Good evening Ladies and Gentlemen:
Here are the following closes for gold and silver today:
Gold: $1172.60 down $3.60(comex closing time)
Silver $15.84 up 11 cents.
In the access market 5:15 pm
Gold $1175.00
Silver: $15.90
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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 poor delivery day, registering 1 notice serviced for 100 oz. Silver comex filed with 1 notice for 5,000 oz. Remember we are entering options expiry week: This Thursday, the comex gold and silver expires and then next Tuesday, we have options expiry on the gold/silver LBMA contracts and on the OTC contracts. So gold and silver will be subdued in price until Tuesday night.
Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 245.07 tonnes for a loss of 57 tonnes over that period.
In silver, the open interest rose hugely again by 4909 contracts despite yesterday’s huge price decline of 41 cents. The total silver OI continues to remain extremely high, with today’s reading at 200,273 contracts now at decade highs despite a record low price. In ounces, the OI is represented by 1.001 billion oz or 142% of annual global silver production (ex Russia ex China). 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 as they continue to raid as basically they have no other alternative. There can only be one answer as to how the OI of comex silver is now over 1 billion oz coupled with a low price under 16.00 dollars: sovereign China through proxies are the long and they have extremely deep pockets.
In silver we had 1 notice served upon for 5,000 oz.
In gold, the total comex gold OI rests tonight at 430,978 for a gain of 11,084 contracts as gold was down $7.50 yesterday. We had 1 notice filed for 100 oz.
we had another addition of .900 tonnes in gold inventory at the GLD; thus the inventory rests tonight at 706.37 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. I am sure that 700 tonnes is the rock bottom inventory in gold. Anything below this level is just paper and the bankers know that they cannot retrieve “paper gold” to send it onwards to China.In silver, /we had no change in inventory at the SLV Inventory now rests at 326.918 million oz
We have a few important stories to bring to your attention today…
1. Today, we had the open interest in silver rise by 4909 contracts to 200,273 despite the fact that silver was down considerably yesterday to the tune of 41 cents.. The OI for gold rose by 11,094 contracts up to 430,978 contracts as the price of gold was down $7.50 yesterday.
(report Harvey)
2. Today, 6 important commentaries on Greece
(zero hedge, Reuters/Bloomberg)
3.the silver fraud at the comex
(Dave Kranzler IRD)
4. Gold trading overnight
(Goldcore/Mark O’Byrne)
5. Trading from Asia and Europe overnight
(zero hedge)
6. Trading of equities/ New York
(zero hedge)
7. Ron Paul warns the USA if they confiscate Russian assets
(Ron Paul)
8. Data on final figures for first quarter GDP
(zero hedge)
9 Russia strikes back by vacating all discounts on gas to the Ukraine.
(zero hedge)
10. French unemployment rises again
(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 appreciably by 11,094 contracts from 419,884 down to 430,978 despite the fact that gold was down $7.50 in price yesterday (at the comex close). We are now in the big active delivery contract month of June. Here the OI fell by 38 contracts down to 369. We had 0 notices served upon yesterday. Thus we lost 38 contracts or an additional 3,800 oz will not stand for delivery as they were no doubt cash settled. The next contract month is July and here the OI fall by 60 contracts to 601. The next big delivery month after June will be August and here the OI rose by 7,195 contracts up to 278,660. The estimated volume today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was poor at 76,495. The confirmed volume yesterday (which includes the volume during regular business hours + access market sales the previous day was poor at 129,521 contracts. Today we had 1 notice filed for 100 oz.
And now for the wild silver comex results. Silver OI rose by a gigantic 4,909 contracts from 195,364 up to 200,273 despite the fact that the price of silver was down sharply in price by 41 cents, with respect to yesterday’s trading. We continue to have our bankers pulling their hair out with respect to the continued high silver OI. The front non active delivery month of June saw it’s OI fall 49 contracts to 24 contracts. We had 51 contracts delivered upon yesterday. Thus we gained 2 silver contracts or an additional 10,000 oz will stand for delivery in this non active June contract month. The next delivery month is July and here the OI surprisingly fell by only 12,977 contracts down to 55,067. We have 4 trading days left before first day notice on June 30 and the front month is not contracting much in volume at all.The next major active delivery month is September and here the OI rose by a huge 12,977 contracts. So far, for the first time we are not witnessing the collapse of OI in an active delivery month. The estimated volume today was good at 37,016 contracts (just comex sales during regular business hours. The confirmed volume on yesterday (regular plus access market) came in at 114,586 contracts which is huge in volume. However we had many rollovers. We had 1 notice filed for 5,000 oz today.
June initial standing
June 24.2015
Gold
Ounces
Withdrawals from Dealers Inventory in oz
nil
Withdrawals from Customer Inventory in oz
3407.900 oz (Manfra,Scotia)
Deposits to the Dealer Inventory in oz
700.000 oz Brinks?????
Deposits to the Customer Inventory, in oz
nil
No of oz served (contracts) today
1 contracts (100 oz)
No of oz to be served (notices)
368 contracts (36,800 oz)
Total monthly oz gold served (contracts) so far this month
2690 contracts(269,000 oz)
Total accumulative withdrawals of gold from the Dealers inventory this month
99.93 oz
Total accumulative withdrawal of gold from the Customer inventory this month
525,250.1 oz
Today, we had 1 dealer transaction
Dealer withdrawal:
we had zero dealer withdrawals
total Dealer withdrawals: nil oz
we had 1 dealer deposit
i) Into Brinks: 7,000.000 oz???? how can this be possible???
total dealer deposit: 7,000.000 oz
we had 2 customer withdrawal
i) Out of Scotia: 3215.000 oz (100 kilobars)
ii) Out of Manfra: 192.90 oz (6 kilobars)
total customer withdrawal:3407.900 oz (106 kilobars)
We had 0 customer deposits:
Total customer deposit: nil oz
We had 0 adjustments:
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 contracts of which 0 notices were stopped (received) by JPMorgan dealer and 1 notices were stopped (received) by JPMorgan customer account
To calculate the total number of gold ounces standing for the June contract month, we take the total number of notices filed so far for the month (2690) x 100 oz or 269,000 oz , to which we add the difference between the open interest for the front month of June (369) and the number of notices served upon today (1) 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 (2690) x 100 oz or ounces + {OI for the front month (369) – the number of notices served upon today (1) x 100 oz which equals 305,800 oz standing so far in this month of June (9.511 tonnes of gold). Thus we have 9.5111 tonnes of gold standing and only 16.07 tonnes of registered or for sale gold is available. We lost 38 contracts or 3,800 oz to probable cash settlements.
Total dealer inventory 517,422.669 or 16.09 tonnes
Total gold inventory (dealer and customer) = 7,898,336.053 oz or 245.07 tonnes
Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 245.07 tonnes for a loss of 57 tonnes over that period.
end
And now for silver
June silver initial standings
June 24 2015:
Silver
Ounces
Withdrawals from Dealers Inventory
nil
Withdrawals from Customer Inventory
nil
Deposits to the Dealer Inventory
nil
Deposits to the Customer Inventory
nil
No of oz served (contracts)
1 contracts (5,000 oz)
No of oz to be served (notices)
23 contracts(115,000 oz)
Total monthly oz silver served (contracts)
274 contracts 13,655,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month
526,732.4 oz
Total accumulative withdrawal of silver from the Customer inventory this month
5,575,143.2 oz
Today, we had 0 deposits into the dealer account:
total dealer deposit: nil oz
we had 0 dealer withdrawal:
total dealer withdrawal: nil oz
We had 0 customer deposits:
total customer deposit: nil oz
We had 0 customer withdrawals:
total withdrawals from customer;nil oz
we had 0 adjustments
Total dealer inventory: 57.840 million oz
Total of all silver inventory (dealer and customer) 181.117 million oz
The total number of notices filed today is represented by 1 contracts for 5,000 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 (274) x 5,000 oz = 13,700,000 oz to which we add the difference between the open interest for the front month of June (24) and the number of notices served upon today (1) x 5000 oz equals the number of ounces standing.
Thus the initial standings for silver for the June contract month:
274 (notices served so far) + { OI for front month of June (24) -number of notices served upon today (1} x 5000 oz ,= 13,815,000 oz of silver standing for the June contract month.
we gained 2 contracts or an additional 10,000 oz will stand for delivery in this non active delivery month of June.
for those wishing to see the rest of data today see:
http://www.harveyorgan.wordpress.comorhttp://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 24/ a good addition of.900 tonnes of gold into the GLD/Inventory rests at 706.37 tonnes
June 23/no change in gold inventory/rests tonight at 705.47 tonnes
June 22/ a huge increase of 3.27 tonnes of gold into GLD/Inventory tonight: 705.47 tonnes
June 19.2015: no change in gold inventory/rests tonight at 701.90 tonnes.
June 18/no change in gold inventory/rests tonight at 701.90 tonnes
June 17/no change in gold inventory/rests tonight at 701.90 tonnes
June 16./no change in gold inventory/Rests tonight at 701.90 tonnes.
June 15/we lost a huge 2.08 tonnes of gold from the GLD/Inventor rests tonight at 701.90 tonnes
June 12/we had a small withdrawal of .24 tonnes of gold from the GLD/Inventory rests this weekend at 703.98 tonnes.
June 11/we had another huge withdrawal of 1.5 tonnes of gold from the GLD/Inventory rests tonight at 704.22 tonnes
June 10/ we had a huge withdrawal of 2.98 tonnes of gold from the GLD/inventory rests at 705.72
June 9/ no change in gold inventory at the GLD/Inventory rests at 708.70 tonnes
June 8/ a big withdrawal of 1.19 tonnes of gold from the GLD/Inventory rests at 708.70 tonnes
June 24 GLD : 706.37 tonnes
end
And now for silver (SLV)
June 24/no change in inventory/rests tonight at 326.918 million oz
June 23/we had a small withdrawal of 956,000 oz/Inventory tonight rests at 326.918 million oz
June 22/ no change in silver inventory/327.874 million oz
June 19/no change in silver inventory/327.874 million oz
June 18 no change in silver inventory/327.874 million oz
June 17/no change in silver inventory/327.874 million oz
June 16./no change in silver inventory/327.874 million oz
June 15/we had no change in silver inventory/327.874 million oz
June 12/we had another addition to the tune of 956,000 oz/Inventory rests this weekend at 327.874. Please note that there has been an addition on each of the past 5 days.
June 11.2015: we had another monster of an addition to the tune of 2.791 million oz/Inventory rests at 326.918
June 10/another monster of an addition to the tune of 1.126 million oz/Inventory rests at 324.127
June 9/ a monster of an addition to the tune of 3.393 million oz/inventory rests at 323.001 million oz.
June 8/no change in inventory/SLV inventory rests at 319.608 milion oz.
June 5 a huge addition of 1.433 million oz of silver added to the SLV/Inventory at 319.608 million oz
June 24/2015: we had no change in silver inventory/SLV inventory rests tonight at 326.918 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 7.9 percent to NAV usa funds and Negative 7.8% to NAV for Cdn funds!!!!!!!
Percentage of fund in gold 62.7%
Percentage of fund in silver:38.0%
cash .3%
( June 24/2015)
2. Sprott silver fund (PSLV): Premium to NAV rises to.90%!!!! NAV (June 24/2015)
3. Sprott gold fund (PHYS): premium to NAV falls to – .63% toNAV(June24/2015
Note: Sprott silver trust back into positive territory at +.90%
Sprott physical gold trust is back into negative territory at -.63%
Central fund of Canada’s is still in jail.
Sprott formally launches its offer for Central Trust gold and Silver Bullion trust:
SII.CN Sprott formally launches previously announced offers to CentralGoldTrust (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
And now overnight trading in gold/silver from Europe and Asia/plus physical stories that might interest you:
First: Goldcore’s Mark O’Byrne
(courtesy Goldcore/Mark O’Byrne)
“Being Fed Garbage” Re Gold and Complacency Rules… For Now”
By Mark O’ByrneJune 24, 20150 Comments
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– GoldCore interview with Kerry Lutz on the Financial Survival Network
– Gradual realisation that central bank “masters of the universe”
-“We all know that bad stuff is going to happen, we just don’t know when it is going to happen”
-“The penny is beginning to drop that … we are coming very close to the end of the road”
– Prevailing wisdom that can print currencies with reckless abandon not being questioned
– We need a free market in currencies, not bail-ins and a war on cash and gold
– People blindly trust “experts” so welcome that some of them giving prudent advice re diversification
– Currencies of creditor nations – Norway, Switzerland, Singapore, Hong Kong will outperform in long term
– Mr Spreadbury of Fidelity “helped a lot of people in the mainstream who would never consider gold and silver”
– Avoid speculation, focus on diversification and owning quality assets for long term
Interview Transcript
Kerry Lutz: Mark O’Byrne, you know him well, executive director of Goldcore – a well known precious metals seller, bullion dealer, storage company across the channel is on the case. Mark hasn’t been on the show before but he is a very sage, savvy advisor on the topic of precious metals and how to protect your wealth. We’re really pleased to have him on – Mark, Welcome….
Mark O’Byrne: Hi Kerry. Thanks for having me on and for your kind words. I have enjoyed your show as well over the years. You are doing some good stuff out there so keep up the good work.
KL: Likewise, I follow your writing religiously. We all know what’s going to happen, we just don’t know when it’s going to happen but that’s going on now – when people in the mainstream finance – and Fidelity is the bedrock in the U.S. – they manage I think well in excess of a trillion dollars. When a guy like that tells you to put money in your mattress what are you supposed to think?
MOB: Yeah. It’s interesting and I think it shows that the concerns that many of us have had for a long time is percolating into the mainstream and the “smart money” who…they’ve almost been indoctrinated as well and they believed in the powers of the central banks as the masters of the universe. But some of the smart money… and as you said ….Fidelity, it doesn’t get any bigger that that, I mean they are one of the biggest mutual fund managers in the world, one of the biggest financial services companies in the worlds, they are absolutely massive.
This guy is very well respected, one of their bigger bond fund managers in the UK – about £4 billion worth of money that he manages. So for him to say that – and he wasn’t talking off the record, he actually told the Daily Telegraph.
The Telegraph, for your American listeners is , there are two papers of financial record in the UK, one is the Financial Times and the second one is the Telegraph so they are the newspapers, that people buy for markets, finance and business news. So for him to tell the Telegraph that is incredible.
He actually said specifically people need to own “physical cash” or “physical currencies” so he wasn’t even saying specifically – own physical pounds to a UK audience, he was saying physical currencies and that suggests maybe two or three currencies, not just one currency so he appears to be speaking to global diversification there.
He also mentioned, even more unusually for a bond fund manager – he told people to own precious metals, gold and silver specifically. So its very interesting and it got picked up very widely. It went viral on the Telegraph website and saw huge traction – people sharing it on Twitter, Facebook and all the rest of it. Zero Hedge picked up on it and they got huge traction with it as well. I think it was read by 180,000 people which is massive so I think it shows the that regarding risks that are out there … the penny is beginning to drop.
These risks have been building up for years and years and we got a temporary stay and a temporary reprieve in recent months and years as they kicked the can down the road as we all know but I think people are beginning to realise we are coming very close to the end of the road.
KL: What amazes me Mark is why now, I mean for people like you and I – we have not believed in the efficacy of central banking for decades now. We’ve questioned everything these people do – the Bernanke’s, the Greenspans, the Christine Lagarde’s of the world. We’ve questioned them and their infallibility, it’s just like the infallibility of the Pope right. I mean how could you think other wise if you are a thinking person who thinks critically and questions the world around you its just like Newton lying back there, and i know this is apocryphal event, of the apple hitting him in the head and it’s like “oh gravity” like thats to me”…..?” Why are they so late to the party here?
MOB: It’s hard to know. These eureka moments…. some of them seem to be having that. Maybe deep down they didn’t really believe in the modern Keynesian Doctrine that we have today in terms of the all powerful central banks and the notion that they could just print money with reckless abandon and there would be no ramifications – because that has been very much the prevailing wisdom of recent years.
Some of them maybe were a little bit skeptical of it but they went along with it. I suppose by the very nature of it – if you are fund manager and you work in a bank you have to go along to get along. You are not going to have a job for very long if you start asking the questions that this guy has bravely gone on the record and said.
Also, markets were working in their favour and have been booming for a number of years, stock markets and bond markets as we know are at all time record highs. This sentiment allied with momentum is a powerful thing.
Its a bit like, was it Chuck Prince at Citigroup who had the expression “as long as the music keeps playing we all have to keep dancing” and i think that is the prevailing philosophy with a lot of these guys.
Some of them are beginning to ask questions and I think a lot of them see the writings on the wall and they can almost cover their asses and say well I did warn about this. it will be interesting to see, the guy will probably never mention this again. He’s probably surprised how much traction it’s got internationally, you know.
But it also goes back to economics and the prevailing Keynesian wisdom. Its the Keynesian-Austrian thing. There isn’t any awareness of Austrian Economics among the vast majority of the public and also these fund managers, these gods who work in various banks and central banks … the majority don’t appreciate that.
There are a few guys who do and those are the guys who have done well for their clients, particularly over the long term and they did well at the height of and during the crisis. They have done slightly less well over recent years where the stock markets have boomed and gold and silver bullion haven’t done as well.
So its interesting …they see the writing on the wall and I suppose for the rest of us, it is better late than never because hopefully he (Mr Spreadbury of Fidelity) has helped a lot of people in the mainstream who would never consider gold and silver and never have realised there were these levels of risks pertaining to bonds and cash.
I think people are led by the nose by these experts so if you get a few of these experts coming out and giving good advice, it’s actually quite a good thing …”
This transcript is the first half of the interview. Listen to the AudioHere
MARKET UPDATE
Today’s AM LBMA Gold Price was USD 1,175.75, EUR 1,048.93 and GBP 744.71 per ounce.
Yesterday’s AM LBMA Gold Price was USD 1,183.35, EUR 1,052.24 and GBP 749.17 per ounce.
Gold fell $7.50 or 0.63 percent yesterday to $1,177.60 an ounce. Silver slid $0.37 or 2.28% percent to $15.83 an ounce.
Gold in Singapore for immediate delivery slipped 0.2 percent to $1,176 an ounce near the end of the day, while gold in Switzerland was again flat.
Gold inched down to a one week low as investors hope a Greek debt deal is on the horizon. The yellow metal is seeing speculative liquidations as stock markets surge again and on renewed speculation that Fed interest rate rise could come this year.
Greece’s creditors have refused Tsipras’ proposal. In addition to that the Greek Prime Minister must sell the new austerity package to his own party, coalition partners and the people of Greece. As they say at the opera, “It isn’t over until the fat lady sings”. The Greek tragedy is set to continue …
Fed Governor Jerome Powell said yesterday that he was prepared to raise interest rates twice this year, once in September and once in December, as long as the economy performs as expected. Fed governors voice their opinion in the press but the decision to raise rates still comes to a vote and members are still divided.
China is awaiting approval from its central bank for a yuan-denominated gold fix “anytime now”, with more details about the scheme that may be revealed at an industry conference this week, noted Reuters. The world’s top gold buyer and top gold producer is seeking to become the leading price-setter for bullion and is asserting itself at a time when the global dollar denominated benchmark, the century old London fix, is being investigated for price manipulation.
In late European trading gold is down 0.02 percent at $1,178.56an ounce. Silver is up 0.43 percent at $15.90 an ounce, and platinum is up 0.37 percent at $1,072.64 an ounce.
Breaking News and Research Here
end
Dave Kranzler on the corrupt silver market.
(courtesy Dave Kranzler/IRD)
Comex Silver Is The Most Corrupted Market In History
June 24, 2015Financial Markets, Gold, Market Manipulation, Precious Metalsanti-gold manipulation, Comex open interest, economic collapse, silver
The silver paper futures open interest is now officially over a 1 billion ozs., most of which represents a naked short position in silver. Never in the history of the markets has any futures market been this extraordinarily disconnected from the amount of underlying physical commodity that is available to deliver against those contract open interest.
The only conclusion that can be drawn is that the Fed, Treasury and big banks are implementing the most extreme market manipulation exercise ever witnessed. I shudder to think about what catastrophe is coming at us that they know about but we don’t – yet.
“James Mc,” a valuable daily contributor to Lemetroplecafe.com’s nightly “Midas” report commented last night on the Comex silver market in comparison to the CME lumber futures market:
Total North American lumber production for 2015 (est.) is 60 billion board feet. At an average of $400 mbf that translates into $24 billion dollars. Keep in mind this excludes the rest of the world’s lumber production, which could easily be double that amount. On the other hand total world silver mine production for 2014 was estimated by GFMS to be 877 million ounces. At $16 oz. that is a total of $14 billion. Silver OI is 45.45 times greater than lumber OI. with physical silver production being only a fraction of lumber production in dollars. Lumber futures O.I would have to be 100 times greater or more to compare to the outlandish oversized silver futures. Or, put another way lumber futures would have to reflect hedging 68 billion board feet, more than the entire year’s production for North America to be scaled to silver Any arguments for a higher silver O.I due to hedging for recycled and above ground silver supply are dwarfed by the stark reality of the above figures. To say the silver market is normal is like having referred to hurricane Katrina as a passing thunderstorm.
A long-time friend of mine who works with hedge funds in NYC thinks a Comex default is coming. If that’s the case, it would make sense that JP Morgan, HSBC and Scotia – the primary Comex market-makers and Comex gold/silver vault custodians – are amassing a record level of naked-short interest in paper silver.
Why? Because this serves the two purposes:
1) these banks make enormous trading profits through their illegal manipulation of the gold and silver markets. In fact, I don’t know about HSBC and Scotia, but in some past quarters JP Morgan’s commodities trading unit has been its only cash-profitable business segment. I suspect this was largely from illegal trading profits in gold and silver futures trading.
2) keeping the price of silver down via illegal manipulation enables these banks to accumulate physical silver at artificially low prices. Obviously they know the truth about the real condition of the physical market. If you put on your “think like a criminal” hat, you would use the paper to push the price of silver down using paper – taking out trading gains on the market’s volatility – and you would be accumulating a massive hoard of physical silver because, once the Comex eventually defaults, both gold and silver will soar in price but silver will soar many multiples more than gold.
The Comex is headed for a default. This means that the long side of the open interest will be settled in cash. Of course, it takes a force majeure to trigger the cash settlement provision in the gold and silver contracts. I can’t wait to see the nature of that force majeure event…
We are dealing with as heinous a suppression scheme as we have had to deal with all these years. While we have to deal with the here and now, there is no doubt in my mind there will be reckoning for all of this, as James Mc posits … especially in silver. The odds grow that reckoning will occur when least expected and it will be spectacular. – Bill “Midas” Murphy, http://www.lemetropolecafe.com
end
You will love this piece: EDITORIAL
(courtesy New York Sun/GATA)
New York Sun: The Bernanke ten-spot
Submitted by cpowell on Wed, 2015-06-24 00:35. Section: Daily Dispatches
From the New York Sun
Tuesday, June 23, 2015
Now he tells us. The former chairman of the Federal Reserve, Ben Bernanke, is claiming in a blog post that he’s a huge fan of Alexander Hamilton.
Mr. Bernanke qualifies America’s first treasury secretary as “among the greatest of our founders for his contributions to achieving American independence and creating the Constitution alone. In addition to those accomplishments, however, Hamilton was without doubt the best and most foresighted economic policymaker in U.S. history.”
So Mr. Bernanke is opposing the demotion of Hamilton from his featured spot on the 10-dollar bill.
The irony of this is that while chairing the Federal Reserve, Mr. Bernanke traduced every principle Hamilton held dear, particularly the idea of sound money defined by Congress. It was Hamilton who wrote the first law Congress passed under the authority the Constitution grants it to coin money and regulate the value there of, and of foreign coin, and to fix the standard of weights and measures. That piece of legislation, the Coinage Act of 1792, is the final fruit of what Hamilton envisaged in respect of money and the purest record of how he thought about the dollar. …
… For the full commentary:
http://www.nysun.com/editorials/the-bernanke-ten-spot/89200/
end
Another flash crash in gold/silver this morning:
(courtesy GATA/zero hedge)
Zero Hedge: Gold and silver slammed in mini-flash crash
Submitted by cpowell on Wed, 2015-06-24 14:49. Section: Daily Dispatches
From Zero Hedge, New York
Wednesday, June 24, 2015
Fifteen minutes after GDP data was released — showing Q1 was indeed as weak as expected and inventories suggesting Q2 will be just as weak — someone decided it was an appropriate time to dump over half a billion dollars of notional gold on the futures market. …
… For the remainder of the report:
http://www.zerohedge.com/news/2015-06-24/gold-silver-slammed-mini-flash-…
end
And now Bill Holter:
Crying Wolf?
We have all from time to time tried to help others, friends and family, by pointing them toward reality. For our troubles and efforts we have been viewed as the “squirrely” guy/gal with a tinfoil hat who see’s everything as a conspiracy. We have lost friends and even had family cringe when holiday get togethers were planned because no one wants to be exposed to our “craziness”. Worse than any disease or even leprosy, anyone spouting Austrian economics or even “common sense” (almost extinct today) has been shoved into the outcast corner by the mass delusional majority. Over the last few years, “theory after theory” has become fact after FACT afterFACT! There can no longer be any question, conspiracy to delude and defraud has run rampant and is a day to day operation in the Western world.
Originally my thought was to write this piece about and around the perfect response, “but you do agree the government is bankrupt, right?“. I say this because almost anyone (in the U.S.), no matter what age, sex, religion, race or financial status will generally agree with this. For those who don’t agree, it is better to leave well enough alone, this is a subset living in their own delusional world.
For those who do agree “the government is broke”, they are broken down into basic subsets. There are those who “get it” fully. There are those who know the government is broke but don’t really understand what it means or the ramifications (they can’t connect the dots). Another group are those who agree and know in the back of their mind this is true …but they don’t REALLY believe it because they simply cannot …”it’s too awful to comprehend”. Then, we have another group, probably the largest of all, those who agree but think it really doesn’t matter. They may also believe no financial crisis will ever occur because “the government will never let it happen”. Let’s talk about this group next.
The “can’t happen here” crowd only need the dots connected for them. I believe it is best to ask them questions in an effort to lead them to their own answer and understanding. This is much better than lecturing or “telling” them because they will actually have to think to answer your questions. Questions such as:
1. if the government is broke, how will they make good on their obligations such as payrolls, Social Security, food stamps, paying the military and most importantly paying on their debt? Forget the first four, “do you realize Treasury securities are what funds Social Security, your pension, the bank’s balance sheet which holds your money …AND what underlies the dollar itself?”!
2. If the above doesn’t work, you might ask if the economy currently “feels good”? Then ask, do you realize the federal government spends almost 20% of GDP (and their spending is “counted” as part of GDP). If they are broke and have to drastically cut back on spending, will the economy not shrink by the amount the government can no longer spend? Do you see without government spending, under any definition we would be in a depression greater than the 1930’s?
I don’t want to go through the entire exercise but please understand, “guiding” someone to their own conclusion which happens to be correct is best done with questions, MANY OF THEM. If you can, take two, three or even more philosophical roads to help them reach the same conclusion each time …the understanding will be that much more cemented in their mind when they finally do(hopefully) arrive!
Switching gears just a bit, we have seen the “mentality” change somewhat over the last year or so. Even the mainstream is showing some signs of a shift. This “shift” has even become evident amongst and within the “old boys club”. For example, who would have imagined Germany, Netherlands, Belgium and Austria would ever ask for their gold back? Or Texas building its own depository and using the words “not” and “confiscate” in the legislation for proposed repatriation?
Several very well known and at one time mainstream money managers have publicly told of the dangerous situation. The latest is a bond manager who has gone entirely to cash, how’s this for putting a crash helmet on?
http://www.bloomberg.com/news/articles/2015-06-22/tcw-braces-for-bond-market-collapse-by-piling-the-cash-up-high Just a few weeks ago, Bloomberg put out an article asking if China could gold back the yuan. This was significant because no news source (other than maybe Kitco) has been as bearish and slandering regarding gold than Bloomberg. http://www.bloomberg.com/news/articles/2015-05-20/chinese-gold-standard-would-need-a-rate-50-times-bullion-s-price
Going to the beginning and back to the top, who exactly was correct in 1999-2000? Who was correct from 2005-2008 about an impending crisis? The answer of course is the very same people screaming bloody murder today “the financial system will come apart from the seams”. Are those who were correct before, now “crying wolf”? Or are they saying the same things for the same reason and forecasting the same results as before? “They” (we) were not crazy then and are not crazy now. In fact, it is even much easier to see now than previous. As a side note if you recall, we heard in late 2008 and 2009, “who could have seen it coming”? Or, “no one could have seen it coming”. This is dead wrong! In fact, even within the mainstream press there was a concerted effort to silence the truth. For example, Greg Hunter while at CNN tried to warn of the banking collapse. He was told “don’t go there” and was rewarded by having his contract not renewed!
“Some” saw the dotcom bubble coming, more saw and warned of the 2008 crisis coming …and even more see this one coming. Not only are there more and louder voices today, the numbers are growing slowly but surely and even engulfing some mainstreamers who used to laugh at “us tinfoilers”!
I know how difficult it is and has been. The financial landscape is perverted beyond recognition and any time you open your mouth, you are proven wrong. Gold goes down the following day along with a new high in stocks so you look “stupid”. You are not. “We” cannot make price, we can only tell the truth as we see it and suggest via common sense and logic the need to prepare for the worst. As I see it, the outcome is not in any doubt and becomes clearer each day. My fear is we are not in 2008 anymore, the coming collapse will change the world order to one unrecognizable to today. The U.S. is in fact “broke” as we spoke of at the beginning. The “realization” of this not only can happen but WILL happen. Sadly, because of how badly the U.S. has treated the world over these last years, we will be given no mercy when negotiating our bankruptcy. It will be a real live wolf at our door!
Regards, Bill Holter
Holter-Sinclair collaboration
and now overnight trading in stocks and bonds from Asia and Europe:
1 Chinese yuan vs USA dollar/yuan strengthens to 6.2071/Shanghai bourse green and Hang Sang: green
2 Nikkei closed up by 58.61 points or 0.13%
3. Europe stocks all in the red except London’s FTSE/USA dollar index down to 95.13/Euro rises to 1.1207
3b Japan 10 year bond yield: rises to .47% !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 123.87/ominous to
3c Nikkei still just above 20,000
3d USA/Yen rate now well above the 123 barrier this morning
3e WTI 60.91 and Brent: 64.31
3f Gold down/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.
3h Oil down for WTI and down for Brent this morning
3i European bond buying continues to push yields lower on all fronts in the EMU. German 10 yr bund falls to .86 per cent. German bunds in negative yields from 3 years out.
Except Greece which sees its 2 year rate rise to 21.63%/Greek stocks this morning falls by 4.58%/ still expect continual bank runs on Greek banks /Greek default inevitable/
3j Greek 10 year bond yield fall to to: 10.69%
3k Gold at 1177.25 dollars/silver $15.89
3l USA vs Russian rouble; (Russian rouble up 1/4 in roubles/dollar in value) 54.27,
3m oil into the 60 dollar handle for WTI and 64 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 .9316 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0442 just below the floor set by the Swiss Finance Minister.
3p Britain’s serious fraud squad investigating the Bank of England/
3r the 3 year German bund remains in negative territory with the 10 year moving closer to negativity at +.86
3s Last Friday, another 1.8 billion ELA was raised to a maximum of 85.9 billion euros. Monday morning then saw another 1.9 euros added to the ELA as massive bank runs were the object of the day and thus the ELA stood at a maximum 87.8 billion euros.Then yesterday and today, the ELA was raised twice but the figures were not released (Reuters).The ELA is used to replace depositors fleeing the Greek banking system. The bank runs are increasing exponentially.This week 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. The funds are deferred to June 30.
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 but this weekend is the likely time to do it.
4. USA 10 year treasury bond at 2.39% early this morning. Thirty year rate well above 3% at 3.17% / yield curve flatten/foreshadowing recession.
5. Details Ransquawk, Bloomberg, Deutsche bank/Jim Reid.
(courtesy Jim Reid/Bloomberg/Deutsche bank/zero hedge)
Buy Programs Stumble After Greek Deal Proposal Goes Back To Drawing Board In Last Minute
And it started off all so well: the market, blissfully ignoring what we wrote just yesterday in Why The IMF Will Reject The Latest Greek Proposal In Just Two Numbers, was in full blown levitation mode overnight when it sent Japanese stocks to their highest close since 1996 (pre dot com) and with the Chinese central bank doing its best to keep levitating local stocks away from the abyss, pushing the SHCOMP up another 2.5%.
European shares opened small in the green, hopeful despite a Greece deal not yet being finalized. The market tried to hold its gains despite an appalling unemployment number in Finland and a blah Ifo report from Germany. These numbers began to weigh, even as the ECB’s QE program is not going to be tapered anytime soon. And then red headlines ran quoting Greece PM Tsipras saying “creditors didn’t accept Greek proposals.” Oops, market immediately got hit, but didn’t panic.”
Euro Stoxx 50 went from flat to down 1% and is bouncing. As BBG’s Richard Breslow adds, predictably, the market is taking this as a ploy, not an end game. Of course, this is precisely the “Bear Stearns is fine” conven