Harvey Organ Should Be An Interesting Read Today

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Tue, Feb 11, 2014 - 8:58pm
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RE: Highlight Commentary

Thanks, Joe.

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Tue, Feb 11, 2014 - 9:17pm
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~~Harvey 11 Feb 2014

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

News and Commentary

Mark O'Byrne (GoldCore): Gold for immediate delivery rose a fifth day and is headed for its longest rally since August before Federal Reserve Chairman Janet Yellen addresses Congress today. Chinese demand continues to be very robust and volumes for spot bullion of 99.99 percent purity on the Shanghai Gold Exchange (SGE) climbed to 25,725 kilograms yesterday, the most since May. Gold has climbed 6% this year in dollar terms amid currency turmoil in emerging markets and stocks falling sharply globally. $1.63 trillion has been erased from the value of global equity markets.

Jeremy Grantham (via King World News): At this point I can’t resist reviewing once again my forecast in 2009 of “seven lean years,” in which I suggested 2% a year would be a hard level to reach or exceed. And it will turn out that way. But the biblical idea of seven lean years, which felt so brave back then in 2009 seems likely to be a red herring: the time period would be better left open-ended. “Permanent lean years” is not as memorable but probably more accurate. Let me add here that “lean” is only a useful concept to compare with the previous Golden Century. Growth of 1.5% a year is simply not that bad. (Indeed, to the earner of the average hourly wage, which, remarkably, has been dead flat since 1970, 1.5% a year would have delivered an increase of almost 70% and would have gone a long way to removing some of the middle class malaise.) It is, however, important that we readjust our mental targets unless we want to enter an era of perpetual disappointments, which would seem to be a very bad idea. False optimism leads to very poor investment decisions. It will also encourage yet more dangerous policies at the Fed. We can imagine, for example, in 30 years some “son of Yellen” as it were, introducing QE 27 in a vain attempt to squeeze blood out of stones. But long before then, I fear an overstimulated system will have bitten us a few more times on the leg.

Harvey: Today we witnessed a huge breakout of gold beyond the huge resistance level of $1270.00 finishing the Comex session at 1290.00 and the access market at $1292.00. The bankers were intent on whacking gold below $1270 but failed miserably. The weak silver price relative to gold probably means that the crooks will try again tomorrow. The first three month's GOFO is in backwardation. GLD: Demand is back at GLD. Gold inventory went up by a huge 1.8 tonnes and stands at 798.85 tonnes. SLV: Silver was unchanged and closed at 10,045.79.

Stephen Leeb (via King World News): You have to be impressed that gold is trading higher and the fact that it has broken through a couple of important resistance levels. But what is interesting is that we have gold and the stock markets trading up together. The longer-term commodity chart also looks like it is ready to turn higher once again. This is also really good news for gold. When commodities move higher, gold moves up faster than any other commodity. So I think the action today in these markets is about the best I’ve seen in quite some time. If you remember, commodities made their high in 2011, just before Europe started to turn down. Well, Europe has had six consecutive quarters of negative growth in a row. But Europe is starting to turn up a bit. The German high court also essentially agreed to cede sovereignty and this opens the door for more quantitative easing in Europe. If we see more QE in Europe, that would trigger a commodity rise and gold would definitely be in the leadership role. With the German high court ruling, there is no obstacle to prevent the European Central Bank from once again engaging in quantitative easing. So you put all of these pieces together and it spells a new bull market in commodities, and it will be led by gold.

Tom Fitzpatrick (via King World News): The upside action in gold looks extremely constructive. In fact, the way gold is trading here is looking very similar to the way gold traded in 2012, when gold posted the double bottom and moved higher. So the constructive dynamic here is that gold posted the double bottom around the $1,180 level. We then saw the bullish weekly reversal. Gold has now clearly broken out above the downtrend. Gold is also above the 55-day moving average and heading toward the 200-day moving average, which is coming in at $1,306. The gold market is picking up momentum. If you go back to the similar move in 2012, it was at this point that the gold market began to accelerate to the upside, especially once gold broke above the 200-day moving average, which as I said is currently at $1,306. What is most impressive here is how gold has continued to rally, even in the face of a strong bounce in the equity markets. We are watching the area of the last high, which comes in around $1,362, but the most important level by far is going to be the $1,434 level. This was the peak that was seen in gold during the bounce last year. For us gold looks clearly set up to head in the direction of that major level at $1,434.

Bill Holter (Miles Franklin): At the Jim Sinclair Q&A session in Austin a German fellow approached Bill Murphy of GATA and asked why GATA had never gone public with their gold manipulation story. Murphy explained that they had been trying to do that for 16 years and no one in the US or Britain would entertain the story or even use the word "GATA" in a story. The German guy kept coming back and asking the same question, and finally he approached Murphy one last time after the conference...and only then did things start to roll. It turns out that this guy was quite successful, he retired 6 years ago (presumably in his 30's) after selling his "headhunting" business. This is significant because he has ties and acquaintances in the German media...it was GAME ON! You could see Murphy's face light up like a Christmas tree! Could this be possible? A German who truly understands what has been happening AND connections to the German media...at a time when Germany has been defaulted on and it appears that their gold is gone? This is a dream come true! Germany is hungry for any information about gold right now...because they have figured out that their's is, well, "it's gone"! And compiling information about gold and the fraud that has surrounded it for at least 42 years is the only thing that GATA has done for 16 years...except no one wanted to hear it in the U.S., NO ONE. Chris Powell had already sent this information last month to Bafin with no response from them at all. The plan is to get this information to Bafin "publicly" so that the German populace knows full well that the regulator has all of the smoking guns and 1 media outlet in an exclusive scoop. This information will be followed by a "presentation" to the German public who are only now beginning to ask questions since the U.S. has dragged its feet on shipping German gold back to its rightful owners. This will not be a "he said--she said" or "I think" session. Please understand that GATA has now and has had for quite some time enough information that put together properly paints an absolute masterpiece of who did what and how. Murphy wants to put together an All Star team to make this presentation, he intends to request that the likes of Jim Sinclair, Eric Sprott, James Turk, John Embry, (a special surprise guest) and others participate. The thought process is this, inform the German people exactly what has happened, why it has happened and where we (they) are now. This will obviously put some pressure on politicians to get behind this which will pressure the regulators to dig...deep.

Koos Jansen and Harvey (In Gold We Trust): Peter Boehringer who is leading the charge to get all of German gold repatriated, finds out that the Bundesbank in the fall of 2012 asked for 150 tonnes of gold repatriated from the FRBNY in 3 years, i.e. 50 tonnes per year. Then the Bundesbank in 2013 prepared a second repatriation of 674 tonnes of gold and these two are not mutually exclusive. It seems that Buba's explanation that they need 8 years to repatriate their gold due to safety issues is totally hogwash because they had already arranged for the 150 tonnes to be repatriated in 3 years (2012-2015). The German citizens (rightly so) are getting paranoid that their gold has been stolen by the Americans.

Liezel Hill (Bloomberg): Barrick Gold Corp. (ABX) is poised to cut output to a nine-year low, a sign the world’s largest gold miner is making headway on its plan to put profits before growth. Barrick may produce 6.3 million ounces of gold this year, based on the average of four analysts’ estimates compiled by Bloomberg. That would be as much as 15 percent less than last year and the lowest since the company became the gold industry leader in 2006. The miner led an industrywide pursuit of expansion over the past decade as gold producers sought to capitalize on prices that rose for 12 straight years. A shift began in 2012 after money-losing multibillion-dollar takeovers, overbudget projects and relentlessly rising costs pushed the companies to focus on returns.

Zero Hedge: Barclays said it will cut up to 12,000 jobs this year to help reshape its business and bring down costs. The U.K. bank also said it aims to slash up to another £105 billion ($172.2 billion) from its balance sheet by next year as tougher regulation and falling revenue in its investment bank bit into profit. After firing 12,000 Barclays reports horrible earnings, but awards company officers bigger bonuses.

Tyler Durden: With only $24.5 billion left in FX reserves after valiantly defending major capital outflows since the Fed's Taper announcement, the Kazakhstan central bank has devalued the currency (Tenge) by 19% - its largest adjustment since 2009. At 185 KZT to the USD, this is the weakest the currency has ever been as the central bank cites weakness in the Russian Ruble and "speculation" against its currency as drivers of the outflows (which will be "exhausted" by this devaluation according to the bank). The new level will improve the country's competitiveness (they are potassium heavy) but one wonders whether, unless Yellen folds whether it will help the outflows at all.

Ambrose Evans Pritchard (UKTelegraph): The ‘thunderbolt’ ruling on eurozone rescue policies by Germany’s top court marks a serious escalation of Europe’s governance crisis. Germany's constitutional court said it was "inclined" to rule ECB's eurozone crisis backstop is illegal. Last week’s ‘thunderbolt’ ruling on eurozone rescue policies by Germany’s top court marks a serious escalation of Europe’s governance crisis and may ultimately force Germany to withdraw from the euro, the country’s most influential magazine has warned. A sweeping report by Der Spiegel said the court ruling amounts to a full-blown showdown between Germany and the European Central Bank over the methods to shore up southern Europe's debt markets. Marcel Fratzscher, head of the DIW Institute, said the ruling greatly constrains the ECB. "A central bank must have unlimited scope for conducting monetary policy. If this prerogative is limited, it undermines credibility. The constitutional court has created fresh uncertainty with this decision," he said. Rather than constituting a great success, OMT may well be remembered as an error born of expediency. Worse, it could undermine the ECB’s hard-won independence and credibility. That is an outcome that the eurozone might not survive.

Zero Hedge: Just as Goldman has predicted (and the market had seemingly hoped would not happen), Janet Yellen, in her first speech as new Fed chair "stayed the course" on the Taper. On growth.: Yellen predicts moderate growth in economy and jobs in 2014, 2015. Yellen says economy gained more traction in 2nd half 2013. On inflation: Yellen expects inflation to move toward 2% `over coming years'. Yellen says some softness in inflation likely to be transitory. On jobs: Yellen says `too many Americans remain unemployed'. Yellen says unemployment rate doesn't give full view of jobs. Yellen says recovery in labor market is `far from complete'. Yellen: main rate likely to be low well past 6.5% jobless rate. Yellen says FOMC likely to continue qe taper in measured steps. Yellen reiterates she `strongly' supports current FOMC policy. On taper:Yellen `committed to achieving both parts of our dual mandate'. Yellen sees `great deal of continuity' in monetary policy. Yellen says bond purchases by fed `not on a preset course'. Yellen: highly accommodative policy appropriate after qe ends. On em risks: Yellen: global market shifts not a big risk to u.s. outlook. Yellen say fed to `continue to monitor for emerging risks.'

Michael Snyder: Today, more than 10,000 Baby Boomers will retire. This is going to happen day after day, month after month, year after year until 2030. It is the greatest demographic tsunami in the history of the United States, and we are woefully unprepared for it. We have made financial promises to the Baby Boomers worth tens of trillions of dollars that we simply are not going to be able to keep. Even if we didn't have all of the other massive economic problems that we are currently dealing with, this retirement crisis would be enough to destroy our economy all by itself. During the first half of this century, the number of senior citizens in the United States is being projected to more than double. As a nation, we are already drowning in debt. So where in the world are we going to get the money to take care of all of these elderly people? The Baby Boomer generation is so massive that it has fundamentally changed America with each stage that it has gone through. When the Baby Boomers were young, sales of diapers and toys absolutely skyrocketed. When they became young adults, they pioneered social changes that permanently altered our society. Much of the time, these changes were for the worse. So where are we going to get the money? That is a very good question. The generations following the Baby Boomers are going to have to try to figure out a way to navigate this crisis. The bright future that they were supposed to have has been destroyed by our foolishness and our reckless accumulation of debt. DS: Michael, get a life, dude! Our nation has been subverted by globalists who used our generation as a debt weapon to destroy the world. Our generation was unsuspectingly led around by the nose by a bunch of Luciferians who are intent upon our complete destruction. They let the easy money roll to build debt that could never be repaid. They let the entitlements roll so that institutions and governments would be saddled with obligations they could never meet. They knew what the demographics and the compound interest numbers were. They designed it to be the way it is, and now they are about to pull the plug on a duped and suborned generation who labored all their life to gain essentially nothing they were promised. Get real, Michael. You are railing on the wrong people. Blame the banker crooks who robbed not only the boomers but the generations to come. Blame the satanists for unleashing free sex, easy divorce, women in the workplace, God is dead, and evolution on the population. Blame the politicians that stole the money from Social Security after we sent them to Congress to balance the budget. Blame the cabalists who blocked every attempt at trying to let the free market play some meaningful part in the retirement planning business and medical care and education. Blame the lying socialists for promising free lunches they could never deliver, but give the guys that actually worked all their lives believing they would get what they worked for a little break, will ya?

****************

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

Quote:

Gold closed up $15.30 at $1290.10 (Comex closing time).

Silver was up 4 cents to $20.14.

In the access market tonight at 5:15 PM:

Gold: $1292.00

Silver: $20.23

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

https://harveyorgan.blogspot.com/2014/02/feb-11gata-ready-to-present-evidence-to.html

Total, Feb(Gold), Mar (Silver), Apr (Gold) Open Interest

In silver:

Quote:

The total silver Comex OI rose by 1580 contracts as silver was up in price to the tune of 15 cents yesterday. The total OI now rests tonight at 147,735 contracts. The non active February silver contract month saw its OI remain constant at 11 contracts. We had 0 notices filed yesterday so we neither gained nor lost any silver contracts standing in February.The next big active delivery month for silver is March and here the OI fell by 3014 contracts to 75,161. First day notice for the silver March contract is Friday, Feb 28.2014.

In Gold:

Quote:

The total gold Comex open interest rose today by 3,145 contracts from 371,037 all the way up to 374,182 as gold was up 11.50 yesterday. In the bigactive month of February the OI fell by 128 contracts to 1,602.We had 118 notices filed yesterday so we lost 10 contracts or 1000 oz will not stand. (no doubt that they were cash settled).The next non active gold contract month is March and here the OI fell by 21 contracts. The next big active contract month is April and here the OI rose by 2924 contracts up to 234,632.

Volume

In Silver:

Quote:

The estimated volume today was excellent coming in at 64,180 contracts. The confirmed volume yesterday was also excellent at 64,539 contracts.

In gold:

Quote:

The estimated volume today was fair at 148,829 contracts. The confirmed volume yesterday was poor coming in at 100,412.

Inventory Numbers

In Silver Inventory:

Quote:

Today, we had fair activity inside the silver vaults.

We had 0 dealer deposits and 0 dealer withdrawals.

Total dealer withdrawal: nil oz

total dealer deposit: nil oz.

We had 2 customer deposits:

i) Into CNT: 56,293.60 oz.

ii) Into Scotia: 221,551.66 oz.

Total customer deposit: 277,845.26 oz.

We had 1 customer (eligible) withdrawals:

i) Out of Delaware: 7000.10 oz.

Total customer withdrawals: 7000.10 oz.

We had 0 adjustments today.

Registered (dealer) silver: 50.732 million oz.

Total of all silver: 182.589 million oz.

In Gold Inventory:

Quote:

We had some activity in the Comex gold vaults today but still no gold enters the dealer.

We had 0 dealer deposits and 1 dealer withdrawal.

i) Out of Scotia: 19,371.875 oz

Total dealer withdrawal; 19,371.875 oz

We had 0 customer deposits:

Total customer deposits: nil oz

We had 1 major customer withdrawal:

ii) Out of Scotia: 7,486.57 oz

Total customer withdrawals: 7,486.57 oz.

Today we had 0 adjustments:

Thus we have the following with respect to JPMorgan's inventory.

JPM dealer inventory remains tonight at 214,097.318 oz or 6.659 tonnes.

Today, 26 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 512 contracts of which 0 notices were stopped (received) by JPMorgan dealer and 23 notices stopped by JPMorgan customer account. Deutsche bank today issued 449 of the 512 contracts and HSBC stopped 115.

The total dealer Comex gold remains tonight at 638,022.651 oz or 19.845 tonnes of gold. However, this inventory will decline once settlement occurs. The total of all Comex gold (dealer and customer) rests at 7,118,444.923 oz or 221.41 tonnes.

Tonight, we have dealer gold inventory for our 3 major bullion banks (Scotia, HSBC and JPMorgan) with its gold inventory resting tonight at only 16.959 tonnes:

i) Scotia: 156,440.000 oz or 4.865 tonnes

ii) HSBC: 174,742.211 oz or 5.435 tonnes

iii) JPMorgan: 2144,097.318 oz or 6.659 tonnes

Total: 16.959 tonnes

Brinks dealer account, which did have the lion's share of the dealer gold, saw its inventory level remains constant tonight at only 88,329.199 oz or 2.747 tonnes. A few months ago Brinks had over 13 tonnes of gold at its registered or dealer account.

Delivery Notices

In silver:

Quote:

The CME reported that we had 0 notices filed for nil oz today.

In gold:

Quote:

Today we had 512 notices served upon our longs for 51,200 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:

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

In silver:

Quote:

To calculate what will stand for this active delivery month of December, I take the number of contracts served for the entire month at 462 x 5,000 oz per contract or 2,320,000 oz to which we add the difference between the OI standing for February (11) minus the number of contracts served today (0) x 5,000 oz.

Thus in summary:

462 contracts x 5000 oz per contract (served) or 2,320,000 oz + (11) OI standing for February - (0) number of notices filed today x 5000 oz = 2,375,000 oz, the same as yesterday.

This is a very good showing for silver in this generally weak delivery month of February.

In gold:

Quote:

In order to calculate what will be standing for delivery in February, I take the number of contracts served so far this month at 3,179 x 100 oz = 317,900 oz to which I add the difference between the open interest standing for February: (1602) x 100 oz minus the notices sent down for today (552) x 100 oz to give us what will stand for the month.

OI Summary:

3179 notices x 100 oz per contracts already served this February month or 317,900 oz + (1602 notices) - (512) notices filed today x 100 oz = 426,900 oz or 13.278 tonnes of gold. We lost 1000 oz of gold standing in this February gold delivery month.

As you will see below we have only 16.959 tonnes in the registered or for sale category for the big 3 (JPMorgan, HSBC, and Scotia) and 19.706 tonnes if you include Brinks. If you include the tiny Manfra, we end up with a total dealer gold of only 19.845 tonnes). We have witnessed little gold enter the dealer except from Brinks and adjustments

Dealer Inventory Summary:

i) the total dealer inventory of gold settles tonight at a very dangerously low level of only 19.845tonnes.

ii) a) JPMorgan's customer inventory rests tonight at 602,530.808 (18.741 tonnes).

ii) b) JPMorgan's dealer account rests tonight at 214,097.318 oz (6.659 tonnes).

iii) the 3 major bullion banks (JPMorgan, HSBC, and Scotia) have collectively only 16.959 tonnes of gold left in their dealer account, and what is totally remarkable is the fact that little gold entered the dealer Comex vaults despite December and February being the busiest months for the gold calender.

In going back over the data for the months of December and January and up to today, we have now had 8 withdrawals from the dealer:

3.7 tonnes

1.92 tonnes

1.669 tonnes (from Brinks on last Thursday in December)

We had 2,700.600 oz (jan 3/2014 from Manfra) or 0.084 tonnes

plus (Jan 9) 1.987 tonnes from Scotia

plus 2.79 tonnes (from Brinks Jan 15.2014)

plus 600.339 oz (.018 tonnes , Feb 6.2014)

plus 19,371.875 (.6025 tonnes Feb 11/2014)

plus 3 adjustments from the dealer to the customer account of 3.806 tonnes + 0.006 tonnes and 3 weeks ago 0.3547 tonnes of HSBC adjustments.

Total: 16.9305 tonnes of gold Comex adjustments.

We had 20.19 tonnes of gold standing for the December contract month and now 0.4914 tonnes for January 2014. Therefore 3.7505 tonnes is left to be settled upon (20.19 tonnes + 0.4914 - 16.9305 tonnes = 3.7505 tonnes).

Thus from the big 3 of JPMorgan, HSBC and Scotia we have a dealer inventory of only 16.959 tonnes which must settle upon the 3.7505 tonnes still outstanding.

Since JPMorgan has stopped 97% of all issuance, if you remove them from the big three, then we have HSBC and Scotia having an inventory of only 10.30 tonnes of gold which must settle upon 3.7505 tonnes of gold still outstanding.

Select Commodity Prices

The Bloomberg Baltic Dry Index (BDI) was 1,091.00, down 0.46%. WTI March crude was 100.34 up 0.30. Brent crude was 108.68 up 0.05. The spread between Brent and WTI was 8.34 down 0.25. The 30 year US Treasury bond was up 0.0300 at 3.6900. The 10 year T-Note was up 0.0400 at 2.7200. The dollar was up 0.00 at 80.62. The PPT/Dow was 15994.77 up 192.98. Silver closed at 20.24 up 0.16. The GSR was 63.7796 up 0.2836 oz of silver per oz of gold. CIA's Facebook was 64.85 up 1.30 (2.05%). March wheat was up 5.50 at 590.250. March corn was down 1.50 at 441.50. April lean hogs were down 0.575 at 94.175. March feeder cattle were up 0.875 at 168.775. March copper was down 0.010 at 3.215. March natural gas was up 0.245 at 4.824. April coal was up 0.17 at 58.05.

Thank you for reading the Harvey Report!

There is much more on Harvey's blog https://harveyorgan.blogspot.com.

Goooood day!

**************

Tue, Feb 11, 2014 - 9:47pm
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Daystar

Awesome

dgfish
Tue, Feb 11, 2014 - 10:08pm
Mr. Fix
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DayStar,

I second that emotion.yessmiley

"When the student is ready, the teacher will appear."
Wed, Feb 12, 2014 - 9:10pm
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RE: Harvey

DGStage and Mr. Fix, thank you.

DayStar

Wed, Feb 12, 2014 - 9:32pm
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~~Harvey 12 Feb 2014

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

News and Commentary

David Stockman (via King World News): The massive Fed trading room is a weapon of financial mass destruction. That’s the point that people need to understand. The whole market is not trading on any kind of fundamentals. It’s trading entirely on the word clouds being emitted by the Fed speakers and the cash which is being massively injected into the market each day. They have totally disabled and corrupted the heart of our financial system. They have turned everyone in the financial markets into Fed-followers and front-runners. It is an extremely foolish and destructive policy, and yet it is now the mainstream view that all of this is for the good. It’s a very crazy time when you really think about where this is leading. The gold market could explode at any moment. I’m not going to even venture a guess as to when that might happen, but clearly it is the asset of final resort when we reach the point where confidence in this whole Ponzi scheme that’s being run by the central banks finally breaks down. It’s almost a sure thing that as we reach the end of this era of massive central bank expansion and domination that the monetary system will break down, the central banks will become totally discredited, and the markets will be in anarchy and dislocation and gold will soar.

Harvey: Today we witnessed gold rise well above the huge resistance level of $1270.00 finishing the Comex session at 1295.30. However in the access market gold buckled to $1292.00. It looks to me like the bankers are intent on whacking gold tomorrow. Last night a whopping 29.5 tonnes was delivered into the SGE (Shanghai Gold Exchange). The previous two days a total of 30 tonnes were delivered into Shanghai. Thus in the last 3 days a total of 60 tonnes entered. (The world produces around 7 tonnes per day on a 5 day week) To measure demand you always use the amount of gold leaving the Shanghai exchange and it will be close to the above figure. As I mentioned to you in the previous commentaries, Shanghai is still getting their gold from the west and this gold is coming from the GLD. Since GLD inventory is rising, the only source for both is the Bank of England. A year ago Alasdair Macleod calculated that the Bank of England had approximately 3500 tonnes of gold left. The global demand for gold now is probably around 6200 tonnes of gold with global supply around 2200 tonnes ex China ex Russia, leaving a deficit of around 4000 tonnes. The Bank of England may have exhausted their supply. No wonder gold has entered into backwardation for the first three months. GLD: Gold was unchanged, which is really good for us, and stands at 798.85 tonnes. SLV: Silver advanced 1.443 million oz and stands at 10,090.68 tonnes.

Tom Fitzpatrick (via King World News): Even though it has been quiet in the silver market, it is beginning to set up quite nicely. We are watching the area around $20.61, after silver has bounced off of what could be a bottoming formation. The bottom will be confirmed when silver breaks above $20.60. A break above $20.60 would mean another $1.60 or so to the topside, which will take silver to the $22.20 area as a double bottom target. There is a also second area of resistance at $23.08, which was the high of the last bounce. Similar to the $1,434 area on gold, if silver can get up and test $25.10, and ultimately get a weekly close above that level, then we would be looking for a move to the upside in excess of $6 from that major breakout point. Meaning, we would look for silver to move well above the $30 level after that key resistance is taken out on the upside. A move on silver from roughly $20 to the $31 area, that would represent a 55% surge, or double the percentage gain that would be seen in the gold market. This would obviously mean the magnitude of the advance in the price of silver would be extremely aggressive.

Mark O'Byrne (GoldCore): The Bank of England is to test whether UK banks and building societies would go bust if house prices crash. A ‘stress test’ will examine whether banks will need bailing out, or bailing in as seems more likely now, if house prices materially correct again. Preparations have been or are being put in place by the international monetary and financial authorities, including the Bank of England for bail-ins. The majority of the public are unaware of these developments, the risks and the ramifications. Ronald-Peter Stoferle (via King World News): Seeing a strong gold price signals a decline in trust in the financial and monetary system, so we believe that it would be naïve to think that gold is exempt from interventions. However, according to Dow theory, the primary trend cannot be manipulated, because the inherent market forces are simply too strong, and according to Ludwig von Mises, Inflation can only be forestalled as long as the opinion prevails that it will come to an end in the foreseeable future. If at some point the conviction has taken over that inflation will never abate again, panic breaks out. Given that the majority of debt was neither redeemed nor written off but has only been transferred, the problem of excessive debt has still not been resolved. Fiscal problems cannot be (sustainably) solved with monetary measures. That would be like sorting out a hardware problem with software updates. Sir Peter Tapsell (UK Parliamentarian): "The whole point about gold, and the quality that makes it so special and almost mystical in its appeal, is that it is universal, eternal and almost indestructible. The Minister will agree that it is also beautiful. The most enduring brand slogan of all time is, ‘As good as gold.’ The scientists can clone sheep, and may soon be able to clone humans, but they are still a long way from being able to clone gold, although they have been trying to do so for 10,000 years. The Chancellor [Gordon Brown] may think that he has discovered a new Labour version of the alchemist’s stone, but his dollars, yen and euros [that for which Brown exchanged Britain's gold] will not always glitter in a storm and they will never be mistaken for gold.” X22Report: If an ice storm can cause this much panic in our major cities, what will a real crisis look like? The biggest news story in the United States right now is the “historic ice storm” that is hammering the South. Travel will be a nightmare, schools and businesses will be closed, and hundreds of thousands of people will lose power. In fact, it is being projected that some people could be without power for up to a week. But at the end of the day, the truth is that this ice storm is just an inconvenience. Yes, the lives of millions of Americans will be disrupted for a few days, but soon the ice will melt and life will be back to normal. Unfortunately, it doesn’t take much for people to start behaving like crazed lunatics. As you will see below, the winter weather is causing average Americans to ransack grocery stores, fight over food items and even pull guns on one another. If this is how people will behave during a temporary weather emergency, how will they behave when we are facing a real disaster? This is a perfect example that shows why it is wise to always have emergency food supplies on hand. According to CNN, all that is left on the shelves of some grocery stores in Atlanta is “corn and asparagus”. As the skies turned heavy, Atlantans cleaned stores out of loaves of bread, gallons of milk, bundles of firewood and cans of beans and beer. In some stores, all that was left were the apparently less-popular corn and asparagus. And according to an Infowars report, some people down in Atlanta were actually getting into fights over basic essentials such as milk and bread. Atlanta residents ransacked neighborhood grocery stores in frantic preparation for their second major snowstorm of the year, waging fights over food items and leaving destruction and empty shelves in their wake, a stunning precursor to what will ensue once a major crisis impacts the U.S. X22Report: “We are 100 percent sure our findings indicate that Microsoft is cleansing search results in the United States to remove negative news and information about China,” reads a recent statement made by GreatFire. “And they are doing this in every market in which they operate in the world.” Bing is presently the second-most-popular search engine on the web, with an 18.2 percent market share making it a distant runner up to Google and its 67.3 percent share as of December. Simon Rabinovitch (ft.com): A 500-tonne gap in China's gold consumption data is fuelling talk that the central bank took advantage of weak prices last year to bulk up its holdings of the precious metal. The last time the Chinese central bank said it increased its gold holdings was nearly five years ago, in early 2009. Officials have since then repeatedly insisted that they do not view gold as a useful asset for diversifying the country's $3.8 trillion mountain of foreign currency reserves. But the latest official figures show that China imported and produced far more gold in 2013 than its citizens bought. This chasm suggests that the central bank was a buyer in the gold market last year in spite of its protestations to the contrary, say analysts. The China Gold Association published data on Monday showing that Chinese demand for gold surged 41 per cent to 1,176 tonnes last year, making it all but certain that China overtook India as the world's biggest consumer of bullion. Speculation has been mounting in recent months that the Chinese central bank might announce updated figures for its gold holdings, but Mr Liu said the recent rebound in prices could lead it to remain quiet, for fear of sparking a jump in the market. The central bank has said the global gold market is too small relative to China's foreign exchange reserves to serve as a viable channel for asset diversification. Even if the Chinese central bank's gold holdings were twice as large as officially reported, they would still account for roughly 2 per cent of the country's official reserves, well below the norm in more developed economies. DS: Bill Holter and others think China already has 5,000-10,000 tonnes, not 2,000 as the article implies. Instead of being 2% of their reserves, they would be more like 5-10%. Besides this, China has been buying mines and mineral deposits all over the world with US Treasuries, and probably has a lot less paper than they are carrying on their books. China has been subsidizing gold mines in China to produce gold costing $2000/oz. They are willing to pay whatever it takes to get it. China has more than they advertise, and the West has next to none while they advertise over 8,000 tonnes (USA). Bill Holter (Miles Franklin): Jim Sinclair answered a question and said "we do have bread lines, you just don't see them...where do you think the 50 million Americans would be without food stamps?". I have written several times on this topic (and try to break things down to a common denominator) yet never "got there" on this one. Subliminally? Yes of course and I'm sure it is the same for you...but, where would these people be? They would be standing in lines all over the country waiting for soup, bread, cheese or whatever...and ON THE NEWS! Can you imagine the "confidence" this would instill? Might this "spill over" elsewhere? "Elsewhere" like into the banking system? Might seeing bread lines cause some depositors to run to their bank and take out at least "some" balances? Well yes of course it would but "technology" plays a bigger role. A "bigger role" just as food stamps do in hiding hunger. Any "run" that occurs...you and I will not see until after the fact. After the fact as in after the bank is closed or "bailed in" with part of your balances saving the bank. You see, any run will be electronic and unless you actually work close enough to the actual transfers (the run), you will never see it. There will be no "lines" cluing you that you need to be "in it". Any bank run of an individual bank or of the system itself will happen obscured by technology's veil, you will only see the "truth"...after the fact. AP (via Zero Hedge): Economic hardship, socialism, starvation, and not enough toilet paper have apparently led to the bloodiest riots in Caracas (Venezuela) in years. As AP reports, at least 2 people were killed as large anti-[President] Maduro protests engulfed the nation's capital. Gunfire erupted in downtown Caracas when armed members of a pro-government vigilante group arrived on motorcycles [DS: Mad Max anyone?] and began firing at more than 100 anti-Maduro student protesters clashing with security forces. As the crowd fled in panic, one demonstrator fell to the ground with a bullet wound in his head. Also killed was the leader of a pro-government 23rd of January collective, as militant supporters of Venezuela's socialist administration call themselves. National Assembly President Diosdado Cabello said the "revolutionary" known by his nickname Juancho was "vilely assassinated by the fascists" but he didn't provide details. While anti-government demonstrators vented frustration over issues ranging from rampant crime to mounting economic hardships, they were united in their resolve to force Maduro out of office by constitutional means. "All of these problems — shortages, inflation, insecurity, the lack of opportunities — have a single culprit: the government," Leopoldo Lopez, a Harvard University-trained former mayor, told a crowd of about 10,000 people gathered at Plaza Venezuela in Caracas. Mortgage applications for home purchases have basically flatlined since the Fed began QE and hover now just above their lowest levels since 1995. The housing data suggests that - somewhat predictably - QE did very little for mom-and-pop organic real home-buyer but stoked speculation and fervor among fast-money cheap-funding investors (and as Marc Faber noted actually hurt the average homebuyer via un-affordability). The week-to-week ebbs and and flows in mortgage applications are notable (this week saw purchase applications drop 5% and back near recent lows) but a bigger picture glance at just where this "recovery" has been tells a very different story about confidence among home-buyers. X22Report: What about you? Are you prepared? We live at a time when our world is becoming increasingly unstable, and it doesn’t take much to imagine a bunch of scenarios in which this nation would be facing a major crisis for an extended period of time:
  • -A major eruption of Mt. Rainier or the Yellowstone supervolcano
  • -The “Big One” hits California
  • -A massive earthquake along the New Madrid fault line
  • -A highly infectious pandemic that kills tens of millions of Americans
  • -Hackers bring down the Internet or crash the banking system
  • -A massive tsunami hits either the east coast or the west coast destroying numerous major cities
  • -A major war erupts in the Middle East and the United States gets involved
  • -A crisis involving North Korea sparks a major war in Asia
  • -A terror attack that specifically targets our power grid
  • -A terror attack involving a weapon of mass destruction in one of our major cities
  • -A terror attack or a major natural disaster causes one or more nuclear facilities in the heart of the United States to experience a “Fukushima-like crisis”
  • -A massive EMP blast that fries our electrical grid and our communications systems
  • -Last but certainly not least, a massive economic collapse that fundamentally changes life in America on a permanent basis

****************

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

Quote:

Gold closed up $5.20 at $1295.30 (Comex closing time).

Silver was up 19 cents to $20.33.

In the access market tonight at 5:15 PM:

Gold: $1292.00

Silver: $20.23

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

https://harveyorgan.blogspot.com/2014/02/feb-12gold-rises-by-500gld-remains.html

Total, Feb(Gold), Mar (Silver), Apr (Gold) Open Interest

In silver:

Quote:

The total silver Comex OI rose by 253 contracts as silver was up in price to the tune of 4 cents yesterday. The total OI now rests tonight at 147,988 contracts. The non active February silver contract month saw its OI remain constant at 11 contracts. We had 0 notices filed yesterday so we neither gained nor lost any silver contracts standing in February.The next big active delivery month for silver is March and here the OI fell by 3630 contracts to 71,531. First day notice for the silver March contract is Friday, Feb 28.2014.

In Gold:

Quote:

The total gold Comex open interest rose today by 2,791 contracts from 374,182 all the way up to 376,973 as gold was up $15.30 yesterday. In the bigactive month of February the OI fell by 541 contracts to 1,061.We had 512 notices filed yesterday so we lost 29 contracts or 2900 oz will not stand. (no doubt that they were cash settled).The next non active gold contract month is March and here the OI fell by 48 contracts. The next big active contract month is April and here the OI rose by 3319 contracts up to 237,951.

Volume

In Silver:

Quote:

The estimated volume today was excellent coming in at 67,522 contracts. The confirmed volume yesterday was also excellent at 73,834 contracts.

In gold:

Quote:

The estimated volume today was poor at 105,947 contracts. The confirmed volume yesterday was good coming in at 162,325.

Inventory Numbers

In Silver Inventory:

Quote:

Today, we had fair activity inside the silver vaults.

We had 0 dealer deposits and 0 dealer withdrawals.

Total dealer withdrawal: nil oz

total dealer deposit: nil oz.

We had 0 customer deposits:

Total customer deposit: nil oz.

We had 2 customer (eligible) withdrawals:

i) Out of CNT: 20,848.49 oz

ii) Out of Delaware: 2,248.000 oz (another perfectly round number)

total customer withdrawals: 23,096.49 oz.

We had 1 adjustment today

i) Out of the Delaware vault: 41,032.306 oz was adjusted out of the customer and this landed into the dealer account of Delaware.

Registered (dealer) silver: 50.773 million oz.

Total of all silver: 182.536 million oz.

In Gold Inventory:

Quote:

We had 0 dealer deposits and 0 dealer withdrawals.

Total dealer withdrawal; nil oz

We had 2 customer deposits:

i) Into Brinks; 385.80 oz

ii) Into HSBC: 4,689.52 oz

Total customer deposits: 5,075.32 oz

We had 1 major customer withdrawal:

ii) Out of Scotia: 20,125.298 oz

Total customer withdrawals: 20,125.298 oz.

It seems everyday we are witnessing withdrawals from Scotia customer account.

Today we had 0 adjustments:

Thus we have the following with respect to JPMorgan's inventory.

JPM dealer inventory remains tonight at 214,097.318 oz or 6.659 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 36 contracts of which 0 notices were stopped (received) by JPMorgan dealer and 2 notices stopped by JPMorgan customer account. Scotia today issued 16 of the 36 contracts and HSBC stopped 23.

The total dealer Comex gold remains tonight at 638,022.651 oz or 19.845 tonnes of gold. However, this inventory will decline once settlement occurs. The total of all Comex gold (dealer and customer) rests at 7,103,394.945 oz or 220.94 tonnes.

Tonight, we have dealer gold inventory for our 3 major bullion banks (Scotia, HSBC and JPMorgan) with its gold inventory resting tonight at only 16.959 tonnes:

i) Scotia: 156,440.000 oz or 4.865 tonnes

ii) HSBC: 174,742.211 oz or 5.435 tonnes

iii) JPMorgan: 2144,097.318 oz or 6.659 tonnes

Total: 16.959 tonnes

Brinks dealer account which did have the lions share of the dealer gold saw its inventory level remains constant tonight at only 88,329.199 oz or 2.747 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 36 notices served upon our longs for 3600 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:

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

In silver:

Quote:

To calculate what will stand for this active delivery month of December, I take the number of contracts served for the entire month at 465 x 5,000 oz per contract or 2,325,000 oz to which we add the difference between the OI standing for February (11) minus the number of contracts served today (1) x 5,000 oz.

Thus in summary:

465 contracts x 5000 oz per contract (served) or 2,325,000 oz + (11) OI standing for February - (1) number of notices filed today x 5000 oz = 2,375,000 oz, the same as yesterday.

This is a very good showing for silver in this generally weak delivery month of February.

In gold:

Quote:

In order to calculate what will be standing for delivery in February, I take the number of contracts served so far this month at 3,215 x 100 oz = 321,500 oz to which I add the difference between the open interest standing for February: (1061) x 100 oz minus the notices sent down for today (36) x 100 oz to give us what will stand for the month.

OI Summary:

3215 notices x 100 oz per contracts already served this February month or 321,500 oz + (1061 notices) - (36) notices filed today x 100 oz = 424,000 oz or 13.188 tonnes of gold. We lost 2,900 oz of gold standing in this February gold delivery month.

As you will see below we have only 16.959 tonnes in the registered or for sale category for the big 3 (JPMorgan, HSBC, and Scotia) and 19.706 tonnes if you include Brinks. If you include the tiny Manfra, we end up with a total dealer gold of only 19.845 tonnes). We have witnessed little gold enter the dealer except from Brinks and adjustments

Dealer Inventory Summary:

i) the total dealer inventory of gold settles tonight at a very dangerously low level of only 19.845tonnes.

ii) a) JPMorgan's customer inventory rests tonight at 602,530.808 (18.741 tonnes).

ii) b) JPMorgan's dealer account rests tonight at 214,097.318 oz (6.659 tonnes).

iii) the 3 major bullion banks (JPMorgan, HSBC, and Scotia) have collectively only 16.959 tonnes of gold left in their dealer account, and what is totally remarkable is the fact that little gold entered the dealer Comex vaults despite December and February being the busiest months for the gold calender.

In going back over the data for the months of December and January and up to today, we have now had 8 withdrawals from the dealer:

3.7 tonnes

1.92 tonnes

1.669 tonnes (from Brinks on last Thursday in December)

We had 2,700.600 oz (jan 3/2014 from Manfra) or 0.084 tonnes

plus (Jan 9) 1.987 tonnes from Scotia

plus 2.79 tonnes (from Brinks Jan 15.2014)

and 600.339 oz (.018 tonnes , Feb 6.2014)

and:19,371.875 (.6025 tonnes Feb 11/2014).

There were 3 adjustments from the dealer to the customer account of 3.806 tonnes + 0.006 tonnes and 3 weeks ago 0.3547 tonnes of HSBC adjustments.

Total: 16.9305 tonnes of gold Comex adjustments.

We had 20.19 tonnes of gold standing for the December contract month and now 0.4914 tonnes for January 2014. Therefore 3.7505 tonnes is left to be settled upon (20.19 tonnes + 0.4914 - 16.9305 tonnes= 3.7505 tonnes).

Thus from the big 3 of JPMorgan, HSBC and Scotia we have a dealer inventory of only 16.959 tonnes which must settle upon the 3.7505 tonnes still outstanding.

Since JPMorgan has stopped 97% of all issuance, if you remove them from the big three, then we have HSBC and Scotia having an inventory of only 10.30 tonnes of gold which must settle upon 3.7505 tonnes of gold still outstanding.

Select Commodity Prices

The Bloomberg Baltic Dry Index (BDI) was 1,085.00, down 0.55%. WTI March crude was 100.32 down 0.02. Brent crude was 108.79 up 0.11. The spread between Brent and WTI was 8.47 up 0.13. The 30 year US Treasury bond was up 0.0300 at 3.7200. The 10 year T-Note was up 0.0400 at 2.7600. The dollar was up 0.08 at 80.70. The PPT/Dow was 15963.94 down 30.83. Silver closed at 20.24 up 0.00. The GSR was 63.8241 up 0.0445 oz of silver per oz of gold. CIA's Facebook was 64.45 down 0.40 (0.62%). March wheat was down 3.25 at 587.000. March corn was down 1.50 at 440.00. April lean hogs were up 0.200 at 94.375. March feeder cattle were down 0.275 at 168.500. March copper was up 0.041 at 3.256. March natural gas was down 0.002 at 4.822. April coal was down 0.15 at 57.90.

Thank you for reading the Harvey Report!

There is much more on Harvey's blog https://harveyorgan.blogspot.com.

Goooood day!

**************

Wed, Feb 12, 2014 - 10:58pm (Reply to #1028)
ajwgator
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Lexington, KY
Joined: Sep 20, 2012
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Thanks Daystar!  I've taken

Thanks Daystar! I've taken some more steps towards becoming a bit more prepared lately. Adding a few ounces of Pb is something that shouldn't be overlooked along with provisions. Sort of telling how a temporary winter storm brings out the greedy side of human nature. Great post tonight.

Thu, Feb 13, 2014 - 10:21pm
DayStar
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~~Harvey 13 Feb 2014

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

News and Commentary

Mark O'Byrne (GoldCore): Asian and European stock markets have resumed their downward slide today which should support gold. In Asia, this ends a five-session winning streak for stocks which had been built on relief that the U.S. Federal Reserve would maintain its ultra loose monetary policies. An objective stress test of the euro zone's biggest banks could reveal a capital shortfall of a whopping 770 billion euros (more than $1 trillion), a study by an advisor to the EU's financial risk watchdog and a Berlin academic has found. Another crisis seems likely given the poor financial state of many banks and this is likely to trigger depositor bail-ins rather than bank bail outs.

Harvey: Today we witnessed gold rise again despite the antics of our banker friends, finishing the Comex session at $1300.30. The bankers seem to be in disarray. [ DS: Lindsey Williams says there are now three factions of them. They are not all playing nice with each other], as they try to quell gold's demand. Late this afternoon we learned that the GLD increased its inventory by a massive 7.5 tonnes of gold. With gold in backwardation, it would be very difficult for the GLD boys to obtain their gold on the open market. They called on the services of the Bank of England who no doubt supplied the necessary metal. We have a plethora of buyers of gold with no sellers. This powder keg is ready to explode. The three front month's GOFO is in backwardation and the 6 month is moving toward backwardation. GLD: WOWWWW!! a massive increase of 7.5 tonnes of gold. Please remember that the GLD is also sending gold down to Shanghai as participants tender shares for metal. This is putting massive pressure on the Bank of England to supply to gold metal to the GLD trust. Sooner or later this ponzi scheme will blow to kingdom come. Gold closed up a humongous 7.5 tonnes and stands at 806.35 tonnes. SLV: Silver was unchanged at 10,090.68 tonnes.

David Stockman (via King World News): I think the great ticking time bomb is interest rate swaps. The last time I checked they were in the range of $500 trillion. Who knows what’s lurking underneath the surface there? All those positions have been put on over a period of years, or even decades, in which the price of bonds has been rising steadily for the last 30 years. But I think we’ve reached the end of that long 32-year interest rate cycle. We are in the turning zone and rates are going to revert to more normal levels over time, and that’s going to fundamentally change the valuation of all of those massive positions ($500 trillion worth) that have been put on. I don’t think anyone has any idea how that will unfold, unravel, and dislocate, but I don’t think it’s neutral. The single greatest danger is that the game the central banks are playing today will come to an abrupt and destructive end. That’s the danger because the whole system is now running off the short-run maneuvers, liquidity, and guidance that the central banks are injecting into the market every day. The danger is that one of these days the whole system will fail because it is unnatural and artificial, and when that happens it’s going to be a pretty difficult (and chaotic) time.

Harvey on Koos Jansen: We should only look at his figures as other data [DS: e.g. World Gold Council], a shill organization seems suspect. Jansen calculates that Jan 2014, China reported 247 tonnes of total demand. All gold whether imported or produced from Chinese mines goes straight into Shanghai and from there it leaves for either: i) demand for gold from its citizenry (hoarding or jewelry fabrication) or ii) goes straight to official coffers. Jansen calculates that Chinese mines produce around 35 tonnes of gold per month. He also calculates that 25 tonnes of gold comes in through scrap. By subtracting the 35 tonnes and the 25 tonnes (scrap) we obtains the figures of 187 tonnes and this is Chinese demand. The world produces ex China ex Russia around 183 tonnes of gold, so in essence Chinese citizenry demand equates to total global demand.

James Turk (via King World News); Gold finally plowed through $1250, and we got the expected move higher. The central planners tried ‘circling the wagons’ at $1,275, but they could not hold that line -- there was just too much buying power behind gold’s surge. As a result, we are now seeing the managed retreat that always occurs when the central planners defensive line is overpowered. Gold’s enemies - the central planners and their bullion bank cohorts that act as agents for the central planners - need to step back and let gold climb higher. But the key question is where will they step in again in an attempt to hold the line and thwart gold’s advance? The logical price level is $1,350, but they may even try to step in here at $1,300. We are seeing some heavy handed selling at current levels. Hundred dollar levels are also key points where short-term traders will often take some profit. Also, gold’s important 200-day moving average, which has been declining since April of last year, is presently $1,304. So bumping up that price level may induce some profit taking at this important technical hurdle. With the 3-day US holiday weekend rapidly approaching, I expect to see more short covering. The shorts must be frantic by now, given gold’s huge price advance over the past couple of weeks and the collapse of the central planners efforts to hold $1,250. In fact, this year has been great so far, with gold off to a wonderful start. It has nearly climbed a spectacular $100 already this year. Most of the attention is being given to gold, rather than silver, and that is understandable, Eric. The squeeze in physical metal is mainly happening in gold so far, which as we speak is still in backwardation. This backwardation is remarkable given gold’s price advance. It shows that holders of physical gold have not been sufficiently enticed to sell and hold dollars or some other national currency instead. It is a sign that gold remains firmly in strong hands, and these gold owners see gold’s upside potential.

James Fitzpatrick (via King World News): Fitzpatrick’s weekly gold chart clearly shows the magnet attracting gold to the $1,434 level and beyond. His 34-year monthly gold chart illustrates that the corrective cycle which was experienced in the gold market was very similar to what was seen from 1974 - 1976 [ DS: Just before gold super spiked into the 1980 blow off top.] His daily silver chart also shows that silver may be setting up for a massive advance while the weekly silver chart reveals the magnet attracting silver to the $25.10 level. His Gold/Silver ratio chart shows that silver may now be set to significantly outperform gold. This means the ratio will plunge as silver outperforms while daily Brent crude oil chart reveals that oil may also be ready for a massive upside breakout. weekly Brent crude oil chart reveals that oil may also be ready for a massive upside breakout. This would potentially send Brent Crude rocketing nearly $40 higher. This breakout will be extremely significant because it is bullish for the entire commodity complex, including gold and silver. Oil has formed a very strong base since 2011 and recently had a bullish weekly reversal after holding the 200 week moving average support line. With bearish sentiment near all-time record levels in gold and silver, the entire commodity space may be ready to stun the bears and send them running for cover with a historic and massive breakout to the upside that will cause an enormous panic from the concentrated shorts.

Gerald Celente: I don't think there is going to be a shift in world superpowers. I think it’s just going to be a decline of all powers. You’re seeing it. China has its own problems. Look, I mean they don’t call it quantitative easing. They have another name for it. But, they did the same thing. The ECB did the same thing. What currencies are you going to go into? Which one? The kroner, maybe? I say that jokingly, because of course you see what happens when people flood into a currency like they did a few years ago with the Swiss franc. Then, what they did is they pegged it back to the euro. No, it’s a global problem. They cannot sustain the growth patterns of the past. Turkey just raised their interest rates, like, overnight over three percent a few days ago, trying to stop the run of the currency out of their market. Look what’s going on with Brazil. Look what’s going on with Argentina and the peso. Look what’s going on with the rand in South Africa. Look what’s going on with the rupee in India. Look what’s going on with the rupee in Indonesia. They’re all raising interest rates to stop the money flows and trying to protect their currencies from crashing. Brilliant. Raise interest rates when your economy’s sinking. That’ll really make things better. Then, you look at what’s going on in the riots going on in Ukraine, the pitchfork movements in Italy, the indignados in Spain. The Golden Dawn discovered a new name in Greece. Then, you look at what’s going on in Thailand, people out in the streets for two months closed down Bangkok. Then, you look at the tensions going on between Japan and China. Then, you go to all of their top news stories in the US, the “presstitute” news, and we just heard that Sarah Jessica Parker weighs in on Christie’s scandal.

Gerald Celente on Silver: Silver also has an industrial value to it where gold has less of one. So, if I look at it as though if economies really go down and production is really low, manufacturing, you’re going to have less demand for silver as a commodity. Where gold is more pegged as a precious metal in terms of safe havens and historical element that goes back to I guess the beginning of the written word of having value. I’m not as well versed on silver to make a good forecast. My best forecast is that silver prices will go up with gold, but I think gold prices are going to go higher in terms of percentage of growth. DS: Silver is at a low dollar value, hence when it moves up a dollar, the percentage move is much greater than when gold goes up a dollar. It is like penny stocks compared to mature stocks. The same dollar value moves a greater percentage when the initial value is low. Silver's global stores are depleted. While there is silver in possession of people, it is closely held (Gresham's law). There are actually very small stores available globally that are available for sale. Besides, consumers buy 50 times the oz of silver than they do gold. IMO, silver will do 60 times better than gold and gold will probably appreciate in purchasing power 50 times what it is today.

Chris Powell: Bob Moriarty criticized GATA on Al Korelin's Korelin Economics Report in a nine-minute interview yesterday for complaining about market manipulation. It was good for Moriarty to come out so far beyond his usual empty sneers and to attempt some argument that can be rebutted. "People with deep pockets have the ability to manipulate the markets," Moriarty said. "It's perfectly legal." Actually, in the United States and other developed countries it's not perfectly legal. While the definition of market manipulation is not always clear, in the United States anti-trust law, securities law, and commodity trading law all seek to forbid market manipulation, as do the regulations of the Federal Trade Commission, the Securities and Exchange Commission, and the Commodity Futures Trading Commission. Prohibited mechanisms of market manipulation include concentration of market share, trading on insider information, and dissemination of false information. Yes, as Moriarty said, market manipulation happens every day. But it happens every day not because it is legal but rather because the rules against it are seldom vigorously enforced. "When someone tells you that something is manipulated, or gold is manipulated," Moriarty said, "he's telling you a half truth," since all markets are manipulated. DS: Yes, from what I can tell, that is true, but having all markets manipulated says we do not have free markets anymore and criminals have taken over our economic system who openly flout the law.

The Doc (SilverDoctors.com): After a slower than average sales month in January due to the US Mint’s shutdown, Silver Eagle sales have picked up significantly in February. In the first eleven days of the month, the U.S. Mint has sold nearly 1.7 million Silver Eagles. On Tuesday, US Mint official Michael White confirmed that demand for Silver Eagles remains so strong that the Mint nearly entirely sold out of its weekly 900,000 sales allocation of ASEs in the first 48 hours of the week. Michael White, Public Affairs person for the U.S. Mint said the reason the U.S. Mint took more time to roll out the 2014 Silver Eagles this year was due to the exceptionally high volume of sales in 2013. They sold 592,000 Silver Eagles on Monday and the total allocation for the week was 900,000 oz. They sold an additional 249,500 Silver Eagles today (Tuesday) for a total of 841,500 coins. Total Silver Eagle sales for Monday & Tuesday hit 841,500 oz. Thus, the U.S. Mint only has 58,500 Silver Eagles to sell to its Authorized Dealers for the rest of the week. Furthermore, Silver Eagle sales continue to outpace Gold Eagle sales in a big way. For the month of February the silver to Gold Eagle Ratio was 154 to 1.

Bill Holter (Miles Franklin) on Yamashita's gold: If there was 170,000 tonnes of gold in Hawaii, someone would have seen it and would talk. There is no vault 40 times bigger than Fort Knox in HI. It is too vulnerable to attack to be stored there. If we did have it, the politicians would have stolen it or rehypothecated it. As far as Yamashita's gold, there was some. Maybe Marcos got it. Maybe the US got some of it. Probably some is still there. None of this changes the fact that "flow" currently is about 2,700 tons coming out of the ground while 5,000 tons are being spoken for each year. Demand is dwarfing supply and the price will reflect this reality by moving higher, much higher to ration demand. Maybe there really is 170,000 tons of gold that the U.S. is saving for a "rainy day" and our leaders knew to only spend dollars and not the gold? Naw, not a chance! Washington DC is (and has been for many years) a 3 ring circus with nothing but clown acts 24/7! Besides, if that gold really did exist at one point ...it would already have been pilfered and stolen in the process of purchasing votes as part of our "standard of living".

Debbie Carlson (Kitco News): Barrick sees a $2.83 billion loss in the fourth quarter and reports a cut to its gold reserves of 26%. Barrick’s losses keep it in company with several other Canadian miners who reported fourth-quarter earnings Wednesday and Thursday, as last year’s 28% drop in gold prices walloped producers’ bottom lines. Kinross (TSX: K, NYSE: KGC) saw 2 cents-per-share loss and Agnico-Eagle (TSX, NYSE:AEM) saw a fourth-quarter loss of 2.61 cents a share. Goldcorp (TSX:G)(NYSE:GG) registered a fourth-quarter loss of $1.34 a share.

Ambrose Evans Pritchard (UKTelegraph): China's Xi Jinping has cast the die. After weighing up the unappetising choice before him for a year, he has picked the lesser of two poisons. The balance of evidence is that most powerful Chinese leader since Mao Zedong aims to prick China's $24 trillion credit bubble early in his 10-year term, rather than putting off the day of reckoning for yet another cycle. This may be well-advised for China, but the rest of the world seems remarkably nonchalant over the implications. Brazil, Russia, South Africa, and the commodity bloc are already in the cross-hairs. "China is getting serious about deleveraging," says Patrick Legland and Wei Yao from Societe Generale. "It is difficult to gently deflate a bubble. There is a very real possibility that this slow deflation may get out of control and lead to a hard landing." Societe Generale has defined its hard landing as a fall in Chinese growth to a trough of 2pc, with two quarters of contraction. This would cause a 30pc slide in Chinese equities, a 50pc crash in copper prices, and a drop in Brent crude to $75.

****************

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

Quote:

Gold closed up $5.10 at $1300.40 (Comex closing time).

Silver was up 5 cents to $20.38.

In the access market tonight at 5:15 PM:

Gold: $1302.60

Silver: $20.50

Wednesday, Feb 12th Gold and Silver Action (basis 1:30 PM EST)

https://harveyorgan.blogspot.com/2014/02/thursday-feb-13gld-advances-by-massive.html

Total, Feb(Gold), Mar (Silver), Apr (Gold) Open Interest

In silver:

Quote:

The total silver Comex OI rose by a huge 3592 contracts as silver was up in price to the tune of 19 cents yesterday. The total OI now rests tonight at 151,580 contracts as it seems that some big entity is willing to take on the silver bankers. The non active February silver contract month saw its OI remain constant at 11 contracts. We had 1 notice filed yesterday so we gained 1 contract or 5,000 oz of additional silver will stand in February.The next big active delivery month for silver is March and here the OI fell by only 2835 contracts to 68,696.We are now two weeks away from first day notice, on Friday, Feb 28.2014. The estimated volume today was good coming in at 38,597 contracts. The confirmed volume yesterday was humongous at 91,557 contracts. The bankers supplied the non backed paper.

In Gold:

Quote:

The total gold Comex open interest fell today by 734 contracts from 376,973 all the way down to 376,239 as gold was up $5.20 yesterday. In the bigactive month of February the OI fell by 47 contracts to 1,014.We had 36 notices filed yesterday so we lost 11 contracts or 1100 oz will not stand. (no doubt that they were cash settled).The next non active gold contract month is March and here the OI rose by 26 contracts. The next big active contract month is April and here the OI fell by 1187 contracts to 236,764.

Volume

In Silver:

Quote:

The estimated volume today was good coming in at 38,597 contracts. The confirmed volume yesterday was humongous at 91,557 contracts. The bankers supplied the non backed paper.

In gold:

Quote:

The estimated volume today was poor at 117,938 contracts. The confirmed volume yesterday was fair coming in at 123,355.

Inventory Numbers

In Silver Inventory:

Quote:

Today, we had good activity inside the silver vaults.

We had 0 dealer deposits and 0 dealer withdrawals.

Total dealer withdrawal: nil oz

total dealer deposit: nil oz.

We had 0 customer deposits:

Total customer deposit: nil oz.

We had 1 huge customer (eligible) withdrawals:

i) Out of HSBC: 1,384,755.675 oz.

Total customer withdrawals: 1,384,755.675 oz.

We had 0 adjustments today.

Registered (dealer) silver: 48.426 million oz.

Total of all silver: 158.639 million oz.

Somehow we lost 23.897 million oz of total silver. Yesterday total silver 182.536 million oz and today: 158.639 million oz. We had one single withdrawal of 1.384 million oz so the figures today are garbled.

In Gold Inventory:

Quote:

We had 0 dealer deposits and 0 dealer withdrawals.

Total dealer withdrawal; nil oz

We had 1 customer deposit:

i) Into HSBC: 20,125.298 oz (and this came by way of a withdrawal yesterday from Scotia)

Total customer deposits: 20,125.398 oz

We had 0 customer withdrawals:

Total customer withdrawals:nil oz.

Today we had 1 adjustment:

i) Out of Scotia vault: 101.55 oz was adjusted out of the dealer and into the customer (a settlement)

Thus we have the following with respect to JPMorgan's inventory.

JPM dealer inventory remains tonight at 214,097.318 oz or 6.659 tonnes

Today, 4 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 63 contracts of which 0 notices were stopped (received) by JPMorgan dealer and 2 notices stopped by JPMorgan customer account. Scotia today issued 59 of the 63 contracts.

The total dealer Comex gold remains tonight at 638,022.651 oz or 19.84 tonnes of gold. However, this inventory will decline once settlement occurs. The total of all Comex gold (dealer and customer) rests at 7,123,520.243 oz or 221.57 tonnes.

Tonight, we have dealer gold inventory for our 3 major bullion banks (Scotia, HSBC and JPMorgan) with its gold inventory resting tonight at only 16.957 tonnes:

i) Scotia: 156,338,450 oz or 4.863 tonnes

ii) HSBC: 174,742.211 oz or 5.435 tonnes

iii) JPMorgan: 2144,097.318 oz or 6.659 tonnes

Total: 16.957 tonnes

Brinks dealer account which did have the lions share of the dealer gold saw its inventory level remains constant tonight at only 88,329.199 oz or 2.747 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 0 notices filed for nil oz today.

In gold:

Quote:

Today we had 63 notices served upon our longs for 6300 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:

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

In silver:

Quote:

To calculate what will stand for this active delivery month of February, I take the number of contracts served for the entire month at 465 x 5,000 oz per contract or 2,325,000 oz to which we add the difference between the OI standing for February (11) minus the number of contracts served today (0) x 5,000 oz.

Thus in summary:

465 contracts x 5000 oz per contract (served) or 2,325,000 oz + (11) OI standing for February - (0) number of notices filed today x 5000 oz = 2,380,000 oz, the same as yesterday.

We gained 5000 oz of additional silver standing for the Feb contract month.

This is This is a very good showing for silver in this generally weak delivery month of February.

In gold:

Quote:

In order to calculate what will be standing for delivery in February, I take the number of contracts served so far this month at 3,278 x 100 oz = 327,800 oz to which I add the difference between the open interest standing for February: (1014) x 100 oz minus the notices sent down for today (63) x 100 oz to give us what will stand for the month.

OI Summary:

3278 notices x 100 oz per contracts already served this February month or 327,800 oz + (1014 notices) - (63) notices filed today x 100 oz = 422,900 oz or 13.153 tonnes of gold. We lost 1100 oz of gold standing in this February gold delivery month.

As you will see below we have only 16.957 tonnes in the registered or for sale category for the big 3 (JPMorgan, HSBC, and Scotia) and 19.704 tonnes if you include Brinks. If you include the tiny Manfra, we end up with a total dealer gold of only 19.84 tonnes). We have witnessed little gold enter the dealer except from Brinks and adjustments

Dealer Inventory Summary:

i) the total dealer inventory of gold settles tonight at a very dangerously low level of only 19.84tonnes.

ii) a) JPMorgan's customer inventory rests tonight at 602,530.808 (18.741 tonnes).

ii) b) JPMorgan's dealer account rests tonight at 214,097.318 oz (6.659 tonnes).

iii) the 3 major bullion banks (JPMorgan, HSBC, and Scotia) have collectively only 16.957 tonnes of gold left in their dealer account, and what is totally remarkable is the fact that little gold entered the dealer Comex vaults despite December and February being the busiest months for the gold calender.

In going back over the data for the months of December and January and up to today, we have now had 8 withdrawals from the dealer:

3.7 tonnes

1.92 tonnes

1.669 tonnes (from Brinks on last Thursday in December)

We had 2,700.600 oz (Jan 3/2014 from Manfra) or 0.084 tonnes

plus (Jan 9) 1.987 tonnes from Scotia

plus 2.79 tonnes (from Brinks Jan 15.2014)

and 600.339 oz (.018 tonnes , Feb 6.2014)

and: 19,371.875 (.6025 tonnes Feb 11/2014)

and: 100.55 oz (.00315 tonnes Feb 13.2014)

plus 3 adjustments from the dealer to the customer account of 3.806 tonnes + 0.006 tonnes and 3 weeks ago 0.3547 tonnes of HSBC adjustments.

Total: 16.9336 tonnes of gold Comex adjustments.

We had 20.19 tonnes of gold standing for the December contract month and.4914 tonnes for January 2014 (at the conclusion of February I will add that to the total). Therefore 3.7478 tonnes is left to be settled upon (20.19 tonnes + 0.4914 - 16.9336 tonnes= 3.7478 tonnes).

Thus from the big 3 of JPMorgan, HSBC and Scotia we have a dealer inventory of only 16.957 tonnes which must settle upon the 3.7478 tonnes still outstanding.

Since JPMorgan has stopped 97% of all issuance, if you remove them from the big three, then we have HSBC and Scotia having an inventory of only 10.298 tonnes of gold which must settle upon 3.7478 tonnes of gold still outstanding.

Select Commodity Prices

The Bloomberg Baltic Dry Index (BDI) was 1,097.00, up 1.11%. WTI March crude was 100.23 down 0.09. Brent crude was 108.73 down 0.06. The spread between Brent and WTI was 8.50 up 0.03. The 30 year US Treasury bond was down 0.0300 at 3.6900. The 10 year T-Note was down 0.0200 at 2.7400. The dollar was down 0.39 at 80.31. The PPT/Dow was 16027.59 up 63.65. Silver closed at 20.49 up 0.25. The GSR was 63.5822 down 0.2419 oz of silver per oz of gold. CIA's Facebook was 67.33 up 2.88 (4.47%). March wheat was up 8.50 at 595.500. March corn was up 0.50 at 440.50. April lean hogs were up 0.550 at 94.925. March feeder cattle were up 2.225 at 170.725. March copper was down 0.006 at 3.250. March natural gas was up 0.401 at 5.223. April coal was up 0.55 at 58.45.

Thank you for reading the Harvey Report!

There is much more on Harvey's blog https://harveyorgan.blogspot.com.

Goooood day!

**************

Fri, Feb 14, 2014 - 1:03am
glimas
Offline
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Phoenix, AZ
Joined: Sep 18, 2012
46
252

Thanks again as usual

The QEen has got a lot of fingers, she's a holding it all together. Still wouldn't you love to be a fly on the wall at the Fed. The cauldron is a boiling, but will is boil over today, tomorrow, next week or next year or? All seems well, but you must ask how can the QEen keep a watchful eye on all markets, bonds, states, EM's etc and fix, plug, loan, bribe, beg, suicide all problems away without missing a one? Sooner or later she is gonna miss or miscalculate a response to a situation and it will all boil over. The cracks in the damn are getting more and more apparent. God help us one and all.

I am off to the range tomorrow to work on some plate racks, steel and to confirm point of impact on my 223 for javelina season which starts in 2 weeks. Fantasy land is just grand, wish it could last forever. Gods speed to you Daystar thanks for the update and your twist as usual.

Fri, Feb 14, 2014 - 7:21am
DayStar
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14106

RE: Control

Thanks, glimas, for the kudos. Of course, the bankers are just human and can make mistakes, but their ultimate source of power is the Devil, and he is not human nor mortal, so he provides cohesion and continuity to the plan. Also, the elites have the math to control the economy. The economy is like fluid flow and thus subject to the laws of fluid mechanics. They can devise control systems like for a petroleim fracking plant. It could blow up, but the elaborate control systems prevent it. There are so many redundant systems that even if one gets away, the others can provide the needed control. The bankers now control nearly every country in the world, even the backward places. The only thing that can save men now is divine intervention, and you have to be right with God for that to be a hope, because God is going to purge wickedness.

DayStar

Fri, Feb 14, 2014 - 12:50pm
DayStar
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14106

RE: Control/Addendum

Glimas, I need to add a note to my previous remarks. The issue under discussion is control, yet it appears we are sliding into chaos where the elites have lost control. What I neglected to mention is that the elites are exercising control to move us into chaos. Chaos is the desired outcome. So when you see chaos occur, and you think, "Aha! They have lost control!", reflect on the fact that chaos is what they intended. Their objective is to thin the herd and to seize control of everything, and inducing chaos is the way to do it. They have exercised precise control to wreck the global economy and force wealth to move into their hands. Meanwhile, they essentially have traded the central gold of most of the nations of the world for chaos from which they will emerge owners of the world. The used the physical gold to suppress the price of gold and shore up the dollar while they robbed everyone blind. They intend to recoup their loss of the metal on the back side as they seize control of everything. They have moved all of the gold east so that the two major western empires (Britain and the US) will have no basis for their economy nor any collateral to pledge to get money to wage a war. They may also anticipate the disasters in the USA in which much of the country will be physically ruined, and they wanted to move the gold to safer location. 

DayStar

Sat, Feb 15, 2014 - 8:18am
DayStar
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~~Harvey 15 Feb 2014

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

FDIC Bank Seizure Report

The FDIC did not seize any banks this week.

Commitment of Traders Report

Gold: The bankers went net short again this week by a huge 6872 contracts, and gold breaks up through its 200 day moving average. it is very difficult to make any sense of this data. The data suggests a bearish tone.

Silver: Again from the commercial side of things the silver COT is bearish, as they went net short by 7565 contracts and silver is up quite dramatically these past few weeks.

News and Commentary

John Williams (Shadow Government Statistics): If the economy will not grow, just redefine it. The US economy continues to stagnate and turn down anew, as part of the deepest and longest economic downturn seen since the Great Depression. With actual business activity moribund, the US government once again has turned to redefining a major economic series, so as to boost a reported activity.

Richard Russell (via King World News): I hesitate to say this because it's so extreme, but I believe the world is in a depression. We're being lied to by a frightened and desperate government and Federal Reserve. Sooner or later the US public is going to realize that we're in a depression. The government and the Fed will fight the gathering depression with lies and propaganda. To fight the depression, the Fed will open the money spigots wide, creating new trillions of “dollars.” Some wise investors are aware of all this, which is why gold continues to push higher. IF we had the actual gold, I feel that the US would unilaterally raise the price of gold to $5,000 or $10,000 an ounce. The government is not doing this because we don't have the gold. Once the news of the US gold reserves being depleted is out, this will result in an unbelievable scandal. Once the dollar index closes below 80, the fireworks should start. How many items can the Fed manipulate? Sooner or later the Fed will lose its grip on bonds, the dollar, stocks or gold. I think gold over 1300 suggests that the Fed is losing its grip. Actual physical gold is becoming scarce. With gold climbing over $1300 today, we've seen the end of bargain-priced gold.

Harvey: Today we witnessed gold rise again despite the antics of our banker friends, finishing the Comex session at $1318.50. The big winner today was silver which broke the 20 dollar barrier to finish the day at $21.41. Gold is now at the next resistance level and if we penetrate $1320, sky is the limit. With silver, the next resistance level is around $23.50. The huge rise in the silver price and the speed of the rise has caught the silver shorts in a huge panic. If silver explodes into the 23 level barrier one will witness a lot of blood on the streets. GOFO rates are still moving strongly to the negative in direction. All are months moving towards backwardation with the first THREE months already in backwardation. GLD: Gold lost 5.1 tonnes and stands at 801.25. SLV: Silver was unchanged at 10,090.68.

William Kaye (via King World News): The main argument for there not being another 400 tonnes beat down at these levels is the physical off-take in China is enormous at the moment. For the suppression scheme to succeed, there has to be an ability to deliver gold that is under the control of the cartel from places like London and Switzerland, to Shanghai and Hong Kong, and to be able to do it in reasonably short order. So my take on why we’ve seen this retreat by the cartel is that at these price levels demand for physical is simply too great. It strains their ability to meet these obligations if they try to keep the price below $1,300 any longer. So the bias I have at the moment is gold will continue migrating higher until some of these strains get removed. In the near-term, the GOFO lease rates have gone negative and gold has stayed consistently in backwardation territory for the last several weeks and even months. So unless some of these strains get removed, gold will migrate higher to the low-to-mid $1,400s before it becomes a vicious battle again.

Mark O’Byrne (GoldCore): Gold is up 3.3% this week and headed for the biggest weekly advance since October as U.S. economic data was again worse than expected. This increased safe haven demand and the biggest exchange-traded product saw holdings rise to a two-month high. Call options on gold, giving the buyer the right to buy June 2015 futures at $2,200 an ounce, surged 24% to a five-week high as prices climbed to a three-month high. Gold has traded above the 100 day moving average since February 10, and is heading for a close above the 200 day moving average for the first time since February 2013. A weekly close above the 200 day moving average [DS: It did] and the psychological level of $1,300/oz will be very positive for gold and could lead to gold challenging the next level of resistance at $1,357/oz and $1,434/oz. Gold is up 5.3% so far in February and 9.3% so far this year as concerns about emerging market markets, currencies, and the U.S. economy boosted safe haven demand. Recent employment and sales data was poor. U.S. jobless claims reached 339,000 in the week ended February 8 and retail sales in the U.S. declined in January by the most in 10 months.

Egon von Greyerz (via King World News): On the surface it looks like there is deflation on the way. Japan is failing to inflate and China is tightening because of the problems in their banking system and shadow banking system. The EU banking system has also restricted lending. This has led to the ECB having reduced its balance sheet substantially. In the US there is now tapering of $20 billion per month. If this continues we will have a deflationary implosion of the world economy. We will have a total collapse of the financial system because the massive debt cannot be repaid in that environment. Central bankers are aware of this but they seem to either be totally paralyzed or perhaps overconfident in their ability to reflate if necessary. Judging by Japan and Europe, it’s much harder to reflate than these central bankers would imagine. Printing money at current levels no longer has any effect, and interest rates are already at virtually zero. Governments also know that a deflationary implosion will also lead to a total loss of power and control. This would just usher in anarchy. So let me again state that money printing is not the solution. Worthless pieces of paper cannot create wealth. Whether central banks print or don’t print wealth, they are doomed because either alternative is catastrophic for the world. They are just a different way of reaching the end game. As Ludwig von Mises said, ‘There is no way of avoiding the final collapse.’ This collapse will be a final catastrophe for the already fragile global fiat currency system. I agree with what Ludwig von Mises said because either way the collapse will take place. But even though there are signs of deflation in the economy, the markets are telling us something different. DS: I like von Greyerz a lot, because he is not afraid to face the collapse that is surely coming. What he fails to recognize, though, is a a deflationary implosion will NOT lead to a total loss of power and control. What it will do is destroy civilization, reduce the world population significantly, and allow for the elites to seize control, which they will do.

Egon von Greyerz on the price of gold: The markets are setting up for hyperinflation in many countries because of excessive money printing, leading to collapsing currencies. The gold price will simply continue to reflect the falling currencies. Initially we will have an orderly rise of gold and silver, but in the next few years financial markets will not be orderly. As a result of the major structural problems in the world and in the world economy and in the financial system, there will be collapses of currencies and money printing will become disorderly. This will lead to an exponential rise in gold and silver, and we won’t just reach my longstanding target of $10,000+ for gold, but also Jim Sinclair’s $50,000 figure. And if the $1.4 quadrillion derivatives bubble blows up, we could easily see gold at a Weimar price level, which was $100 trillion. the good part of all of this is the network of family and friends will again become the core of society, just as this is happening in Greece today. Those people who are prepared will not only be able to survive but also thrive and even help to rebuild society into a much better place when all of the chaos finally comes to an end. But time is running short to prepare, and people should be aware of that. DS: This time the world will not be rebuilt into a much better place. The NWO/Rome will take over the world and treat it as their own play ground and take what they choose, never mind the consequences that come to those from whom they take it. I think that eventually the economy will prosper for a short time, ca. AD 2023-2030, but it will be a much less populated world than now, and free men will be a scarce commodity. Rome will be overrun in 2033-2034 by the Antichrist, and he will rule in declining darkness for the last 3.5 years of the age. These next 25 years will not be a golden age. They will be the age of clay mixed with iron, the dregs of by-gone glory days. These are the end of days. Darkness lies ahead before the dawn of a new age (ca. AD 2037).

Mark O'Byrne (GoldCore): In her testimony to Congress, Yellen confirmed that she is set to be remain dovish and will continue with QE in the billions per month and maintain interest rates near zero. Yellen said the markets should expect the central bank to continue to follow the ultra low-interest-rate path laid out by her predecessor. She failed to outline the exit strategy of how and when the U.S. might be able to wean itself off the drug that is cheap money and debt monetisation. It is important to note that while the U.S. money supply did not increase much in the final year of Bernanke’s stewardship of the Fed, it has accelerated as he leaves and Yellen takes over. Money supply in the form of M2 has surged in January and February and has doubled in pace so far this year.

William Kaye (via King World News): The official story is that we have five suicides. And no one is attempting to connect the dots. No one is digging beneath the surface. These were not people who fit any kind of clinical description of being depressed or having given up on life. They were all making pretty decent money and very successful in their careers. The common denominator in at least four of those supposed suicides is they were senior officials for banks that were very knowledgeable about the manipulation of gold and FOREX markets, and were possibly involved in complicated derivative operations or programming source codes. This all would have been focused on the high-frequency trading that would result in the manipulation of these markets. These are criminal banking institutions and they work together as a criminal banking syndicate. So it’s reasonable to believe that they would behave just as a criminal syndicate in this situation would behave. Meaning, they would order people who were a severe threat to exposing their abuse of these markets to be taken out or killed. That’s what Tony Soprano would do. Why would these criminal banksters operate any differently?

Alasdair Macleod (GATA): Hong Kong's exports of 211 tonnes to China are fabricated gold not destined for the SGE. In addition there are 1,284 tonnes of re-exports, which we can assume are bars for onward delivery to the SGE so are included in the SGE delivery total. Hong Kong also imports gold from China (337 tonnes), most of which is sold as jewellery to Chinese visitors from the mainland avoiding Chinese sales taxes. Hong Kong also acts as a regional hub, exporting and re-exporting gold to Taiwan, Thailand, India etc., which in 2013 amounted to 54 and 93 tonnes respectively.

Total demand in China and Hong Kong adjusted for these factors is therefore the bottom-line figure of 2,668 tonnes. This does not include gold imported directly through Mainland China and gold not sold through the SGE. Furthermore, ultra-rich Chinese can buy gold outside China and there is no way this additional demand can be estimated. Nor can we estimate any gold bought in London and elsewhere by the Chinese government. Lastly, these figures do not include the net 48.5 tonnes of gold coin imported into China via Hong Kong, which if included takes known gold demand up to 2,716.5 tonnes. This is easily more than double the Chinese Gold Association figure for "gold consumption. DS: Alsdair does not believe that gold from Chinese mining companies enters the Shanghai gold exchange. The government gets all of the domestic mine production. Harvey says, "Chinese demand for gold (ex gold going to official reserves) [is] at 2716 tonnes. World gold production is 2200 tonnes (ex China, ex Russia). No wonder the Bank of England is in deep distress and [they] are taking migraine medication."

Peter Cooper (Arabian money): The prospect of another very strong rally in precious metal prices is growing by the day. An imminent stock market crash will transform the outlook for PM prices which have already confounded gloomy predictions for 2014 with a New Year rally [January and February] while share prices have fallen. Despite the collapse from almost $50 back to $18.50 since then and the recent rally this year, silver remains in a long-term secular bull market that started in 2000. What looks like a price disaster is actually an amazing buying opportunity. Take the experience of 2008-11. Silver went on a huge roller-coaster. Down 60 per cent in the crash and then rallying 600 per cent from the bottom of the sell-off. Buy-and-hold guys tripled their money by the market top in April 2011.

Bill Holter (Miles Franklin): It is exactly BECAUSE the charts have been painted so beautifully that a breach of the 200 day moving average is very important...AND telling us something! It tells me that they have again lost or are losing control and that MUCH higher prices are coming. Is gold a signal? Or is it a "symptom"? Yes. I think that all of the above is tied together and that some sort of deal was struck recently in Davos. In my opinion, "we know" about it which is why the debt limit was eliminated so that we can play "internal ponzical chairs" to fund the game. I believe that we will need to "internally fund" because the demand for dollars is about to collapse as the "petro put" that has supported it for so long is pulled. Much of the above is speculation but, much of it is simply putting the pieces of the puzzle together logically. Whatever it is, gold rising above its 200 day moving average is saying that something has changed, maybe it's financial or maybe it's a military action...but whatever it is it's probably not for the better. We shall see.

Bill Holter on Bitcon: I am and have been of the opinion that Bitcoin is a dry run or trial balloon for what will come after the current system collapses. Whatever it's called, it will be "cyber" in nature. I also find it highly unusual that JP Morgan sent out a "hit piece" prior to the flash crash. Are they a part of this? I would be shocked if they were not. But here is the problem as I see it. Bitcoin, though it's supposed to be limited in quantity to 21 million "units" is not "backed" by anything. And we just saw the "flaw" that is so in your face that it's dumb. What if there are NO exchanges open...or the internet is down? These "wallets" cannot transact and basically have no "value". Bitcoin is an alternative currency yes but IT goes up and down versus the dollar. Gold is not really an alternative "currency", it is alternative "savings" which is very different. In reality gold does not "go up and down", the dollar does! This is the big difference as I see it. Any currency that can lose 80% of its value in the course of 1 minute...??? Sorry, this does not fit the bill for any bricks and mortar type business in my opinion. There are other potential problems with Bitcoin, the biggest being that it is "man made" and if the original code can be written it can also be hacked. Call me old fashioned if you want and browbeat me with as many "digits" as you'd like, you'll never convince me that if you cannot stand face to face with a "trader" under any conditions (including power outage, internet killed switch or the aftermath of an EMP etc.) and "make a deal" then what you have to trade is not "money". I highly doubt that Bitcon will be the new global currency that is sure to arise, but regardless of what arises, just as it has alwasys been, you are best to save natural money and you spend man made money. That is what is mean by "good money drives out bad".

Zero Hedge: Chinese capital markets are quietly turmoiling as debt issues are delayed and demand for "Trust" products - the shadow-banking-system's wealth management 'investments' - is tumbling. This, of course, is exactly what the PBOC wanted (to instill some fear into these high-yield investors - demand - and thus slow the supply of credit to the riskiest over-capacity companies) but as non-performing loans in China surge to post-crisis highs, fear remains prescient that they will be unable to "contain" the problem once real defaults begin.

Raul Gallegos (Bloomberg): With the highest inflation on earth, rampant violence, declining oil output and a hobbled private sector, Venezuela seems instead to be on a sustainable path to economic ruin. DS: Everyone has heard about the economic turmoil in Venezuela. IMO, it's the bankers that are doing it. It's the same techniques the elites have used over and over when a country goes rogue. First they get rid of the competent rogue leader (e.g. Hugo Chavez, Ferdinand Marcos), which in Chavez case was through elite induced cancer. Then they use the country's central bank to starve capital and inflate the money supply supply. This begins a capital destruction cycle where money flees the country and exacerbates the problem. When people can't eat, there is always unrest. They will continue the process in Venezuela until they get a government that is completely under their control, and then the central bank will loosen the money supply, and things will get better.

****************

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

Quote:

Gold closed up $18.60 at $1319.00 (Comex closing time).

Silver was up $1.03 to $21.41.

In the access market tonight at 5:15 PM:

Gold: $1318.50

Silver: $21.48

Thursday, Feb 13th Gold and Silver Action (basis 1:30 PM EST)

https://harveyorgan.blogspot.com/2014/02/feb-14-valentines-daygold-rises-to.html

Total, Feb(Gold), Mar (Silver), Apr (Gold) Open Interest

In silver:

Quote:

The total silver Comex OI fell by 1464 contracts as silver was up in price to the tune of 5 cents yesterday. The total OI now rests tonight at 150,116 contracts. The non active February silver contract month saw its OI remain constant at 11 contracts. We had 0 notice filed yesterday so we neither gained nor lost any silver standing in this silver contract month of February. The next big active delivery month for silver is March and here the OI fell by only 3,249 contracts to 65,447. We are now two weeks away from first day notice, on Friday, Feb 28.2014 and the March OI is extremely high for this time in the delivery cycle month.

In Gold:

Quote:

The total gold Comex open interest rose today by 5600 contracts from 376,239 all the way up to 381,839 as gold was up $5.10 yesterday. In the bigactive month of February the OI fell by 201 contracts to 813.We had 63 notices filed yesterday so we lost 138 contracts or 13,800 oz will not stand. (no doubt that they were cash settled).The next non active gold contract month is March and here the OI fell by 26 contracts. The next big active contract month is April and here the OI rose by 5,264 contracts to 242,028.

Volume

In Silver:

Quote:

The estimated volume today was humongous at 79,345 contracts. The confirmed volume yesterday was excellent at 55,817 contracts. The bankers still supplied the non backed paper.contracts.

In gold:

Quote:

The estimated volume today was fair at 145,985 contracts. The confirmed volume yesterday was in the same ballpark coming in at 136,379. Investors are still shying away from the gold Comex.

Inventory Numbers

In Silver Inventory:

Quote:

Today, we had tiny activity inside the silver vaults.

We had 0 dealer deposits and 0 dealer withdrawals.

Total dealer withdrawal: nil oz

total dealer deposit: nil oz.

We had 1 customer deposit:

i) Into CNT: 553,537.90

Total customer deposit: 553,537.90 oz.

We had 1 customer (eligible) withdrawals:

i) Out of CNT: 175,262.31 oz.

Total customer withdrawals: 175,262.31 oz.

We had 1 adjustment today

i) Out of Delaware: 6045.10 oz was adjusted out of customer account of Delaware due to a counting error.

Registered (dealer) silver: 50.773 million oz.

Total of all silver: 181.524 million oz. (we got back our missing 24 million oz of silver after I alerted the CFTC)

In Gold Inventory:

Quote:

We had 1 dealer deposit and 0 dealer withdrawals.

i) Into Brinks: 2199.93 oz

Total dealer deposits: 2199.93 oz

Total dealer withdrawal; nil oz

We had 0 customer deposits:

Total customer deposits: nil oz

We had 0 customer withdrawals:

Total customer withdrawals:nil oz.

Today we had 0 adjustment:

Thus we have the following with respect to JPMorgan's inventory.

JPM dealer inventory remains tonight at 214,097.318 oz or 6.659 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 8 contracts of which 0 notices were stopped (received) by JPMorgan dealer and 0 notices stopped by JPMorgan customer account. Scotia today issued 8 of the 8 contracts. (HSBC and Barclays stopped)

The total dealer Comex gold remains tonight at 640,121.031 oz or 19.91 tonnes of gold. However, this inventory will decline once settlement occurs. The total of all Comex gold (dealer and customer) rests at 7,125,720.013 oz or 221.63 tonnes.

Tonight, we have dealer gold inventory for our 3 major bullion banks(Scotia, HSBC and JPMorgan) with its gold inventory resting tonight at only 16.957 tonnes.

i) Scotia: 156,338,450 oz or 4.863 tonnes

ii) HSBC: 174,742.211 oz or 5.435 tonnes

iii) JPMorgan: 2144,097.318 oz or 6.659 tonnes

total: 16.957 tonnes

Brinks dealer account which did have the lions share of the dealer gold saw its inventory level remains constant tonight at only 90,529.129 oz or 2.815 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 0 notices filed for nil oz today.

In gold:

Quote:

Today we had 8 notices served upon our longs for 800 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:

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

In silver:

Quote:

To calculate what will stand for this active delivery month of December, I take the number of contracts served for the entire month at 465 x 5,000 oz per contract or 2,325,000 oz to which we add the difference between the OI standing for February (11) minus the number of contracts served today (0) x 5,000 oz.

Thus in summary:

465 contracts x 5000 oz per contract (served) or 2,325,000 oz + (11) OI standing for February - (0) number of notices filed today x 5000 oz = 2,380,000 oz, the same as yesterday.

we neither gained nor lost any silver oz standing for the Feb contract month.

This is This is a very good showing for silver in this generally weak delivery month of February.

In gold:

Quote:

In order to calculate what will be standing for delivery in February, I take the number of contracts served so far this month at 3,286 x 100 oz = 328,600 oz to which I add the difference between the open interest standing for February: (813) x 100 oz minus the notices sent down for today (8) x 100 oz to give us what will stand for the month.

OI Summary:

3286 notices x 100 oz per contracts already served this February month or 328,600 oz + (813 notices) - (8) notices filed today x 100 oz = 409,100 oz or 12.72 tonnes of gold. We lost 13,800 oz of gold standing in this February gold delivery month.

As you will see below we have only 16.957 tonnes in the registered or for sale category for the big 3 (JPMorgan, HSBC, and Scotia) and 19.772 tonnes if you include Brinks. If you include the tiny Manfra, we end up with a total dealer gold of only 19.91 tonnes). We have witnessed little gold enter the dealer except from Brinks and adjustments

Dealer Inventory Summary:

i) the total dealer inventory of gold settles tonight at a very dangerously low level of only 19.91tonnes.

ii) a) JPMorgan's customer inventory rests tonight at 602,530.808 (18.741 tonnes).

ii) b) JPMorgan's dealer account rests tonight at 214,097.318 oz (6.659 tonnes).

iii) the 3 major bullion banks (JPMorgan, HSBC, and Scotia) have collectively only 16.957 tonnes of gold left in their dealer account, and what is totally remarkable is the fact that little gold entered the dealer Comex vaults despite December and February being the busiest months for the gold calender.

In going back over the data for the months of December and January and up to today, we have now had 8 withdrawals from the dealer:

3.7 tonnes

1.92 tonnes

1.669 tonnes (from Brinks on last Thursday in December)

We had 2,700.600 oz (jan 3/2014 from Manfra) or 0.084 tonnes

plus (Jan 9) 1.987 tonnes from Scotia

plus 2.79 tonnes (from Brinks Jan 15.2014)

and 600.339 oz (.018 tonnes , Feb 6.2014)

and:19,371.875 (.6025 tonnes Feb 11/2014)

and: 100.55 oz (.00315 tonnes Feb 13.2014)

plus 3 adjustments from the dealer to the customer account of 3.806 tonnes + 0.006 tonnes and 3 weeks ago 0.3547 tonnes of HSBC adjustments.

Total: 16.9336 tonnes of gold Comex adjustments.

We had 20.19 tonnes of gold standing for the December contract month and.4914 tonnes for January 2014. (at the conclusion of February I will add that to the total). Therefore 3.7478 tonnes is left to be settled upon (20.19 tonnes + 0.4914 - 16.9336 tonnes= 3.7478 tonnes).

Thus from the big 3 of JPMorgan, HSBC and Scotia we have a dealer inventory of only 16.957 tonnes which must settle upon the 3.7478 tonnes still outstanding.

Since JPMorgan has stopped 97% of all issuance, if you remove them from the big three, then we have HSBC and Scotia having an inventory of only 10.298 tonnes of gold which must settle upon 3.7478 tonnes of gold still outstanding.

Select Commodity Prices

The Bloomberg Baltic Dry Index (BDI) was 1,106.00, up 0.82%. WTI March crude was 100.30 down 0.02. Brent crude was 109.08 up 0.29. The spread between Brent and WTI was 8.78 up 0.31. The 30 year US Treasury bond was down 0.0200 at 3.7000. The 10 year T-Note was down 0.0100 at 2.7500. The dollar was down 0.55 at 80.15. The PPT/Dow was 16154.39 up 190.45. Silver closed at 21.51 up 1.27. The GSR was 61.3250 down 2.4991 oz of silver per oz of gold. CIA's Facebook was 67.09 up 2.64 (4.10%). March wheat was up 11.50 at 598.500. March corn was up 5.25 at 445.25. April lean hogs were up 1.800 at 96.175. March feeder cattle were up 1.975 at 170.475. March copper was up 0.009 at 3.265. March natural gas was up 0.392 at 5.214. April coal was up 0.75 at 58.65.

Thank you for reading the Harvey Report!

There is much more on Harvey's blog https://harveyorgan.blogspot.com.

Goooood day!

**************

Sat, Feb 15, 2014 - 11:04am
dgstage
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Daystar

I always enjoy reading your work.

dgfish
Sat, Feb 15, 2014 - 12:35pm
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RE: Harvey

Thanks, DG. You are much appreciated. I have gained from the unique information that you often provide.

Thanks for reading,

DayStar

Mon, Feb 17, 2014 - 10:09pm
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~~Harvey 16 Jan 2014

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

News and Commentary

Mark O'Byrne (GoldCore): Silver futures in Shanghai surged by 6% - the daily exchange limit. Silver for June delivery in Shanghai climbed to 4,440 yuan/kg, highest price for a most active contract since October 31. In London, silver surged another 2.3% today to $21.99/oz prior to giving up some of those gains. Silver headed for the longest run of gains since at least 1968. It is now up 11.3% year to date and is, as expected, again outperforming gold. Buying in China picked up from Friday's levels. Premiums for 99.99% purity gold on the Shanghai Gold Exchange rose to about $7 from $5.50 on Friday though volumes were slightly lower. Gold bullion for immediate delivery rose 0.5% to $1,324.03/oz and gold in Singapore traded as high as $1,330.02, the highest since October 31. Prices climbed 4.1% last week, the biggest increase since the period ended August 16. The precious metals continued their strong recent performance on Friday as the dollar came under pressure. The dollar fell to its weakest level in a year after the recent poor U.S. economic data. Precious metals saw strong gains as prices moved up through key technical and psychological levels such as $1,300 on gold and $20.50 on silver. Gold has rebounded 10% so far in 2014 amid expanding demand for coins and bars as signs of faltering U.S. growth lead to safe haven demand. U.S. factory output unexpectedly fell in January by the most since May 2009, Federal Reserve figures showed on Friday. Recent retail sales and employment data were also poor. Billionaire John Paulson kept his gold holdings unchanged in the fourth quarter, while hedge funds raised bullish bets to a three-month high last week. Silver continues to have very favourable supply and demand fundamentals and should continue to outperform gold. The nominal high of $50 per ounce is likely to be seen again in the coming years and longer term, we continue to see silver reaching the inflation adjusted record high over $150 per ounce. Those considering allocating to silver should consider dollar, pound and euro cost averaging into position to protect from the inevitable pullbacks.

Harvey: Today we witnessed gold rise in Europe without the shorting from the USA bankers who were home for President day. Gold started its rise early in the session as Chinese demand for gold was high and Shanghai premiums still quite positive. Silver also had a good day. We now await for our banker friends to show up for work tonight to see what they might do. GOFO is in backwardation for the first three months.

Zero Hedge on George Soros: Notable was the $25 million call position that Soros put on the gold miners ETF which has been beaten into oblivion over the past year, in the fourth quarter. Does Soros think that it is finally the miners' turn to shine? The "Soros put", a legacy hedge short position that the 83-year old has been rolling over every quarter since 2010, just rose to a record $1.3 billion or the notional equivalent of some 7.09 million SPY-equivalent shares. Since this was an increase of 154% Q/Q this has some people concerned that the author of 'reflexivity' and the founder of "open societies" may be anticipating some major market downside.

Tyler Durden on Indian Gold Tariffs: Two weeks ago, gold jumped to a then-2014 high, following reports out of India that the head of India's Congress Party, Sonia Gandhi was pushing the government to cut its duty on gold and other restrictions. Today, now that the upward move in gold has finally resumed, it appears that the nation with the world's most draconian gold capital controls, is finally starting to crack under pressure from the people, as well as a surge in gold smuggling via illegal channels to unprecedented levels. Reuters reports that India "will look into relaxing gold imports curbs,but won't let its current account deficit (CAD) balloon, Finance Minister P. Chidambaram said on Monday."

Rick Rule (via King World News): We're starting to see gold and silver come to life here. ‘You’ve suffered through the pain, why not hang around for the gain?’ I think we’re in the beginning of the gain session. Your readers, at least those who are new to the sector, need to understand that we are in a rising channel, but we are in a rising channel that is going to have higher highs and higher lows. We’ve said on your interviews, ‘You’ve suffered through the pain, why not hang around for the gain?’ I think we’re in the beginning of the gain session. Your readers and listeners, at least those who are new to the sector, need to understand that we are in a rising channel, but we are in a rising channel that is going to have higher highs and higher lows.

Rick Rule on the physical gold supply: William Kaye stated that gold demand from China is insatiable, and he would know better than just about anyone with regard to Hong Kong demand, but certainly we’ve seen very strong physical demand from around the world. A lot of the physical demand has taken place right here in the United States. What’s interesting about Kaye’s statement is the dichotomy between the private physical markets and the long-term markets. I can’t help going back to an announcement about 12 months ago, when the Germans wanted to repatriate their 1,500 tons of gold, and they were told by the US government that it would take seven years to get back only 300 tons of their gold. At the same time, over 30 days, in the physical market, Chinese retail buyers bought and took delivery of 1,120 tons of gold. One of the things that this points out is the very, very odd dichotomy between central bank and multilateral institutional holdings of gold, and the paper gold market on one side, and the honesty of the physical market on the other side. My suspicion is that the physical market is prevailing and will continue to prevail over the paper market. And the subtext of this is that the documented large (gold) short positions that exist in the paper market may get their long awaited religious experience as they are unable to deliver against futures obligations.

William Kaye on Goldman Sachs: [Goldman Sachs] and their cohorts have essentially hijacked Washington, and to a significant extent the government in London, as well as much of Europe. So the Western world is essentially being held captive by both of these major predatory investment banks, including the major commercial banks such as JP Morgan -- they are working hand-in-hand together in many cases. This is a huge threat, not only to the financial system, but what they are doing is a huge threat to people’s individual liberty. I think what these people are doing for their own benefit also has implications that are very negative to the middle classes around the world, which are being slowly wiped out in many countries. But this is all part of the redistribution of wealth and income from the 99% to the 1%. So what’s working for the big banks is not working for populations around the world. As has been disclosed on so many different occasions, what these banks are engaged in is illegal, and criminal in nature. Yet they keep doing it. I think what is going on is very serious, and until enough people wake up and demand institutional changes, I think the world as we know it, the world that exists today, is at risk and will remain at risk. And the trends of criminal behavior that are under way, which are so detrimental to a massive number of people, will not only continue, but possibly even accelerate.

Robert Fitzwilson (via King World News): A shrinking ability of people to buy things (numerator) and a massively increasing supply of money (denominator) mean that the velocity of money is destined to converge on zero. If so, we will be at “pedal to the metal” toward economic oblivion. Investors need to convert paper assets to real assets with a great sense of urgency. Prices of precious metals and particularly shares in mining companies are sprinting ahead of traditional stocks and bonds. Despite the lack of coverage by the traditional financial media, the HUI has outperformed the Dow Jones Industrial Index by a staggering 26% so far in 2014. It could very well be that the gold suppression scheme is finally on the run in the face of huge demand for physical metals. If a short-squeeze develops, we will see dramatic increases in prices for both metals and the miners. This is only the beginning of the reversal. Sentiment will follow, but at the present time still remains dismally low. Institutional and individual ownership is virtually non-existent. In the absence of raw financial repression, we should expect 2014 to be the year in which the great bull market in precious metals reasserts itself in dramatic fashion.

Harvey: China has issued 50% more credit than the combination of the Fed and and Bank of Japan. In equivalent dollars: China has issued 218 billion USA in January from loan creation. The Fed and Japan: 149 billion!! From December this was an increase of 174%! Then we add another massive amount of liquidity increase from the PBOC to keep the grease flowing. The total liquidity and credit this month was the greatest in Chinese history and was equal to 425 billion USA. China, like Japan and the USA must keep the spigots blowing out liquidity trying to prevent a deflating collapse.

John Hathaway (via King World News): We have the gold market breaking its downtrend, and I don’t think too many of the shorts have been covering yet. We are seeing some movement of gold into GLD, but it’s early days in terms of this move as far as I’m concerned. [King: sentiment on gold today is still more bearish than it was at the bottom of the 2008/2009 collapse, and, incredibly, gold is $600 higher.] The very bearish sentiment in gold just reinforces the fact that these are early days and there is still a great deal more to come in terms of gains for the price of gold. I think we will see a solid run up to around the $1,500 level, where gold broke down in April of last year. I think this first upside swing was basically short covering in the paper market. We still haven’t seen what lies ahead, which is some sort of default by the Comex, in terms of their ability to deliver gold. But as I said, that still lies ahead. What also lies ahead will be poor returns in the stock market because what we are witnessing right now is more than a weather-related phenomenon. Meaning, we are going to see some pretty lousy earnings, and that will be a major headwind facing the stock market. The second headwind will be the obvious dilemma of monetary policy, which is not only can they not exit QE, but they are going to have to reverse the direction of the taper, and they are going to start ramping up QE to much higher levels. I think all of that still lies ahead. So I strongly believe that gold and silver investors are in a good position here, and I would just strap yourself in (for the ride).

Tom Fitzpatrick (via King World News): Silver has rallied through the horizontal [resistance] levels and triple bottom neckline around $20.60 as well as the 200-day moving average. The target for this setup is very much in sight at $22.30 and resistance above there is at $23.08. The medium-term double bottom neckline is at $25.10 which should also eventually be tested.

John Embry (via King World News): The Fed will not let the stock market reflect reality, and at the same time they are running a zero interest rate policy. So they try to keep interest rates as low as possible, but bond buyers are not being paid for a default risk, or, more importantly, a growing inflation risk. And there isn’t an hour that goes by where there isn’t interference in the gold and silver markets. But the good news is that there is strong physical buying in this space, and now there appears to be a bid in the paper market as well. Consequently, even though they try, with their algorithm programs, to force the price back down, it doesn’t work -- gold and silver bounce right back and head even higher. All of this is just a precursor to a much larger move.

John Embry on the global financial Ponzi scheme: If you try to distort reality for too long, eventually it catches up with you. You can do it only for so long, and they’ve gotten away with it a lot longer than they thought they would. So, consequently, the fragility is even more extreme. It will end badly because we have to return to reality, and the leverage in the system has never even been anywhere close to the levels we see today, particularly with this derivative exposure on top of it all. People need to be extremely careful here with their money because I have repeatedly warned that the world is going to witness a historic transfer of wealth when this thing finally blows up. I will tell you that my own personal money is invested 100% in hard assets. I own physical gold, silver, gold and silver shares, oil shares, real estate, and collectibles. Those people who are sort of hanging in traditional paper assets are going to take a terrible beating, and those who are invested in hard assets will not only maintain their wealth but most likely will enhance it.

James Turk (via Casey Research): The most important thing to keep in mind is the money printing that pretty much every central bank around the world is doing. The central bankers have given it a fancy name—"quantitative easing." But regardless of what it is called, it is still creating money out of thin air, which debases the currency that central bankers are supposed to be prudently managing to preserve the currency's purchasing power. Money printing does the exact opposite; it destroys purchasing power, and the gold price in terms of that currency rises as a consequence. The gold price is a barometer of how well—or perhaps more to the point, how poorly—central bankers are doing their job. The debasement of the dollar that began with the formation of the Federal Reserve in 1913 has now lasted over 100 years too. A penny in 1913 had the same purchasing power as a dollar has today, which, interestingly, is not too different from the rate at which Rome's denarius was debased. I think silver will do better than gold for the foreseeable future. It is still very cheap compared to gold. As but one example to illustrate this point, even though gold underwent a big price correction last year, it is still trading above the record high it made in January 1980, which was the top of the bull run that began in the 1960s. In contrast, not only has silver not yet broken above its January 1980 peak of $50 per ounce, it is still far from that price. So silver has a lot of catching up to do.

Bill Holter (Miles Franklin): Put simply, gold and silver have broken several downtrend lines and barring anything crazy to the downside in the next 2 weeks they will have every technician and their brother flipping to the buy side…because the charts are telling them so. So what does this mean to you? It means that if you are “waiting” to purchase…DON’T! “Don’t” because I believe the odds are very high that you will not get any better prices than the low day of last week AND you are at risk. I say “risk” because from a fundamental standpoint if gold is rising rapidly or in panic fashion it means that something has gone really wrong…which in today’s ridiculously leveraged world could mean “game over,” reset and you are “shut out” from fixing any mistakes. Say what you will, tell me that I am being overly dramatic or whatever. These very long term monthly charts have never been this “compressed” or oversold in the last 20 years. This by the way from a fundamental standpoint is the same thing as saying you have NEVER had a better buying opportunity than you do now! Once this move takes place, I feel comfortable saying that the 1978-1980 move in gold and the shares will pale in comparison to what will happen over the next 2-3 years (or overnight in the case of a reset). We seem to be breaking out to the upside now…from THE most coiled and energy packed position of the last 20 years! This boat cannot be missed as I believe it is the last one of this generation before the upcoming reset! Please, now is not the time to be cute or hold out for better prices. Now is the time to create positions or finish purchases because we will be looking back at current levels thinking “Oh my god, look what I could have bought at.” This is about your financial life, “coulda, shoulda, woulda’s” will have no place at an empty table!

The Mogambu Guru: As the scene opens, lights swirl in the eerie black background, crazily careening in a whirling kaleidoscope of disjointed light and dark. In the distance, sirens dimly wail. My face half-hidden in the gloom, I am mindlessly wiping the gleaming barrel of what appears to be a machinegun when I dully look up into the camera lens. Staring directly into the camera, my narrowed, bloodshot eyes darting from side to side like the frightened little rat that I am, I feverishly say in a hoarse whisper “The Federal Reserve is monetizing the debt! We’re Freaking Doomed (WFD)!” The only good news in the avalanche of bad news is that gold is, so some say, selling at the cost of production, which is a good news/bad news kind of thing. It’s bad news for someone holding gold as the price goes down, but good news for those buying it. The really good news that comes from this is that this can’t keep up for long in the face of relentless, massive Chinese buying, and I’m betting on the apparent historical imperative for people to accumulate gold and silver in tough times. And so people who buy gold and silver right now are going to capitalize -- big-time -- on the government’s shameless corruption! It’s just a matter of time. Whee! And one of these reapers of financial bonanza will be a guy calling himself Chuck Norris, whose tagline was resplendent with a photo of Chuck Norris, responding to an article at zerohedge.com, who writes “I'm not that mad gold has been artificially suppressed. It allowed me to accumulate it at better prices. I hope it stays low longer, actually. I'm just gonna buy more!!” Whee! This investing stuff is easy! wink

****************

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

Quote:

Gold closed up in Europe to the tune of $9.50 at $1328.50.

Silver was up 39 cents to $21.80

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

https://harveyorgan.blogspot.com/2014/02/feb-14-valentines-daygold-rises-to.html

Total, Feb(Gold), Mar (Silver), Apr (Gold) Open Interest

Comex was closed today for George Washington's Birthday.

Select Commodity Prices

The Bloomberg Baltic Dry Index (BDI) was 1,130.00, up 2.17%. WTI March crude was 100.97 up 0.67. Brent crude was 109.18 up 0.10. The spread between Brent and WTI was 8.21 down 0.57. The 30 year US Treasury bond was unchanged 0.0100 at 3.7000. The 10 year T-Note was down 0.0040 at 2.7460. The dollar was up 0.02 at 80.17. The PPT/Dow was 16154.39 up 190.45. Silver closed at 21.84 up 0.33. The GSR was 60.3250 down 0.4641 oz of silver per oz of gold. CIA's Facebook was 67.09 up 2.64. March wheat was up 3.00 at 598.400. March corn was up 5.25 at 445.25. April lean hogs were up 1.800 at 96.175. March feeder cattle were up 1.975 at 170.475. March copper was up 0.009 at 3.265. March natural gas was up 0.392 at 5.214. April coal was up 0.75 at 58.65.

Thank you for reading the Harvey Report!

There is much more on Harvey's blog

https://harveyorgan.blogspot.com. Goooood day!

**************

Tue, Feb 18, 2014 - 9:23pm
DayStar
Offline
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~~Harvey 18 Feb 2014

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

News and Commentary

Gerald Celente (via King World News): People are being killed in order to protect secrets and to protect the dollar. They are doing everything they can to keep the dollar as the reserve currency. We have more investigations into the rigging of LIBOR and global currency markets. [These men are being suicided] to keep the dollar strong as the economy gets weak. And maybe those involved in it on the banking side know too much, and they can’t afford for them to give up these secrets, so they are losing their lives. The facts speak for themselves: All of the sudden you are seeing a rash of bankers committing ‘suicide,’ as they call it. By some estimates we are talking about over 20 deaths now, rather than the 7 being reported. And with each new day there is a new death.

Harvey: Generally after a holiday, the bankers like to attack gold/silver. They tried today but no avail as the demand for both metals was too great for our bankers. Today was a huge defeat for our banker friends. GOFO is in backwardation for the first three months, and the rates are becoming increasingly negative. GLD: Friday we lost 5.1 tonnes of gold and today GLD inventory was unchanged at 801.25. SLV: Silver was unchanged at 10,030.84 tonnes.

Stephen Leeb (via King World News): Having the reserve currency allows the US to deal with all sorts of problems. It also allows the US to deal with its problems without having virtually any discipline as to what we do. We can just print our way out of things. But it’s become clear in recent years that this is something we can no longer take for granted. It’s one thing to manipulate gold or a general stock market, but these are not the trillions-of-dollars-a-day markets that foreign currencies are. So I want to be clear about this: There is nothing the US will stop at to ensure that the dollar is the world’s safe haven and reserve currency. Right now there are too many people in the banking sector ‘jumping out of windows’ to think there isn’t something nefarious to this. Something very suspicious is going on here. You and I will never know what happened to these people, but what we do know is that people who are in very important positions can disappear or die very quickly. People are getting really scared at high levels of government, and they are acting accordingly. They are taking action and they are eliminating people who can hurt them, one way or the other. I’m sure this is a terrifying situation for those who are at the heart of this investigation on the banking side. What this tells me is that the appearance of strength in major markets is actually masking a lot of disturbance, chaos, and secrets that are underneath this facade. Make no mistake about it: There is a financial war going on right now. And there are a lot of secrets that governments have in this war. I also don’t think we have seen the last of this -- that much I can promise you. It’s no secret that there are assassinations that take place across the globe, but we will never have the evidence that governments are killing these people in the banking sector in order to protect these secrets. But, again, all of this is further evidence that something is really wrong in the financial system and there are a lot of secrets being concealed. I also don’t think we have seen the last of this -- that much I can promise you.”

Mark O'Byrne (GoldCore): Gold held not far off 3 and a 1/2 month highs due to a weaker U.S. dollar and concerns over U.S. and global economic growth. Bullion is up 10% this year as investors and store of value buyers see the 28% fall in 2013 as a buying opportunity. The volatility and weakness in equities globally due to emerging market turmoil and economic concerns is leading to safe haven demand. Silver also fell but wasn't too far from a 3-1/2 month high of $21.96 hit on Monday. Spot silver prices rose for a 12th day yesterday, the longest rally since at least 1968, data compiled by Bloomberg show. The World Gold Council’s global supply and demand figures have been released. They confirm what was already known - huge physical demand for coins and bars globally was counter acted by significant liquidations by Comex speculators and weak hand ETF investors. [DS: World Gold Council figures are notoriously low. Harvey says they only show half of China's real demand]. Annual global investment in bars and coins reached 1,654 tonnes, up from 1,289 tonnes in 2012, a rise of 28%, and the highest figure since the World Gold Council’s data series began in 1992. For the full year, Chinese and Indian investment in gold bars and coins was up 38% and 16%, respectively. Although much smaller markets in terms of volume, in the U.S. bar and coin demand was up 26% to 68 tonnes, and in Turkey it was up 113% to 102 tonnes. [DS: It is pitiful that the US is so oblivious that much smaller Turkey beats out the US by a significant amount in gold bullion consumption.] Chinese gold demand surged past Indian demand making China the world’s number one buyer of gold. However, India's gold demand remained buoyant in 2013 and rose by 13% to 945 tonnes compared to 2012. The Indian demand number does not capture the full level of demand as the governments punitive import taxes led to a huge jump in black market activity and the smuggling of gold in huge quantities into India. DS:One reason the tariffs have stayed on gold in India as long as they have is that the politicians are some of the major smugglers, and if they lower tariffs, it will hurt their business.

Richard Russell (via King World News): I think gold is overbought now, with many Johnny-come-latelies belatedly advising positions in gold. Today there was a full-page ad in the New York Times advertising “bargain gold.” This too suggested that gold, after its excellent rally, is now overdue for a rest. In the big picture, I continue to believe that we’re in a world depression. This will be followed by frantic activity by the Fed, as it prints new trillions of dollars. Which I’m certain, by the way, is why gold has been rising. I think we’re at the inflection point where the primary bear trend is overcoming the frantic action of the Fed. For years the Fed has been trying to establish its objective of 2% inflation. But the global deflationary pressures have thwarted the Fed. The dollar is key here. If or when the dollar index closes under 80, I think we will see fireworks in gold. Despite government Fed lies and propaganda, I will repeat my take on the present situation. The world is in a continuing depression, and only the vanishing US middle class is aware of it. The Fed and the government are feeding an unending parade of lies to the American people. Once the actual facts emerge to the newspapers, I expect Janet Yellen to buy Treasuries at a greater rate than we've seen so far. And at the same time, she will be creating new trillions of dollars without end. Rising gold is anticipating these future Fed moves. But rising gold will be a red flag for all to see. I look for the dollar index as a first sign of the Fed's helplessness in the face of the ongoing world depression. Gold demand in Japan jumped threefold in 2013 as people in Japan sought refuge from Prime Minister Shinzo Abe’s campaign to stoke inflation and weaken the yen. Global gold coin and bar demand at 1,654 tonnes per annum is worth just $75 billion which is not far off what the Federal Reserve is printing each month now. This shows how while demand has increased in recent years, the demand is very sustainable and there remains room for a significant jump in demand in the coming years.

Chris Powell: John Embry Friday on Business News Network in Canada expressed suspicion that impairment of the German Bundesbank's gold at the Federal Reserve Bank of New York is behind the slow pace of the Bundesbank's gold repatriation. CPM Group's Jeffrey Christian expresses confidence that nothing is amiss with Germany's gold and that questions have been raised about it only by people who are trying to scare investors into buying gold. Certainly, as always, people in the gold sector are "talking their book" here. Embry and the Sprott people are advocates of and investors in the monetary metals, while Christian has described his company as having most central banks as clients, and of course most central banks, even central banks in gold-producing countries, are enemies of gold, gold being an independent and neutral form of money that competes with central bank money and restricts central bank power. [ DS: So, who's talking their book here?] Maybe most people can agree that the Bundesbank is not as eager to repatriate its gold as, say, Venezuela recently was. Indeed, the Bundesbank well may not want to repatriate its gold at all. Some people think that the Bundesbank is making a show of arranging to get a little of its gold back simply to placate the political clamor that has been stirred up in Germany by paranoid gold bugs. But the Bundesbank's repatriation schedule -- seven years to ship metal that easily could be shipped in seven months if not seven weeks -- nurtures suspicions, the more so in light of the longstanding refusal of the Bundesbank and the U.S. Federal Reserve to disclose whether they have or have had gold swaps with each other. Really, it's a little too silly for Christian to get more indignant about insults to the Bundesbank's integrity than the Bundesbank itself can bring itself to get. Like most major Western central banks, having long participated in gold price suppression, the Bundesbank simply can't be candid and forthcoming about its gold activities. All the Bundesbank can do is issue the occasional misleading press release and then refuse to answer the critical questions that would give the game away.

Bill Holter (Miles Franklin): I got to thinking, what about silver? I figured in the back of my mind that because silver has underperformed gold and has generally seemed to only "bottom bounce" more that its progress was behind that of gold. Silver is exactly where it should be given that historically the shares lead, followed by silver and then gold. Silver's MACD's are not "touching" yet but they are VERY close, much closer than gold's to crossing over. I do want to point out that we have "round tripped" back to the $18-$20 levels that was seen in previous years as resistance. We basically hit this resistance level 3 times prior to the 2011 run up. Once broken out however, silver ran to $30 in 6 or 7 months. Also please keep in mind that we did not have nearly as much "stored up energy" as a springboard in 2008 that we do currently. The big drop at the end of 2008 had been largely corrected and the move up back then was NOT from an oversold extreme...like we have today! I have seen in the last week or so that many "bears" are talking the move down and telling us it's a "bull trap" and "new lows" are just around the corner. I just don't see it from any angle. I don't see it in the charts, I don't see it fundamentally as miners cannot collectively make a profit from the current prices, I don't see any froth at all (in fact the negativity is as deep as I've ever seen it), I don't see it with the outsized global demand nor with refiners working 24/7 to meet the demand. I just cannot see it. What I do see is that the HUI, followed by silver and then gold are lined up exactly as one would expect if a major generational turn was in progress.

Zero Hedge: Chinese Treasury holdings plunged by the most in two years in December, after China offloaded some $48 billion in paper, bringing its total to only $1268.9 billion, down from $1316.7 billion, and back to a level last seen in March 2013! This was the second largest dump by China in history with the sole exception of December 2011. [ DS: Why does China like to dump US Treasuries in December?] What was truly surprising is that despite the plunge in Chinese holdings, and Japanese holdings which also dropped by $4 billion in December, is that total foreign holdings of US Treasurys increased in December, from $5716.9 billion to 5794.9 billion due to massive purchases by Belgium. That's right: at a time when America's two largest foreign creditors, China and Japan, went on a buyers strike, the entity that came to the US rescue was Belgium, which as most know is simply another name for... Europe: the continent that has just a modest amount of its own excess debt to worry about. One wonders what favors were (and are) being exchanged behind the scenes in order to preserve the semblance that "all is well"?

Zero Hedge on Chinese iron ore non-consumption: Stockpiles of steel products also rose in the 4th quarter as construction activity remained weak after the Lunar New Year holidays, Gao said. Traders’ stockpiles of rebar, a building material, jumped by 65 percent this year to 8.55 million tons last week, according to Shanghai Steelhome. the biggest loser, as iron prices are set to tumble, will be Australia. Speaking of Australian iron miners, it was in late summer of 2012 when Chinese iron ore stockpiles were once again in the 100 million ton range, when iron prices crashed so bad, that Fortescue was on insolvency watch. Should the current episode of collapsing Chinese end demand persist and construction freeze persist, it may be time to short to FMGAU bonds once again. Unless of course, China once again unleashes the ghost cities building spree. Which it inevitably will: after all it has become all too clear that not one nation - neither Developing nor Emerging - will dare deviate from the current status quo course of unsustainable, superglued house of cards "muddle-through" until external, and internal, instability finally forces events into a world where everyone now has their head in the proverbial sand.

Tyler Durden: We commented that "judging by the feverish pace of purchases of every peripheral bond available, is this merely just another indication how little the ECB cares about sterilization, and is just a hint at an upcoming full-blown and unsterilized bond monetization about to be launched by Mario Draghi?" Sure enough at the subsequent February 6 ECB meeting Mario Draghi hinted as much when he said that among the things the ECB was looking at was precisely the "de"sterilizing of the SMP program. However, one stumbling block was getting the Bundebsbank's tacit approval to proceed with this plan which would make the ECB's bond monetization mirror that of the Fed where bonds are purchased on an unsterilized basis. And, as expected, overnight the Bundesbank threw in the towel on sterilization, meaning that the SMP will no longer be sterilized with an announcement divulging just this likely as soon as the next ECB meeting. Another question is when will ECB unsterilized interventions finally impact the soaring EUR whose relentless rise is crushing European corporate revenue and profit lines. For now, the EUR does not appear too concerned. Harvey: This is huge news!! and they sell gold on this news? as the entire globe undergoes massive unsterilized QE?

Gerald Celente on civil unrest: Celente added: “There is no recovery. You are looking at unemployment rates around the globe in some of the struggling countries of up to 30% - 40%. You are also seeing riots around the world. In Bosnia they are burning down government buildings. Look at what’s going on in Italy: They talk about democracy -- there’s no democracy. They just had their 3rd new government that has been installed without elections. And what the news isn’t reporting is how disgusted the Italian people are. It’s estimated that 1,000 Italian businesses are closing each day. Just today, over 60,000 business owners in Italy marched on Rome. So we are looking at unrest around the world. Look at the riots in Venezuela, the protests going on in Brazil and Argentina. They can’t get the people off the streets in Thailand. But here is the key: I have said this before, but it’s very important to remind people -- when all else fails, they take you to war. Or maybe in the case of the bankers, when all else fails and you know too much, you’re dead.

Zero Hedge: It's getting form bad to worse in the Ukraine: either martial law will be announced any time soon or the proxy civil war becomes a real one. On the bright side, there is something to be said about having a nation's criminal cases all in paper format: once there is a revolution, everyone's slate gets wiped clean when the records go up in flames.

Michael Snyder (The Economic Collapse Blog): Did you know that the U.S. state that produces the most vegetables is going through the worst drought it has ever experienced and that the size of the total U.S. cattle herd is now the smallest that it has been since 1951? Just the other day, a CBS News article boldly declared that "food prices soar as incomes stand still", but the truth is that this is only just the beginning. If the drought that has been devastating farmers and ranchers out west continues, we are going to see prices for meat, fruits and vegetables soar into the stratosphere. Already, the federal government has declared portions of 11 states to be "disaster areas", and California farmers are going to leave half a million acres sitting idle this year because of the extremely dry conditions.

****************

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

Quote:

Gold closed up $5.70 at $1324.70 (Comex to Comex closing time).

Silver was up 48 cents to $21.88 (Comex to Comex)If you take gold from Europe's close: Gold is down $3.80 and silver is up 8 cents.

In the access market tonight at 5:15 PM:

Gold: $1321.0

Silver: $21.83

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

https://harveyorgan.blogspot.com/2014/02/feb-18gld-and-slv-constantgold-and.html

Total, Feb(Gold), Mar (Silver), Apr (Gold) Open Interest

In silver:

Quote:

The total silver Comex OI fell by 748 contracts as silver was up in price to the tune of $1.03 on Friday. The total OI now rests tonight at 149,368 contracts. The non active February silver contract month saw its OI remain constant at 11 contracts. We had 0 notice filed yesterday so we neither gained nor lost any silver standing in this silver contract month of February. The next big active delivery month for silver is March and here the OI fell by only 2,170 contracts to 63,327. We are now less than two weeks away from first day notice, on Friday, Feb 28.2014 and the March OI is extremely high for this time in the delivery cycle month.

In Gold:

Quote:

The total gold Comex open interest rose today by 2931 contracts from 381,839 all the way up to 384,770 as gold was up $18.60 on Friday. In the big active month of February the OI fell by 67 contracts to 746. We had 8 notices filed on Friday so we lost another 59 contracts or 5900 oz will not stand. Blythe Masters has been a mighty busy girl handing out the fiat this month in gold. The next non active gold contract month is March and here the OI fell by 40 contracts. The next big active contract month is April and here the OI rose by 2,021 contracts to 244,049.

Volume

In Silver:

Quote:

The estimated volume today was humongous at 111,563 contracts. The confirmed volume on Friday was also huge at 94,409 contracts. The bankers still supplied the non backed paper but some major entities are going after silver.contracts.

In gold:

Quote:

The estimated volume today was good at 183,480 contracts. The confirmed volume on Friday was weaker coming in at 160,102. Investors are still shying away from the gold Comex.

Inventory Numbers

In Silver Inventory:

Quote:

Today, we had good activity inside the silver vaults.

We had 0 dealer deposits and 0 dealer withdrawals.

Total dealer withdrawal: nil oz

total dealer deposit: nil oz.

We had 1 customer deposit:

i) Into Delaware: 15,015.80 oz.

Total customer deposit 15,015.80 oz.

We had 3 customer (eligible) withdrawals:

i) Out of Brinks: 81,054.22 oz

ii) Out of HSBC: 992,693.579 oz

iii) Out of Scotia: 62,359.73 oz.

Total customer withdrawals: 1,136,107.529 oz.

We had 2 adjustment today

i) Out of Delaware: 10,251,80 oz was adjusted out of customer account of Delaware and this landed into the dealer account of Delaware

ii) Out of jPM: 489,842.294 oz was adjusted out of the dealer account and this landed into the customer account of JPMorgan. This no doubt was a silver settlement.

Registered (dealer) silver: 50.293 million oz.

Total of all silver: 180,403 million oz.

In Gold Inventory:

Quote:

We had 0 dealer deposits and 0 dealer withdrawals.

Total dealer deposits: nil oz

Total dealer withdrawal; nil oz

We had 2 customer deposits:

i) Into Brinks: 18,884.37 oz

ii) Into Manfra: 19,371.875 oz

Total customer deposits: 38,256.245 oz

We had 0 customer withdrawals:

Total customer withdrawals:nil oz.

Today we had 1 adjustment:

i) from the Scotia vault:

1,306.133 oz was adjusted out of the customer and this lands into the dealer account. This eventually should lead to a settlement

Thus we have the following with respect to JPMorgan's inventory.

JPM dealer inventory remains tonight at 214,097.318 oz or 6.659 tonnes

Today, 64 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 121 contracts of which 0 notices were stopped (received) by JPMorgan dealer and 8 notices stopped by JPMorgan customer account. HSBC stopped 64 out of the 121 contracts.

The total dealer Comex gold remains tonight at 641,427.164 oz or 19.95 tonnes of gold. However, this inventory will decline once settlement occurs. The total of all Comex gold (dealer and customer) rests at 7,163,976.418 oz or 222.82 tonnes.

Tonight, we have dealer gold inventory for our 3 major bullion banks (Scotia, HSBC and JPMorgan) with its gold inventory resting tonight at only 16.997 tonnes:

i) Scotia: 157,644.583 oz or 4.903 tonnes

ii) HSBC: 174,742.211 oz or 5.435 tonnes

iii) JPMorgan: 2144,097.318 oz or 6.659 tonnes

Total: 16.997 tonnes

Brinks dealer account, which did have the lion's share of the dealer gold, saw its inventory level remain constant tonight at only 90,529.129 oz or 2.815 tonnes. A few months ago Brinks had over 13 tonnes of gold in its registered or dealer account.

Delivery Notices

In silver:

Quote:

The CME reported that we had 7 notices filed for 35,000 oz today.

In gold:

Quote:

Today we had 121 notices served upon our longs for 12,100 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:

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

In silver:

Quote:

To calculate what will stand for this active delivery month of December, I take the number of contracts served for the entire month at 472 x 5,000 oz per contract or 2,360,000 oz to which we add the difference between the OI standing for February (11) minus the number of contracts served today (7) x 5,000 oz.

Thus in summary:

472 contracts x 5000 oz per contract (served) or 2,360,000 oz + (11) OI standing for February - (7) number of notices filed today x 5000 oz = 2,380,000 oz, the same as yesterday.

we neither gained nor lost any silver oz standing for the Feb contract month.

This is This is a very good showing for silver in this generally weak delivery month of February.

In gold:

Quote:

In order to calculate what will be standing for delivery in February, I take the number of contracts served so far this month at 3,407 x 100 oz = 340,700 oz to which I add the difference between the open interest standing for February: (746) x 100 oz minus the notices sent down for today (121) x 100 oz to give us what will stand for the month.

OI Summary:

3407 notices x 100 oz per contracts already served this February month or 340,700 oz + (746 notices) - (121) notices filed today x 100 oz = 403,200 oz or 12.54 tonnes of gold. We lost 5900 oz of gold which will not stand in this February gold delivery month.

We have only 16.957 tonnes in the registered or for sale category for the big 3 (JPMorgan, HSBC, and Scotia) and 19.772 tonnes if you include Brinks. If you include the tiny Manfra, we end up with a total dealer gold of only 19.91 tonnes. We have witnessed little gold enter the dealer except from Brinks and adjustments

Dealer Inventory Summary:

i) the total dealer inventory of gold settles tonight at a very dangerously low level of only 19.95tonnes.

ii) a) JPMorgan's customer inventory rests tonight at 602,530.808 (18.741 tonnes).

ii) b) JPMorgan's dealer account rests tonight at 214,097.318 oz (6.659 tonnes).

iii) the 3 major bullion banks (JPMorgan, HSBC, and Scotia) have collectively only 16.997 tonnes of gold left in their dealer account, and what is totally remarkable is the fact that little gold entered the dealer Comex vaults despite December and February being the busiest months for the gold calendar.

In going back over the data for the months of December and January and up to today, we have now had 8 withdrawals from the dealer:

3.7 tonnes

1.92 tonnes

1.669 tonnes (from Brinks on last Thursday in December)

We had 2,700.600 oz (Jan 3, 2014 from Manfra) or 0.084 tonnes

plus (Jan 9) 1.987 tonnes from Scotia

plus 2.79 tonnes (from Brinks Jan 15.2014)

and 600.339 oz (0.018 tonnes, Feb 6.2014)

and 19,371.875 (0.6025 tonnes Feb 11/2014)

and 100.55 oz (.00315 tonnes Feb 13.2014)

plus 3 adjustments from the dealer to the customer account of 3.806 tonnes + 0.006 tonnes and 3 weeks ago 0.3547 tonnes of HSBC adjustments.

Total: 16.9336 tonnes of gold Comex adjustments.

We had 20.19 tonnes of gold standing for the December contract month and 0.4914 tonnes for January 2014. At the conclusion of February I will add that to the total. Therefore 3.7478 tonnes is left to be settled upon (20.19 tonnes + 0.4914 - 16.9336 tonnes= 3.7478 tonnes).

Thus from the big 3 of JPMorgan, HSBC and Scotia we have a dealer inventory of only 16.997 tonnes which must settle upon the 3.7478 tonnes still outstanding.

Since JPMorgan has stopped 97% of all issuance, if you remove them from the big three, then we have HSBC and Scotia having an inventory of only 10.338 tonnes of gold which must settle upon 3.7478 tonnes of gold still outstanding.

Select Commodity Prices

The Bloomberg Baltic Dry Index (BDI) was 1,146.00, up 1.42%. WTI March crude was 103.00 up 2.70. Brent crude was 110.46 up 1.38. The spread between Brent and WTI was 7.46 down 1.32. The 30 year US Treasury bond was down 0.0200 at 3.6800. The 10 year T-Note was down 0.0400 at 2.7100. The dollar was down 0.18 at 79.97. The PPT/Dow was 15,963.96 down 190.43. Silver closed at 21.96 up 0.45. The GSR was 60.2140 down 1.1110 oz of silver per oz of gold. CIA's Facebook was 67.30 up 0.21 (0.31%). March wheat was up 13.50 at 612.000. March corn was up 4.25 at 449.50. April lean hogs were up 0.000 at 96.175. March feeder cattle were up 0.000 at 170.475. March copper was down 0.001 at 3.265. March natural gas was up 0.000 at 5.214. April coal was up 0.60 at 59.25.

Thank you for reading the Harvey Report!

There is much more on Harvey's blog https://harveyorgan.blogspot.com.

Goooood day!

**************

Tue, Feb 18, 2014 - 9:39pm
dgstage
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DAYSTAR

Thanks, the ride is going to have a lot more bumps, almost scary. but we will survive.

dgfish
Wed, Feb 19, 2014 - 10:09pm
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~~Harvey 19 Feb 2014

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

News and Commentary

GoldCore on Gerald Celente: Trends forecaster, Gerald Celente, who correctly forecast the recent $10 billion taper, told Russia Today overnight that the Federal Reserve is again “blowing bubbles,” as is the ECB. After the Nasdaq and property bubbles, we now have huge debt bubbles being created, said Celente. This is leading to BRICS nations having concerns about a “monetary tsunami” and concerns about the euro and dollar and may lead to a new reserve currency for the world - possibly a basket of currencies. This poses risks to both the dollar and the euro and both may fall in value in the coming months and the question is “which one is going to go first?” Celente again warned of the economic parallels with the 1930’s and said that we are again seeing recession and depressions, currency wars, trade wars and that this would lead to actual wars. He warned that the cost of living is going to continue to rise and standards of living are set to fall. Although the official government inflation data may not show this, as they do not include energy and food. “After all we don’t have to eat or use fuel. What deranged mind would really include that into a core index.” Celente concludes that the “books are being cooked, the numbers are a lot worse than they are showing and all the Fed is doing is pumping this up so that it looks like there is a recovery up until Election day.”

Harvey: Gold and silver were attacked in the access market with respect to the garbled communique from the beige book report. This is nothing but total manipulation. The first three months have negative GOFO, and the 6 month is moving toward backwardation. GLD: Gold lost 5.64 tonnes of gold and this gold no doubt was shipped to Shanghai. GLD stands at 795.61 tonnes. SLV: Silver had a huge increase of 3.848 million oz and stands at 10,150.51 tonnes.

Patrick A. Heller (CoinWeek): There is a huge discrepancy between the WGC (World Gold Council) alleging that total Chinese gold demand in 2013 came to only about 7 million ounces, while the China Gold Association claims the number (excluding central bank purchases) was 37.8 million ounces, Liu Xu estimates total demand at about 45 million ounces, and Koos Jansen puts demand at more than 70 million ounces. The WGC has never satisfactorily explained how the Chinese reported in April 2009 that they had added 454 (14.6 million ounces) tons of central bank gold reserves since 2003 but these same annual Gold Demand Trends reports had never picked either the supply of this quantity of gold nor the demand for it. In other words, the WGC has a track record of not producing accurate information about gold supply and demand in China.

Jim Brown (via King World News): China has $1.8 trillion in “trust” products and a large portion of those could default this year. More than 43% of these trusts come due in 2014 and 80% mature over the next two years. The trusts in China take investor money and lend it out to companies that can't get financing from banks. This is part of the “shadow banking” system that China is trying to control. Investors get a higher interest rate but recent defaults suggest the system is about to implode. In January the “Credit Equals Gold” trust was poised to default on $495 million in obligations until a mystery group stepped in at the 11th hour and paid investors. It is rumored the Peoples Bank of China funded the bailout group to delay the impending trust disaster. Last week a trust known as “Songhua River #77 Shanxi Opulent Blessing Project” defaulted on payments to investors. The trust was relatively small at $48 million. The money was raised from wealthy clients of China Construction Bank, China's second largest lender. The promised yield was 9.8%. This was the fourth trust managed by Jilin Trust that has defaulted in recent months. The amounts listed above are just a trickle compared to the $1.8 trillion in trust products of which $778 billion will mature in 2014. If this trend continues the resulting defaults could seriously undermine China's financial economy. According to Bloomberg China's non-performing loans grew by $4.7 billion in Q4 to a record 592.1 trillion yuan. This prevents the banks from making new loans and the defaults in the trust sector are dramatically slowing new investments. China's financial sector is a slow motion train wreck and the end result could be ugly.

Kevin Wides on gold (KWN): Last week may well have been be the defining week and month for both Gold and Silver. Markets tend to move in 5 waves, 3 in the direction of the trend (waves 1 - 3 - 5 ) and 2 against trend (waves 2- 4). The important thing to note here is that wave 5 on gold’s monthly bull chart has not occurred yet. Waves 2 and 4 show alternation in price action, which is indicative of countertrend moves in the 5 wave cycle. Based on waves 1 and 3, wave 5 could very well have a $3,500 to $4,000 target because 5th waves in commodities tend to be very extended to the upside. Sentiment can be a fantastic contrary indicator. When there are extreme bearish readings, it generally implies the market is close to running out of sellers. 2014 started with extreme bearishness in Gold, as Goldman Sachs called it “a slam dunk” sell for lower gold prices in 2014. But markets tend to change direction after testing price levels twice, commonly referred to as double bottom or double top, and gold now has a double bottom at $1,180. It is import to note that gold made a key weekly reversal at $1,180, and that gold has also broken the bearish downtrend. Gold has also completed a clear 5 wave decline from $1,920 high, indicating a price reversal and most likely a trend reversal.

Kevin Wides on Silver (KWN): Like gold, silver is also missing a final wave 5 rally. Silver has broken the current downtrend, and silver has competed a clear 5 wave decline from the $49 high of April 2011, indicating a price reversal, and most likely a trend reversal. The major breakout level of $19 to $20, from 2010, has offered major support. It is technically very significant that this area held. Silver also made a double bottom at the $19 area. Gold and silver have broken and closed above their 200-day moving averages, as well as numerous other short-term indicators that are indicating higher prices ahead. The fact that all time frames are indicating bullish price action is very unique. The amount of technical evidence that indicates continued price rallies for both gold and silver is overwhelming. In fact, with extreme bearishness and complete underinvestment by Western market participants, the price moves could be quite substantial to the upside.

Ronald-Peter Stoferle (Incrementum AG Liechtenstein): The (financial) world is at the moment long in questions but short in answers. We believe that gold is one of the right answers in times of chronic uncertainty. It is said that “trust is a delicate flower; once destroyed, it will not return easily.” We believe that the trust lost in the past years will not be regained any time soon, and that the situation will actually still get worse. Gold, as antagonist of uncovered paper currencies, remains an excellent hedge against worst-case scenarios. Low real interest rates and high counterparty risk provide the perfect environment for gold. Both are clearly the case at the moment, and we expect this scenario to last. At the current real interest rates, gold is an obvious alternative to short-term government bonds, current accounts, or time deposits. After many years of a chronic low-interest-rate policy, we do not believe that interest rates, along the lines of Paul Volcker’s, would be possible without the system collapsing. Therefore this time the gold bull market should end for different reasons than at the beginning of the 1980s. Therefore the question of price targets is difficult to answer. But given the fact that the majority of debt has neither been written off nor paid off but simply transferred, the problem of excessive debt is still waiting to be resolved. As far as the sentiment around gold is concerned, we definitely do not see any signs of euphoria. Skepticism, fear, and panic never line the final stretch of a bull market. Therefore we believe that our long-term price target of $2,300/ounce, as formulated a few years ago, could therefore come out on the conservative side.

Tyler Durden: the stealing of the weapons cache and labeling of the break-away region as having undertaken "terrorist acts" has led to the military getting involved. THE UKRAINE ARMY HAS BEEN GIVEN POWER TO CHECK CIVILIAN VEHICLES AND THE POWER TO USE WEAPONS ON UKRAINIANS: MINISTRY. Under the "anti-terrorist" operation, Ukraine is a close to civil war as it has been so far. As Martin Armstrong concludes: "there is no peaceful resolution" no matter how many sanctions and condemnations the West makes.

Zero Hedge: Did you know that the drought in Brazil is so bad that some neighborhoods are only being allowed to get water once every three days? At this point, 142 Brazilian cities are rationing water and there does not appear to be much hope that this crippling drought is going to end any time soon. Unfortunately, most Americans seem to be absolutely clueless about all of this. In response to the recent article about how the unprecedented drought that is plaguing California right now could affect our food supply, one individual left a comment stating “if Califirnia can’t supply South America will. We got NAFTA.” Apart from the fact that this person could not even spell “California” correctly, we also see a complete ignorance of what is going on in the rest of the planet. The truth is that the largest country in South America (Brazil) is also experiencing an absolutely devastating drought at the moment. They are going to have a very hard time just taking care of their own people for the foreseeable future. And this horrendous drought in Brazil could potentially have a huge impact on the total global food supply. As a recent RT article detailed, Brazil is the leading exporter in the world in a number of very important food categories

Tyler Durden: The past 5 weeks have seen mortgage applications crumble a further 16% - their biggest such drop in 14 months as the index for home purchase applications hovers close to its lowest level since 1995. Non-seasonally-adjusted, this is the worst start to a year in over a decade.

****************

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

Quote:

Gold closed down $4.10 at $1320.60 (Comex to Comex closing time).

Silver was down 4 cents to $21.84 (Comex to Comex).

In the access market tonight at 5:15 PM:Gold: $1310.00

Silver: $21.51

Tuesday, Feb 18th Gold and Silver Action (basis 1:30 PM EST)

https://harveyorgan.blogspot.com/2014/02/feb-192014huge-drop-in-gld-of-564.html

Total, Feb(Gold), Mar (Silver), Apr (Gold) Open Interest

In silver:

Quote:

The total silver Comex OI fell by 1749 contracts as silver was up in price to the tune of 48 cents yesterday. The total OI now rests tonight at 147,035 contracts. The non active February silver contract month saw its OI fall by 2 contracts to 9 contracts. We had 7 notice filed yesterday so we gained 5 silver contracts or an additional 25,000 oz will stand in this silver contract month of February. The next big active delivery month for silver is March and here the OI surprisingly fell by only 1,765 contracts to 57,516. We have just a little over 1 week away from first day notice, on Friday, Feb 28.2014 and the March OI is extremely high for this time in the delivery cycle month.

In Gold:

Quote:

The total gold Comex open interest fell today by 3780 contracts from 394,325 all the way down to 390,535 as gold was up $5.70 yesterday . In the big active month of February the OI remained constant at 575. We had 121 notices filed on yesterday so we finally gained 121 contracts or an additional 12,100 oz will stand in the February delivery month. It seems that the Comex are playing games with the figures. The next non active gold contract month is March and here the OI rose by 42 contracts. The next big active contract month is April and here the OI fell by 3,828 contracts to 248,202.

Volume

In Silver:

Quote:

The estimated volume today was excellent at 59,496 contracts. The confirmed volume yesterday was humongous at 123,357 contracts. ( this represents 617 milllion silver oz or almost 75% of global annual production).It seems to be that some major entity is after physical silver for March. We will have to wait and see how this plays out.contracts.

In gold:

Quote:

The estimated volume today was awful at 94,452 contracts. The confirmed volume yesterday was much better coming in at 195,419. Investors are still shying away from the gold Comex.

Inventory Numbers

In Silver Inventory:

Quote:

Today, we had good activity inside the silver vaults.

We had 0 dealer deposits and 0 dealer withdrawals.

Total dealer withdrawal: nil oz

total dealer deposit: nil oz.

We had 1 customer deposit:

i) Into CNT: 600,066.52 oz.

Total customer deposit 600,066.52 oz.

We had 4 customer (eligible) withdrawals:

i) Out of Brinks: 2,027.45 oz

ii) Out of CNT: 240,085.23 oz

iii) Out of Scotia; 85,494.310 oz

iv) Out of Delaware: 9999.000 (another perfectly round number)

total customer withdrawals: 337,605.99 oz.

We had 0 adjustments today.

Registered (dealer) silver: 50.293 million oz.

Total of all silver: 180.665 million oz.

In Gold Inventory:

Quote:

We had 0 dealer deposits and 0 dealer withdrawals.

Total dealer deposits: nil oz

Total dealer withdrawal; nil oz

We had 0 customer deposits:

Total customer deposits: nil oz

We had 0 customer withdrawals:

Total customer withdrawals:nil oz.

Today we had 1 adjustment:

i) from the Scotia vault:

298.64 oz was adjusted out of the customer and this lands into the dealer account. This eventually should lead to a settlement

Thus we have the following with respect to JPMorgan's inventory.

JPM dealer inventory remains tonight at 214,097.318 oz or 6.659 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 23 contracts of which 0 notices were stopped (received) by JPMorgan dealer and 1 notice stopped by JPMorgan customer account. Scotia stopped the bulk of the contracts today.

The total dealer Comex gold remains tonight at 641,725.804 oz or 19.96 tonnes of gold. However, this inventory will decline once settlement occurs. The total of all Comex gold (dealer and customer) rests at 7,163,976.418 oz or 222.82 tonnes.

Tonight, we have dealer gold inventory for our 3 major bullion banks(Scotia, HSBC and JPMorgan) with its gold inventory resting tonight at only 17.004 tonnes.

i) Scotia: 157,943.223 oz or 4.91 tonnes

ii) HSBC: 174,742.211 oz or 5.435 tonnes

iii) JPMorgan: 2144,097.318 oz or 6.659 tonnes

total: 17.004 tonnes

Brinks dealer account which did have the lions share of the dealer gold saw its inventory level remains constant tonight at only 90,529.129 oz or 2.815 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 7 notices filed for 35,000 oz today.

In gold:

Quote:

Today we had 23 notices served upon our longs for 2,300 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:

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

In silver:

Quote:

To calculate what will stand for this active delivery month of December, I take the number of contracts served for the entire month at 479 x 5,000 oz per contract or 2,395,000 oz to which we add the difference between the OI standing for February (9) minus the number of contracts served today (7) x 5,000 oz.

Thus in summary:

479 contracts x 5000 oz per contract (served) or 2,395,000 oz + (9) OI standing for February - (7) number of notices filed today x 5000 oz = 2 405,000 oz, a gain of 25,000 oz.

This is This is a very good showing for silver in this generally weak delivery month of February.

In gold:

Quote:

In order to calculate what will be standing for delivery in February, I take the number of contracts served so far this month at 3,430 x 100 oz = 343,000 oz to which I add the difference between the open interest standing for February: (575) x 100 oz minus the notices sent down for today (23) x 100 oz to give us what will stand for the month.

OI Summary:

3430 notices x 100 oz per contracts already served this February month or 343,000 oz + (575 notices) - (23) notices filed today x 100 oz = 398,200 oz or 12.38 tonnes of gold. We gained back 12,100 oz of gold which will stand in this February gold delivery month. The CME corrected the open interest from yesterday which resulted in a slight erroneous figures for what was standing.

As you will see below we have only 16.957 tonnes in the registered or for sale category for the big 3 (JPMorgan, HSBC, and Scotia) and 19.772 tonnes if you include Brinks. If you include the tiny Manfra, we end up with a total dealer gold of only 19.91 tonnes). We have witnessed little gold enter the dealer except from Brinks and adjustments

Dealer Inventory Summary:

i) the total dealer inventory of gold settles tonight at a very dangerously low level of only 19.95tonnes.

ii) a) JPMorgan's customer inventory rests tonight at 602,530.808 (18.741 tonnes).

ii) b) JPMorgan's dealer account rests tonight at 214,097.318 oz (6.659 tonnes).

iii) the 3 major bullion banks (JPMorgan, HSBC, and Scotia) have collectively only 17.004 tonnes of gold left in their dealer account, and what is totally remarkable is the fact that little gold entered the dealer Comex vaults despite December and February being the busiest months for the gold calender.

In going back over the data for the months of December and January and up to today, we have now had 8 withdrawals from the dealer:

3.7 tonnes

1.92 tonnes

1.669 tonnes (from Brinks on last Thursday in December)

We had 2,700.600 oz (jan 3/2014 from Manfra) or 0.084 tonnes

plus (Jan 9) 1.987 tonnes from Scotia

plus 2.79 tonnes (from Brinks Jan 15.2014)

and 600.339 oz (.018 tonnes , Feb 6.2014)

and:19,371.875 (.6025 tonnes Feb 11/2014)

and: 100.55 oz (.00315 tonnes Feb 13.2014)

plus 3 adjustments from the dealer to the customer account of 3.806 tonnes + 0.006 tonnes and 3 weeks ago 0.3547 tonnes of HSBC adjustments.

Total: 16.9336 tonnes of gold Comex adjustments.

We had 20.19 tonnes of gold standing for the December contract month and.4914 tonnes for January 2014. (at the conclusion of February I will add that to the total). Therefore 3.7478 tonnes is left to be settled upon (20.19 tonnes + 0.4914 - 16.9336 tonnes= 3.7478 tonnes).

Thus from the big 3 of JPMorgan, HSBC and Scotia we have a dealer inventory of only 17.004 tonnes which must settle upon the 3.7478 tonnes still outstanding.

Since JPMorgan has stopped 97% of all issuance, if you remove them from the big three, then we have HSBC and Scotia having an inventory of only 10.345 tonnes of gold which must settle upon 3.7478 tonnes of gold still outstanding.

Select Commodity Prices

The Bloomberg Baltic Dry Index (BDI) was 1,160.00, up 1.22%. WTI March crude was 103.31 up 0.31. Brent crude was 110.27 down 0.19. The spread between Brent and WTI was 6.96 down 0.50. The 30 year US Treasury bond was up 0.0300 at 3.7100. The 10 year T-Note was up 0.0200 at 2.7300. The dollar was up 0.18 at 80.15. The PPT/Dow was 16040.56 up 76.60. Silver closed at 21.54 down 0.42. The GSR was 60.8589 up 0.6449 oz of silver per oz of gold. CIA's Facebook was 68.06 up 0.76 (1.13%). March wheat was up 8.25 at 620.250. March corn was up 4.25 at 453.75. April lean hogs were up 1.025 at 97.200. March feeder cattle were up 0.700 at 171.175. March copper was up 0.021 at 3.286. March natural gas was up 0.935 at 6.149. April coal was up 1.00 at 60.25.

Thank you for reading the Harvey Report!

There is much more on Harvey's blog https://harveyorgan.blogspot.com.

Goooood day!

**************

Wed, Feb 19, 2014 - 10:15pm
DayStar
Offline
Joined: Jun 14, 2011
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RE: Bumps

DG, it's not the bumps that worry me. It's when the shooting starts that things get really bad. 

Thanks for the note.

DayStar

Thu, Feb 20, 2014 - 9:15pm
DayStar
Offline
Joined: Jun 14, 2011
2586
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~~Harvey 20 Feb 2014

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

News and Commentary

Harvey: Gold and silver were attacked late yesterday afternoon in the access market with respect to the garbled communique from the beige book report, and the attack proceeded throughout the night. However once we hit the physical zones early this morning, gold and silver started to rally and never looked back. Silver was a real standout as were the gold/silver equity shares. The open interest on the silver Comex is high, and the upcoming big delivery month of March also has it's OI extremely high as well. March OI is contracting by a smaller fraction than normal, as we head into first day notice a week from tomorrow. It is quite conceivable that some big entity is after silver. GLD and SLV today held their ground as their inventories remain constant. Lately Fridays have been very good to the precious metals so let us see what tomorrow brings. The gold/silver equity shares were also a very bright performer today. GOFO is in backwardation for the first three months and moving toward backwardation in the 6 month. GLD: Gold was unchanged at 795.61. SLV: Silver was unchanged at 10,150.51.

Michael Pento (via King World News): Everything else such as employment growth, the employment-to-population ratio, is falling, and had plummeted from highs in 2007. We are not seeing corporate earnings growth or revenue growth. The only thing you are seeing growth in is not the labor force but rather growth in the Fed’s ability to print money. And it’s not only the Fed, it’s also Japan. If look at the disaster over there under ‘Abenomics,’ it wasn’t enough that the yen was being diluted by $70 trillion yen per annum, but they are now actually lending money to the Japanese banking system, with almost no interest rate attached to it at all. So we’re heading toward dramatic swings between inflation and deflation across the globe, and I think ultimately we are headed for a complete collapse of the bond markets in Japan and in the United States. That’s where we’re headed. The Fed knows what they are doing is wrong and they desperately want to get out of quantitative easing ... but at their current pace (of QE) they are monetizing over 100% of our annual deficits. When they leave, who is going to supplant those (bond) purchases? We don’t have the savings to do it. China is selling Treasuries, so interest rates are going to have to rise. I think it’s a pipe dream that the Yellen-led Fed is going to get out of QE. They are going to be dragged back in, grudgingly, probably some time in the summer when the economic data is so clearly abysmal and we have a huge selloff in the major averages. There has been a sharp downward move in economic data. It started in December and it’s getting worse. Look at the pending home sales, and new home starts down 16%. Now some of this has to do with weather, but you can’t blame bad economic data in Turkey, Brazil, China, and in Japan on a snowstorm or two in the United States. So the economic data is getting worse and worse, and I expect that to intensify as they year progresses.

Mark O'Byrne (Goldcore): As holdings in gold-backed funds that are mostly listed in the U.S. and Europe declined, lower prices led to demand from Asia in a further sign of bullion flowing from the west to east. While the majority of the demand is from Asia itself, there is a percentage of the flow that is of western investors seeking to own gold outside the banking system, in what they perceive to be safer jurisdictions in allocated gold accounts Hong Kong and Singapore. Hong Kong was the top destination of Swiss bullion exports at 44% on a value basis, with India at 14%, the Bern-based customs agency said in its first breakdown of the gold trade data since 1980. Singapore accounted for 8.6% of exports, the United Arab Emirates 7.9% and China 6.3%, according to Bloomberg.

William Kaye (via King World News): The footprints that we’ve discussed in the past are back. GLD, which had been left alone until recently, has been looted in the last few trading days. So the Spyder Gold Trust has lost 11 tons of gold in just three trading days. In the past when we’ve seen these raids take place, it’s often been an early indication of what the cartel wants to do next, which is simply to take the paper price lower. In order to do that they need the gold feedstock to deliver, and GLD has certainly been one of the more important sources of physical gold that has been necessary to satisfy the demand that exists in this area of the world (Asia). The timing is interesting because we’re now through the traditionally strong period where people stock up prior to Chinese New Year. So this is traditionally a soft period for demand because they have already stocked up on gold at this point in time. Meaning, it’s a good window if the cartel wants to operate in it. The sell side, Goldman Sachs, Societe Generale, etc., virtually all of these bullion banks were publishing very bearish reports on gold prior to the smash that began in April of last year, and they are back at it again, calling for $1,050, and some for even lower prices. So when you add it all up, these things should cause people to be a little bit cautious in the near-term. Having said that, at these levels, or possibly on dips, this is an excellent opportunity for long-term investors to accumulate physical gold. It’s just that on a short-term basis things are a bit more tricky with the footprints we are now starting to see.

Bill Holter (Miles Franklin): As of yesterday there have been 6 dead bankers and one financial reporter missing in less than a month. Do they know something that we don't know? The only single common thread between these bankers is that they were in positions close enough to have information to avail the LIBOR investigations. [ Ds: Makes you wonder if that HARRP thingy might be putting voices in their heads till they did something to make it stop.] I don't think these banker suicies are any coincidence at all. I view this the way I view everything. If something is obvious then that's what it is. Yes, of course you do have to look past the media "pump" but as the CIA says, "there are no coincidences". Is it a coincidence that physical gold inventories at the Comex and LBMA have been drawn down along with GLD...while refineries and mints are running 24/7...while verified physical demand has increased dramatically...and GOFO rates have gone negative at least a half dozen times since June...? Is it a coincidence that Germany only received 5 tons...which they first said were "re" refined in the U.S. and then changed their minds and insist that the "re" refining was done in Germany? Let's not forget about Kiev, Ukraine that seems to have lit up just as the Olympics got started...all a coincidence? My point is this, unrest is being seen in many different places right now. This is at a time when capital inflows have been seriously weakening into the U.S.. Is it a coincidence that all of these hot spots have been (are being) lit up at once? Doesn't capital normally flow into dollars as a "flight to quality" or safe haven reaction? That's the way it used to work right? Have we stooped so low as to actually "applaud" foreign unrest because that would mean extra demand for dollars? Have we in any way "fostered" or fanned the flames of any of this? I will leave you with one last thought, coincidence or not? Is it a coincidence that the government has built a $90 million ghost town in Virginia so that it can be used to practice techniques to quell civil unrest? Is it a coincidence that DHS, the IRS and even the postal system has purchased over 2 billion (yes with a "b") hollow point bullets including almost 200,000 "sniper rounds"? Coincidence or do they know something that we don't know?

Tyler Durden: China manufacturing PMI misses consensus while it tumbles To 7-month low. At 48.3, the PMI is the lowest since July of last year with the employment sub-index the lowest since Feb 2009. The commentary from Hongbin Qu, Chief Economist, China & Co-Head of Asian Economic Research at HSBC, was about as dire as could be: “February’s flash reading of the HSBC China Manufacturing PMI moderated further as new orders and production contracted, reflecting the renewed destocking activities. The building-up of disinflationary pressures implies that the underlying momentum for manufacturing growth could be weakening. We believe Beijing policy makers should and can fine-tune policy to keep growth at a steady pace in the coming year.”

William Kaye on deal with China: Meaning, China has been extremely vocal in recent years about their displeasure with Western monetary policy, particularly that of the US Fed. It would not be unfathomable that in the background a deal was struck in which China agreed to keep the Ponzi scheme in the US going, in exchange for having the opportunity to buy gold at extremely attractive price levels. That type of situation makes a lot of sense to me, at least from the Chinese perspective. My contacts in China tell me this is plausible, but I think there are very few people in the world who know whether that is true or not. Outside of that theory, it’s very hard to come up with answers that make a lot of sense when it comes to what the West is doing. A depressed gold price, and this is certainly part of the Western central planners’ agenda, does signal something that is entirely false to the world at large -- that everything is OK and there is no problem at all with fiat currencies and the US dollar in particular. So it does help to extend for a bit longer the reign of the US dollar as the world’s reserve currency, because very low gold prices suggest that the US dollar is strong, and therefore that US Fed policies are sound policies. DS: The answers that make sense are written on the Georgia Guidestones. The elites intend to thin the herd, and they have to break the West in order to do it. They already have China, and they are busy dismantling the USA at the present. They are moving the gold to safer regions and when they finish looting the world, they will pull the plug on the economy, short the dollar and the USTs and let people fend for themselves. Then we will get a series of natural disasters along with WWIII.

John Ing (via King World News): First, it’s no coincidence that since the tapering gold has been the best-performing asset. Gold is already up 10% since the beginning of the year, and the mining shares are up more than 30%. In the case of the mining shares, this is a case of leverage working both ways, up and down. The second point I would make is that when you look at the gold industry, the gold price fell to a level that was virtually the break-even cost for most producers. So nobody is going to produce gold at a loss, including the biggest gold company in the world. Barrick had literally lopped off one million ounces of production, rather than continuing to produce gold at a loss. The third factor that the gold shorts are missing is that gold broke out above its 200-day moving average, which is around $1,310. Although gold retreated briefly yesterday, it simply bounced right off that 200-day moving average which has now become support. We still see the industrial and jewelry demand, which remains strong, and so I am focusing on the battle between the paper gold market and the physical gold market. I fully expect the physical gold market to overwhelm the paper market. We know from every expiry that the physical gold market just gets tighter and tighter. When you see there is a dramatic amount of physical gold taken down on the front month in Shanghai, that tells you Asia is acting as a huge vacuum cleaner of all of the world’s available gold supply. The bottom line is there is not enough gold around to satisfy that demand.

David Cui (Bank of America): The Trust defaults are about to get hot and heavy. To wit: We believe that during April to July the market may see many trust products threatening to default, especially those related to coal mines. By our estimate, the first real default most likely could happen in May with a Sichuan lead/zinc trust product worth Rmb140mn. This is because the product is relatively small (so the government may use it as a test case), the underlying asset is not attractive (so little chance of 3rd parties taking it over) and we also have heard very little on parties involved trying to work things out. Whether this will trigger an avalanche of future trust defaults remains to be seen and this presents a key risk to the market in our opinion...it’s still possible that many of the upcoming cases in Apr-July may get worked out one way or the other. Nevertheless, as we believe that many of the underlying assets of the trust products are insolvent, it’s a matter of time that many products will ultimately default, in our view. Various bail-outs will only delay the inevitable.

Beni Emmanuel (EMET Report): Prince Bandar bin Sultan, Saudi Arabia's National Security Adviser and Intelligence Director, has not been seen for more than a month. He was reported by US and Saudi sources Wednesday, Feb. 19, to have been removed from the tight policy-making circle in Riyadh. Prince Bandar was widely reported in the Middle East to be in secret ties with Israeli intelligence on Saudi and Israeli moves against Iran. Tehran claimed more than once that he had paid clandestine visits to Tel Aviv. Those ties, such as they were, may be presumed to have been discontinued following his removal. There has been no official word from Riyadh disclosing any change in Bandar's status. Our sources report that the prince, a long-serving ambassador to the United States, vanished off Saudi and Middle East radar screens in mid-January, shortly before he was scheduled to visit Washington to arrange President Obama's forthcoming trip to Riyadh in the last week of March. DS: I hope he does not end up decorating a lamp post or have his head on a pike in some Bedouin camp somewhere in Syria.

Benjamin Netanyahu (Reuters): "Now they're developing, as we speak, Iran is developing centrifuges that are supposed to be 15 times more effective and more efficient than the centrifuges that they have today," Prime Minister Benjamin Netanyahu said. "That will enable them to leap-frog the distance and the time from low enrichment of uranium to high enrichment like that." In an address on Feb. 18, Netanyahu, who directs the intelligence community, said Teheran has not rolled back its nuclear program. The prime minister cited enhanced centrifuges, heavy water reactor and intercontinental ballistic missiles. "If Iran perches itself as a threshold state in which it has all the elements of a nuclear weapon in place, they'll just have to do one little twist of the knob to get final enrichment of fissile material that is the core of a nuclear weapon," Netanyahu said. "Then all they'll have to do is take these components from one side of a room and another side of a room, put them together and in a very short time, days or weeks or perhaps even hours, they'd have a nuclear weapon." Meanwhile, Iran's President, Hassan Rouhani, on Wednesday said that Jerusalem should "be liberated from the yoke of Israel."

Economic policy Journal: It is only a matter of time before Puerto Rico defaults on its debt. Banksters are enticing PR with a little more money on the condition that PR waive its sovereign immunity and agree to a New York venue in the case of default. The willingness to forgo sovereign immunity has been a touchy point in negotiations — what one investor called a “slippery slope” for the Commonwealth. Puerto Rico, whose muni debt was recently downgraded to junk status, plans to repay and refinance outstanding debt with the proceeds of the new financing. The $3.5 billion will only last for about two years. It is expected to carry an interest rate north of 10 percent.

Tyler Durden: Over the past year we have been closely following the slow motion bursting of the latest hot money, spec capital, and foreclosure subsidy-driven housing bubble, which has for now mostly impacted the peripheral areas like Las Vegas, where we reported housing demand has plunged by 20% while supply has exploded as everyone scrambles to cash out. The fact that the foreclosure wave has just turned and the number of California foreclosures recently exploded by 57% in one month merely is further confirmation of just how weak organic support for home prices truly was. And as the Emerging Market hot money wave turns (thank you taper) and as recyclable capital suddenly becomes scarce, look for this trend to hit the major metropolitan centers next, as even the wealthy investors finally pull back from the luxury US housing market.

Lisa Haven (B4IN): The Global elites are aggressively pursuing a plan to significantly reduce the global population. Plans are NOW underway to depopulate the planet by 6.5 billion people. Today many methods of depopulation are being implemented by the elite. The three major depopulation agents including: worldwide hunger ( 7-8 million deaths yearly), war (killing an average of half a million people per year), and diseases (2-3 million deaths per year). Other methods include: Chemtrails and the use of nuclear and biological agents; poisoning and contamination of the food and water supply; pharmaceutical drugs; weather modification via HAARP which triggers earthquakes, volcanoes and tsunamis through electromagnetic psychotronic weapons; the promotion of homosexuality and the spreading of AIDS; forced sterilization in countries such as China; vaccinations; abortion; euthanasia; Obamacare death panels; and the list goes on. The campaign to eliminate “useless eaters” (that’s you and I) on behalf of the planet’s “privileged ruling elite”, is surely to take a more ravenous toll as global population levels rise. It can be expected. It is no secret that the elite want you and I dead, and no longer do they hid it under wraps, no, it’s out in the open and they are proud of their stance.

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

Quote:

Gold closed down $3.70 at $1317.10 (Comex to Comex closing time).

Silver was down 16 cents to $21.68.

In the access market tonight at 5:15 PM:

Gold: $1322.50

Silver: $21.80

Wednesday, Feb 19th Gold and Silver Action (basis 1:30 PM EST)

https://harveyorgan.blogspot.com/2014/02/feb-20gold-and-silver-rally-from.html

Total, Feb(Gold), Mar (Silver), Apr (Gold) Open Interest

In silver:

Quote:

The total silver Comex OI fell by 1965 contracts as silver was down in price to the tune of 4 cents yesterday. The total OI now rests tonight at 145,275 contracts. The non active February silver contract month saw its OI rise by 106 contracts to 115 contracts. We had 7 notices filed yesterday so we gained 99 silver contracts or an additional 495,000 oz will stand in this silver contract month of February. The next big active delivery month for silver is March and here the OI surprisingly fell by only 5,477 contracts to 52,039. We have just a little over 1 week away from first day notice, on Friday, Feb 28.2014 and the March OI is extremely high for this time in the delivery cycle month.

In Gold:

Quote:

The total gold Comex open interest rose today by 1031 contracts from 389,887 all the way up to 390,918 as gold was down $4.10 yesterday . In the big active month of February the OI rose by 25 contracts to 595. We had 23 notices filed on yesterday so we finally gained 48 contracts or an additional 4800 oz will stand in the February delivery month. The next non active gold contract month is March and here the OI rose by 2 contracts. The next big active contract month is April and here the OI rose by 447 contracts to 248,649.

Volume

In Silver:

Quote:

The estimated volume today was excellent at 72,862 contracts. The confirmed volume yesterday was also excellent at 80,258 contracts. It seems to be that some major entity is after physical silver for March. We will have to wait and see how this plays out.contracts.

In gold:

Quote:

The estimated volume today was fair at 125,649 contracts. The confirmed volume yesterday was in the same ballpark at 122,798. Investors are still shying away from the gold Comex.

Inventory Numbers

In Silver Inventory:

Quote:

Today, we had good activity inside the silver vaults.

We had 0 dealer deposits and 0 dealer withdrawals.

Total dealer withdrawal: nil oz

Total dealer deposit: nil oz.

We had 1 customer deposit:

i) Into CNT: 74,150.300 oz.

Total customer deposit 74,150.300 oz.

We had 2 customer (eligible) withdrawals:

i) Out of HSBC: 3,081.95 oz

ii) Out of JPM: 300,316.70 oz.

Total customer withdrawals: 303,398.651 oz.

We had 1 adjustment today

i) out of Scotia:

15,143.75 oz was adjusted out of the customer and this landed into the dealer account.

Registered (dealer) silver: 50.308 million oz.

Total of all silver: 180.436 million oz.

In Gold Inventory:

Quote:

We had 0 dealer deposits and 0 dealer withdrawals.

Total dealer deposits: nil oz

Total dealer withdrawal; nil oz

We had 0 customer deposits:

Total customer deposits: nil oz

We had 0 customer withdrawals:

Total customer withdrawals:nil oz.

Today we had 3 adjustment:

i) from the Scotia vault:

10,076.755 oz was adjusted out of the customer and this lands into the dealer account. This eventually should lead to a settlement

ii) from the Manfra vault:

5337.29 oz was adjusted out of the customer and this landed into the dealer account at Manfra

iii) From HSBC: 22,309.343 oz was adjusted out of the dealer account and this landed back into the customer account and probably is a settlement.

Thus we have the following with respect to JPMorgan's inventory.

JPM dealer inventory remains tonight at 214,097.318 oz or 6.659 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 64 contracts of which 0 notices were stopped (received) by JPMorgan dealer and 4 notice stopped by JPMorgan customer account.

The total dealer Comex gold remains tonight at 634,830.508 oz or 19.745 tonnes of gold. However, this inventory will decline once settlement occurs. The total of all Comex gold (dealer and customer) rests at 7,163,976.418 oz or 222.82 tonnes.

Tonight, we have dealer gold inventory for our 3 major bullion banks(Scotia, HSBC and JPMorgan) with its gold inventory resting tonight at only 16.626 tonnes:

i) Scotia: 168,019.978 oz or 5.226 tonnes

ii) HSBC: 152,432.868 oz or 4.741 tonnes

iii) JPMorgan: 2144,097.318 oz or 6.659 tonnes

Total: 16.626 tonnes

Brinks' dealer account, which did have the lion's share of the dealer gold, saw its inventory level remain constant tonight at only 90,529.129 oz or 2.815 tonnes. A few months ago Brinks had over 13 tonnes of gold in its registered or dealer account.

Delivery Notices

In silver:

Quote:

The CME reported that we had 114 notices filed for 570,000 oz today.

In gold:

Quote:

Today we had 64 notices served upon our longs for 6400 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:

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

In silver:

Quote:

To calculate what will stand for this active delivery month of December, I take the number of contracts served for the entire month at 593 x 5,000 oz per contract or 2,965,000 oz to which we add the difference between the OI standing for February (115) minus the number of contracts served today (114) x 5,000 oz.

Thus in summary:

593 contracts x 5000 oz per contract (served) or 2,965,000 oz + (115) OI standing for February - (114) number of notices filed today x 5000 oz =

2,970,000 oz.

This is This is a very good showing for silver in this generally weak delivery month of February.

In gold:

Quote:

In order to calculate what will be standing for delivery in February, I take the number of contracts served so far this month at 3,494 x 100 oz = 349,400 oz to which I add the difference between the open interest standing for February: (595) x 100 oz minus the notices sent down for today (64) x 100 oz to give us what will stand for the month.

OI Summary:

3494 notices x 100 oz per contracts already served this February month or 349,400 oz + (595 notices) - (64) notices filed today x 100 oz = 402,500 oz or 12.519 tonnes of gold. We gained back 4800 oz of gold which will stand in this February gold delivery month.

As you will see below we have only 16.626 tonnes in the registered or for sale category for the big 3 (JPMorgan, HSBC, and Scotia) and 19.441 tonnes if you include Brinks. If you include the tiny Manfra, we end up with a total dealer gold of only 19.745 tonnes). We have witnessed little gold enter the dealer except from Brinks and adjustments

Dealer Inventory Summary:

i) the total dealer inventory of gold settles tonight at a very dangerously low level of only 19.745tonnes.

ii) a) JPMorgan's customer inventory rests tonight at 602,530.808 (18.741 tonnes).

ii) b) JPMorgan's dealer account rests tonight at 214,097.318 oz (6.659 tonnes).

iii) the 3 major bullion banks (JPMorgan, HSBC, and Scotia) have collectively only 16.626 tonnes of gold left in their dealer account, and what is totally remarkable is the fact that little gold entered the dealer Comex vaults despite December and February being the busiest months for the gold calender.

In going back over the data for the months of December and January and up to today, we have now had 9 withdrawals from the dealer:

3.7 tonnes

1.92 tonnes

1.669 tonnes (from Brinks on last Thursday in December)

We had 2,700.600 oz (Jan 3/2014 from Manfra) or 0.084 tonnes

plus (Jan 9) 1.987 tonnes from Scotia

plus 2.79 tonnes (from Brinks Jan 15.2014)

and 600.339 oz (.018 tonnes Feb 6.2014)

and:19,371.875 (.6025 tonnes Feb 11/2014)

and: 100.55 oz (.00315 tonnes Feb 13.2014)

and: 22,309.343 oz (.6939 tonnes Feb 20.2014)

plus 3 adjustments from the dealer to the customer account of 3.806 tonnes + 0.006 tonnes and 3 weeks ago 0.3547 tonnes of HSBC adjustments.

Total: 17.6275 tonnes of gold Comex adjustments.

We had 20.19 tonnes of gold standing for the December contract month and 0.4914 tonnes for January 2014. At the conclusion of February I will add that to the total. Therefore 3.0535 tonnes is left to be settled upon (20.19 tonnes + 0.4914 - 17.6275 tonnes= 3.0535 tonnes).

Thus from the big 3 of JPMorgan, HSBC and Scotia we have a dealer inventory of only 16.626 tonnes which must settle upon the 3.0535 tonnes still outstanding.

Since JPMorgan has stopped 97% of all issuance, if you remove them from the big three, then we have HSBC and Scotia having an inventory of only 9.9967 tonnes of gold which must settle upon 3.0535 tonnes of gold still outstanding.

Select Commodity Prices

The Bloomberg Baltic Dry Index (BDI) was 1,164.00, up 0.34%. WTI March crude was 102.73 down 0.58. Brent crude was 110.30 up 0.03. The spread between Brent and WTI was 7.57 up 0.61. The 30 year US Treasury bond was up 0.0200 at 3.7300. The 10 year T-Note was up 0.0200 at 2.7500. The dollar was up 0.16 at 80.31. The PPT/Dow was 16133.23 up 92.67. Silver closed at 21.82 up 0.28. The GSR was 60.6324 down 0.2265 oz of silver per oz of gold. CIA's Facebook was 69.63 up 1.57 (2.31%). March wheat was down 4.00 at 616.250. March corn was up 2.00 at 455.75. April lean hogs were up 0.625 at 97.825. March feeder cattle were down 0.050 at 171.125. March copper was down 0.007 at 3.279. March natural gas was down 0.085 at 6.064. April coal was up 0.00 at 60.25.

Thank you for reading the Harvey Report!

There is much more on Harvey's blog https://harveyorgan.blogspot.com.

Goooood day!

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