Harvey Organ Should Be An Interesting Read Today

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Tue, Oct 22, 2013 - 10:44am
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Point of No Return

Here is a story from John Embry on KWN that I did not carry last night, but it is a stark reminder worth repeating:

John Embry, business partner of billionaire Eric Sprott and a man who has had his head in the financial markets for 50 years, shares that no matter which way this financial crisis ends, it is going to be a ‘frightening end to all of this”.

John Embry discussed some very strange events that have been occurring in both the gold and silver markets. Is there any way that America can straighten this sinking ship? Dave Morgan and John did a video series days ago discussing the American debt crisis here. The reality here is that once a nation or nations go past a certain point, there is no turning back. You have to either destroy the debt structure, which is a hard-debt deflation, or you destroy the currency by printing more and more until you see a hyperinflationary collapse. There will be no other possible outcome to this scenario other than the horror of what I just described to you. Regardless, one way or another we are looking at a frightening end to all of this. DS: Yes, and the economic crash is just the beginning. After that we have to contend with asteroids, WWIII, biological warfare, and geoweapons.

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Tue, Oct 22, 2013 - 9:20pm
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~~Harvey 22 Oct 2013

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

News and Commentary

Jim Sinclair: My fear is that governments in the US, Britain, and Europe will display similar reflexes as Russia, Argentina, Ireland, Hungary, Poland and cyprus who seized private property without due process. Indeed, the West has already done so. The forced-feeding of banks with fresh capital - whether they wanted it or not - and the seizure of the Fannie/Freddie mortgage giants before they were in fact in trouble (in order to prevent a Chinese buying strike of US bonds and prevent a spike in US mortgage rates), shows that private property can be co-opted - or eliminated - with little due process. Forbes' Richard Eisenberg claims that the government is targeting our 401ks with taxes. Indeed, rumors have swirled in Washington that the government was considering seizing funds from our 401k accounts. Martin Armstrong predicted last month that government will seize all pension funds globally - In the US that will Include 401Ks, and Paul Craig Roberts, former Assistant Secretary of the Treasury under President Reagan, former editor of the Wall Street Journal, listed by Who's Who in America as one of the 1,000 most influential political thinkers in the world, and PhD economist, notes that some government officials have considered this option more than a decade ago.

Harvey: GOFO numbers are now mostly in the negative as gold is now extremely scarce as the boys are finding it harder to find physical. Gold is in backwardation from 1 month out to 3 months out. GLD: Gold lost 3.91 tonnes and closed at 878.32 tonnes. SLV: Silver was unchanged and closed at 10,391.35. In India gold premiums are $100/oz. DS: Think $100/oz arbitrage premium won't encourage some gold smuggling?

Mark O’Byrne (GoldCore): Marc Faber the author of "The Gloom & Doom Report" was interviewed on CNBC's Squawk Box today.

Faber commented, "The question is not 'tapering', the question is at what point will they increase the asset purchases to say $150 billion, $200 billion, or a trillion dollars a month." [DS: Not unlikely. During Weimar and Zimbabwe it was much more than that, and now Argentina is cranking up to try to outdo them both.] Faber was one of the few investment advisers to clearly warn of the coming global financial and economic crisis in the months and years pre-Lehman. ‘QE-4-EVA’ is here to stay, as Faber laid out "every government program that is introduced under urgency and as a temporary measure is always permanent." Simply put, "The Fed has boxed itself into a position where there is no exit strategy," and while inflation may not be present in the 'chosen' indicators, Faber trumpets, there's been incredible asset inflation - "we are the bubble. We have a colossal asset bubble in the world [and] a leverage or a debt bubble." There will be massive wealth destruction, he concludes, "one day this asset inflation will lead to a deflationary collapse one way or the other. We don't know yet what will cause it." In January, in response to a question from Yale University’s Robert Shiller querying the recommendation to hold gold, Faber said: “I’m prepared to make a bet, you keep your U.S. dollars and I’ll keep my gold, we’ll see which one goes to zero first.”

Ambrose Evans Pritchard (UK Telegraph): Bet on Europe's recovery if you want, but remember one thing. The North-South gap at the root of EMU's troubles will be not closed by a return to tolerable growth -- far from assured -- because it will also bring forward the day when Germany demands interest rate rises. The crisis changes shape. It does not go away. Monetary union remains dysfunctional with growth or without growth. Belief that a fresh cycle of economic expansion will put this endless saga behind us is just the latest of so many illusions. Prof Heisbourg is right. Delay no longer serves any useful purpose for Europe. 'Twere better the deed were done quickly.

John Embry (via King World News): “The one thing the central planners of the world can’t stand is for a light to be shined too closely on reality. One of the things KWN interviews are doing is pointing out the fact that things aren’t as they are being portrayed. In Nixon's day you could have a Volcker ride to the rescue an economy reeling under the effects of wage and price controls and put in the cure of interest rates that were staggeringly high -- and we bought another complete 30-year cycle out of it. But that avenue is now gone because of the enormous debt that was created in the subsequent 30-years after Volcker helped save the financial system by hiking interest rates to nearly 20%. Now, you would have a complete and utter collapse of the financial system if something like a ‘Volcker-style’ policy was undertaken. So I would suspect we will go the opposite direction and see ‘QE-to-infinity’ because whenever central planners attempt to withdraw the punch bowl, bad things immediately start to unfold. The bottom line is that everyone has to have some physical gold and silver in their portfolios as an antidote to the nightmare that is still in front of us. I would just add that I think the reason there is a growing global army of KWN followers is directly related to the fact that people know something is wrong, and more and more people are sensing that the financial system is now in fact in a terminal state.”

Bill Holter: Florida's #1 export last year was $8 billion worth of Gold. Apparently most of this Gold was shipped to their new trading partner, Switzerland! Yes, I know, this Gold was either "vaulted Gold" that was shipped overseas or of the "cash for Gold" type. My point is that $8 billion is a lot of Gold. This works out to something like 150 tons or more. So why would this Gold be shipped to Switzerland? I can only speculate, but maybe this Gold needed to be refined? Or because the Swiss have more demand than they can meet and they needed "product"? In any case, Gold as opposed to oranges or sugar cane as the largest export was certainly a surprise to me.

Siddesh Mayenkar (Reuters): The shortage of the metal sent Indian gold premiums to more than $100 an ounce over London prices this month when demand far exceeded supply due to the Dussehra festival, one of several connected with harvests and invoking Lakshmi, the goddess of wealth. The related festivals of Diwali and Dhanteras fall in the first week of November. "New imports for domestic use could start in the next 10-15 days, which could coincide with Diwali and Dhanteras. But despite new imports, the supply situation will be very tight and premiums may even go up to $150," said Bachhraj Bamalwa, director at the All India Gems and Jewellery Trade Federation. Premiums in other parts of Asia such as Hong Kong and Singapore were stable at less than $2 an ounce. Many suppliers are turning to smuggled gold, especially as that also avoids the 10 percent import duty. As a result, even smuggled gold commands a premium of $50 an ounce above London prices, according to the Bombay Bullion Association (BBA).

Zero Hedge: Can someone please explain this whole "Grecovery" concept to us because neither we, nor apparently the people of Greece, who are not only unemployed and broke, but have negative savings, and collapsing wages, social benefits and disposable income, seem able to understand it. Here is the latest absolutely disastrous news from Elstat, reporting on Q2 Greek Non-financial sector accounts. During the second quarter of 2013, disposable income of the households and non-profit institutions serving households (NPISH) sector (S.1M) decreased by 9.3% in comparison with the same quarter of the previous year, from 33.2 billion euro to 30.1 billion euro. This was mainly on account of a decrease of 13.9% in the compensation of employees and a decrease of 12.4% in social benefits received by households. The good news for all the broke, unemployed, incomeless Greeks: you still have your precious Euro.

Tyler Durden: Earlier this year, the French government promised a ‘tax pause’ in 2014, suggesting that they would not raise taxes next year. Last month, though, they revised this pledge, saying that the tax pause would take effect in 2015 instead. Needless to say, there will be no pause in 2015. Why? Because France is broke. Like so many other nations across the West, France has been rendered completely insolvent by decades of unsustainable spending. France has been in this position before. In the 18th century, the French Bourbon monarchy was the pinnacle of civilization. Yet decades of unsustainable spending took their toll on the economy. They tried everything– raising taxes, debasing the currency… yet their was no avoiding the inevitable. Revolution. And this period of turmoil, from the time the French people stormed the Bastille, to the time when calm prevailed, took 26-years. DS: It won't take that long this time. They plan to kill most of us off by starvation, and they probably have hidden reserves of men and material they will use to consolidate the remains of Europe, Africa and Asia. Only after they stabilize what's left elsewhere will they organize and execute an invasion against what little is left in the US.

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

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

Quote:

Gold closed up $26.80 to $1342.50 (Comex closing time).

Silver was up 52 cents at $22.75.

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

Gold: $1340.90

Silver: $22.72

Monday, Oct 21st Gold and Silver Action(basis 1:30 PM EST)

https://harveyorgan.blogspot.com/2013/10/gold-and-silver-rise-on-poor-jobs.html

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

In silver:

Quote:

The total silver Comex OI rose by 655 contracts as silver was up in price yesterday ( 36 cents ). The total OI now rests tonight at 114,828 contracts. We are now at extreme lows in OI with respect to silver (and gold) and I believe we can assume that both precious metal contracts are all in strong hands. The non active delivery month of October saw its OI rise by 5 contracts up to 47 contracts. We had 3 notices filed yesterday so in essence we gained 8 contracts or an additional 40,000 oz will stand for delivery. The big December contract saw its OI rise by 1865 contracts up to 77,096.

In Gold:

Quote:

The total gold Comex open interest rose today by 2619 contracts from 381,726 up to 384,345 as gold rose yesterday by $1.30. We are now in the active delivery month of October and here the OI fell by 51 contracts down to 185. We had 47 notices filed yesterday so in essence we lost 4 contracts or an additional 400 oz that will not stand in the October delivery month. The biggest of all delivery months is the December contract month. The December OI rose by 488 contracts to 223,465.

Volume

In silver:

Quote:

The estimated volume today was good coming in at 45,226 contracts.

The confirmed volume on Monday was also good at 35,049.

In gold:

Quote:

The estimated volume today was strong at 167,670 contracts.

The confirmed volume yesterday was weak coming in at 79,328.

Inventory Numbers

In silver:

Quote:

Today, we had good activity inside the silver vaults.

We had 1 dealer deposits and 0 dealer withdrawals.

i) into the dealer CNT: 194,093.0000 oz (another of those famous.000 nice round deposits)

We had 3 customer deposits:

i) Into Brinks: 3,000.000 oz (another perfectly round deposit)

ii) Into CNT: 404,366.10

iii) Into Delaware: 2843.300 oz

Total customer deposits: 410,209.40 oz

We had 2 customer withdrawal:

i) out of CNT: 176,505.20 oz

ii) Out of Scotia: 30,557.95 oz

Total withdrawals: 207,063.15 oz

We had 0 adjustments today

Registered (dealer) silver: 44.066 million oz

Total of all silver: 165.672 million oz.

In gold:

Quote:

We had little activity in the Comex gold vaults today.

The dealer had 1 deposits and 0 dealer withdrawals today:

i) Into Brinks: 1200.01 oz

We had 0 customer deposits today.

Total customer deposits: nil oz

We had 0 customer withdrawals:

Total Customer withdrawals: nil oz

Today we had 0 adjustments.

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

JPM dealer inventory remains tonight at 283,004.004: oz or 8.805 tonnes.

JPM customer inventory rises tonight to: 447,413.381 oz or 13.916 tonnes.

Today, 0 notices was issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 131 contracts of which 122 notices were stopped (received) by JPMorgan dealer (house account) and 8 notices were stopped by JPMorgan's customer account (i.e. JPMorgan took almost all the issuance).

The total dealer Comex gold rises tonight to 707,095.284 oz or 21.99 tonnes of gold. The total of all Comex gold (dealer and customer) rises to 7,154,208.355 oz or 222.52 tonnes.

Tonight, we still have the continuing disturbing piece of news concerning the low dealer gold inventory for our 3 major bullion banks (Scotia, HSBC and JPMorgan). These 3 dealer gold dealers' inventory falls tonight to 17.938 tonnes. However we should see massive amount of gold leaves JPMorgan dealer gold to settle the delivery notices filed in October.

i) Scotia: 162,121.611 oz or 5.043 tonnes

ii) HSBC: 131,673.323. oz or 4.09 tonnes

iii) JPMorgan: 283,102.634 oz or 8.805 tonnes

Total: 17.938 tonnes

Brinks dealer account which did have the lion's share of the dealer gold saw its inventory level rise tonight to 116,927.48 oz or 3.63 tonnes. A few months ago they had over 13 tonnes of gold at its registered or dealer account.

Delivery Notices

In silver:

Quote:

The CME reported that we had 42 notices filed for 210,000 oz today.

In gold:

Quote:

Today we had 131 notices served upon our longs for 13,100 oz of gold.

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

In silver:

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

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

In silver:

Quote:

To calculate what will stand for this active delivery month of October, I take the number of contracts served thus for the entire month at 337 x 5,000 oz per contract = 1,685,000 oz from which we add the difference between the OI standing for October (47) minus the notices already served today (42)x 5000 oz to give us 1,710,000 oz standing for the month of October.

In summary:

337 contracts x 5000 oz per contract (served) or 1,685,000 oz + (47 - 42) x 5000 oz = 1,710,000 oz.

We gained 25,000 oz of silver standing in October.

In gold:

Quote:

In order to calculate what will standing for delivery in October, I take the total number of notices served (4339) x 100 oz per contract to give us 433,900 oz served from which add the difference between the OI standing for October (185) minus the number of contracts served today (131)x 100 oz per contract

Thus we have the following gold ounces standing for gold in October

4339 notices x 100 oz per contracts already served this month or 433,900 oz + (185 - 131) x 100 oz = 439,300 or 13.660 tonnes of gold.

We lost 4 contracts or an additional 400 oz will not stand for delivery.

This is an absolutely astounding level of gold standing in October as this month is generally a very poor delivery one at that.

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

i) the total dealer inventory of gold rises tonight and remains at a very dangerously low level of only 22.52 tonnes

ii) a) JPMorgan's customer inventory rests tonight at 447,413.381 (13.916 tonnes). This inventory will drop once the notices are filled from the JPMorgan customer account

ii) b) JPMorgan's dealer account rests tonight at 283,004.004 oz but all of that gold and them some is spoken for.

iii) the 3 major bullion banks have collectively only 17.938 tonnes of gold left in their dealer account (JPMorgan, HSBC, Scotia) and no gold is entering the dealer Comex vaults despite October being an active delivery month.

Select Commodity Prices

The Bloomberg Baltic Dry Index (BDI) was 1,847, down 1.65%. WTI November crude was 97.80 down 1.20. Brent crude was 109.97 up 0.33. The spread between Brent and WTI was 12.17 up 1.53. The 30 year US Treasury bond was down 0.0700 at 3.6100. The 10 year T-Note was down 0.1000 at 2.5100. The dollar was down 0.44 at 79.25. The PPT/Dow was 15,467.66 up 75.46. Silver closed at 22.71 up 0.47. The GSR was 59.0577 down 0.1419 oz of silver per oz of gold. CIA's Facebook was 52.67 down 1.18 (2.19%). December wheat was down 0.65 at 700.750. December corn was down 6.25 at 438.25. December lean hogs were up 1.025 at 88.575. November feeder cattle were up 1.250 at 167.850. December copper was up 0.032 at 3.336. November natural gas was down 0.087 at 3.581. November coal was up 0.51 at 57.32.

Thank you for reading the Harvey Report!

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

Goooood day!

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

Wed, Oct 23, 2013 - 10:26pm
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Joined: Jun 14, 2011
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~~Harvey 23 Oct 2013

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

News and Commentary

Harvey: GOFO numbers are now mostly in the negative as gold is now extremely scarce as the boys are finding it harder to find physical. Gold is in backwardation from 1 month out to 3 months out. GLD: Gold closed at 878.32 unchanged. SLV: Silver lost almost 24 tonnes and closed at 10,367.38.

Brandon Smith (Alt-Market): It is my belief based on substantial evidence that America, as a nation and a culture, is now being held hostage and tortured into submission on a grand scale using economic terror by the elitist establishment which dominates BOTH major political parties. The goal? To push our society to conform completely with the concepts of globalization, bureaucratic micro-management, and greatly reduced living standards. We are being conditioned to accept defeat and failure, and like children, to cry out for a parental authority to save us in our state of helplessness and fear, even if that authority was the cause of our fear from the very beginning.

RT: A gas pipeline was attacked near Damascus causing the capital and the southern part of Syria to suffer a blackout, SANA news agency reports. The electricity minister blamed the blast on rebels. "A terrorist attack on a gas pipeline that feeds a power station in the south has led to a power outage in the provinces, and work to repair it is in progress,” electricity minister Emad Khamis said. It is not immediately clear how extensive the blackout is. The minister said maintenance crews are working to restore power. Media reports say the capital city of Damascus is covered with thick smoke and shell explosions are being heard. “The whole city just went dark,” Reuters cited a resident who lives in the center of the city. This is the first example of a physical attack in Syria on the power grid. The question is what is going on with this distraction. Are chemical, biological or other types of weapons being moved without anyone knowing?

Keith Barron (via King World News): “We are going to see destructive inflation creeping around everywhere. Household goods, groceries, medical costs, insurance, things like that are going to continue to surge in price. So, despite the propaganda, yes, inflation is happening in America and elsewhere. For people who follow the various auctions at Sotheby’s or Christie’s, the amount of money they are getting at these auctions for fine art is unimaginable. We are seeing astonishing 100% gains in just 6-to-8-months, in many cases, for fine art. These art pieces are flying out of the auction houses at stratospheric prices. So we are seeing incredible inflation in fine art and luxury goods. But this is very telling because it’s going to move down the food chain, into other key markets such as gold and silver, and it is also the type of thing you see before a massive inflation begins.”

Michael Pento: Keith Barron earlier was discussing the ‘Great Inflation’ -- a technical hyperinflation in the fine art market (which is taking place) in anticipation of a coming ‘Great Inflation.’. Some of the (fine art) pieces have gained an astonishing 100% in just 6-to-8-months. It’s stratospheric the prices those (fine art pieces) are going out the door (of auction houses) for. Inflation, as it is created through a central bank, always goes to the top 1% of individuals. First, it goes to the major banks, and then it goes to the very, very rich. However, what he is saying is a precursor to what’s going to occur for the overall inflation level of the economy. First it goes into assets like stocks, bonds, real estate and art. Then, it will go down to food and energy prices, which we already see creeping up, and then it goes into intractable inflation. So we are headed there. The Fed confirmed monetary inflation with this statement: Fed President Charles Evans responded to a CNBC question and said, "I don’t really think about it as far as limits are concerned because I think there is a tremendous amount of capacity. We can go as long as necessary.” This comes, as they say, ‘From the horses mouth.’ This is a watershed moment in the Fed’s history. the Fed’s QE program is without end. It’s interminable. And now we have the Federal Reserve admitting that there is no limit, no dollar amount restriction, as to how high they will take the Fed’s balance sheet.”

GoldCore: Physical demand in China and India remains robust - particularly in India ahead of the festival season. Indian gold premiums remain near record levels due to rising domestic demand and scant supplies as exporters get priority over shipments. The government's misguided attempt to correct the current account balance by attacking gold buying and ownership has completely distorted the market leading to a lack of gold coins and bars which is creating panic gold buying of any gold available. Finance Minister, Chidambaram today ruled out the possibility of lifting a ban on import of gold coins and asked banks to strictly follow guidelines restricting inward shipments of gold. "Import of gold coins and gold medallions is prohibited. Nobody can import gold coins and medallions," he said, referring to a suggestion that the government should allow import of coins for 'shagun' or auspicious gift purposes.

Chris Powell (GATA): Hong Kong fund manager William Kaye tells King World News that the bond buying "tapering" that matters is not the Federal Reserve's but China's, that the Fed is unlikely to avoid inflation when it starts monetizing the bonds China won't buy, and that awful things will follow in the United States.

Eric Sprott (Sprott Asset Management): Gold demand statistics reported by the World Gold Council "consistently misrepresent reality" by understating metal flowing to Asia, Sprott Asset Management CEO Eric Sprott charges this week in an open letter to the council. Challenging the WGC's data compilation, which relies on methodology of the GFMS consultancy, Sprott calculates that annual gold demand is actually running 3,000 tons greater than mine supply.

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

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

Quote:

Gold closed down $8.60 to $1339.60 (comex closing time).

Silver was down 17 cents at $22.58.

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

Gold: $1334.10

Silver: $22.58

Tuesday, Oct 22nd Gold and Silver Action(basis 1:30 PM EST)

https://harveyorgan.blogspot.com/2013/10/oct-23bgld-holds-constant-but-slv-loses.html

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

In silver:

Quote:

The total silver Comex OI fell by 61 contracts as silver was up in price yesterday ( 52 cents ). The total OI now rests tonight at 114,767 contracts. We are now at extreme lows in OI with respect to silver(and gold) and I believe we can assume that both precious metal contracts are all in strong hands. The non active delivery month of October saw its OI fall by 41 contracts down to 6 contracts. We had 42 notices filed yesterday so in essence we gained 1 contract or an additional 5,000 oz will stand for delivery. The big December contract saw its OI fall by 2 contracts down to 77,094.

In Gold:

Quote:

The total gold comex open interest rose today by 6,024 contracts from 384,345 up to 390,369 as gold rose yesterday by $26.80. We are now in the active delivery month of October and here the OI fell by 131 contracts down to 54. We had 131 notices filed yesterday so in essence we neither gained nor lost any contracts standing in the October delivery month. The biggest of all delivery months is the December contract month. The December OI rose by 1619 contracts to 225,084.

Volume

In silver:

Quote:

The estimated volume today was poor coming in at 25,626 contracts.

The confirmed volume yesterday was also good at 48,097.

In gold:

Quote:

The estimated volume today was weak at 93,921 contracts.

The confirmed volume yesterday was excellent coming in at 175,765.

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 Brinks: 300,389.90 oz

ii) Into JPM: 539,048.50 oz

Total customer deposits: 839,438.40 oz

We had 2 customer withdrawal:

i) out of Brinks: 5092.40 oz

ii) Out of Scotia: 30,544,210 oz

Total withdrawals: 35,636.610 oz

We had 0 adjustments today.

Registered (dealer) silver : 44.066 million oz

Total of all silver: 166.476 million oz.

In gold:

Quote:

We had some activity in the Comex gold vaults today.

The dealer had 0 deposits and 0 dealer withdrawals today.

We had 1 customer deposit today.

i) Into JPMorgan another suspicious 32,150.000 oz or exactly 1 tonne of gold.

Total customer deposits: 32,150.000 oz

We had 2 customer withdrawals

i) Out of HSBC: 103.40 oz

ii) Out of Scotia: 95.93 oz

Total Customer withdrawals: 199.33 oz

Today we had 0 adjustments.

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

JPM dealer inventory remains constant tonight at 283,004.004: oz or 8.805 tonnes.

JPM customer inventory rises tonight to: 479,563.381 oz or 14.916 tonnes.

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

The total dealer comex gold rises tonight to 707,095.284 oz or 21.99 tonnes of gold. The total of all comex gold (dealer and customer) rises to 7,186,159.355 oz or 223.52 tonnes.

Tonight, we still have the continuing disturbing piece of news concerning the low dealer gold inventory for our 3 major bullion banks (Scotia, HSBC and JPMorgan). These 3 dealers' gold inventory fell tonight to 17.938 tonnes. However we should see massive amount of gold leaves JPMorgan dealer gold to settle the delivery notices filed in October.

i) Scotia: 162,121.611 oz or 5.043 tonnes

ii) HSBC: 131,673.323. oz or 4.09 tonnes

iii) JPMorgan: 283,102.634 oz or 8.805 tonnes

Total: 17.938 tonnes

Brinks dealer account which did have the lions share of the dealer gold saw its inventory level remains constant tonight at 116,927.48 oz or 3.63 tonnes. A few months ago they had over 13 tonnes of gold at its registered or dealer account.

Delivery Notices

In silver:

Quote:

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

In gold:

Quote:

Today we had 0 notices served upon our longs for nil oz of gold.

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

In silver:

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

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

In silver:

Quote:

To calculate what will stand for this active delivery month of October, I take the number of contracts served thus for the entire month at 338 x 5,000 oz per contract = 1,690,000 oz from which we add the difference between the OI standing for October (6) minus the notices already served today (1)x 5000 oz to give us 1,715,000 oz standing for the month of October.

In summary:

338 contracts x 5000 oz per contract (served) or 1,690,000 oz + (6 - 1) x 5000 oz = 1,715,000 oz

We gained 5,000 oz of silver standing in the October contract month.

In gold:

Quote:

In order to calculate what will standing for delivery in October, I take the total number of notices served (4339) x 100 oz per contract to give us 433,900 oz served from which add the difference between the OI standing for October (54) minus the number of contracts served today (0) x 100 oz per contract.

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

4339 notices x 100 oz per contracts already served this month or 433,900 oz + (54 - 0) x 100 oz = 439,300 or 13.660 tonnes of gold.

This is exactly the same standing as yesterday as we neither gained nor lost any gold ounces standing.

This is an absolutely astounding level of gold standing in October as this month is generally a very poor delivery one at that.

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

i) the total dealer inventory of gold rises tonight and remains at a very dangerously low level of only 22.52 tonnes

ii) a) JPMorgan's customer inventory rests tonight at 479,563.381 (14.916 tonnes) This inventory will drop once the notices are filled from the JPMorgan customer account

ii b) JPMorgan's dealer account rests tonight at 283,004.004 oz but all of that gold and them some is spoken for.

iii) the 3 major bullion banks have collectively only 17.938 tonnes of gold left in their dealer account (JPMorgan, HSBC, Scotia) and no gold is entering the dealer comex vaults despite October being an active delivery month.

Select Commodity Prices

The Bloomberg Baltic Dry Index (BDI) was 1,786, down 3.30%. WTI December crude was 97.28 down 1.72. Brent crude was 107.70 down 1.94. The spread between Brent and WTI was 10.42 down 0.22. The 30 year US Treasury bond was down 0.1000 at 3.5800. The 10 year T-Note was down 0.1200 at 2.4900. CIA's Facebook was 51.90 down 1.95 (3.62%). December wheat was up 0.35 at 701.750. December corn was down 1.75 at 442.75. December lean hogs were up 0.600 at 88.150. November feeder cattle were up 1.025 at 167.625. December copper was down 0.036 at 3.268. November natural gas was down 0.049 at 3.619. November coal was up 0.51 at 57.32.

Thank you for reading the Harvey Report!

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

Goooood day!

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

Thu, Oct 24, 2013 - 9:30pm
DayStar
Offline
Joined: Jun 14, 2011
2586
14106

~~Harvey 24 Oct 2013

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

News and Commentary

Harvey: Gold is still in backwardation from 1 month out to 3 months out. GLD: Gold lost 1.8 tonnes to close at 876.52. SLV silver lost 24 tonnes yesterday afternoon and in the middle of the night it received 63.7 tonnes and now stands at 10,442.30. DS: We have fantasy football and now we have fantasy gold and silver, or maybe phantom gold and silver, considering who we are dealing with.

Mark O'Byrne (GoldCore): Gold Krugerrands (1 oz) are trading at $1,403.75 or premiums between 4.75% and 5.5% [DS: premiums are around $56 an oz in London] and Gold Kilo Bars (1 kilo) are trading at $44,354.53 or premiums between 3% and 3.5%. Premiums are holding steady. The poor economic data published recently in the U.S. is signalling that the economic recovery is on shaky ground, and this has increased the allure of bullion.

Koos Jansen's blog, "In Gold We Trust" explores the recent surge of bullion exports from Switzerland. Jansen notes that Switzerland holds four of the largest gold refineries on the planet - Metalor, Pamp, Argor-Heraeus and Valcambi. These refineries are estimated to be responsible for 70% of the world's refining nestled in the Swiss Alps, and therefore a major amount of the world's gold is distributed there. If you look at 3Q, Switzerland has imported 808 tons of gold in 2013, and exported 680 tons. Year to date the country has imported 2,420 tons and exported 2,184 tons. This is the most gold Switzerland has ever exported. Jansen writes that although most of this is sent forward to Shanghai, however the Chinese are also importing directly from the Swiss. This is verified from Shanghai Gold Exchange (SGE) physical deliveries and from Alex Stanzcyk, Chief Market Strategist at Anglo Far-East Bullion, who Jansen spoke with directly. Stanzcyk said, "China imports a lot that's not going through Hong Kong (or through the SGE!)". If the gold is for the government they don't have to declare where it's going. DS: It is also interesting that some of the Vatican's gold and silver holdings are in Switzerland.

The People's Newz: Decades ago, the entire tobacco industry, better known as “Big Tobacco,” was brought to court in Minnesota for marketing fraud and for illegally “hooking” their customers with this supercharged nicotine. By 1990, tobacco companies were shown to be using more than 10 million pounds of ammonia compounds each year; that is why Marlboro nearly put every other brand out of business back in the 1960′s and early 70′s, because they were the strongest and fastest-hitting nicotine fix or “nic-fit” brand. Once R.J. Reynolds caught on to the “Breaking Bad” style of cooking nicotine with ammonia, the rest of Big Tobacco jumped on board, and here we are today, 45,000,000 people deep in America alone, and the number is growing.

X22Report: New information has been released which shows a much deeper connection between the Pakistani government and the CIA than what is publicly admitted to. The central bankers/US government need to maintain control of the puppet government in Pakistan to keep the US dollar as the reserve currency. Those people who are rising up want the central bankers out of their country, so the US needs to strike those people down by force.

Ronald-Peter Stoferle (via King World News): Now that gold and especially gold stocks are trading significantly below their peak levels, we see sell-side analysts – in typical pro-cyclical manner – constantly decreasing their price targets and cutting their earnings expectations for miners. This classical herding behavior is often a reliable buy signal. While analysts are becoming increasingly bearish, company insiders are becoming increasingly bullish. According to INK Research, insider buying has recently reached a new all-time high. The last time this happened was in October of 2008, close to the bottom in gold mining stocks. Therefore, from a sentiment perspective, gold and especially gold mining stocks are probably “the ultimate contrarian play” at the moment. This is what we like to buy at heavily depressed prices.

John Ing (via King World News): Gold has gone through the resistance area at $1,330. Now it looks like there is at least another $100 to this upside move in gold. So, now we have gold moving to 4-week highs, and the dollar has continued to struggle as we expected. I have told you for some time that we have seen the lows in gold, and I will say it again, the lows are behind us. People need to get rid of their bearish mentality and understand that we have now entered another bullish phase inside of this secular bull market in gold. What is also of extreme importance here is the ongoing decline in the US dollar. The bottom line is foreign nations are no longer comfortable with how the United States is handling its financial affairs. They have therefore taken matters into their own hands and they are aggressively cutting dollar holdings. When you look at the price of gold expressed in euros and the renminbi, they’re making new highs. So, my view, again, is that international investors are diversifying aggressively into gold and other hard assets. The question is, what is going to happen go the price of gold in US dollar terms? My view is that with the big slide coming in the US dollar, this is when we will start seeing a large move in both gold and silver. We are already seeing a big move in gold in other currencies -- it’s just a matter of time before we see that type of strong action in gold in dollar terms.”

John Ing on China and India gold demand: not only does China consume its own massive gold production, it has also imported a staggering 1,700 tons year-to-date. At that rate, the Chinese have sopped up virtually the entire world’s gold production. If you add in another 1,000 tons of gold being imported into India, you are now talking well above the entire world’s annual production of gold. So, while everyone has focused on the cyclical bear market in gold, which is over, they are not looking at the enormous gold consumption taking place in the Far-East. These Eastern nations are consuming gold at a rate that is almost unimaginable. Right now, inflation in China is running at 3%, and in India it’s running at 7%. People need to understand that the citizens of both of these countries are incredibly savvy when it comes to protecting their capital during inflation, and this is precisely why they are turning so aggressively to physical gold.

ArabianBusiness.com: Cleaners discovered 280 gold bars worth £1.17m ($1.9m) inside a toilet after landing on a flyDubai flight from the emirate to Bangladesh, according to the UK's Daily Mail. Armed police were called on board the plane when it landed at Hazrat Shahjalal International Airport in Dhaka, where the bullion was discovered during cleaning. Custom officials said they knew the bars – weighing 32kg in total - were on board and believe the person trafficking them sensed there was a police presence and abandoned the gold before fleeing the scene, the newspaper said.

Mark Spitznagel (via Zero Hedge): Spitznagel, author of The Dao of Capital , explained why he believes "the market is setup for a major crash," and expects a 40% decline in stocks. The current market "entirely artificial" environment driven by zero-interest-rates and central bank asset purchases, along with valuations and sentiment, has distorted the 'markets' in the same way as "in all other major tops in history." His investing advice is simple, "step aside!" But doesn't expect many to heed his proven advice, because, "it is the hardest thing to do right now, "and makes you look like a fool."

Bill Holter (Miles Franklin): No matter what anyone says, we would be completely helpless with an attack on the Dollar, Treasury market and precious metals all at the same time. You will not be able to sidestep this debacle and Prechter, Edelson, Gartman et al will all be cursed for their crystal balls going dark. Were a scenario like this to occur, even if you could get your coin dealer to answer the phone, take an order and even arrange payment and promise delivery...your "just in time" metal will not be coming because without even firing a single shot our nation could be shut down financially with an amount of money that for all intents and purposes is less than meaningless.

Zero Hedge: Goldman Sachs said it expects gold prices to fall in 2014 driven by improving US economic data, rising real rates and the commencement of tapering of monetary stimulus by the Fed. The bank expects gold price to decline to USD 1,144 per ounce in 2014. Separately, gold seen by UBS analysts having more to gain on bank regulation. Silver market seen in surplus next year, according to analysts at HSBC. DS: They could do this if they wanted. They have the physical in legacy hoards to make it happen, but I believe they really don't want to do that, because they are greedy and don't want to spend any more real money than they have to in order to crash the world, and they are looking to set a date in 2014 in which they will huff and puff and blow down the house of straw anyway.

Tyler Durden: When France released its August Jobseekers data in August, and it beat expectations dramatically reversing the trend of ongoing malaise with little to no supporting evidence of 'why', we were skeptical. Fast forward one month and we are almost speechless in that not only are European PMIs rolling over just as we warned but the French jobs data is totally screwed up as yet another technical glitch meant 20,000 'text' messages that went unreplied were responsible for the entire improvement.French Labor Minister Michel Sapin is back tracking fast, admitting pre-emptively that "September's data won't be good... due to the 'statistical incident'." The 50k drop last month has been was bettered by a 60k rise to a new record high for French unemployment. DS: Europe is being kept alive with injections of free money, probably via currency swaps [we will trade you some of our freshly printed money for some of yours]. As we saw in Weimar and Zimbabwe and Argentina, such practices have limits beyond which the currency becomes worthless.

Zero Hedge: Just 3 weeks ago we pointed out the fact that the Baltic Dry Index was being heralded as proof of China's (and therefore the world's great recovery) was a mistake. At the time, we noted the temporary nature of the move and now forward markets indicated it was not sustainable; and of course, were met with a chorus of deniers. Well, following a 4.4% decline today, the Baltic Dry Index has now plunged over 20% from its recent peak (and the more crucial Capesize container rates even more) as underlying demand simply cannot keep pace with the massive (overbuilt) ship glut that remains. Added to this is the apparent 'tightening' stance by the PBOC that we have been noting and we suspect, as we warned, the 2011 deja vus will be clear.

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

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

Quote:

Gold closed up $16.30 to $1350.20 (Comex closing time).

Silver was up 20 cents at $22.78.

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

Gold: $1346.10

Silver: $22.65

Wednesday, Oct 23rd Gold and Silver Action(basis 1:30 PM EST)

https://harveyorgan.blogspot.com/2013/10/oct-24gld-loses-another-18-tonnes-of.html

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

In silver:

Quote:

The total silver Comex OI fell by 762 contracts as silver was down in price yesterday ( 17 cents ). The total OI now rests tonight at 116,005 contracts. We are now at extreme lows in OI with respect to silver (and gold) and I believe we can assume that both precious metal contracts are all in strong hands. The non active delivery month of October saw its OI rise by 5 contracts up to 11 contracts. We had 1 notice filed yesterday so in essence we gained 6 contracts or an additional 30,000 oz will stand for delivery. The big December contract saw its OI fall by 947 contracts down to 76,147.

In Gold:

Quote:

The total gold Comex open interest rose today by 1,026 contracts from 390,369 up to 391,395 as gold fell yesterday by $8.60. We are now in the active delivery month of October and here the OI fell by 3 contracts down to 51. We had 0 notices filed yesterday so in essence we lost 3 contracts or 300 oz will not be standing in the October delivery month. The biggest of all delivery months is the December contract month. The December OI rose by 7 contracts to 225,091.

Volume

In silver:

Quote:

The estimated volume today was poor coming in at 30,742 contracts.

The confirmed volume yesterday was also poor at 28,937.

In gold:

Quote:

The estimated volume today was fair at 133,880 contracts.

The confirmed volume yesterday was poor coming in at 103,745.

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: 599,755.49 oz

ii) Into Delaware: 39,777.975 oz

Total customer deposits: 639,533.465 oz

We had 2 customer withdrawals:

i) out of HSBC: 4843.80 oz

ii) Out of Scotia: 230,779.700 oz

Total withdrawals: 235,623.500 oz

We had 0 adjustments today

Registered (dealer) silver: 44.066 million oz

Total of all silver: 166.880 million oz.

In gold:

Quote:

We had some activity in the Comex gold vaults today.

The dealer had 0 deposits and 0 dealer withdrawals today

We had 1 customer deposit today:

i) Into HSBC: 32,075.600 oz

Total customer deposits: 32,075.600 oz

We had 1 customer withdrawal

i) Out of Scotia: 64,009.062 oz

Total Customer withdrawals: 64,009.062 oz

Today we had 0 adjustments.

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

JPM dealer inventory remains constant tonight at 283,004.004: oz or 8.805 tonnes.

JPM customer inventory rises tonight to: 479,563.381 oz or 14.916 tonnes.

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

The total dealer Comex gold rises tonight to 707,095.284 oz or 21.99 tonnes of gold. The total of all Comex gold (dealer and customer) rises to 7,154,225.563 oz or 222.52 tonnes.

Tonight, we still have the continuing disturbing piece of news concerning the low dealer gold inventory for our 3 major bullion banks (Scotia, HSBC and JPMorgan). These 3 dealers' gold inventory fell tonight to 17.938 tonnes. However we should see massive amounts of gold leave JPMorgan dealer gold account to settle the delivery notices filed in October:

i) Scotia: 162,121.611 oz or 5.043 tonnes

ii) HSBC: 131,673.323. oz or 4.09 tonnes

iii) JPMorgan: 283,102.634 oz or 8.805 tonnes

Total: 17.938 tonnes

Brinks dealer account which did have the lion's share of the dealer gold saw its inventory level remain constant tonight at 116,927.48 oz or 3.63 tonnes. A few months ago they had over 13 tonnes of gold at its registered or dealer account.

Delivery Notices

In silver:

Quote:

The CME reported that we had 6 notices filed for 30,000 oz today.

In gold:

Quote:

Today we had 0 notices served upon our longs for nil oz of gold.

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

In silver:

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

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

In silver:

Quote:

To calculate what will stand for this active delivery month of October, I take the number of contracts served thus for the entire month at 344 x 5,000 oz per contract = 1,720,000 oz from which we add the difference between the OI standing for October (11) minus the notices already served today (6)x 5000 oz to give us 1,745,000 oz standing for the month of October.

In summary:

344 contracts x 5000 oz per contract (served) or 1,720,000 oz + (11 - 6 ) x 5000 oz = 1,745,000 oz

we gained 30,000 oz of silver standing in the October contract month.

In gold:

Quote:

In order to calculate what will be standing for delivery in October, I take the total number of notices served (4339) x 100 oz per contract to give us 433,900 oz served from which add the difference between the OI standing for October (51) minus the number of contracts served today (0)x 100 oz per contract

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

4339 notices x 100 oz per contracts already served this month or 433,900 oz + (51 - 0) x 100 oz = 439,000 or 13.650 tonnes of gold.

We lost 3 contracts or 300 oz will not stand for delivery in this October delivery month.

This is an absolutely astounding level of gold standing in October as this month is generally a very poor delivery one at that.

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

i) the total dealer inventory of gold rises tonight and remains at a very dangerously low level of only 22.52 tonnes

ii) a) JPMorgan's customer inventory rests tonight at 479,563.381 (14.916 tonnes). This inventory will drop once the notices are filled from the JPMorgan customer account

ii) b) JPMorgan's dealer account rests tonight at 283,004.004 oz but all of that gold and them some is spoken for.

iii) the 3 major bullion banks have collectively only 17.938 tonnes of gold left in their dealer account(JPMorgan, HSBC, Scotia) and no gold is entering the dealer Comex vaults despite October being an active delivery month.

Select Commodity Prices

The Bloomberg Baltic Dry Index (BDI) was 1,708, down 4.37%. WTI December crude was 97.11 down 0.17. Brent crude was 107.00 down 0.70. The spread between Brent and WTI was 9.89 down 0.53. The 30 year US Treasury bond was up 0.0300 at 3.6100. The 10 year T-Note was up 0.0300 at 2.5200. The dollar was down 0.14 at 79.19. The PPT/Dow was 15,509.21 up 95.88. Silver closed at 22.72 up 0.16. The GSR was 59.30 up 0.19 oz of silver per oz of gold. CIA's Facebook was 52.45 up 0.55 (1.06%). December wheat was down 5.25 at 696.500. December corn was down 2.50 at 440.25. December lean hogs were up 0.000 at 88.150. January feeder cattle were down 0.050 at 167.575. December copper was down 0.001 at 3.268. November natural gas was up 0.000 at 3.619. November coal was down 0.47 at 56.85.

Thank you for reading the Harvey Report!

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

Goooood day!

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

Sun, Oct 27, 2013 - 8:01pm
DayStar
Offline
Joined: Jun 14, 2011
2586
14106

~~Harvey 26 Oct 2013

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

News and Commentary

Andrew Maguire (via King World News): “If we see a pit close above that (50-day moving average) we can expect to see gold shorts get very nervous indeed (note that gold went higher after-hours on short covering). Now, each attempt (to take it below that level) was met with extremely large physical buying. Some of this (large demand for physical gold) we are seeing ramp-up, and it’s since China downgraded the US dollar. So, I think this is really a game-changer in itself because normally these kind of defenses have gained traction. They simply haven’t (this time). Each attempt has been met with huge buying. Physical demand for gold is not a US-centric factor -- it’s a global factor and it’s increasing exponentially. Eastern central banks and the sovereigns, they are now buyers of very, very large size. China is openly dumping dollars for anything tangible, including gold and silver. Now, the Indians have traditionally been the largest buyers of bullion, as well as the largest consumers. Relying on this historical advantage, and by being patient and not chasing price, they always had the luxury, and were a major factor in calling bottoms within the physical market because they would sit back and wait for the price to come down. However, China has recently taken the lead from them as the largest consumer of physical gold and silver. And due to the accelerating consumer, sovereign, and central bank demand, it’s rapidly consolidating that position, and it’s actually front-running the Indians, who are waiting for this historical price dip. That’s why we are not seeing it (the dip).

Robert Fitzwilson (via King World News): The official (government) inflation rate in the U.S. is in the 1-2% range. That calculation relies on the exclusion of the things most people care about, food and energy, as well as several other statistical tricks. The real inflation rate as calculated by John Williams of Shadowstats is many multiples of that range. We also see the effects of inflation in shrinking packaging and portion sizes. Inflation rates in India, Japan and China are also very high. There is no doubt that the currency wars are in full swing. So far, it has manifested itself as flows back and forth. The recent rise in the Euro is an example of that as capital flows out of the dollar into that fiat currency. The spark that will set all of this on fire will be the repudiation of all fiat currencies in favor of gold, silver, resources and other real assets. The mountain of fiat currencies and derivatives dwarfs the amount of real assets. As that mountain crumbles, we will see the sparks and the tinder come together in a monetary conflagration as wealth holders panic into anything that will hold value. The Weimar experience will seem like child’s play as the entire financial system for our global economy is deconstructed.

Andrew Maguire on gold premiums in China: We saw evidence of $100 premiums last week that was reported by Reuters. This week, demand for silver has been absolutely huge. Shanghai silver premiums have been as high as 64 cents above December futures. Think about that -- that is an incredible amount. We are talking about thousands of dollars above the equivalent price of a silver futures contract. That’s telling us something. It’s telling us that the likes of the LBMA and bullion banks, they don’t want you to see this. What it’s suggesting is tightness of physical supply, and (also) that arbitragers are raiding SLV inventory.”

Dr. Paul Craig Roberts (via King World News): [Foreigners] are just going to stop using the dollar. You see the BRIC’s settling their trade differences without using the dollar. You even see our puppet state, Australia, is now settling its trade balance with China in their own currencies, aborting the dollar. This means there are decreased demand for dollars which means a lower price (for the dollar). The Fed can print money all day to keep the price of bonds high, but they can’t print foreign currencies to buy dollars. So, that’s the real black swan that’s waiting to happen -- when does the dollar plummet? When can the Fed not get enough loans of foreign currencies to buy back the dollars? When that happens, then it’s all over -- they lose control. The interest rates skyrocket, bonds collapse, stocks collapse, real estate collapses (in real terms), and the deficit becomes huge. I mean really huge. So the whole situation is headed to hell in a hand basket.”

Egon von Greyerz (via King World News): All of these economic figures that are being published every day are adjusted and manipulated to make them look better than they really are. But these figures have no impact on the economy going forward because the die is already cast, and there is absolutely nothing that can change the direction of the US and world economies. The Fed and other central banks have no possibility of changing anything. They know what they have to do, and we know what they will do, which is to continue to pump unlimited amounts of money into the economy. The money supply is expanding exponentially, and so is the Fed’s balance sheet. For that matter, so is the federal debt. The next phase will not be exponential, it will be parabolic. Many people are wondering why we are not seeing inflation with all of this money printing. This is because the money is going into the financial system. So the banks are the major beneficiaries. A lot of this newly created money is going into the stock market as well. So, the rich are getting richer, but the masses are just getting more and more into debt. This is a very dangerous situation.

Egon von Greyerz on the demise of the dollar: As soon as the velocity of money accelerates, inflation will super-surge, and that is likely to start in 2014. The trigger for the turnaround in the US economy will be the fall of the US dollar. A reserve currency cannot be based on debt that is increasing exponentially, and this is why the world will soon dump the dollar at an accelerated pace. The fall of the dollar will be the trigger for the major economic decline. The stock market will fall, bonds will fall, and the money printing and the velocity of money will go up dramatically. This will be the beginning of a hyperinflationary depression. As the dollar falls, so will the euro, yen, and the pound, but at a slower rate. This is all part of the race to the bottom for these currencies. But the fall of the dollar should not be measured in other currencies, instead it should be measured in gold. And gold will soon start an exponential rise measured in paper money. There is a massive shortage of physical gold. And when the holders of paper gold demand delivery, there will be the most spectacular surge in the gold price. The good news for gold bulls is the start of that historic rise is not far away in my view.”

Terence P. Jeffrey (cnsnews.com): Americans who were recipients of means-tested government benefits in 2011 outnumbered year-round full-time workers, according to data released this month by the Census Bureau. They also out-numbered the total population of the Philippines. There were 108,592,000 people in the United States in the fourth quarter of 2011 who were recipients of one or more means-tested government benefit programs, the Census Bureau said in data released this week. Meanwhile, according to the Census Bureau, there were 101,716,000 people who worked full-time year round in 2011. That included both private-sector and government workers. That means there were about 1.07 people getting some form of means-tested government benefit for every 1 person working full-time year round.

Silver Doctors: One of my contacts with one of the largest European precious metals brokers told me this morning that they could not find any silver. All the refiners they contacted could not take their orders and could not give any delay. “Call us next next month”, they said. This is the first time that such an event has occurred. On Wednesday, he attempted to source a ton of silver (32,000 oz), from the three main Swiss refiners. Two of them refused to take the order entirely, and the third refiner stated delivery would take 2 weeks. The refiners claimed they had been very busy during the last month trying to fulfill an “enormous” Chinese order.

Nick Laird (Sharelynx.com): Measured against gold, the US dollar purchasing power has dropped by 99.9% over a nearly 300 year period. A $1,000, which initially purchased nearly 52 oz.’s of gold, finished the period with a purchasing power rate of 0.76 ounces, or roughly 23 grams of gold. While it’s clear none of us will live to see the next 300 years, the next 30 should be quite interesting. As the world continues forward on a pathway of zero interest rates and zero global “hard-money” backing—further monetary expansion should (over time) push the ratio of gold to dollars closer down to that same number of “zero”. In the short-term anything can happen price-wise, but again, over the long-term—protecting one’s purchasing power is warranted. After all, if the central banks are doing it—why can’t we? DS: This guy is a real optimist. The system does not look like it will hold together another year, let alone 30.

Harvey: Gold is in backwardation from 1 month out to 3 months out. GLD: Gold lost 4.5 tonnes to stand at 872.02. SLV: Silver was unchanged and remained at 10,442.30.

Bloomberg: Gold may jump 7.5% or $100 to $1,450/oz by year end if prices break out of a pennant formation, according to technical analysis by Paul Kavanaugh of Future Path Trading as seen on Bloomberg. The chart above shows gold trading in a “pennant flag,” when the upper and lower trend lines for prices meet to form a triangle. The lower level is $1,251, and the upper is $1,434, Kavanaugh said. “Prices are clearly trying to move higher, and a close above the 50-day moving average means we could see some strength,” Kavanaugh said.

Mark O’Byrne (GoldCore): Comments from state backed Xinhua that call for a "de-Americanised world" and a proposal to consider a new international reserve currency to replace the dollar mark a key event for gold prices. The official Xinhua News Agency and the voice of the Chinese government, offered a not so subtle, highly critical commentary on October 14 regarding the U.S.’ appalling fiscal, monetary and political situation as it stands today. Key among its proposals: the creation of a new international reserve currency to replace the present reliance on the U.S. dollar as reserve currency. The article suggested that this is a necessary step to prevent American bumbling and profligacy from further afflicting the world.

GoldCore: The smart money, including the Chinese people and the People’s Bank of China, is concerned about currency debasement and continue to accumulate physical gold for the long term. The dumb money continues to not understand the ramifications of dollar currency debasement and the De-Americanising world and continues to see gold as a trade or a mere speculation rather than the essential safe haven asset that it is. Gold is heading for the first annual decline since 2000. The Chinese have lustily greeted gold’s 19% drop this year by continuing to buy record amounts of gold. They know the price drop has created a gift for physical buyers globally.

World Gold Council in Response to Sprott: “Demand has been robust, particularly in Asia, both this year and over the previous decade – as we have consistently highlighted. The first half of the year has seen records set in terms of gold demand across a number of countries and sectors and the World Gold Council has been at the forefront in disseminating and explaining these outstanding figures. The World Gold Council has been sharing gold demand data for decades and we place a great emphasis on the quality of our data. Providing greater transparency and accuracy to the supply and demand model is a process in which the World Gold Council is heavily engaged on an ongoing basis. The use of import data as a proxy to measure gold demand is somewhat simplistic and does not take into account factors such as round-tripping and stocking/de-stocking. To effectively measure gold demand, a more detailed and holistic analysis is required. Every ounce of gold purchased has to be supplied and, with constrained production, recycling has grown to meet the unprecedented demand we have described. Providing more transparency and accuracy to the supply and demand model is an ongoing process in which we are heavily engaged.”

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

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

Quote:

Gold closed up $2.20 to $1352.40 (Comex closing time). Silver was down 18 cents at $22.60.

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

Gold: $1351.70

Silver: $22.55

Thursday, Oct 24th Gold and Silver Action(basis 1:30 PM EST)

https://harveyorgan.blogspot.com/2013/10/oct-252013gld-loses-another-45-tonnes.html

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

In silver:

Quote:

The total gold Comex open interest rose today by 5,561 contracts from 391,695 up to 396,656 as gold rose yesterday by $16.30. We are now in the active delivery month of October and here the OI rose by 1 contract up to 52. We had 0 notices filed yesterday so in essence we gained 1 contract or 100 additional oz will be standing in the October delivery month. The biggest of all delivery months is the December contract month. The December OI rose by 1950 contracts to 227,041.

In Gold:

Quote:

The total gold Comex open interest rose today by 5,561 contracts from 391,695 up to 396,656 as gold rose yesterday by $16.30. We are now in the active delivery month of October and here the OI rose by 1 contract up to 52. We had 0 notices filed yesterday so in essence we gained 1 contract or 100 additional oz will be standing in the October delivery month. The biggest of all delivery months is the December contract month. The December OI rose by 1950 contracts to 227,041.

Volume

In silver:

Quote:

The estimated volume today was fair at 107,151 contracts.

The confirmed volume yesterday was better coming in at 149,001.

In gold:

Quote:

The estimated volume today was fair at 107,151 contracts.

The confirmed volume yesterday was better coming in at 149,001.

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: 596,236.39 oz

Total customer deposits: 596,236.39 oz.

We had 2 customer withdrawal:

i) out of Brinks: 418,050.73 oz

ii) Out of Scotia: 30,075.000 oz (another nice round number xx.000 ounces)

Total withdrawals: 448,125.73 oz

We had 0 adjustments today

Registered (dealer) silver : 44.066 million oz

Total of all silver: 167.008 million oz.

In gold:

Quote:

We had no activity in the Comex gold vaults today.

The dealer had 0 deposits and 0 dealer withdrawals today.

We had 0 customer deposit today.

Total customer deposits: nil oz.

We had 0 customer withdrawal:

Total Customer withdrawals: nil oz

Today we had 0 adjustments.

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

JPM dealer inventory remains constant tonight at 283,004.004: oz or 8.805 tonnes.

JPM customer inventory rises tonight to: 479,563.381 oz or 14.916 tonnes.

Today, 0 notices was issued from JPMorgan dealer account and 17 notices were issued from their client or customer account. The total of all issuance by all participants equates to 29 contracts of which 28 notices were stopped (received)by JPMorgan dealer ( house account) and 0 notice stopped by JPMorgan customer account.

The total dealer Comex gold remains tonight at 707,095.284 oz or 21.99 tonnes of gold. The total of all Comex gold (dealer and customer) remains at 7,154,225.563 oz or 222.52 tonnes.

Tonight, we still have the continuing disturbing piece of news concerning the low dealer gold inventory for our 3 major bullion banks(Scotia, HSBC and JPMorgan). These 3 dealer gold inventory remains tonight at 17.938 tonnes. However we should see massive amount of gold leaves JPMorgan dealer gold to settle the delivery notices filed in October.

i) Scotia: 162,121.611 oz or 5.043 tonnes

ii) HSBC: 131,673.323. oz or 4.09 tonnes

iii) JPMorgan: 283,102.634 oz or 8.805 tonnes

Total: 17.938 tonnes

Brinks dealer account which did have the lions share of the dealer gold saw its inventory level remains constant tonight at 116,927.48 oz or 3.63 tonnes. A few months ago they had over 13 tonnes of gold at its registered or dealer account.

Delivery Notices

In silver:

Quote:

The CME reported that we had 11 notices filed for 55,000 oz today.

In gold:

Quote:

Today we had 29 notices served upon our longs for 2900 oz of gold.

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

In silver:

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

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

In silver:

Quote:

To calculate what will stand for this active delivery month of October, I take the number of contracts served thus for the entire month at 355 x 5,000 oz per contract = 1,775,000 oz from which we add the difference between the OI standing for October (13) minus the notices already served today (11) x 5000 oz to give us 1,785,000 oz standing for the month of October.

In summary:

355 contracts x 5000 oz per contract (served) or 1,775,000 oz + (13 - 11) x 5000 oz = 1,785,000 oz.

We gained 40,000 additional oz of silver standing in the October contract month.

In gold:

Quote:

In order to calculate what will standing for delivery in October, I take the total number of notices served (4368) x 100 oz per contract to give us 436,800 oz served from which add the difference between the OI standing for October (52) minus the number of contracts served today (29)x 100 oz per contract

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

4368 notices x 100 oz per contracts already served this month or 436,800 oz + (52 - 29) x 100 oz = 439,100 or 13.660 tonnes of gold.

We gained 1 contract or an additional 100 oz will stand for delivery in this October delivery month.

This is an absolutely astounding level of gold standing in October as this month is generally a very poor delivery one at that.

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

i) the total dealer inventory of gold remains tonight at a very dangerously low level of only 22.52 tonnes.

ii) a) JPMorgan's customer inventory rests tonight at 479,563.381 (14.916 tonnes). This inventory will drop once the notices are filled from the JPMorgan customer account.

ii) b) JPMorgan's dealer account rests tonight at 283,004.004 oz but all of that gold and them some is spoken for.

iii) the 3 major bullion banks have collectively only 17.938 tonnes of gold left in their dealer account(JPMorgan, HSBC, Scotia) and no gold is entering the dealer Comex vaults despite October being an active delivery month.

Select Commodity Prices

The Bloomberg Baltic Dry Index (BDI) was 1,671, down 2.17%. WTI December crude was 97.85 up 0.61. Brent crude was 106.93 down 0.06. The spread between Brent and WTI was 9.08 down 0.67. The 30 year US Treasury bond was down 0.0200 at 3.5900. The 10 year T-Note was down 0.0200 at 2.5000. The dollar was up 0.01 at 79.22. The PPT/Dow was 15,570.28 up 61.07. Silver closed at 22.60 down 0.13. The GSR was 59.8628 down 0.5627. CIA's Facebook was 51.95 down 0.50 (0.95%). December wheat was down 5.75 at 690.750. December corn was down 0.25 at 440.00. December lean hogs were up 0.825 at 90.425. January feeder cattle were down 0.650 at 166.050. December copper was up 0.005 at 3.269. November natural gas was up 0.078 at 3.707. November coal was down 0.45 at 56.40.

Thank you for reading the Harvey Report!

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

Goooood day!

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

Mon, Oct 28, 2013 - 10:38pm
DayStar
Offline
Joined: Jun 14, 2011
2586
14106

~~Harvey 28 Oct 2013

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

News and Commentary

Harvey: Gold is in backwardation from 1 month out to 3 months out. GLD: Gold was unchanged at 872.02 tonnes. SLV silver was unchanged at 10,442.30. We are now ready to move into the November Comex month. The November month is non active for both silver and gold. As options expiry has already passed, expect the bankers to whack silver and gold to persuade the holders of these contracts from taking delivery.

Michael J. Kosares (USA Gold): Macquarie gold analyst Matthew Turner suggested that the 1016 metric tonne United Kingdom export (up from 85 tonnes the previous year) might have been shipped to Switzerland for refining into “smaller bars more attractive to Asian consumers or to be vaulted there instead.” Though vaulting cannot be ruled out, the recasting explanation makes considerably more sense given the times and the extraordinary amount of gold being imported by China – over 1500 tonnes so far this year according to research published by the Koos Jansen website.

John Dizard (Financial Times, London): Indians are willing to pay about $270 above the world market price, when you add the "ex-duty premium" to the recently increased 10.3 per cent import duty. There is, of course, a black market price for those who are willing to take a chance with the Indian revenue that is a bit lower. The Chinese government has no anti-gold retail purchases policy. There are no issues with importing, refining and fabricating, or distributing gold. Yet there is a Shanghai market premium that last week was fluctuating from a little under $7/ounce to a bit over. That is actually a lot of money for a location arbitrage. The Chinese government has no anti-gold retail purchases policy. There are no issues with importing, refining and fabricating, or distributing gold. Yet there is a Shanghai market premium that last week was fluctuating from a little under $7/ounce to a bit over. That is actually a lot of money for a location arbitrage. As my old boss at Mocatta told me: "If you do this right, it's a nickel-and-dime business." Well, maybe a $2 or $3 business.

Viktor Kuzmin (RBTH): Russia has dramatically increased its gold production and may yet beat the U.S. to the third place in the output of the metal this year. Moscow is planning to sustain this growth by making it easier for foreign companies to obtain geological survey permissions. Having just recently replaced South Africa as the fourth largest gold producer in the world, Russia now stands a good chance of ending up in third place this year.

Russia Beyond the Headlines: The value of gold has decreased by 19 percent since January, and the outlook is for this trend to continue, making 2013 the first year of cheaper gold after a decade of constantly growing prices. "The upward trend has certainly been broken in 2013; next year I expect gold to approach the price of $1500 [per ounce]," says Oleg Dushin, senior analyst at the investment company Zerich Capital Management. Analyst Dmitry Tremasov at BKS Forex concurs: "There are very few growth drivers, so the price of gold is not likely to resume growth in the foreseeable future. From an instrument of protection, gold has turned into a risk asset dependent on fluctuations in the dollar exchange rate and also on the monetary policies of the U.S. and other countries." DS: What a stinky pile of rubbish! One could hardly imagine more growth drivers than exist for gold at the moment, but so far paper trumps metals.

Bill Holter (Miles Franklin): We are 1 year down the road from the latest QE effort and only now is it dawning on everyone that there is no "exit" door. Only now are market participants figuring out that the "lunatics" were right all along. The "liquidity" provided by the various QE's did not and never could "fix" the insolvency that was already in place, "liquidity" could only kick the can down the road that got heavier with each new round of printing. Gold inventories have been absolutely plundered. December Comex has open interest representing over 22 million ounces while TOTAL Comex inventories are roughly 7 million ounces with only 1/10th of that standing as "registered" Gold for delivery. A year ago the registered category had over 2.5 million ounces, now it stands at just 707,000 ounces. what will happen if even 1 million ounces stand for delivery? Where will the metal come from? October alone (which is not an historically active delivery month) has 436,000 ounces standing *which is more than half of dealer inventory... December is a more active month so to see 1 million ounces or more standing for delivery would not be a shocker. Where will the metal come from? And then comes February the most active month and one that saw over 40 tons delivered this past year...where does that Gold come from? I ask "where does the Gold come from?" because for a year now Gold has been on a one way street exiting the inventories while very little has entered.

Zero Hedge: So one wonders: with the Spanish housing market deader than ever, and with loan creation that is the worst in the Eurozone, will the modest bounce in employment, which as we explained last week was all driven by a seasonal jump in temp and self-employed workers, just where is Mr. DieselBOOM and the endless ranks of Eurotopians seeing this mythical Spanish recovery, aside from the IBEX of course, which like every other liquidity-bubble dependent indicator is merely reflecting the roughly $3 trillion in annual global liquidity injections by the world's central banks?

Alasdair Macleod (Inflation): How does the rapid expansion of money supply lead to a fall in economic activity? When the money is created it goes first to the very wealthy. They profit from it, and they spend their wealth on prestige real estate, art, and collectibles. By the time the money filters down to the hoi polloi, it has diluted value. The poor are poorer and they spend less. The cost of goods appears higher to the masses, because their currency is being devaluated. Because the masses have less value to spend, they do spend less, and business suffers. Businesses cut cost like laying off workers, and entrepreneurs are not encouraged to start businesses in this environment. If large amounts of new money are being mobilised by a central bank, as is the case today, the transfer of wealth from those who receive the money later to those who get it early will be correspondingly greater.

Bill Holter (Miles Franklin): We are on the verge of isolating ourselves from the rest of the world. I should rephrase that, we are in the process of “being” isolated from and BY the rest of the world because their neighbor has lied to them and been perverted enough to spy on them. The “benefit of the doubt” that has been given to the U.S. since the end of WW II is now nearly no longer. We were the shining light of freedom, the absolute bastion of honesty; we were the most powerful military in the world with production and innovation unrivalled anywhere on the planet. Slowly at first then a little bit quicker and now on a daily basis we display our dishonesty, paranoia, laziness, largesse and weaknesses financially and morally for everyone to see. We tell the world “not to worry,” we will print a new $85 billion per month but this is a “good” thing. We tell the world “not to worry” because our deficits will be smaller, never mind that the Fed is now the buyer of final, last and only resort. “Don’t worry!” When all is said and done, it doesn’t work like this. “Trust” must be earned. “Respect” must be earned. “Admiration” must be earned. We have forgotten one small caveat. Trust, respect and admiration can be lost overnight. They are very easy to lose and quite difficult to regain once lost. We are living in the “past” and on past laurels while the rest of the world is living in the present and now. The only thing standing between “normal” and disaster is the dollar and we are doing everything in every way possible to undermine our own currency. Talk about suicidal!

Tyler Durden: The "no exit" meme has gone mainstream. Now Deutsche Bank says there won't be any tapering and SocGen says QE may be increased. DS: Having tested their detonator device by merely hinting they might taper, the Fed is now content to float the story that QE is off the table. Actually, when the Fed Chairman stands up and says, "Taper!", the elites will be pulling the plug and it will be all over but the shouting...and the shooting...and the starving.

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

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

Quote:

Gold closed down 40 cents to $1352.00 (Comex closing time).

Silver was down 10 cents at $22.50.

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

Gold: $1352.50

Silver: $22.51

Friday, Oct 25th Gold and Silver Action(basis 1:30 PM EST)

https://harveyorgan.blogspot.com/2013/10/oct-28gld-and-slv-remain-constantgold.html

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

In silver:

Quote:

The total silver Comex OI rose by 674 contracts as silver was down in price on Friday ( 18 cents ). The total OI now rests tonight at 117,970 contracts. We are now at extreme lows in OI with respect to silver (and gold) and I believe we can assume that both precious metal contracts are all in strong hands. The non active delivery month of October saw its OI fall by 2 contracts down to 11 contracts. We had 11 notices filed on Friday so in essence we gained 9 contracts or an additional 45,000 oz will stand for delivery. The big December contract saw its OI rose by 194 contracts up to 77,102.

In Gold:

Quote:

The total gold Comex open interest rose today by 46 contracts from 396,956 up to 397,002 as gold rose on Friday by $2.20. We are now in the active delivery month of October and here the OI fell by 27 contracts down to 25. We had 29 notices filed on Friday so in essence we gained 2 contracts or 200 additional oz will be standing in the October delivery month. The biggest of all delivery months is the December contract month. The December OI fell by 2 contracts to 227,039.

Volume

In silver:

Quote:

The estimated volume today was poor coming in at 25,201 contracts.

The confirmed volume on Friday was very good at 40,070.

In gold:

Quote:

The estimated volume today was fair at 120,013 contracts.

The confirmed volume on Friday was better coming in at 128,227.

Inventory Numbers

In silver:

</p> <p>Today, we had good activity inside the silver vaults.</p> <p>We had 0 dealer deposits and 0 dealer withdrawals.</p> <p>We had 1 customer deposit:</p> <p>i) Into Brinks: 600,207.12 oz</p> <p>Total customer deposits: 600,207.12 oz</p> <p>We had 3 customer withdrawal:</p> <p>i) out of CNT: 51,824.620 oz</p> <p>ii) Out of Scotia: 600,067.0000 oz (another nice round number xx.000 ounces)</p> <p>iii) Out of Delaware: 69,498.683</p> <p>Total withdrawals: 721,390.303 oz</p> <p>We had 1 adjustment today</p> <p>i) Out of the Scotia vault: 9690.50 oz was adjusted out of the customer and back into the dealer account at Scotia.</p> <p>Registered (dealer) silver: 44.075 million oz</p> <p>Total of all silver: 166.907 million oz.</p> <p>[quote]</p> <p>In gold:</p> <p>[quote wrote:

We had tiny activity in the Comex gold vaults today.

The dealer had 0 deposits and 0 dealer withdrawals today.

We had 0 customer deposit today:

Total customer deposits: nil oz.

We had 1 customer withdrawal

i) Out of Brinks: 499.12 oz

Total Customer withdrawals: 499.12 oz.

Today we had 0 adjustments.

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

JPM dealer inventory remains constant tonight at 283,004.004: oz or 8.805 tonnes.

JPM customer inventory rises tonight to: 479,563.381 oz or 14.916 tonnes.

Today, 0 notices was issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 1 contract of which 1 notices were stopped (received)by JPMorgan dealer (house account) and 0 notice stopped by JPMorgan customer account. The total dealer Comex gold remains tonight at 707,095.284 oz or 21.99 tonnes of gold. The total of all Comex gold (dealer and customer) remains at 7,154,225.563 oz or 222.52 tonnes.

Tonight, we still have the continuing disturbing piece of news concerning the low dealer gold inventory for our 3 major bullion banks(Scotia, HSBC and JPMorgan). These 3 dealer gold inventory remains tonight at 17.938 tonnes. However we should see massive amount of gold leaves JPMorgan dealer gold to settle the delivery notices filed in October:

i) Scotia: 162,121.611 oz or 5.043 tonnes

ii) HSBC: 131,673.323. oz or 4.09 tonnes

iii) JPMorgan: 283,102.634 oz or 8.805 tonnes

Total: 17.938 tonnes

Brinks dealer account which did have the lion's share of the dealer gold saw its inventory level remains constant tonight at 116,927.48 oz or 3.63 tonnes. A few months ago they had over 13 tonnes of gold at its registered or dealer account.

Delivery Notices

In silver:

Quote:

The CME reported that we had 5 notices filed for 25,000 oz today.

In gold:

Quote:

Today we had 1 notices served upon our longs for 100 oz of gold.

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

In silver:

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

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

In silver:

Quote:

To calculate what will stand for this active delivery month of October, I take the number of contracts served thus for the entire month at 360 x 5,000 oz per contract = 1,800,000 oz from which we add the difference between the OI standing for October (11) minus the notices already served today (5)x 5000 oz to give us 1,830,000 oz standing for the month of October.

In summary:

360 contracts x 5000 oz per contract (served) or 1,800,000 oz + (11 - 5 ) x 5000 oz = 1,830,000 oz

we gained 45,000 additional oz of silver standing in the October contract month.

In gold:

Quote:

In order to calculate what will standing for delivery in October, I take the total number of notices served (4369) x 100 oz per contract to give us 436,900 oz served from which add the difference between the OI standing for October (25) minus the number of contracts served today (1) x 100 oz per contract

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

4369 notices x 100 oz per contracts already served this month or 436,900 oz + (25- 1) x 100 oz = 439,300 or 13.660 tonnes of gold.

We gained 2 contract or an additional 200 oz will stand for delivery in this October delivery month.

This is an absolutely astounding level of gold standing in October as this month is generally a very poor delivery one at that.

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

i) the total dealer inventory of gold remains tonight at a very dangerously low level of only 22.52 tonnes

ii) a) JPMorgan's customer inventory rests tonight at 479,563.381 (14.916 tonnes) This inventory will drop once the notices are filled from the JPMorgan customer account

ii) b) JPMorgan's dealer account rests tonight at 283,004.004 oz but all of that gold and them some is spoken for.

iii) the 3 major bullion banks have collectively only 17.938 tonnes of gold left in their dealer account(JPMorgan, HSBC, Scotia) and no gold is entering the dealer Comex vaults despite October being an active delivery month.

Select Commodity Prices

The Bloomberg Baltic Dry Index (BDI) was 1,619, down 3.11%. WTI December crude was 98.28 up 0.43. Brent crude was 109.16 up 2.23. The spread between Brent and WTI was 10.88 up 1.80. The 30 year US Treasury bond was up 0.0100 at 3.6000. The 10 year T-Note was up 0.0100 at 2.5100. The dollar was up 0.19 at 79.41. The PPT/Dow was 15568.93 down 1.35. Silver closed at 22.51 down 0.09. The GSR was 60.1155 up 0.2527 oz of silver per oz of gold. CIA's Facebook was 50.23 down 1.72 (3.31%). December wheat was down 9.75 at 681.000. December corn was down 9.25 at 430.75. December lean hogs were up 1.525 at 91.950. January feeder cattle were up 0.875 at 166.925. December copper was up 0.000 at 3.269. November natural gas was down 0.138 at 3.569. November coal was down 0.88 at 55.52.

Thank you for reading the Harvey Report!

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

Goooood day!

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

Tue, Oct 29, 2013 - 9:44pm
DayStar
Offline
Joined: Jun 14, 2011
2586
14106

~~Harvey 29 Oct 2013

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

News and Commentary

Harvey: GOFO numbers are now mostly in the negative as gold is now extremely scarce as the boys are finding it harder to find physical. Gold is in backwardation from 1 month out to 3 months out. I guess I was right on the whacking today!! GLD: Gold was unchanged at 872.02 tonnes. SLV: Silver gained 1.927 million oz of silver and closed at 10,502.23 tonnes.

Mark O'Byrne (Gold Core): The leading gold ETF, GLD has been criticised by many analysts for its extremely complex structure and prospectus. There have also been warnings about the possible conflict of interest and overall lack of transparency. If as has been suggested, banks are lending gold into the market that has come from exchange traded funds then this would validate the many concerns raised about the gold ETF market. Questions would again be asked as to whether many of the ETFs are fully backed by the gold that they claim to own in trust on behalf of clients. Already more prudent hedge fund, investment and pension fund managers have liquidated their ETF positions in favour of allocated physical bullion. We would expect that trend to accelerate as prudent investors rightly seek to avoid the high level of counterparty and systemic risk associated with exchange traded gold and other forms of unallocated gold and paper gold.

Glenys Sim & Phoebe Sedgman (Bloomberg): Russia reduced gold reserves for the first time in a year in September and Mexico cut holdings for a 17th straight month, according to the International Monetary Fund. Kazakhstan expanded assets for a 12th month. Reserves in Russia declined about 0.37 metric ton to 1,015.1 tons, data on the IMF’s website showed. Kazakhstan’s holdings expanded 2.52 tons to 137.04 tons, the data showed. Mexico’s lost 0.1 ton to 123.5 tons, the IMF data showed. Turkey’s holding rose 2.9 tons to 490.3 tons in September, increasing for a third month, the data showed. Azerbaijan’s hoard expanded for a ninth month, while Belarus, Kuwait, the Kyrgyz Republic, Serbia, and Ukraine also added to reserves. In August, the Philippines bought, while Mozambique sold, according to the data, which update as countries report.

Mary Anne Aden and Pamela Aden (GoldSeek): Gold demand was stable in October but more important, gold is getting a boost from the weaker U.S. dollar. The U.S. dollar is now clearly bearish, and since gold and the U.S. dollar generally move in opposite directions, this is very bullish for gold. So is the fact the Fed’s QE stimulus is currently expected to continue well into 2014. Plus, gold tends to rise every time Congress raises the U.S. debt ceiling. And with the debt ceiling recently lifted, gold is indeed looking upward. the troubled world we live in is proving plenty of ammunition to say a rise similar to the 1976-80 rise could still be ahead of us. In addition, gold’s leading indicator is currently at a major low area. In other words, gold is bombed out and very oversold, reinforcing the likelihood of an upcoming sustained rise. For now though, we’ll take gold’s renewed upmove one step at a time. Much will tell us the direction over the next month or two. We’re currently in a seasonally strong month for the metals and a rise, even if it’s not a strong leg upward, should continue to be promising.

James Turk (via King World News): It has now been four months since gold and silver made their lows. They are under massive accumulation with the result that they are forming important bases. Downtrends in prices rarely turn on a dime. They form reversal patterns, which is what we see on the current chart. Gold is forming a huge head-and-shoulders base. The right shoulder is deeper than one would normally expect, but I think that distortion is a result of intervention. The central planners are struggling here to keep a lid on gold. One indication of the battle they are waging is the recurring bouts of backwardation. Gold has been backwardated an astounding 62% of the trading days since its low price was reached at the end of June. And even though gold is trading at 5-week highs and has risen $140 since the June low - which by the way is a stunning 33% annualized rate - gold has been backwardated for nearly the past two weeks. The apologists for the central planners are out in full force trying to explain away the backwardation. They have come up with all types of excuses, but they cannot hide the fact that gold continues to flow from West to East, causing a shortage of physical metal and the backwardation. It looks to me that the stage is set for the dollar to collapse. The euro might benefit in the short-term by continuing the uptrend that began several weeks ago, but the only long-term winners will be gold and silver.

William Kaye (via King World News): I have to say my information has resonated over the last several weeks and months very much with what Andrew Maguire has been saying on King World News. I know Maguire’s information is legitimate, and it’s almost entirely consistent with my own sources, and my sources would not necessarily travel in the same circles as Maguire. So, what I can say is that any attempt to impugn Maguire, and the quality of his information is just not something that your readers and your listeners should take seriously. In fact, I would question the motivation behind whoever is doing this. Enquiring minds would ask themselves, ‘What could be the possible motivation here for an attempt to attack a legitimate, highly credible, and important source of information like Maguire, who is clearly well-connected in the industry. I would simply point to the fact that he’s done a remarkable job awakening the investment world as to what’s really happening in the gold market, including the enormous leverage that exists in the paper gold market. This leverage that Maguire is exposing could easily backfire and cause a tremendous spike due to short covering in the price of gold.

William Kaye on India, the LBMA, and Maguire: the Reserve Bank of India was commissioned some time ago to do a study. The point of this study was to advise the government on the options that were available to essentially deter demand for physical gold bullion. One of the options that was looked at very closely by the Reserve Bank of India was actually similar to what goes on at the Comex. In other words, luring Indians into buying paper gold, and as a result, (it would) deflect interest that would otherwise be routed to physical gold. If the contracts were created on an Indian exchange, that would be all the better because in theory it would help solve the current account deficit problem. What’s interesting is there is a Chapter V in this Reserve Bank of India report titled, ‘Dematerialization Of Gold.’ And as you get to the chart under gold-backed instruments in global trends, what you wind up with is a chart that was excerpted right out of CPM’s book from 2011. What the chart shows is the paper claims on gold being approximately 93 to 1 vs physical gold that is available in the same year. This is an astonishing admission. It is also admitted in that report that there was 11.2873 billion ounces of gold as having traded, against an available physical market supply of 120.8 million ounces. Now, to save people from having to do the arithmetic, that’s over 93 to 1. This is one of the things that Maguire has been warning the participants in the gold market about, and it’s also one of the things I’ve been trying to warn people about. So, when someone like Maguire ties this type of evidence into the paper charade that is the LBMA, and correctly points out that it will eventually collapse, he becomes a target by those who would seek to preserve that system for as long as possible, and at any cost. This would of course include Western governments.

Silver Doctors: The reason that every one in the west in involved in currency debasement/ currency manipulation is this: THE ENTIRE WESTERN BANKING SYSTEM IS DEFAULTING!! Yes you read that correctly, the west can no longer pay the piper and now they are going to debase their currencies in order to walk away form their debt obligations, making it easier for them to pay off their debt. While we brace ourselves over the coming charade that a looming February debt limit will bring yet again, you must understand that the US, the EuroZone, Japan and the UK are NOW defaulting together in stealth. The are all highly active in Quantitative Easing a euphemism for printing money. The Ponzi scheme is at an end and the vast amount of debt from unfunded liabilities and gambling debts (derivatives) simply can NOT be serviced. Debasing IS DEFAULT via STEALTH and we ARE DEFAULTING NOW. The Chinese know this that is why they have been dumping our treasuries over the course of the past few years. History has shown that currency wars lead to shooting wars. How the default of America will play out in China and the rest of the countries that hold our debt remains to be seen. You must engage NOW in activities that will protect your wealth and make the choices to ensure your financial health in the greatest transition of wealth in human history. America has a date with destiny and I firmly believe that we will NOT miss that date. It is a mathematical certainty. It is NOT a question of “if” it is “WHEN”.

Josh Eidelson (Salon): Food stamp recipients face a massive benefit cut set to kick in when stimulus funds expire Friday. The nationwide cut “is equivalent to about 16 meals a month for a family of three,” according to a Center on Budget and Policy Priorities analysis using the USDA’s “Thrifty Food Plan.” CBPP called the roughly $5 billion annual cut to the Supplemental Nutrition Assistance Program “unprecedented” in “depth and breadth.” “If you look across the world, riots always begin typically the same way: when people cannot afford to eat food,” Margarette Purvis, the president and CEO of the Food Bank for New York City, told Salon Monday. Purvis said that the looming cut would mean about 76 million meals “that will no longer be on the plates of the poorest families” in NYC alone – a figure that outstrips the total number of meals distributed each year by the Food Bank for New York City, the largest food bank in the country. “There will be an immediate impact,” she said.

Ron Rosen (via King World News): Today the Wall Street Journal in all its glory performed the service of killing off the last of the weak gold bulls with a headline reading, "Gold Fades From Investment Picture". However, stocks look set to plunge and the current situation is similar to that in stock market of 1973-1974. There was an explosion in the price of gold as stocks sank during the brutal bear market in stocks in the 1973-1974 time frame, but gold soared from $35 to a peak of $204. That’s nearly a six-times increase in the price of gold in a very short period of time.

John Embry (via King World News): The West is headed into a historic collapse, and we have all of this misinformation in the mainstream media which is designed to fool people. We are in the middle of the biggest financial bubble in the history of mankind. The Fed and the Bank of Japan are combining for over $150 billion of QE each month. Mario Draghi, head of the ECB has already come out and said they will backstop all European debt. The Chinese are reigniting their bubble because they saw the pain that was created by even the slightest tapering in their monetary stimulus. So, the fact that the mainstream media claims nothing really bad has happened so far is only testimony to the fact that they are throwing all caution to the wind and pumping all the money they can into the system because we are now in a historic end game. We are either going to have a collapse to end all collapses, or we are going to have hyperinflation. I am comfortable that the bottoms are in with regards to both gold and silver. These markets went through some difficult times, even recently, when we had all of these big banks, including Goldman Sachs, calling for gold to go to $1,000. But these large banks have no credibility in these markets at all. The one thing we do know for sure is the mining industry itself has absolutely been crippled by the price levels that are currently in effect. If this (price destruction) were to continue much longer, I think gold production would fall materially. So, I don’t think it’s going to happen. Instead, I firmly believe we are going to have an explosion in the prices of both gold and silver in the not-too-distant future. The fact that virtually everyone is wrong-footed and negative is the perfect sentiment backdrop.

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

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

Quote:

Gold closed down $6.80 cents to $1345.20 (Comex closing time).

Silver was down 4 cents at $22.45.

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

Gold: $1344.30

Silver: $22.52

Monday, Oct 28th Gold and Silver Action(basis 1:30 PM EST)

https://harveyorgan.blogspot.com/2013/10/gld-inventory-remains-firmsilver.html

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

In silver:

Quote:

The total silver Comex OI rose by 674 contracts as silver was down in price yesterday ( 10 cents ). The total OI now rests tonight at 117,970 contracts. We are now at extreme lows in OI with respect to silver (and gold) and I believe we can assume that both precious metal contracts are all in strong hands. The non active delivery month of October saw its OI fall by 2 contracts down to 11 contracts. We had 11 notices filed yesterday so in essence we gained 9 contracts or an additional 45,000 oz will stand for delivery. The big December contract saw its OI rose by 194 contracts up to 77,102.

In Gold:

Quote:

The total gold Comex open interest rose today by 46 contracts from 396,956 up to 397,002 as gold fell yesterday by 40 cents. We are now in the active delivery month of October and here the OI fell by 27 contracts down to 25. We had 29 notices filed yesterday so in essence we gained 2 contracts or 200 additional oz will be standing in the October delivery month. The biggest of all delivery months is the December contract month. The December OI fell by 2 contracts to 227,039.

Volume

In silver:

Quote:

The estimated volume today was poor coming in at 25,201 contracts. The confirmed volume yesterday was very good at 40,070.

In gold:

Quote:

The estimated volume today was fair at 120,013 contracts.

The confirmed volume yesterday was better coming in at 128,227.

Inventory Numbers

In silver:

Quote:

Today, we had tiny activity inside the silver vaults.

we had 0 dealer deposits and 0 dealer withdrawals.

We had 2 customer deposits:

i) Into CNT: 703,797.445 oz

ii) Into Delaware: 2986.400

Total customer deposits: 706,783.845 oz

We had 0 customer withdrawals:

Total withdrawals: nil oz

We had 0 adjustments today

Registered (dealer) silver: 44.075 million oz

Total of all silver: 167.614 million oz.

In gold:

Quote:

We had no activity in the Comex gold vaults today.

The dealer had 0 deposits and 0 dealer withdrawals today.

We had 0 customer deposits today.

Total customer deposits: nil oz.

We had 0 customer withdrawals.

Total Customer withdrawals: nil oz.

Today we had 0 adjustments (only a tiny decimal counting error is recorded, so call it zero adjustments).

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

JPM dealer inventory remains constant tonight at 283,004.004: oz or 8.805 tonnes

JPM customer inventory rises tonight to: 479,563.381 oz or 14.916 tonnes

Today, 13 notices were issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 19 contracts of which 19 notices were stopped (received) by the JPMorgan dealer account (house account) and 0 notices were stopped by the JPMorgan customer account.

The total dealer Comex gold remains tonight at 707,095.284 oz or 21.99 tonnes of gold. The total of all Comex gold (dealer and customer) remains at 7,154,225.563 oz or 222.52 tonnes.

Tonight, we still have the continuing disturbing piece of news concerning the low dealer gold inventory for our 3 major bullion banks (Scotia, HSBC and JPMorgan). These 3 dealers' gold inventory remains tonight at 17.938 tonnes. However, we should see massive amounts of gold leave the JPMorgan dealer gold to settle the delivery notices filed in October:

i) Scotia: 162,121.611 oz or 5.043 tonnes

ii) HSBC: 131,673.323. oz or 4.09 tonnes

iii) JPMorgan: 283,102.634 oz or 8.805 tonnes

Total: 17.938 tonnes

Brinks dealer account which did have the lion's share of the dealer gold saw its inventory level remain constant tonight at 116,927.48 oz or 3.63 tonnes. A few months ago they had over 13 tonnes of gold in their registered or dealer accounts.

Delivery Notices

In silver:

Quote:

The CME reported that we had 10 notices filed for 50,000 oz today.

In gold:

Quote:

Today we had 19 notices served upon our longs for 1900 oz of gold.

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

In silver:

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

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

In silver:

Quote:

To calculate what will stand for this active delivery month of October, I take the number of contracts served thus for the entire month at 370 x 5,000 oz per contract = 1,850,000 oz from which we add the difference between the OI standing for October (12) minus the notices already served today (10) x 5000 oz to give us 1,860,000 oz standing for the month of October.

In summary:

370 contracts x 5000 oz per contract (served) or 1,850,000 oz + (12 - 10) x 5000 oz = 1,860,000 oz

We gained 30,000 additional oz of silver standing in the October contract month.

In gold:

Quote:

In order to calculate what will be standing for delivery in October, I take the total number of notices served (4388) x 100 oz per contract to give us 438,800 oz served from which add the difference between the OI standing for October (24) minus the number of contracts served today (19) x 100 oz per contract

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

4388 notices x 100 oz per contracts already served this month or 438,800 oz + (24- 19) x 100 oz = 434,300 or 13.660 tonnes of gold.

We neither gained nor lost any gold standing for delivery in this October delivery month.

This is an absolutely astounding level of gold standing in October as this month is generally a very poor delivery one at that.

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

i) the total dealer inventory of gold remains tonight at a very dangerously low level of only 22.52 tonnes

ii) a) JPMorgan's customer inventory rests tonight at 479,563.381 (14.916 tonnes) This inventory will drop once the notices are filled from the JPMorgan customer account

ii) b) JPMorgan's dealer account rests tonight at 283,004.004 oz but all of that gold and them some is spoken for.

iii) the 3 major bullion banks (JPMorgan, HSBC, Scotia) have collectively only 17.938 tonnes of gold left in their dealer account, and no gold is entering the dealer Comex vaults despite October being an active delivery month. The fireworks will begin in earnest in December once this huge delivery month is upon us.

Select Commodity Prices

The Bloomberg Baltic Dry Index (BDI) was 1,551, down 4.20%. WTI December crude was 97.56 down 0.72. Brent crude was 109.01 down 0.15. The spread between Brent and WTI was 11.45 up 0.57. The 30 year US Treasury bond was up 0.0200 at 3.6200. The 10 year T-Note was up 0.0000 at 2.5100. The dollar was up 0.21 at 79.62. The PPT/Dow was 15680.35 up 111.42. Silver closed at 22.52 up 0.01. The GSR was 59.6936 down 0.4219 oz of silver per oz of gold. CIA's Facebook was 49.40 down 0.83 (1.65%). December wheat was up 0.25 at 681.250. December corn was up 1.25 at 432.00. December lean hogs were down 0.600 at 91.350. January feeder cattle were down 0.025 at 166.900. December copper was up 0.009 at 3.278. November natural gas was down 0.073 at 3.496. December coal was down 0.13 at 55.78.

Thank you for reading the Harvey Report!

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

Goooood day!

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

Wed, Oct 30, 2013 - 9:48pm
DayStar
Offline
Joined: Jun 14, 2011
2586
14106

~~Harvey 30 Oct 2013

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

News and Commentary

Harvey: Gold is in backwardation from 1 month out to 3 months out. GLD: Gold inventory was unchanged and stands at 872.02 tonnes. SLV: Silver inventory was unchanged and stands at 10,502.23.

Richard Russell (via King World News): My feeling is that buying gold just off the current base will work out. And the risk of substantially lower prices is minimal. As I write, gold is in the process of enlarging its already impressive base. I continue to like the action of gold, now well above its red trendline. Remember that patience is key. Despite flagrant technical discrepancies, the markets are following the lead of the Fed, and it appears that as long as the Fed pours on the QE, the stock markets will follow. In the meantime, gold continues its climb out of its huge base formation. As I see it, as far as holding stocks or gold, the greater risk lies in stocks. Watch for China to buy US assets as fast as they politically can. In the meantime, China is intent on amassing the world’s largest hoard of gold. The Golden Rule; “He who holds the gold makes the rules.” KWN Note: There is no question that China and their threat to US global dominance is what has the United States and its leaders truly terrified. It is now a global game of chess and cyberwarfare, and there is no question that the Chinese are beginning to dominate the US at this key moment in world history.

Stephen Leeb (via King World News): “People don’t completely understand this because the stock market is on the move, but the reality is that the US is in a great deal of danger. There is a ‘black swan’ out there than could very easily destroy the US dollar and collapse the United States. The Fed’s balance sheet is now close to $4 trillion. What is going to happen if all of the sudden there is an interest rate shock? At some point, China can and probably will declare war on the US dollar and destroy it when they are ready. The way to begin that war would be to instigate an interest rate shock in the US. If China were to shock the West by coming together with Japan, when the time is right, they could wreak havoc with the US bond market as well as the US dollar. The chaos of the Chinese declaring war on the dollar could quite possibly collapse the currency altogether.

Mark O'Byrne (GoldCore): Gold prices in China closed lower than global prices yesterday for the first time this year. This may be due to a slight decrease in demand in recent days. There was also speculation that this was due to fears of a credit tightening and the possibility of a credit crisis in China. Indian premiums stayed near record highs at $130 per ounce due to a supply crunch and supply shortages. Hedge funds and money managers raised bullish bets in futures and options of U.S. gold and silver markets for the week ended October 8, the latest report by the Commodity Futures Trading Commission (CFTC) showed. More savvy trend following speculators are getting long gold again in anticipation of higher prices. USA Mint silver eagle bullion sales are heading for a record 40 million year to date, but the Mint only sold 5,000 oz of gold coins so far in October. The USA only produces 33 million oz of silver and thus the mint must import the remaining silver. Silver remains undervalued from a long term, historical, inflation adjusted perspective. Our long held belief that silver could reach the record 1980 high in real terms, inflation adjusted, if $140/oz remains. Immediate support is at the $18/oz to $20/oz level (see charts) and store of value buyers should continue to accumulate on this dip.

John Rubino (Dollar Collapse): A Tale of Two Charts: Are We 2007 America or 2006 Zimbabwe? The US equity markets are back in record territory, at least in nominal terms. The last two times they spiked this way, the following year was pretty brutal. when investors are optimistic enough to use leverage to invest in already-risky stocks, then the good times have pretty much run their course and something nasty is imminent. If recent history is our guide, it is now time to either take some money off the table or short the hell out of the big indexes – or whatever else you like to do when the market looks overbought. But this conclusion is only valid if we’re in the same stage of the credit bubble as during those two previous sentiment peaks. In 2000 and 2007, to take just one measure of financial stability, the federal government’s debt was $6 trillion and $8 trillion, respectively, versus $17 trillion today. Plenty of other leverage metrics are also way up, indicating that the US is much further down the path of currency debasement than it was just a few years ago. So the question becomes: at what point does a quantitative difference become qualitative? When does the phase change occur? In the early stages of Zimbabwe’s epic hyperinflation its stock market rose from 2,000 to over 40,000 in one year. Presumably a lot of indicators similar to margin debt were by then pointing to a blow-off top and screaming “sell” to students of history.

Michael Snyder (The Economic Collapse): If you believe that there is high inflation in the United States, you are just imagining things. That is the message that the U.S. government and the Federal Reserve would have us to believe. You might have noticed that the government announced on Wednesday that the cost of living increase for Social Security beneficiaries will only be 1.5 percent next year. This is one of the smallest cost of living increases that we have ever seen. The federal government is able to get away with this because the official numbers say that there is hardly any inflation in the U.S. right now. Of course anyone that shops for groceries or that pays bills regularly knows what a load of nonsense the official inflation rate is. The U.S. government has changed the way that inflation is calculated numerous times since 1978, and each time it has been changed the goal has been to make inflation appear to be even lower. According to John Williams of shadowstats.com, if the inflation rate was still calculated the same way that it was back when Jimmy Carter was president, the official rate of inflation would be somewhere between 8 and 10 percent today. But if the mainstream news actually reported such a number, everyone would be screaming and yelling about getting inflation under control. Instead, the super low number that gets put out to the public makes it look like the Federal Reserve has plenty of room to do even more reckless money printing. It is a giant scam, but most Americans are falling for it. Meanwhile, the prices of the things that most Americans buy on a regular basis just keep going up.

Elliot Paul Singer (Zero Hedge): The recent trading environment has felt something like walking into a place and having a sense that something is wrong and dangerous but not knowing exactly what will happen or when. “QE Infinity” has so distorted the prices of stocks and bonds that nobody can possibly determine what the investing landscape would look like, or what the condition of the economy and financial system would be, in the absence of Fed bond-buying.” In his latest letter to investment partners, the outspoken realist pulls the curtain on everything from loss of faith on fiat currencies to unsound policies such as Obamacare, the missing jobs recovery, and media misunderstandings of the nature of hedge funds. On The Fed’s “temporary” effects on bonds and stocks: The volatility in fixed income markets earlier this year, occasioned by the Fed’s use of the word “tapering” (meaning a possible gradual reduction in the pace of Fed bond buying), resulted in medium- and long-term interest rates rising back to the levels of the spring of 2009. In other words, $3.8 trillion of bond-buying since 2008 by the Fed has had only a temporary effect on medium- and long-term interest rates. It is impossible to predict the prices of bonds in the event the Fed stops buying, or actually starts to sell off its massive portfolio, although it is a decent bet that prices would be much lower than current levels.

Ambrose Evans-Pritchard (The Telegraph, London): If you think there is far too much money sloshing through the global financial system and causing unstable asset booms, you are not alone. A new report by JP Morgan says the bank's measure of excess global money supply has reached an all-time high. "The current episode of excess liquidity, which began in May 2012, appears to have been the most extreme ever in terms of its magnitude," said the report, written by Nikolaos Panigirtzoglu and Matthew Lehmann from the bank's global asset allocation team. They said the latest surge is far beyond anything seen in the last three episodes of excess liquidity: 1993-1995, 2001-2006, and during the Lehman emergency response from October 2008 to September 2010, all of which set off a blistering rise in asset prices. This is not a problem right now. The bank says there is enough juice to keep the boom going for several more months, but it stores up bigger problems for later. "It could be a warning if fundamentals are out of whack. Markets could be vulnerable next year if that liquidity starts to disappear," said Mr Panigirtzoglu. DS: My belief is the Fed will pull the plug in 2014. I think 2014 will be epic. The Fed will say, "Taper!", and Katie will be busy barring the door.

Zero Hedge: It is not rocket science that the only reason why China is growing at its current pace is because it is once again injecting a record amount of liquidity into the system, and if the credit spigot is open, the country grows; if it's shut - it stagnates. A far bigger problem is that while China's debt is already at record levels, it needs an increasingly greater "credit impulse" to generate the same or smaller amount of GDP "growth" as before. [DS: The debt junkie needs a bigger fix to get the same hit as last time.] A key issue is that the price discovery process of insolvent entities in China is simply non-existent.

Bill Holter (Miles Franklin): The Fed has been "juicing" the economy full blast for 5 years with the 3 very short exceptions (the end of one QE until the beginning of the next). We also know that the economy has not responded to any of these outsized blasts of juice. We also know that this "juice" is made up of Dollars and the more Dollars that are introduced into the system "dilutes" the already existing Dollars in the system. This dilution is seen by the currency depreciating in value and thus the "cost" of goods rising (inflation effects) by requiring more Dollars to purchase the same amount of goods over time. I wanted to show you exactly why you had considered selling, actually did sell, or are thinking of selling your Dollars and replacing them with a "better money", Gold and Silver. I also want those who purchased Gold and Silver at higher prices (and maybe feel badly now) to see that no matter what price you have already paid, it was below "true value" and that sooner or later the metals will reflect this and follow the "juice" chart parabolically. Virtually all of the "wealth" that parked itself in paper currencies will accrue back to where they belonged all along. This is a very simple concept and I hope that whenever you question the wisdom of Gold and Silver that you will refer back to the above chart, it speaks volumes without words. The easiest exercise in the world would be turning the money supply chart upside down...this will visually show you the crude "worth" of Dollars.

Zero Hedge: The FOMC meeting basically states that QE will remain at the 85 billion USA mark. It is interesting to note that the total purchases by the Fed in the latest 12 month calendar is 1.02 trillion USA dollars. The USA has a deficit this year of around 700 billion. The USA is monetizing 300 billion USA more than it needs to fund the deficit.

Harvey: The private ADP report shows a huge miss in payrolls and are now at their lowest level since April.

Greg Hunter (USAWatchdog.com): Jim Sinclair says financial calamity is just around the corner for America. Sinclair contends,“We are facing the annihilation of currency. We are facing the shift of America as the leading and most influential nation of the world to some form of banana republic.... If it wasn’t for food stamps, we would be facing long lines of people waiting for free food.” For gold, everything hinges on the U.S. dollar, and Sinclair says, “I think the dollar gets hammered. I believe we are headed for hyperinflation.” One of the many black swans, according to Sinclair, is the possible abandonment of the U.S. dollar by Saudi Arabia. If Saudi Arabia stopped selling oil only in U.S. dollars, what would that do to the buying power of the buck? Sinclair says gasoline would be “$10 a gallon very soon, without a doubt.”

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

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

Quote:

Gold closed up $3.80 cents to $1349.20 (Comex closing time).

Silver was up 53 cents at $22.98.

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

Gold: $1344.30

Silver: $22.52

Tuesday, Oct 29th Gold and Silver Action(basis 1:30 PM EST)

https://harveyorgan.blogspot.com/2013/10/oct-30gld-remains-constantslv-remains.html

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

In silver:

Quote:

The total silver Comex OI rose by 245 contracts as silver was down in price yesterday ( 4 cents ). The total OI now rests tonight at 117,922 contracts. We are now at extreme lows in OI with respect to silver (and gold) and I believe we can assume that both precious metal contracts are all in strong hands. The non active delivery month of October is now off the board. The next non active front month for silver is November and here the OI gained 2 contracts up to 51. The big December contract saw its OI fall by 920 contracts down to 75,663.

In Gold:

Quote:

The total gold Comex open interest fell today by 10,917 contracts from 397,978 up to 387,161 as gold fell yesterday by $6.80. We have now ended the active delivery month of October as we head into the non active delivery month of November. The October month is now off the board. The November front month saw it's OI fall from 111 down to 56 for a loss of 56 contracts. The biggest of all delivery months is the December contract month. The December OI fell by 14,779 contracts to 210,712.

Volume

In silver:

Quote:

The estimated volume today was fair coming in at 34,767 contracts.

The confirmed volume yesterday was also fair at 33,429.

In gold:

Quote:

The estimated volume today was poor at 102,667 contracts.

The confirmed volume yesterday was better coming in at 143,315.

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: 600,000.700 oz

ii) Into Brinks: 300,796.96 oz

Total customer deposits: 900,796.96 oz.

We had 0 customer withdrawals:

Total withdrawals: nil oz.

We had 0 adjustments today.

Registered (dealer) silver: 44.075 million oz

Total of all silver: 168.515 million oz.

In gold:

Quote:

We had no activity in the Comex gold vaults today.

The dealer had 0 deposits and 0 dealer withdrawals today.

We had 0 customer deposits today.

Total customer deposits: nil oz

We had 0 customer withdrawals.

Total Customer withdrawals: nil oz.

Today we had 0 adjustments.

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

JPM dealer inventory remains constant tonight at 283,004.004: oz or 8.805 tonnes

JPM customer inventory rises tonight to: 479,563.381 oz or 14.916 tonnes

Today, 0 notices was issued from the JPMorgan dealer account and 5 notices were issued from their client or customer account. The total of all issuance by all participants equates to 5 contracts of which 5 notices were stopped (received) by JPMorgan dealer (house account) and 0 notices were stopped by the JPMorgan customer account.

The total dealer Comex gold remains tonight at 707,095.284 oz or 21.99 tonnes of gold. The total of all Comex gold (dealer and customer) remains at 7,154,225.563 oz or 222.52 tonnes.

Tonight, we still have the continuing disturbing piece of news concerning the low dealer gold inventory for our 3 major bullion banks (Scotia, HSBC and JPMorgan). These 3 dealers' gold inventory remains tonight at 17.938 tonnes. However, we should see massive amounts of gold leave the JPMorgan dealer gold to settle the delivery notices filed in October:

i) Scotia: 162,121.611 oz or 5.043 tonnes

ii) HSBC: 131,673.323. oz or 4.09 tonnes

iii) JPMorgan: 283,102.634 oz or 8.805 tonnes

Total: 17.938 tonnes

Brinks dealer account which did have the lion's share of the dealer gold saw its inventory level remain constant tonight at 116,927.48 oz or 3.63 tonnes. A few months ago they had over 13 tonnes of gold in their registered or dealer accounts.

Delivery Notices

In silver:

Quote:

The CME reported that we had 12 notices filed for 60,000 oz today.

In gold:

Quote:

Today we had 5 notices served upon our longs for 500 oz of gold.

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

In silver:

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

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

In silver:

Quote:

To calculate what will stand for this active delivery month of October, I take the number of contracts served for the entire month at 382 x 5,000 oz per contract = 1,910,000 oz

Thus the final standings for silver in the month of October is 1,910,000 oz.

In gold:

Quote:

The October contract went off the board last night and thus we can finalize the amount of gold standing.

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

4393 notices x 100 oz per contracts totally served this month or 439,300 oz or 13.66 tonnes

This is an absolutely astounding level of gold standing in October as this month is generally a very poor delivery one at that.

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

i) the total dealer inventory of gold remains tonight at a very dangerously low level of only 22.52 tonnes

ii) a) JPMorgan's customer inventory rests tonight at 479,563.381 (14.916 tonnes) This inventory will drop once the notices are filled from the JPMorgan customer account

ii) b) JPMorgan's dealer account rests tonight at 283,004.004 oz but all of that gold and them some is spoken for.

iii) the 3 major bullion banks (JPMorgan, HSBC, Scotia) have collectively only 17.938 tonnes of gold left in their dealer account, and no gold is entering the dealer Comex vaults despite October being an active delivery month. The fireworks will begin in earnest in December once this huge delivery month is upon us.

Select Commodity Prices

The Bloomberg Baltic Dry Index (BDI) was 1,484, down 4.32%. WTI December crude was 96.48 down 1.08. Brent crude was 109.86 up 0.85. The spread between Brent and WTI was 13.38 up 1.93. The 30 year US Treasury bond was up 0.0100 at 3.6300. The 10 year T-Note was up 0.0200 at 2.5300. The dollar was up 0.15 at 79.77. The PPT/Dow was 15618.76 down 61.59. Silver closed at 22.74 up 0.22. The GSR was 59.0545 down 0.6391 oz of silver per oz of gold. CIA's Facebook was 49.01 down 0.39 (0.79%). December wheat was down 6.25 at 675.000. December corn was down 1.75 at 430.25. December lean hogs were down 0.950 at 90.400. January feeder cattle were down 2.100 at 164.800. December copper was up 0.048 at 3.326. November natural gas was up 0.000 at 3.496. December caol was down 0.14 at 55.64.

Thank you for reading the Harvey Report!

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

Goooood day!

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

Thu, Oct 31, 2013 - 9:38pm
DayStar
Offline
Joined: Jun 14, 2011
2586
14106

~~Harvey 31 Oct 2011

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

News and Commentary

Harvey: First day notice for both the gold and silver non active November month is today. The gangsters generally hit gold and silver right after options expiry on both metals usually 4 days before first day notice. This is done to convince those exercising for a futures contract from taking delivery on that contract. Gold is in backwardation from 1 month out to 3 months out. GLD: Gold is unchanged at 872.02. this is now the 4th straight day of no gold inventory movement out of the GLD. I may be wrong, Ladies and Gentlemen but I think we hit rock bottom on the physical gold. I believe now that much of the paper 872.02 tonnes are nothing but paper obligations. SLV: Silver was unchanged at 10,502.23.

Mark O'Byrne (GoldCore): Department are probing the manipulation of foreign exchange rates. The investigation began examining the traders’ use of an instant-message group. The roster of banks in the group changed as the men moved firms and also included Barclays Plc, Royal Bank of Scotland Group Plc and UBS AG.

The five firms account for about 47% of the massive foreign exchange market. Two other traders, who weren’t part of the conversations and who asked to not be identified because they do business with those involved, said that they and others in the market referred to the message group as “The Cartel.” Despite a slight drop in physical demand from China in recent days, physical gold demand remains robust in India, the Middle East and amongst coin buyers in western markets. Demand for gold in the Middle East remains robust and there has been an eightfold increase or 700% increase in demand in recent years. Geopolitical uncertainty in the region, from Libya to Egypt to Syria and Iraq and Iran is leading to demand for bullion.

GoldCore on Dubai gold exchange: Thus, the Dubai Gold & Commodities Exchange plans to list a spot gold contract in the second quarter of next year. The bourse, which offers gold and silver futures, is talking to local merchants and industry organizations and aims to get regulatory approval for the product by early 2014, Chief Executive Officer Gary Anderson toldBloomberg. Demand for bullion in Dubai expanded eightfold in the last six to 10 years, he told Bloomberg. Dubai accounts for about 25% of global physical gold trade and the United Arab Emirates will grow as a precious metals trading hub partly because of its location near the largest consuming nations, according to the Dubai Multi Commodities Centre, which owns a majority stake in the DGCX. The size of the spot gold contract will probably be 1 kilogram (32 ounces). While there are “no concrete plans” yet for other precious metals products, a silver spot contract and platinum and palladium contracts may be possible in the future, Anderson said.

Bloomberg: Sales of gold coins and bars recovered in October, figures from two of the world’s leading mints show, suggesting physical buyers remain robust despite bullion's 20% fall this year. While overall volumes remain well below this year's peak, they are on track for a very robust year that will be close to or surpass levels seen in 2011. Gold has fallen out of favour with speculators and some investors on expectations that the Federal Reserve will soon start scaling back its money printing programme. However, data regarding physical demand from Asia and mints around the world, shows that store of wealth demand remains very robust and physical buyers are using price weakness to keep accumulating bullion. Australia's Perth Mint gold sales – including the iconic Australian kangaroo coin series – up to October 25 reached 75,040 troy ounces, according to preliminary numbers obtained by CNBC. They are on track for a near 10% month on month gain from 68,488 ounces in September. Perth Mint gold sales surged to a record in April this year after the peculiar ‘flash crash’ that saw gold plummet in minutes due to a massive bout of concentrated selling on the Comex. April sales surged to over 111,505 ounces which was more than double the sales in March. Smart money accumulated on the dip, again.

GoldCore: Sales of American Eagle gold coins more than tripled on month in October to 46,500 ounces. While they remain well off the 209,500 ounce high recorded in April, according to daily updated numbers obtained from the U.S. Mint's website, they are also on track for another good year. April represented a banner month for sales in both the Perth Mint and the U.S. Mint after buyers jumped at the opportunity to accumulate gold coins, following gold's biggest ever one day loss on April 15, when it tumbled $125. The concentrated selling on the Comex precipitated the month's sharpest decline since December 2011 and led to further allegations of manipulation of gold prices by Wall Street banks. Physical demand from store of wealth buyers in Asia and internationally who continue to ‘stack’ or gradually accumulate physical coins and bars is supporting gold and silver at these levels and should contribute to higher prices in the coming months. Gold is down 20.2% year to date but has advanced 14% since reaching a 34 month low in June as lower prices led to increased demand for gold jewelry, bars and coins, particularly in Asia.

Bill Murphy (GATA): I am extremely bullish on silver. I think that JPM borrowed supply from the future. Last year for example, there were all kind of premiums, and nobody could explain it. I mean it looked like the market at $32 was going to take off, and everyone was reporting the same thing. I have a theory that [JP] Morgan went out and tied up all the supply, created the premiums, and then went heavily short by buying puts in the futures market. They loaded up on the shorts side at the beginning of this year, dropped the price from $35 to $32 and then down to $18. I think that supply has been used up. It’s just a guess, but I think that the real surprise this year is that gold and silver, and especially silver, explodes out of nowhere.

Koos Jansen (In Gold We Trust): At the LBMA conference in Rome earlier this month there were a number of representatives from central banks that gave an interesting speeches that were bullish on gold. Salvatore Rossi, Italy said, "Not only does it [gold] have essential characteristics that allow for diversification, particularly in financial markets that have been largely globalized, but it is also unique among assets because it is not issued by a government or central bank, which means that its value can not be influenced by political decisions or the solvency of an institution or another,..These features, combined with historical factors and psychological stress the importance of gold as part of the reserves of central banks. Gold supports the independence of central banks in their ability to act as the ultimate guarantor of national financial stability." Reuters followed with this: "Other European central banks including the Bank of France and the Bundesbank said at the conference that they will not sell their gold reserves, as they can provide a level of confidence, an element of diversification and can absorb some volatility from the central bank's balance sheet." Finally, we have a comment from Alexandre Gautier of France who said, "We have no plan to sell gold. We are still active in the lending market, but not retail loans. We can see some yields that are attractive, but we realize that we can't lend gold without collateral."

Greg Hunter (Silver Doctors): According to gold expert Jim Sinclair of JSMineset.com who predicted at sub-$300 gold in 2000 that gold would trade at $1650 by 2011, is now stating that by 2016, “Gold will be $3,200 to $3,500 an ounce.“ By 2020, Sinclair predicts, “Emancipated gold will be $50,000 per ounce.“ As far as gold confiscation goes, Sinclair says that Its not going to happen, but a windfall tax could definitely be in the cards.

Michael Snyder (The Economic Collapse): The unemployment rate in the eurozone is higher than it has ever been before. This week we learned that eurozone unemployment came in at an all-time high of 12.2 percent for September. Back in January 2012, it was sitting at just 10.4 percent. So anyone that believes that “things are getting better” in Europe is just being delusional. In fact, the economic depression in Europe just keeps getting deeper. The funny thing is that the mainstream media will barely call what is going on in Europe a “recession” even though the unemployment rates in both Spain and Greece are now much higher than anything that the United States ever experienced during the “Great Depression” of the 1930s. There haven’t been as many headlines about the financial crisis in Europe lately because the ECB has been papering over the debt problems of the periphery (at least for the moment), but the economic conditions on the ground for average Europeans just continue to get even worse. Later on in this article, you will read about a 25-year-old Spanish man with three college degrees that moved to London in a desperate search for a job who is now cleaning up poop for a living. The economic collapse of Europe continues to march on, and there is no end in sight. All you have to do is look at the latest unemployment numbers to realize that things are getting worse in Europe.

Jim Sinclair (via Economic Collapse Blog from SHTFPlan): While most economists and market analysts jump on the mainstream bandwagon by supporting the deception, one contrarian who has never touted the party line is Jim Sinclair of JS mineset. He’s been accurately forecasting trends and market movements, especially precious metals, for nearly four decades, so he knows a thing or two about public perception, market confidence, and the reality of economic fundamentals. In his latest interview with USA Watchdog, Sinclair warns that the bottom could fall out at anytime, and the effects will be nothing short of devastating. Whether you’re goal is to protect your wealth from the continued destruction of our currency, or if it’s to insulate your family from an event that could threaten our food supplies or the normal flow of commerce, now is the time to prepare for the real possibility of an ‘event’ so serious that it will leave the majority of our populace scrambling once it happens. And as Jim Sinclair notes, it will happen… maybe even tomorrow. How do we know that tomorrow isn’t the day? Or the day after? We have so many things wrong in the economy… so many holes in the dike… so many fingers stuck in the dike to try and keep it functioning… that any one of those could create what, ten, twenty, thirty events that could create significant loss of confidence. Nothing has changed. It has gotten worse. Derivatives haven’t gone away, they’ve grown. Debt hasn’t gone away, it has gone up exponentially. there is no argument that says the dollar is entering into a period of strength. The U.S. economy, at best, is a straight line with a slight uptrend… but very slight… very fragile… very easily derailed… All of which affects confidence. We’re facing the annihilation of currency.

Haaretz: Israeli warplanes attacked Syrian military base in Syrian port city of Latakia. The strike hits Russian missiles shipment in Syrian port city of Latakia!! Reuters quoted a Syrian opposition source as saying that the Israeli planes had struck a strategic missile battery near a village called Ain Shikak where President Bashar al-Assad’s forces kept long-range Russian missiles that are among their most powerful weapons. Other sources said the strike targeted a shipment of Russian SA-8 surface-to-air missile shipment destined for Hezbollah and that the two targets were destroyed.missiles and related equipment Israeli intelligence estimated were to be transferred to Hezbollah. In addition to striking Latakia, the Saudi-owned news outlet Al-Arabiya said, Israeli planes had also staged an attack in Damascus on Wednesday.

Bill Holter (Miles Franklin): If you knew…ahead of time that your plane was going to crash, what is the one thing that you’d do? Would you get your affairs in order? Would you party like its 1929? Would you ignore the foreknowledge and just step onto the plane? If others were warning you ahead of time would you think of them as nut cases even though you knew that something bad was going to happen? If you had no choice but to get on the airplane, you would pack a parachute. But what if a parachute costs $1,300 and you could have bought one 10 years ago for $300? Would you decide not to buy one because “it’s just too expensive?” Does it really matter how much a parachute costs as long as it opens when you need it? I know that anyone who reads the goofy analogy above “gets it”… but some just can’t bring themselves to believe it. I wrote this because it IS just this simple. The plane IS mathematically going to crash. Anyone on the plane when it crashes will die an instantaneous death. Your only escape is to have a parachute. A paper receipt that says you “own one” won’t do however because as the plane is going down and you jump from the door, nothing other than a real parachute will open and slow your descent to safety. Supposedly “owning one” doesn’t work under real world situations.

Paul Singer (Elliott Management): What is happening in Detroit – a combination of poor and corrupt civic leadership, shortsighted business leaders and overreaching labor unions – is interesting because it was 40 years in the making, but just months in the denouement. It turns out that Chapter 9 of the Bankruptcy Code gives judges tremendous leeway to chop obligations quickly and severely, regardless of the expectations of pension-holders and bondholders. We see Detroit as the “coming attraction” to a significant number of municipal insolvencies in the months and years to come. Perhaps the pain of the restructurings will improve the behavior of city governments, labor groups and businesses, and perhaps it won’t. But there is no question that this episode is a precursor to what will happen on the federal level as national promises prove to be empty.

Tyler Durden: Now that an October taper is out of the question, bored investors, in a world in which fundamentals no longer matter, are looking forward to the next possible FOMC meetings and potential taper announcement dates, with three specific dates sticking out: December/January, which are really one cluster, and June, as possible announcement dates. Why are these dates important: because while a September tapering announcement would have resulted in a $4 trillion final Fed balance sheet (assuming the tapering proceeded to a full QE halt) before even more QE was unleashed, any subsequent taper dates imply a nice round number to the final Fed balance sheet at the end of 2014: either $4.5 trillion, assuming a January 2014 taper, or $5 trillion if the Fed waits until June to announce a tapering.

Michael J. Kosares (USAGold): The Chinese government is encouraging the people to buy gold for three reasons: Number one, it soaks up capital that would otherwise flow into bubble markets like real estate and equities. Number two, gold provides a strong base in case of inflation or other economic chaos. This provides stability and lowers the chances for civil unrest if there are economic problems. Number three, if the people would sell it back, it gives the PBOC [Peoples Bank of China, its central bank] a way to increase its reserves by stealth. Remember the PBOC is very secretive about their gold reserves. It buys a huge amount of gold off books using proxies, so it can keep it reserve numbers hidden. This is very Chinese if you understand the Chinese mindset. The next time they will report on their reserves it will be 3000 tons, probably higher.

Karen Hudes (formerly of the World Bank): A very good study was done by three systems theorists at the Swiss Federal Institute of Technology in Zurich, ranked as the best university in continental Europe. What they did was examine the interlocking ownership of the world’s 43,000 transnational corporations using mathematical modeling tools. This study showed that a small group respectively “super-entity” of 147 financial institutions and multinational corporations is pretty much in control of the world economy. It's whoever is behind that group which is in control of 1 percent of the investments but that 1 percent through corporate interlocking directorships is now in control of 40 percent of the assets and 60 percent of the revenues of this set of 43,060 transnational companies. See Stefania Vitali, James B. Glattfelder, and Stefano Battiston: “The network of global corporate control“, ETH Zurich, published September 2011 available here:https://arxiv.org/PS_cache/arxiv/pdf/1107/1107.5728v2.pdf. She said the cabal controls most of the world's gold and it is unreported. They are not using it to control the price, but are using naked shorting instead. She said proof that the gold exists was given by cabalist David Wynn Miller, a 92nd degree Mason https://www.youtube.com/watch?v=WfLkCHJuSpk (Vista previa) and cabalist Lord James Blackheath, a member of the House of Lords https://www.youtube.com/watch?v=l67HCjdXMEg (Vista previa) both referred to 750,000 thousand metric tonnes of gold in existence in the world that is unreported by the World Gold Council. She provided photos attached to her article that showed again the WWII US Treasury Notes the Treasury has refused to honor, and these are evidence of vast amounts of gold confiscated by the US and kept in Hawaii. A large quantity was also buried, reputedly in the Philippines. https://www.silvertardsweride.com/2013/10/my-interview-to-karen-hudes-world-bank.html

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

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

Quote:

Gold closed down $25.40 cents to $1326.60 (Comex closing time).

Silver was down $1.15 cents at $21.83.

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

Gold: $1322.80

Silver: $21.91

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

https://harveyorgan.blogspot.com/2013/10/again-no-change-in-gld-and-slv.html

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

In silver:

Quote:

The total silver Comex OI rose by 1024 contracts as silver was up in price yesterday ( 53 cents ). The total OI now rests tonight at 118,946 contracts. We are now seeing the OI with respect to silver and gold rise slowly and I believe we can assume that both precious metal contracts are all in strong hands. The non active delivery month of October is now off the board. The next non active front month for silver is November and here the OI gained 15 contracts up to 66. The big December contract saw its OI rise by 418 contracts up to 76,081.

In Gold:

Quote:

The total gold Comex open interest rose today by 2,110 contracts from 387,161 up to 389,271 as gold rose yesterday by $3.80 . We have now ended the active delivery month of October as we head into the non active delivery month of November. The October month is now off the board. The November front month saw it's OI fall from 56 down to 33 for a loss of 23 contracts. The biggest of all delivery months is the December contract month. The December OI fell by 2,695 contracts to 208,017.

Volume

In silver:

Quote:

The estimated volume today was excellent coming in at 47,989 contracts.

The confirmed volume yesterday was also excellent at 55,688.

In gold:

Quote:

The estimated volume today was fair at 141,415 contracts.

The confirmed volume yesterday was better coming in at 166,729.

Inventory Numbers

In silver:

Quote:

Today, we had good activity inside the silver vaults.

We had 1 dealer deposit and 0 dealer withdrawals:

i) Into CNT: 30,749.90 oz.

We had 2 customer deposits:

i) Into CNT: 569,742.90 oz

ii) Into JPM: 539,868.10 oz

Total customer deposits: 1,109,671.000 oz

* I have been noticing that many of the deposits and many of the withdrawals in silver are in the 500,000 oz range. I have been noticing this for the past few years. It is quite strange.

We had 0 customer withdrawals:

Total withdrawals: nil oz

We had 1 adjustment today:

i) from the CNT vault: 160,382.710 oz was adjusted out of the customer and this landed into the dealer at CNT.

Registered (dealer) silver: 44.266 million oz

Total of all silver: 169.011 million oz.

In gold:

Quote:

We had no activity in the Comex gold vaults today and this is the third day in a row that we had zero activity...very strange indeed!!

We had no activity in the Comex gold vaults today.

The dealer had 0 deposits and 0 dealer withdrawals today.

We had 0 customer deposits today.

Total customer deposits: nil oz

We had 0 customer withdrawals.

Total Customer withdrawals: nil oz.

Today we had 0 adjustments.

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

JPM dealer inventory remains constant tonight at 283,004.004: oz or 8.805 tonnes

JPM customer inventory rises tonight to: 479,563.381 oz or 14.916 tonnes

Today, 0 notices was issued from the JPMorgan dealer account and 5 notices were issued from their client or

customer account. The total of all issuance by all participants equates to 5 contracts of which 5 notices

were stopped (received) by JPMorgan dealer (house account) and 0 notices were stopped by the JPMorgan

customer account.

The total dealer Comex gold remains tonight at 707,095.284 oz or 21.99 tonnes of gold. The total of all

Comex gold (dealer and customer) remains at 7,154,225.563 oz or 222.52 tonnes.

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

our 3 major bullion banks (Scotia, HSBC and JPMorgan). These 3 dealers' gold inventory remains tonight at

17.938 tonnes. However, we should see massive amounts of gold leave the JPMorgan dealer gold to settle the

delivery notices filed in October:

i) Scotia: 162,121.611 oz or 5.043 tonnes

ii) HSBC: 131,673.323. oz or 4.09 tonnes

iii) JPMorgan: 283,102.634 oz or 8.805 tonnes

Total: 17.938 tonnes

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

constant tonight at 116,927.48 oz or 3.63 tonnes. A few months ago they had over 13 tonnes of gold in their

registered or dealer accounts.

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

i) the total dealer inventory of gold remains tonight at a very dangerously low level of only 22.52 tonnes

ii) a) JPMorgan's customer inventory rests tonight at 479,563.381 (14.916 tonnes) This inventory will drop

once the notices are filled from the JPMorgan customer account

ii) b) JPMorgan's dealer account rests tonight at 283,004.004 oz but all of that gold and them some is

spoken for.

iii) the 3 major bullion banks (JPMorgan, HSBC, Scotia) have collectively only 17.938 tonnes of gold left in

their dealer account, and no gold is entering the dealer Comex vaults despite October being an active

delivery month. The fireworks will begin in earnest in December once this huge delivery month is upon us.

Delivery Notices

In silver:

Quote:

The CME reported that we had 53 notices filed for 265,000 oz today.

In gold:

Quote:

Today we had 0 notices served upon our longs for nil oz of gold.

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

In silver:

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

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

In silver:

Quote:

To calculate what will stand for this active delivery month of October, I take the number of contracts served for the entire month [which was] at 53 x 5,000 oz per contract = 265,000 oz from which we add the difference between the OI standing for November (66) minus the notices already served today (53) x 5000 oz to give us 310,000 oz standing for the month of November.

In summary:

53 contracts x 5000 oz per contract (served) or 265,000 oz + (66 - 53) x 5000 oz = 310,000 oz [remaining to be served]

In gold:

Quote:

In order to calculate what will standing for delivery in November, I take the total number of notices served (0) x 100 oz per contract to give us nil oz served from which add the difference between the OI standing for November (33) minus the number of contracts served today (0)x 100 oz per contract

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

0 notices x 100 oz per contracts already served this month or nil oz + (33- 0) x 100 oz = 3300 oz or .1959 tonnes of gold.

Select Commodity Prices

The Bloomberg Baltic Dry Index (BDI) was 1,484, down 4.32%. WTI December crude was 96.34 down 0.14. Brent crude was 108.84 down 1.02. The spread between Brent and WTI was 12.50 down 0.88. The 30 year US Treasury bond was up 0.0000 at 3.6300. The 10 year T-Note was up 0.0100 at 2.5400. The dollar was up 0.47 at 80.24. The PPT/Dow was 15545.75 down 73.01. Silver closed at 21.91 down 0.83. The GSR was 60.3697 up 1.3152 oz of silver per oz of gold. CIA's Facebook was 50.21 up 1.20 (2.45%). December wheat was down 7.50 at 667.500. December corn was down 2.00 at 428.25. December lean hogs were down 1.225 at 89.175. January feeder cattle were down 1.125 at 163.675. December copper was down 0.026 at 3.301. December natural gas was up 0.085 at 3.581. December coal was down 0.56 at 55.08.

Thank you for reading the Harvey Report!

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

Goooood day!

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

Fri, Nov 1, 2013 - 4:36am
fraxinus
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Let's give poor Karen some time to rest!

The mind of Karen Hudes now tells her that over 500,000 tons of gold are "held in trust for the people of the world". Ding dong. If even 165,000 tons exist above ground, why is delivery activity at both GLD and the Comex apparently hemorrhaging?

Fri, Nov 1, 2013 - 12:18pm fraxinus
DayStar
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RE: Above Ground Gold

Fraxinus, I think the 165,000 tonnes is the generally accepted number for above ground gold, but the distribution and allocation of that gold is a key factor. Hudes says the elites have their own stores of gold, but they are not using them to manipulate the markets. They are using naked shorting to control gold, and TF says sometimes they will go and buy up supply and then use that extra supply to manipulate the paper markets for a while. As far as GLD and Comex, they have their own gold stores, and those stores are reportedly (as much as you can trust the report) running low. Harvey said Thursday night that he thinks GLD is pretty much out of real metal, and he links GLD, the LBMA and Comex to the same physical gold, which is pretty much gone ("Oct 31:2013: this is now the 4th straight day of no gold inventory movement out of the GLD. I may be wrong, Ladies and Gentlemen but I think we hit rock bottom on the physical gold. I believe now that much of the paper 872.02 tonnes are nothing but paper obligations:"). So, while there exists a large store of gold above ground (as opposed to silver of which a large portion of the above ground metal has been consumed by industry), most of this above ground gold is in strong hands that are loathe to part with it. Comex is largely on its own and may end up like the Maine potatoes contracts where they settle outstanding silver contracts in fiat and then close the doors on the silver futures venue, but if they do, then the economic collapse is nigh at hand or in progress.

DayStar

Sun, Nov 3, 2013 - 8:46pm
Mr. Fix
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Thanks DS

"When the student is ready, the teacher will appear."
Sun, Nov 3, 2013 - 8:53pm
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~~Harvey 2 Nov 2013

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

FDIC Bank Seizures

The FDIC seized one bank this week:

Bank of Jackson County, Graceville, FL was closed on 30 Oct 2013.

News and Commentary

Harvey: Gold is in backwardation from 1 month out to 3 months out. GLD: Gold, November 1: after a 4 day hiatus, gold lost a monstrous 5.7 tonnes and this gold left western shores onto Shanghai. GLD stands at 866.32 tonnes. SLV: Silver was unchanged and stands at 10,502.23 tonnes.

Mark O’Byrne (GoldCore): There are a record 47.6 million Americans, representing 23.1 million households, on food stamps today. The cost of the program will hit $63.4 billion in 2013 - less than what the Federal Reserve is printing every single month today. Yet, very tough benefit cuts to food stamp recipients kick in today. The move by Congress will siphon $5 billion from a program that helps one in seven Americans put breakfast, lunch and dinner on the table. “If you look across the world, riots always begin typically the same way: when people cannot afford to eat food,” Margarette Purvis, the president and CEO of the Food Bank for New York said. More ‘irrationally exuberant’ market participants are ignoring the poor fundamentals of the U.S. economy. Most market participants fear an improving economy could prompt the U.S. central bank to cut back its, very bullion friendly, money printing measures. This remains highly unlikely and far more likely is a double dip recession - potentially a very sharp one which will lead to even more quantitative easing and currency debasement. DS: I wonder if they are trying to provoke rioting. There is a pattern of provocation and screw tightening going on. This week the cops stopped traffic on the interstate for no apparent reason and were going up the lanes peering into cars with flashlights. Dave Hodges says his recent experience with an interview on the Voice of Russia convinced him that the evidence he has encountered which documents the presence of untold tens of thousands of Russian soldiers on our soil are true and that these Russian soldiers will likely be used to enforce the coming martial law. So, the thumb screws are tightened one more turn.

GoldCore: The head of the eurozone finance ministers Jeroen Dijsselbloem said yesterday that governments need to prepare legislation for bail-ins. His important comments were not widely picked up, but they are important as they are another sign that bail-ins and deposit confiscation will be seen when banks get into difficulty.

Reuters: Barrick Gold Corp said it would stop development of its Pascua-Lama mine in South America indefinitely, a surprise reversal on a project that has already cost the world's largest gold producer more than $5 billion.

Reuters: The volume of gold transferred between accounts held by bullion clearers fell 16.3 percent in September to an average 18.5 million ounces a day, its lowest since August 2012, the London Bullion Market Association said.

Reuters: South Africa's AMCU union declared a wage dispute on Thursday with platinum producer Lonmin. The union also said its members in the gold sector were voting on whether or not to strike over wages and could do so from next week.

Bloomberg: American Eagle gold coin sales climbed from 13,000 oz in September, and they fell from 59,000 oz a year earlier, according to data today on the U.S. Mint website. July sales were 50,500 oz. In the 10 months ended today, sales rose to 752,500 oz, compared with 753,000 oz for all of 2012. American Eagle silver-coin sales were 3.087m oz in Oct., up from 3.01m oz last month and 3.153m a year earlier. In the 10 months ended today, sales were 39.175m oz, compared with 33.743m for all of 2012.

World Gold Council: Says Private Gold Stock Worth $1.8 Trillion. That compares with $90 trillion for debt markets, and $51 trillion for equity markets, World Gold Council says in report on website today. Debt markets grew threefold from 2000 to 2012 and equities increased from $20 trillion to $51 trillion.

DS: GoldCore talked about the seasonal strength typically associated with November, December, and January, but the cartel has repeatedly demonstrated the ability to push metals to where ever they want them to go, no matter what the fundamentals are. The metals will not do anything until the cartel wants them to. They may not do much of anything until Bernanke or Janet Yellen stands up and says, "Taper!"

Mail Online: A shooter identified as U.S. citizen and Los Angeles resident Paul Anthony Ciancia texted brother this morning saying he was thinking of taking his own life. His mother, Susan, died in 2009 after long battle with MS. His father, also called Paul, runs an autoshop in Pennsville, New Jersey. Law enforcement officials said he was ticketed passenger and acted alone. Witnesses said the gunman was asking people if they worked for TSA before shooting Officials say Ciancia is in critical condition after being shot in the face Was carrying anti-government literature with him during rampage Ciancia carried note saying he wanted to ‘kill TSA and pigs’. DS: Reports have surfaced after this attack as they have after all the others that cast serious suspicions on the genuineness of the attack. Reports say the attack was staged and may have been mostly actors or a psyops action.

Karen Hudes (via Silvertards): there is 170,500 metric tons of gold deposited in a vault in the Bank of Hawaii, 130,500 metric tons in AMEX Hong Kong plus 150,000 metric tons in Development Bank of Singapore, for a total of 451,000 metric tons. There is an additional amount exceeding 100,000 metric tons in other American banks. The bulk of the gold (451,000 metric tons) is held in the banks. There is an additional amount exceeding 100,000 metric tons in other American Banks and an additional 172,000 metric tons of gold re-buried in the Philippines in 1973. DS: Jim Willie confirmed much of Hudes allegations in an email to Silvertards shown here: https://www.silvertardsweride.com/2013/10/dr-jim-willie-backs-my-interview-to.html.

Robert Fitzwilson (via King World News): Rather than reliving the wheelbarrows of cash that post-WWI Germans experienced, the most likely endgame is the so-called “fat finger” by millions of investors -- seeking to rush out of investments into cash. In an all electronic world, the majority of investors have been lulled into believing that cash is a mouse click away on their computer. What they do not understand is that the institutions with whom they have their accounts would have to liquidate massive positions to allow them to convert to cash. With limited liquidity, even today, that is going to happen under a disorderly situation. The orders to sell will be generated, but there will be few executions. The markets will freeze as will the accounts. Those already with cash or that do not attempt to liquidate positions are not necessarily home free. Now that the “bail-in” concept has been coded into law, it is impossible to say what percent of their account will be waiting for them when markets are allowed to reopen. Grand plan or grand “face plant” or both, that is the conundrum for those attempting to figure out what comes next. In the meantime, intelligent, historically sound allocations of capital to both productive enterprises, real assets, precious metals and miners should be considered. Despite a dysfunctional monetary system and bankrupt governments, companies and entrepreneurs continue to create hope and opportunity. Our portfolios need to protect against an abrupt loss of purchasing power, but also be looking beyond this mess toward better times. DS: Like most others, Fitzwilson does not see the ultimate severity of the situation. It's not just a dysfunctional monetary system and bankrupt governments, but it is an intentional destruction of the West and the introduction of a new world order. Our job is to survive the financial crash and WWIII that follows and then try to recover our country when some of the smoke clears.

Andrew Maguire (via King World News): “People will ask me, ‘With such strong physical demand, how can the price (of gold) be going down?’ The answer is simple. Physical gold is completely unleveraged. Synthetic Comex supply is not gold at all, it’s just fake supply, and it temporarily overwhelms the underlying (true physical) demand. It’s pretty easy to do if you are the Fed. The Fed has a complete visibility into the (trading) ‘book,’ and knows exactly how much synthetic gold to dump into the market at any time to overcome the ‘bid stack,’ and ignite the algorithm-driven momentum follow through selling. It’s their (the Fed’s) game.

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

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

Quote:

Gold closed down $10.50 cents to $1313.10 (Comex closing time).

Silver was down 2 cents at $21.81.

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

Gold: $1316.00

Silver: $21.90

Thursday, Oct 31st Gold and Silver Action(basis 1:30 PM EST)

https://harveyorgan.blogspot.com/2013/11/a-huge-adjustment-at-Comex-causes-total.html

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

In silver:

Quote:

The total silver Comex OI fell by 452 contracts as silver was down in price yesterday ( $1.15 ). The total OI now rests tonight at 118,494 contracts. We are now seeing the OI with respect to silver and gold rise slowly and I believe we can assume that both precious metal contracts are all in strong hands. The next non active front month for silver is November and here the OI lost 46 contracts down to 20. The big December contract saw its OI fall by 1789 contracts down to 74,292.

In Gold:

Quote:

The total gold Comex open interest fell today by 1508 contracts from 389,271 down to 387,763 as gold fell yesterday by $25.40. We have now ended the active delivery month of October as we head into the non active delivery month of November. The November front month saw it's OI fall from 33 down to 18 for a loss of 15 contracts. we had 0 delivery notices so we lost 15 contracts or 1500 oz of gold standing. The biggest of all delivery months is the December contract month. The December OI fell by 3914 contracts to 204,103.

Volume

In silver:

Quote:

The estimated volume today was good coming in at 37,019 contracts.

The confirmed volume yesterday was excellent at 56,905.

In gold:

Quote:

The estimated volume today was fair at 131,362 contracts.

The confirmed volume yesterday was better coming in at 160,554.

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: 520,828.70* oz

ii) Into Scotia: 596,135.19* oz

Total customer deposits: 1,116,963.89 oz

* I have been noticing that many of the deposits and many of the withdrawals in silver are in the 500,000 oz range. I have been noticing this for the past few years. It is quite strange.

We had 1 customer withdrawal:

i) Out of JPMorgan: 603,063.90 oz

Total withdrawals: 603,063.90 oz

We had 1 adjustment today:

i) from the JPM vault: 5,130.50 oz was adjusted out of the dealer and this landed into the customer at JPM

Registered (dealer) silver: 44.261 million oz.

Total of all silver: 169.528 million oz.

In gold:

Quote:

We had no activity in the Comex gold vaults today and this is the 4th day in a row that we had zero activity...very strange indeed!!

The dealer had 0 deposits and 0 dealer withdrawals today.

We had 0 customer deposits today.

Total customer deposits: nil oz

We had 0 customer withdrawals.

Total Customer withdrawals: nil oz.

Today we had 0 adjustments.

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

JPM dealer inventory remains constant tonight at 283,004.004: oz or 8.805 tonnes

JPM customer inventory rises tonight to: 479,563.381 oz or 14.916 tonnes

Today, 0 notices was issued from the JPMorgan dealer account and 5 notices were issued from their client or

customer account. The total of all issuance by all participants equates to 5 contracts of which 5 notices

were stopped (received) by JPMorgan dealer (house account) and 0 notices were stopped by the JPMorgan

customer account.

The total dealer Comex gold remains tonight at 707,095.284 oz or 21.99 tonnes of gold. The total of all

Comex gold (dealer and customer) remains at 7,154,225.563 oz or 222.52 tonnes.

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

our 3 major bullion banks (Scotia, HSBC and JPMorgan). These 3 dealers' gold inventory remains tonight at

17.938 tonnes. However, we should see massive amounts of gold leave the JPMorgan dealer gold to settle the

delivery notices filed in October:

i) Scotia: 162,121.611 oz or 5.043 tonnes

ii) HSBC: 131,673.323. oz or 4.09 tonnes

iii) JPMorgan: 283,102.634 oz or 8.805 tonnes

Total: 17.938 tonnes

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

constant tonight at 116,927.48 oz or 3.63 tonnes. A few months ago they had over 13 tonnes of gold in their

registered or dealer accounts.

Delivery Notices

In silver:

Quote:

The CME reported that we had 6 notices filed for 30,000 oz today.

In gold:

Quote:

Today we had 0 notices served upon our longs for nil oz of gold.

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

In silver:

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

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

In silver:

Quote:

To calculate what will stand for this active delivery month of November, I take the number of contracts served for the entire month at 59 x 5,000 oz per contract = 295,000 oz to which I add the difference between the OI standing for November (20) and the notices served today (6) x 5000 oz = 365,000 oz.

In summary:

59 contracts x 5000 oz per contract (served) or 295,000 oz + (20 - 6) x 5000 oz = 365,000 oz

We gained 7 contracts or an additional 35,000 oz will stand for the November delivery month.

In gold:

Quote:

In order to calculate what will standing for delivery in November, I take the total number of notices served (0) x 100 oz per contract to give us nil oz served from which add the difference between the OI standing for November (18) minus the number of contracts served today (0) x 100 oz per contract.

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

0 notices x 100 oz per contracts already served this month or nil oz + (18 - 0) x 100 oz = 1800 oz or.05598 tonnes of gold.

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

i) the total dealer inventory of gold remains tonight at a very dangerously low level of only 20.48 tonnes

ii) a) JPMorgan's customer inventory rests tonight at 528,215.620 (16.429 tonnes) This inventory will drop once the notices are filled from the JPMorgan customer account

ii) b) JPMorgan's dealer account rests tonight at 234,450.395 oz

iii) the 3 major bullion banks have collectively only 16.425 tonnes of gold left in their dealer accounts (JPMorgan, HSBC, Scotia) and no gold is entering the dealer Comex vaults. The fireworks will begin in earnest in December once this huge delivery month is upon us.

Select Commodity Prices

The Bloomberg Baltic Dry Index (BDI) was 1,525, up 1.40%. WTI December crude was 94.61 down 1.73. Brent crude was 105.91 down 2.93. The spread between Brent and WTI was 11.30 down 1.20. The 30 year US Treasury bond was up 0.0700 at 3.7000. The 10 year T-Note was up 0.0800 at 2.6200. The dollar was up 0.47 at 80.71. The PPT/Dow was 15615.55 up 69.80. Silver closed at 21.87 down 0.04. The GSR was 60.1646 down 0.2051 oz of silver per oz of gold. CIA's Facebook was 49.75 down 0.46 (0.92%). December wheat was up 0.25 at 667.750. December corn was down 1.00 at 427.25. December lean hogs were down 0.825 at 88.350. January feeder cattle were down 0.200 at 163.475. December copper was down 0.003 at 3.299. December natural gas was down 0.068 at 3.513. December coal cloased down 0.32 at 54.76.

Thank you for reading the Harvey Report!

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

Goooood day!

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

Mon, Nov 4, 2013 - 10:46am Mr. Fix
DayStar
Offline
Joined: Jun 14, 2011
2586
14106

RE: Harvey

And thanks to you, Mr. Fix for your insightful articles on TPTB and TEOTGKE. I just recommend that you shift your focus a bit westward from China and Russia. The whore of Babylon is to be the new power center when smoke clears (if it does ), and she sits in Rome. She is keeping herself cloaked by the misdirection toward trouble elsewhere and her induced smoke and mirrors are obscuring her actions. Look for her to become more obvious as time goes by. The current pontiff is already doing very un-Christian-like things. The ones that return to Israel when God permits it will return with their gold and silver intact. God is our defense, and He will raise up a deliverer as He always does.

DayStar

Mon, Nov 4, 2013 - 9:29pm
DayStar
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Joined: Jun 14, 2011
2586
14106

~~Harvey 4 Nov 2013

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

News and Commentary

Harvey: GOFO numbers are now partly in the negative as gold is now extremely scarce as the boys are finding it harder to find physical. Gold is in backwardation from 1 month out to 2 months out. GLD: Gold was unchanged at 866.32 tonnes. SLV: Silver was unchanged at 10,502.23.

Mark O'Byrne (GoldCore): Physical demand in China and India appears to have fallen from the incredibly strong levels seen recently but store of wealth, physical buyers in the west continue to accumulate physical bullion in order to hedge against considerable macroeconomic and geopolitical risk. This is seen in the U.S Mint data which showed that gold coin demand in the first ten months of 2013 has already surpassed total demand for 2012. Indian demand was tame during the biggest gold buying festivals of Dhanteras and Diwali, celebrated on Friday and over the weekend. Indians are opting for cheaper silver due to high gold premiums and the scarcity of physical gold on the domestic market. This bodes well for silver in the coming months as buyers internationally see silver as undervalued and undervalued against gold. Many believe new record highs for silver are only a matter of time and we concur.

GoldCore: The US Mint sells gold coins to dealers, who in turn make them available to the public. Market participants consider the Mint data as an indicator of retail investors’ demand for physical gold. However, ETFs may be a better indicator of retail investor demand and physical coins an indication of store of wealth or financial insurance demand. This is an important distinction as retail investors tend to buy near highs and sell near lows. While store of wealth buyers are generally value buyers and tend to accumulate physical bullion on weakness and price dips. They are reluctant sellers and therefore do not tend to sell on price weakness rather they use their physical bullion as financial insurance and tend to only sell when they have a need for paper currency.

Zero Hedge: After rising to a gross 131 tons imported from Hong Kong alone in August, which was the second highest ever monthly import tally, September saw a modest decline to "only" 116 tons: "only" because it is still 67% more than the amount imported a year earlier. The total gross imports since September 2011 is now a whopping 2232 tons. The gross imports year to date are now over 1,113 tons, 91.3% more than the amount of gold imported through September of 2012. Netting out exports to Hong Kong, September was virtually unchanged from August, at 109 metric tons vs 110 a month earlier. In other words, September was tied for the third highest net import month in Chinese history.

Dave Kranzler (GoldenTruth): We have witnessed a stunning drain of gold from the GLD ETF trust. Through last Friday, an incredible 479 tonnes - more than 35% - of GLD's gold has been removed and has disappeared, most likely to Asia - in the space of about 10 months. The biggest chunk of that 479 tonnes was removed shortly after Germany's Bundesbank issued it's feeble and hopeless request to the U.S. that the Federal Reserve start shipping back some portion of its 1500 tonnes of gold. How much more gold can they drain from GLD before it loses all credibility? As you we all know, for all intents and purposes the Fed defaulted on Germany's request for its gold, and that's when the massive drain of gold from GLD commenced. The gold in the GLD trust is being used to satisfy the enormous physical delivery demands from China and the other big gold buying countries because the western Central Banks have run out of gold to deliver. That is an unmistakable fact. My best guess is that if the gold in GLD were to be depleted by another 35% from here, the largest remaining shareholders of GLD would likely start exercising their legally ambiguous "right" to convert their shares into physical gold and have that gold delivered out of JPM's custodial vault and into their possession. Think about the Hobson's Choice faced by the sponsor, trustee and custodian of GLD: if they don't honor shareholder conversion requests to convert and deliver gold, it will send the "default" signal to the world that indeed GLD is a fraud, that GATA has been right along. The price of gold will literally go straight up, "bid without" - meaning huge bids will appear at much higher levels and there won't be any offers. The other side of this "choice" is that it is likely that the physical gold - at that point in time - to honor such requests is actually not available in JPM's vault to be delivered and the trustee will attempt to settle in cash. Gold goes bid without.

Daniel Schäfer and Caroline Binham: Authorities including those in Switzerland, the UK, Hong Kong, and the US have opened preliminary investigations into whether some of the biggest banks in the world rigged the foreign exchange market, which has daily volumes of $5.3 trillion and is used by millions of companies, institutional funds and retail investors. Crucial benchmark rates in the mostly unregulated market are set based on transactions made during short windows of 60 seconds for the largest currencies. Regulators are investigating if traders colluded to move these benchmarks, although none has been formally accused of wrongdoing. After a series of high-level suspensions this week, there are now at least a dozen traders across six banks on leave. They include several of the most senior traders in the market such as Barclays' Chris Ashton, who oversees the bank's voice-spot trading around the world. At least six of the leading banks in the foreign exchange market -- where everything from the leading reserve currency, the US dollar, to smaller currencies such as the Hungarian forint are being traded -- have now confirmed they have received requests from regulators. Citigroup and JPMorgan on Friday became the latest banks to confirm they were co-operating with regulators on the investigations, joining Barclays, UBS, Deutsche Bank, and Royal Bank of Scotland.

Egon von Greyerz (via King World News): Western central banks don’t have the 23,000 tons of gold they say they have. Eric Sprott has done great work in this area. But this week we had more proof that the 23,000 tons of gold the West claims to possess is vastly overstated. why is 88% of Swedish gold held abroad? For the simple reason that they are trading their gold within the LBMA market, and trading can mean anything from selling to leasing. Then, on Wednesday of this week Finland announced that 96% of its gold is held outside of the country -- half in the UK, and the rest in Sweden, New York, and Switzerland. The Bank of Finland also admitted that half of the gold held in the UK is ‘invested.’ One can probably assume that half of the gold held in the other countries is also ‘invested,’ which means that 50% of Finland’s gold is either sold, or leased to the market. Either way it’s gone. As more and more gold is taken out of the LBMA system, the bigger the shortage of physical gold becomes. So the question is, how much of the West’s supposed 23,000 tons of gold is still in the vaults? Nobody knows, but I would be surprised if it’s more than half. The reality is that we have a system where physical gold is owned many times over, and we also have a system where the paper gold market is 100 times the size of the physical gold market, with absolutely no chance whatsoever for people who hold paper gold to receive physical delivery. With this extremely fragile and precarious situation you wonder why anybody with a sound mind would hold paper gold or physical gold in a bank? The bottom line here is there is only one way for investors to hold gold, which is in physical form, and outside of the banking system.

William Kaye (via King World News): November has been one of the best months of the year for a number of years for gold. The average gain over the course of November was 4.9% to 5% for the last 10 years. That’s astonishing when you think about it. I’m told from our sources that the premiums in India are as high as $200 an ounce, which is just mind-boggling because of the controls that have been place on gold by the Reserve Bank of India. This would be well known by the ‘Cartel’ forces, and I suspect that’s why they are trying to set the stage -- trying to depress gold as much as they can going into what is going to be a very seasonally strong November. It has been common for China to have to pay $25, $30, or even $40 premiums to the Western price for gold. Well, that premium has all been eliminated over the last week. And the spin put on that, unsurprisingly, is this shows that demand in China is down. Well, if demand in China is down, then presumably volumes are down. But volumes aren’t down, so that’s not right. The premium has collapsed because there has obviously been a change in policy (by the Chinese). My sources indicate that HSBC in particular, has been told to, ‘Stop the nonsense.’ They (Chinese officials) recognize that the bullion banks, at the expense of the population and the jewelers, have been making arbitrage profits. I’m not going to get into the illegality of those profits, but let’s say they are (highly) suspect. And essentially the word came down from ‘on high’ that ‘This has got to stop.’ And as things frequently happen in China, when that ‘word’ comes down, it just stops.

Peter Cooper (Arabian Money): Gold retailers in Dubai are expecting to see their sales surge by 50 per cent this week as the five-day Diwali festival of lights continues this week. Gulf News reports that retailers are posting 25 to 100 per cent increases in business so far. Thank a 25 per cent fall in gold prices this year and a 10-15 per cent tax on gold by the Indian Government. Savvy Indian investors have always responded to falls in the gold price by buying more gold, not selling it. Diwali is one of the most important religious festivals in the Indian calender with the giving of gold at its heart. Gold jewellery is always a popular buy in Dubai because only a small margin is paid over the cost of the precious metal. It’s not like the US or UK where profit margins and design can put retail prices at double or triple the price of gold. Also this year nobody needs to remind Indian buyers of gold of how this precious metal works as a defense against devaluation and inflation. The Indian rupee has plummeted more than the price of gold which is still trading at record prices in rupees. Indeed, that has prompted the Indian Government to raise taxes on gold to 10-15 per cent to help control demand and ease its huge balance of payments problem by lowering gold imports. That is good news in Dubai where gold is sold tax free.

Bill Holter (Miles Franklin): China has imported through Hong Kong over 2,200 tons of Gold over the last 2 years. This amount is roughly half of the entire worlds' production. This 2,200 tons does not even take into account Gold that the Shanghai exchange has delivered which is another 1,750 tons which accounts for nearly the rest of ALL mined Gold over the last 2 years. So where is all of this Gold coming from? A large part has come from GLD, Comex and the BoE. China wants as much gold as they can get their hands on without upsetting the markets. China has over $3 trillion of Treasuries and Dollar reserves and 1% of that stash equals $30 billion. For $30 billion China could buy up nearly 40% of annual production. It could nearly clean out ALL of GLD and Comex dealer inventories...and this is JUST ONE PERCENT of what China is sitting on, and this is just considering potential demand from CHINA ALONE and no one else! Do you see just how carefully balanced this game is now? Do you see how close to going nuclear this situation is? This is not about Gold going to $1,500 or $1,900 or $5,000 or any other number. This is for ALL the marbles. You will either have it or you won't. "Price" will not ever again be "decided" in the paper markets of N.Y. or London. China will spring up a Gold backed or ratio'd currency and TELL the world just how many Dollars are required to purchase and have one ounce of Gold delivered. While we are completing our "going out of business sale", China is filling their coffers.

Bill Holter (Miles Franklin): You ask what the problem is with the global economy? The Fed now has no options left. They can step on the brake (no they can't), stomp the accelerator and turn the steering wheel in any direction as far or as many times as they'd like. This will not stop the crash that is coming. When you begin a monetary system that is a 180 degree antithesis to Mother Nature...it will fail and fail miserably. The biggest problem is that this "experiment" is a global one. This is not "some country" that will fail and have to pull up their bootstraps, no, we are talking about the reserve currency of the world that is the foundation for virtually every single banking and financial system on the planet. Understand that dysfunctional man cannot repeal Mother Nature nor her laws. DS: It is a cold consolation that the laws of nature cannot be defied forever when you are on the street penniless, cold and hungry. For 90% of the poeple, the crash will be unexpected, and they will be unprepared.

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

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

Quote:

Gold closed down $10.50 cents to $1314.60 (Comex closing time).

Silver was down 13 cents at $21.68.

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

Gold: $1314.80

Silver: $21.65

Friday, Nov 1st Gold and Silver Action(basis 1:30 PM EST)

https://harveyorgan.blogspot.com/2013/11/gld-and-slv-constantgold-and-silver.html

Total, Nov (Silver), Dec (Gold, Silver), Jan (Silver) Open Interest

In silver:

Quote:

The total silver Comex OI rose by 106 contracts as silver was down in price on Friday ( 2 cents ). The total OI now rests tonight at 118,494 contracts. We are now seeing the OI with respect to silver and gold rise slowly and I believe we can assume that both precious metal contracts are all in strong hands. The front non active front month for silver ( November) saw its OI contract by 4 contracts down to 16. The big December contract saw its OI fall by 1541 contracts down to 72,751.

In Gold:

Quote:

The total gold Comex open interest fell today by 291 contracts from 387,763 down to 387,478 as gold fell yesterday by $10.50. The November front month saw it's OI fall from 18 down to 16 for a loss of 2 contracts. we had 0 delivery notices so we lost 2 contracts or 200 oz of gold will not be standing. The biggest of all delivery months is the December contract month. The December OI fell by 1637 contracts to 202,446.

Volume

In silver:

Quote:

The estimated volume today was poor coming in at 23,027 contracts.

The confirmed volume on Friday was good at 41,051.

In gold:

Quote:

The estimated volume today was poor at 82,552 contracts.

The confirmed volume on Friday was better coming in at 147,601.

Inventory Numbers

In silver:

Quote:

Today, we had good activity inside the silver vaults. we had 0 dealer deposits and 0 dealer withdrawals.

We had 0 customer deposits:

Total customer deposits: nil oz

we had 1 customer withdrawals:

i) Out of CNT: 155,292.910 oz

Total withdrawals: 155,292.910 oz

We had 1 adjustment today:

i) from the Brinks vault: 25,940.72 oz was adjusted out of the dealer and this landed into the customer at Brinks.

Registered (dealer) silver: 44.261 million oz

Total of all silver: 169.528 million oz.

In gold:

Quote:

We had tiny activity in the Comex gold vaults today.

The dealer had 0 deposits and 0 dealer withdrawals today.

We had 1 customer deposit today.

i) Into Scotia: 1607.500 oz

Total customer deposits: 1607.500 oz

We had 0 customer withdrawals.

Total Customer withdrawals: nil oz.

Today we had 0 huge adjustments.

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

JPM dealer inventory falls tonight to 234,450.395: oz or 7.292 tonnes.

JPM customer inventory rises tonight to: 528,215.620 oz or 16.429 tonnes.

Today, 0 notices was issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 0 contract of which 0 notices were stopped (received) by JPMorgan dealer (house account) and 0 notice stopped by JPMorgan customer account. The total dealer Comex gold remains...[at] 658,443.045 oz or 20.48 tonnes of gold. The total of all Comex gold (dealer and customer) remains at 7,155.334 oz or 222.56 tonnes.

Tonight, we still have the continuing disturbing piece of news concerning the low dealer gold inventory for our 3 major bullion banks (Scotia, HSBC and JPMorgan). These 3 dealers' gold inventory fell tonight to 16.425 tonnes.

i) Scotia: 162,121.611 oz or 5.043 tonnes

ii) HSBC: 131,673.323. oz or 4.09 tonnes

iii) JPMorgan: 234,450.395 oz or 7.292 tonnes

Total: 16.425 tonnes

Brinks dealer account which did have the lion's share of the dealer gold saw its inventory level remain constant tonight at 116,927.48 oz or 3.63 tonnes. A few months ago Brinks had over 13 tonnes of gold at its registered or dealer account.

Delivery Notices

In silver:

Quote:

The CME reported that we had 3 notices filed for 15,000 oz today.

In gold:

Quote:

Today we had 0 notices served upon our longs for nil oz of gold.

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

In silver:

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

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

In silver:

Quote:

To calculate what will stand for this active delivery month of November, I take the number of contracts served for the entire month at 62 x 5,000 oz per contract = 310,000 oz to which I add the difference between the OI standing for November (16) and the notices served today (3) x 5000 oz = 375,000 oz

In summary:

62 contracts x 5000 oz per contract (served) or 310,000 oz + (16 - 3) x 5000 oz = 375,000 oz

We gained 2 contracts or an additional 10,000 oz will stand for the November delivery month.

In gold:

Quote:

In order to calculate what will standing for delivery in November, I take the total number of notices served (0) x 100 oz per contract to give us nil oz served from which add the difference between the OI standing for November (16) minus the number of contracts served today (0) x 100 oz per contract

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

0 notices x 100 oz per contracts already served this month or nil oz + (16- 0) x 100 oz = 1600 oz or.0497 tonnes of gold.

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

i) the total dealer inventory of gold remains tonight at a very dangerously low level of only 20.48 tonnes

ii) a) JPMorgan's customer inventory rests tonight at 528,215.620 (16.429 tonnes) This inventory will drop once the notices are filled from the JPMorgan customer account

ii) b) JPMorgan's dealer account rests tonight at 234,450.395 oz.

iii) the 3 major bullion banks have collectively only 16.425 tonnes of gold left in their dealer account.(JPMorgan, HSBC,Scotia) and no gold is entering the dealer Comex vaults. The fireworks will begin in earnest in December once this huge delivery month is upon us.

Select Commodity Prices

The Bloomberg Baltic Dry Index (BDI) was 1,552, up 1.77%. WTI December crude was 94.49 down 0.12. Brent crude was 106.23 up 0.32. The spread between Brent and WTI was 11.74 up 0.44. The 30 year US Treasury bond was down 0.0100 at 3.6900. The 10 year T-Note was down 0.0200 at 2.6000. The dollar was down 0.13 at 80.58. The PPT/Dow was 15639.12 up 23.57. Silver closed at 21.66 down 0.21. The GSR was 60.6925 up 0.5279 oz of silver per oz of gold. CIA's Facebook was 48.22 down 1.53 (3.08%). December wheat was down 5.00 at 662.750. December corn was down 1.00 at 426.25. December lean hogs were down 0.025 at 88.325. January feeder cattle were up 0.375 at 163.850. December copper was down 0.046 at 3.253. December natural gas was down 0.068 at 3.445. December Coal was down 0.58 at 54.18.

Thank you for reading the Harvey Report!

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

Goooood day!

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

Tue, Nov 5, 2013 - 9:26pm
DayStar
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~~Harvey 5 Nov 2013

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

News and Commentary

Harvey: Gold is in backwardation from 1 month, but the negative gold forward rates are decreasing. GLD: Gold was unchanged at 866.32. SLV: Silver lost a tiny 14,400 oz and stands at 10.497.75 tonnes of silver.

Gerald Celente (via the Daily Bell): Everybody can see what happened when the Federal Reserve talked about tapering several months ago. All of a sudden you saw the emerging markets start to crash; they dropped about 11% in a year before the Fed reversed its policy because all the hot, low-interest rate money that was leaving the US was flowing into the emerging markets, where you could borrow the money cheaply. So when they started to talk about tapering the hot money started flowing out of these countries, such as India, Brazil. They were really suffering from it and so were their stock markets. So without the cheap money flowing from the central banks, the entire global economy goes on stall and then it turns negative. You can see what's going on in China now; they're facing a banking crisis. Real estate prices in cities like Shanghai and Beijing have gone up over 20% in a year and no matter how the government tries to deflate it, the housing bubble keeps growing. The banks also have a lot of bad loans they're carrying. Now the Chinese government is trying to restrain that free-flow of cheap money, and what happens to their stock market when they do? It dives and the contagion spreads to other Asian equity markets. They all start dropping. It's all tied to cheap money and when the cheap money spigot begins to tighten up the global economy goes down. As I've made very clear, when the interest rates go up the economies go down – it's as simple as that. They've run out of this game. Compare this with the Great Depression, when it began essentially in 1930. This recession begin in 2008. It's now 2013 – we're only in 1935.

Mark O'Byrne (GoldCore): Declines are likely to be limited as lower price is leading to physical buying globally. While much of the focus continues to be on ETF selling and Indian and more recently Chinese demand, some market participants fail to realise the extent of global demand which remains broad based. This is seen in the recent gold data out of Dubai and Turkey. Turkey’s gold imports jumped more than threefold in October to 15.98 metric tons, from 4.8 tons in September, according to the Istanbul Gold Exchange’s website. That’s the highest since July, the data shows. Turkey has already imported 251.4 metric tonnes in 2013, year to date, meaning that it will come very close to or surpass the record import year in 2005 when 269.5 metric tonnes of gold were imported (see table below). Year to date imports are more than double the amount of gold imports in 2012 and more than triple those in 2011. Turkey’s gold sales to neighboring Iran declined to $1.5 billion so far this year from a record $6.5 billion for all of last year. This may indicate a fall in demand from Iran or that Iran is now importing gold from other countries such as Dubai in the UAE.

GoldCore: Some Turkish banks are now offering customers the ability to use their gold based deposits for collateral on gold backed loans and using gold as access to Turkish Lira or for access to credit cards. Isbank and Turkiye Garanti Bankasi AS, the country’s biggest lender by market value, offer gold-backed loans, where customers can bring jewellery or coins to the bank and take out loans against their value. Garanti also has a credit card linked to gold deposit accounts. Government efforts to help ease the nation’s current account deficit are encouraging householders to bring their gold coins which it is estimated that there are $302 billion of hidden gold stashed in homes in Turkey. This hidden gold is second only to the U.S., and Turkish gold based deposit accounts have grew 15% this year calculated until the end of July, which is a 3 fold increase in standard savings accounts according to the Turkish Central Bank. The World Gold Council estimates that by bringing 5,000 metric tons (5,512 tons) of gold bullion into the banking system -- an amount greater in value than Ireland’s GDP, Turkey aims to reduce gold imports and external borrowing. DS: Turkey has no goal ever of decreasing borrowing. What they are doing is getting some of the physical gold back from the people by offering relatively good deals on lira loans in exchange for gold collateral. This is no different than the rehypothecation that goes on in gold world wide. The borrowers will probably never see their gold again.

Henry Bonner (Sprott's Thoughts): Can the government really stop gold imports here? I would think not – the Indian government is likely too corrupt and inefficient to properly enforce this kind of policy. So, I believe it’s impossible for them to stop gold imports through custom duty and regulatory mechanisms. Traders tell me that most of the gold comes through smuggling anyway. Transactions worth millions are performed over cell-phones and closed using bags of cash. In time, I expect smuggling will reduce the premiums that Indians currently pay. A small premium, possibly lower than the official premium, could take care of bribes, smugglers’ commissions and transactions costs, while saving money on the import duty which is not paid. So Indians are still interested in gold, and will keep buying. Because of the high deficit and high inflation – the consumer price index is up 9.8% over the last 12 months -- Indians have very few options. They cannot park their money abroad because of strict limitations on holding foreign currencies. The same applies to owning foreign properties and other investments. That’s why 33% of Indian GDP goes into physical assets, with two-thirds of the gross domestic savings going into real-estate and precious metals. Property is already extremely over-priced. Also, I believe gold is the only investment that allows Indians to keep their money away from the prying eyes of the confiscatory government. Gold has done well for Indians – it is currently trading near its all-time high in Rupee. For all these reasons, people still love gold.

James Turk (via King World News): The really important thing is that the yield on the 10-Year Treasury Note is inching back up. The yield dropped slightly after last week’s FOMC announcement, but that respite was short-lived. Yields have been in an uptrend since May, and this trend is likely to continue. It is interesting to note that yields are following the same pattern that started with the May FOMC meeting. Despite all the bond buying by the Fed which should create demand and therefore lower yields, the opposite is happening. Yields are rising, and it is relentless. It is happening slowly, but surely, like a powerful locomotive chugging away, which I think is a good way to describe what is taking place. The locomotive is the market, and in the end markets are always more powerful than government intervention. The locomotive is gaining momentum for the reason that I have been making since May, which is when the tipping point was reached. Since then there have been more investors willing to sell government securities than the Fed or other central banks are willing to buy. The consequence has been rising yields on the 10-Year Treasury Note. But interest rates are not rising in spite of QE, instead, since May they have been rising because of QE. Interest rates are just way too low and do not offset all of the risks associated with holding Treasury paper. Therefore, Treasury paper is being sold, meaning that its supply is greater than the demand for this paper. The reason why all of this so incredibly important is that everything is now in place for another crisis as we approach the February debt ceiling limit. As a consequence, it is extremely critical that investors understand that they should absolutely not be holding dollars or Treasury paper. They are incredibly overvalued and therefore they will be the ultimate losers here. Physical gold and silver are the place to be, and can continue to be picked up at prices that reflect severe undervaluation.

Beni Emmanuel (EMET Report): South Korea's spy agency said Monday that North Korea was using Russian technology to develop electromagnetic pulse weapons aimed at paralysing military electronic equipment south of the border. The Korean National Intelligence Service (NIS) said in a report to parliament that the North had purchased Russian electromagnetic pulse (EMP) weaponry to develop its own versions. EMP weapons are used to damage electronic equipment. At higher energy levels, an EMP event can cause more widespread damage including to aircraft structures and other objects. The spy agency also said the North's leader Kim Jong-Un sees cyberattacks as an all-purpose weapon along with nuclear weapons and missiles, according to lawmakers briefed by the NIS. The North is trying to hack into smartphones and lure South Koreans into becoming informants, it said. It has collected information on where South Korea stores chemical substances and oil reserves as well as details about subways, tunnels and train networks in major cities, it said. The spy agency also said North Korean spies were operating in China and Japan to distribute pro-Pyongyang propaganda. North Korea is believed to run an elite cyber warfare unit of 3,000 personnel. A South Korean lawmaker, citing government data, said last month that the North had staged thousands of cyberattacks against the South in recent years, causing financial losses of around $805 million. In addition to military institutions, the North's recent high-profile cyberattacks have targeted commercial banks, government agencies, TV broadcasters and media websites. North Korea has denied any involvement in cyberattacks and accused Seoul of fabricating them to fan cross-border tension.

Richard Russell (via King World News): The great stock market bull run will end as all bull markets do: with a massive entrance of the retail public and subtle distribution by institutional money. Investors’ choice: going into what appears to be a growing stock market bubble, or remaining in the universe of gold, which is acting as though it is at a bear market bottom. As for gold, China is accumulating all it can at these attractive prices. It seems to me that China is intent on creating the world’s largest hoard of gold. The Golden Rule: “He who owns the gold makes the rules,” and owns the reserve currency … I think the present system has, in effect, been destroyed by more debt than we can handle. I think a new system will be required, a system based on gold, which will automatically put a brake on debt.”

Art Cashin (via King World News): At present, the Fed holds $3.84 trillion in assets, with capital of just $54.86 billion, putting the Fed at 70-to-1 leverage against its stated capital. Given the relatively long maturity of Fed asset holdings, even a 20 basis point increase in interest rates effectively wipes out the Fed’s capital. The Federal Reserve now owns 50% of all treasuries maturing between 10 years and 15 years. Some further congratulations appear in order for that achievement. There are barely $100 billion of treasuries outstanding for the public to buy. No wonder so many companies are issuing 10 years and longer. The Fed has created such a void of paper that pension funds and others that want somewhat longer dated assets need to fill with corporate dead. It probably means that at some point the 10 year point of credit curves should weaken (go wider) but for now there is so much demand that corporate spreads will do okay even with the new issue. Talk about distortions. Bear Stearns and Lehman were only leveraged at 30 to 1 but they collapsed like the house of cards they were. Certainly the Fed is not a regular bank. It can print money. But bank runs are not only about money, they are mostly about credibility – and there is no printing press for that.

The Doc (SilverDoctors.com): Desperate people do desperate things, and it appears that Americans are rapidly becoming a lot more desperate. An epidemic of thievery is sweeping across America, and authorities are not quite sure what to make of it. So why is all of this happening? Well, as we have written about previously, crime is on the rise in the United States, and poverty is absolutely exploding. In fact, according to the latest numbers from the U.S. Census Bureau, 49.2 percent of all Americans are receiving benefits from at least one government program each month. Over the past five years, we have seen an unprecedented rise in the number of people that cannot take care of themselves without help from the government. Millions upon millions of Americans that have been forced into poverty are becoming increasingly angry, frustrated and desperate. And what we are watching right now is only just the beginning – all of this is going to get a whole lot worse.

Bill Holter (Miles Franklin): Russia was "thrown out" of Egypt back in 1972 so any deal now would be a reversal of their eviction. A port in the canal area will give them a stronghold over shipping. It would also show not only a "thaw" in relations but a genuine warming. Sec. of State Kerry visited both Egypt and Saudi Arabia over the weekend, he made almost no statement afterwards nor was there any sort of public communique. If you were a business partner that had no qualms and had no plans of "changing" the arrangement, would you host your "partner's" foe a week before high level talks? Would you at least issue a press release that "all was made happy" during these high level talks? We have not heard anything from Egypt nor Saudi Arabia and very little from John Kerry. You could almost say "crickets". The U.S. is being "distanced". We are being distanced through little or no communiques and even distanced publicly as John Kerry was placed in the back row at the end and by himself after the Asian business summit. The U.S. has always (in my lifetime) been at the front and at the center of every business, military or diplomatic meeting of any sort...ALWAYS! But this has changed. A lot has changed. So much so that we seem to be playing checkers while the game is chess! DS: The US is doing so poorly at foreign relations it is dismantling decades of carefully nurtured diplomacy and alliances. It is doing so poorly, in fact, that one could reasonably conclude the prez is doing it purposefully. That accords well with his apparent agenda to do what is worst for America and what is best for precious metals.

Tyler Durden: "The Fed is playing a very dangerous game," Starwood Capital's Barry Sternlicht warns,"and they need to stop." Sternlicht has quadrupled his firm's net worth in this time and, to the incredulity of the CNBC anchors, warns, "this is bad, this is a heroine addiction... and now they are printing more money than the deficit." The outspoken CEO of the $29 billion fund, noted "all my friends who are money managers.. are much closer to the sell button than they ever were before," adding that "everyone's holding cash," since if they start to get nervous "volatility will come back instantly." Simply put, he concludes, "you know when this ends, it's gonna get ugly."

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

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

Quote:

Gold closed down $6.40 at $1308.00 (Comex closing time).

Silver was down 6 cents at $21.62.

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

Gold: $1313.00

Silver: $21.69

Monday, Nov 4th Gold and Silver Action(basis 1:30 PM EST)

https://harveyorgan.blogspot.com/2013/11/gold-inventories-at-gld-hold.html

Total, Nov (Silver), Dec (Gold, Silver), Jan (Silver) Open Interest

In silver:

Quote:

The total silver Comex OI fell by 434 contracts as silver was down in price on Monday (13 cents). The total OI now rests tonight at 118,166 contracts. We are now seeing the OI with respect to silver and gold rise slowly and I believe we can assume that both precious metal contracts are all in strong hands. The front non active front month for silver (November) saw its OI shrink by 2 contracts down to 14. We had 3 delivery notices filed yesterday so in essence we gained one contract or an additional 5000 oz of silver will stand for delivery. The big December contract saw its OI fall by 765 contracts down to 71,986.

In Gold:

Quote:

The total gold Comex open interest fell today by 418 contracts from 387,478 down to 387,060 as gold rose yesterday by $1.50. The November front month saw it's OI fall from 16 down to 13 for a loss of 3 contracts. We had 0 delivery notices so we lost 3 contracts or 300 oz of gold will not be standing. The biggest of all delivery months is the December contract month. The December OI fell by 2444 contracts to 200,002.

Volume

In silver:

Quote:

The estimated volume today was poor coming in at 28,496 contracts.

The confirmed volume on yesterday was also poor at 25,202.

In gold:

Quote:

The estimated volume today was fair at 117,587 contracts.

The confirmed volume on yesterday was poor coming in at 86,774.

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 Brinks: 600,321.57 oz

ii) Into HSBC; 290,440.75 oz

Total customer deposits: 890,762.32 oz

we had 2 customer withdrawals:

i) Out of CNT: 29,742.73 oz

ii Out of Scotia: 30,693.62

Total withdrawals: 51,436.35 oz

We had 0 adjustments today.

Registered (dealer) silver: 44.235 million oz

Total of all silver: 170.209 million oz.

In gold:

Quote:

We had tiny activity in the Comex gold vaults today.

The dealer had 0 deposits and 0 dealer withdrawals today.

We had 0 customer deposits today.

Total customer deposits: nil oz.

We had 1 customer withdrawal:

i) out of Brinks: 96.45 oz (3 kilo bars)

Total Customer withdrawals: 96.45 oz

Today we had 0 adjustments.

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

JPM dealer inventory rests tonight at 234,450.395: oz or 7.292 tonnes

JPM customer inventory rests tonight at: 528,215.620 oz or 16.429 tonnes

Today, 0 notices were issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 0 contracts of which 0 notices were stopped (received) by the JPMorgan dealer (house account) and 0 notices were stopped by JPMorgan's customer account. The total dealer Comex gold remains fallen badly tonight at 658,443.045 oz or 20.48 tonnes of gold. The total of all Comex gold (dealer and customer) remains at 7,155.237 oz or 222.55 tonnes.

Tonight, we still have the continuing disturbing piece of news concerning the low dealer gold inventory for our 3 major bullion banks (Scotia, HSBC and JPMorgan). These 3 dealer gold inventory falls tonight to 16.425 tonnes:

i) Scotia: 162,121.611 oz or 5.043 tonnes

ii) HSBC: 131,673.323. oz or 4.09 tonnes

iii) JPMorgan: 234,450.395 oz or 7.292 tonnes

Total: 16.425 tonnes

Brinks dealer account which did have the lion's share of the dealer gold saw its inventory level remain constant tonight at 116,927.48 oz or 3.63 tonnes. A few months ago they had over 13 tonnes of gold at its registered or dealer account.

Delivery Notices

In silver:

Quote:

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

In gold:

Quote:

Today we had 0 notices served upon our longs for nil oz of gold.

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

In silver:

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

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

In silver:

Quote:

To calculate what will stand for this active delivery month of November, I take the number of contracts served for the entire month at 63 x 5,000 oz per contract = 315,000 oz to which I add the difference between the OI standing for November (14) and the notices served today (1) x 5000 oz = 380,000 oz

In summary:

63 contracts x 5000 oz per contract (served) or 315,000 oz + (14 - 1 ) x 5000 oz = 380,000 oz

We gained 1 contract or an additional 5,000 oz will stand for the November delivery month.

In gold:

Quote:

In order to calculate what will standing for delivery in November, I take the total number of notices served (0) x 100 oz per contract to give us nil oz served from which add the difference between the OI standing for November (13) minus the number of contracts served today (0) x 100 oz per contract

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

0 notices x 100 oz per contracts already served this month or nil oz + (13- 0) x 100 oz = 1300 oz or.0404 tonnes of gold.

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

i) the total dealer inventory of gold remains tonight at a very dangerously low level of only 20.48 tonnes

ii) a) JPMorgan's customer inventory rests tonight at 528,215.620 (16.429 tonnes) This inventory will drop once the notices are filled from the JPMorgan customer account

ii) b) JPMorgan's dealer account rests tonight at 234,450.395 oz

iii) the 3 major bullion banks have collectively only 16.425 tonnes of gold left in their dealer accounts.(JPMorgan, HSBC, Scotia) and no gold is entering the dealer Comex vaults. The fireworks will begin in earnest in December once this huge delivery month is upon us.

Select Commodity Prices

The Bloomberg Baltic Dry Index (BDI) was 1,600, up 3.09%. WTI December crude was 93.75 down 0.74. Brent crude was 105.33 down 0.90. The spread between Brent and WTI was 11.58 down 0.16. The 30 year US Treasury bond was up 0.0700 at 3.7600. The 10 year T-Note was up 0.0600 at 2.6600. The dollar was up 0.11 at 80.69. The PPT/Dow was 15618.22 down 20.90. Silver closed at 21.71 up 0.05. The GSR was 60.4284 down 0.2641 oz of silver per oz of gold. CIA's Facebook was 50.11 up 1.89 (3.92%). December wheat was down 6.75 at 656.000. December corn was down 1.25 at 425.00. December lean hogs were down 0.075 at 88.250. January feeder cattle were up 1.225 at 165.075. December copper was up 0.006 at 3.259. December natural gas was up 0.021 at 3.466. December coal was up 0.03 at 54.21.

Thank you for reading the Harvey Report!

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

Goooood day!

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

Tue, Nov 5, 2013 - 10:22pm
Mr. Fix
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Simply put, he concludes,

"you know when this ends, it's gonna get ugly."

Seems like I've heard something like that somewhere before.

Nice job DayStar, your thread is amongst the most informative on the Internet.
"When the student is ready, the teacher will appear."
Tue, Nov 5, 2013 - 10:32pm Mr. Fix
BagOfGold
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Yes...Daystar is a survivor!...

Mr. Fix wrote:

"you know when this ends, it's gonna get ugly."

Seems like I've heard something like that somewhere before.

Nice job DayStar, your thread is amongst the most informative on the Internet.

For years...Daystar has helped folks to help themseleves!...The horns of the presstitutes is deafening...but the "sweet sound"...will prevail..The sheep are waking up...hopefully it's not too late!!!...


Bag Of Gold

Wed, Nov 6, 2013 - 8:47am BagOfGold
DayStar
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RE: Survivor

Thanks, BOG and Mr. Fix. I am trying to help people, but that does not guarantee my survival. I am at risk, just like everyone else. I am glad you find Harvey helpful. It seems like Harvey is attracting a growing number of readers. Digests have always been popular for readers interested in a particular venue. We are going to miss this ready availability of information when the system goes down.

DayStar

Wed, Nov 6, 2013 - 10:34am DayStar
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"The sheep are waking

Sorry .. .repeat...don't know how to delete a post.

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