Good evening Ladies and Gentlemen:
Here are the following closes for gold and silver today:
Gold: $1152.40 up $20.50 (comex closing time)
Silver $14.95 down 78 cents.
In the access market 5:15 pm
Gold $1154.50
Silver: $15.10
First, here is an outline of what will be discussed tonight:
At the gold comex today, we had a poor delivery day, registering 2 notices for 200 ounces . Silver saw 5 notices filed for 25,000 oz.
Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 248.19 tonnes for a loss of 55 tonnes over that period.
In silver, the open interest rose by only 133 contracts despite the fact that Monday’s price was up by 19 cents. Again we must have had some short covering. The total silver OI continues to remain extremely high, with today’s reading at 196,022 contracts now at decade highs despite a record low price. In ounces, the OI is represented by .979 billion oz or 139% 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 just under 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. This is the first time in almost two years that the open interest in an active delivery month did not collapse in number.
In silver we had 5 notices served upon for 25,000 oz.
In gold, the total comex gold OI rests tonight at 446,665 for a gain of 397 contracts as gold was up $9.90 on yesterday. We had 2 notices filed for 200 oz today.
We had no change in tonnage at the gold inventory at the GLD; thus the inventory rests tonight at 709.65 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 325.205 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 133 contracts to 196,022 despite the fact that silver was up by 19 cents yesterday. The OI for gold rose by another 397 contracts up to 446,665 contracts as the price of gold was up by $9.90 on yesterday.
(report Harvey)
2 Today, 11 important commentaries on Greece
(zero hedge, Reuters/Bloomberg,Armstrong/David Stockman/summers/Ambrose Evans Pritchard)
3. One commentaries on the collapse in the stock market in China
(zero hedge)
4.USA data tonight; Trade Deficit and a story on Obamacare.
5. Gold trading overnight
(Goldcore/Mark O’Byrne/)
6. Trading from Asia and Europe overnight
(zero hedge)
7. Trading of equities/ New York
(zero hedge)
8. Bill Holter’s commentary tonight is titled:
“Piece by piece or all at once?”
plus other important topics….
Just in case you missed this from yesterday, I am repeating it for you:
Before we begin, I just retrieved the data from the FRBNY for gold leaving this depository for safe havens abroad.
Data for May:
8103 – 8089 = 14 million dollars worth of gold left NY at a value of 42.22 per oz.
Thus 331,596.4 oz leaves or 10.314 tonnes
This is approximately what left last month. Since Germany is the only nation that have officially asked for repatriation, I am quite sure that the destination of this gold is Germany.
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 a tiny 397 contracts from 446,268 up to 446,665 as gold was up $9.90 in price yesterday (at the comex close). We are now in the next contract month of July and here the OI surprisingly fell by 11 contracts to 163 contracts. We had 8 notices filed yesterday and thus we lost 3 contracts or an additional 300 ounces will not stand in this non active delivery month of July. The next big delivery month is August and here the OI fell by 2250 contracts down to 278,897. The estimated volume today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was fair at 167,359 with the help from our criminal HFT traders. The confirmed volume yesterday (which includes the volume during regular business hours + access market sales the previous day was poor at 153,640 contracts. Today we had 8 notices filed for 800 oz.
And now for the wild silver comex results. Silver OI rose by a tiny 133 contracts from 195,889 down to 196,022 despite the fact that the price of silver up by 19 cents in price 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 next delivery month is July and here the OI fell by 193 contracts down to 516. We had 177 notices served upon yesterday and thus we lost 76 contracts or an additional 380,000 ounces of silver will not stand for delivery in this active month of July. This is the first time in quite some time that we have not lost any silver ounces standing immediately after first day notice. The August contract month saw it’s OI rise by 24 contracts up to 187. The next major active delivery month is September and here the OI fell by a small 421 contracts to 137,419. The estimated volume today was excellent at 62,736 contracts (just comex sales during regular business hours) with mucho help from the HFT traders. The confirmed volume yesterday (regular plus access market) came in at 42,481 contracts which is good in volume. We had 5 notices filed for 25,000 oz
July initial standing
July 7.2015
Gold
Ounces
Withdrawals from Dealers Inventory in oz
nil
Withdrawals from Customer Inventory in oz
2039.153 HSBC,Manfra,Scotia)
Deposits to the Dealer Inventory in oz
nil
Deposits to the Customer Inventory, in oz
2502.12 oz (Delaware,JPM)
No of oz served (contracts) today
2 contracts (200 oz)
No of oz to be served (notices)
161 contracts 16,100 oz
Total monthly oz gold served (contracts) so far this month
310 contracts(31,000 oz)
Total accumulative withdrawals of gold from the Dealers inventory this month
nil oz
Total accumulative withdrawal of gold from the Customer inventory this month
80,358.6 oz
Today, we had 0 dealer transactions
we had zero dealer withdrawals
total Dealer withdrawals: nil oz
we had 0 dealer deposits
total dealer deposit: zero
we had 3 customer withdrawals
i) Out of Manfra; 128.60 oz (4 kilobars)
ii) Out of Scotia: 1607.500 oz (50 kilobars)
iii) Out of HSBC 303.053 oz
total customer withdrawal: 2039.153 oz
We had 2 customer deposits:
i) Into Delaware: 2199.067 oz
ii) Into JPMorgan: 303.053 oz
Total customer deposit: 2502.12 ounces
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 2 contracts of which 0 notices were stopped (received) by JPMorgan dealer and 0 notices were stopped (received) by JPMorgan customer account
To calculate the total number of gold ounces standing for the July contract month, we take the total number of notices filed so far for the month (310) x 100 oz or 31,000 oz , to which we add the difference between the open interest for the front month of July (163) and the number of notices served upon today (2) x 100 oz equals the number of ounces standing.
Thus the initial standings for gold for the July contract month:
No of notices served so far (310) x 100 oz or ounces + {OI for the front month (163) – the number of notices served upon today (2) x 100 oz which equals 47,100 oz standing so far in this month of July (1.465 tonnes of gold).
we lost an additional 300 oz of gold standing in this non active delivery month of July.
Total dealer inventory 522,283.742 or 16.24 tonnes
Total gold inventory (dealer and customer) = 7,979,429.220 oz or 248.19 tonnes
Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 248.19 tonnes for a loss of 55 tonnes over that period.
end
And now for silver
July silver initial standings
July 7 2015:
Silver
Ounces
Withdrawals from Dealers Inventory
nil
Withdrawals from Customer Inventory
1,265,398.330 oz (HSBC,Brinks,Scotia)
Deposits to the Dealer Inventory
nil
Deposits to the Customer Inventory
599,902.97 oz (Scotia)
No of oz served (contracts)
5 contracts (25,000 oz)
No of oz to be served (notices)
509 contracts (2,545,000 oz)
Total monthly oz silver served (contracts)
2413 contracts (12,065,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month
nil
Total accumulative withdrawal of silver from the Customer inventory this month
1,507,469.4 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 1 customer deposit:
i) Into Scotia: 599,902.97 oz
total customer deposit: 599,902.97 oz
We had 3 customer withdrawals:
i) Out of Brinks: 614,243.550 oz
ii) Out of HSBC: 50,175.37 oz
iii) Out of Scotia: 600,979.410 oz
total withdrawals from customer: 1,265,398.330 oz
we had 0 adjustments
Total dealer inventory: 60.146 million oz
Total of all silver inventory (dealer and customer) 182.142 million oz
The total number of notices filed today for the July contract month is represented by 5 contracts for 25,000 oz. To calculate the number of silver ounces that will stand for delivery in July, we take the total number of notices filed for the month so far at (2413) x 5,000 oz = 12,065,000 oz to which we add the difference between the open interest for the front month of July (516) and the number of notices served upon today (5) x 5000 oz equals the number of ounces standing.
Thus the initial standings for silver for the July contract month:
2413 (notices served so far) + { OI for front month of July (516) -number of notices served upon today (5} x 5000 oz ,= 14,610,000 oz of silver standing for the July contract month.
we lost 76 contracts or an additional 380,000 oz will not stand in this active delivery month of July.
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:
July 7/ no change in gold inventory at the GLD/Inventory at 709.65 tonnes
July 6/no change in gold inventory at the GLD/Inventory at 709.65 tonnes
July 2/we had a huge withdrawal of inventory to the tune of 1.79 tonnes/rests tonight at 709.65 tonnes
July 1.2015; no change in inventory/rests tonight at 711.44 tonnes
June 30/no change in inventory/rests tonight at 711.44 tonnes
June 29/no change in inventory/rests tonight at 711.44 tonnes
June 26./it did not take our bankers long to raid the GLD. Yesterday they added 6.86 tonnes and today, 1.75 tonnes of that was withdrawn/Inventory tonight rests at 711.44 tonnes.
June 25/a huge addition of 6.86 tones of inventory at the GLD/Inventory rests tonight at 713..23 tonnes
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
July 7 GLD : 709.65 tonnes
end
And now for silver (SLV)
July 7/no change in inventory at the SLV/rests at 325.342 tonnes
July 6/we have a slight inventory withdrawal which no doubt paid fees. we lost 137,000 oz/Inventory rests tonight at 325.205 million oz
July 2/ no change in inventory at the SLV/rests tonight at 325.342 million oz
July 1/ we had an addition of 1,624,000 oz into the SLV inventory/rests tonight at 325.342 million oz
June 30/we lost another 621,000 oz of silver from the SLV/Inventory rests at 323.718 oz (somebody must be in great need of physical silver)
June 29/ a monstrous loss of 4.777 million oz of silver from the SLV/Inventory rests tonight at 324.339 million oz
June 26/today we had another addition of 198,000 of silver/Inventory rests at 329.116 million oz
June 25/ a huge increase of 1.242 million oz of silver into the SLV inventory/Inventory rests at 128.918 million oz
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
July 7/2015: tonight inventory rests at 325.205 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 9.3 percent to NAV usa funds and Negative 9.3% to NAV for Cdn funds!!!!!!!
Percentage of fund in gold 61.8%
Percentage of fund in silver:37.9%
cash .3%
( July 7/2015)
2. Sprott silver fund (PSLV): Premium to NAV rises to 2.68%!!!! NAV (July 7/2015) (silver must be in short supply)
3. Sprott gold fund (PHYS): premium to NAV rises to – .61% toNAV(July 7/2015
Note: Sprott silver trust back into positive territory at +2.68%
Sprott physical gold trust is back into negative territory at -.61%
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)
Faber: “Wake Up, People of the World! Greece Will Come to You …Very Soon”
By Mark O’ByrneJuly 7, 20150 Comments
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– World is “over-indebted”, Mark Faber tells Bloomberg
– “Defaults will follow or they will have to create very high inflation rates”
– Greece will leave EU or Troika will take 50% “haircut”
– Leaving EU may be Greece’s best option
– Anti-Austerity groups in other countries will be bolstered by Greek defiance – may have negative impact on bonds
– Recent stock market weakness due to weak global economy rather than Greece
– Chinese economy weak, markets could fall further
– Central banks to use Greece and China as excuse to maintain loose policy
– Faber is long-time advocate of holding physical gold
“Wake up, people of the world and investors! Greece will come to your neighbourhood very soon, maybe not this year but next year or whenever…because the world is over-indebted and defaults will follow or they’ll have to create very high inflation rates”.
This was Mark Faber’s message to Bloomberg viewers in an interview yesterday.
In the course of the interview the editor of the Gloom, Doom and Boom report said that if Greece were to leave the EU it would “suffer badly for a few months, maybe longer” due to a shortage in cash but that ultimately it might be in its interest to do so because they would be “basically debt free”. The economy would crash “but the economy has already plunged as a result of the measures and the over indebtedness they have”.
The alternative, as he sees it, is that the Troika will have to make a significant compromise. “Tsipras has proposed a haircut of something like 30%. I don’t think that’s enough, i think they will need a haircut of at least 50%”, he said. He believes that there should be debt forgiveness but the “bloated” Greek government needs to be trimmed or the problem will resurface in the future.
Bonds of weaker nations in Europe have weakened following the Greek referendum because it is believed anti-austerity groups in Spain, Italy and Portugal will be emboldened by the Greek display of defiance. “Greece may be the first country to actually oppose the measures imposed on them by the ECB, by the EU and also by the IMF and more countries may follow”. He points out that “where you have a borrower you also have a lender” and criticises the ECB’s reckless lending to Greece “partly to bail out its own banks”.
He also points out that he thinks recent stock market weakness is more a function of a weakening global economy, particularly in China, than events in Greece. Chinese markets have plunged over 30% since June 12th having doubled in the preceding year. Faber predicted a 40% correction prior to the crash and still holds that view. He believes export figures from its local trading partners into China indicate that Chinese economic growth is now around 4% – “but that’s the maximum”.
He believes that the Fed and the ECB will use the problems in Greece and China to delay raising rates and to print “even more money” respectively although he does not see their actions as having any benign effect on the real economy.
Marc Faber is a long-time advocate of owning physical gold which action he describes as being “your own central bank”. If his predictions are correct – that defaults and/or very high inflation are on the horizon globally an allocation to gold is academically proven to serve as vital financial insurance.
Must Read Guide: Gold Is A Safe Haven Asset
MARKET UPDATE
Today’s AM LBMA Gold Price was USD 1,166.25, EUR 1,063.22 and GBP 752.10 per ounce.
Yesterday’s AM LBMA Gold Price was USD 1,164.25, EUR 1,053.43 and GBP 748.43 per ounce.
Gold climbed $3.30 or 0.28 percent yesterday to $1,168.90 an ounce. Silver rose $0.04 or 0.26 percent to $15.69 an ounce.
Gold in Singapore for immediate delivery edged down 0.1 percent to $1,168 an ounce near the end of the day.
Gold remained firm in spite of the lack of strong safe haven bids despite the Greek “no” vote.
Greece will be given yet another chance to propose new reforms to their creditors today in Brussels.
A failure to meet an agreement means an exit from the euro.
German Chancellor Angela Merkel has stated that time is running out for the Greeks.
In late morning trading gold is down 0.35 percent at $1,165.23 an ounce. Silver is down 0.70 percent at $15.60 an ounce and platinum is also down 0.75 percent at $1,053.00 an ounce.
Breaking News and Research Here
end
Bloomberg ignores request to examine central bank intervention against gold
Submitted by cpowell on Tue, 2015-07-07 02:56. Section: Daily Dispatches
10:53p ET Monday, July 6, 2015
Dear Friend of GATA and Gold:
Neither Bloomberg News columnist Barry Ritholtz nor his editor, Mark Berley, has responded to your secretary/treasurer’s e-mail to them of last Wednesday, in response to Ritholtz’s latest commentary disparaging gold’s price performance, asking them to examine the documentation of surreptitious intervention in the gold market by central banks:
http://www.gata.org/node/15506
Indeed, tonight Bloomberg has followed with another report purporting to analyze the gold market without inquiring into the activity of the market’s biggest participants, central banks:
http://www.bloomberg.com/news/articles/2015-07-06/gold-gets-ignored-in-g…
These are simply not honest and honorable journalists but rather — and knowingly — regime propagandists and disinformation specialists. Put specific questions to them about specific documents and evidence and, like the government officials they serve, they clam up. We just have to keep confronting these impersonators. Eventually we’ll find one capable of shame.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
end
Makes perfect sense to me!!
US Mint Runs Out Of Silver On Same Day Price Of Silver Plunges To 2015 Lows
Average:
In the aftermath of the latest breakout of the Greek crisis, Europeans across the continent, not just in Greece (even though with capital controls, potential deposit confiscation and currency devaluation they would have benefited by far the most), scrambled to buy physical gold and silver.
This is what the UK Royal Mint said a week ago, “During June, we experienced twice the expected demand for Sovereign bullion coins from our customers based in Greece.”
Other dealers had comparable experiences: “Most of our common gold coins are sold out,” Daniel Marburger, a director of Frankfurt-based CoinInvest.com, said by phone. “When people learned that the Greek banks will be closed, they started to think that it may not be such a bad idea to have some money in gold.”
GoldCore, which buys and sells bullion, reported coin and bar demand increased “significantly” on Monday. Sales to U.K. and Ireland today are about three times the average level for the past three Mondays, according to an e-mailed statement from the Dublin-based firm.
BullionVault, which operates the largest online physical gold trading platform, reported a jump in sales during the first half of this year, a sign of a broader increase.
Earlier today, we learned that the latest place that hit by the precious metal scramble was the US itself, when we learned that the US mint had suspended Silver Eagle sales as a result of a spike in demand, with our source advising that “all bullion distributors (like A-Mark, Dillon Gage, CNT, etc) were already raising premiums.”
And while the US Mint rarely issues press releases to confirm such adverse matters, moments ago this was confirmed by Bloomberg:
U.S. MINT SAYS 2015 AMERICAN EAGLE SILVER COINS SOLD OUT
When will the Mint restock and resume sales?
U.S. MINT PLANS TO RESUME SILVER COIN SALES IN TWO WEEKS
In other words, no orders until August.
And while the US mint halting sales of silver (or gold) during times of peak demand is nothing new, what is surprising is that as the chart below of monthly silver American Eagle sales, demand in recent months has hardly been off the charts.
Which makes one wonder: just what is the inventory buffer at the mint if a modest 1.6 million ounces of silver sold in one week can deplete the Mint’s planned holdings for one entire month.
And another question: in just what supply/demand universe does such an explicit confirmation of a surge in demand for silver result in a plunge in the price of spot silver to its lowest level of the year!?
One wonders if Citigroup, and its soaring silver derivative exposure, may have anything to do with this…
end
(courtesy Bloomberg news/GATA)
Chinese trading suspensions freeze $1.4 trillion of shares amid rout
Submitted by cpowell on Tue, 2015-07-07 15:35. Section: Daily Dispatches
By Fox Hu
Bloomberg News
Tuesday, July 7, 2015
Chinese companies have found a guaranteed way to prevent investors from selling their shares: suspend trading.
Almost 200 stocks halted trading after the close on Monday, bringing the total number of suspensions to 745, or 26 percent of listed firms on mainland exchanges, according to data compiled by Bloomberg. Most of the halts are by companies listed in Shenzhen, which is dominated by smaller businesses.
The suspensions have locked up $1.4 trillion of shares, or 21 percent of China’s market capitalization, and are becoming increasingly popular as equity prices tumble. If not for the halts, a 28 percent plunge in the Shanghai Composite Index from its June 12 peak would probably be even deeper.
“Their main objective is to prevent share prices from slumping further amid a selling stampede,” said Chen Jiahe, a strategist at Cinda Securities Co. …
… For the remainder of the report:
http://www.bloomberg.com/news/articles/2015-07-07/chinese-trading-halts-.
end
(courtesy Dave Kranzler/IRD)
Dave Kranzler: Gold and silver are paper-slammed — Is the system collapsing?
Submitted by cpowell on Tue, 2015-07-07 16:05. Section: Daily Dispatches
12:04p ET Tuesday, July 7, 2015
Dear Friend of GATA and Gold:
Dave Kranzler of Investment Research Dynamics today notes the latest “paper slam” of monetary metals prices and wonders if the world financial system is collapsing.
Kranzler writes: “How is it that day after day gold and silver get smashed when the New York Comex floor trading opens? Does it seem odd that all of a sudden, nearly every day for the last four-plus years at 8:20 a.m. ET all the world decides to unload paper gold and silver positions?
“How is it at all possible that the prices of gold and silver are collapsing like this when China has imported a record amount of gold in the first half of 2015? China and India combined are importing more gold than is being produced on a daily basis. India is importing by far a record amount of physical silver. These countries require the physical delivery of the metal they buy. It’s not good enough for the bullion banks to offer free vault storage in London or New York. The misrepresentation of the true, intrinsic price of gold and silver by the New York and London paper markets is perhaps the greatest fraud in history.
“The criminality operating in the U.S. financial markets has become pervasive. The markets just ooze with unfettered theft and wealth confiscation. The government doesn’t just ‘look the other way.’ The government is the criminal cartel. …”
Kranzler’s commentary is headlined “Gold and Silver Are Paper-Slammed — Is the System Collapsing?” and it’s posted at the Investment Research Dynamics Internet site here:
http://investmentresearchdynamics.com/gold-and-silver-are-paper-slammed-…
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
end
(courtesy James Turk/Kingworldnews/GATA)
Don’t keep monetary metals in bank safe-deposit boxes, Turk warns
Submitted by cpowell on Tue, 2015-07-07 16:21. Section: Daily Dispatches
12:20p ET Tuesday, July 7, 2015
Dear Friend of GATA and Gold:
Government intervention in markets always makes things worse, GoldMoney founder and GATA consultant James Turk tells King World News today, adding that as the world financial system teeters, gold and silver owners better not be keeping their metal in bank safe-deposit boxes. An excerpt from Turk’s interview is posted at the KWN blog here:
http://kingworldnews.com/another-terrifying-global-collapse-is-imminent/
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
end
TF Metals Report: Commodity collapse
Submitted by cpowell on Tue, 2015-07-07 17:15. Section: Daily Dispatches
1:14p ET Tuesday, July 7, 2015
Dear Friend of GATA and Gold:
The TF Metals Report’s Turd Ferguson today attempts some technical analysis of the crash in commodity prices but qualifies it this way: “We keep repeating the mantra ‘there are no markets, just interventions,’ and, if that’s the case, maybe all my old tried-and-true methods are now obsolete.”
Ferguson adds: “In the end, if you still believe that the entire global market structure is a fraud with limited lifespan, then the ability to convert fiat and stack physical metal at these depressed paper prices is a gift, not a disaster.”
Of course it would be a much more valuable gift for people in their 20s and 30s than for people in their 60s and 70s. Indeed, for the latter group it could look more like another ripoff.
Ferguson’s commentary is headlined “Commodity Collapse” and it’s posted at the TF Metals Report here:
http://www.tfmetalsreport.com/blog/6974/commodity-collapse
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
end
(courtesy Bill Holter/Holter-Sinclair Collaboration)
Piece by piece or all at once?
The Greeks voted “no” and should be applauded for their valor! Knowingly or not, their no vote has added extra cards to their hand. They now have more options than they would have had with a yes vote. In fact, Greece still has the only option they would have had with a yes vote (cut a deal for “more aid” and austerity), plus many other which pressure the lenders. I must say, a “vote” coming from the cradle of democracy CONTRARY to what the banksters wanted is a breath of fresh air!
Now what? Greece basically can go down three very different roads. They can use their “new freedom” to either negotiate new aid and restructuring, they can stay in the Eurozone while not paying on their debt and using a new drachma or, …they can go full Iceland! Please understand this, no matter what they choose, their banking system is inedible toast and they cannot pay their debt service let alone the principal. The bottom line is “someone” will have to eat the losses. Whether it be the ECB itself, European banks or whomever, the debt will not be paid and someone, somewhere will have to “lose”. Keep in mind this is happening while liquidity is already quite tight.
It is possible we could see some sort of deal where “the world is saved” and a violent short covering rally in everything ensues. Should this occur, do not be fooled because nothing can, nor will be, fixed. Can they buy a month or three months time with Greece? Probably but as liquidity is drying up, accidents are more likely to happen. Countering this thought process, Greece does also have an “out” should they decide to turn toward any help offered by Russia and China. If this is the choice, I believe it’s a very good bet that rioting and even a coup may be “helped” from the shadows. I won’t elaborate on this but should it appear Greece is moving away from the West, unrest of all sorts will surely be “stirred” up!
Of their options available, I personally believe they should go “whole hog Iceland”. What is best for Greece for the future would be to put a moratorium on payments and outright default. They would then be forced to issue a new drachma to conduct commerce with. I also believe they should leave the Eurozone and focus trade toward the East where their new drachma would be more likely to be accepted. Greece would be forced to “start over” from ground zero, not a happy prospect but one where at least a foundation exists. The “old” world order will not stand in the long run, it may fall apart piece by piece or all at once.
The piece by piece scenario would include Portugal, then Spain, and then Italy (with France mixed in there) wanting to go down the same Greek road. We very well may see national referendums becoming the new fad. All of these countries will want some sort of relief from their debt as the numbers are clearly unsustainable. Talk of the situation being contained is laughable. So laughable, the whole system could go from “normal” to “over” in 48 hours in my opinion.
Look around the world, China is now down 25+% in just over three weeks. Europe, it’s currency and even the Union itself is in question …and the Federal Reserve needs to do something in the credibility department. What I am saying is this, can the Fed really tighten ANYTHING in the current environment? As I mentioned previously, liquidity is rapidly going away …in an over indebted system this is the most potent of poison! As I see it, a massive dose of new QE will have to be administered just to keep the doors open. Watch for this!
Meanwhile, “we” look like idiots to those we have tried to help. While the credit market is on the cusp of breakdown and full seizure, gold and silver prices got smashed again today. Funny thing though, even though there has been so much “selling”, the U.S. Mint has apparently suspended sales of Silver Eagles! I will ask the question again as I have before, if there is so much “selling” of silver, why can’t the Mint source it to sell? It is their mandate! It is the law (which matters not anymore)!
Are we moving into a zone where COMEX prices will get hit further …while the mint sells nothing until August (if we even make it to August) …and then we see some sort of credit/financial/international event where force majeure is declared? For whatever reason the Mint can conjure …can’t source metal …can’t keep up with demand …or whatever, a suspension of sales does not jibe with massive panic selling of “metal”. Unless of course they say “we are suspending sales because there is no demand”. I am sure a statement like this could be spun as Gospel truth!
Folks, we stand on the verge of the global credit markets coming to a grinding halt. In our current world, NOTHING that we consider “normal” will transact or transpire without credit. Our lives will change literally overnight without credit. We are about to live through a massive wildfire of credit values burning to the ground, gold and silver will still be standing when the smoke clears. It is completely laughable to see gold and silver forced down when the fear of credit collapse is rising. Mother Nature doesn’t work this way, central banks wish she did! I hope you have the will to “see through it”, the coordinated efforts to support paper markets and suppress gold and silver have been truly impressive. The currency of the biggest, most indebted and “brokest” issuer in the world is attracting safe haven bids. I assure you, once control is lost and we go into all out panic, even those pulling the levers will be moving against their own central banks!
Standing watch,
Bill Holter
Holter-Sinclair collaboration
Comments welcome! bholter@hotmail.com
end
And now overnight trading in equities, currencies interest rates and major stories from Asia and Europe:
1 Chinese yuan vs USA dollar/yuan weakens to 6.2098/Shanghai bourse red and Hang Sang: red
2 Nikkei closed up by 264.47 points or 1.31%
3. Europe stocks all in the red (hugely) /USA dollar index up to 96.85/Euro down to 1.0975
3b Japan 10 year bond yield: falls to 45% !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 122.50
3c Nikkei still just above 20,000
3d USA/Yen rate now just below the 123 barrier this morning
3e WTI 52.82 and Brent: 57.21
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 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 .75 per cent. German bunds in negative yields from 4 years out.
Except Greece which sees its 2 year rate rise to 49.63%/Greek stocks this morning: stock exchange closed again/ still expect continual bank runs on Greek banks /Greek default to the IMF in full force/
3j Greek 10 year bond yield rises to: 18.09%
3k Gold at 1166.00 dollars/silver $15.61
3l USA vs Russian rouble; (Russian rouble down 6/10 in roubles/dollar in value) 57.53,
3m oil into the 52 dollar handle for WTI and 57 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 .9487 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0404 well below the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.
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 away from negativity at +.75%
3s The ELA is frozen now at 88.6 billion euros. The bank withdrawals were causing massive hardship to the Greek bank. the Greek referendum voted overwhelming “NO”.
4. USA 10 year treasury bond at 2.23% early this morning. Thirty year rate just above 3% at 3.03% / yield curve flatten/foreshadowing recession.
5. Details Ransquawk, Bloomberg, Deutsche bank/Jim Reid.
(courtesy Jim Reid/Bloomberg/Deutsche bank/zero hedge)
US Stock Futures Rebound On “Hope” Although China Has Big Trouble As Market Begins To Freeze
When it comes to Greece, and Europe in general, “hope” continues to remain the driving strategy. As Bloomberg’s Richard Breslow summarizes this morning, “if you were looking for a word to describe the general feeling of equity markets today, you might well pick hopeful. U.S. equity futures opened higher and have been up all day. European bourses opened cautiously higher as they await word, any word, from the European finance ministers or more importantly, Chancellor Merkel. Equity markets will continue to be very reactive to European headlines, but so far, no news has been taken as a reason for hope.” Which incidentally, has been the general investment case for the past 6 years: “hope” that central banks know what they are doing.
Today’s latest Eurogroup meeting at which Greece is expected to somehow provide a new deal proposal that will re-engage the European finmins after Greece resoundingly said “Oxi” to the last, more permissive proposal, is just the latest indication that nothing else but hope remains.
We’ll know in hours if the hope was again in vain, because as the ECB quite clearly hinted yesterday, no deal and the ELA haircuts continue only the next time it will be a bail in, especially since overnight the ECB issued a new document where the debt monetizing bank quite amusing, decried the danger of moral hazard warning that the ELA could be {a threat to the financial independence of the NCB, for instance if ELA was not provided against sufficient collateral to safeguard such independence, an obvious concern about a possible breach of the monetary financing prohibition, or provision of ELA at overly generous conditions, which, in turn, could increase the risk of moral hazard on the side of financial institutions or responsible authorities.” One just has to laugh at the hypocrisy.
A place where there is no laughter this morning, and almost no hope was China where after rebounding modestly by a little over 2% yesterday, the massively propped Shanghai Composite dropped again, this time sliding -1.26%, with a far greater crash spared due to the rolling halt of trading of increasingly more stocks as the entire stock market is slowly but surely getting CYNKed as we warned last week.
It gets worse: as <a href="http://www.ft.com/intl/cms/s/0/16ab8386-2456-11e5-9c4e-a775d2b173ca.html?ftcamp=crm/email/201577