Harvey Organ Should Be An Interesting Read Today

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Thu, May 23, 2013 - 10:17pm
DayStar
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~~Harvey 23 May 2013

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

News and Commentary

Harvey: The big June delivery month will surely be exciting to watch judging by the huge demand for gold in May. We will also see if the boys have any trouble servicing the last 1,056 contracts in the May delivery month We have 4 more trading sessions before first day notice. We will also watch what happens with JPMorgan with respect to its customer gold. It remains now at 9.25 tonnes of gold. The Comex registered or dealer gold remains at 1.668 million oz or 51.88 tonnes. The total of all gold at the Comex fell slightly and still well below the 8 million oz at 7.897 million oz or 245.6 tonnes of gold. The GLD ETF reported another loss in gold inventory of 1.5 tonnes. The SLV ETF inventory of silver lost a gigantic 5.648 million oz. Yesterday the GLD reported 3.01 tonnes were withdrawn which followed Tuesday's 8.42 tonnes. Monday GLD lost 6.91 tonnes.

Harvey: The big story of today was Japan. Not only did the authorities halt the Japanese bond market for the 3rd time, but they also halted, for the first time in many years, the Nikkei as it lost a monstrous 1143 points. From high to low point, the Nikkei lost 1500 points.

GoldCore: Gold is oversold on a host of benchmarks and was due a bounce and the Nikkei plummet and stock weakness in Europe, the FTSE is down by 1.9% and the CAC and DAX by more than 2.4%, have led to gold buying. Stock losses appear to have contributed to speculators covering short positions and some speculators and investors buying gold again. Silver too has benefited from the renewed ‘risk off’ environment and risen 1.4%. If there are sharp losses on Wall Street today –increased safe haven demand should be seen. Sharp falls in U.S. equities seem possible given the recent outsize gains despite increasingly poor fundamentals. However, sharp losses on Wall Street could lead to further short term gold weakness if there is margin call selling. There was short covering action yesterday and we expect more short covering however the scale of the losses in Japan overnight and risks of sharp falls in European and U.S. markets mean that in the short term, gold may be vulnerable. There remains the risk of a massive short squeeze in the gold market as speculators such as Wall Street banks and hedge funds have made “the biggest bet ever against gold prices."

GoldCore on Physical premiums: Short covering by the hedge funds who are massively short is likely to propel gold higher, recovering much of the losses in recent months. It is likely to do so as the shorts are trend following speculators who are again completely ignoring the very positive gold fundamentals with massive demand for physical and rising premiums globally. Gold’s price premium on the Shanghai Gold Exchange stood at $22/oz and remained above $20/oz for a fourth consecutive trading day overnight. India is paying a premium of nearly $40 per 10 gramme bars. Dubai buyers are paying a premium of $7-10 per kilogramme. Turkey is reported to be paying a premium of $25 an ounce over spot prices. Hong Kong and Singapore buyers are paying premium of $5 per ounce for gold bars. Markets are becoming more and more casino like and are now the preserve of speculators. For prudent pension owners, investors and savers this makes an allocation to physical gold more important than ever.

Bill Holder: QE is "code" for outright monetization. It is high falutin (sp?) gobbledygook speak for plain old fashioned PRINTING. "Printing" to purchase Treasury securities that no one else wants nor would purchase. Pure printing to be used to buy "stuff". "Stuff" as in assets that need "help" to keep their prices high so that the message that "all is well" continues to ring throughout the realm. Pure and unadulterated printing that is used to paint the pretty (false) pictures so the populace will continue to sleep in oblivion. Without the infusion of new money, current asset values are not and cannot be justified in any world that we know of. However, the Japanese and U.S. Treasury markets interest rates have crossed 2 "round numbers", 1% and 2% respectively. This CANNOT continue, rates CANNOT go up...or the entire system will collapse in a heap into one giant black hole of insolvency, because the sovereigns will not be able to pay the debt on the principle. The "few" trillion of these Treasury securities have a "leech" market attached to them. This market is at a minimum 100 times the size of the paper market itself and is where the banks trade amongst themselves. "Someone, somewhere" is going to lose, lose big, and go broke...which of course will break the daisy chain of false values and solvency and start the asymmetric calling of failed sovereign bonds and interest rate derivatives. Please keep in mind that all of the above is happening at the exact same time that hedge funds have built the biggest short position in "paper" Gold ever. Maybe they are correct? Maybe the paper contracts that they have shorted will actually go to zero? Maybe the speculators will finally wise up and realize that since there is no real Gold behind these contracts that they are worth zero and sell them off? If I may make a suggestion, could it possibly be that those who rode the Ponzi in paper assets are the same ones who are short paper Gold? Could a margin call in one place create liquidation (and more margin calls) in another? If this was not "systemic" I would advise grabbing the popcorn but life everywhere on this planet is about to change. What comes should not be a surprise to anyone.

James Turk (via King World News): There are lengthening delivery delays in the London gold market, adding to evidence of strain in the gold market around the world, and predicts that the paper shorts are about to be overrun. We are seeing some extraordinary events in the gold market. One of these was yesterday's London PM fix, which people are still talking about. Gold was trading quietly around $1385 just before the fix. Then, as the fix commenced, gold rose within roughly 15 minutes to $1414. It was a real rocket-shot and caught the shorts by surprise. But the shorts regrouped, in order to regain control, and gold then dropped lower in the next 30 minutes. After the fix ended, gold had fallen to below $1370. We have to consider the significance of this extraordinary event. The London PM fix, which takes place every business day at 3 PM London time, is one of the most important daily events in gold. It occurs when both the London and North American markets are open, so it has deep liquidity. The London fix is widely misunderstood because of its name, but if you view it in a nautical sense, to 'fix' on a distant point, the term makes sense. What the fix aims to do is discover the price at which buyers and sellers of physical ‘London Good Delivery’ bars are in balance. The dealers keep offering bars for sale or bidding on bars for purchase until there is a balance between them in order to clear the market, which is why yesterday's fix was so significant,

James Turk on gold shortages: Different markets reflect the tightness in physical metal in different ways. For example, India and Shanghai reflect the tightness with huge premiums. Futures contracts reflect the tightness by moving into backwardation, but the true extent of the current backwardation between May and June is being distorted by manipulating interest rates. But in London, the tightness cannot be distorted or hidden. We can see the tightness by the shorts delaying delivery, which is happening right now. So it is clear that the buyer or buyers who pushed the gold price up during the London PM fix yesterday were obviously desperate to get their hands on physical metal and were prepared to pay whatever price it took to obtain it. The hedge funds in particular have been piling on and now have a record short position. Maybe they foolishly believe that gold's 5,000-year history as money ends here. The only thing about to end is the hedge fund short positions as the gold and silver prices look ready to blast off from current levels. KWN readers should expect a major upside move that will panic these hedge funds out of their short positions. In other words, the physical market is about to take down the paper traders who are massively overexposed on the short side.”

Chris Powell: Gene Arensberg's latest edition of the Got Gold Report has been posted in video format and it finds the big commercial traders unloading their short positions in silver to the lowest point in 13 years. https://www.gotgoldreport.com/2013/05/courtesy-release-of-new-video-got-gold-report.html

Ted Buter: I filed a complaint to the GAO web site, and the GAO called me back. We had several conference calls. The GAO is sort of a inspector general for all government agencies. They generally respond to congressional requests, but they can take on investigations on their own initiative. Please write me and ask for my copies of the correspondence with the GAO and write the appropriate committees asking for their support for the GAO.

Harvey: Early last night (see below) the Japanese stock market opened badly down with a massive sell off into the close. The yields on the Japanese bonds rose to 1% which caused the authorities to halt trading in the bond market for the 3rd time since Abe announced his new policies. The mark to mark losses to the banks on their tier one assets are enormous. The banks just cannot withstand such a large sell off in such a short time. This triggers derivative losses as we have outlined to you on previous occasions. While this was going on, China, reported its first below 50 HSBC PMI manufacturing index results, and it came in at 49.6 and thus China is now officially in contraction mode. The problem is that the world needs China to produce goods at warp speed. A slowdown in China will send negative signals throughout the globe. After the Nikkei was solidly up on the day, suddenly this bourse swooned. At the end of the day it was down 1143 points and it had an interday swing of 1500 points. The yen rose dramatically on the day closing at 101.72 and at one point it was 200 basis points higher trading against the USA dollar. Thus global risk is off day with all bourses in the red. Gold and silver reversed course and are both higher on the day with gold at 1390.00 and silver at 22.64.

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

Quote:

Gold closed up $15.40 to $1392.00 (Comex closing time).

Silver rose by 3 cents to $22.49 (Comex closing time)

Gold: 1391.50

Silver: 22.63

Wednesday, May 22nd Gold and Silver Action (basis 1:30 PM EST)

https://harveyorgan.blogspot.com/2013/05/japanese-nikkei-halted-last-nightbond.html

Total, May (Silver), Jun (Gold), Jul (Silver) Open Interest

In silver

Quote:

The total silver Comex OI completely plays to a different drummer than gold. It fell by 1308 contracts from 148,619 down to 147,311, with silver's slight rise in price of 2 cents yesterday. The front active silver delivery month of May saw it's OI fall by 15 contracts down to 149. We had 10 delivery notices filed on Wednesday so we lost 5 contracts or 25,000 of silver will not stand for delivery in May. The next delivery month for silver is June and here the OI fell by 22 contracts to stand at 372. The next big active contract month is July and here the OI fell by 2711 contracts to rest tonight at 77,863. It looks like we had some short covering as the bankers might be thinking that the silver situation was a little steamy for them.

In gold

Quote:

The total gold Comex open interest rose by 6961 contracts from 446,087 up to 451,335 with gold falling by $1.20 yesterday. The front non active delivery month of May saw its OI fell by 16 contracts down to 1056. However we had 18 delivery notice filed on Wednesday. Thus we gained 2 gold contracts in May or an additional 200 oz will stand. The next active contract month is June and here the OI fell by 14,912 contracts to 159,968 as most of these paper players rolled into August. June is the second biggest delivery month in gold's calendar and first day notice is a week today as Friday is a holiday.

Volume

In silver

Quote:

The estimated volume today was good, coming in at 43,080 contracts.

The confirmed volume on Wednesday was huge at 80,863.

In gold

Quote:

The estimated volume today was huge at 233,608 contracts.

The confirmed volume on Wednesday was extremely good at 397,981 contracts.

Inventory Numbers

In silver:

Quote:

Today, we had good activity inside the silver vaults.

We had 0 dealer deposits and 0 dealer withdrawals.

We had 2 customer deposits:

i) Into CNT: 600,055.70 oz

ii) Into Scotia: 549,652.07 oz

Total customer deposit; 1,1149,707.77 oz

We had 1 customer withdrawal:

i) Out of Scotia: 60,354.66 oz

Total customer withdrawals: 60,354.66 oz

We had 1 adjustments today

i). Out of the CNT vault: 161,149.10 oz was adjusted out of the customer and back into the dealer account at CNT

Registered silver at: 43.716 million oz

Total of all silver: 165.338 million oz.

In gold:

Quote:

We had fair activity at the gold vaults.

The dealer had 0 deposits and 0 dealer withdrawals.

We had 0 customer deposits today:

Total customer deposit: nil oz

We had 1 customer withdrawal today:

i) Out of Scotia: 64,136.441 oz

Total customer withdrawals: 64,136.441 oz

We had 1 adjustment:

i) Out of Brinks: 600.01 oz was adjusted out of the customer account and back into the dealer account at Brinks.

Total adjustment: 600.01 oz.

The JPMorgan customer vault remains at 297,426.75 oz today or 9.25 tonnes as there were no transactions

Tonight the dealer inventory remains tonight at a low of 1.668 million oz (51.88) tonnes of gold. The total of all gold falls again to its low point at the Comex, resting tonight at 7.897 million oz or 245.62 tonnes.

Delivery Notices

In silver:

Quote:

The CME reported that we had 40 notices filed for 200,000 oz.

In gold:

Quote:

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

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

In silver:

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

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

Quote:

We have a total of 3,333 notices filed so far this month for 16,665,000 oz. To calculate the number of ounces that will stand in silver, I take the OI standing for May (149) and subtract out today's notices (40) which leaves us with 109 notices or 545,000 oz left to be served upon our longs.

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

3333 contracts x 5000 oz per contract (served) = 16,665,000 + 109 contracts x 5000 oz = 545,000 oz ( to be served) = 17,210,000 oz.

We lost 5 contracts or 25,000 of silver which will not stand for May today. The total standing for silver is still superb for May.

The total amount standing for May in silver represents 51.22% of ANNUAL silver production from the USA

In gold:

Quote:

To calculate the quantity of gold ounces that will stand, I take the OI standing for May (1056) and subtract out today's notices (0) which leaves us with 1056 notices or 105,600 oz left to be served upon our longs.

Thus we have the following gold ounces standing for metal in May:

1982 contracts x 100 oz per contract or 198,200 oz (served) + 1056 notices or 105,600 oz (to be served upon) = 303,800 oz or 9.45 tonnes of gold.

We gained an additional 200 oz of gold standing for the May delivery month.

This is extremely high for a non active month.

It is also interesting that the USA produces around 20 tonnes of gold per month and thus the amount standing for gold this month represents 47% of that total production.

Select Commodity Prices:

The Bloomberg Baltic Dry Index (BDI) was 828.0 down 0.12%. WTI June crude was 94.17 up 0.20. Brent closed at 102.45 down 1.46. The spread between Brent and WTI was 8.28, down 0.35. The 30 year US Treasury bond was down 0.012 at 3.197. The dollar was down 0.53 at 83.82. The PPT/Dow was 15,294.50 down 12.67, ABOVE the very key round number of 15,000! Facebook was 25.06 down 0.10 (0.39%). Silver closed up 0.36 at $22.63. July wheat was up 14.60 at 703.20. July corn was up 3.40 at 662.00. June lean hogs were 94.200 down 0.350. August feeder cattle were 142.500 down 0.150. July copper was 3.3040 down 0.0765. June natural gas was 4.261 up 0.075. June coal is 61.42 up 0.60.

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

https://harveyorgan.blogspot.com

Goooood day!

•••••••••••••••••

Thu, May 23, 2013 - 10:38pm
Mr. Fix
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Thanks Daystar

I'll be back Sunday,

see you then!

"When the student is ready, the teacher will appear."
Sat, May 25, 2013 - 5:02pm
DayStar
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~~Harvey 25 May 2013


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

The FDIC did not seize any banks this week.

Commitment of Traders Report

Gold: From the dealer side of things: neutral

From the large specs side of things: hugely bullish as they are continually going net short.

Are these guys being set up to be slaughtered?

[DS: JPM has thousands of subsidiary companies, and probably a lot of these large specs are JPM subsidiary companies. JPM needed someone to take the other side of the trade. If JPM takes down the specs, it will probably mean a commercial signal failure for gold, and gaps up. If they do take them down, it will probably mark the end of gold price suppression and the beginning of hyperinflation. Since the plan is to crash the dollar, the demise of the specs would mean they had pulled the plug. You know, if we can sit here and see this, the guys that do this day by day have to know better. They can see Tyler Durden's chart of gold shorts. They can see the specs are way off sides. They can see the shortage of physical. They are not stupid. To be doing what they are doing they have to be part of the plan, and maybe they are intended to be sacrificed as a means to pull the plug. After all if JPM buys up whats left at bankruptcy proceedings, have they really lost much? Or, if they crash the whole system, isn't it their objective to create chaos and end up owner of the world? So, they break some eggs to make their NWO omelette.]

Silver: From a commercial standpoint: very bullish.

News and Commentary

Harvey: The open interest on the gold contract fell by 5,818 contracts to 445,517. The gold deliveries for May rose a bit today to 9.48 tonnes and this is an off month for gold. The number of silver ounces, standing for delivery in May remained constant at 17.210 million oz. Total that was given on first day notice: 14.860 million oz. The Comex registered or dealer gold remains at 1.641 million oz or 51.04 tonnes. The total of all gold at the Comex rose slightly but still well below the 8 million oz at 7.993 million oz or 248.6 tonnes of gold. The GLD ETF reported another loss in gold inventory of 2.41 tonnes. The SLV ETF inventory of silver remained constant. The big June delivery month will surely be exciting to watch judging by the huge demand for gold in May. We will also see if the boys have any trouble servicing the last 1,042 contracts in the May delivery month We have 3 more trading sessions before first day notice. We will also watch what happens with JPMorgan with respect to its customer gold. It remains now at 9.25 tonnes of gold. Late Friday night, the CME issued a report showing that 1000 contracts were served upon our longs for Tuesday . JPMorgan was the sole issuer of gold representing 100,000 oz or 3.1 tonnes of gold. The OI outstanding prior to this notice filing was 1042 contracts. We will now wait until Tuesday to see the total OI standing as of Tuesday night to see if we have any increase in gold ounces standing. DS: If we don't have more gold ounces standing, this would indicate JPM's total inability to settle in fiat. That would be a significant change in the market, and would probably signify that sovereigns were standing for delivery.

Harvey: Here are the withdrawals from GLD for the week

  • Friday: 2.41 tonnes
  • Thursday: 1.5 tonnes
  • Wednesday: 3.01 tonnes
  • Tuesday: 8.42 tonnes
  • Monday: 6.91 tonnes
Harvey: Japan stabilized Thursday night but not before the yen increased in value sending holders of the Yen carry trade in a tizzy. The high volatility in the Japanese bond yields are causing massive derivative blowups at the Japanese banks. Also remember that the higher yields causes tier 1 asset to deteriorate which forces the banks to call in massive loans. Japan is one big mess!! DS: I wonder if Japan will be the trigger that crashes Europe. Steve Quayle said Japan was designed to be a sink for US Treasuries, but now they are crumbling. China has quit buying US Treasuries, and the Fed is the only leg of the three legged stool that is still standing. When the bond market goes, it and its derivatives will be so big, it will overwhelm the Fed.

Harvey: Friday afternoon, we witnessed a surprise Bloomberg article suggesting that Europe was ready to abandon the shadow banking industry. The shadow banking industry is huge and if you outlaw this practice, you suck the entire oxygen from the financial world. The world would immediately go into hyper-deflation as the entire world would stop functioning. Then why would these guys announce this? Something sinister is rearing its ugly head. DS: If TPTB did this, they will kill themselves. Hyper-deflation is the best thing that could happen for the people (what money they had would become vastly more valuable--those pennies in the jar, for example), so it won't. Hyperinflation destroys ordinary people, and makes banks rich. It is what will happen, because the banks want people dead. The dollar will become worthless and the bond market will crash. The bond market crash will destroy the wealth of the West and give it to the bankers. This talk of outlawing the shadow banking is probably designed to create an event to depress interest rates. They are not ready for interest rates to take down the system, so they keep pushing them down with news when market manipulation is not enough.

Harvey (via GoldCore): Jewelry demand in China is now 185 tonnes in the first quarter. If we extrapolate for the full year, we can easily see jewelry consumption in China will be 740 tonnes. With Indian demand clearly in excess of 1000 tonnes, together these two nations brings in 1740 tonnes out of 2200 tonnes produced by all mining operations globally ex China ex Russia or roughly 80% of global production. DS: This jewelry demand does not include global jewelry demand (except China), coin and bar demand globally, investment demand for digital gold, allocated gold demand, and storage.

Bloomberg: The fundamentals of the gold market, and indeed of the silver market as well, remain as sound as ever and will reward those with an allocation to physical bullion – either in allocated accounts or in one’s possession. DS: As Egon von Greyerz continues to show, allocated gold is not safe. Once you deposit anything in banks, it becomes theirs, and they will give it back to you if they choose. You are an unsecured creditor, thank you very much. It is deadly to put anything in a bank. Only leave enough there for operations and expect one day to lose whatever happens to be in there.

Michael J. Kosares: Moscow is preparing for a currency war by hoarding all of its annual production of 205MT. The more gold a country has, the more sovereignty it will have, if there’s a cataclysm with the dollar, the euro, the pound or any other reserve currency,” said Evgeny Fedorov, Russian lawmaker, United Russia Party. There is substantially less gold actually reaching the market today than there was 12 years ago, and by a wide margin when you consider the tonnage sequestered as mentioned above. In 2000, none of the gold production was sequestered by nation states to build monetary reserves (at least none that we know of), now, a significant portion is going into reserves in what might be considered a trend, or the first baby steps, toward a 21st century version of a gold reserve standard. Reuters quotes Sergei Kashuba, head of the Russian Gold Industrialists’ Union as saying, “If gold prices remain at a high level, gold output in Russia will continue to grow by 4-5 percent per year, which will allow it to become the third largest producer in the world in 2015.” Russian gold production is on the mend, and building its gold reserves is part of the Putin government’s attempt to shield Russia from a potential currency war between the yen, yuan, dollar and euro — the first volleys for which we have seen over the past few months. Keep in mind too that in terms of known reserves Russia reports 5000 metric tonnes. It ranks third behind Australia (7400 MT) and South Africa (6000 MT). The United States reports 3000 MT.

DS: Barrick is having problems at is new Pascua-Lama mine. Chilie has fined Barrick $16 million, the maximum permitted under Chilean law, for environmental infractions. Basically, Barrick lied about what it was going to do. The glaciers are causing problems, but Barrick has not even tried to do what it said it would do. It looks to me like TPTB do not want this mine to come on line and are sandbagging it with specious problems. First Barrick didn't have title to the land it was trying to mine. That is totally egregious. No one would start mining unless they had title unless they intended to use it to stop production. Second, they are trying to do a project shared by two countries. That enormously complicates things. They should pick one country or the other, and mine what they can in one country in two separate operations. The fact these countries are not being forced to comply with Barrick's desires says the project is not intended to go forward.

Egon von Greyerz (via King World News): At our company we are hearing more and more stories about banks not delivering gold that belongs to the client. We are talking about Swiss banks here once again. One client went to a Swiss bank to inspect his gold and the client manager said, ‘You can’t see it, but it looks like this,’ and he took a gold bar out of his drawer. the client showed me that he had a statement showing ounces of gold. Well, you don’t own physical gold in ounces in Europe. You own gold bars either in grams or in kilos, but not in ounces. You know automatically that it was paper gold the client owned because it was in units of ounces from a European bank. Today we heard from a client that was going to take his gold out of two major Swiss banks. This bank told him that he could only take out 200,000 Swiss francs worth of gold per annum. They started off by telling him 50,000 to 80,000 Swiss francs of gold could be taken out, but eventually they went up to 200,000. The other bank told him that he could not take out more than 80,000 Swiss francs worth of gold per year. The latest shocking news from suppliers is they are having a very difficult time getting hold of physical gold. Therefore, this week again they increased their spreads on physical gold. My message is very clear: Investors must hold physical gold outside of the banking system because this paper market will explode one day. DS: If that banker had an expensive gold bar in his desk drawer, it was probably because others had been asking to see their gold, and he was giving them the same song and dance.

Addison Wiggin: We got a small, if bitter, taste of gold’s “Zero Hour”, the hour when the price of real, physical gold in your hand starts to break away from the quoted price on the commodities exchanges, in the second half of April. The catalyst for Zero Hour, we suggested, would be when a major metals exchange defaults on a gold or silver contract — settling in cash, instead of metal. Sprott's research shows the government is dishording gold to continue to suppress the metals. Chris Martenson comments on the missing gold saying, “there’s a lot of missing gold in the U.S. equation, and it had to come from official sources, either of U.S. origin or belonging to other countries. Either way, the leased gold represents a tremendous liability of the Fed and the bullion banks to which it was loaned...In this context the gold slam begins to smell like an operation designed to shake as much gold as possible out of weak hands so that the bullion banks can begin to recover it to square up their accounts...Gold and silver,” Mr. Martenson suggests, “are getting closer to the day when you or I will not be able to purchase physical bullion at any price." CNBC’s voluble Rick Santelli said, "I don’t even look at gold as gold anymore… they securitized it” [DS: And now they treat it like a derivative rather than gold.] “If things [went] badly in the world that I used to observe as the gold bug, the gold would end up in the hands of the gold bugs. If things go badly now, they’re going to end up with [paper] checks from ETFs! Sorry, it’s not the same. The endgame is getting closer. Eric Sprott’s right-hand man, John Embry, said, “What I believe is going to happen, probably in the not too distant future, is that the pricing mechanism of the gold and silver markets will swing to the physical market, which cannot be manipulated, because, basically, either you’ve got it or you haven’t." But that’s when you won’t be able to get any metal at any price. Best act before then: “The current sell-off in gold,” says Eric Sprott, “should be viewed not with extreme trepidation, but as an unbelievable opportunity to buy the metal at an artificially low value.” DS: Why would the elites dishorde gold to keep the system going? Ans: The objective is not to make money. The objective is reduce world population, take physical possession of the whole world for ever, and completely enslave the population that is left. The means to accomplish these objectives is to flood the world economy with debt, debase currencies to worthlessness, and crash the currencies along with the global economy. The banksters continue to supply money while they increase debt. They want the crash to be as severe as they can possibly make it, and debt is the key. So, they supply gold to keep things moving, but the gold is running out, unless they are willing to dishorde it from ancient hidden stores.

DS: IMF head Christine Lagarde has been charged with embezzlement and fraud. The French newspaper, Le Monde, said that magistrates had already written to Mrs Lagarde to tell her that she should not expect any special treatment because of her high-profile international job. It is very unusual that an elitist person should get in trouble for theft and fraud, for that is what they routinely do. The reason Christine got into trouble seems to stem from the fact that the IMF is part of the American elitist cabal, and it has become a target for the Old World faction of the elties. Christine is now the second IMF head in a row to get into legal trouble. The previous IMF chief, Dominque Strauss-Kahn, was set up and charged with attempted rape while he was in NYC. These indictments of successive IMF chiefs who normally are above the law (the IMF headquarters in Basil, Switzerland is essentially a sovereign state not under the law of any other country) indicates all is not well in elitist land. The IMF has often been a lone dissenting voice, opposing the crazy financial antics of the troika. It appears to this scribe that the Old World elites intend to take down the American/Rockefeller branch of the elites and emerge as sole heirs to the plan to take over the world.

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

Quote:

Gold closed down $5.20 to $1386.80 (Comex closing time).

Silver fell by 1 cent to $22.48 (Comex closing time)

In the access market at 5:30 pm, gold and silver finished trading at the following prices:

Gold: 1386.30

Silver: $22.39

Thursday, May 23rd Gold and Silver Action (basis 1:30 PM EST)

https://harveyorgan.blogspot.com/2013/05/gld-lowers-inventory-againComex.html

Total, May (Silver), Jun (Gold), Jul (Silver) Open Interest

In silver

Quote:

The total silver Comex OI completely plays to a different drummer than gold. It rose by 31 contracts from 147,311 up to 147,342, with silver's slight rise in price of 3 cents yesterday. The front active silver delivery month of May saw it's OI fall by 40 contracts down to 109. We had 40 delivery notices filed on Thursday so we neither gained nor lost any silver ounces standing in the May delivery month. The next delivery month for silver is June and here the OI fell by 23 contracts to stand at 349. The next big active contract month is July and here the OI fell by 1196 contracts to rest tonight at 76,667.

In gold

Quote:

The total gold Comex open interest fell by 5818 contracts from 451,335 down to 445,517 with gold rising by $15.40 yesterday. I guess some of the paper players are giving up playing in the rigged Comex casino. The front non active delivery month of May saw its OI rise by 11 contracts up to 1067. However we had 25 delivery notice filed on Thursday. Thus we gained 36 gold contracts in May or an additional 3600 oz will stand for the May delivery month. The next active contract month is June and here the OI fell by 12,727 contracts to 147,241 as those who did not give up, rolled into August. June is the second biggest delivery month in gold's calendar and first day notice is a week away on Friday the 31st of May.

Volume

In silver

Quote:

The estimated volume on Friday was poor, coming in at 26,768 contracts.

The confirmed volume on Thursday was excellent at 50,132.

In gold

Quote:

The estimated volume Friday was fair at 164,465 contracts.

The confirmed volume on Thursday was extremely good at 257,252 contracts.

Inventory Numbers

In silver:

Quote:

Today, we had good activity inside the silver vaults.

We had 0 dealer deposits and 0 dealer withdrawals.

We had 2 customer deposits:

i) Into CNT: 600,055.70 oz

ii) Into Scotia: 549,652.07 oz

Total customer deposit; 1,1149,707.77 oz

We had 1 customer withdrawal:

i) Out of Scotia: 60,354.66 oz

Total customer withdrawals: 60,354.66 oz

We had 1 adjustments today

i) Out of the CNT vault: 161,149.10 oz was adjusted out of the customer and back into the dealer account

at CNT.

Registered silver at: 43.716 million oz

Total of all silver: 165.338 million oz.

In gold:

Quote:

We had fair activity at the gold vaults.

The dealer had 0 deposits and 0 dealer withdrawals.

We had 1 customer deposit today:

Into Scotia: 96,146.868 oz

Total customer deposit: 96,146.868 oz

We had 2 customer withdrawals today:

i) Out of Scotia: 32.15 oz

ii) Out of HSBC: 32.15 oz

Total customer withdrawals: 64.30 oz

We had 2 adjustments

i) Out of HSBC: 14,143.915 oz was adjusted out of the dealer account and back into the customer account at Brinks.

ii) Out of JPMorgan: 12,963.649 oz was adjusted out of the dealer account and back into the customer account.

The JPMorgan customer vault rises to close the week at 310,390.402 oz or 9.65 tonnes.

Tonight the dealer inventory reduces again and stands tonight at a low of 1.641 million oz (51.04) tonnes of gold. The total of all gold slightly rises, resting tonight at 7.993 million oz or 248.68 tonnes.

Delivery Notices

In silver:

Quote:

The CME reported that we had 40 notices filed for 200,000 oz of silver.

In gold:

Quote:

The CME reported that we had 25 notices filed Friday for 2500 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

Quote:

We have a total of 3,333 notices filed so far this month for 16,665,000 oz. To calculate the number of

ounces that will stand in silver, I take the OI standing for May (149) and subtract out today's notices

(40) which leaves us with 109 notices or 545,000 oz left to be served upon our longs.

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

3333 contracts x 5000 oz per contract (served) = 16,665,000 + 109 contracts x 5000 oz = 545,000 oz ( to be

served) = 17,210,000 oz.

We lost 5 contracts or 25,000 of silver which will not stand for May today. The total standing for silver is still superb for May.

The total amount standing for May in silver represents 51.22% of ANNUAL silver production from the USA

In gold:

Quote:

To calculate the quantity of gold ounces that will stand, I take the OI standing for May (1067) and subtract out Friday's notices (25) which leaves us with 1042 notices or 104,200 oz left to be served upon our longs.

Thus we have the following gold ounces standing for metal in May:

2007 contracts x 100 oz per contract or 200,700 oz (served) + 1042 notices or 104,200 oz (to be served upon) = 304,900 oz or 9.483 tonnes of gold.

We gained an additional 200 oz of gold standing for the May delivery month.

This is extremely high for a non active month.

We now have the official USA production of gold last year and it registered 230 tonnes. Thus approximately 19.16 tonnes of gold is produced by all mines in the USA. Thus the amount standing for gold this month represents 49.5% of that total production.

Select Commodity Prices:

The Bloomberg Baltic Dry Index (BDI) was 826.0 down 0.24%. WTI June crude was 94.15 down 0.020. Brent closed at 102.64 up 0.19. The spread between Brent and WTI was 8.49, up 0.21. The 30 year US Treasury bond was down 0.0220 at 3.1750. The dollar was down 0.12 at 83.50. The PPT/Dow was 15,303.10 up 8.60, ABOVE the very key round number of 15,000! Facebook was 24.31 down 0.75 (2.98%). Silver closed down 0.26 at $22.37. July wheat was down 5.60 at 697.40. July corn was down 4.60 at 657.20. June lean hogs were 94.875 up 0.675. August feeder cattle were 144.550 up a whopping 1.900. July copper was not updated. June natural gas was not updated. June coal is 61.50 up 0.08.

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

https://harveyorgan.blogspot.com

Goooood day!

•••••••••••••••••

Tue, May 28, 2013 - 10:37pm
DayStar
Offline
Joined: Jun 14, 2011
2586
14106

~~Harvey 28 May 2013

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

Today, the GLD reported another a loss in inventory of 3.91 tonnes. Everyday we witness massive amounts of gold leave London's vaults. The total Comex gold rose a bit and now stands at 8.065 million oz (250.6 tonnes). We had no change in silver inventory at the SLV. Here are the withdrawals from GLD for the past week:

  • Friday: 2.41 tonnes
  • Thursday: 1.5 tonnes
  • Wednesday: 3.01 tonnes
  • Tuesday: 8.42 tonnes
  • Monday: 6.91 tonnes

Harvey: Russia which has been adding 200,000 oz religiously for the past year, decided to add a little more to its official reserves last month to the tune of 269,000 oz or 8.36 tonnes. Last month, total central bank purchases amounted to 972,000 or 30.23 tonnes. Last year they purchased 550 tonnes so it looks to me that the lower prices have stimulated more central banks to add to their official holdings. I would like to point out that China does not announce when they have added to their official holdings. Generally all of China's production of 400 tonnes of gold goes into official holdings. Also please note that Greece has decided to buy gold. They know that they will be kicked out of the Euro and they will need to have some backing for the new drachma. DS: My first reaction to Greece buying gold, was, What!? They borrowed money to buy gold? Then I thought, well why not? Their currency is going to crash, and that will be all they will have left. Some pensioners might complain, though.

GoldCore: Central banks are buying gold as an overall strategy of forex portfolio diversification and the recent price drop will not deter them from a long term policy of diversification into gold. Central bank reserve managers are conservative rather than speculative [DS: What!? Have you been sniffing kryptonite again? Do you not know about Ben Bernanke and his mad printing? That's conservative?] and will ignore the day to day noise and price predictions emanating from certain banks in favor of passive allocations to gold as part of their foreign exchange diversification strategy. China’s foreign currency reserves have surged more than 700% since 2004 and are now enough to buy every central bank’s official gold supply - twice. China’s foreign reserves surpassed the value of all official bullion holdings in January 2004 and rose to $3.3 trillion at the end of 2012 and are at $3.4 trillion today. The price of gold has failed to keep pace with the surge in the value of Chinese and global foreign exchange holdings. Gold has increased just 54% in the last 5 years and 250% since 2004, with the registered volume little changed. We are confident that the PBOC is quietly accumulating gold and we expect another announcement from the PBOC, possibly this year, when they again disclose to the market that they drastically increased their gold reserves – possibly from 1,054 tonnes to between 2,000 and 3,000 tonnes. DS: Bill Holder says China may have as much as 10,000 tonnes.

Bloomberg: Technical analysts say that we have experienced a tradable bottom above $1,300/oz after the double bottom of April 16 and May 20. However, in the short term further weakness is possible and gold could test support at $1,300/oz. The long term fundamentals remain sound and will support gold. One of these fundamentals is central bank demand and gold will be supported by the news that Russia, Greece, Turkey, Kazakhstan and Azerbaijan expanded their gold reserves again in April. These central banks bought bullion to diversify foreign exchange reserves amid continuing concerns about the euro, the dollar and currency devaluations. The Belgian Central Bank said yesterday that about 25 tons of the European nation’s gold reserves have been lent to bullion banks according to Bloomberg.

Tyler Durden: The Hong Kong Mercantile Exchange suddenly shuttered its doors last week. Today we hear senior members of the exchange have been arrested because their being in possession of millions in fake paper assets. Why did this happen? With the recent collapse in the price of paper gold, suddenly the infinite rehypothection chain that whatever gold was at the HKMEx was used for, found itself in jeopardy, with margin funding pressure forcing collateral chains to break, as counterparties suddenly demanded excess margin on existing arrangements. The subsequent escalation in the serial failure of assorted "HKGF" deals may have been the ultimate reason why suddenly not only the very exchange - which may have been nothing than a glorified bonded warehouse for tons of LC collateral - was forced to promptly shutdown, but all those associated with it had to scramble to procure fake financial documents on short notice to avoid someone else's wrath, while the found a way to ride into the sunset. Naturally, all of the above is still speculation, and much can change in the coming hours and days as more information is disclosed, however, if indeed this is a scandal about (multiple times) encumbered gold, if it reaches the very top of HK's power structure, one can be assured that there will be some very angry counterparties on the losing side of whatever gold-financing deals Hong Kong's top politicians had engaged in over the past two years.

Bill Holder (Miles Franklin): The tide is going out in the world economy, and it looks like EVERYONE is naked and they don't even have shorts. Margin debt for stocks are at an all time high, shorts by hedge funds in Gold are at an all time high, printing by central banks are at an all time high, yields on sovereign bonds (even the deadbeats like Spain and Italy) were compressed to all time lows and are now rising...and the real economies across the globe are beginning to contract again. The "inflection point" has apparently arrived and fraud everywhere you look is being uncovered. In a system that runs on debt, "collateral" is the foundation. What are the ramifications when "collateral" is questioned and turns out to be nothing more than a piece of paper with no value whatsoever? Everything that has derived value from this initial capital ...is worth nothing.

Chris Powell: Gerald Celente today tells King World News that there are two gold markets, the manipulated paper market and the physical market, and two gold worlds, the world that is manipulating gold and the world that is buying gold.

Alasdair Macleod (GoldMoney): With the East using the monetary metal to hedge its exposure to Western currencies and Western central banks nearly out of the metal necessary to control the price through the derivatives system, then "The sensible approach for Western central banks," Macleod writes, "is to defuse the problems arising by taking positive steps to ensure that gold markets operate properly. This is conceptually difficult, because the most likely result, a higher gold price, would risk undermining confidence in the major currencies and most probably damage the bullion banks in London. Despite these difficulties, realities have to be faced."

Bill Holder (Miles Franklin): If you were promised a 1% yield...and at the same time a 2% inflation rate, would you take the bait? THIS is exactly what Japan is "promising" investors. Mr. Abe with his new QE to inflation infinity is telling people that 2% inflation is their target yet 1% yield will be pegged as the top in 10 yr. bond yields. Does this make any sense? Why would anyone, anywhere accept a yield that is locked in for 10 years that is less than inflation? Especially if that inflation rate is "targeted" by the central bank? ...And to get to this inflation rate this central bank will grow their balance sheet at nearly 50% each year for the next 2 years? They definitely need "some" inflation yet they cannot afford higher interest rates. They are truly playing with fire but we may not even get to see it fail on its own before the "collateral" problem blows the top off of the system.

Tyler Durden: Russia insisted "it would deliver anti-aircraft missiles to Syria despite international criticism. Israel's defense minister Moshe Yaalon to immediately signal that "its military is prepared to strike shipments of advanced Russian weapons to Syria." The White House has asked the Pentagon to draw up plans for a no-fly zone inside Syria that would be enforced by the U.S. and other countries such as France and Great Britain.

Zero Hedge: Mike Hedlund spent 10 years fighting his student loan debt and won. This Klamath Falls native may have just made legal history by winning a 10 year battle to have the bulk of his $85,000 in federal student loans, which he accumulated as a law student at Willamette University in Salem, discharged. The result of this legal decision will likely have epic implications for an entire generation drowning in debt, as it has now "opened the flood gates" for all those in Mike's position to challenge their massive debt encumbrance.

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

Quote:

Gold closed down $7.70 to $1379.10 (comex closing time). Silver fell by 40 cents to $22.18 (comex closing

time)

In the access market at 5:00 pm, gold and silver finished trading at the following prices :

Gold: 1380.80

Silver: $22.31

Friday, May 24th Gold and Silver Action (basis 1:30 PM EST)

https://harveyorgan.blogspot.com/2013/05/gold-closed-down-770-to-137910-on.html

Total, May (Silver), Jun (Gold), Jul (Silver) Open Interest

In silver

Quote:

The total silver Comex OI completely plays to a different drummer than gold. It rose by 31 contracts

from 147,311 up to 147,342, with silver's slight rise in price of 3 cents yesterday. The front active

silver delivery month of May saw it's OI fall by 40 contracts down to 109. We had 40 delivery notices

filed on Thursday so we neither gained nor lost any silver ounces standing in the May delivery month. The

next delivery month for silver is June and here the OI fell by 23 contracts to stand at 349. The next big

active contract month is July and here the OI fell by 1196 contracts to rest tonight at 76,667.

In gold

Quote:

The total gold comex open interest fell by 10,411 contracts from 445,517 down to 435,106 with gold falling

by $5.20 on Friday. I guess some of the paper players are giving up playing in the rigged Comex casino.

The front non active delivery month of May saw its OI fall by 26 contracts down to 1041. However we had 25

delivery notice filed on Friday. Thus we lost 1 gold contract in May or 100 oz will not stand for the

May delivery month. The next active contract month is June and here the OI fell by 21,557 contracts to

125,684 as those who did not give up, rolled into August. June is the second biggest delivery month in

gold's calender and first day notice is this Friday .

Volume

In silver

Quote:

The estimated volume on Friday was poor, coming in at 26,768 contracts.

The confirmed volume on Thursday was excellent at 50,132.

In gold

Quote:

The estimated volume today was huge at 398,909 contracts.

The confirmed volume on Friday was good at 179,511 contracts.

Inventory Numbers

In silver:

Quote:

Today, we had poor activity inside the silver vaults.

We had 0 dealer deposits and 0 dealer withdrawals.

We had 0 customer deposits:

Total customer deposits: nil oz

We had 1 customer withdrawal:

i) Out of Delaware: 1011.600 oz

Total customer withdrawal 1011.600 oz

we had 1 adjustment today

i) Out of the Delaware vault: 5,182.27 oz was adjusted out of the dealer and back into the dealer account

at Delaware

Registered silver at: 43.485 million oz

Total of all silver: 166.724 million oz.

In gold:

Quote:

We had fair activity at the gold vaults.

The dealer had 0 deposits and 0 dealer withdrawals.

We had 1 customer deposit today:

Into Scotia: 63,838.797 oz

Total customer deposit: 63,838.797 oz

We had 0 customer withdrawals today:

Total customer withdrawals: zero oz

We had 0 adjustments.

The JPMorgan customer vault remains at 310,390.402 oz or 9.65 tonnes.

Tonight the dealer inventory reduces again and stands tonight at a low of 1.641 million oz (51.04) tonnes

of gold. The total of all gold slightly rises, resting tonight at 8.057 million oz or 250.6 tonnes.

Delivery Notices

In silver:

Quote:

The CME reported that we had 40 notices filed for 200,000 oz.

In gold:

Quote:

Strangely the CME notified us on Friday that 1000 contracts or 100,000 oz was issued from the JPMorgan's

customer vaults. Let us see if this is subtracted tomorrow.

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

Quote:

We have a total of 3,333 notices filed so far this month for 16,665,000 oz. To calculate the number of

ounces that will stand in silver, I take the OI standing for May (149) and subtract out today's notices

(40) which leaves us with 109 notices or 545,000 oz left to be served upon our longs.

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

3333 contracts x 5000 oz per contract (served) = 16,665,000 + 109 contracts x 5000 oz = 545,000 oz ( to be

served) = 17,210,000 oz.

We lost 5 contracts or 25,000 of silver which will not stand for May today. The total standing for silver

is still superb for May.

The total amount standing for May in silver represents 51.22% of ANNUAL silver production from the USA

In gold:

Quote:

To calculate the quantity of gold ounces that will stand, I take the OI standing for May (1041) and

subtract today's notices 1000) which leaves us with 41 notices or 4,100 oz left to be served upon our

longs.

Thus we have the following gold ounces standing for metal in May:

3007 contracts x 100 oz per contract or 300,700 oz (served) + 41 notices or 4,100 oz (to be served

upon) = 304,800 oz or 9.480 tonnes of gold.

We lost 100 oz of gold standing for the May delivery month.

This is extremely high for a non active month.

We now have the official USA production of gold last year and it registered 230 tonnes. Thus approximately

19.16 tonnes of gold is produced by all mines in the USA. Thus the amount standing for gold this month

represents 49.45% of that total production.

Select Commodity Prices:

The Bloomberg Baltic Dry Index (BDI) was 822.0 down 0.48%. WTI June crude was 94.72 up 0.075. Brent closed at 104.14 up 1.50. The spread between Brent and WTI was 9.42, up 0.57. The 30 year US Treasury bond was up 0.1150 at 3.2900. The dollar was up 0.61 at 84.31. The PPT/Dow was 15,409.39 up 106.29, ABOVE the very key round number of 15,000! Facebook was 24.10 down 0.21 (0.87%). Silver closed down 0.12 at $22.27. July wheat was down 3.60 at 693.60. July corn was up 9.20 at 666.40. June lean hogs were 94..700 down 0.175. August feeder cattle were 145.450 up 0.025. July copper was 3.3150 up 0.0195. June natural gas was 4.174 down 0.063. June coal is 61.32 down 0.18.

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

https://harveyorgan.blogspot.com

Goooood day!

•••••••••••••••••

Wed, May 29, 2013 - 10:15pm
DayStar
Offline
Joined: Jun 14, 2011
2586
14106

~~Harvey 29 May 2013

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

News and Commentary

Harvey: The OI for the upcoming June gold contract still remains quite elevated at 75,576 with one day of trading left to go before first day notice on Friday. Total total Comex gold rose a bit and now stands at 8.043 million oz (250.6 tonnes). We had no change in silver inventory at the SLV. Tonight, the Comex registered or dealer gold remains at 1.641 million oz or 51.04 tonnes. The total of all gold at the Comex fell slightly and now above the 8 million oz at 8.043 million oz or 250.17 tonnes of gold. However we must see gold leave as contracts are settled for the May and June delivery months. DS: I am starting to see a lot of talk about interest rates. Lindsey Williams says when the interest rates rise, we will be facing the crash of the dollar and collapse of the system. Andrew Hoffman says Japan is collapsing as is Europe and interest rates are rising. Europe officially abandoned austerity today. To me, that should portend more inflating from more spending and inflation should cause interest rates to rise. Rising interest rates not only place huge additional burdens on an economy already trembling from exhausting, but rising rates also trigger derivative calls. Lindsey said he should know at least 3 days before they pull the plug on the economy, but he is not sure how much more he might get. Of course, since the crash of the bond market is the big kahuna, and they might make an exception with this since the objective is to use it to ruin everyone except them.

GoldCore: The Shanghai Futures Exchange announced yesterday that they will begin after-hours trading for gold and silver futures within one or two months. DS: To me this is a huge deal. When China opens, it tends to drive up prices over night. As soon as China closes the London "pre-market" has a field day with prices. If China stays open longer and buys longer, I think London will have a harder time. Of course, if Shanghai doesn't have anything to buy, it won't matter if they are open or not.

GoldCore on bullion supply: In Singapore, gold coins and bars are being sold at high premiums compared to the spot price as there is not enough supply in the market to meet the strong demand. Reuters quoted one broker who said that most of the bullion dealers in Singapore were sold out of bullion and that "everybody is buying and no one is selling." In India, certain states have either seen coin stocks fall to very low levels and others have actually run out of gold coins. In Hyderabad, a city of nearly 7 million people , gold and jewelery shops in the city have dwindling stocks of gold coins and bars. Some have completely run out of stock of the best-selling gold coins while others are having to ration their remaining stocks. The gold rush is expected to continue for some time, due to delays in jewellery and coin shops receiving supplies of coins from banks and bullion brokers. This is creating a delay in the entire supply chain.

GoldCore on the US Mint: The U.S. Mint sales of gold coins were the highest in 3 years after demand surged on the recent price drop. Yesterday, the U.S. Mint resumed sales of their 1/10th ounce gold coin after the mint ran out of inventory last month and suspended sales amid record demand. DS: The Mint also raised its prices on the 1/10 oz gold coin by 40%. The coins are selling for the equivalent of $1900/oz spot.

GoldCore on the potential of Gold: It remains prudent to ignore the poorly informed analysis of the speculators who have been responsible for much of the destruction of wealth in recent years. Few of them predicted this crisis and most do not understand the importance of diversification and the importance of gold as a safe haven asset. Nor do they know that gold remains nearly half its inflation adjusted high of $2,500/oz seen in 1980 (see chart) and the ramifications of that for the gold market in the coming months and years. Those who continue to focus on gold’s academically and historically proven safe haven qualities as an important diversification will again be rewarded in the coming months. DS: Bill HOlder said it is unprecedented that a market (e.g. PMs) to go up 11 years running, but you should try to think of gold as real money and not in terms of how many dollars it will buy. Just remember that 1 oz of gold at the end of Weimar could have bought a whole city block of real estate. We are likely headed for Weimar or something like it.

Matthew Boesler: The Treasury bond selloff ss 'For real' and the volume is gigantic. It's been a crazy few weeks in the Treasury bond market. After a big rally that began in mid-March, amid the outbreak of the Cypriot financial crisis and fears over a slowdown in global growth, Treasuries have given up all of their gains, and bond yields are now rising to the highest levels in over a year. This morning, the yield on the 10-year U.S. Treasury hit a high of 2.23%. Naturally, there is a lot of debate over where yields go next. Goldman Sachs, one of the prominent shops calling for higher yields, has published a call saying the sell-off in Treasuries is "for real" this time. Despite hitting a high of 2.23% earlier, yields have since backed down to 2.15%, and bonds are now positive on the day. And amid the wild price action, we're seeing a massive amount of trading in the market. Yesterday, trading volumes in the Treasury futures market on the Chicago Mercantile Exchange rose to an all-time high. DS: This extremely high volume looks like a market intervention to me. If they can't keep the interest rates down, then obviously there is going to be a bond crash and gargantuan derivate calls. The bond market crash is their centerpiece of money theft. It will likely go at the same time the dollar does.

PAUL B. FARRELL (Market Watch): Get defensive now, start preparing for a crash ... later is too late. Get it? Rates will go up. Way up. Very fast. And America’s 95 million Main Street investors will be unprepared. Markets will crash. Like 1994’s 24% bond crash after Fed rate increases, notes Wirz. The big players say the crash “won’t happen soon.” Don’t believe them. They’re betting with trillions. And they are hedging their bets, already preparing for “when rates take their first turn higher,” because rates will soar “swift and steep,” and when that happens it will be too late to prepare.

Chris Powell (GATA): The Reserve Bank today ruled out a ban on sale of gold coins but asked banks to refrain from aggressively selling the precious metal.

Gene Arensberg (Got Gold Report): Arensberg sees a huge imbalance in positions in the gold futures market, with the biggest traders just about longer than ever and hedge funds and speculators just about shorter than ever. "High-octane rally fuel" is in place. Harvey: Arensberg basically states that the Hedge funds are massively short gold right now and the set up is extremely powerful for a huge rally in gold. Norcini: Dan Norcini tells King World News that hedge funds are going short both gold and silver.

Steve St. Angelo (SRSrocco Report): Gold and Silver Maple Leaf sales increased substantially Q1, 2013. During the first quarter of 2013, Silver Maple Leaf sales were up 65% at 6.6 million ounces compared to 4 million ounces during the same period last year. The Royal Canadian Mint had a total of 18.1 million Silver Maple Leaf sales in 2012. If the current sales trend continues, there will be an estimated 23 million Silver Maple Leaf sales for 2013 -- 27% higher than 2012. U.S. Silver Eagle & Canadian Maple sales are still outpacing domestic mine production.

Texas Governor Rick Perry is expected to approve a bill that eliminates the sales tax on precious metal coins and bullion. Texas is all set to become the first state to fully expand a tax exemption for gold and silver. Texas' move to expedite gold and silver commerce to their citizens may also be tied to the growing movement towards possible succession, that has been simmering in the Lone Star state for decades.

And while the Texas constitution does not provide an amendment for succession, several state ratification documents for the Constitution in 1788 implied that when the Federal government had strayed from lawful, constitutional rule, the people (states) had the right and power to resume control over their own dominions.

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

Quote:

Gold closed up $11.00 to $1390.10 (Comex closing time). Silver rose by 22 cents to $22.40 (Comex closing time)

In the access market at 5:00 pm, gold and silver finished trading at the following prices :

Gold: 1392.70

Silver: $22.46

Tuesday, May 28th Gold and Silver Action (basis 1:30 PM EST)

https://harveyorgan.blogspot.com/2013/05/gold-and-silver-risegld-inventory.html

Total, May (Silver), Jun (Gold), Jul (Silver) Open Interest

In silver

Quote:

The total silver Comex OI completely plays to a different drummer than gold. Its OI fell by only 933 contracts to 145,299, with silver's fall in price of 40 cents yesterday.

The front active silver delivery month of May saw it's OI fall by 17 contracts down to 82. We had only 1 delivery notice filed yesterday so we lost 16 contracts or 80,000 oz silver ounces standing in the May delivery month.

The next delivery month for silver is June and here the OI fell by 67 contracts to stand at 242.

The next big active contract month is July and here the OI rose by 122 contracts to rest tonight at 75,576.

In gold

Quote:

The total gold Comex open interest fell big time by 24,105 contracts from 435,106 down to 411,001 with gold falling by $7.70 yesterday. I guess some of the paper players are giving up playing in the rigged Comex casino as they refuse to roll despite the low cost in transferring to the next big delivery month of August.

The front non active delivery month of May saw its OI fall by 998 contracts down to 43. However we had 1000 delivery notice filed yesterday. Thus we gained 2 gold contracts in May or an additional 200 oz will stand for the May delivery month.

The next active contract month is June and here the OI fell by 50,158 contracts to 75,526 as those who did not give up, rolled into August. June is the second biggest delivery month in gold's calendar and first day notice is this Friday .

Volume

In silver

Quote:

The estimated volume today was poor, coming in at 26,099 contracts.

The confirmed volume yesterday was excellent at 57,667.

In gold

Quote:

The estimated volume today was good at 293,524 contracts.

The confirmed volume on Tuesday was extremely good at 441,145 contracts.

Inventory Numbers

In silver:

Quote:

Today, we had huge activity inside the silver vaults.

We had 0 dealer deposits and 2 dealer withdrawals.

i) Out of the dealer CNT: 622,358.42 oz

ii) Out of the dealer Scotia: 5277.07 oz

Total dealer withdrawal: 627,635.49 oz

We had 2 customer deposits:

i) Into CNT: 49,102.36 oz

ii) Into Delaware: 2044.70 OZ

Total customer deposit; 51,147.06 oz

We had 3 customer withdrawals:

i) Out of Brinks: 15,317.29 oz

ii) Out of JPM: 622,282.10 oz

iii Out of Scotia: 600,555.06 oz

Total customer withdrawal 1,238,154.45 oz

We had 1 adjustment today

i. Out of the JPM vault: 10,431.30 oz was adjusted out of the dealer and back into the customer account at JPM

Registered silver at: 42.847 million oz

Total of all silver: 164.909 million oz.

In gold:

Quote:

We had fair activity at the gold vaults.

The dealer had 1 deposit and 0 dealer withdrawals.

i) Dealer Brinks received 1 gold brick containing 1000.02 oz

We had 0 customer deposits today:

Total customer deposit: nil oz.

We had 1 customer withdrawal today:

i) out of HSBC: 14,143.915 oz

Total customer withdrawals: 14,143.915 oz

We had 0 adjustments

The JPMorgan customer vault remains at 310,390.402 oz or 9.65 tonnes. Strangely the CME notified us on Friday that 1000 contracts or 100,000 oz was issued from the JPMorgan's customer vaults. This figure has not yet been subtracted from any JPMorgan account, customer or dealer.

Tonight the dealer inventory reduces again and stands tonight at a low of 1.642 million oz (51.04) tonnes of gold. The total of all gold slightly rises, resting tonight at 8.043 million oz or 250.17 tonnes.

Delivery Notices

In silver:

Quote:

The CME reported that we had 14 notices filed for 70,000 oz.

In gold:

Quote:

Today we had 35 notices served upon our longs for 3500 oz of gold.

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

In silver:

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

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

Quote:

We have a total of 3,358 notices filed so far this month for 16,790,000 oz. To calculate the number of ounces that will stand in silver, I take the OI standing for May (82) and subtract out today's notices (14) which leaves us with 68 notices or 340,000 oz left to be served upon our longs.

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

3358 contracts x 5000 oz per contract (served) = 16,790,000 + 8 contracts x 5000 oz = 340,000 oz (to be served) = 17,130,000 oz.

We lost 16 contracts or 80,000 oz of silver standing today. The total standing for silver is still superb for May.

The total amount standing for May in silver represents 50.9% of ANNUAL silver production from the USA (the USA produces around 33.6 million oz per year.)

In gold:

Quote:

To calculate the quantity of gold ounces that will stand, I take the OI standing for May (43) and subtract today's notices (35) which leaves us with 8 notices or 800 oz left to be served upon our longs.

Thus we have the following gold ounces standing for metal in May:

3042 contracts x 100 oz per contract or 304,200 oz (served) + 8 notices or 800 oz (to be served upon) = 305,000 oz or 9.486 tonnes of gold.

We gained 200 oz of gold standing for the May delivery month.

This is extremely high for a non active month.

We now have the official USA production of gold last year and it registered 230 tonnes. Thus approximately 19.16 tonnes of gold is produced by all mines in the USA. Thus the amount standing for gold this month represents 49.5% of that total production.

Select Commodity Prices:

The Bloomberg Baltic Dry Index (BDI) was 818.0 down 0.49%. WTI June crude was 93.13 down 1.59. Brent closed at 102.23 down 1.91. The spread between Brent and WTI was 9.10, down 0.32. The 30 year US Treasury bond was down 0.0180 at 3.2720. The dollar was down 0.65 at 83.65. The PPT/Dow was 15,302.80 down 106.59, ABOVE the very key round number of 15,000! It was down almost exactly as much today as it was up yesterday. Facebook was 23.32 down 0.78 (3.24%). Silver closed up 0.19 at $22.46. July wheat was up 9.00 at 702.60. July corn was up 1.40 at 665.00. June lean hogs were 94..725 up 0.025. August feeder cattle were 145.400 down 0.225. July copper was 3.2970 down 0.0180. June natural gas was 4.148 down 0.026. July coal is 60.70 down 0.53.

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

https://harveyorgan.blogspot.com

Goooood day!

•••••••••••••••••

Wed, May 29, 2013 - 10:55pm
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Good evening DayStar,

That was a very exciting commentary there, it appears that the Fed is going to have to print more money if they want to keep buying up all of those worthless bonds.

Jim Willie said that 85 billion per month would need to be increased, that is not enough.

I am now starting to comprehend the black hole that he was talking about. The more money that is printed, the more it takes to keep the interest rates low, therefore more money needs to be printed every time more money is printed. Truly a vicious cycle, with no way out other than to keep printing ever faster and faster.

I'm not seeing any way to avoid a hyperinflationary death spiral at this point, and it appears to be approaching rather quickly. I suspect that there is already far more than $85 billion a month being created, for example, when the interest rates on the ten year bond started to rise today, who's to say that a few billion dollars created out of thin air to purchase those bonds wasn't immediately ordered, and delivered. Of course, there would be no such press release.

So, with the the timetable extended six months on the collapse at the beginning of the year, I'd say we are just about there now.

Knowing that both bonds and cash are about to be worthless, why do you think that the powers that be are saving the bonds for last, "in order to preserve their own wealth while simultaneously destroying everyone else's?"

I would have to assume that they know full well that if they haven't already stockpiled gold, there's no point in any of the other stuff.

I am beginning to think that there is a limit to how much money you can print and keep the system stable,

and it's looking like we have just about reached that limit globally. But more importantly, I think the dollar is in a particularly precarious position, because if the world reserve currency status is lost, and I would say we are just about there, the amount of unwanted dollars simultaneously dumped on the open market will have a catastrophic effect on its value, virtually overnight.

This really is getting quite interesting.

By the way, thank you for a wonderful synopsis of the days news, I just got in after a long day at work, and your Harvey report was the first thing I opened to.

It really is an excellent way to find out what happened today while I was gone.

Thank you.

"When the student is ready, the teacher will appear."
Thu, May 30, 2013 - 5:22pm
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RE: Why Bonds?

Mr. Fix, if they have all the gold, they have the fungible wealth, but land is wealth. It is just not fungible. Getting the bonds will enable them to have a lien on the real estate of the world. They will have a lawful claim on almost everything after they buy the bonds and cause the crash. The US Treasury bonds are a lawful claim on the tax stream in the USA. Whoever owns a bond owns a claim on that tax revenue and the assets of the "corporation USA".

Lindsey Williams says the hour is coming when there will be food on the shelves in the stores, but people will not be able to afford to eat, because money is so worthless. Maybe that's where the FEMA camps come in. People leave home to be able to eat. Lindsey says they could crash the system at any time, but they don't have enough debt yet. I guess that means they don't have enough RE mortgaged. They intend to crash the system and foreclose on the collateral, legal or not.

DayStar

Thu, May 30, 2013 - 9:46pm
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One more question for you DayStar:

While I was pushing a paintbrush today, I was thinking about one of your recent comments pertaining to China, where you asserted with complete confidence that China was all in this “new world order”.

Why would a country so actively working towards global dominance be interested in a one world government?

It appears to me, that China, if it plays its cards right, could actually become “the world's lone superpower”.

Now first off, I realized that China does not fit into prophecy very much, but they sure as heck seem to be a player right now.

We have an abundance of evidence as to who the Western New World order players are,

what evidence do you have that China is in the gang, and what are the odds that they would continue to play ball if they own most of the worlds resources after the shit hits the fan scenario plays out?

Just wondering.

"When the student is ready, the teacher will appear."
Thu, May 30, 2013 - 9:54pm
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~~Harvey 30 May 2013

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

News and Commentary

Harvey: The total amount of silver standing for delivery in May on Comex represents 50.83% of the ANNUAL silver production from the USA (the USA produces around 33.6 million oz per year). The open interest on the entire gold Comex contracts fell by 27,210 contracts to 383,741 which is extremely low considering we still have one more reporting day and then on top of this we have deliveries which must be subtracted from OI.There is no question that all of the speculators in gold have now departed. Only the strong remain. The GLD reported no change in inventory in gold. The SLV inventory of silver lost 966,000.

GoldCore: Physical gold demand remains robust internationally and supply issues in Singapore have led to premiums reaching a record high there. Traders and speculators are watching the $1,413/oz resistance level. A daily close above this level will likely trigger the beginnings of a short squeeze. Some of the buying on futures markets may be shorts being forced to cover their record short position. The COT (Commitments of Traders) data clearly shows that there is the strong possibility of a significant squeeze of speculators short gold. This could be a catalyst to propel gold higher. Strong premiums for gold bars in Asia show that jewellers and investors are busy buying bullion on this dip. In Singapore, Reuters reports that “supply constraints” have sent premiums to “all time highs” at $7 to spot London prices. There is the real risk of a material correction in the U.S. and other markets and this should lead to renewed diversification into gold. It will also lead to renewed safe haven demand if other markets see stocks plummet as has been seen in Japan in recent days.

PIMCO (The Telegraph): Mark Carney will try to devalue the pound by as much as 15pc after he takes over as Bank of England Governor in July in a last ditch attempt to cement the UK recovery, Pimco, the world’s largest bond house, has warned. DS: Lindsey Williams has warned that Bernanke has spoken of devaluating the US dollar. In the speech Bernanke gave several years ago that pleased the elites enough to get him the Fed chairmanship, he outlined a number of tools at the disposal of a Fed chairman. He has used every one of them except devaluation. Now we see rumors concerning the new BOE chairman, and the rumor has it that he will devalue the sterling. If he does, can the dollar be far behind?

Grant Williams’ recent presentation to the 66th annual CFA Conference in Singapore showed the math suggesting that the world’s major stock markets are due to see a big downward correction/crash, as history, economic theory, and simple mathematics are all pointing in this direction. It is illogical, Williams avers, that markets should be rising when virtually every other economic indicator is pointing in the other direction. In his view a market fall of significant proportions is imminent – the only thing holding it up is the naivety of investors in the true interpretation of the utterances from the U.S. Fed, the ECB and Bank of Japan et al and where their policies will ultimately lead us.

Martin Mittelstabdt (The Globe and Mail): The Royal Canadian Mint has issued two exchange-traded receipts, one representing a weight of gold, the other a weight of silver, that are currently trading for less than the market value of the precious metals they represent. The discount is modest. For the gold ETR, it was 1.7 per cent on Wednesday; for the silver receipt, slightly less than 1 per cent. Still, it is uncommon to find securities exchangeable for precious metals worth less than their current metal prices, especially when the securities are backed by the mint, which is backed by the full faith and credit of the triple-A-rated federal government. "We're trading at a bit of a discount. We aren't exactly sure why," comments Steve Higgins, senior manager of investor relations at the mint. He has been surprised that the securities have been trading so cheaply compared with their metal value, especially since the mint's telephones "kind of went nuts" this year with institutions clamouring to meet investor demand to buy coins and bullion. Demand for gold coins in the first four months soared 123 per cent from the same period in 2012; for silver coins, it’s up 88 per cent. The discount is particularly unusual considering investors holding enough of the receipts can take them to the mint and redeem them for gold coins or bars held in the Crown corporation’s fortress-like vault near the Parliament buildings. DS: The shares in the RCM can be naked shorted, just like the miner shares. We could have any kind of PM shares on a tear, now could we?

Reuters: Premiums for physical gold in Singapore touched new highs this week as supplies proved hard to acquire, even as premiums in other Asian countries eased after gold prices bounced off two-year lows seen in April. Dealers in Singapore, a center for bullion trading in Southeast Asia, were quoting up to an ounce over spot London prices for gold kilogram bars, versus last week. Gold kilo bars continue to be scarce and some dealers, unable to fill demand, have had to stop taking orders." Singapore is still facing a shortage. As long as there are no ready stocks, premiums will be high," said Brian Lan, managing director of bullion dealer GoldSilver Central Pte Ltd in Singapore. "There is a huge backlog." At the moment: *The setup for gold, both fundamentally and technically, is extremely bullish and is setting the stage for stage for a move into all-time high ground as the year wears on. That said, the bullish excitement over today’s stellar move up in the price is likely to be met with disdain by The Gold Cartel. After all, tomorrow is Friday and they hit gold 85% of the time on Fridays. Just the way it is. In light of what gold did today, the silver action was TERRIBLE. It seems there is always something with The Gold Cartel. JP Morgan is not through with their heinous short trade yet. The awful sentiment in the precious metals sector remains a huge positive factor. Indicative of just how bad it is everywhere was how empty the Cambridge House conference was, the worst in decades in terms of attendees and exhibitors. The scorched early policy towards the precious metals sector has worked. But, it is setting the stage for some super fireworks down the road.

World Gold Council: "Asian markets will see record quarterly totals of gold demand in the second quarter of 2013," WGC Managing Director Marcus Grubb said. Grubb said as net imports of gold into China reached around 160-170 tonnes in April alone and physical demand shows no sign of abating, total offtake this year could reach more than 880 tonnes. This compares to a previous forecast of 780-880 tonnes. Gold investment in the West, however, plunged this year as a brighter view of the U.S. economy prompted investors to favour other assets such as stocks over bullion. DS: Bullion investment did not plunge. It went ballistic, but this report factors in the elites taking bullion out the back door of GLD while speculators sold off their shares of GLD to guys like Soros who promptly cashed it out in physical gold.

Tyler Durden: The retracement in USD/JPY below 101.20 was key yesterday and selling persisted overnight as the Nikkei dropped another 5.15%. The key phrase in Japan: the risk signal is the USA/Yen but the hope signal is the Nikkei. Just like every other insolvent country, the pension fund is the last bastion of preserving the rally, when even the central bank fails.

New York Times: The European Central Bank warned on Wednesday that the euro zone’s slumping economy and a surge in problem loans were raising the risk of a renewed banking crisis, even as overall stress in the region’s financial markets had receded. [DS: financial "stress...had receded"--in what alternate universe? ]. The most vulnerable banks were those in countries with high unemployment or falling house prices. That list would include Italy, Spain, Greece and Portugal among others. But ailing banks are also a problem in stronger countries like Germany, where Commerzbank and publicly owned landesbanks, or state banks, are struggling with bad loans to the shipping industry and other problems. The limited ability of European banks to absorb losses and the lack of a full banking union are potential threats to achieving a lasting stability, the O.E.C.D. said. DS: Of course, this "full banking union" with the NWO in charge is the ultimate objective.

Bill Holder (Miles Franklin): I have said all along that the only real solution to making the global banking system solvent once again would be marking the price of Gold up many many multiples. This "mark up" will fill central bank balance sheet holes AND take the ownership up, out and away from the ability of the common man to purchase and thus killing two or more birds with one stone. There of course will need to be some sort of cover story so that something can be pointed to as "the reason". As I see it, the BIS is pulling the plug on this whole daisy chain. In a system completely built AND running (surviving) on debt, what would be the absolute worst possible thing to happen? Yes, the "collateral" coming into question. This "cannot" come into question but surely looks like it is. Have you stocked up on collateral? Protect yourself and do it now.

Zero Hedge: Because of the pervasiveness of the Euro crisis, long-term unemployment (people who have been out of work for a year or more) is growing in the EU periphery and currently affects almost half of the unemployed population of Greece, Spain and Portugal. This means that many people will likely lose their unemployment benefits before they find a new job. Rising unemployment is also leading to a shrinking tax base in these countries, giving central governments fewer economic resources to support a more expensive system of unemployment benefits. With unemployment projected to remain well above its pre-crisis level in the medium term, questions over the sustainability of unemployment insurance will remain a key issue in the periphery of the eurozone.

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

Quote:

Gold closed up $20.90 to $1411.0 (Comex closing time). Silver rose by 27 cents to $22.67 (Comex closing time)

In the access market at 5:00 pm, gold and silver finished trading at the following prices :

Gold: 1414.10

Silver: $22.76

Tuesday, May 28th Gold and Silver Action (basis 1:30 PM EST)

https://harveyorgan.blogspot.com/2013/05/gold-and-silver-risegold-inside-gld.html

Total, May (Silver), Jun (Gold), Jul (Silver) Open Interest

In silver

Quote:

The total silver Comex OI completely plays to a different drummer than gold. Its OI rose by 674 contracts to 145,973, with silver's rise in price of 22 cents yesterday. The front month of May is now off the board. The total number of notices served for the month is represented by 3416 contracts or 17,080,000 ounces of silver which will in all probability be the final number standing. The next delivery month for silver is June and here the OI fell by 39 contracts to stand at 203. The next big active contract month is July and here the OI fell by 572 contracts to rest tonight at 75,004.

In gold

Quote:

The total gold Comex open interest fell again big time by 27,210 contracts from 411,001 contracts down to 383,791 with gold rising by $11.00 yesterday. I guess some of the paper players are giving up playing in the rigged Comex casino as they refuse to roll despite the low cost in transferring to the next big delivery month of August. We are also no doubt witnessing short covering from our bankers. The front non active delivery month of May is now off the board. The total number of notices filed for the month of May is represented by 3050 contracts and thus 305,000 ounces of gold officially stood for delivery in May . The next active contract month is June and here the OI fell by 48,076 contracts to 27,450 as those who did not give up, rolled into August. June is the second biggest delivery month in gold's calender and first day notice is tomorrow . Late tonight, we get to see first day notices filed and I will try and send that your way.

Volume

In silver

Quote:

The estimated volume today was good, coming in at 47,521 contracts.

The confirmed volume yesterday was poor at 31,242.

In gold

Quote:

The estimated volume today was good at 263,718 contracts.

The confirmed volume on Tuesday was extremely good at 327,472 contracts.

Inventory Numbers

In silver:

Quote:

Today, we had tiny activity inside the silver vaults.

We had 0 dealer deposits and 1 dealer withdrawal.

i) Out of the dealer Scotia: 40,030.30 oz

Total dealer withdrawal: 40,030.30 oz

We had 2 customer deposits:

i) Into brinks: 300,188.93 oz

ii) Into HSBC: 129,896.20 OZ

Total customer deposit: 430,085.13 oz

We had 1 customer withdrawal:

i) out of HSBC: 10,023.80 oz

Total customer withdrawal 10,023.80 oz

We had 0 adjustments today

Registered silver at: 42.807 million oz

Total of all silver: 165.290 million oz.

In gold:

Quote:

We had fair activity at the gold vaults.

The dealer had 0 deposits and 0 dealer withdrawals.

We had another strange entry yesterday and today. You will recall that we had a deposit of one gold brick with a weight of 1,000.02 oz deposited to the dealer Brinks. Today that brick disappeared as it was adjusted out by Brinks as if it never arrived. Seems to me like we have some strange accounting over at the CME.

We had 1 customer deposit today:

1) Into Scotia: 14,143.91 oz (this arrived from HSBC yesterday from their withdrawal)

Total customer deposit: 14,143.91 oz

We had 2 customer withdrawals today:

i) out of HSBC 294.47 oz

ii) out of Scotia: 1607.50

Total customer withdrawals: 1,901.97 oz

We had 2 adjustments:

i) the strange removal of 1000.02 oz from Brinks

ii) Out of HSBC we had 9210.069 oz removed from the dealer and enter the customer account of HSBC

The JPMorgan customer vault remains at 310,390.402 oz or 9.65 tonnes. Strangely the CME notified us on Friday that 1000 contracts or 100,000 oz was issued from the JPMorgan's customer vaults. This figure has not yet been subtracted from any JPMorgan account, customer or dealer.

Tonight the dealer inventory reduces again and stands tonight at a low of 1.632 million oz (50.76) tonnes of gold. The total of all gold slightly rises, resting tonight at 8.055 million oz or 250.54 tonnes.

DS: Well, if those 1000 contracts were to be delivered to anybody but JPM, they could simply pretend to deliver and take the probem off line with the customer. Then it looks ok to us, but the customer might be unhappy, or JPM may have just absconded with 100,000 oz of gold.

Delivery Notices

In silver:

Quote:

The CME reported that we had 58 notices filed for 290,000 oz.

In gold:

Quote:

Today we had 8 notices served upon our longs for 800 oz of gold. You will recall yesterday that we had 8 contracts still outstanding in the gold Comex and these were fulfilled today. Thus our month of May is complete.

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

Quote:

We have a total of 3,416 notices filed this month for 17,080,000 oz which should represent the final amount standing. You will recall that we had 68 notices left to be served upon last night and only 58 were served, leaving 10 outstanding. They may hit again late tonight or those 10 will either cash settled, sold out, or rolled to June/July.

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

3416 contracts x 5000 oz per contract (served) = 17,080,000 oz

The total standing for silver is still superb for May.

The total amount standing for May in silver represents 50.83% of ANNUAL silver production from the USA (the USA produces around 33.6 million oz per year.)

In gold:

Quote:

Thus we have the following gold ounces standing for metal in May:

3050 contracts x 100 oz per contract or 305,000 oz standing or 9.486 tonnes of gold.

This is extremely high for a non active month.

We now have the official USA production of gold last year and it registered 230 tonnes. Thus approximately 19.16 tonnes of gold is produced by all mines in the USA. Thus the amount standing for gold this month represents 49.5% of that total production.

Select Commodity Prices:

The Bloomberg Baltic Dry Index (BDI) was 818.0 down 0.49%. WTI June crude was 93.60 up 0.47. Brent closed at 102.10 down 0.13. The spread between Brent and WTI was 8.50, down 0.60. The 30 year US Treasury bond was up 0.0150 at 3.2870. The dollar was down 0.62 at 83.04. The PPT/Dow was 15,324.53 up 21.73, ABOVE the very key round number of 15,000! It was down almost exactly as much today as it was up yesterday. Facebook was 24.55 up 1.23 (5.27%). Silver closed up 0.32 at $22.88. July wheat was down 4.00 at 698.60. July corn was down 10.60 at 654.20. June lean hogs were 94.325 up 0.600. August feeder cattle were 144.175 down 1.450. July copper was 3.3155 up 0.0185. June natural gas not updated. July coal is 61.13 up 0.43.

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

https://harveyorgan.blogspot.com

Goooood day!

•••••••••••••••••

Thu, May 30, 2013 - 10:41pm Mr. Fix
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RE: China

Mr. Fix, you asked what evidence I have that China is a player in the NWO. First, we have Nixon, Kissinger, and Zbigniew Brzezinski, who were all big time Illuminati people opening up China when it was nothing but a third world country. They have funded it with trillions of dollars and purposely shipped tens of thousands of our factories and tens of millions of our jobs to it. Since the elites control the global economy, do you think any of this would have happened if China was not a player? Further, Lindsey Williams says the elites told him, "China is the strong one". China is strong because the elites willed it to be so. They would not purposely build an enemy unless they were in control. It is the Hegelian dialectic in operation again as they set up matching opponents for WWIII, but China is definitely a player, just like the Third Reich and the West were run by the same oligarchy in WWII, so are China and the West in WWIII. One thing I don't have any information on is how the elites subjugate China. That should be interesting. Russia might be the big winner in this whole take down in the East, because at the end of the age it is Gog (Russia) and Magog, not China and Magog.

DayStar

Thu, May 30, 2013 - 11:40pm
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Your premise that the New World order elites control China :

Very interesting, I know that Kissinger opened the door to China, I think it was you that told me how he had been there recently. How they are subjugating China is a relevant question, and what exactly they plan to do about it if China double crosses them, would also be nice to know, because there is one interesting part of this equation, which I doubt the elite have taken into consideration.

Even though Obama gives China everything they want, and he has for the most part “sold out” America,

he is widely hated in China. Why? Because he has no honor, he is widely recognized in China as guilty of treason. I have read that most of China knows that Obama sold out his own nation.

Honor seems to be held in much higher regard in China than it is here in America.

The elite have no honor, do not value it, and probably wouldn't recognize it if they were confronted by it.

That's why I propose that they may not have considered a backup plan.

We have always known that China plays dirty, I'm sure they would have no problem lying to the likes of Kissinger if it would advance their plans for global domination, and if you think about it, they'd be nuts to turn down an opportunity like “playing along” for a little while. So far, it seems to have worked out well for them.

Therefore, if the leaders of China gave their sovereignty away to a new world order, it would probably be punishable by death.

I smell a double cross, and it may be playing out in Washington DC right now, all of this scandal, could very well be the result of China having “cold feet”, and not exactly wanting to follow through on this “new world order thing”.

Just thinking out loud, excellent post tonight by the way, always a good read,

thank you DayStar.

"When the student is ready, the teacher will appear."
Fri, May 31, 2013 - 9:29pm
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Why Is The Smart Money Suddenly Getting Out Of Stocks And Real E

FYI, Mr. Fix. If wonderful times are ahead for U.S. financial markets, then why is so much of the smart money heading for the exits? Does it make sense for insiders to be getting out of stocks and real estate if prices are just going to continue to go up? The Dow is up about 17 percent so far this year, and it just keeps setting new record high after new record high. U.S. home prices have risen about 11 percent from a year ago, and some analysts are projecting that we are on the verge of a brand new housing boom. Why would the smart money want to leave the party when it is just getting started? Well, of course the truth is that the "smart money" is regarded as being smart because they usually make better decisions than other people do. And right now the smart money is screaming that it is time to get out of the markets. For example, the SentimenTrader Smart/Dumb Money Index is now the lowest that it has been in more than two years. The smart money is busy selling even as the dumb money is busy buying. So precisely what does the smart money expect to happen? Are they anticipating a market "correction" or something bigger than that? Those are very good questions. Unfortunately, the smart money rarely divulges their secrets, so we can only watch what they do. And right now a lot of insiders are making some very interesting moves. For example, George Soros has been dumping almost all of his financial stocks. The following is from a recent article by Becket Adams... Everyone’s favorite billionaire investor is back in the spotlight, and this time he has a few people wondering what he’s up to. George Soros has dumped his position with several major banks including JPMorgan Chase, Capitol One, SunTrust, and Morgan Stanley. He has reduced his exposure to Citigroup and decreased his stake in AIG by two-thirds. In fact, Soros’ financial stock holdings are down by roughly 80 percent, a massive drop from his position just three months ago, according to SNL Financial. So exactly what is going on? Why is Soros doing this? Well, there is certainly a lot to criticize when it comes to Soros, but you can't really blame him if he is just taking his profits and running. Financial stocks have been on a tremendous run and that run is going to end at some point. Smart investors lock in their profits while they still can. And without a doubt, stocks have become completely divorced from economic reality in recent months. For example, there is usually a very close relationship between corporate earnings and stock prices. But as CNBC recently reported, that relationship has totally broken down lately... That trend disrupted a formerly symbiotic relationship between earnings and stock prices and is indicating that the bluechip average is in for a substantial pullback, according to Tom Kee, who runs the StockTradersDaily investor web site. "They've been moving in tandem since 2009, until recently. Earnings per share for the Dow Jones industrial average have flatlined and the price has taken off," Kee said. "There is something happening here that defines a bubble." At some point there will be a correction. If the relationship between earnings and stock prices was where it should be, the Dow would be around 13,500 right now. That would be a fall of nearly 2,000 points from where it is at the moment. So what does all of this mean? Is there a reason why the smart money is suddenly getting out of stocks and real estate? It could just be that the insiders are simply responding to market dynamics and that many of them are just seeking to lock in their profits. Or it could be something much more than that. https://theeconomiccollapseblog.com/archives/why-is-the-smart-money-suddenly-getting-out-of-stocks-and-real-estate DayStar

Sat, Jun 1, 2013 - 8:57am
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RE: China

Mr. Fix, if you look at history, it is obvious the elites sponsored and financed Hitler's rise to power and then supported him during the war. The leaders in the West even inexplicably stood back and let Russia take all of Eastern Europe and East Germany. In retrospect they did this to set up Russia as a superpower and position the geopolitics in preparation for the final takeover coming out of WWIII.

In order to have WWIII, TPTB need a protagonist and an antagonist. The US was too powerful after WWII, and there needed to be a powerful antagonist, so they created the Sino-Soviet bloc. That bloc formed the other side of the Hegelian dialectic by which they could construct WWIII which thins the herd and creates the chaos which will deliver the world into the overt control of the elites and lets them bring in the doctrine of Lucifer. However, the elites do not wish to highlight the true center of power lest the enraged people they have impoverished turn on them and root them out. Hence, attention is kept laser focused on the sacrificial (literally) lambs positioning (Iran is the trigger) for WWIII and China is vigorously promoted as an emerging threat, just like Hitler was but who ultimately will be no more of a threat to the elites than Hitler was, since he too was ultimately seen to be a player. The elites are even rumored to have rescued him and to have spirited him away at the end of the war leaving only a body-double dead in the bunker. IMO, the Chinese antagonists are just players carrying out their part of the plan. They all serve the same master and will assume their position in the scheme of things as determined by their master in his grand scheme of overt world domination by the prince of darkness.

If you look at the episodes of horrendous evil in the history of the earth, it has always been through the supernatural injection of evil into the scheme of things. Men are sheep and docile by nature. To get the evil required to carry out God's plan to show the futility of evil, it is necessary to inject an antagonist and stir things up by outside forces. The supernatural Devil lied to Eve to get her and Adam to sin and plunge the whole creation into the vanity of sin and death. The first seven generations of men after Adam were righteous, but during the seventh generation evil was once again injected by the supernatural angels that sinned. They left heaven come to earth and to cohabit with women and to create the chaos that led to the great evils before the Flood and even afterwards in Nimrod's Satanic one-world government at the Tower of Babel that led to the idolatry that is persistent among the nations and the elites to this very day.

For a thousand years from AD 345-1345 God caused evil to be restrained by casting the Devil into the prison of the bottomless pit such that he could not use his supernatural powers to deceive men, but God released him at the end of the millennium to carry out God's will for the 7th world empire (Rev 20:3, 7). Since then the Devil is having his season and is using his power to corrupt the earth. What we are seeing in China is by the Devil's design, and they will conform to his plan. During these last years of the age, the Devil's supernatural powers will become more and more evident (e.g. https://tinyurl.com/n4p3v64) and will eventually be so convincing that they will deceive most men into believing he is God. Nothing that China has can compare to what the Devil can do and will eventually demonstrate and will use to give the kingdom of men to whomever he chooses, and it won't be China.

DayStar

Sat, Jun 1, 2013 - 9:31pm
DayStar
Offline
Joined: Jun 14, 2011
2586
14106

~~Harvey 01 Jun 2013

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

The FDIC seized "Banks of Wisconsin" d/b/a Bank of Kenosha in Kenosha, WI this weekend.

The Commitment of Traders Report

  • Gold: From a large speculator view, it seems that these guys are being set up to take a nasty hit. From the commercial port of view, the boys went net long again to the tune of 24,901. The gold scenario has not looked this bullish in decades.
  • Silver: From a speculator point of view, the specs went net short again which is bullish. The speculators are close to going net short. From a commercial point of view, the commercials went net long again by 3592 contracts.

News and Commentary

Harvey: It seems that 85% of all Friday's we witness a gold/silver raid. Friday is such a good day for the bankers to whack due all the physical players leave London early for their weekend retreat. They did not disappoint us again today with their stupid raid. There is no question that all of the weak speculators in gold have now departed. Only the strong remain. Friday the total Comex gold inventory rose a bit and now stands at 8.054 million oz (250.5 tonnes). The GLD reported no change in inventory in gold. The SLV inventory of silver also remained firm with no losses. It is possible that the physical supplies inside the GLD have evaporated. DS: It should be noted that Harvey calls the bankers "stupid", but these "stupid" bankers have managed to go net long in their contract positions at the same time they were driving the price of gold and silver down below their cost of production and stimulating a world wide run on physical gold and silver.

Harvey: The number of ounces which stands on first day notice is 1,051,300 or 32.69 tonnes.The number of silver ounces, standing for delivery for first day notice is represented by 155 contracts or 775,000. DS: JPM "delivered" 1000 oz of gold this week that just vanished. Such actions make you wonder what is real and what is smoke and mirrors.

GoldCore: Weakness in gold and silver is leading to robust demand internationally as store of value buyers accumulate gold and silver on this dip. This is particularly the case in Asia where premiums remain robust and supply demand imbalances remain. The persistent strong demand of this week began on the price falls in April. This demand is clearly seen in the London gold and silver trading data released by the London Bullion Market Association (LBMA) yesterday. London gold trading jumped to a 20 month high in April and silver volumes surged 25% after the price falls led to an increase in physical buying, the LBMA said in a report.

Brien Lundin (via King World News): The initial reports that a 124-tonne initial order, and perhaps as much as 400 tonnes, were sold on April 15th in an obvious attempt to take the gold market down. Gene Arensberg goes through the numbers in detail, and the bottom line is this: "... In order for the initial 124-tonne sale to have occurred 'legally' it would have had to have been 14 traders, all with zero orders open, all acting simultaneously, all acting independently, in their own self-interest, without colluding with each other to 'sell for effect' or conspiring to foment a price smash. In actuality, the chances that there were 14 traders who held zero open orders all acting independently, all throwing their full allowable 3,000 contracts into the gold market within a few minutes of each other are infinitesimally small. Much more likely is that the initial sale that triggered the sell-stop putsch in gold was done by a single trader, acting so far outside the position limit regime as to be brazen about it." The April manipulation may have been motivated by profit rather than politics, or perhaps both. But manipulation it was.

Stephen Leeb (via King World News): The West is getting more and more desperate. I hate to say it, but I think we are fighting a losing battle. Gold is going to end up in the East, in China, Vietnam, and Singapore, and gold is going to be somewhere between $5,000 to $10,000. And the press has done such a good job in downplaying gold and talking people out of it. When you see things like this, it’s desperation. If there is anything that convinces me that gold and silver are going to go so much higher, it’s the kind of desperation you see on the part of the West to keep these metals down. To keep people from actually realizing that gold is actually a currency. From the BIS, to Warren Buffett, to bankers everywhere, they want the dollar to stay the reserve currency. It won’t. It can’t. Not in an economy that is decaying at the rate we are decaying. DS: Desperation implies that a situation was unexpected or actors are near the limits of their ability. I do not believe either one of those is true regarding the elites. I believe they expected what is happening and they are prepared to handle it.

Rajesh Roy: It's very difficult to ban imports as gold is an emotional issue in India. Any such move will also lead to a rise in the smuggling of gold," the official said. Gifting gold jewelry during weddings is a tradition in India. Buying usually increases during Hindu festivals such as Diwali and Akshaya Tritiya. This year, Akshaya Tritiya, a major gold-buying festival, was on May 13. Imports of the precious metal have been a major contributor to India's wide trade and current-account deficits. Only crude oil accounts for a larger share of India's imports than gold.

Alasdair Macleod: Between current SCO (Shanghai Cooperation Organisation) and future members (India, Iran, Afghanistan, Mongolia, Belarus and Sri Lanka), with their citizens numbering over 3 billion people, they have together cornered the global market for physical supply, without even taking account of demand from the rest of South East Asia’s gold-hungry population. The result is that gold markets are now failing to clear. The outcome is a choice: the West will either have to stop intervening and allow gold to find a level where physical and derivative markets interact properly with each other, or capital markets in the West will face a growing crisis likely to spill over into other markets. While these outcomes were always going to be a choice to be made at some time in the future, the disconnection between physical gold and derivatives has become so great that it is now an immediate concern. Russia and China have so far been careful not to disrupt capital markets because it has not been in their interests to do so; however, the current hiatus in gold markets is almost certain to modify their view. Fundamental to all this is their attitude to Western currencies: the yen is now collapsing, the euro area is in deep trouble and the US economy is at very best stagnating. Until now, payment for Russian energy and Chinese goods in foreign currencies has been welcomed, because it has allowed the Russian and Chinese elites and middle classes to accumulate wealth. This balance of interests can only be maintained for so long as Russian and Chinese governments and their citizens can hedge foreign currency risks through an offsetting accumulation of foreign-owned gold. This is no longer the case, because to all intents and purposes western capital markets are cleaned out of physical supplies, and the ability of the Western central banks to supress gold prices appears to be ending. And with the West’s financial system no longer able to deliver their most prized commodity, hitherto passive attitudes in Asia to Western currencies are likely to be reassessed.

Zero Hedge: Since China is now actively telegraphing its economy is rapidly contracting, if only to show it is in control of the pace of contraction, this is virtually assured: the question is just how bad is it. All of this adds up to US traders walking in once more to once again see that very odd shade of green, and a color they have virtually forgotten - red. But fear not: with no good market-driven news to report, at least we have yet another confidence driven indicator due out later, the May final print of the UMich confidence. Cause when all else fails, the broke, insolvent, homeless US consumer can at least be more confident than ever. :-)

Ambrose Evans-Pritchard (Telegraph UK): Bond yields have spiked sharply in Turkey, South Africa, Mexico and Hungary, rippling through down corporate spreads. Yields on 10-year Polish bonds have jumped 60 basis points to 3.60pc in May as even the strongest are drawn into the turmoil. “This is the end of the bull market,” said Benoit Anne from Societe Generale. “I am now throwing in the towel. We are out of virtually all our emerging market bonds.” Stephen Jen from SLJ Macro Partners said South Africa is the “canary in the coal mine”, the first to break after a global resource boom and an emerging market investment bubble.

Zero Hedge: There is much consternation about what triggered Friday's rapid escalation of selling pressure in US stocks. As the evening wends on and traders sip their Absinthe [DS: banned brain rot alcohol], it appears an embargoed record of the Fed's Advisory Panel minutes was at least a major concern as it raised the very real specter that those in charge are concerned at the monster they have created: "There is also concern about the possibility of a breakout of inflation, although current inflation risk is not considered unmanageable, and of ununsustainable bubble in equity and fixed-income markets given current prices." "Unsustainable bubble"? And this not from some fringe blog but... bankers?

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

Quote:

Gold closed up $18.40 to $1392.60 (Comex closing time).

Silver fell by 44 cents to $22.23 (Comex closing time)

In the access market at 5:00 pm, gold and silver finished trading at the following prices :

Gold: $1388.30

Silver: $22.27

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

https://harveyorgan.blogspot.com/2013/06/european-unemployment-rise-againdealer.html

Total, May (Silver), Jun (Gold), Jul (Silver) Open Interest

In silver

Quote:

The total silver Comex OI completely plays to a different drummer than gold. Its OI rose by 26 contracts to 145,999, with silver's rise in price of 27 cents Thursday.

The CME reported to us late Thursday night that we had only 20 notices served upon our new outstanding longs for June for 100,000 oz. The OI for the non active front month of June now stands at 155 contracts and thus the initial reading for what will stand equates to 750,000. This number will surely rise.

The next big delivery month for silver is July and here the OI fell by only 133 contracts, from 75,004 down to 74,871.

In gold

Quote:

The total gold Comex open interest fell rose by 2110 contracts from 383,791 up to 385,901 with gold rising by $21.00 yesterday.

Friday is first day notice for the gold and silver contract month of June. Late Thursday night, I notified you that we had 4,571 contracts served upon our longs for 457,100 oz (14.21 tonnes). At 2:00 o'clock Friday afternoon we received the OI standing for June and it was a pretty decent amount standing equating to 10,513 contracts or 1,051,300 oz (32.7 tonnes).

The next delivery month is the non active July contract and here the OI rose by 2 contracts.

The next active delivery month for gold is August and here the OI rose by 16,659 contracts from 205,492 up to 221,946. This figure equates almost exactly to the loss from the June contract month of 16,937. Thus of the 16,937 loss in June, 16,659 rolled into August.

DS: Over the three days before first day notice, 61,726 contracts departed from the reported OI of which 16,937 departed from the OI for the front month of June. Part of this may have been cartel players closing out spreads. Harvey is noting how low the total OI is as a result of this OI leaving. IMO, a significant number of this OI that didn't roll into August will show up in unreported OI showing up for delivery during the month of June. If they report the truth, expect the OI to rise over the month from the initially reported value of 10,513.

Volume

In silver

Quote:

The estimated volume today was good, coming in at 44,991 contracts.

The confirmed volume on Thursday was great at 55,872.

In gold

Quote:

The estimated volume today was good at 263,718 contracts.

The confirmed volume on Tuesday was extremely good at 327,472 contracts.

Inventory Numbers

In silver:

Quote:

Today, we had tiny activity inside the silver vaults.

We had 0 dealer deposits and 2 dealer withdrawals.

i) Out of the dealer Scotia: 10,187.50 oz

ii) Out of the dealer CNT: 68,593.20 oz

Total dealer withdrawal: 78,740.70 oz

We had 1 customer deposit:

i) Into Brinks: 600,025.68 oz

Total customer deposit; 600,025.68 oz

We had 3 customer withdrawals:

i) out of Brinks: 9838.16 oz

ii) Out of CNT: 28,201.57 oz

iii) out of JPM: 24,228.50

Total customer withdrawal: 62,268.232 oz

We had 0 adjustments today.

Registered silver at: 42.728 million oz

Total of all silver: 165.749 million oz.

In gold:

Quote:

We had lousy activity at the gold vaults and mighty strange for a first day notice

The dealer had 0 deposits and 0 dealer withdrawals.

We had 0 customer deposits today:

Total customer deposit: nil oz

We had 2 tiny customer withdrawals today:

i) out of Brinks 98.05 oz

ii) out of Scotia: 198.552 oz

Total customer withdrawals: 296.602 oz

We had 2 major adjustments:

i) Out of HSBC we had 24,372.278 oz leave the dealer and enter the customer at HSBC.

It is the second adjustment that concerns me:

ii) Out of JPMorgan we had another removal of 36,454.364 oz from the dealer at JPM and this entered the customer. There was no gold removed from the customer to pay for the 100,000 oz last Friday night where the CME indicated that the ISSUER of that contract was JPM and the stopper was being supplied through JPM's customer account. I am sorry, but I have not seen the consummation of this transaction.

The JPMorgan customer vault rises at 346,844 oz or 10.78 tonnes. Equally disturbing is that JPMorgan's dealer account falls to 470,322 or dangerously low 14.62 tonnes. JPMorgan has not had an addition to gold from either their dealer account or their customer account.

Tonight the dealer inventory reduces again and stands tonight at a low of 1.571 million oz (48.86) tonnes of gold. The total of all gold slightly contracts, resting tonight at 8.054 million oz or 250.5 tonnes.

Delivery Notices

In silver:

Quote:

The CME reported that we had 20 notices filed for 100,000 oz on first day notice.

In gold:

Quote:

Today we had 4571 notices served upon our longs on first day notice for 457,100 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

Quote:

In order to calculate what we believe will stand in the month of June, I take the Oi standing for June (155) and subtract out today's notices (20) which leaves us with 135 notices or 675,000

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

20 contracts x 5000 oz per contract (served) = 100,000 oz + 135 contracts x 5000 oz = 675,000 oz left to be served upon = 775,000 oz

This number will surely rise in June.

In gold:

Quote:

In order to calculate what I believe will stand for delivery in June, I take the OI standing for June (10,513) and subtract out today's notices (4571) which leaves us with 5942 contracts or 594,200 oz left to be served upon our longs.

Thus we have the following gold ounces standing for metal in June:

4571 contracts x 100 oz per contract or 457,100 oz served upon + 5942 contracts or 594200 oz (left to be served upon) = 1,051,300 oz or 32.69 tonnes of gold.

This is extremely good showing for gold..

We now have the official USA production of gold last year and it registered 230 tonnes. Thus approximately 19.16 tonnes of gold is produced by all mines in the USA per month. Thus the amount of OI standing for gold this month (32.7 tonnes) represents 167% of that total monthly production.

Select Commodity Prices:

The Bloomberg Baltic Dry Index (BDI) was 809.0 down 0.25%. WTI June crude was 91.97 down 1.63. Brent closed at 100.39 down 1.71. The spread between Brent and WTI was 8.42, down 0.08. The 30 year US Treasury bond was up 0.0210 at 3.3080. The dollar was up 0.26 at 83.30. The PPT/Dow was 15,115.57 down 208.96, ABOVE the very key round number of 15,000! Facebook was 24.55 up 1.23 (5.27%). Silver closed down 0.51 at $22.27. July wheat was up 6.60 at 705.40. July corn was up 4.40 at 567.20. June lean hogs were 95.625 up 0.300. August feeder cattle were 144.325 up 0.150. July copper was 3.2925 down 0.0230. June natural gas was down 0.039 at 3.984. July coal is 61.80 up 0.67.

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

https://harveyorgan.blogspot.com

Goooood day!

•••••••••••••••••

Mon, Jun 3, 2013 - 9:52pm
DayStar
Offline
Joined: Jun 14, 2011
2586
14106

~~Harvey 03 Jun 2013

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

News and Commentary

Eric Sprott (Sprott Asset Management): It's my belief gold was being drained out of the GLD in order to supply the demand in Asia. Therefore, it was not a sign of weakness. It was a sign that banks had no gold.

Eric Sprott: I think the plan was, let's knock the [] out of gold and let's get people to cave on owning it. However, the exact opposite happened. There is not a data point on gold where we don't see changes in demand by 100%, or even many hundreds of percent.

Egon von Greyerz: Look at what's happening in the physical market. The LBMA reported record gold transactions in April, of plus 25%. This is the highest level since it peaked in September 2011; so physical trading is at the same level where it was when gold was at its peak at $1,900. The level of physical gold trading is incredible. And it proves that all of the selling is in the paper market. Plus, these were April figures. We have seen, and also refiners have seen, much higher activity in May. So demand is even greater right now.

Bill Holder (Miles Franklin): Just over the last week, the BIS has issued 3 separate statements of warning. (They were in hindsight the only "official" agency to warn ahead of time back in 2007 of the coming crisis). They recently made a call for cracking down on the collateral chain in the shadow banking system and then over the weekend they said that "stimulus must stop" because it is not and has not worked. Imagine that? The central bank of central banks has said that the "savior" for all, ..."QE", printing, monetizing or whatever else you'd like to call it...doesn't work. They even went so far as to say that "if a medicine doesn't work it doesn't necessarily mean that the dose wasn't strong enough". Maybe the wrong medicine? But wait! There's more! The BIS came out with one more statement over the weekend. They say that they have a "simple" plan to "recapitalize" banks that fail. Not just "any" banks mind you, no, they are talking about U.S. Banks! This simple plan is really "simple"...no more bailouts, no more taxpayer monies (maybe because it's not doable and the Treasury has already broken itself over the last 5 years?). This simple plan proposes to wipe out shareholders, preferred shareholders, bond holders and other creditors...AND depositors. Yes, the same as Europe is working on and of course the same as the poor old Cypriots have already experienced. DS: The BIS is the central bankers' central bank. They are well up the food chain in the elitist hierarchy. The site occupied by their headquarters in Basil Switzerland is sovereign land, like an embassy of the elites. In accordance with their "ethic" to warn us about what they are going to do before they do it, they are telling us that hypothecation is killing the system, the stimulus is killing the system, and the solution is to wipe out the banks, their investors and their depositors. So, that is what is going to happen. We have been warned.

Harvey: The total Comex gold inventory rose a bit and now stands at 8.04 million oz (250.1 tonnes). It is possible that the physical supplies inside the GLD has evaporated. SLV reported inventories are unchanged.

Hightower Metals Update: While gold is showing some positive initial action, the market could have been undermined by ongoing talk of further Indian government moves to restrict or hinder gold imports. The Indian Finance Minister recently suggested that India could not "afford" high levels of gold imports and that has a number of players anticipating an announcement directly ahead. However, gold was helped higher overnight by supportive currency action and perhaps because of news of weaker than expected Chinese economic data and it is also possible that gold was lifted by the weakness in Asian equity markets. DS: Vietnam tried to restrict gold imports to support its currency. However, the more they restricted imports, the more gold smuggling they got, and it didn't help their currency at all. Now India is doing the same thing, and you can expect similar results. India has thousands of miles of coastlines and extremely mountainous borders with not friendly neighbors, so there is a high likelihood that gold will find a way to cross into India, whatever restrictions they try to place on it. There is too much margin between the price of gold in India and dollars versus rupee for smugglers not to take a chance on moving some gold.

Dorothy Kosich (Mineweb): Sales of the American Eagle silver bullion coins remain on track to set a new annual record this year. May sales, however, were down more than 15% from April. Meanwhile, May sales of American Eagle gold bullion coins fell nearly 67% from April, U.S. Mint figures showed as of Sunday. Meanwhile, May sales of the America the Beautiful five-ounce silver bullion coins totaled at 25,800 coins. The first of the 2013 coins did not launch until May 13th.

Gene Arensberg (Got Gold Report): Arensberg examines the latest commitment of traders data for U.S. gold futures and finds that the largest commercial traders are less short gold than they have been since 2005. Meanwhile hedge fund types -- "other reportables" in the jargon of the U.S. Commodity Futures Trading Commission -- have gone extremely short. Arensberg writes: "We are reminded of the similar 'other reportable' exodus which occurred in early 2011. ... Curiously, the previous 'other reportable' net long exodus occurred just prior to the largest and most important rally for gold since 1980."

Alasdair Macleod (GoldMoney): Macleod explains why gold is money, contrary to opinion in the political mainstream. The political mainstream's complacency about gold, Macleod writes, "is likely to be undermined by events. We already see the four major central banks committed to issuing their confidence-based currency in increasing quantities, to finance their governments and to prop up the banks. We have yet to see how they intend to stop doing so."

Tyler Durden: The premium that gold buyers in China pay to take immediate delivery of bullion has jumped four-fold in the last six weeks following the gold price 'crash'. As Bloomberg notes, even before the mid-April drop, China's gold imports jumped to a record in the first quarter as domestic demand (776 tons) outweighed domestic supply (403 tons). Images of consumers overwhelming jewelry shops were everywhere, but gold premium jumped from a long-run average of around $7 to over $32!

Jaco Schipper (Jaco Schipper Blog): Nationalized ABN Amro offers fool's gold. Dutch nationalized banking giant ABN Amro send its trading clients a letter explaining that they have changed the conditions for precious metals trading. In their letter[1], the bank explains that they will no longer deliver physical precious metals (gold, silver, platinum and palladium), that they administer prices slightly differently, and that they have found a new custodian. ABN Amro suggests that clients do not have to do anything, stating “we will administer and manage your precious metals holdings in the new manner”. Given these new conditions, this precious metals "investment" has become some sort of twisted commodity swap whereby investors swap their money to invest in any upside price potential of precious metals and whereby they take on all sorts of financial counterparty risks without hedging anything at all. Investors always face a price risk, but if one “buys” precious metals with ABN Amro, then one also faces a forced sell-off risk, a (discounted) cash-settlement risk, and last but not least, an outright default risk. And here’s the gist of it: nobody can be held liable if these risks materialize. In other words, investors bet their money on a horse that might or might not exist and for which they can know upfront, this horse will never cross the finish line. Imagine you invested in precious metals with ABN Amro, for example because you deemed them trustworthy and because you wanted to store your precious metals safely. And then ABN Amro tells you they have changed the conditions introducing the very risks you wanted to avoid and tells you, “You do not have to do anything.” If you ask me, ABN Amro has relegated its precious metals clients from “not so savvy” to mere “muppets”.

Tyler Durden: Massive economic problems are erupting all over the globe, but most people seem to believe that everything is going to be just fine. In fact, a whole bunch of recent polls and surveys show that the American people are starting to feel much better about how the U.S. economy is performing. Unfortunately, the false prosperity that we are currently enjoying is not going to last much longer. America is going to experience a massive amount of economic pain along with the rest of the world - it is just a matter of time. For the moment, there are a lot of people that are declaring that the problems of the past have been fixed and that we are heading for incredibly bright economic times ahead. Unfortunately, those people appear to be purposely ignoring the economic horror that is breaking out all over the globe. There are 18 signs that massive economic problems are erupting all over the planet. https://www.zerohedge.com/news/2013-06-03/18-signs-massive-economic-problems-are-erupting-everywhere

Hebba Investments: The largest gold mine in the world is the Grasberg mine that is operated by Freeport-McMoRan Copper & Gold (FCX) and located in Indonesia. This monster of a mine has averaged over 1 million ounces of annual gold production over the last three years and, according to FCX, holds the world's largest gold reserves. Over the last few months, Grasberg has hit a number of setbacks. Three weeks ago a tunnel collapsed while thirty-nine workers were undergoing safety training. This led to worker protests and a government closure of the whole facility that was only resumed at the Grasberg open-pit mine last week (other portions still remain shutdown). On Friday, a wall collapsed hospitalizing a worker and exacerbating an already accident weary workforce. The mining ministry ordered all mining shutdown at Grasberg for at least three months while the accidents are investigated and safety precautions are taken. Additionally, workers already on edge about contract negotiations are now increasingly unhappy with safety at the mines. Three months may already exhaust supplies of FCX ore, but if the strike leads to a longer closure and more worker demands, then production may be halted for much longer. DS: There appears to be a concerted effort to shut down the big mines. Today there is labor trouble in South Africa. There has been ongoing labor trouble between rival labor unions that has greatly retarded mine production. There was a landslide in the biggest copper mine in the US. These actions are seriously undermining the ability of the world to produce the metal. It is easy to see how someone could cause a landslide or a cave-in at a mine and how someone could stir up labor trouble. IMO, there are too many serious mine "accidents" for these things to be accidents.

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

Quote:

Gold closed up by $20.70 to $1413.70 (Comex closing time).

Silver rose by 49 cents to $22.72 (Comex closing time).

In the access market at 5:00 pm, gold and silver finished trading at the following prices:

Gold: 1412.00

Silver: $22.70

Froday, May 31st Gold and Silver Action (basis 1:30 PM EST)

https://harveyorgan.blogspot.com/2013/06/mine-interruptions-at-lonmin-and.html

Total, May (Silver), Jun (Gold), Jul (Silver) Open Interest

In silver

Quote:

The total silver Comex OI completely plays to a different drummer than gold. Its OI fell by only 683 contracts to 145,316, with silver's fall in price to the tune of 44 cents on Friday. The front non active June silver contract month shows an OI of 140 contracts for a loss of 15 contracts. We had 20 notices filed on Friday so in essence we gained 5 contracts or 25,000 additional silver ounces will stand for the June delivery month.

In gold

Quote:

The total gold Comex open interest fell by 10,685 contracts from 385,901 down to 375,206 with gold falling by $18.40 on Friday. The front active month of June saw it's OI fall by 5667 contracts from 10,513 down to 4946. We had 4571 contracts served upon our longs on day no 2 for the June delivery cycle. We thus lost 996 contracts or 99,600 oz from standing this month. The next delivery month is the non active July contract and here the OI fell by 3 contracts down to 527. The next active delivery month for gold is August and here the OI fell by 6,334 contracts from 221,946 all the way down to 215,612.

Volume

In silver

Quote:

The estimated volume today was good, coming in at 42,902 contracts.

The confirmed volume on Friday was excellent at 52,763.

In gold

Quote:

The estimated volume today was poor at 139,940 contracts.

The confirmed volume on Friday was good at 182,940 contracts.

It looks to me like all of the gold longs have been washed out!!

Inventory Numbers

In silver:

Quote:

Today, we had huge activity inside the silver vaults.

we had 0 dealer deposits and 1 dealer withdrawals.

i) Out of the dealer CNT: 622,560.93 oz

total dealer withdrawal: 622,560.93 oz

We had 2 customer deposits:

i) Into brinks: 155,073.87. oz

ii) Into CNT: 397,995.13 oz

total customer deposit; 553,069.000 oz

We had 4 customer withdrawals:

i) out of Brinks: 466,865.03 oz

ii) Out of Delaware: 435,552.03 oz

iii) out of JPM: 211,669.96

iv) out of Scotia: 50,835.86 oz

total customer withdrawal 1,164,912.871 oz

we had 2 adjustments today

i) out of JPMorgan: 120,647.162 oz was removed from the dealer and this landed into the customer account at JPMorgan

ii) Out of Scotia: 50,120.800 oz was removed from the customer and landed into the dealer account.

Registered silver at: 42.035 million oz

Total of all silver: 164.5 million oz.

In gold:

Quote:

We again had lousy activity at the gold vaults and mighty strange for the first two days of the June delivery cycle.

The dealer had 0 deposits and 1 dealer withdrawal.

i) Out of Brinks, 1 brick of exactly 100.000 oz

This is the first .000 in quite some time (after I complained to the CFTC)

We had 2 customer deposits today:

i) Into Brinks; 294.46 oz

ii) Into Scotia: 205.723 oz

Total customer deposit: 500.183 oz

We had 1 customer withdrawal today and the vault is our carefully watched vault JPMorgan.

Out of JPMorgan customer account: 12,963.649 oz

Total customer withdrawals: 12,963.649 oz

We had 0 adjustments.

If you will recall, we needed to see 100,000 oz of gold removed from JPMorgan's customer account. (1000 contracts served upon our longs in mid May) Strangely only 12,963.oz were removed from the customer account of JPM today.

The JPMorgan customer vault inventory falls to 333,878.117 oz or 10.38 tonnes.

You will also recall on Saturday night, I reported that JPMorgan had 470,322.102 oz in it's dealer account.

On Day 1 (first day notice) we had 4571 contracts served upon of which 4551 contracts were issued from the dealer (house account) of JPMorgan.

On Day 2 (today) we had 1415 notices filed of which zero came from HSBC and 192 contracts were issued by JPMorgan's dealer account and 43 notices were issued from their customer account of JPM.

The customer account prior to today stood at 346,844.766 oz and with the removal of the 12,9063.649 oz leaves us with 333,878.117 oz

We are still missing 91,337 oz which must come from JPMorgan's customer account. The initial delivery notice issued from JPMorgan occurred a week ago last Friday.

On the dealer side of JPMorgan: the total number of gold contracts issued from the JPMorgan vault equals 4551 contracts (day 1) + 192 contracts (day 2)

equals 4743 contracts or 474,300 oz

JPMorgan's dealer vault registers 470,322.102 oz of which zero gold ounces left.

Somehow we have a negative balance as

i) the gold has not left JPMorgan's dealer account yet

ii) it is still deficient by 3978 oz

JPMorgan has not had any deposits in gold in quite some time.

How will JPMorgan satisfy this shortfall??

HSBC 's dealer vault gold is also slim as it remains at: 260,323.275 oz (8.09 tonnes)

Tonight the dealer inventory remains tonight at a low of 1.571 million oz (48.86) tonnes of gold. The total of all gold slightly contracts, resting tonight at 8.042 million oz or 250.1 tonnes.

Delivery Notices

In silver:

Quote:

The CME reported that we had 2 notices filed for 10,000 oz on this second day notice.

In gold:

Quote:

Today we had 1415 notices served upon our longs on first day notice for 141,500 oz of gold.

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

In silver:

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

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

Quote:

In order to calculate what we believe will stand in the month of June, I take the Oi standing for June (140) and subtract out today's notices (2) which leaves us with 138 notices or 690,000

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

22 contracts x 5000 oz per contract (served) = 110,000 oz + 138 contracts x 5000 oz = 690,000 oz left to be served upon = 800,000 oz

We gained 25,000 additional silver ounces standing.

In gold:

Quote:

In order to calculate what I believe will stand for delivery in June, I take the OI standing for June (5986) and subtract out today's notices (1415) which leaves us with 3531 contracts or 353,100 oz left to be served upon our longs.

Thus we have the following gold ounces standing for metal in June:

5986 contracts x 100 oz per contract or 598,600 oz served upon + 3531 contracts or 353,100 oz (left to be served upon) = 951,700 oz or 29.60 tonnes of gold.

We lost 99,600 oz of gold standing for the June contract month.

We now have the official USA production of gold last year and it registered 230 tonnes. Thus approximately 19.16 tonnes of gold is produced by all mines in the USA per month. Thus the amount standing for gold this month represents 154.4% of that total production.

Select Commodity Prices:

The Bloomberg Baltic Dry Index (BDI) was 806.0 down 0.37%. WTI June crude was 93.17 up 1.20. Brent closed at 102.06 up 1.67. The spread between Brent and WTI was 8.89, up 0.47. The 30 year US Treasury bond was down 0.0320 at 3.2760. The dollar was down 0.62 at 82.68. The PPT/Dow was 15,254.03 up 138.46, ABOVE the very key round number of 15,000! Facebook was 24.55 up 1.23 (5.27%). Silver closed up 0.48 at $22.74. July wheat was up 3.20 at 708.60. July corn was down 6.20 at 655.60. June lean hogs were 95.825 up 0.200. September feeder cattle were 146.650 up 0.150. July copper was 3.3305 up 0.0380. June natural gas was up 0.007 at 3.991. July coal is 61.08 down 0.72.

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

Goooood day!

•••••••••••••••••

Mon, Jun 3, 2013 - 11:59pm
Mr. Fix
Offline
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Joined: Jun 8, 2012
10801
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Nice job DayStar,

Always a great place to catch up.

"When the student is ready, the teacher will appear."
Tue, Jun 4, 2013 - 10:59pm
DayStar
Offline
Joined: Jun 14, 2011
2586
14106

~~Harvey 04 Jun 2013

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

News and Commentary

Harvey: The Comex officials have put a disclaimer on their gold and silver inventories as to their accuracy. It certainly did not surprise me. Today, the bleeding of gold from the GLD resumes. They lost 2.7 tonnes of gold tonight. The total Comex gold inventory fell a bit and now stands at 8.0006 million oz (250.1 tonnes). There was no change in the SLV inventory tonight.

GoldCore: Monday’s economic data showed U.S. manufacturing activity had slowed to the lowest level in almost 4 years. The still fragile nature of the U.S. economy will support gold. Poor economic data is confusing the bulls who continue to under estimate risk. The monthly nonfarm payrolls figures out on Friday will give further guidance regarding whether the U.S. is tipping into recession. Deutsche Bank has recommended buying gold in Japanese yen and Australian dollars. The bank cites the significant increase in Japan’s balance sheet as likely to cause the yen to weaken further and says the Australian dollar is overvalued. While gold in yen is down just 3.6% in 2013, in the last 12 months the yen has fallen by 10.1% against gold showing gold’s importance as a hedge against currency devaluations. As long as the world's economy remains in tatters then safe havens will be few and far between. While gold’s safe haven credentials have taken a bit of a battering of late, they will again prove themselves over the long term. The banking crisis in Cyprus has shown that even bank deposits are not safe and globally there are plans for so called ‘bail ins’ or deposit confiscation for banks that become insolvent.

GoldCore: China’s output of 403 metric tons in 2012 made it the world’s largest producer for a sixth straight year, according to the China Gold Association. Domestic demand was 776 tons last year, which outpaced supply and spurred imports, according to the World Gold Council. The store of wealth demand is not just from Chinese ‘aunties.’ There remains an under estimation of the demand coming from wealthy Chinese and high net worth and ultra high net worth individuals (HNWs and UHNWs). This has not been commented upon or analysed but we have direct experience of wealthy Chinese people looking to store gold in Hong Kong and Switzerland, as have other storage providers. Given the significant cultural affinity for gold in China, there is likely to be sizeable demand from wealthy Chinese people looking to diversify and protect their new found wealth. To characterise Chinese demand for physical gold as solely from “aunties” is to simplify Chinese demand. Indeed, besides Chinese people buying gold, Chinese companies and of course the official sector and the People’s Bank of China are also likely accumulating gold. The significant broad based demand for gold in Asia, and particularly from India and China, continues to be ignored and under estimated by gold bears such as Nouriel Roubini.

Harvey: On the first business day of June the mint had already posted 583,500 silver eagles sold. Either they delay-reported some May sales to downplay the size of May's sales, or they were backed up again on production and just unloaded a big production on dealers. 584k represents about 17% of May's total reported sales. In June 2012, the mint sold 2.85 million silver eagles, in one day they've sold 20% of last June's total sales. DS: If they had production problems, there is no particular reason the production should be solved on the first day of a new month. If they were trying to hide soaring sales to create a perception of declining sales, it would make sense to hide it till the first. I wondered about the decline in the sale of coins from the Mint while demand continued strong elsewhere.

James Turk (via King World News): GoldMoney founder and GATA consultant James Turk tonight tells King World News of indications that the bottoms have passed for gold and silver and that the Federal Reserve's loss of control of the bond market may prompt the next banking crisis. DS: Lindsey Williams said the bottom was in two weeks ago. Lindsey williams does not portray the Federal Reserve as having lost control. He says that when interest rates start to rise, the end is upon us. Jim Sinclair is going around the world telling people to get out, get out, get out! Get out while you can. All paper is going to zero. Lindsey Williams has warned the same thing. All paper denominated in dollars will become worthless.

Eric Sprott: Imports from China keep breaking records (the WGC now forecasts total Chinese imports of 880 tonnes for 2013). This is reflected in the large premium customers in these markets pay over the “London Fix”, the price one should be able to get for physical gold. One way to measure the extent of the demand imbalance for physical gold in Asia is to look at what has been termed the “Shanghai Premium”, which is the difference between the quoted physical gold price on the Shanghai Gold Exchange and the London Fix gold price. Since the beginning of the year, the Shanghai premium has been consistently above zero and historically large, recently reaching more than $50 per oz. It is clear that demand for physical gold in Asia is strong and that the price of gold in these markets is well above the “Western” price. This creates arbitrage opportunities for market participants that have access to large and cheap quantities of physical gold in the West. The bullion banks happen to be the only ones able to redeem GLD shares for gold, and the GLD, with its 1,000 tonnes of inventory, acts like a large physical gold bank.

Eric Sprott: since 2005, there has been a strong negative correlation between GLD flows and the Shanghai Premium (-53%). This means that large outflows (redemptions) from the GLD are typically associated with high premiums in the Shanghai gold market. This association has been particularly marked since the beginning of the year, with historically large outflows corresponding to an all-time high in the Shanghai premium. To conclude, the evidence presented here suggests that, contrary to what has been stated in the financial press, the flows out of the SPDR Gold Trust may have been generated by the bullion banks to take advantage of an arbitrage opportunity in the physical market. This arbitrage opportunity occurred because of the intense demand for gold stemming from Asia and the inability of traditional suppliers to provide this gold (hence the large Shanghai premium). We believe that this activity further supports our hypothesis that there is a lack of availability of physical gold and an obvious dislocation between the physical and paper gold markets. To us, this is clearly a bullish signal for gold.

Matt Taibbi (RollingStone Magazine/Washington's Blog): In 1991, the CFTC started issuing exemption letters so those exempted could speculate on commodities. The first letter was written to J. Aron, a subsidiary of...Goldman Sachs. Pretty soon, every major bank in the U.S. was given an exemption. Congress didn’t know about the exemptions. Indeed, the House Agricultural Commission – which oversees the CFTC – didn’t even find out about the exemptions until 6 years later...in 1997. When a congressman on the Agricultural Commission asked the CFTC for a sample of one of the exemption letters, the CFTC official said he had to ask Goldman Sachs whether or not the CFTC could show a copy to Congress. In other words, the banks were already running D.C. by the 90s. Commodities speculation has exploded since the exemption letters were issues. For example, in 2003, there was only $29 billion in speculative activity in the commodities markets. By 2007-2008, there was over $300 billion in commodities speculation.

Harvey: Chinese appetite for gold continues. Just look at the month of March which saw a net inflow of 114 tonnes of gold. At this rate, China will import in excess of 1,000 tonnes of gold. With India also bringing in 1000 tonnes of gold we have almost 100% of annual production going to these two nations. China also produces around 402 tonnes of gold but that is kept as official reserves.

Dave From Denver (The Golden Truth): New Comex disclaimer: The information in this report is taken from sources believed to be reliable; however, the Commodity Exchange, Inc. disclaims all liability whatsoever with regard to its accuracy or completeness. This report is produced for information purposes only." - disclaimer now posted on the Comex gold and silver daily warehouse stock report as of Monday, June 3, 2013. I am willing to bet a very large amount of money that this disclaimer was put on the warehouse reports starting yesterday as a result of the large amount of gold bars that has been physically removed from Comex vaults, and specifically from JP Morgan's "eligible" account, since the beginning of the year. This means that it is highly likely that a significant portion of the remaining gold and silver sitting in Comex precious metals vaults - especially JPM's - has been been hypothecated in some form. For anyone who has witnessed what happened with MF Global and the illegal hypothecation of customer assets, a situation in which JP Morgan is/was inextricably tied, if you believe that Wall Street is willing to hypothecate the sacred customer accounts but would not hypothecate or lease out Comex gold, then you are either tragically naive or terminally ignorant.

Tyler Durden: Here come the trade wars: Europe imposes duties on China solar-panels. DS: Lindsey Williams said we would have currency wars, trade wars, rising interest rates, and then the dollar will crash. It looks like we are about to get to the dollar crash part.

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

Quote:

Gold closed up down by $14.60 to $1397.10 (Comex closing time).

Silver fell by 32 cents to $22.40 (Comex closing time).

In the access market at 5:00 pm, gold and silver finished trading at the following prices :

Gold: 1399.90

Silver: $22.54

Monday, June 3rd Gold and Silver Action (basis 1:30 PM EST)

https://harveyorgan.blogspot.com/2013/06/Comex-puts-disclaimer-on-gold-silver.html

Total, May (Silver), Jun (Gold), Jul (Silver) Open Interest

In silver

Quote:

The total silver Comex OI completely plays to a different drummer than gold. Its OI fell 321 contracts to 144,995, with silver's rise in price to the tune of 49 cents yesterday.

The front non active June silver contract month shows a loss in OI of of 38 contracts. We had 2 notices filed yesterday so in essence we lost 36 contracts or 180,000 additional silver ounces will not stand for the June delivery month.

In gold

Quote:

The total gold Comex open interest rose by 764 contracts from 375,970 up to 375,970 with gold rising by $20.70 yesterday.

The front active month of June saw it's OI fall by 1406 contracts from 4946 down to 3540 contracts. We had 1415 contracts served upon our longs on day no 2 of the June delivery cycle. We thus gained 9 contracts or 900 additional oz will stand this month. This is a huge change from previous months whereby the totals for the amount of gold standing would decrease in the first week and then resume northbound. We saw a change in the silver contract month last month which rose in amount standing after two days. It looks like gold will repeat after silver on this front.

The next delivery month is the non active July contract and here the OI rose by 72 contracts up to 599.

The next active delivery month for gold is August and here the OI rose by 328 contracts from 215,612 up to 215,940.

Volume

In silver

Quote:

The estimated volume today was fair, coming in at 33,202 contracts.

The confirmed volume yesterday was excellent at 51,592.

In gold

Quote:

The estimated volume today was poor at 111,323 contracts.

The confirmed volume yesterday was good at 152,608 contracts.

It looks to me like all of the paper gold longs have been washed out!!

Inventory Numbers

In silver:

Quote:

Today, we had good activity inside the silver vaults.

We had 0 dealer deposits and 0 dealer withdrawals.

We had 3 customer deposits:

i) Into brinks: 300,417.56. oz

ii) Into CNT: 49,546.315 oz

iii) Into Delaware: 24,228.50 oz

Total customer deposit; 374,192.375 oz

We had 3 customer withdrawals:

i) out of HSBC: 324,371.24 oz

ii) out of JPM: 10,431.30 oz

iii) out of Scotia: 60,082.87 oz

Total customer withdrawal 394,885.41 oz

We had 0 adjustments today.

Registered silver at: 42.035 million oz

Total of all silver: 164.493 million oz.

In gold:

Quote:

We again had good activity at the gold vaults

The dealer had 0 deposits and 0 dealer withdrawal.

We had 1 customer deposit today:

i) Into Scotia: 12,963.637 oz and that is all that entered any vault today from outside.

Total customer deposit: 12,963.637 oz

This 12,963.649 oz is the exact oz withdrawn from JPMorgan's customer account yesterday and thus that completes only 12.93% of that 100,000 delivery notice filed a week ago last Friday.

We had 3 customer withdrawals today:

1. Out of JPMorgan 15,416.930 oz

2. Out of HSBC: 33,582.844 oz

3. Out of Scotia : 102.973 oz

Total withdrawal: 99,102.747 oz

If you will recall, we needed to see 100,000 oz of gold removed from JPMorgan's customer account. (1000 contracts served upon our longs in mid May).

Today, we also had 15,416.93 oz removed from the JPM's customer account. No doubt that this gold was part of the 1000 contracts issued by JPMorgan customer account and today this was removed.

So we can now add 15,416.93 oz + 12,963.649 = 28,389.579 oz

Thus 28.389% of the 100,000 oz issuance has in all probability been finalized.

We also received notice that we have one adjustment and that too involved JPMorgan:

Out of JPMorgan 49,001.86 oz was removed from the dealer and this entered the customer account. No doubt that this is part of this month's deliveries.

The JPMorgan customer vault inventory thus rises to 367,463.047 oz or rests tonight at 11.42 tonnes.

You will also recall on Saturday and Monday night, I reported that JPMorgan had 470,322.102 oz in it's dealer account.

On Day 1 (first day notice) we had 4571 contracts served upon of which 4551 contracts were issued from the dealer (house account) of JPMorgan.

On Day 2 (yesterday) we had 1415 notices filed of which zero came from HSBC and 192 contracts were issued by JPMorgan's dealer account and 43 notices were issued from their customer account of JPM.

On Day 3: (today) JPM issued 43 contracts from its customer account and 192 contracts from its house

(dealer account)

The customer account prior to today stood at 346,844.766 oz and with the removal of the 28,389.579 oz plus the adjustment leaves us with 367,463.047 oz.

We are still missing 71,611 oz which must come from JPMorgan's customer account. The initial delivery notice issued from JPMorgan occurred a week ago last Friday.

On the dealer side of JPMorgan: the total number of gold contracts issued from the JPMorgan vault equals 4551 contracts (day 1) + 192 contracts (day 2) + 192 (day 3) equals 4935 contracts or 493,500 oz.

JPMorgan's dealer vault registers tonight 421,323.24 oz.

Somehow we have a huge negative balance as

i) the gold has not left JPMorgan's dealer account yet and

ii) it is deficient by 72,177. oz

JPMorgan has not had any deposits in gold in quite some time.

How will JPMorgan satisfy this shortfall??

HSBC 's dealer vault gold is also slim as it remains at: 260,323.275 oz (8.09 tonnes)

Tonight the dealer inventory remains tonight at a low of 1.522 million oz (47.34) tonnes of gold. The total of all gold slightly contracts, resting tonight at 8.006 million oz or 248.02 tonnes.

Delivery Notices

In silver:

Quote:

The CME reported that we had 0 notices filed for nil oz on this third day of delivery notices.

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

Quote:

In order to calculate what we believe will stand in the month of June, I take the Oi standing for June (102) and subtract out today's notices (0) which leaves us with 102 notices or 510,000

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

22 contracts x 5000 oz per contract (served) = 110,000 oz + 102 contracts x 5000 oz or 5100,000 oz left to be served upon = 620,000 oz

We lost 180,000 oz silver ounces standing. I am sure we will get that back.

In gold:

Quote:

In order to calculate what I believe will stand for delivery in June, I take the OI standing for June (3540) and subtract out today's notices (63) which leaves us with 3477 contracts or 347,700 oz left to be served upon our longs.

Thus we have the following gold ounces standing for metal in June:

6049 contracts x 100 oz per contract or 604,900 oz served upon + 3477 contracts or 347,700 oz (left to be

served upon) = 952,600 oz or 29.62 tonnes of gold.

We gained 9 contracts or 900 oz of additional gold standing for the June contract month.

We now have the official USA production of gold last year and it registered 230 tonnes. Thus approximately 19.16 tonnes of gold is produced by all mines in the USA per month. Thus the amount standing for gold this month represents 154.46% of that total production.

Select Commodity Prices:

The Bloomberg Baltic Dry Index (BDI) was 805.0 down 0.12%. WTI June crude was 93.78 up 0.61. Brent closed at 103.41 up 1.35. The spread between Brent and WTI was 9.63, up 0.74. The 30 year US Treasury bond was up 0.0210 at 3.2970. The dollar was up 0.11 at 82.79. The PPT/Dow was 15,177.54 down 76.49, ABOVE the very key round number of 15,000! Facebook was 23.52 down 0.33 (1.38%). Silver closed down 0.20 at $22.55. July wheat was up 0.20 at 709.00. July corn was up 4.60 at 660.40. June lean hogs were 96.525 up 0.700. September feeder cattle were 147.525 down 0.025. July copper was 3.3690 up 0.0385. June natural gas was up 0.007 at 3.998. July coal is 61.23 up 0.15.

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

https://harveyorgan.blogspot.com

Goooood day!

•••••••••••••••••

Wed, Jun 5, 2013 - 10:30pm
DayStar
Offline
Joined: Jun 14, 2011
2586
14106

~~Harvey 5 Jun 2013

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

News and Commentary

Harvey: The Comex registered or dealer gold lowers to 1.513 million oz or 47.06 tonnes. This is getting dangerously low. The total of all gold at the Comex fell slightly and now it is just below the 8 million oz at 7.985 million oz or 248.36 tonnes of gold. The GLD reported another loss in gold inventory to the tune of 2.7 tonnes. The SLV inventory of silver also remained firm with no losses.

GoldCore: The recent 22% decline in gold prices may lead to a substantial drop in gold production. During the 26% plunge in gold prices in 2007-08, gold production fell by 9.4%. Balance sheets in much of the gold mining sector are much worse than they were in 2007 and this may also force production cutbacks from the major producers, while growth from junior miners may struggle given the dire financing backdrop. This will support gold in the long term. Gold’s latest correction has put gold mining companies on the defensive globally and many are under severe pressure. Gold mining companies have been forced to cut costs, investment and most importantly for the price of gold - production. All of which will likely worsen already strained relations with workforces, particularly in poor countries in Africa and South America.

GoldCore: The Philadelphia Stock Exchange Gold and Silver index has performed miserably in recent years and is down 34.6% YTD and 34.56% in the last year. Indeed, the index is at levels seen nearly 30 years ago in 1984. Printing and debasing currency is easy with central bankers just pressing a few buttons on a keyboard and electronically creating billions and indeed trillions of dollars, euro’s, pounds and yen today. Mining for gold and other precious metals is far from easy and gets harder every year. Miners are having to go deeper and deeper into the ground in the attempt to extract the precious metal from the bowels of the earth. Ore grades are declining globally and peak gold has been reached in South Africa and may have been reached globally. The poor miners in South Africa who are wielding machetes today will testify as to just how very hard it is to mine for the earth’s precious metals – despite the huge advancement in technology seen in recent years.

Reuters: Richard Peterson, acting director of the US Mint, explains that demand for US gold and silver bullion remains at "unprecedented" high levels almost two months after the historical sell-off. So is that what the pent-up-demand, 'money on the sidelines' has been waiting for? Notably, Peterson also added that, due to demand, the Mint may resume making platinum bullion coins (after stopping in 2008).

Addison Wiggin (Daily Reckoning): It’s a Sunday night. October 2013. Parents are making sure the kids’ homework is done. Football fans are settling in for the night’s NFL matchup. Reigning champs, Baltimore, are about to lose. And all hell is breaking loose in the precious metals markets. Moments before electronic trading opened at 6 p.m. EDT, Commodity Exchange Inc. — the Comex — announced it would settle a large gold contract in cash and not gold. To be blunt about it, the Comex has defaulted on its contract. Suddenly, everyone else with a gold contract — or a silver contract — started to wonder if they’d be next to get stiffed. Gold, which ended that autumn week at $1,715 an ounce, starts gyrating wildly… but mostly up. By Monday morning, it’s up past $1,800. But good luck trying to get that price — or anything near it — at a coin shop or online dealer. Under normal circumstances, a $1,800 spot gold price would mean U.S. Gold Eagles around $1,890 — a 5% premium. But on this day, buyers — desperate to get their hands on actual, physical metal because trust in the system is breaking down — have driven the price far above $2,000. This is “zero hour” — the day you can mark on a calendar when the price of real metal breaks away forever from the quoted price on CNBC’s ticker. It’s the day you’ll be grateful you hold real metal and not a proxy like the GLD exchange-traded fund (ETF). Sound far-fetched? No. This or something like it will happen and probably soon.

Adrian Ash (Bullion Vault): David Govett at brokers Marex Spectron comments on yesterday's decision by the Indian government to ban credit-paid imports of gold bullion: "The [gold] market has quite rightly shrugged this off. If India wants gold, it will buy gold!" The Business Standard in an editorial agreed saying, "As a result of these measures, gold demand and import will come down...[but] smuggling of the precious metalis likely to go up." Reuters says retail distributors in the world's largest gold-consuming nation are "braced for higher premiums" over and above the international benchmark price for gold, typically quoted for London settlement. "Supplies will get more scarce," the newswire quotes Mayank Khemka of the Khemka Group. "There won't be any [gold bullion] imports for the next two-three days until clarity comes." Speaking for the world's leading gold-mining companies, "We recognize the short-term needs for such measures,"The Times of India quotes Aram Shishmanian, CEO of market development organization the World Gold Council. "But we are proposing to work with [the Reserve Bank of India]," he explains, "so that in the long term gold could be monetized as a financial asset" rather than as a physical consumer commodity dragging on India's trade balance. April saw net imports of gold bullion to China – the world's #2 consumer nation – fall 41% from March's record high, new data showed today. The net reading of 80 tonnes "is a surprise" said one dealer, but others cited a backlog of paperwork for gold importing banks who had already used their official quota in the first 3 months of the year. "Many invest in gold as a long-term holding due to its diversifying properties," Blackrock adds. Because gold bullion "has historically shown little to no correlation with other major asset classes, including commodities."

Adrian Ash: On the supply side, the world's largest gold mine, the giant Grasberg mine in Indonesia, will be shut for 3 months as the government investigates a collapse which killed 28 miners in May. Majority owned by Freeport-McMoRan Copper & Gold Inc, Grasberg had been scheduled to produce some 65 tonnes of gold this year – more than 2.4% of global output – after falling to 28 tonnes due to strikes in 2012. The shutdown will likely bloock 125,000 tonnes of copper production too.

Harvey: The Yen carry trade is coming unglued. The way the Yen carry trade is supposed to work is that investors borrow yen and purchase assets like Spanish and Italian bonds. The trade looks to be OK in theory due to the fact that the yen should falter with a doubling of the monetary base in only 2 years and investors could score 4% on the yield spread. Investors then leverage that trade 24 - 36 to one. What happens if the yen rises and the Italian bonds/Spanish bonds falter? Answer: they have a mess on their hands as leverage rips their hearts out. Then you can add banks that have done derivative trades on this and the mess just magnifies. Collateral disappears as losses skyrocket. The Japanese bond market (2nd biggest in the world) has come unglued and is no longer stable as a result of Abenomics hyperinflation.

Bill Holter (Miles Franklin): There are $ trillions in bets on Japanese Yen, bonds and stocks. Extreme volatility will create both winners and losers. The problem is that with such extreme volatility, the winners will be huge and the losers devastated. The question then becomes "can the losers perform and actually payout to the winners?". The answer to this is NO, they cannot. But how do I know this? Because all it will take is one loser who is over levered and can't pay, this will cause a break in the chain and everyone will then start grabbing for "collateral". "Collateral", you know...that thing that Europe and The BIS spoke so much about last week? Did you think that the "odd timing" of both Europe and the BIS commenting about collateral was a coincidence? And the BIS coming out with its "simple plan" to re collateralize insolvent U.S. banks...another coincidence? How about the new disclaimer at the Comex website? Why now? Why while all this other "noise" (it's not if you are really listening and want to hear what they are saying) is being bandied about? The Comex now says, "we can't be held liable for anything, the numbers may or may not be real, you pays your money you takes your chances". This "noise" in reality will be looked at (and actually pointed to) and you will hear "we tried to warn you!". If you have been actually "listening" to what they have been saying all along, the whole thing is unsustainable. I am not talking about what the mainstream tells you because they walk out clown after clown to keep you in place. If you listen to the actual words that come out OFFICIALLY, they are telling you that game over is being prepared and the plug will be pulled. If you didn't listen, hear or understand...oh well then...that's YOUR fault!

Wolf Richter (TestosteronePit): As the West outsourced their industry to cheap labor in China, they poured billions into Chinese industrialization. As a result hot money washed ashore, even while the Chinese government added to the frenzy by creating an enormous credit bubble that could effortlessly fund just about anything, from the largest high-speed and money-losing rail network in the world to entire ghost cities, no matter how impossible it would later be to service this debt. That bubble is there for all to see, more flamboyant than ever, scaring even the government-–and the rich. Those who can, while they still can, try to take at least some of their money overseas where it would be safe even during periods of financial or political instability at home. But bubbles are everywhere. An economic slowdown is looming over the global economy, but no one seems to care, as stock markets continue to reach new record-highs – giving investors false hopes of economic growth. But how long can this mirage actually last? DS: So, China is economically unstable from unsustainable debt when the West stops buying their goods. Unrest will follow the collapse of the bubble, because the already poor laborers will not be able to eat.

Tyler Durden: We reported yesterday that Europe, in a surprising escalation of global trade wars, announced it would impose solar-panel duties against China in one week, with the terms rapidly deteriorating over the next three months. It took China less than one day to retaliate. What's worse the retaliation is aimed at Europe's already weakest - the PIIGS - by targeting not hard German machinery exports but something far more prosaic: French, Spanish and Italian wine. DS: This is not surprising. This is exactly what Lindsey Williams said would happen. It is coming true exactly as he said. There would be currency wars, and we have seen that. There would be trade wars, and this Europe/China tiff is the latest. I am sure you remember the China/Japan tiff earlier. The last thing that would happen before the dollar crashes is interest rates rising, and we have already seen that happening. The 30 year is above 3%. The 10 year is above 2 and rising. The interest rate on the Japanese government bond has quadrupled in the last few days. These interest moves will have profound effect, because rising interest rates eat up revenue streams. Japan is already using 25% of its revenue just to fund the interest on Japanese Government Bonds. At only 2%, the government will need to use their entire income just to pay interest on their debt. This is not good! Not good at all!

Pivotfarm: Talks are still on-going between the IMF and Egypt over future loans worth up to .8 billion to get the country back on its feet. Arab aid from the IMF in the entire region has hit the billion mark in the last year alone. But, if there is not action taken pretty soon, Egypt will fall into uncontrollable depths of inflation and unemployment and see unrest increase in the country. For the moment, it’s the people that are in dire straits and they are the ones that are in need of immediate help to alleviate their problems.

Dave from Denver: I believe that the junk bond market is starting to price in the deteriorating economic fundamentals and has begun a price correction to reflect the expectations of higher credit risk for companies which require cash flow growth to service their debt. It is my view that the stock market will soon "catch up" to the junk bond market in a big sell-off that will be triggered soon by something - perhaps even a bad employment report this Friday. The fact of the matter is that 1) the economy is going into a tail-spin, especially the housing market and 2) QE was never intended to prop up the economy. Huh? Ya, that's right. QE is 75% about keeping the banking system from collapsing and 25% about keeping the Government funded at low interest rates.

Tyler Durden: ADP Misses Expectations, Second Worst Print In Last 8 Months; Sequester Blamed. Hourly Compensation Crashes Most Ever, Labor Costs Drops By Most In 4 Years, Manufacturing Compensation Plummets By 7%.

William Selway (Bloomberg): JPMorgan Chase & Co. may see as much as $1.6 billion go down an Alabama sewer.

The biggest U.S. bank by assets agreed to forgive $842 million of debt owed to it by Jefferson County, Alabama, where it took the lead in arranging risky securities deals that pushed the county into the largest U.S. municipal bankruptcy, in November 2011. That agreement follows a $722 million settlement in 2009 with the U.S. Securities and Exchange Commission related to the Jefferson County financing. JPMorgan’s total costs amount to a quarter of the $6.2 billion trading loss in 2012 from corporate-credit bets by a trader known as the London Whale. The episode prompted an outcry in Washington and challenged Chief Executive Officer Jamie Dimon’s reputation as a savvy leader.

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

Quote:

Gold closed up by $1.30 to $1398.40 (Comex closing time).

Silver rose by 6 cents to $22.46 (Comex closing time).

In the access market at 5:00 pm, gold and silver finished trading at the following prices :

Gold: 1404.10

Silver: $22.56

Tuesday, June 4th Gold and Silver Action (basis 1:30 PM EST)

https://harveyorgan.blogspot.com/2013/06/jpmorgans-vault-gold-declinesall.html

Total, May (Silver), Jun (Gold), Jul (Silver) Open Interest

In silver

Quote:

The total silver Comex OI completely plays to a different drummer than gold. Its OI rose by 739 contracts to 145,734, with silver's fall in price to the tune of 34 cents yesterday. The front non active June silver contract month shows no gain or loss in OI contracts. We had 0 notices filed yesterday so in essence we neither gained nor lost any silver ounces standing for metal for the June contract month.

In gold

Quote:

The total gold Comex open interest fell by 2909 contracts from 375,970 down to 373,061 with gold falling by $14.60 yesterday.

The front active month of June saw it's OI fall by 225 contracts from 3540 contracts down to 3315. We had 63 contracts served upon our longs yesterday. We thus lost 162 contracts or 16,200 that will not stand this month.

The next delivery month is the non active July contract and here the OI fell by 62 contracts up to 537.

The next active delivery month for gold is August and here the OI fell by 2725 contracts from 215,940 down to 213,215 .

Volume

In silver

Quote:

The estimated volume today was fair, coming in at 39,988 contracts.

The confirmed volume yesterday was better at at 42,750.

In gold

Quote:

The estimated volume today was poor at 129,971 contracts.

The confirmed volume yesterday was also poor at 126,177 contracts. It looks to me like all of the paper gold longs have been washed out!!

Inventory Numbers

In silver:

Quote:

Today, we had good activity inside the silver vaults.

We had 0 dealer deposits and 0 dealer withdrawals.

We had 1 customer deposit:

i) Into Scotia: 832,114.52 oz

Total customer deposit: 832,114.52 oz

We had 3 customer withdrawals:

i) out of Brinks: 500,014.80 oz

ii) out of CNT: 21,017.71 oz

iii) out of Scotia: 600,120.075 oz

Total customer withdrawal: 1,121,152.985 oz

We had 0 adjustments today

Registered silver at: 42.035 million oz

Total of all silver: 164.204 million oz.

In gold:

Quote:

We again had good activity at the gold vaults

The dealer had 0 deposits and 0 dealer withdrawals.

We had 0 customer deposits today: (very strange for a huge delivery month of June)

Total customer deposit: nil oz

We had 2 customer withdrawals today:

1. Out of JPMorgan 21,034.434 oz (and this will partially settle May's 100,000 oz of JPM issuance)

2. Out of HSBC: 32.222 oz ( I guess this kilo bar had a little extra weight on it)

Total withdrawal: 21,066.656 oz

If you will recall, we needed to see 100,000 oz of gold removed from JPMorgan's customer account. (1000 contracts served upon our longs in mid May).

Yesterday, we had 15,416.93 oz removed from the JPM's customer account. No doubt that this gold was part of the 1000 contracts issued by JPMorgan customer account and thus we calculated that as of yesterday 28,389.579 oz was settled upon, leaving 71,611.00 still left to arrive in the settling process.

Today we received notice that all 333 notices served upon today were issued by JPMorgan's customer account. We can assume that this will settle upon our longs and this will reduce by 33,300 oz what is left to be settled by JPMorgan on the customer side of things.

Today, we also received notice that we have one adjustment and that too involved JPMorgan:

Out of JPMorgan 8,793 oz was removed from its dealer account and this lands in its customer account.

Thus JPMorgan still needs the following: 71,611.00 - 33,300 - 8793 oz or 29,518 ounces to serve upon our anxious longs from its client or customer accounts.

Thus tonight we have the following closing inventory figures for JPMorgan:

i) dealer account: 412,529.844 oz

ii) customer account 355,222.011.

Now for JPMorgan's dealer side and what the inventory should be:

Last night we reported that 4935 contracts have been issued by JPMorgan's house account since first day notice and not yet subtracted out of inventory

You will also recall on Saturday and Monday night, I reported that JPMorgan had 470,322.102 oz in it's dealer account.

On the dealer side today we had 0 notices issued.

Thus, so far 4935 contracts have been issued so far for 493,500 oz

JPMorgan's dealer vault registers tonight 412,529.844 oz.

Somehow we have a huge negative balance as i) the gold has not left JPMorgan's dealer account yet to settle and ii) it is now deficient by 85,713.16. oz (412,529.844 inventory - 493,500 oz issued = 85,713.16 oz)

JPMorgan has not had any deposits in gold in quite some time.

How will JPMorgan satisfy this shortfall??

HSBC 's dealer vault gold is also slim as it remains at: 260,323.275 oz (8.09 tonnes)

Tonight the dealer inventory remains tonight at a low of 1.513 million oz (47.06) tonnes of gold. The total of all gold slightly contracts, resting tonight at 7.985 million oz or 248.3 tonnes.

Delivery Notices

In silver:

Quote:

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

In gold:

Quote:

Today we had 333 notices served upon our longs for 33,300 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

Quote:

In order to calculate what we believe will stand in the month of June, I take the OI standing for June (102) and subtract out today's notices (0) which leaves us with 102 notices or 510,000

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

22 contracts x 5000 oz per contract (served) = 110,000 oz + 102 contracts x 5000 oz or 510,000 oz left to be served upon = 620,000 oz

We neither gained nor lost any silver ounces today at the Comex silver.

In gold:

Quote:

In order to calculate what I believe will stand for delivery in June, I take the OI standing for June (3315) and subtract out today's notices (333) which leaves us with 2982 contracts or 298,200 oz left to be served upon our longs.

Thus we have the following gold ounces standing for metal in June:

6382 contracts x 100 oz per contract or 638,200 oz served upon + 2982 contracts or 298,200 oz (left to be served upon) = 936,400 oz or 29.12 tonnes of gold.

We lost 162 contracts or 16,200 oz of gold will not stand for the June contract month.

We now have the official USA production of gold last year and it registered 230 tonnes. Thus approximately 19.16 tonnes of gold is produced by all mines in the USA per month. Thus the amount standing for gold this month represents 151.98% of that total production.

Select Commodity Prices:

The Bloomberg Baltic Dry Index (BDI) was 801.0 down 0.50%. WTI June crude was 93.88 up 0.10. Brent closed at 103.04 down 0.37. The spread between Brent and WTI was 9.16, down 0.47. The 30 year US Treasury bond was down 0.0370 at 3.2600. The dollar was down 0.21 at 82.57. The PPT/Dow was 14,960.59 down 216.95, BELOW the very key round number of 15,000! Facebook was 22.90 down 0.62 (2.64%). Silver closed down 0.01 at $22.54. July wheat was down 7.40 at 701.40. July corn was up 0.20 at 660.60. June lean hogs were 96.650 up 0.125. September feeder cattle were 146.775 down 0.775. July copper was 3.3715 up 0.0025. July natural gas was up 0.003 at 4.001. July coal is 61.02 down 0.21.

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

https://harveyorgan.blogspot.com

Goooood day!

•••••••••••••••••

Thu, Jun 6, 2013 - 1:58pm
DayStar
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Comment from Jim Sinclair

Jim Sinclair wrote: I will see you in Chicago and Vancouver on the week of July 8th. I just hope that I can make 10 more locations to see you eye to eye before the elite who have told you exactly what they are going to do to you, pull the plug on exit.

DS: Sinclair thinks there is a high probably of the system crashing in the next four weeks. Ranting Andy likewise said only yesterday, "We are getting so close to something CATACLYSMIC occurring; I can smell it, feel it, and taste it. However, trying to time such inflection points is impossible; and thus, my ongoing advice is to 'insure' yourself with the only asset historically PROVEN to protect your wealth." Sinclair has previously warned that gold is going to $3500, and when it does, it will destroy the American way of life.

The only reason Sinclair has not been right about gold thus far is that the markets are entirely cartel driven, and there is hardly any manifestation of true market forces visible in today's markets. However, since not even the elites can repeal the law of supply and demand for ever, when silver and gold and food disappear, the disaster of the present policies will become fully evident.

It might be a good weekend to make sure as little as possible is in the bank. Protect yourself, and do it now!

DayStar

Thu, Jun 6, 2013 - 2:10pm
dgstage
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Horseshoe Bay, TX
Joined: Jun 14, 2011
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Daystar

Thanks

dgfish