Good evening Ladies and Gentlemen:
Here are the following closes for gold and silver today:
Gold: $1194.10 up $5.80 (comex closing time)
Silver $16.78 up 2 cents (comex closing time)
In the access market 5:15 pm
Gold $1193.50
Silver: $16.79
Gold/Silver trading: see kitco charts on the right side of the commentary
Following is a brief outline on gold and silver comex figures for today:
At the gold comex today, we had a good delivery day, registering 2,468 notices serviced for 246,800 oz. Silver comex filed with 0 notices for nil oz.
Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 245.32 tonnes for a loss of 57 tonnes over that period.
In silver, the open interest rose by 675 contracts despite the fact that Monday’s silver price was down by 2 cents. The total silver OI continues to remain extremely high with today’s reading at 178,179 contracts maintaining itself near multi-year highs despite a record low price. This dichotomy has been happening now for quite a while and defies logic. There is no doubt that the silver situation is scaring our bankers to no end.
In silver we had 0 notices served upon for nil oz.
In gold, the total comex gold OI rests tonight at 398,456 for a gain of 737 contracts as gold was down $1.10 on Monday. Whenever we approach first day notice, the entire open interest for the gold or silver complex collapses as does the amount of gold/silver OI standing in the front active delivery month.
Today, we had no change in inventory at the GLD, thus the inventory rests tonight at 714.07 tonnes. The appetite for gold coming from China is depleting not only gold from the LBMA and GLD but also the comex is bleeding gold.
In silver, /we had a huge addition of 1.243 million oz in silver inventory at the SLV/Inventory rests at 318.313 million oz
We have a few important stories to bring to your attention today…
1. Today, had the open interest in silver rise by 675 contracts despite the fact that silver was down in price by 2 cents yesterday. The OI for gold rose by 737 contracts up to 398,456 contracts as the price of gold was down by $1.10 on Monday. We again witness the collapse in the front month OI for no apparent reason.
(report Harvey)
2,Today we have 3 major commentaries on Greece. The first two deal with the ongoing negotiations trying to salvage a deal to release about 7 billion euros of original bail out money. The last commentary deals with Greece abandoning the west and joining Russia with the building of the Southstream gas pipeline through Greece.
(zero hedge )
3. Bill Holter’s topic today: “Did you hear about this?”
(Bill Holter/Holter/Sinclair collaboration)
4 Koos Jansen comments on the lack of evidence of audit reports on Fort Knox gold
(Koos Jansen)
5. Two stories on today’s dollar flash crash
(zero hedge)
6. German bunds falter badly in price (yields rise dramatically). Not sure if this was market driven or orchestrated by the ECB
(zero hedge)
7. HSBC is now facing $34 billion in civil actions on phony asset backed mortgages
(reuters)
8. Arthur Berman states that unless OPEC cuts production oil will falter in price shortly
(Arthur Berman/OilPrice.com)
9.USA factory orders falter
(zero hedge)
10. Precious metals trading overnight from Asia/Europe
(Goldcore)
11. Trading from Asia and Europe overnight
(zero hedge)
12. Trading of equities/ New York
(zero hedge)
we have these plus other stories to bring your way tonight. But first……..
let us now head over to the comex and assess trading over there today.
Here are today’s comex results:
The total gold comex open interest rose by 737 contracts from 397,719 up to 398,456 as gold was down by $1.10 yesterday (at the comex close). For at least the past 18 months, we have been witnessing a total contraction of open interest in an active precious metals month once we are about to enter first day notice as well as the dumping of front month open interest, once we surpass first day notice, and today the tradition continues. We are now in the big active delivery contract month of June. Here the OI fell by 447 contracts down to 5,088. We had only 3 notices served upon yesterday. Thus we lost 444 contracts or an additional 44,400 oz will not stand for delivery. No doubt, again, we had a huge number of cash settlements. The next contract month is July and here the OI fell by 12 contracts down to 467. The next big delivery month after June will be August and here the OI rose by 756 contracts to 258,720. The estimated volume today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was poor at 68,767. The confirmed volume yesterday (which includes the volume during regular business hours + access market sales the previous day) was poor at 177,390 contracts. Today we had 2,468 notices filed for 246,800 oz.
And now for the wild silver comex results. Silver OI rose by 675 contracts from 177,504 up to 178,179 despite the fact that the price of silver was down in price by 2 cents, with respect to Monday’s trading. The front non active delivery month of June saw it’s OI rise by 1 contract up to 33. We had 2 contracts delivered upon yesterday. Thus we gained 3 contracts or an additional 15,000 oz will stand for delivery in this non active June contract month. The estimated volume today was poor at 21,069 contracts (just comex sales during regular business hours. The confirmed volume yesterday (regular plus access market) came in at 61,135 contracts which is very good in volume. We had 0 notices filed for nil oz today.
June initial standing
June 2.2015
Gold
Ounces
Withdrawals from Dealers Inventory in oz
nil
Withdrawals from Customer Inventory in oz
16,075.000 oz (Delaware) 500 kilobars
Deposits to the Dealer Inventory in oz
nil
Deposits to the Customer Inventory, in oz
32,001.17 oz (HSBC)
No of oz served (contracts) today
2468 contracts (246,800 oz)
No of oz to be served (notices)
2620 contracts (262,000 oz)
Total monthly oz gold served (contracts) so far this month
2514 contracts(251,400 oz)
Total accumulative withdrawals of gold from the Dealers inventory this month
nil
Total accumulative withdrawal of gold from the Customer inventory this month
17,455.60 oz
Today, we had 0 dealer transactions
total Dealer withdrawals: nil oz
we had 0 dealer deposit
total dealer deposit: nil oz
we had 1 customer withdrawals
i) Out of Scotia 16,075.000 oz (500 kilobars)
total customer withdrawal: 16,075.000 oz
We had 1 customer deposit:
i) Into HSBC; 32,001.17 oz
Total customer deposit: 32,001.17 oz oz
We had 1 adjustment:
i) Out of JPMorgan; a monstrous 177,408.492 oz was adjusted out of the customer and this landed in the dealer account of JPMorgan. This will no doubt be used in the settling process.
Today, 2468 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 2468 contracts of which 0 notices were stopped (received) by JPMorgan dealer and 422 notices were stopped (received) by JPMorgan customer account
To calculate the total number of gold ounces standing for the May contract month, we take the total number of notices filed so far for the month (2514) x 100 oz or 251,400 oz , to which we add the difference between the open interest for the front month of June (5088) and the number of notice served upon today (2468) x 100 oz equals the number of ounces standing.
Thus the initial standings for gold for the June contract month:
No of notices served so far (2514) x 100 oz or ounces + {OI for the front month (5088) – the number of notices served upon today (2468) x 100 oz which equals 513,400 oz standing so far in this month of June (15.968 tonnes of gold). Thus we have 15.968 tonnes of gold standing and only 17.04 tonnes of registered or for sale gold is available:
Total dealer inventory 547,860.327 or 17.04 tonnes
Total gold inventory (dealer and customer) = 7,887,348.464 (245.32 tonnes)
Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 245.32 tonnes for a loss of 57 tonnes over that period.
end
And now for silver
June silver initial standings
June 2 2015:
Silver
Ounces
Withdrawals from Dealers Inventory
114,943.64 oz (Scotia)
Withdrawals from Customer Inventory
30,805.23 oz (Scotia)
Deposits to the Dealer Inventory
nil
Deposits to the Customer Inventory
22,054.500 oz (Delaware,CNT)
No of oz served (contracts)
0 contracts (nil oz)
No of oz to be served (notices)
33 contracts(165,000 oz)
Total monthly oz silver served (contracts)
199 contracts (995,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month
114,943.6
Total accumulative withdrawal of silver from the Customer inventory this month
64,048.0 oz
Today, we had 0 deposits into the dealer account:
total dealer deposit: nil oz
we had 1 dealer withdrawal:
i) Out of Scotia: 114,943.64 oz
total dealer withdrawal: 114,943.64 oz
We had 2 customer deposits:
i) Into Delaware; 2966.900 oz
ii) Into CNT 19,087.600 oz
total customer deposit: 22,054.500 oz
We had 1 customer withdrawal:
i) Out of Scotia: 30,805.23 oz
total withdrawals from customer; 30.805.23 oz
we had 0 adjustments
Total dealer inventory: 58.189 million oz
Total of all silver inventory (dealer and customer) 179.789 million oz
The total number of notices filed today is represented by 0 contracts for nil oz. To calculate the number of silver ounces that will stand for delivery in June, we take the total number of notices filed for the month so far at (199) x 5,000 oz = 995,000 oz to which we add the difference between the open interest for the front month of June (33) and the number of notices served upon today (0) x 5000 oz equals the number of ounces standing.
Thus the initial standings for silver for the June contract month:
199 (notices served so far) + { OI for front month of June (33) -number of notices served upon today (0} x 5000 oz = 1,160,000 oz of silver standing for the June contract month.
we gained 3 contracts or an additional 15,000 oz will stand for delivery in this month of June.
for those wishing to see the rest of data today see:
http://www.harveyorgan.wordpress.com orhttp://www.harveyorganblog.com
end
The two ETF’s that I follow are the GLD and SLV. You must be very careful in trading these vehicles as these funds do not have any beneficial gold or silver behind them. They probably have only paper claims and when the dust settles, on a collapse, there will be countless class action lawsuits trying to recover your lost investment.
There is now evidence that the GLD and SLV are paper settling on the comex.
***I do not think that the GLD will head to zero as we still have some GLD shareholders who think that gold is the right vehicle to be in even though they do not understand the difference between paper gold and physical gold. I can visualize demand coming to the buyers side:
i) demand from paper gold shareholders
ii) demand from the bankers who then redeem for gold to send this gold onto China
vs no sellers of GLD paper.
And now the Gold inventory at the GLD:
June 2/no change in gold inventory at the GLD/Inventory rests at 714.07 tonnes
June 1/ we had a huge withdrawal of 1.79 tonnes of gold from the GLD/Inventory rests tonight at 714.07 tonnes
May 29/ no changes in gold inventory at the GLD/Inventory rests at 715.86 tonnes
May 28/ no changes in gold inventory at the GLD/Inventory rests at 715.86 tonnes
may 27: no changes in gold inventory at the GLD/Inventory rests at 715.86 tonnes
may 26.2015/we had a slight addition of .600 tonnes of gold to the GLD inventory/inventory rests at 715.86 tonnes
May 22.2015: no changes in gold inventory at the GLD/Inventory rests at 715.26 tonnes
May 21./no changes in gold inventory at the GLD/Inventory rests at 715.26 tonnes
May 20./we had another withdrawal of 2.98 tonnes of gold leaving the GLD. Inventory rests tonight at 715.26 tonnes
May 19/no changes in gold inventory at the GLD/Inventory at 718.24 tonnes
June 2 GLD : 714.07 tonnes.
end
And now for silver (SLV)
June 2/ we had a huge addition of 1.243 million oz of silver inventory at the SLV./Inventory rests at 318.313 million oz
June 1/no change in inventory at the SLV/Inventory rests at 317.07 million oz
May 29/no changes in inventory at the SLV/Inventory rests at 317.07 million oz
May 28/a small deposit of 143,000 oz of silver added to the SLV/Inventory rests at 317.070 million oz
May 27/we had another 1.003 million oz withdrawn from the SLV/Inventory rests tonight at 316.927 million oz
May 26.2015: no change in SLV /Inventory rests at 317.93 million oz
May 22.2015: no changes in SLV/Inventory rests at 317.93 million oz
May 21.no changes at the SLV/Inventory rests at 317.93 million oz
May 20/no changes at the SLV. Inventory rests at 317.93 million oz/
June 2/2015: a huge deposit of 1.243 million oz of inventory/SLV inventory at 318.313 million oz/
end
And now for our premiums to NAV for the funds I follow:
Sprott and Central Fund of Canada.
(both of these funds have 100% physical metal behind them and unencumbered and I can vouch for that)
1. Central Fund of Canada: traded at Negative 8.4% percent to NAV in usa funds and Negative 8.5% to NAV for Cdn funds!!!!!!!
Percentage of fund in gold 61.2%
Percentage of fund in silver:38.5%
cash .3%
( June 2/2015)
2. Sprott silver fund (PSLV): Premium to NAV falls to-0.31%!!!!! NAV (June 2/2015)
3. Sprott gold fund (PHYS): premium to NAV rises to -29% to NAV(June 2/2015
Note: Sprott silver trust back into negative territory at -0.31%.
Sprott physical gold trust is back into negative territory at -.29%
Central fund of Canada’s is still in jail.
Last week Sprott formally launches its offer for Central Trust gold and Silver Bullion trust:
SII.CN Sprott formally launches previously announced offers to Central GoldTrust (GTU.UT.CN) and Silver Bullion Trust (SBT.UT.CN) unitholders (C$2.64)
Sprott Asset Management has formally commenced its offers to acquire all of the outstanding units of Central GoldTrust and Silver Bullion Trust, respectively, on a NAV to NAV exchange basis.
Note company announced its intent to make the offer on 23-Apr-15 Based on the NAV per unit of Sprott Physical Gold Trust $9.98 and Central GoldTrust $44.36 on 22-May, a unitholder would receive 4.45 Sprott Physical Gold Trust units for each Central GoldTrust unit tendered in the Offer.
Based on the NAV per unit of Sprott Physical Silver Trust $6.66 and Silver Bullion Trust $10.00 on 22-May, a unitholder would receive 1.50 Sprott Physical Silver Trust units for each Silver Bullion Trust unit tendered in the Offer.
* * * * *
end
Early morning trading from Asia and Europe last night:
Gold and silver trading from Europe overnight/and important physical
stories
(courtesy Mark O’Byrne/Goldcore)
Greece Government Favours Drachma – Vows Will Not “Bow to Blackmail”
By mariasuttJune 2, 20150 Comments
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– Merkel, Hollande, Juncker, Lagarde and Draghi in “emergency” meeting re Greece
– Bankrupt Greece must find €1.6 billion to pay IMF in June
– First instalment of €300 million due on Friday
– Leaders of EU, IMF and ECB hold emergency summit in Brussels
– 58% of Syriza membership in favour of returning to Drachma
– Unforeseeable consequences and risks of ‘Grexit’
An emergency meeting was held in Berlin last night between Angela Merkel, Francois Hollande, EU Commission President Junker, Christine Lagarde of the IMF and ECB president Mario Draghi. The meeting was reported to have continued past midnight.
The discussions were apparently aimed at formulating a “take it or leave it” offer that would be acceptable to the Syriza government that would allow the remaining €7 billion of the existing bailout package to be unlocked so that cash can be handed back to Greece’s creditors and avoid a default.
Greece, a country whose own finance minister has described it as “bankrupt” is due to pay the IMF €1.6 billion over the course of June. The first instalment of four – totalling €300 million is due this Friday.
There were fears that the country would not be able to pay its public sector wages in May demonstrating the very fragile state of its finances. It would appear that the European leadership and that of the IMF and ECB also fear the state of Greece’s finances and its ability to make its payments to the IMF this month.
A recent poll suggests that 58% of Syriza supporters would rather return to the Drachma than to remain in the single currency while severe austerity measures are imposed. Syriza have a 26 point lead over the next most popular party, New Democracy.
From this point of view it is, therefore, not entirely politically untenable for Syriza to choose the default and exit option should the “institutions” fail to respect Prime Minister Tsipras’s “red line” on VAT hikes, pension cuts and labour market reforms.
Greek 10-year bond yields have been creeping higher – currently at 11.49% – indicating that the markets view the risk of a default as being quite high.
The “institutions”, however, are likely to want to keep Greece in the fold at any cost. In a softening of tone Junker told German newspaper Süddeutsche Zeitung yesterday:
“Anyone who doesn’t see there is a humanitarian crisis in Greece is deaf and blind to what is happening there.”
The unforeseeable risks posed by a default and “Grexit” to the Euro project are too great for the powers that be to wilfully allow it to happen. It could trigger credit default swaps and a derivatives crisis in the banking system.
It might also lead to a geopolitical crisis should erstwhile NATO member Greece turn to Russia for financial assistance in the form of funding, trade, economic and other cooperation agreements.
The consequences of making an acceptable offer to Greece may also be unforeseeable. In the short term it may buy time but in the longer term it is hard to see how Greece can come off life-support without a large scale write-off of some of its debts.
It may also embolden anti-austerity groups across Europe, particularly those in heavily indebted Italy and Spain.
The threats posed by the Greek situation to the euro – and indeed the threat posed by the entire European economic situation to the euro – make holding gold outside the banking system a vital form of financial insurance.
History and recent academic studies show that gold protects wealth from financial and economic risks.
MARKET UPDATE
Today’s AM LBMA Gold Price was USD 1,188.75, EUR 1,083.17 and GBP 779.91 per ounce.
Yesterday’s AM LBMA Gold Price was USD 1,187.30, EUR 1,088.29 and GBP 780.40 per ounce.
Gold fell $0.40 or 0.03 percent yesterday to $1,189.30 an ounce. Silver rose $0.01 or 0.06 percent to $16.74 an ounce.
Gold in Singapore for immediate delivery was marginally lower at $1,189.30 an ounce while gold in Switzerland was also in lockdown and continued tethered to the $1,190 level.
Gold remains capped under the psychological $1,200 an ounce level. Gold saw a sharp rally yesterday to over $1,203.50 per ounce from $1,185 per ounce. Gold was up nearly $20 or 1.5% and on track for its biggest daily rise in more than a fortnight prior to determined selling which saw prices back to exactly where they had started – down 40 cents for the day.
Gold saw even greater gains in euro terms as the euro weakened due to concerns about Greece but the euro has strengthened today which has capped gold’s gains.
Some attributed gold’s sharp rally to U.S. Federal Reserve Vice Chairman Stanley Fischer’s dovish comments that it would be a mistake to assume that financial crises are at an end. However, if this was the case it is hard to fathom why gold suddenly reversed the move higher and then gave up the gains nearly as quickly as they had been gained.
Mixed economic data is not giving a clear picture of the U.S. economy. This week’s jobs figures on Friday will be watched closely for any clues on the interest rate hike long mooted by the Fed.
The largest gold backed ETF, SPDR Gold Trust holdings dipped yesterday by 0.25 percent to 714.07 tonnes its, the lowest since mid January.
Meetings continue between the IMF, ECB, German Chancellor Angela Merkel, French President Francois Hollande and Jean-Claude Juncker European Commission President to discuss a “final proposal” ahead of Greece’s deadline on Friday for its first€300 million payment due to the IMF.
In late European trading gold bullion is down 0.10 percent at $1,187.87 an ounce. Silver is off 0.43 percent at $16.67 an ounce. Platinum is up 0.21 percent at $1,106.10 an ounce while palladium is marginally lower at $776.10 per ounce.
Platinum is trading near an 11 week low, and is at a discount of $90 an ounce to gold, which is its cheapest to the yellow metal since January 2013.
Breaking News and Research Here
end
(courtesy Avery Goodman/Seeking Alpha)
Avery Goodman: Gold supply tightness spreads from London to New York
Submitted by cpowell on Mon, 2015-06-01 17:28. Section: Daily Dispatches
1:27p ET Monday, June 1, 2015
Dear Friend of GATA and Gold:
Tightness in the physical gold market seems to have spread from London to New York, securities lawyer Avery B. Goodman writes today, noting that more gold could be claimed for delivery in the June gold futures contract on the New York Commodities Exchange than there is registered gold in Comex warehouses, a circumstance that Goodman thinks may be unprecedented.
Goodman writes that a default on Comex contracts is unlikely because the U.S. government almost certainly would make gold available surreptitiously, perhaps through the secret gold swap arrangements whose arrangements the Federal Reserve confirmed, perhaps inadvertently, to GATA in 2009. But if the gold price is not allowed to rise significantly, Goodman adds, there will be bigger supply problems.
Goodman’s commentary is headlined “Gold Market Tightness Puts COMEX Clearing Members on the Edge Of Default” and it’s posted at Seeking Alpha here:
http://seekingalpha.com/article/3227026-gold-market-tightness-puts-comex…
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
end
As we have explained to you on many occasions…..
(courtesy Times of India)
To most Indians, gold paperization scheme has little appeal
Submitted by cpowell on Tue, 2015-06-02 01:06. Section: Daily Dispatches
Gold Monetisation Scheme May Not Attract Major Segment of Gold Owners
By Chandralekha Mukerji
The Times of India, Mumbai
Monday, June 1, 2015
http://economictimes.indiatimes.com/wealth/savings-centre/analysis/gold-…
The gold monetisation scheme aims to unlock the value of the common man’s gold jewellery lying idle in a locker. This is why the minimum deposit has been kept as low as 30 grams and returns have been made tax-free to sweeten the deal.
However, these may not be enough to lure people to park their gold in a scheme that offers 1 gram for every 100 in a year. The Times reached out to a cross-section of consumers and found they were not very enthused by the scheme.
Experts say the scheme will not appeal to major segments that invest in gold. Buyers of gold jewellery, for instance, won’t like to part with their ornaments.
All the gold that Jammu-based Jitendra has is in the form of jewellery for his wife Neha. “She uses that jewellery, so the 1-2% return offered by the scheme is irrelevant for a small investor like me,” he says.
Also, gold jewellery, especially inherited, has sentimental value and many won’t like to see it melted down.”People may still deposit the coins and bullion. However, convincing Indians, who think 10 times before even using their jewellery as collateral, to actually melt them for a minuscule return of 1-2% will be very difficult,” says Mimi Partha Sarathy, managing director of Sinhasi Consultants, a Bengaluru-based wealth management firm.
The melting part is a big put-off. Pune-based engineer Lahariya, 29, has 20% of his investment portfolio in gold, mostly jewellery. “Even though my wife uses it occasionally, I cannot put it in a scheme that requires me to melt it. It’s better lying idle in a locker,” says Lahariya.
But emotional attachment is only one factor.
The average gold investor is a conservative person who doesn’t like to part with his gold for a certificate from the bank. Bengaluru-based Lalitha Iyer, 56, who recently retired from Wipro, is a keen investor in real estate and gold.
“On the face of it, it looks like a good scheme. However, I’m concerned about the security and genuineness in case I want to redeem in it gold form at the end of the tenure,” says Iyer.
A bigger problem is that submitting your gold could open a can of tax worms. True, the bank will not ask any questions when you submit the gold. But this is not an amnesty scheme and the tax department might want to know if you have paid wealth tax on the gold in previous years.
Though wealth tax has been abolished, even inherited jewellery was liable to wealth tax until the previous financial year.
“People with significant gold holdings will be wary. After all, you are asking them to declare their assets at a bank which can be easily backtracked,” says Sumeet Vaid, founder & CEO at Freedom Financial Planners. “Most of the holdings are unaccounted with no purchase receipts, especially inherited items.
Even if the purchase is from accounted sources, investors do not usually keep receipts of purchase,” says Anil Rego, CEO and Founder, Right Horizons Wealth Planners.
Even so, this is a great opportunity for those who buy gold bullion as an investment. If you are the kind of person who buys gold coins and bars on a regular basis, you can use this scheme to enhance your returns. Just buy the gold and submit it to the bank.
This is precisely what Nashik-based Sandeep Kulkarni intends to do when buying gold for his baby daughter Adnika.
“Instead of buying jewellery for her, I will buy 24-carat gold bars and get 1-2% additional return on the investment,” he says.
As an investment, right now, it looks as if investment in the scheme will surely fetch a 1% higher price for every year that you keep the gold in the scheme. However, keep in mind that you will be getting the interest in the form of gold.
If the price of gold goes up, it’s very good for you because even the interest will go up (though marginally).
If the price is Rs 27,000 for 10 grams today and rises to Rs 30,000 by next year, the investor gets gold worth Rs 30,300.
If the value of gold falls, you lose in the same proportion.
If the price falls to Rs 25,000, you will get gold worth Rs 25,250.
end
Have fun with this:
(courtesy Koos Jansen)
Koos Jansen: U.S. government lost 7 Fort Knox gold audit reports
Submitted by cpowell on Tue, 2015-06-02 17:43. Section: Daily Dispatches
1:42p ET Tuesday, June 2, 2015
Dear Friend of GATA and Gold:
Seven of the official audits of the U.S. gold reserve have disappeared, or at least that’s what the U.S. government has told gold researcher and GATA consultant Koos Jansen, who filed freedom-of-information requests for access to them.
Jansen’s experience is reminiscent of GATA’s request to the Federal Reserve in 2009 for access to the Fed’s gold records. The Fed purported to be unable to find records GATA already had found on the Fed’s own Internet site and sought to conceal most other such records:
http://www.gata.org/node/9917
Jansen’s commentary is headlined “U.S. Government Lost 7 Fort Knox Gold Audit Reports” and it’s posted at Bullion Star here:
https://www.bullionstar.com/blogs/koos-jansen/us-government-lost-7-fort-…
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
end
(courtesy Dave Kranzler/IRD/GATA)
Dave Kranzler: Gold pops again — something ominous is brewing
Submitted by cpowell on Tue, 2015-06-02 15:22. Section: Daily Dispatches
11:20a ET Tuesday, June 2, 2015
Dear Friend of GATA and Gold:
Explanations by financial news organizations for movements in the markets increasingly make little sense, Dave Kranzler of Investment Research Dynamics writes today, particularly in the gold market.
“The unmistakable volatility in paper gold trading,” Kranzler writes, “reflects the dwindling supply of physical gold in Western vaults that can be used to deliver into the fraudulently conveyed paper claims being issued on the Comex and the LBMA.”
Kranzler’s commentary is headlined “Gold Pops Again — Something Ominous Is Brewing” and it’s posted at Investment Research Dynamics here:
http://investmentresearchdynamics.com/gold-pops-again-something-ominous-…
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
end
(courtesy John Embry/Kingworldnews/Eric King/GATA)
Embry, in KWN interview, sees three scenarios for monetary metals prices
Submitted by cpowell on Tue, 2015-06-02 15:35. Section: Daily Dispatches
11:35a ET Tuesday, June 2, 2015
Dear Friend of GATA and Gold:
Sprott Asset Management’s John Embry, interviewed today by King World News, offers three scenarios for monetary metals prices:
“They will either remain viciously suppressed, as they have been for nearly four years, or they will explode higher as the paper market suppression is finally overcome by the realities of the physical market,” Embry says. “We also cannot rule out an overnight resetting of the price of gold after China discloses its massive gold hoard to the world. The timing of all this is imprecise but it is getting inexorably closer by the day.”
An excerpt from the interview is posted at the KWN blog here:
http://kingworldnews.com/current-system-is-doomed-as-mainstream-media-di…
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
end
And now Bill Holter, with his important message to us:
Did you hear about this?
You really have to wonder how it is that so much is going on all around us yet almost nothing is being reported by the mainstream press. I know it is hard to do, but imagine yourself 20 or 30 years ago, could what is currently happening ever be “slept through” as it is today? Could markets have just snoozed it off as if nothing bad “could” happen?
For example, the U.S. economy is in another recession. The 1st quarter GDP was revised to show a decline of -.7%. Do you know why the number was not worse? Because the BLS used as a very “special” assumption, a NEGATIVE inflation rate, if they used just a 1% inflation rate, GDP would have reported negative 2% plus! But wait, the funny part is this, the Fed at the same time is again bringing up tightening interest rates. Again, imagining yourself 20-30 years ago, the speculation would be “when will the Fed begin to loosen” …and here is one of your problems, the Fed CANNOT do ANYTHING to turn up the economy. The Fed has fired all its bullets and cannot loosen further. Yes they can start up another QE (the opposite of what they are taking about now) but I believe even they fear the reaction this time around. What would they do if the selling pressure increased on the announcement of another QE? Can’t happen you say? I hope you’re right!
The Chinese stock market took an 11% nosedive over the last two days of the past week, did you hear about this? Is it “unimportant”? Or how about COMEX having 26 tons of gold standing for June delivery with only 11 tons currently on hand? You probably didn’t hear about this one because they will just cash “settle” (they have already begun as 2,800 contracts “disappeared” last night), nothing to see here, move along. How about David Cameron promising an “in or out” referendum pertaining to the British and the EU? Or the right wing in France demanding a similar referendum? Probably not important enough either?
Or how about this list; Goldman warns “too much debt” threatens the world economy… China places artillery on disputed South Sea islands… Margin debt 50% higher than last peak… Russia backs alternative to SWIFT… 5 billion euro bank run in Greece … or just plain old Greece? Even worse than all of these pieces of “real news” that didn’t make the news, did you hear about Yemen? Or more specifically a (or several) nukes were lit up? Yes, nuke(s) went off in Yemen late last week and the press (yawn) decided it wasn’t “newsworthy”.
Shifting gears just a bit, I want to bring up a topic I have not seen anyone even talk about. Do you remember last November when Congress, the Senate in particular was “shaken up”? “We” (the American people) threw the bums out! I can remember it vividly, Congress would now be able to hamstring a president running roughshod over the Constitution. I thought it might be a glimmer of hope …I thought WRONG! Has anything been done to reverse or retard Obamacare? The answer of course is no, nothing. I ask you this, what exactly did we get for our votes to evict the “bums”?… …How about Loretta Lynch! How did she get confirmed as Attorney General? As Ted Cruz said, “she looked Senators in the eye and told us she intends to disregard the law” http://www.breitbart.com/big-government/2015/04/24/exclusive-ted-cruz-loretta-lynch-was-confirmed-because-gop-establishment-wanted-her-to-be/ . I ask, was there even a purpose to the last election? Or better yet, once the financial system comes down and social unrest unleashes martial law, was that our LAST election?
I am not kidding here folks, the rule of law is gone in the U.S., our financial system is a totally rigged sham and people believe they are “wealthy”… are they really ? W e have zero press left to hold anyone’s feet to the fire or accountable for anything. More people now “take” than “pay” and we are so broke as a nation we can’t even afford to pay attention! What could possibly go wrong? The worst thing of all is if you were to bring up even one of the above “cluster bombs” at a summer BBQ, it is YOU who are the nutcase! Our Forefathers are in tears.
Regards, Bill Holter
Holter-Sinclair collaboration
end
And now overnight trading in stocks and currency in Europe and Asia
1 Chinese yuan vs USA dollar/yuan strengthens to 6.1981/Shanghai bourse green and Hang Sang: red
2 Nikkei closed down by 26.68 points or .13%
3. Europe stocks mostly in the red/USA dollar index down to 96.87/Euro rises to 1.1030/
3b Japan 10 year bond yield: slight rises to .42% !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 124.78/
3c Nikkei still just above 20,000
3d USA/Yen rate now well above the 124 barrier this morning
3e WTI 60.74 and Brent: 65.31
3f Gold up/Yen up
3gJapan is to buy the equivalent of 108 billion uSA dollars worth of bond per month or $1.3 trillion. Japan’s GDP equals 5 trillion usa.
Japan to buy 100% of all new Japanese debt and by 2018 they will have 25% of all Japanese debt. Fifty percent of Japanese budget financed with debt. Last night Japan refused to increase it’s QE
3h Oil up for WTI and up for Brent this morning
3i European bond buying continues to push yields lower on all fronts in the EMU. German 10 yr bund rises to 57 basis points. German bunds in negative yields from 4 years out.
Except Greece which sees its 2 year rate fall to 24.35%/Greek stocks down 0.79%/ still expect continual bank runs on Greek banks /Greek default inevitable/
3j Greek 10 year bond yield rises to: 11.42%
3k Gold at 1191.00 dollars/silver $16.72
3l USA vs Russian rouble; (Russian rouble falls 1/5 rouble/dollar in value) 53.27 , the rouble is still the best acting currency this year!!
3m oil into the 60 dollar handle for WTI and 65 handle for Brent/Saudi Arabia increases production to drive out competition.
3n Higher foreign deposits out of China sees huge risk of outflows and a currency depreciation. This can spell financial disaster for the rest of the world/China may be forced to do QE!!
30 SNB (Swiss National Bank) still intervening again in the markets driving down the SF. It is not working: USA/SF this morning .9402 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0371 well below the floor set by the Swiss Finance Minister.
3p Britain’s serious fraud squad investigating the Bank of England/
3r the 4 year German bund remains in negative territory with the 10 year moving still near negativity at +.57/
3s Four weeks ago, the ECB increased the ELA to Greece by another large 2.0 billion euros.Two weeks ago, they raised it another 1.1 billion and then last Wednesday they raised it another tiny 200 million euros thus at this point the new maximum was 80.2 billion euros. The ELA is used to replace depositors fleeing the Greek banking system. The bank runs are increasing exponentially. The ECB is contemplating cutting off the ELA which would be a death sentence to Greece and they are as well considering a 50% haircut to all Greek sovereign collateral which will totally wipe out the entire Gr. banking and financial sector.
3t Greece paid the 700 million plus payment to the IMF last Wednesday but with IMF reserve funds. It must be paid back in on June 9.
3 u. If the ECB cuts off Greece’s ELA they would have very little money left to function. So far, they have decided not to cut the ELA
4. USA 10 year treasury bond at 2.22% early this morning. Thirty year rate just below 3% at 2.98% / yield curve flatten/foreshadowing recession.
5. Details Ransquawk, Bloomberg, Deutsche bank/Jim Reid.
(courtesy Jim Reid/Bloomberg/Deutsche bank/zero hedge)
Futures Slide Then Rebound On Endless “Unnamed Source” Greek Chatter, Dollar Slides; China Surges
Once again it’s all about Greece, with the latest iteration of a “Greek deal is imminent” rumor making the rounds and, just like yesterday, sending futures in the green, just a little over an hour after the increasingly more illiquid E-mini future has slid 0.7%. The EUR, where the bulk of Virtu headline kneejerk reacting algos are to be found, has surged over 100 pips overnight on more hope and optimism.
The catalysts are several, including a Die Welt article repeating what we said last night, that there is now essentially an agreement among the Troika on the Greek proposal, as well as a Bloomberg note out earlier saying “representatives from creditor institutions said to be wrapping up proposal to end impasse on Greek bailout talks, two people familiar with the matter say.”
To be sure the note is about as vague as it gets, and it is still unclear whether proposal will allow for modifications, one of the people says. Creditors haven’t decided how proposal will be communicated; one possibility would be for French, German leaders to present offer to Greek PM Alexis Tsipras, one of the people says. Of course, the whole thing may well be just more EUR position squaring by “source” for Bloomberg, which like Reuters, also makes substantial profits from FX and market volatility due to its market making business. The punchline: “People asked not to be named as talks are private.“
None of this is new, and the song and dance are well known: Europe will not provide concessions out of concerns this may stoke “anti austerity” movements in Spain and Portugal, bond of whose bonds were seen tumbling earlier today, while Greece will ultimately cave but at the risk of a political crisis at home and new elections, thereby handing the victory over to the Troika. As such, best to observe from a distance.
In other overnight news, the SHCOMP was up another 1.7% overnight, and is almost back to its 8 year high of 4,986, with the CHINEXT index up 4.92% overnight and up 14% from Friday’s lows. Perfectly normal for a global asset bubble.
Elsewhere, Australia’s RBA keeps cash rate target steady at 2.00%; repeats lower AUD needed, policy needs to be accommodative.
In India the RBI cuts repo rate by 25bp to 7.25% as widely anticipated; cash reserve ratio unchanged at 4.0%
BoJ’s Kuroda discussed global economy in meeting with PM Abe, did not discuss FX, reiterates FX levels must reflect fundamentals and stay stable; Separately finmin Aso repeats that currency moves are being watched closely.
A closer look at European markets shows that Bunds have continued to extend on yesterday’s US data-inspired losses with the latest comments surrounding Greece appearing to offer a more promising outlook for negotiations. More specifically, EU’s Moscovici has said that he has observed ‘real progress’ concerning negotiations with Greece with these comments coming in the backdrop of source reports yesterday that EU officials were going to meet to discuss potential agreements and further plans for Greece, aiming to unveil a plan in the coming days. From a technical perspective, the move lower in Bunds has seen the German 10yr yield break above 0.6% to reach its highest level in a week.
Volumes in Bunds are relatively heavy with 450k contracts having gone through already against the 15-day average of 748k with analysts at IFR also noting real money sellers in both USTs and Bunds of notable size adding to existing shorts and/or cutting duration. From a fundamental perspective, other than slightly more upbeat Greek headlines, today also sees a syndication from Spain with books already said to be in excess of EUR 9.5bln. Data has also been better than expected with Eurozone CPI and UK construction PMI weighing on Gilts.
From an equity stand-point despite starting the session off relatively directionless, stocks in Europe have taken a turn lower after being subject to technical selling with the DAX breaking below its 100DMA at 11357.79 and the FTSE 100 taking out its low seen last week. On a sector specific basis, consumer staples are the underperforming sector with British American Tobacco trading lower amid reports of a potential GBP 5.5bln lawsuit with Pernod Ricard in the red after their latest market update.
In FX, the DXY is sliding and the USD is broadly weaker today with gains in the EUR seeing the greenback give back some of yesterday’s gains. The EUR has benefitted from a combination of the aforementioned Greek optimism and higher European yields, while the latest Eurozone CPI data also showed an uptick and beat expectations (0.3% vs. Exp. 0.2%, Prev. 0.0%). GBP has also gained some ground this morning against the USD following better than expected construction PMI data (55.9 vs. Exp. 55.0). Elsewhere, AUD has managed to hold onto its gains in the wake of the RBA rate decision whereby the central bank kept rates on hold as expected and failed to offer any explicit easing bias.
In the commodity complex, both WTI and Brent crude futures have been provided a boost by the weaker USD heading into Friday’s OPEC meeting with the cartel widely expected to stand pat on their current production target given the recent rebound seen in oil prices. In metals markets, spot gold and spot silver trade relatively unchanged while Copper prices have risen in a rebounded from yesterday’s lows.
Looking ahead, today sees the release of US Factory Orders, API Crude Inventories and potential comments from Fed’s Brainard
Bulletin Headline Summary from Bloomberg and RanSquawk
Bunds have continued to slide in the wake of recent Greek headlines, with Eurozone CPI topping expectations and the German 10yr yield breaking above 0.6%
Higher European yields have supported EUR and as such has dampened sentiment for European equities
Treasuries decline, extending losses seen after yesterday’s better than forecast ISM Manufacturing and as IG issuers priced $10.525b including $2.5b 100Y from Petrobras.
Representatives from Greece’s creditors are meeting to wrap up new proposal aimed at breaking a deadlock for disbursement of new bailout funds, according to people familiar
Creditors haven’t yet decided whether they will allow the new proposal to be modified; also being debated is the manner in which it would be presented to Greece
PM Tsipras said Greece has submitted its own proposal last night; “We are not waiting for them to submit their own plan back to us,” Tsipras told reporters yesterday. “Greece is the one that submits the plan”
Euro area consumer prices rose 0.3% in May, more than expected and the first increase in six months
India’s central bank lowered rates for a third time this year and said it’d wait to assess monsoon rains before acting again, an outlook that disappointed investors looking for more cuts to spur weak economic growth
In a sign of the tumult in the health insurance industry under Obamacare, companies are seeking wildly differing rate increases in premiums for 2016, with some as high as 85%, according to information released by federal government: NYT
HSBC Holdings Plc will announce a plan next week to cut thousands of jobs, Sky News reported, citing unidentified people close to the matter
Sovereign 10Y bond yields higher. Asian, European stocks lower, U.S. equity-index futures decline. Crude oil gains, copper and gold fall
DB’s Jim Reid concludes the overnight wrap:
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