine intervention in their plans, but I don't think we are very far away from that event now, though, because the available PMs are almost depleted.   I checked on the availability of 90% yesterday and found that the premiums on 90% are now higher on that product than on any other silver bullion product.  I conclude that premiums on 90%, that I have seen sell for less than spot, are now sky-high because the supplier of last resort is about out of their long-term cache.  Clearly, the elites are not going to be able to quell demand for the shiney in places that have recent memory (in the 90s) of their currency suffering serious inflation.  They will not be able to stop demand, even if they make it illegal to buy and own.  That safe haven demand will deplete supply.  Depleted supply will spawn higher prices on the black market of which India's $1800 gold is a case in point.  Because the public is buying serious quantities of PMs and the elites themselves are draining Comex, GLD, SLV, and the LBMA, clearly the global supply will not be adequate to satisfy demand much longer, and we can expect that bid, no offer situation to occur.  Harvey says Comex does not have enough inventory to meet the December demand, and certainly even the August OI standing for delivery has not come down very fast.  The last I saw, there were still May deliveries that were still open.  Comex is just sweeping its inability to deliver under the rug and pretending that all is well. 

I am not too worried about the US in Syria.  It is probably grandstanding.  I do not think the US will be successful there and probably will not even try very hard.  Iran will use Syria as a staging ground to invade Israel, and that is a long standing plan of the elites.  O will not thwart that.  The US noise about Syria at this point may simply be a delaying tactic to keep Israel from attacking Iran.  At some point Jordan will fall to the Iranians and maybe also the Saudis will fall.  All is not as it appears on the surface.  As you say, it is the “unintended consequences” that are the real agenda, and they have been carefully planned.  In the main they will succeed.  God simply carves out a niche for Himself to prevent the elites from making the world totally uninhabitable for the poor man.

DayStar

DayStar
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~~Harvey 27 Aug 2013

This is DayStar (DS) with the Tuesday Harvey Report

•••••••••••

News and Commentary

  • Harvey: Today was options expiry on the gold and silver contracts. Generally the bankers love to whack gold and silver prior to the expiry to prevent contracts on these precious metals from being purchased. In the wee hours of the morning, they did drive gold and silver down but tensions in Syria mounted and that caused gold and silver to rise were they finished at $1417.90 for gold and $24.65 for silver. Today we saw a huge whack in the gold/silver equity shares and that is a good sign that the bankers are trying to mobilize forces and try another attack for tomorrow. We will see how this plays out. At the Comex, the open interest in silver fell dramatically by 6701 contracts to 124,649 with silver's rise in price by 24 cents (Monday) . We must have had a lot of short covering yesterday.
  • Harvey: Tonight, the Comex registered or dealer inventory of gold remains constant. It is still well below the 1 million oz mark, at 768,797 oz or 23.91 tonnes. This is dangerously low especially when we are closing in on the final few days of the August delivery month. With no gold entering the dealer side it seems almost impossible for the bankers to settle upon longs once the December contract hits. The total of all gold at the Comex (dealer and customer) tonight rests just above the 7 million oz barrier resting at 7.002 million oz or 217.81 tonnes. JPMorgan's customer inventory remains constant tonight at 167,056.49 oz or 5.196 tonnes. It's dealer inventory remains constant at 286,485.185 oz (8.91 tonnes). The total of the 3 major gold bullion dealers( Scotia , HSBC and JPMorgan) in its Comex gold dealer account remain constant in gold inventory tonight and its resting inventory is 19.14 tonnes of gold. Brinks continues to record a low of only 4.03 tonnes in its dealer account. DS: IMHO, those inventory values that remain constant are highly questionable. Can you imagine running a business and the inventory never changes? Where is the business if nothing ever happens? I call bogus on this unchanging data.
  • Harvey: The GLD reported a gain in its inventory tonight of one tonne with a reading of 921.13 tonnes of gold. We had no change in the silver inventory at the SLV and thus the reading of the SLV inventory tonight is 339.373 million oz. On Friday, we recorded our 36th consecutive trading day for negative GOFO rates. Today we record our 37th consecutive negative trading for GOFO.
  • Bloomberg: Technical analysts say that gold's break above $1,400 an ounce on Monday for the first time since June 7, in conjunction with its break above the 100 day moving average and a bullish "cup and handle" chart pattern, suggest more gains are in store for gold which may have bottomed out two months ago on June 28.
  • GoldCore: Gold holdings by central banks are keenly watched since they as a group became net buyers in 2010 following two decades of being net sellers. The global economic crisis since 2008 has led to resurgent official sector interest in gold which seems set to continue for the foreseeable future. Central banks are diversifying their assets amid a mounting, long term, concerns about fiat currencies, particularly in emerging markets. Demand from central banks and global coin and bar demand is helping to counter the record outflows from ETF products seen this year. Central banks added 534.6 tons to gold reserves in 2012, the most since 1964, and may buy a similar amount again this year.
  • Reuters: Gold futures in India touch record high above 32,500 rupees, but are still expected to go higher. Silver for September delivery on the MCX was 2.54 percent higher at 55,155 rupees per kg.
  • Bengt Saelensminde: According to the World Gold Council, a massive 797 tons of gold left London and headed for Switzerland in the first half of this year. To put that into perspective, that’s nearly ten times the 72 tons exported during the whole of last year! Australian bank Macquarie says that bullion is draining out of London’s exchange-traded funds (ETFs), heading to Switzerland where it’s melted down into more manageable coins and smaller bars, before heading off to Asia. That is remarkable. And to my mind, this is the sort of activity that signals the bottom of the latest southbound swing in gold. Large-scale changes of ownership often occur at market extremes. OK – finally having the market bottom in is good news for some, but the problem is, many won’t have participated in the recovery. Like I say, over 700 tons have been shipped out of London over the first half of this year. Again, to put that into perspective, Gordon Brown’s much berated gold sales between 1999 and 2002 amounted to just under 400 tons. So, what we’ve witnessed is a massive outflow of private gold wealth, and remember, that’s just during the first half of this year!
  • John Rubino (Dollar Collapse): One of the reasons that the developed world seems relatively stable while our debt, currency creation and unfunded liabilities go crazy is that we have a safety valve. When the Fed or ECB or Bank of Japan lowers interest rates to zero or buys up trillions of dollars of bonds with newly-created currency, a lot of that potentially-destabilizing liquidity flows elsewhere, mostly to emerging markets like Brazil, China and India – where it frequently causes booms and busts that, in relative terms, can dwarf those of the developed world. [DS: The currency instability causes a local demand for gold, which is counter to what the elites desire.] This is a seriously sweet deal for the US. When we’re liquefying the banking system to manage our excessive debts, those helpful emerging markets bear the destabilizing brunt of our exported inflation. When we decide to stop flooding the system with dollars, the emerging markets return the hot money to us to prop up our stocks and bonds. All the gain from easy money with little or none of the pain. “Emerging markets are in the eye of the storm,” said Stephen Jen at SLJ Macro Partners. “Their currencies are in grave danger. These things always overshoot.” Fears of Fed tightening have pushed borrowing costs worldwide to levels that could threaten global recovery. DS: It appears Bernanke's, "Well, we are thinking about tapering" comment is still reverberating around the world.
  • Bill Holter (Miles Franklin): Investors are now wondering "where is the Gold?" and they don't like the answers they are getting. They are "voting" with their financial transactions. Investors are going to "cash and carry" on their own. They are buying physical metal and asking for delivery, they are also either buying less or outright selling "paper" Gold products. This is creating a "two tier" market where the price of REAL Gold is higher than "paper" which represents Gold. THIS in essence is backwardation in itself and "premiums" paid for physical metal was an early warning. Investors want Gold NOW and in hand because they either do not trust or believe that promises of future Gold can or will be kept. This by the way is a self fulfilling prophecy because there is only so much Gold that can be had. The higher that current demand goes, the more that inventories will be depleted. The more that inventories are depleted the faster new demand to get it "now" becomes. Basically the recipe for a buying panic is evolving.
  • Bill Holter: If there was no Gold to be had at the mint or from refineries, if the mines just sat on and held their production, if your coin dealer could not source metal and no one was offering Gold for sale either privately or over the internet, what would an ounce of Gold be worth? The answer is "a lot". How much exactly no one knows but during a reset of price there will be no trading...until a new price balances out and coaxes enough sellers out of hiding to meet the buyers. You MUST be in position before this happens. 5 years, 6 months or even 1 second too late will equate to the rest of your lifetime!
  • Lawrence Williams (MineWeb): Over the weekend gold broke back up through the $1400 level and somehow the sentiment towards it seems to have changed. People are getting nervous about the general stock market, which has had a good run while gold had been falling. Now there is a realisation that the rising stock market may have vulnerabilities, despite the amount of money still being pumped into the economy through easing programmes – and talk of tapering now seems to be depressing the general stock market as much as gold – if not more so. How quickly attitudes can change in the markets. Momentum seems to be building in the gold and silver space. The East is still buying, and the West may have ceased its big gold ETF sell-off. Where is the gold and silver coming from to meet this big, and seemingly rapid, change in the market with demand for physical metal outstripping new supplies? Are the ‘wise men’ truly in the East still today? People at last seem to be coming to the realisation that paper gold is just paper and they need to get the real thing in their hands.
  • Peter Cooper (Arabian Money): Chinese imports of gold from Hong Kong shows an exponential curve. This is China taking advantage of the stupid manipulation of gold prices by central banks to accumulate more real assets at low prices. Why are the wise Chinese doing this? Simple really, they note that money printing by central banks is going to blow up the global monetary system and want to be invested in the one money that these guys cannot print. The 30-year bull market in US treasuries is history and now heading in the opposite direction. It makes excellent sense to be out of bonds in a falling market, and that is what the Chinese have been doing by buying gold. Now the rest of the world will begin to follow them. But really it is too late, the massive transfer of real money from West to East, or China at least not Japan, has already happened.
  • Tyler Durden: Asian Foreign Exchange bloodbath reignited with both stocks and bonds falling while gold rose. After a brief and hopeful respite, the Indonesian Rupiah has collapsed by 3.9% in the evening's session - the biggest drop in 5 years. A close second is the Indian Rupee which has colapsed back from its best day in 11 months with a 1.5% plunge. EM bonds are being sold with India and Indonesia leading the way along with Thailand which just joined the bear-market crowd in equity land as its stock market is down 20% from May highs (down 9 days in a row - the most since 1998). Stock markets are all lower with India (banks -2.5% today and 35% from highs) and Philippines worst. Gold remains 'held' under $1400 as the USD (Asian Index) jumps to its highest in 14 months.
  • Tyler Durden: The total amount of Greek government debt outstanding has grown so much over the last 15 months that it has retraced over 60% of the 'haircut'-based reduction and has jumped a stunning 14.5% in that period. As KeepTalkingGreece notes, this is despite three years of strict austerity measures, incredible taxes and a debt haircut of 53% (~100 billion Euros in March 2012).

•••••••••••

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

Quote:

Gold closed up $24.90 to $1417.90. (Comex closing time).

Silver was up 65 cents to $24.65 (Comex closing time).

In the access market today at 5:15 pm tonight here are the final prices:

Gold: $1415.60

Silver: $24.50

Monday, August 26th Gold and Silver Action (basis 1:30 PM EST)

http://harveyorgan.blogspot.com/2013/08/august-27gld-increases-gold.html

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

In silver

Quote:

The total silver Comex OI fell by a whopping 6701 contracts today as many refused to roll and play the paper silver game. Very strange!! The total of all Comex silver OI stands at 124,649 contracts. For the front month of August we have an OI reading of 3 for a loss of 8 contracts. We had 9 notices served upon our longs yesterday and thus we gained 1 contract or 5,000 additional silver ounces will stand for the August delivery month. The next big delivery month is September and here the OI fell by 6,461 contracts down to 29,104. The entire contraction in OI was in the September month which means nobody rolled.

In gold

Quote:

The total gold Comex open interest rose today by 1548 contracts from 379,907 up to 381,455 corresponding to a fall in price of gold to the tune of $2.70 on Monday. The front August contract month has an OI of 498 contracts down from Monday's level of 572 for a loss of 74 contracts. We had 72 contracts filed on Monday so we lost 2 contracts or 200 oz that will not be standing in this delivery month of August. The next non active delivery month for gold is September and here the OI fell by 38 contracts to 458. The next active delivery month is October and here the OI fell by 53 contracts down to 26,531. The biggest of all delivery months is the December contract month. The December OI rose by 1222 contracts from 226,602 up to 227,824.

Volume

In silver

Quote:

The estimated volume today was excellent coming in at 113,231 contracts.

The confirmed volume yesterday was very good at 82,116.

First day notice for the September contract is this Friday, with first day delivery notices commencing late Thursday night.

In gold

Quote:

The estimated volume today was fair at 158,271 contracts.

The confirmed volume yesterday was poor at 109,153. The OI for the front August month remains extremely high, at 458 contracts as we head into the final days in the delivery process for August.

Inventory Numbers

In silver:

Quote:

Today, we had tiny activity inside the silver vaults.

We had 0 dealer deposits and 0 dealer withdrawals.

We had 0 customer deposits:

Total customer deposit: nil oz

We had 2 customer withdrawals:

i) Out of CNT: exactly 1,000.000 oz

ii) Out of Scotia; 718,649.823

Total customer withdrawal: 719,949.823 oz

We had 1 adjustment today

i) Out of Delaware, 43,673.065 oz was adjusted out of the customer and this landed into the dealer account at Delaware.

Thus we have the following:

Registered (dealer) silver remains at: 39.318 million oz

Total of all silver: 163.210 million oz.

In gold:

Quote:

We have no activity in the Comex gold vaults today.

The dealer had 0 deposits and 0 dealer withdrawals today.

We had no customer deposits today.

Total customer deposits: nil oz

We had 0 customer withdrawals.

Total Customer withdrawals: nil oz

Today we had 0 adjustments.

Thus tonight with respect to JPMorgan gold inventory here is JPMorgan's Tuesday night inventory (same as Monday):

JPM dealer inventory remains constant tonight to: 286,485.185 oz or 8.91 tonnes (same)

JPM customer inventory remains constant tonight at: 167,056.491 oz or 5.196 tonnes

Today, 0 notices were issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 46 contracts of which 42 notices were stopped by JPMorgan dealer (house account).

The total dealer Comex gold rises slightly tonight to 768,797.799 oz or 23.91 tonnes of gold (due to the

adjustment at Manfra). The total of all Comex gold (dealer and customer) falls tonight to 7,002,716.313 oz

or 217.81 tonnes.

Tonight, we still have the continuing disturbing piece of news concerning the low dealer gold inventory for

our 3 major bullion banks(Scotia, HSBC and JPMorgan). These 3 dealer gold inventory remains constant

tonight at an extremely low of 19.14 tonnes.

i) Scotia: 183,508.994 oz or 5.707 tonnes

ii) HSBC: 154,555.673 oz or 4.80 tonnes

iii) JPMorgan: 286,485.185 oz or 8.91 tonnes

Total: 19.14 tonnes

Brinks dealer account which did have the lion's share of the dealer gold saw its inventory level rises

tonight to 129,679.910 oz or 4.03 tonnes. A few months ago they had over 13 tonnes of gold at its

registered or dealer account.

Delivery Notices

In silver:

Quote:

The CME reported that we had 2 notices filed for 10,000 oz today.

In gold:

Quote:

Today we had 46 notices served upon our longs for 4600 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:

To calculate what will stand for this non active delivery month of August, I take the number of contracts served thus far this month at 231 x 5,000 oz per contract = 1,155,000 oz to which we add the number of notices yet to be served upon: (3 notices - 2 notices today x 5,000 oz or 5,000 oz ). Thus in total we have 1,160,000 oz standing.

In summary:

231 contracts served x 5000 oz per contract (served) or 1,155,000 oz + 1 contracts x 5000 oz or 5,000 oz (to be served upon) = 1,160,000 oz.

We gained 1 contracts or 5,000 additional oz will stand for delivery in this August contract month.

In gold:

Quote:

In order to calculate what I believe will stand for delivery in July, I take the total number of notices served (3647) x 100 oz per contract to give us 364,700 oz already served this month to which I add the OI standing for August (3647 contracts) minus the number of notices served (46) = 452 notices x 100 oz per contract or 45,200. oz still to be served upon. The total standing is thus 409,900 oz

Thus we have the following gold ounces standing for metal:

3647 contracts served x 100 oz or 364,700 oz + (498 - 46 contracts x 100 oz) or 45,200 oz yet to be served upon = 409,900 oz or 12.75 tonnes of gold.

We lost 2 contracts or 200 oz of gold that will not stand for delivery in August.

Ladies and Gentlemen: we have a three-fold problem:

i) the total dealer inventory of gold remains constant but at a very dangerously low level of only 23.91 tonnes

ii) a) JPMorgan's customer inventory remains at 167,056.491 oz

ii) b) JPMorgan's dealer account remains constant tonight at 286,485.185 oz but all of that gold and them some is spoken for.

iii) the 3 major bullion banks have collectively only 19.14 tonnes of gold left in their dealer account.

Select Commodity Prices:

The Bloomberg Baltic Dry Index (BDI) was unchanged (London holiday). WTI August crude was 109.07 up a large 2.79. Brent closed at 115.08 up a ridiculous 4.35. The spread between Brent and WTI was 6.01, up 1.56. The 30 year US Treasury bond was down 0.0810 at 3.7030. The 10 year T-Note was down 0.0840 at 2.7210. This is the one that is the dollar killer. GOFO is negative for the 37th day in a row. It still looks like they are running out of bullion. The dollar was down 0.32 at 81.14. The PPT/Dow was 14,776.13 down 170.33, BELOW the very key round number of 15,000. Facebook was 39.64 down a large 1.70 (4.11%). Silver also closed up 0.19 at 24.52. The GSR was 57.75, down from a high of around 67. September wheat was down 4.00 at 650.60. December corn was down 14.20 at 486.20. October lean hogs were 86.600 up 0.575. Hogs are also in backwardation as far out as April 2014. September feeder cattle were down 0.800 at 155.450. September copper was 3.3285 up 0.0090. September natural gas was up 0.021 at 3.534. September coal is down 0.12 at 53.01.

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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Hat Tips: 14112
Posts: 2525
~~Harvey 28 Aug 2013

This is DayStar (DS) with the Wednesday Harvey Report

•••••••••••

News and Commentary

  • Harvey: It looks that our bankers are in trouble as they can only muster an attack on gold and silver in the non physical time zones. They are desperately trying to stop the exercising of paper contracts which could eventually end up seeking physical metal. The boys have again sent the signal to attack tomorrow as we witnessed a huge drop in the gold/silver mining shares despite the rise in gold and silver today. Judging from the data released by the CME tonight JPMorgan again has lost huge amounts of gold from its dealer account. October and December will surely be interesting on the delivery front.
  • Harvey on inventory: Tonight, the Comex registered or dealer inventory of gold falls badly. It is now well below the 1 million oz mark, at 725,029.62 oz or 22.55 tonnes . This is dangerously low especially when we are closing in on the final few days of the August delivery month. With no gold entering the dealer side it seems almost impossible for the bankers to settle upon longs once the December contract hits. The total of all gold at the Comex (dealer and customer) tonight rests just above the 7 million oz barrier resting at 7.002 million oz or 217.79 tonnes. JPMorgan's customer inventory rises tonight to 210,631.771 oz or 6.55 tonnes. It's dealer inventory falls badly to 242,909.905 oz (7.55 tonnes). The total of the 3 major gold bullion dealers( Scotia , HSBC and JPMorgan) in their Comex gold dealer accounts again falls badly in gold inventory tonight and its resting inventory is 18.057 tonnes of gold. Brinks continues to record a low of only 4.03 tonnes in its dealer account. The GLD reported no gain in its inventory tonight with a reading of 921.13 tonnes of gold. We had a big change in the silver inventory at the SLV of 1.447 million oz and thus the reading of the SLV inventory tonight is 340.820 million oz. Today we record our 38th consecutive negative trading for GOFO.
  • Mark O’Byrne (GoldCore): Gold and silver are higher in all currencies today. The rupee sharp falls continue and it fell the most in 20 years overnight and gold reached new record highs in the rupee. Safe haven demand has returned due to concerns that military action against Syria could lead to a war in the already very unstable Middle East which could result in much higher oil prices and impact the already fragile global economy. Markets have seen increased volatility and risk aversion as the US, the UK and France press ahead with plans for a 48 hour cruise missile attack on selected targets in Syria this week. Yesterday, Russia and China warned strongly against a U.S. led strike on Syria in response to the alleged use of chemical weapons, arguing it would be dangerous, irresponsible and could have “catastrophic consequences”. DS: Yes, there will eventually be war in the Middle East, but I don't think it will happen yet. The elites are running the show, and they will start the war and end it. They have been supporting Iran throughout the build up of the Iranian military in spite of the all the bluster and saber rattling. The elites need to complete their plan to secure the wealth of the nations in the sovereign bond crash that they will orchestrate. WWIII will not commence until they have the major western nations destitute and the bond wealth in the hands of the elites.
  • Jim Rogers: Astute investor,Jim Rogers has warned overnight in an interview with Tara Joseph of Reuters that oil and gold will go “much, much higher” due to “market panic” regarding Syria and the coming “end of free money”. this is the first time in recorded history that all major central banks have been flooding the market with artificial money printing at the same time. They've all been trying to debase their currencies at the same time. This has never happened in recorded history. When this ends its gonna be a huge mess. DS: Rogers is an insider and I presume he is informed as to what the plan is. His "market panic" as a result of the end of free money remark is very similar to Lindsey Williams remarks that the bond market will tank the instant Bernanke says, "Taper!"
  • Richard Russell: I suspect that silver has bottomed. Silver is dirt cheap compared with gold. One ounce of gold now buys around 60 ounces of silver! When you buy gold, you're aligned with JP Morgan. This bank has assumed a massive long position in gold [DS: so buy silver].
  • Steve St. Angelo (SRSrocco Report): The largest silver producing country in the world saw its oil production decline to the lowest level since 1995. Mexico who produced 162 million ounces of silver in 2012 is slated to increase this amount substantially by the end of the decade... that is, if they have the available energy to do so. The decline in Mexico's oil production will put severe pressure on its gold and silver mining industry. Fresnillo is forecasting its silver production to grow from 37 million oz in 2012 to 65 million oz by 2018. Furthermore, many other silver mining companies in the country also plan on growing their silver production by the end of the decade.
  • John Ing (via King World News): While there is a lot of paper gold, and this is what is in the process of being corrected in the market, the paper players are getting squeezed by the demand for physical. This has meant the price has only had one way to go because of the enormous demand for physical gold, and that’s been bad news for the bears who are short on the paper side. There was simply too much ‘paper’ that has been put out there, and now it is quite clear that there is not enough physical gold backing that up that paper. So my expectation is that over the next few months, every option expiry, as we approach each of them, we will see a short squeeze in the price of gold, and that means significantly higher prices as we move forward and the squeeze in gold accelerates.
  • Rick Rule (via King World News): I think what has happened in the futures market is that the damage that was going to be done by the unwinding of leveraged longs, has in fact already taken place. But I would add that it is a little bit worrying to me to see stronger institutional long positions in both gold and silver in the last 3 weeks. This would indicate that the same players which were forced to exit their positions because of the forced leverage unwind, are now going back into the gold and silver markets. But I am very encouraged by the fact that we had a war between the weak hands -- leveraged paper players, and strong hands -- which are the unleveraged physical buyers on a worldwide basis. The bottom line is there is absolutely no question at this point that the physical physical buyers won this war.”
  • Geoff Candy (MineWeb): South Africa's gold producers have made a final wage offer to employees. The two year offer also includes an increase in living-out/accommodation allowances in line with consumer inflation and an additional 1% increase in the basic wage by means of a 'gain-share' proposal. In a statement out late yesterday, solidarity said the offer comes "after Solidarity yesterday changed its demand for a 10% increase on the total cost to company package to an 8,3% increase on basic salary." All of us can see that the mining sector lacks the willingness to negotiate in good faith. So, in that way, it will require us to push them, so that we get them where we want them to be. And, if that is the case, we are ready to make the first push.
  • Bill Holter: This "setup for a moon shot" in the metals markets that I am talking about is already in place, and one must wonder what exactly will happen once (if) shots are fired. Will demand increase or decrease? How about demand for Treasuries, will that increase or decrease? What about supply? Will a war, and most likely upset financial markets make existing owners more likely or less likely to sell? And deliveries from Comex and LBMA, will more investors or less stand for delivery over the next couple of months? These are all legitimate questions and the common sense answers would be pretty simple in a "free market" which is something hard to find anywhere these days. In my opinion we will soon find out whether or not "control" of the markets is still held or if it has been lost.
  • Tyler Durden: From a weak open, the Indian Rupee has now plunged a stunning 3.88% today. This is the largest single-day drop in the Rupee's value since March 1993. The Indian people have lost 30% of their global purchasing power since March 2013 (though those who swapped their paper wealth to gold have seen their purchasing power rise 6% in Rupee terms). With Gold in Rupees having broken to a new all-time high, it would seem the government has little choice but to lease its gold (no matter how vehemently they deny the fact).
  • Zero Hedge: India's overall economy - at least that part that is reliant on foreign trade flows - is grinding to a halt. what is scariest is that so far the Indian Central Bank, the RBI has failed to reassure markets that it has anything up its sleeve until the RBI finally announced its first band aid solution in the form of this: "RBI introduces Forex Swap Window for Public Sector Oil Marketing Companies". while the RBI may have just bailed out its critical oil industry, if only for a few days or weeks, it means everyone else is left hung out to dry and the exodus of all INR positions into USD will only accelerate to a point where the USDINR may surge well over 70 when it reopens for trading, leading to an ever deteriorating currency collapse toxic loop (and one which most likely will inevitably result with the RBI leasing out its several hundreds tons of gold to those in greater need for physical). Which also means that the only winners are those who bought gold, or rather smuggled it thanks to numerous capital controls, as only their purchasing power has been preserved: gold in rupee terms is at an all time high.

•••••••••••

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

Quote:

Gold closed up $1.10 to $1419.90. (Comex closing time ). Silver was down 9 cents to $24.56 (Comex closing time).

In the access market today at 5:15 pm tonight here are the final prices:

Gold: $1417.80

Silver: $24.39

Tuesday, August 27th Gold and Silver Action (basis 1:30 PM EST)

http://harveyorgan.blogspot.com/2013/08/august-27gld-increases-gold.html

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

In silver

Quote:

The total silver Comex OI fell by a whopping 6701 contracts today as many refused to roll and play the paper silver game. Very strange!! The total of all Comex silver OI stands at 124,649 contracts. For the front month of August we have an OI reading of 3 for a loss of 8 contracts. We had 9 notices served upon our longs yesterday and thus we gained 1 contract or 5,000 additional silver ounces will stand for the August delivery month. The next big delivery month is September and here the OI fell by 6,461 contracts down to 29,104. The entire contraction in OI was in the September month which means nobody rolled.

In gold

Quote:

The total silver Comex OI fell by another whopping 2378 contracts today as many refused to roll and play the paper silver game. The total of all Comex silver OI stands at 122,271 contracts.During the past several weeks, we have seen silver rise from the mid 18 dollar range to over $24.00 and yet OI contracted. Thus the rise in OI is surely not the speculators. For the front month of August we have an OI reading of 1 for a loss of 2 contracts. We had 1 notices served upon our longs today and thus we neither gained nor lost any contracts in the August delivery month. The next big delivery month is September and here the OI fell by 10,874 contracts down to 18,230.

Volume

In silver

Quote:

The estimated volume today was excellent coming in at 135,577 contracts.

The confirmed volume yesterday was also very good at 128,064. First day notice for the September contract is this Friday, with first day delivery notices commencing late tomorrow night.

In gold

Quote:

The estimated volume today was good at 174,322 contracts.

The confirmed volume yesterday was also good at 176,994. The OI for the front August month remains extremely high, at 428 contracts as we head into the final days in the delivery process for August.

Inventory Numbers

In silver:

Quote:

Today, we had tiny activity inside the silver vaults.

We had 0 dealer deposits and 0 dealer withdrawals.

We had 2 customer deposits:

i) Into Brinks: 961,373.710

ii) Into CNT: 3000.10 oz

Total customer deposit: 964,373.810 oz

We had 4 customer withdrawals:

i) Out of CNT: 30,042.70 oz

ii) Out of Scotia; 345,409.60 oz

iii) Out of HSBC: 60,044.210 oz

iv) Out of Delaware: 2,978.45 oz

Total customer withdrawal: 438,474.96 oz

We had 0 adjustments today.

Thus we have the following:

Registered (dealer) silver remains at: 39.318 million oz

Total of all silver: 163.736 million oz.

In gold:

Quote:

We have small activity in the Comex gold vaults today.

The dealer had 0 deposits and 0 dealer withdrawals today.

We had no customer deposits today.

total customer deposits: nil oz

We had 1 customer withdrawal:

i) Out of Brinks: 610.85 oz

Total Customer withdrawals: 610.85 oz

Today we had 2 adjustments:

i) Out of JPMorgan vaults a huge: 43,575.28 oz was adjusted out of the dealer and into the into customer account. This amount will no doubt we used up in the settling process.

ii) Out of HSBC vaults; 192.90 oz was adjusted out of the dealer and this landed into the customer account of HSBC

Thus tonight with respect to JPMorgan gold inventory here is JPMorgan's Tuesday night inventory:

JPM dealer inventory falls badly tonight to: 242,909.905 oz or 7.55 tonnes

JPM customer inventory rises tonight to: 210,631.771 oz or 6.55 tonnes

Today, 0 notices were issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 255 contracts of which 241 notices were stopped (received) by JPMorgan dealer ( house account).

The total dealer Comex gold falls badly tonight to 725,029.62 oz or 22.55 tonnes of gold . The total of all Comex gold (dealer and customer) falls slightly tonight to 7,002,105.463 oz or 217.79 tonnes.

Tonight, we still have the continuing disturbing piece of news concerning the low dealer gold inventory for our 3 major bullion banks(Scotia, HSBC and JPMorgan). These 3 dealer gold inventory falls tonight to an extremely low 18.057 tonnes:

i) Scotia: 183,508.994 oz or 5.707 tonnes

ii) HSBC: 154,362.773 oz or 4.80 tonnes

iii) JPMorgan: 242,909.905 oz or 7.55 tonnes

Total: 18.057 tonnes

Brinks dealer account which did have the lion's share of the dealer gold saw its inventory level remain constant tonight at 129,679.910 oz or 4.03 tonnes. A few months ago they had over 13 tonnes of gold at its registered or dealer account.

Delivery Notices

In silver:

Quote:

The CME reported that we had 1 notices filed for 5,000 oz today.

In gold:

Quote:

Today we had 255 notices served upon our longs for 25,500 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:

To calculate what will stand for this non active delivery month of August, I take the number of contracts served thus far this month at 232 x 5,000 oz per contract = 1,160,000 oz to which we add the number of notices yet to be served upon: (1 notices - 1 notices today x 5,000 oz or nil ). Thus in total we have 1,160,000 oz standing.

In summary:

232 contracts served x 5000 oz per contract (served) or 1,160,000 oz + nil (to be served upon) = 1,160,000 oz.

This completes the August silvery delivery month.

In gold:

Quote:

In order to calculate what I believe will stand for delivery in July, I take the total number of notices served (3902) x 100 oz per contract to give us 390,200 oz already served this month to which I add the OI standing for August (428 contracts) minus the number of notices served (255) = 173 notices x 100 oz per contract or 17,300. oz still to be served upon. The total standing is thus 407,500 oz

Thus we have the following gold ounces standing for metal:

3902 contracts served x 100 oz or 390,200 oz + (498 - 255 contracts x 100 oz) or 17,300 oz yet to be served upon = 407,500 oz or 12.67 tonnes of gold

we lost 14 contracts or 1400 oz of gold that will not stand for delivery in August

Ladies and Gentlemen: we have a three-fold problem:

i) the total dealer inventory of gold falls tonight to a very dangerously low level of only 22.51 tonnes

ii) a) JPMorgan's customer inventory rises to 210,631.771 oz but that will lower once delivery notices are served upon this inventory.

ii) b) JPMorgan's dealer account falls badly tonight to 242,909.905 oz but all of that gold and them some is spoken for.

iii) the 3 major bullion banks have collectively only 18.057 tonnes of gold left in their dealer account (JPMorgan, HSBC, Scotia).

Select Commodity Prices:

The Bloomberg Baltic Dry Index (BDI) was down 1.97% at 1146.00. WTI August crude was 109.53 up 0.46. Brent closed at 116.61 up 1.53. The spread between Brent and WTI was 7.08, up 1.07. The 30 year US Treasury bond was up 0.0510 at 3.7540. The 10 year T-Note was up 0.0610 at 2.7820. This is the one that is the dollar killer. GOFO is negative for the 38th day in a row. It still looks like they are running out of bullion. The dollar was up 0.32 at 81.46. The PPT/Dow was 14,824.51 up 48.38, BELOW the very key round number of 15,000. Facebook was 40.55 up 0.91 (2.29%). Silver closed down 0.13 at 24.39. The GSR was 58.13 up 0.38, but down from a high of around 68. September wheat was down 4.20 at 646.40. December corn was down 5.40 at 480.60. October lean hogs were 86.050 down 0.550. Hogs are also in backwardation as far out as April 2014. September feeder cattle were up 0.500 at 155.950. September copper was 3.3015 down 0.0270. September natural gas was up 0.033 at 3.567. October coal is down 1.09 at 51.87.

Thank you for reading the Harvey Report. There is much more on Harvey's blog.

http://harveyorgan.blogspot.com

Goooood day!

•••••••••••••••••

DayStar
DayStar's picture
Offline
Joined: 06/14/2011
Hat Tips: 14112
Posts: 2525
~~Harvey 29 Aug 2013

This is DayStar (DS) with the Thursday Harvey Report

•••••••••••

News and Commentary

Deviant Investor: The world has been living with unbacked paper currencies since Nixon’s default in August of 1971. Since then we have clear evidence that:

  1. Governments do not maintain the value of their unbacked paper currencies.
  2. Purchasing power declines.
  3. Debts and unfunded liabilities increase much more rapidly than the underlying economy which must support those debts.
  4. Expensive wars and social programs accelerate the process.
  5. Political promises to balance the budget, put the fiscal house in order, and live within our means are good theater, but little more.
  • Harvey: The Comex registered or dealer inventory of gold falls slightly. It is now well below the 1 million oz mark, at 724,934.269 oz or 22.54 tonnes. JPMorgan's customer inventory remains constant tonight to 210,631.771 oz or 6.55 tonnes. It's dealer inventory also remains constant at 242,909.905 oz (7.55 tonnes). The total of the 3 major gold bullion dealers( Scotia , HSBC and JPMorgan) in its Comex gold dealer account again falls slightly in gold inventory tonight and its resting inventory is 18.054 tonnes of gold. Brinks continues to record a low of only 4.03 tonnes in its dealer account.
  • Mark O'Byrne (Goldcore): Gold fell from a three month high, its first fall in six days on profit taking after the likelihood of U.S. military strikes on Syria, at least in the short term, diminished. Geopolitical risk, emanating from the Middle East in particular, has been underestimated for some time. Since the alleged chemical weapons attack on August 21, oil has risen sharply and gold has received a safe haven bid.
  • Tom Fitzpatrick (Citigroup): "Silver is in a strong uptrend and will likely outperform gold as the gold silver ratio will drop from its current level at 58.1" and “As the gold/silver ratio plummets near 30, this would also suggest a silver price above $US100” and “So we believe we are back into that track where gold is the hard currency of choice, and we expect for this trend to accelerate going forward. We still believe that in the next couple of years we will be looking at a gold price of around $US3,500.“ DS: That was my thinking too. Gold reacted the way it's supposed to for this crisis.
  • GoldCore: Despite the recent gains, gold remains down 16% this year and this is leading to contrarian buyers buying gold at what they still see as discount prices. Gold appears to have bottomed in June and is rising due primarily to strong physical demand for jewelry, coins and bars globally. Gold is heading for a second monthly gain which is very important technically and from a momentum perspective.
  • GoldCore: Muenze Oesterreich AG, the Austrian mint that makes Philharmonic coins, increased sales this year after tumbling gold prices fueled demand. Sales of gold coins from January to July rose 79 percent from a year earlier to 383,500 ounces, according to data e-mailed by the Vienna-based mint, almost matching those for the whole of last year of 400,000 ounces. Mints saw sales jump after the price of gold, 15 percent lower this year, plunged into a bear market in April. Surging demand for jewelry, coins and bars in Asia helped prices rally as much as 21 percent since the end of June. “As soon as the gold price went down, many individual buyers thought: ‘Now it’s the best time for us to get into the gold market,’” Andrea Lang, the mint’s marketing and sales director, said by phone yesterday. “As soon as there’s a movement in the gold price, people are interested in the gold market.”
  • GoldCore: Another positive factor for the gold market is the very delicate situation regarding peak gold and supply from South Africa. In what could be described as a provocative move, gold mining companies in South Africa are considering locking out workers. The aggressive move is being considered if labour unions fail to accept a revised pay offer. The four unions in the gold industry have until 12 p.m. local time today to accept an offer from the chamber, which represents gold mining companies, to increase the wages of some categories of workers by 6.5%. Workers in the automotive, construction and aviation industries are already on strike to demand pay increases in excess of the considerable inflation rate of 6.3% in July.
  • The chance of a South African gold strike is ‘highly likely’ said Solidarity Union General Secretary Gideon du Plessis, in a speech in Johannesburg.
  • Liam Vaughan & Gavin Finch (Bloomberg) In the space of 20 minutes on the last Friday in June, the value of the U.S. dollar jumped 0.57 percent against its Canadian counterpart, the biggest move in a month. Within an hour, two-thirds of that gain had melted away. The same pattern -- a sudden surge minutes before 4 p.m. in London on the last trading day of the month, followed by a quick reversal -- occurred 31 percent of the time across 14 currency pairs over two years, according to data compiled by Bloomberg. For the most frequently traded pairs, such as euro-dollar, it happened about half the time, the data show. The recurring spikes take place at the same time financial benchmarks known as the WM/Reuters (TRI) rates are set based on those trades. Now fund managers and scholars say the patterns look like an attempt by currency dealers to manipulate the rates, distorting the value of trillions of dollars of investments in funds that track global indexes.
  • James Turk (via King World News): Both gold and silver have been showing tremendous strength, Eric. With each passing day, the odds improve that a major low was made in June. Therefore, we have to set our sights on much higher gold and silver prices in the weeks and months ahead. What continues to amaze me is that gold is still in backwardation. It is truly stunning considering that gold has remained in backwardation even though the price has jumped from $1,200, when the backwardation started, to $1420 today. That's an 18% jump in price, and it occurred in only 37 trading days. I have no other way to express this development other than to say that it is truly historic, Eric. The fact that gold remains in backwardation is remarkable. Everybody needs to be paying attention to this because the jump in price has not induced enough holders of physical metal to sell. This shows that people are afraid of paper. They want a tangible asset because they know and understand the protection provided by physical gold and silver.
  • Grant Williams (via King World News): We have seen some real weakness (in stock markets) in Asia. We have a lot of the smaller markets in Asia really getting pounded. So far this year, the Bombay indices are down almost 30% in currency-adjusted terms, with the fall in the rupee. We also have the Indonesian stock market down 24%, and Thailand down 14%. In dollar terms we are seeing some real plunges. Thailand has fallen 20% in the last month. This is all capital flight out of Asia. Asian governments are very, very concerned about this. This is how the Asian currency crisis started in 1998. Unless they can get a handle on this fairly quickly, these 2% falls will become 5% plunges, and then 8% nosedives. Pretty soon they will have a real crisis on their hands.
  • Grant Williasm (KWN): Also the old price-suppression trick of bashing the gold price at option expiration is getting harder as the supply of real metal gets tighter. There is such a tight supply of physical gold that any kind of ‘gaming of the system’ you can play around options expiry is very limited now. This is a big change in the gold market. The reasons for this is there are plenty of people who understand the tightness in supply, and these people will buy into any weakness and stand for delivery. This will force the shorts into sending them physical gold. So, suddenly this little game that’s been going on around Non-Farm Payrolls and option expiries, those games are very, very difficult to play now. You’ve got to be very nimble now if you are shorting. If you miscalculate there is going to be h*** to pay.
  • Keith Barron (via King World News): Despite some pullbacks, overall both the gold and silver markets have been moving up quite nicely. All of your guests on KWN predicted this would happen because we knew the precious metals markets were deeply oversold. We also knew the cost to buy both gold and silver had declined below the median cost of production. You can never have this situation going on for very long (metal below cost of production) because it puts the producers out of business. But what we have really seen over the last couple of months is a massive amount of physical gold moving out of the Comex and LBMA systems, out of the ETFs, and this gold has migrated to the strong hands in the East. The rupee hit an all-time low against the U.S. dollar. But nobody wants to hold dollars in India either, so as I said they are buying as much gold and silver as they can get their hands on. We have also spoken about the thriving black market in India because of the enormous smuggling of gold that is taking place into the country.
  • John Hathaway: The more suspicion there is of the Comex, the LBMA, and banks with structured notes, this lack of trust on the part of entities with paper claims means that owners of gold want to get their hands on their physical gold and get it out of the system. In other words, trust is breaking down in the system. And because you have this huge pyramid of credit, which is based on a very small amount of physical gold, this run on physical gold can spread very quickly. In a way it can be like a run on the gold bank. We have seen a very slow version of this throughout the summer, but if that should pick up steam for any reason, these are the exact mechanics of why gold could spike to the upside far more than anyone is betting on right now. The bottom line is that the situation in the gold market is so precarious right now that if entities demand their physical gold be delivered, and they put additional pressure on these intermediaries (Comex, the LBMA and various banks), we will see some extraordinary fireworks to the upside in the gold market.
  • Mike Kosares (USAGold.com): Currency and debt collapses are probably bigger threats to the world economy than anything involving Syria. Problems with emerging nations and especially derivatives could cause havoc to the west and thus a bigger threat than even Syria.
  • Suvashree Dey Choudhury (Reuters): We will start a pilot project among some banks where we will allow them to buy back gold from individual households," the source, an official familiar with the central bank's gold policymaking, said. "This will start soon, we have discussed (it) with banks." The RBI will ask the banks to buy back jewellery, bars and coins for rupees. Lenders will have to offer better rates than pawn shops and jewellers to lure sellers. Any talk of using the country's gold to help meet India's international obligations revives memories of a 1991 balance of payments crisis - when India flew 67 tonnes of gold to Europe as collateral for a loan to avoid a sovereign debt default.
  • Bill Holter (Miles Franklin): We also watched the price of oil break through $100 to the upside amidst decent supply and demand that was surely not even close to off the charts. Now it has breached $110 on the upside based on the fears of a Syrian conflict. Both of these, higher interest rates and higher oil prices will hit the common man harder than anything except maybe food prices. The Brazilian Real, Indian Rupee, South African Rand, Indonesian Rupiah and others have outright cratered in purchasing power over (and from before) this last 60 days. So the "squeeze" for the common man is already on and has been in the emerging economies, now as interest rates and oil go higher, the squeeze will intensify...and spread to those of us in the "leading economies". Higher interest rates and higher oil from here will only deepen the recession and turn it into a full blown DEPRESSION! In any case, Syrian conflict or no, interest rates and oil have already risen here in the U.S.. $5+ per gallon of gasoline and 5% mortgage rates will bite into our standard of living hard no matter how sugar coated or outright lied about the "official" economic numbers are that are reported. If you think that the last 5 years have felt like a "squeeze", get ready to tighten your belts some more because even without a disastrous World War our standard of living is about shrink!
  • Jim Willie: Syria is about the last gasp for the Petro-Dollar. The focus is Pipeline politics and the eclipse of OPEC. Coming to a world near you — the NatGas Coop led by Gazprom blackmail to Europe and Great Britain. the key to the future (the margin of new power) is NatGas Coop example: Israeli Tamar floating platform from which the Izzys committed surplus natgas to Gazprom for the Western Europe market. not 5% of Americans comprehend the defacto Petro-Dollar standard. The fall of the Saudi regime is guaranteed eventually for the Saudis cannot play both sides (US & Russia) successfully. Syria is the last line of defense for the USDollar.

•••••••••••

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

Quote:

Gold closed down $7.00 to $1412.90. (Comex closing time ).

Silver was down 47 cents to $24.56 (Comex closing time).

In the access market today at 5:15 pm tonight here are the final prices:

Gold: $1407.40

Silver: $23.89

Wednesday, August 28th Gold and Silver Action (basis 1:30 PM EST)

http://harveyorgan.blogspot.com/2013/08/august-292013gld-remains-constantComex.html

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

In silver

Quote:

The total silver Comex OI fell by another whopping 2085 contracts today as many refused to roll and play the paper silver game. The total of all Comex silver OI stands at 120,186 contracts. During the past several weeks, we have seen silver rise from the mid 18 dollar range to over $24.00 and yet OI contracted. Thus the rise in OI is surely not the speculators. The front month of August is now off the board. The next big delivery month is September and here the OI fell by 10,658 contracts down to 7,572.

In gold

Quote:

The total gold Comex open interest fell today by 1756 contracts from 384,102 down to 382,346 corresponding to a rise in price of gold to the tune of $1.10 on Wednesday. The front August contract month is now off the board. You will recall that we had 173 notices left to be served upon and that was exactly what was issued. The first lot came late last night where 164 notices were served upon our longs, of which 154 notices were stopped or received by JPMorgan. The second lot came early this morning, whereby 9 notices were issued, of which 8 were stopped by JPMorgan. It seems that almost all of the issuance is going to JPM ( i.e. stopped). The next non active delivery month for gold is September and here the OI fell by 103 contracts to 304. The next active delivery month is October and here the OI fell by 1682 contracts down to 26,124. The biggest of all delivery months is the December contract month. The December OI fell by 287 contracts from 227,704 down to 227,417.

Volume

In silver

Quote:

The estimated volume today was good coming in at 82,499 contracts.

The confirmed volume yesterday was also very good at 153,875 but you have to consider the rolls.

First day notice for the September contract is tomorrow, with first day delivery notices commencing late tonight.

In gold

Quote:

The estimated volume today was fair at 149,242 contracts.

The confirmed volume yesterday was very good at 185,213.

Inventory Numbers

In silver:

Quote:

Today, we had tiny activity inside the silver vaults.

We had 0 dealer deposits and 0 dealer withdrawals.

We had 1 customer deposits:

i) Into HSBC: 658,320.285 oz

Total customer deposit: 658,320.285 oz

We had 2 customer withdrawals:

i) Out of Scotia; 255,852.70 oz

ii) Out of Delaware: 4993.63 oz

Total customer withdrawal: 260,846.33 oz

We had 0 adjustments today

Thus we have the following:

Registered (dealer) silver remains at: 39.318 million oz

Total of all silver: 164.133 million oz.

In gold:

Quote:

We have small activity in the Comex gold vaults today.

The dealer had 0 deposits and 0 dealer withdrawals today.

We had no customer deposits today.

Total customer deposits: nil oz

We had 2 customer withdrawals

i) Out of Brinks: 32.15 oz

ii) Out of Scotia: 482.25 oz

Total Customer withdrawals: 514.40 oz

Today we had 1 adjustment:

i) Out of Scotia vaults : 95.35 oz was adjusted out of the dealer and into the into customer account at Scotia

Thus tonight with respect to JPMorgan gold inventory here is JPMorgan's Thursday night inventory: (same)

JPM dealer inventory remains constant tonight at: 242,909.905 oz or 7.55 tonnes

JPM customer inventory remains constant tonight at: 210,631.771 oz or 6.55 tonnes

Today, 0 notices were issued from JPMorgan dealer account and 45 notices were issued from their client or customer account. The total of all issuance by all participants equates to 173 contracts of which 162 notices were stopped (received) by JPMorgan dealer ( house account).

The total dealer Comex gold falls slightly tonight to 724,934.269 oz or 22.548 tonnes of gold . The total of all Comex gold (dealer and customer) falls slightly tonight to 7,001,591.463 oz or 217.77 tonnes.

Tonight, we still have the continuing disturbing piece of news concerning the low dealer gold inventory for our 3 major bullion banks(Scotia, HSBC and JPMorgan). These 3 dealer gold inventory falls tonight to an extremely low 18.054 tonnes.

i) Scotia: 183,413.6444 oz or 5.704 tonnes

ii) HSBC: 154,362.773 oz or 4.80 tonnes

iii) JPMorgan: 242,909.905 oz or 7.55 tonnes

total: 18.054 tonnes

Brinks dealer account which did have the lions share of the dealer gold saw its inventory level remain constant tonight at 129,679.910 oz or 4.03 tonnes. A few months ago they had over 13 tonnes of gold at its registered or dealer account.

Delivery Notices

In silver:

Quote:

The CME reported that we had 1 notices filed for 5,000 oz today.

In gold:

Quote:

Today we had 173 notices served upon our longs for 17,300 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:

To calculate what will stand for this non active delivery month of August, I take the number of contracts

served thus far this month at 232 x 5,000 oz per contract = 1,160,000 oz to which we add the number of

notices yet to be served upon: (1 notices - 1 notices today x 5,000 oz or nil ). Thus in total we have

1,160,000 oz standing.

In summary:

232 contracts served x 5000 oz per contract (served) or 1,160,000 oz + nil (to be served upon) = 1,160,000

oz.

This completes the August silvery delivery month.

In gold:

Quote:

In order to calculate the final standings for delivery in August, I take the total number of notices served (4075) x 100 oz per contract to give us 407,500 oz served this month and since there is no other contracts forthcoming, that should be the total standing.

Thus we have the following gold ounces standing for metal:

4073 notice x 100 oz per contract = 407,500 oz standing or 12.67 tonnes of gold

we neither gained nor lost any contracts today.

Ladies and Gentlemen: we have a three-fold problem:

i) the total dealer inventory of gold falls slightly tonight to a very dangerously low level of only 22.54 tonnes

ii) a) JPMorgan's customer inventory remains constant at 210,631.771 oz but that will lower once delivery notices are served upon this inventory.

ii) b) JPMorgan's dealer account remains constant at 242,909.905 oz but all of that gold and them some is spoken for.

iii) the 3 major bullion banks have collectively only 18.054 tonnes of gold left in their dealer account.(JPMorgan, HSBC, Scotia)

Select Commodity Prices:

The Bloomberg Baltic Dry Index (BDI) was down 0.87% at 1136.00. WTI August crude was 108.20 down 1.33. Brent closed at 114.59 down 2.02. The spread between Brent and WTI was 6.39, down 0.69. The 30 year US Treasury bond was down 0.0510 at 3.7030. The 10 year T-Note was down 0.0310 at 2.7510. This is the one that is the dollar killer. GOFO is negative for the 39th day in a row. It still looks like they are running out of bullion. The dollar was up 0.32 at 81.46. The PPT/Dow was 14,840.95 up 16.44, BELOW the very key round number of 15,000. Facebook was 41.28 up 0.73 (1.81%). Silver closed down 0.52 at 23.87. The GSR was 58.95 up 0.82 silvers-to-gold, but down from a high of around 68. September wheat was down 5.20 at 641.20. December corn was up 0.60 at 481.40. October lean hogs were 87.250 up 1.200. Hogs are also in backwardation as far out as April 2014. September feeder cattle were up 0.450 at 156.450. September copper was 3.2440 down 0.0575. September natural gas was up 0.036 at 3.618. October coal is down 0.27 at 51.58.

Thank you for reading the Harvey Report. There is much more on Harvey's blog.

http://harveyorgan.blogspot.com

Goooood day!

•••••••••••••••••

DayStar
DayStar's picture
Offline
Joined: 06/14/2011
Hat Tips: 14112
Posts: 2525
~~Harvey 31 Aug 2013

This is DayStar (DS) with the Saturday Harvey Report

•••••••••••

Commitment of Traders Report

Gold: From a commercial standpoint the COT was hugely bearish, as they went net short by 19,973 contracts.

Silver: From a commercial standpoint still bearish as they went net short by 1100 contracts.

News and Commentary

  • Dr. Paul Craig Roberts (via King World News): The economic problem in the US really doesn’t have a solution at this point. It’s gone on too long. I think this problem will resolve itself in a crisis. You could see (a mass) exit from the dollar. So I think the country is facing a series of shocks. I think it probably starts this fall/winter, and next year will be a dismal year in terms of economic history. The Americans deregulated and destroyed their own financial system. It will have repercussions worldwide because, to varying degrees, every part of the world is connected to the American financial system. The ones most connected will be hurt the worst. I think the results of the crash will fall hardest on the United States and Europe. So it will be Western civilization which is simply moved aside, and is no longer the #1 arbiter and decision-maker (in the world). They (countries in the West) have brought failure to themselves. They, the United States and Europe, are going to become 2nd world, and 3rd world countries. When you’ve got 3 or 4 American banks with derivative exposure that is three of four times larger than all of the wealth in the world combined, these bets can’t be covered. No amount of money can be printed to bail that out.
  • Harvey: Ed Stoddard of Reuters discusses the strike vote at the South African mining sector where 2/3 of the entire countries miners have voted to go on strike this Tuesday. This will take a lot of gold off the grid. DS: I think the hand of the globalists is working in this miner strike situation as a means to take fiat out of the hands of miners and force a fire sale of the miners, but it occurred to me that on the other hand labor has more sense than to sell metal at a loss and is forcing the hand of management to do a sensible thing that they have thus far refused to do, and that is take the gold out of the hands of the elites and make the price go up. Maybe management secretly acknowledges the problem and will use the labor unrest as an excuse to shut down and stop mining at a loss without their elitist enforcers breaking any kneecaps. What a tangled web we weave!
  • Harvey: The Comex registered or dealer inventory of gold falls slightly. It is now well below the 1 million oz mark, at 702,488.014 oz or 21.85 tonnes . The total of all gold at the Comex (dealer and customer) tonight rests just above the 7 million oz barrier resting at 7.013 million oz or 218.14 tonnes. JPMorgan's customer inventory rises tonight to 229,463.65 oz or 6.857 tonnes. It's dealer inventory falls badly to 233,078.026 oz (7.249 tonnes). The total of the 3 major gold bullion dealers (Scotia , HSBC and JPMorgan) in its Comex gold dealer account again falls slightly in gold inventory tonight and its resting inventory is 17.361 tonnes of gold. Brinks continues to record a low of only 4.03 tonnes in its dealer account. The GLD reported no gain in its inventory tonight with a reading of 921.13 tonnes of gold. We had no change in the silver inventory at the SLV and thus the reading of the SLV inventory tonight remains at 340.820 million oz. Today, only the one-month GOFO is negative.
  • Mark O'Byrne (GoldCore): Gold’s recent gains are primarily due to very strong physical demand globally and increasing supply issues, particularly in the LBMA gold bullion market. Syria and the increasing geopolitical uncertainty in the Middle East are creating real oil price and inflation risk which has contributed to the increased bullion buying in recent days. Late summer, autumn and early New Year are the seasonally strong periods for the gold market due to robust physical demand internationally. This is the case especially in Asia for weddings and festivals and into year end and for Chinese New Year when China stocks up on gold. Gold and silver often see periods of weakness in the summer doldrum months of May, June and July. Now we move into September which is, along with November, one of the strongest months to own gold. Short positions held by hedge funds in the gold and silver markets remain very high and the stage is now set for a significant short squeeze which should propel prices higher in the coming months. Arguably we are in the early stages of this short squeeze. Hedge funds have consistently been caught wrong footed at market bottoms for gold and silver in recent years and high short positions have been seen near market bottoms, prior to rallies in gold and silver. Conversely, the smart speculative money, bullion banks such as JP Morgan have reduced their short positions and are now long in quite a significant way and positioned to profit from higher prices in the coming weeks and months. Near zero interest rates and bond buying are set to continue for the foreseeable future. Precious metals will only be threatened if there is a sustained period of rising interest rates which lead to positive real interest rates. This is not going to happen anytime soon as it would lead to an economic recession and possibly a severe Depression. China gold purchases surged 54% to 706.4 metric tons in the first half of 2013 from the first half of 2012 - a year of record demand in China.
  • GoldCore on the Long Term Fundamentals: There is a serious risk of recessions in major industrial nations with much negative data emanating from the debt laden countries. There is the real risk of conflict and consequent affect on oil prices and global economy. There is a real risk of another 'Lehman Brothers' moment and seizing up of the global financial system. The massive risk from the unregulated derivatives remains unappreciated. Monetary risk or currency risk remains high as the policy response of the Federal Reserve, the ECB, the Bank of England and the majority of central banks to the risks mentioned above continues to be to be ultra loose monetary policies, zero interest rate policies (ZIRP), negative interest rate policies (NIRP), deposition confiscation or “bail-ins”, the printing and electronic creation of a tsunami of money and the debasement of currencies. Absolutely nothing has changed regarding the fundamentals driving the gold market. We are confident that gold, and indeed silver, are still in long term secular bull markets likely of a 15 to 20 year duration. DS: GoldCore is looking at a bull market as if gold and silver were strictly commodities. This ignores their intrinsic monetary value.
  • Egon von Greyerz (via KWN): If within the next 12 months gold reaches $2,500 and silver $70, in inflationary terms that will be absolutely nothing. The 1980 gold peak of $850 would today be in excess of $7,000 (when adjusted using real inflation). And silver, which peaked at $50 in 1980, would now be over $400. We must also bear in mind that in 1980 the U.S. federal debt was $1 trillion, and today it’s $17 trillion. Total world debt was probably around $10 trillion to $15 trillion in 1980, and today it’s $250 trillion. So the exponential growth in debt will clearly lead to exponential growth in the price of real money, which of course is gold. Gold surging, which it will do, means a world economy that is crashing. This is virtually guaranteed to happen. I know that most King World News readers and listeners will be well protected with an important part of their assets in gold, but they must also understand what kind of world in which they will be living. When gold goes to $10,000, $50,000, or, in a hyperinflationary collapse, maybe even 100 trillion dollars, that will be a world which will be much less pleasant to live in. In the West, much less than 1% of the population will have enough gold to protect themselves financially. To be part of that minority is likely to be very beneficial. But to be wealthy when everyone around you is not can have its own dangers.
  • Harvey: Two thirds of of all South African miners will go on strike this Tuesday. South Africa will lose 35 million usa dollars per day of lost production. The companies have offered a 6.5% wage increase and the workers want 60%. The union representing the other 1/3 are also dissatisfied and they may go on strike shortly.
  • Tyler Durden: In early April, the status quo was exuberant when none other than Goldman Sachs issued a "sell" on the barbarous relic. In Q2, Goldman Sachs added a stunning (and record) 3.7 million 'shares' of GLD. As Paulson dumped his GLD, Goldman lapped it up to become the ETF's 7th largest holder. Thank you Goldman, we can always rely on you!
  • Tyler Durden: Reuters reported that the regime which as we reported is behind the entire conflict in Syria (hint: nat gas) has raised its level of military alertness in anticipation of a possible Western strike in Syria, sources familiar with the matter said on Friday. Saudi Arabia's defense readiness, their version of DefCon, has been raised to "two" from "five", a Saudi military source who declined to be named told Reuters. "One" is the highest level of alert. "It is a must, no one knows what will happen," he said. And so all those who thought there would be no war and sold off gold and crude, are suddenly caught short. More curious is why Saudi is leaking this information to the media: another provocation, and an attempt to accelerate a conflict which is rapidly fizzling? Remember: for Saudi Arabia "no war" is the worst possible outcome. If so, expect more mysterious "chemical attacks" in the coming hours and days to cement the Western resolve to blow up Assad. DS: The fact that O finds himself alone may indicate that he has gone off the reservation. Donald Rumsfield, undoubtedly a globalist insider, said, "There really hasn’t been any indication from the administration as to what our national interest is with respect to this particular situation." The "national interest" is the Saudis', and O is a Saudi man. Remember him bowing to the king? Remember O's agencies spiriting the Saudi prince away from Boston after an urgent phone call from the Saudis? The recent Saudi action appears to me to be geared toward provoking a fizzling situation as Tyler said and urging O to act and not wimp out on them. Remember a month ago Prince Bandar warned that in light of the course of the Russian-Saudi talks, things were likely to intensify in the region, especially in the Syrian arena. The Saudis want to get rid of Assad and get a gas pipeline through the region, ostensibly to protect the petrodollar. More likely they are merely construting one of the poles of Hegelian dialectic for WWIII.
  • Jeff Nielson (Bullion Bulls Canada): Four hundred years of economic theory (and economic history) tell us that oligopolies (in any form) are totally parasitic behemoths, which should never be allowed to exist in any legitimate economy. These behemoths need to be scaled-down on grounds of pure economic efficiency and morality as well as economic theory. Breaking up JPMorgan wold currently produce an instant profit of 30% based on the asset-value of the components. Any/all initiatives to splinter these big banks also produces (cumulative) immediate reductions in overall systemic risk. The entire mantra of “too big to fail” is nothing but a (very) thin veil for financial extortion: “Give us all your money, or we’ll blow up the economy.” The crimes of these big banks (all instruments of the One Bank) now exceed the scope of their “legitimate” banking business by dollar value. They are fraud-factories first, and “banking” comes a distant second. Smash the big banks to dramatically reduce the systemic risk of financial collapse (and permanently remove “too big to fail” from our vocabularies). Smash the big banks to save near-bankrupt Western governments trillions per year in corporate welfare. Smash the big banks to reduce organized crime. Or, simply smash the big banks to make a lot of money.
  • Tyler Durden: Perhaps the most notable line from the Chicago PMI release is that some respondents reported "supply chain disruptions" - one wonders how much this is due to the recent and ongoing drubbing in emerging markets.
  • Steve St. Angelo (SRSRocco Report): Together, Silver Maple and Silver Eagle sales will likely be between 68-71 million ozs in 2013. This is an amazing figure, as it represents 9% of total 2012 world silver production of 787 million ounces.
  • Egon von Greyerz (via King World News): Gold and silver will surge in September and they will both make substantial new highs in 2014. Gold will go up hundreds of percent from current levels, and possibly even thousands of percent. This destruction will come about through endless money printing and credit creation. So, unfortunately gold going up is not good news for the world. Instead, it reflects a world in chaos, and this chaos will only accelerate over time. Gold surging, which it will do, means a world economy that is crashing. This is virtually guaranteed to happen. I know that most King World News readers and listeners will be well protected with an important part of their assets in gold, but they must also understand what kind of world in which they will be living. When gold goes to $10,000, $50,000, or, in a hyperinflationary collapse, maybe even 100 trillion dollars, that will be a world which will be much less pleasant to live in. In the West, much less than 1% of the population will have enough gold to protect themselves financially. To be part of that minority is likely to be very beneficial. But to be wealthy when everyone around you is not can have its own dangers. I have already stressed many times the importance of a low profile, and the fact that it will be unwise to flaunt wealth in the future because we are very likely to see a world with total wealth destruction. This will include the value of paper money crashing, stock markets collapsing (in real terms), bond markets collapsing, a failing financial system, and surging interest rates. Pensions will either be worthless or virtually worthless. We will also see that countries are in no position to look after their people. This means their will be no social security, and failing infrastructure such as hospitals, schools, transportation systems, roads, police protection, and fire services. This will also lead to social unrest and crime. We could well see a combination of anarchy and police or totalitarian regimes.
  • Jeffrey Saut (via King World News): The gold chart analysis is still showing ‘red,’ but the lines are getting closer, and it looks to me like it is getting ready to flip to a ‘buy.’ The buy signal should allow for gold to have the momentum to eventually take out the resistance at the $1,600 area and head higher.
  • Ty Andros (The Market Oracle): The Federal Reserve has bought approximately 110% of all treasury issuance since Jan 1. In fact, subtract Fed balance sheet expansion from GDP growth and a DEEP recession is clearly VISIBLE. The money didn't go into the economy; it went into the banks (FOREIGN and DOMESTIC) to relieve them of toxic mortgage securities and into treasuries to fund a MORALLY AND FISCALLY insolvent central GOVERNMENT IN Washington DC. The public and private sector have virtually left the arena for RISK FREE SECURITIES. Think about that... How far will GOVERNMENT bonds have to fall (yields rise) before investors will be attracted to them again? All the treasury money went into consumption, and not a cent went into investing in the future. Most of the debt is to buy overpriced malinvestments, government debt and toxic bank assets which do not produce more that they cost and purely consumption by Something for Nothing societies aka Developed World Welfare States. In addition to GOVERNMENT debt compounding at 6-8% over the last five years UNFUNDED LIABILITIES are compounding at almost double that rate. These are socialized CENTRALLY PLANNED economies in all but name only, directly (state owned monopolies) or indirectly (regulated). They control all the means of production and confiscate most income either thru taxation or theft of purchasing power of the respective currencies through deficit spending of money printed out of thin air. There has been no austerity where government spending is concerned since the Global financial crisis in 2007. GOVERNMENTS have exploded in size. Which Governments present as growth, to cut government will cut reported economic growth. Their growth has been funded by major new BORROWING, taxes and fees on every part of the societies they control. Confiscation of incomes is now approaching virtually slavery for those that produce wealth. Take a look at the meager amounts are left to the citizens of the developed world's Socialist/welfare states:
  • Karen Weintraub (BBC News Business): Now, a small but - anecdotally - growing group of Americans are leaving the structure and security of an office job for the gruelling, yet rewarding work of earning money from the land. In the US, there are now 456,000 "beginning farmers", defined by the government as those with less than a decade's experience. According to the US Department of Agriculture, they are less likely than established farmers to receive government subsidies, and more likely to be college educated and have jobs off the farm. They also earn less from farming, and work smaller farms - though they aren't necessarily younger than their more established peers. Although official statistics have yet to show an increase in the number of these novice farmers, there is plenty of anecdotal evidence. There are now more than 8,000 farmers' markets across the US, a 38% increase in five years, and up from a few hundred a generation ago. At the Farm School in Athol, Massachusetts, demand for its year-long learn-to-farm programme has jumped from 15-20 applicants five years ago to nearly 50 this year, according to farm director Patrick Connors. virtually all small farmers - both the new and the experienced - supplement their crop earnings, sometimes with added-value products like making cheese from their cows' milk. Often one spouse will continue to have a non-farming job in the city, while the other manages the farm full-time.

•••••••••••

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

Quote:

Gold closed down $7.00 to $1391.10. (Comex closing time).

Silver was down 63 cents to $23.46 (Comex closing time).

In the access market today at 5:15 pm tonight here are the final prices:

Gold: $1396.50

Silver: $23.53

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

http://harveyorgan.blogspot.com/2013/08/august-30gld-and-slv-constantgold-and.html

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

In silver

Quote:

The total silver Comex OI fell by another whopping 2271 contracts today as many refused to roll and play the paper silver game. The total of all Comex silver OI stands at 117,915 contracts. The front month of August is now off the board. The next big delivery month is September and here the OI fell by 4651 contracts down to 2,921.

In gold

Quote:

The total gold Comex open interest fell today by 363 contracts from 382,346 down to 381,983 corresponding to a fall in price of gold to the tune of $7.00 on Thursday. The front August contract month is now off the board. The next non active delivery month for gold is September and here the OI fell by 95 contracts to 209. The next active delivery month is October and here the OI fell by 2366 contracts down to 23,758. The biggest of all delivery months is the December contract month. The December OI rose by 2421 contracts from 227,417 up to 229,838.

Volume

In silver

Quote:

The estimated volume today was good coming in at 44,663 contracts.

The confirmed volume yesterday was also very good at 91,471 but you have to consider the rolls. First day notice for the September contract is today and I will present to you what is expected to stand.

In gold

Quote:

Today, we had good activity inside the silver vaults.

We had 0 dealer deposits and 0 dealer withdrawals.

We had 0 customer deposits:

Total customer deposit: nil oz

We had 2 customer withdrawals:

i) Out of Scotia; 60,284.50 oz

ii) Out of Brinks: 300,907.24 oz

Total customer withdrawal : 361,191.740 oz

We had 3 huge adjustments today

i) Out of CNT: 1,438,690.50 oz was adjusted out of the customer and into the dealer at CNT

ii) Out of HSBC: a total of 982,815.955 OZ was adjusted out of the customer and this landed into the dealer at HSBC

iii) Out of JPMorgan: 928,533.58 oz was adjusted out of the customer and into the dealer at JPMorgan.

The total of adjustments: 3,351,377.895 oz and all of this silver landed in the dealer account to settle.

Amazing! we see the opposite in gold!!

Thus we have the following:

Registered (dealer) silver rises to: 42.668 million oz

Total of all silver: 163.771 million oz.

In gold:

Quote:

We have small activity in the Comex gold vaults today.

The dealer had 0 deposits and 0 dealer withdrawals today.

We had 2 customer deposits today.

i) Into Brinks: 32.15 oz

ii) into HSBC: 11,601.623 oz

Total customer deposits: 11,633.773 oz.

We had 0 customer withdrawals:

Total Customer withdrawals: nil oz.

Today we had another dilly of an adjustment with respect to JPMorgan:

i) Out of JPMorgan vaults : 22,446.225 oz was adjusted out of the dealer and into the into customer account at JPMorgan. No doubt this will settle upon the issuance by JPMorgan customer account.

Thus tonight with respect to JPMorgan gold inventory here is JPMorgan's Friday night inventory:

JPM dealer inventory falls badly tonight to: 220,463.65 oz or 6.85 tonnes.

JPM customer inventory rises tonight to: 233,078.026 oz or 7.24 tonnes.

We will shortly see inventory leave JPMorgan customer account as they settle their issuance.

Today, on first day notice, 0 notices were issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 0 contracts of which 0 notices were stopped (received) by JPMorgan dealer ( house account). I have never witnessed a first day delivery notice of zero oz. They must be having their troubles finding metal.

The total dealer Comex gold falls tonight to 702,488,014 oz or 21.85 tonnes of gold. The total of all Comex gold (dealer and customer) rises slightly tonight to 7,013,224 oz or 218.14 tonnes.

Tonight, we still have the continuing disturbing piece of news concerning the low dealer gold inventory for our 3 major bullion banks(Scotia, HSBC and JPMorgan). These 3 dealer gold inventory falls tonight to an extremely low 17.361 tonnes.

i) Scotia: 183,413.6444 oz or 5.704 tonnes

ii) HSBC: 154,362.773 oz or 4.80 tonnes

iii) JPMorgan: 220,463.65 oz or 6.857 tonnes

Total: 17.361 tonnes

Brinks dealer account which did have the lion's share of the dealer gold saw its inventory level remain constant tonight at 129,679.910 oz or 4.03 tonnes. A few months ago they had over 13 tonnes of gold at its registered or dealer account.

Delivery Notices

In silver:

Quote:

The CME reported that we had 1661 notices filed for 8,305,000 oz today.

In gold:

Quote:

Today we had 0 notices served upon our longs for nil 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:

To calculate what will stand for this non active delivery month of August, I take the number of contracts served thus far this month at 1661 x 5,000 oz per contract = 8,305,000 oz to which we add the difference between the Sept OI (2921) and notices already delivered upon (1661) = 1260 contracts or 6,300,000 oz to give us a total of 14, 605,000 oz standing.

In summary:

1661 contracts x 5000 oz per contract (served) or 8,305,000 oz + (2921 - 1661) = 1260 contracts still to be served upon or 6,300,000 oz totals 14,605,000 oz

The total that looks like they are willing to stand for metal in the September contract is 14,605,000 oz.

This starts the Sept silver delivery month.

In gold:

Quote:

In order to calculate what will standing for delivery in September, I take the total number of notices served (0) x 100 oz per contract to give us nil oz served to which I add the OI for August (209) minus today's delivery notices at (0) to give us 20,900 oz standing.

Thus we have the following gold ounces standing for gold on this first day notice:

nil notices x 100 oz per contracts = nil oz already served upon + (209 OI standing- served -0) = 20,900 oz standing or (.6500 tonnes). At first glance this is what will stand for delivery in September, but we have the entire month for Blythe is to be busy.

Ladies and Gentlemen: we have a three-fold problem:

i) the total dealer inventory of gold falls slightly tonight to a very dangerously low level of only 21.85 tonnes

ii) a) JPMorgan's customer inventory rises to 233,078.026 oz but that will lower once delivery notices are served upon this inventory.

ii) b) JPMorgan's dealer account falls badly to 220,463.65 oz but all of that gold and them some is spoken for.

iii) the 3 major bullion banks have collectively only 17.361 tonnes of gold left in their dealer account.(JPMorgan, HSBC, Scotia)

Select Commodity Prices:

The Bloomberg Baltic Dry Index (BDI) was down 0.35% at 1132.00. WTI August crude was 107.65 down 0.55.

Brent closed at 114.01 down 0.58. The spread between Brent and WTI was 6.36, down 0.03. The 30 year US

Treasury bond was down 0.0270 at 3.6760. The 10 year T-Note was down 0.0020 at 2.7490. This is the one that

is the dollar killer. GOFO is negative for the 40th day in a row. It still looks like they are running out

of bullion. The dollar was up 0.07 at 82.10. The PPT/Dow was 14,810.31 down 30.64, BELOW the very key round

number of 15,000. Facebook was 41.29 up 0.01 (0.03%). Silver closed down 0.34 at 23.53. The GSR was 59.34

up 0.40 silvers-to-gold, but down from a high of around 68. September wheat was up 2.00 at 643.20.

December corn was up 0.40 at 482.00. October lean hogs were 87.625 up 0.375. Hogs are also in backwardation

as far out as April 2014. September feeder cattle were up 2.250 at 158.700. September copper was 3.2250

down 0.0190. September natural gas was up 0.033 at 3.567. October coal is down 0.45 at 51.13.

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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Hat Tips: 14112
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~~Harvey 3 Sep 2013

This is DayStar (DS) with the Tuesday Harvey Report

•••••••••••

News and Commentary

  • Harvey: the Comex registered or dealer inventory of gold falls slightly. It is now well below the 1 million oz mark, at 701,079.011 oz or 21.806 tonnes . With no gold entering the dealer side it seems almost impossible for the bankers to settle upon longs once the December contract hits. The total of all gold at the Comex (dealer and customer) tonight rests just above the 7 million oz barrier resting at 7.024 million oz or 218.50 tonnes. JPMorgan's customer inventory falls tonight to 213,638.113 oz or 6.645 tonnes. It's dealer inventory remains at 220,463.65 oz or 6.857 tonnes. The total of the 3 major gold bullion dealers (Scotia, HSBC, and JPMorgan) in its Comex gold dealer account again falls slightly in gold inventory tonight and its resting inventory is 17.318 tonnes of gold. Brinks continues to record a low of only 4.03 tonnes in its dealer account. The GLD reported a loss in its inventory tonight of 1.8 tonnes of gold with a reading of 919.23 tonnes of gold. We had a huge loss in the silver inventory at the SLV and thus the reading of the SLV inventory lowers to 338.795 million oz. Today all the GOFO numbers are positive. DS: The cartel must have located some silver somewhere.
  • Mark O’Byrne (GoldCore): Gold, silver and brent oil rose and European stocks declined after reports of missile launches in the Mediterranean. Russian radar detected two ballistic "objects" that were fired towards the Syrian coastline from the central part of the sea. Reuters have just reported that Israel has now said that it carried out joint missile test with U.S. Gold recovered from early losses and climbed toward $1,400 an ounce, after Interfax reported that Russia detected that two missiles had been launched. The missiles appear to be headed toward the eastern Mediterranean. DS: Well, at least gold appears to have reacted as you would epect. Bad news caused gold to climb instead of the stock market.
  • Shivom Seth (MineWeb): Friday, the government of India raised the tariff value on gold imports while the Forward Markets Commission hiked margins on the precious commodity in futures trading - twin steps that were taken to control inbound shipments of the precious metal and check volatility in its trading. India's Prime Minister, Manmohan Singh, admitted in Parliament on August 30th that the current account deficit had gone up sharply and that it was affecting the value of the rupee. “The prime minister has said we need to reduce our appetite for gold, and economise the use of petroleum products. Since our hands are already tied with the high import duty on gold, and we are not bringing in any gold into the country as this point, the bullion industry will be left with no other choice but to shut shop once again against these draconian views,'' said Mansukhlal Motwani, bullion retailer at Mumbai's Zaveri Bazaar. Acknowledging the problems facing the country, Singh said gold imports needed to be further curbed. Gold is the second largest contributor to the current account deficit after oil. The Prime Minister said, "We seem to be investing a lot in unproductive assets."
  • Bloomberg: Gold forward offered rates turned positive for the first time in eight weeks in London, lowering one-month bullion borrowing costs to an almost two-month low.
  • Mary Anne and Pamela Aden (The Aden Forecast): For now, watch these stepping stone levels on the way up. If gold can rise and stay above $1400, it’ll mean that it could jump up to the $1500-$1565 level. After that we have the $1700, $1800 and $1900 levels to surpass before getting to record highs. Overall, however, the current rise will tell us a lot about the strength (or weakness) of the gold market. If it doesn’t hit a new record high, it’ll be a first for the entire bull market and a clear bearish sign. If a record high is eventually reached, gold will be signaling that the bull market is ongoing and it’s strong, in spite of the almost two year correction that took 36% away from the bull market.
  • Hubert Moolman (SilverSeek.com): The retest of the breakout area at $20 for silver was tested before the bull market peak. The retest of the breakout before the bull market blowoff top probably means we will never see these levels again. If silver only equals the performance of the 70s, it will reach $150. However, this cycle will only be over when silver and gold are not quoted in the current fiat currencies or any other fiat currency. Instead, most goods would be quoted in terms of silver and gold. The process of the devaluation of gold and silver, started by the demonetization of gold in 1971 and silver in 1964, is about to reverse at a greater speed than ever before. This is similar to what happened during the late 70s, when the gold and silver price increased significantly. However, what happened in the 70’s was just a prelude to this coming rally. The 70’s was the end of a cycle, this is likely the end of a major cycle; an end of an era of the debt-based monetary system (dishonest money).
  • Douglas Pollitt (GATA): But vaults can and do empty. Let’s go back to Buffett: in early February, 1998, Berkshire Hathaway came out of the woodwork and announced that it was they who had been buying silver; the Company had taken delivery of 87mm ounces and it was standing for delivery of an additional 43mm ounces. The market reacted violently, especially the front month contract. Those short immediately appreciated that this was not just another bluff – they’d have to find the metal! All hell broke loose. It turns out Buffett likely never did take delivery of the entire 130mm ounces. The 1997 Berkshire annual report showed holdings of only 110mm ounces. It is fair to speculate he settled for the rest in cash. The cupboard was, apparently, bare. DS: This story implies there were only 110 moz available for sale in 1998, and since then there have been a lot of cruise missile batteries constructed with each having 500 oz of pure silver, not to mention silver impregnated medical bandages in the landfills and light switches with silver contacts that will never be recycled.
  • John Embry (via King World News): I still believe that gold and silver prices are grotesquely undervalued. I have been alleging gold and silver manipulation for the past 15 years, and I would dare say that the manipulation today is probably as aggressive as any time in that 15 year period. I suspect it (the powerful manipulation) is for good reason because if the gold and silver prices were to break away to the upside, it would reveal the problems that are present in the system. The gold and silver prices will break free at some point, but in the meantime there is a massive fight going on at the current levels -- $1,400+ on gold, and $24+ on silver. I think there is a distinct shortage of physical silver that is developing. Unlike gold, where central planners can get access to some physical gold to suppress that market, I don’t think that exists when it comes to silver. So I wouldn’t be surprised to see silver leading gold higher in the future, just like we are seeing today. The bottom line here is that silver is tremendously undervalued, demand is solid, and the supply/demand curve is extraordinarily positive for higher prices. This is exactly why we are now seeing this shortage of silver developing, and if it accelerates, the price of silver will simply explode to the upside. I think this fall is going to be a really fantastic period for gold and silver. But the thing I find so fascinating is that the sentiment is so terrible at this point, even with the recovery in prices. You saw that transaction where Gold Fields bought 450,000 ounces of annual production for a mere $300 million, and yet the stock fell 20%. This shows you how negative the sentiment is. The Hulbert Sentiment Index, which used to be published for free, has suddenly disappeared because it was so incredibly bullish for gold. It’s because the sentiment was so negative. No one has even spoken about this. So I’m very excited at this point because the fundamentals are so strong, and the sentiment is terrible. That’s a powerful recipe for much higher prices, and that’s exactly what we are seeing today.”
  • William Kaye (via King World News): The main thing I am focused on right now is the upward migration of gold and silver prices as we get to the seasonally strong part of the year. I think we’ve seen exhaustion on the part of the powers that be in terms of the smashing of gold, and the more overt suppression of gold and silver prices. So now the question is, what strategy will they revert to? It appears they have gone to plan ‘B.’ Plan ‘A’ was to smash the price to unbelievably low levels, and I think resistance from my area of the world (through massive physical gold buying) prevented that from being sustained. So the plan they have reverted to now is one of using what physical gold they can get their hands on, and that’s getting very tight in order to cap the price, and essentially manage as best as possible the migration of gold and silver prices to inevitably higher price levels. DS: By using physical stores of gold and silver in a market where demand is not quelled by the purchase of stocks, they will encounter more and more scarcity, and the possibility exists of a commercial signal failure when demand rises in the face of dwindling physical supplies and suddenly the demand cannot be from any source. They you see markets gap open, go limit up, and close for the day, and the naked shorts (hedge funds) get literally destroyed and go out of business, but Kaye says the Western central planners are now running out of options.
  • Chris Powell (GATA) on Marc Farber: "There are lots of theories about manipulation in the gold market. I always say this doesn't concern me, and I hope that the central banks manipulate the price down because if that is the case, don't forget that every manipulation eventually leads to a move in the opposite direction that is very violent. So in other words, if someone manipulates the price down, in my view eventually the price will shoot up very dramatically. It's like if you have wage control -- eventually the wage control falls apart and wages go through the roof. Similarly if you have in the commodities market price supports for coffee or oil or whatnot, eventually the price falls through the price support and so forth and so on. Market force is always more powerful, so I hope the gold price was manipulated down because then it will go through the roof eventually." Those of Faber's subscribers whose active lifespans are encompassed by "eventually" may be glad of his insight here. Faber subscribers and others who have been investing in the monetary metals for some time in the hope of free-market pricing and whose active lifespans don't leave much more room for "eventually" may think: Thanks for nothing.
  • Ana Komnenic (Reuters): Despite rumours that the Reserve Bank of India may mobilize idle gold reserves and sell them to banks, the RBI clarified on Saturday that it had no intention of doing so. "There have been some news stories in the media in the last couple of days about the Reserve Bank of India discussing/considering various options of converting idle gold, including that available with temple trusts, into bullion," the central bank told Reuters. "The Reserve Bank clarifies that no such proposal is under its consideration at this juncture."
  • Geoff Candy (MineWeb): If National Union of Mineworkers spokesman, Lesiba Seshoka is to be believed, the gold sector strike that begins Tuesday evening could last a great deal longer than most people are expecting, costing the economy hundreds of millions of rand a day. "The way things appear at the moment, it looks as though this will be a very lengthy strike; it may last until Christmas," he told Mineweb.
  • Harvey: Asian bonds tumble as does currencies in the emerging markets. (Indian Rupee/Indonesia Rupiah). This is a big story and worth noting as the emerging nations tumble. Remember that the west has huge leverage on emerging nations growth. If these guys falter, then there is going to be a massive sell off everywhere. Any interest rate derivatives implode on the books of our major western bankers.
  • Tyler Durden: It seems the hopes and dreams of a Japanese public (and their illustrious leaders) is being dashed on the same rocks as the US worker. Amid surging input prices (thanks to a devalued currency) with consumer prices rising at the fastest rate since 2008, Bloomberg notes that Japanese salaries extended the longest slide since 2010 squeezing the consumer as the failure of demand pull inflation becomes more than real. Despite a stock market that is surging and politicians the world over proclaiming Japan's victory, "companies aren't confident enough on the sustainability of the economic recovery," instead cutting salaries (in an oh-so-American manner) to manage higher input costs.
  • Bill Holter: this is about natural gas. It is about oil. It is about a proposed pipeline through Syria that Assad (and the Russians) do not want. This is about the "petrodollar". It is about the fact that the Fed needs the military industrial complex to go to another war so that they deficit SPEND which will allow the Fed to PRINT. ...And it is ALL HAPPENING just before the G-20 conference IN RUSSIA which President Obama has already cancelled his meeting with Mr. Putin because of the asylum given to Edward Snowden. DS: I don't agree with Holter here. In the first place, Syria will be left intact in order for them to take out Israel. In the second place, the bankers are funding both sides, one through one through Libyan arms sales and Saudi funding, the other through the Turkish gold bazaar (Iranian natural gas for Western, underpriced Turkish gold). What we are seeing are trade wars that will give a pretext for WWIII. This is simply maneuvering to position the players for WWIII and to keep Israel occupied and so it does not attack Iran. The war in Syria would have been over long ago had it not been effective in keeping Israel at bay. I do agree with one thing though: WWIII will begin in Syria, when it invades Israel and hits the US with an EMP.
  • Bill Holter: Logic and reason in a dumb society gets routinely shouted down as "dumb" which is exactly what those running the show now need. We live in a world where "money" is not real, never mind that no one (very few) can tell you or even define what a "Dollar" is. Never mind that even some of our politicians still think that the Dollar is somehow backed by Gold. "Nothing bad", REALLY bad has happened yet. Congress will vote next week whether to go to war or not and after watching the mainstream news last night and hearing that John Boehner is in support tells me that it will be a "yes" vote. The mainstream news was full bore in their efforts to swing public opinion in favor...but as Obamacare and other travesties have proven, the will of the public does not matter. Make no mistake, "we" need a war to prolong the use of the petrodollar...and we also need something to point to as blame when, not if, the banking system comes down. The "sheeple" who have steadily become more numb and more dumb accepted it all the way along don't know or don't care but will have to be given a reason, any reason that "life has changed".

•••••••••••

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

Quote:

Gold closed up $20.90 to $1412.0. (Comex closing time ). Silver was the star of the show up 92 cents to $24.38 (Comex closing time). These gains are from Comex close to Comex close.

In the access market today at 5:15 pm tonight here are the final prices:

Gold: $1412.20

Silver: $24.28

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

http://harveyorgan.blogspot.com/2013/09/sept-3dealer-Comex-gold-falls-to-701079.html

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

In silver

Quote:

The total silver Comex OI fell by another whopping 2800 contracts today as many players are now fleeing the crooked paper Comex casino. The total OI now rests tonight at 115,115 contracts. we are now in the big delivery month of September and here the OI fell by 1751 contracts down to 1170. The big December contract saw its OI fall 1286 contracts down to 82,489.

In gold

Quote:

The total gold Comex open interest fell today by 2245 contracts from 381,963 down to 379,718 corresponding to a fall in price of gold to the tune of $16.80 on Friday. We are now in the non active delivery month for gold is September and here the OI fell by 1 contract to 208. We had 0 delivery notices filed on Thursday so we lost 1 contracts or 100 oz of gold will not stand for delivery. The next active delivery month is October and here the OI fell by 251 contracts down to 23,507. The biggest of all delivery months is the December contract month. The December OI fell by 4179 contracts from 229,838 down to 225,709.

Volume

In silver

Quote:

The estimated volume today was excellent coming in at 69,338 contracts.

The confirmed volume Friday was good at 47,245.

In gold

Quote:

The estimated volume today was excellent at 203,713 contracts.

The confirmed volume on Friday was also good at 143,042.

Inventory Numbers

In silver:

Quote:

Today, we had good activity inside the silver vaults.

We had 1 dealer deposits and 0 dealer withdrawals.

i) dealer deposit at CNT: 591,540.60 oz

We had 0 customer deposits:

Total customer deposit: nil oz

We had 2 customer withdrawals:

i) Out of Scotia; 2,948.30 oz

ii) Out of Delaware: 10,317.60 oz

Total customer withdrawal : 13,265.90 oz

We had 0 adjustments today

Thus we have the following:

Registered (dealer) silver rises to : 43.259 million oz

Total of all silver: 164.349 million oz.

In gold:

Quote:

We have small activity in the Comex gold vaults today.

The dealer had 1 deposit and 0 dealer withdrawals today.

We had 1 customer deposit today.

i) into HSBC: 31,813.910 oz

Total customer deposits: 31,813.910 oz

We had 2 customer withdrawals

i) Out of HSBC: 771.60 oz

ii) Out of JPM: 19,439.913 oz (as promised..this removal no doubt was from an issuance by JPMorgan customer account a few days ago)

Total Customer withdrawals: 20,211.513 oz

Today we had a small adjustment with respect to HSBC:

i) Out of HSBC vaults : 1,409.003 oz was adjusted out of the dealer and into the into customer account at HSBC.

Thus tonight with respect to JPMorgan gold inventory here is JPMorgan's Tuesday night inventory :

JPM dealer inventory remains constant tonight at: 220,463.65 oz or 6.85 tonnes

JPM customer inventory falls tonight to: 213,638.113 oz or 6.645 tonnes

We will shortly see other inventory leave JPMorgan customer account as they settle their issuance.

Today, 20 notices were issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 20 contracts of which 0 notices were stopped (received) by JPMorgan dealer ( house account) and 0 notices stopped by JPMorgan customer account.

The total dealer Comex gold falls tonight to 701,079.011 oz or 21.806 tonnes of gold . The total of all Comex gold (dealer and customer) rises slightly tonight to 7,024,827 oz or 218.50 tonnes.

Tonight, we still have the continuing disturbing piece of news concerning the low dealer gold inventory for our 3 major bullion banks(Scotia, HSBC and JPMorgan). These 3 dealer gold inventories falls tonight to an extremely low 17.318 tonnes.

i) Scotia: 183,413.6444 oz or 5.704 tonnes

ii) HSBC: 152,953.770 oz or 4.757 tonnes

iii) JPMorgan: 220,463.65 oz or 6.857 tonnes

Total: 17.318 tonnes

Brinks dealer account which did have the lion's share of the dealer gold saw its inventory level remain constant tonight at 129,679.910 oz or 4.03 tonnes. A few months ago they had over 13 tonnes of gold at its registered or dealer account.

Delivery Notices

In silver:

Quote:

The CME reported that we had 642 notices filed for 2,640,000 oz today

In gold:

Quote:

Today we had 20 notices served upon our longs for 2,000 oz of gold.

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

In silver:

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

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

Quote:

To calculate what will stand for this non active delivery month of August, I take the number of contracts served thus far this month at 2303 x 5,000 oz per contract = 11,515,000 oz to which we add the difference between the Sept OI (1170) and notices already delivered upon (642) = 528 contracts or 2,640,000 oz to give us a total of 14, 155,000 oz standing.

In summary:

2303 contracts x 5000 oz per contract (served) or 11,515,000 oz + (1170 - 642) = 528 contracts still to be served upon (2,600,000 oz) or a total standing of 14,155,000 oz

We lost 90 contracts or 450,000 oz of silver that will not stand for delivery.

In gold:

Quote:

In order to calculate what will standing for delivery in September, I take the total number of notices served (20) x 100 oz per contract to give us 2,000 oz served to which I add the OI for Sept (208) minus today's delivery notices at (20) to give us 20,800 oz standing.

Thus we have the following gold ounces standing for gold in September:

20 notices x 100 oz per contracts already served or 2000 oz + (208 OI served -20 OI notices)x 100 oz= = 20,800 oz standing.(2,000 oz + 18,800 oz) or (.6469 tonnes).

Ladies and Gentlemen: we have a three-fold problem:

i) the total dealer inventory of gold falls slightly tonight to a very dangerously low level of only 21.806 tonnes

ii) a) JPMorgan's customer inventory falls to 213,638.113 oz but that will lower once delivery notices are served upon this inventory.

ii) b) JPMorgan's dealer account remains constant at 220,463.65 oz but all of that gold and them some is spoken for.

iii) the 3 major bullion banks have collectively only 17.318 tonnes of gold left in their dealer account.(JPMorgan, HSBC,Scotia)

Select Commodity Prices:

The Bloomberg Baltic Dry Index (BDI) was up 2.55% at 1168.00. WTI August crude was 108.54 up 0.89. Brent closed at 115.69 up 1.68. The spread between Brent and WTI was 7.15, up 0.79. The 30 year US Treasury bond was up 0.1000 at 3.7760. The 10 year T-Note was up 0.0990 at 2.8480. This is the one that is the dollar killer. All GOFOs were positive and ended their streak at 40 days and 40 nights. It still looks like they are running out of bullion. The dollar was up 0.31 at 82.41. The PPT/Dow was 14,833.96 up 23.65, BELOW the very key round number of 15,000. Facebook was 41.87 up 0.58 (1.39%). Silver closed up 0.75 at 24.28. The GSR was 56.34 down 0.82 silvers-to-gold, but down from a high of around 68. September wheat was down 6.60 at 636.40. December corn was down 6.60 at 475.20. October lean hogs were 88.000 up 0.375. Hogs are also in backwardation as far out as April 2014. September feeder cattle were down 1.250 at 157.450. September copper was 3.3045 up 0.07150. September natural gas was up 0.085 at 3.666. October coal is down 0.13 at 51.00.

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 4 Sep 2014

This is DayStar (DS) with the Wednesday Harvey Report

•••••••••••

Harvey is too late tonight, so I went with what I had. DayStar

News and Commentary

  • William Kaye (via King World News): The way this ties in to the gold situation is twofold: One, that region is poised to become much more unstable. Obviously this will be constructive for the gold price. Virtually no one wants to see an escalation of what is happening in the Middle East. But I think gold will also benefit even if there is peace because the lesson everyone is learning from this is they can’t even trust their own governments. Governments lie to people. The American government has a long history of lying to its own people. The British government lies to its people. The other Western governments also lie to their people. The reality is that we live in a world where there needs to be some type of resolution. The policies that are in place in the West are not sustainable, and if something can’t be sustained, it won’t be sustained. So the question is: At what stage does it blow up, and how do you want to be positioned when it all implodes? It is inevitable that this current system will collapse. My own view is that we have 12 to 18 months. I really can’t fathom the current set of circumstances lasting much longer. Part of that change will involve the gold price being reset to a much, much higher level. Silver will obviously migrate higher as well -- it has to.
  • Stephen Leeb (via King World News): The gold and silver markets seem to be backing and filling here. We have had a move from under $1,200 in gold, to above $1,400 very recently. So, to see the market come down a little bit and just consolidate is normal and healthy technical action. It also tells you it’s technical action when the reason being given for the gold market’s decline is that the Indian currency went higher. How much sense does that make? None at all is the answer. There is a tremendous amount of government debt which is owed by the United States. If you can get rid of that government debt by inflating it away, then this is what you should expect to see. This is one way of dealing with the debt problem and it is the path which has always been chosen by politicians. Interestingly, the way most of the world got out of the debt situation during the Great Depression was that almost everybody defaulted. We have already had a number of defaults, but the problem is that there is still a tremendous amount of debt which is present in the system. So, more and more it appears the way governments will get out of their debt is through inflation. All of this is a recipe for much, much higher gold, silver and commodity prices. We are now seeing some backing and filling, and this is solid technical action which will also relieve the overbought condition. But the fundamentals from the East in China, to the West in the United States, remain very, very firmly on the side of gold, and especially when it comes to silver. Every time there is another bit of radioactive water leaking into the ocean of Japan, another solar panel is going to go up. And for every solar panel that goes up, there is more physical silver that’s needed. So, from Japan to China, and even the United States, demand for silver is going to continue to increase at a very, very rapid rate.
  • Pierre Lassonde (via King World News): Europe was a bit of an eye-opener for me this summer because everywhere I went, Spain, Poland, England, and France, I asked the shop owners and the taxi drivers, ‘How is business?’ In France, for example, everybody that I talked to told me that this year their business was down between 7% and 40% vs last year. In Spain they are leaving the country. They are going to Africa, to New Zealand, Australia, or whatever, because there are no jobs. It’s the same (way) in Portugal. So, what are the French going to do? What are the Italians going to do? You cannot bailout France, you cannot bailout Italy, they are too big. At some point in the next 2 years you are going to have major, major issues. The PIIGS bond markets are going to backup big time, and they are going to say to these countries, ‘Enough is enough. We’re not lending (you money) any more.’ And then what are they going to do? If the Germans decide not to devalue, are they just going to go bankrupt? So, the more I see what’s going on in Europe, the more I like gold.
  • Ranting Andy (Miles Franklin): The fact that COMEX inventories are on the verge of disappearing is setting the stage for the inevitable end of the PAPER PM suppression that has destroyed the financial world - and frustrated PM longs - for the past decade. As I wrote last week in "COMEX REGISTERED INVENTORIES - COULD DISAPPEAR ANY DAY," the ongoing COMEX inventory drain has been historic; collapsing from 3,000,000 ounces just before April's blatantly orchestrated "ALTERNATIVE CURRENCIES DESTRUCTION" to just 768,000 ounces last week - valued at just under $1.1 billion. Well yesterday, the COMEX issued its weekly update on such; and lo and behold, registered gold inventories plunged an additional 9% - to just 702,000 ounces. At this pace, the ENTIRE COMEX could be drained of registered inventory by year-end; as which point, it would cease to exist as a price discovery mechanism.
  • Andrew Hoffman: The Fed’s printing presses are injecting TRILLIONS into the global “bloodstream” each year; and given that it remains the world’s largest trading and currency reserve platform, the “trickle-down effect” causes MASSIVE inflation across the four corners of the globe. The U.S. dollar-based, global fiat PONZI SCHEME has reached its terminal phase – causing ALL global currencies to collapse against the dollar, whilst the dollar itself plunges against ITEMS OF REAL VALUE like the commodities necessary to sustain life. ALL the world’s currencies have fallen against the dollar in both the past six months and two years except Uganda and Kenya. The nations exposed to Fed induced inflation comprise 62% of the global population. While GOLD and SILVER prices may be higher in these nations, so is EVERYTHING else; and for those that haven’t PROTECTED their assets with PMs, overall purchasing power dramatically declines. Worldwide purchasing power is FREEFALLING as the Fed’s maniacal “QE4” program finishes off what’s left of the fraudulent fiat currency regime that has left the world on the precipice of World War III.

•••••••••••

Select Commodity Prices:

The Bloomberg Baltic Dry Index (BDI) was up 4.02% at 1215.00. WTI August crude was 107.34 down 1.20. Brent closed at 114.88 down 1.68. The spread between Brent and WTI was 7.54, up 0.39. The 30 year US Treasury bond was up 0.0230 at 3.7990. The 10 year T-Note was up 0.0490 at 2.8970. This is the one that is the dollar killer. All GOFOs were positive and ended their streak at 40 days and 40 nights. It still looks like they are running out of bullion. The dollar was down 0.23 at 82.18. The PPT/Dow was 14,930.87 up 96.91, BELOW the very key round number of 15,000. Facebook was 41.78 down 0.09 (0.21%). Silver closed down 0.82 at 23.46. The GSR was 59.31 down 2.97 silvers-to-gold, but down from a high of around 68. September wheat was down 2.20 at 634.20. December corn was down 5.60 at 469.40. October lean hogs were 89.125 up 1.250. Hogs are also in backwardation as far out as April 2014. September feeder cattle were down 0.350 at 157.100. September copper was 3.2365 down 0.0600. September natural gas was up 0.017 at 3.683. October coal is down 0.16 at 50.84.

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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