Good evening Ladies and Gentlemen:
Here are the following closes for gold and silver today:
Gold: $1138.20 down $15.20 (comex closing time)
Silver $14.61 down 15 cents.
In the access market 5:15 pm
Gold $1140.00
Silver: $14.70
Here is the schedule for options expiry:
Comex: options expire tomorrow night
LBMA: options expire Monday, August 31.2015:
OTC contracts: Monday August 31.2015:
needless to say, the bankers will try and contain silver and gold until Sept 1.2015:
First, here is an outline of what will be discussed tonight:
At the gold comex today, we had a good delivery day, registering 59 notice for 5900 ounces Silver saw 24 notices for 120,000 oz.
Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 226.94 tonnes for a loss of 76 tonnes over that period.
In silver, the open interest fell by 1537 contracts as silver was down in price by 54 cents yesterday. Something, again really spooked our shorts as they ran to the hills to cover. The total silver OI now rests at 169,111 contracts In ounces, the OI is still represented by .845 billion oz or 120% of annual global silver production (ex Russia ex China).
In silver we had 24 notices served upon for 124,000 oz.
In gold, the total comex gold OI rests tonight at 438,785. We had 59 notice filed for 5900 oz today.
We had another huge addition of 3.27 tonnes to the GLD today / thus the inventory rests tonight at 681.10 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. It sure looks like 670 tonnes will be the rock bottom inventory in GLD gold. It looks to me that China has taken the last amounts of physical gold from the GLD. I guess the only place left for China to receive physical gold will be the FRBNY and the comex. In silver, we had no changes in silver inventory at the SLV tune of / Inventory rests at 324.968 million oz.
We have a few important stories to bring to your attention today…
1. Today, we had the open interest in silver fall by 1537 contracts down to 169,111 as silver was down by 54 cents in price with respect to yesterday’s trading. The OI for gold rose by 855 contracts to 439,640 contracts, despite the fact that gold was down by $6.20 yesterday. We still have 16.4140 tonnes of gold standing with only 14.68 tonnes of registered gold in the dealer vaults ready to satisfy that which stands.
(report Harvey)
2.Gold trading overnight, Goldcore
(/Mark OByrne)
3. Six stories on the collapsing Chinese markets, the devaluation of the yuan and the huge downfall in trading last night followed by today’s announcement of an RRR cut and also interest rate cuts. The move was to provide needed liquidity because China lost huge reserves protecting the yuan these past 6 weeks.
(Reuters/Bloomberg)
4. Troubles in Saudi Arabia
(zero hedge)
5. Troubles in one of the big emerging nations, Brazil
(two commentaries)
6. These emerging nations are already in correction mode:
(zero hedge)
8 Trading of equities/ New York
(zero hedge)
10. USA stories:
Shiller home prices falters a bit in today’s report(Case Shiller)
Richmond Manufacturing Fed falls to lowest level this year.(Richmond Fed/zero hedge)
USA PMI service index falls to lows of the year (PMI/zero hedge)
Take your pick on confidence levels: Government conference board high/Gallup low
Zero hedge on the real truth behind yesterday’s HFT trading
11. Physical stories:
Bill Holter interview
John Embry talks with Eric King
EU Probe on gold/silver manipulation (Bloomberg)
Koos Jansen on the reason for the devaluation of the yuan/revaluation of gold against the yuan.
Let us head over and see the comex results for today.
The total gold comex open interest rose from 438,785 up to 439,640, for a gain of 855 contracts despite the fact that gold was down $6.20 with respect yesterday’s trading. For the past two years, we have strangely witnessed two interesting developments with respect to the gold open interest: 1) total gold comex collapse in OI as we enter an active delivery month, and 2) a continual drop in the amount of gold standing in an active month, and today the latter continued with its decline in gold ounces standing. What is also interesting is that the LBMA gold is continually witnessing a 7.00 plus premium spot/next nearby month as gold is now in backwardation over there. We are now in the contract month of August and here the OI fell by 25 contracts falling to 1451 contracts. We had 0 notices filed yesterday and thus we lost 25 contracts or 2,500 additional ounces will not stand for delivery. The next delivery month is September and here the OI fell by 53 contracts down to 2467. The next active delivery month is October and here the OI fell by 84 contracts down to 27,742. The estimated volume on today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was fair at 197,332. The confirmed volume yesterday (which includes the volume during regular business hours + access market sales the previous day was good at 284,999 contracts.
Today we had 59 notices filed for 5900 oz.
And now for the wild silver comex results. Silver OI fell by 15,37 contracts from 170,648 down to 169,111 as silver was down by 54 cents in price yesterday . We continue to have some short covering as our bankers pulling their hair out with respect to the continued high silver OI as the world senses something is brewing in the silver arena. We are in the delivery month of August and here the OI fell by 0 contracts remaining at 25. We had 0 delivery notices filed yesterday and thus we neither gained nor lost any silver ounces standing in this non active month of August.
The next major active delivery month is September and here the OI fell by 12,282 contracts to 41,389. The estimated volume today was excellent at 82,827 contracts (just comex sales during regular business hours). First day notice is Monday, August 31.2015.
Options expiry on the comex contract ends tomorrow night. The confirmed volume yesterday (regular plus access market) came in at 142,737 contracts which is huge in volume. We had 24 notices filed for 120,000 oz. As a side note, the volume today equates to 713 million oz which is greater than annual production in silver from all of the world’s mines ex China ex Russia.
August contract month:
initial standing
August 25.2015
Gold
Ounces
Withdrawals from Dealers Inventory in oz
nil
Withdrawals from Customer Inventory in oz
14,680.971 oz (Scotia)
Deposits to the Dealer Inventory in oz
nil
Deposits to the Customer Inventory, in oz
nil
No of oz served (contracts) today
59 contract (5,900 oz)
No of oz to be served (notices)
1392 contracts (139,200 oz)
Total monthly oz gold served (contracts) so far this month
3885 contracts
(388,500 oz)
Total accumulative withdrawals of gold from the Dealers inventory this month
nil
Total accumulative withdrawal of gold from the Customer inventory this month
574,533.5 oz
Today, we had 0 dealer transactions
total Dealer withdrawals: nil oz
we had 0 dealer deposits
total dealer deposit: zero
we had 1 customer withdrawals
i) out of Scotia: 14,680.971 oz
total customer withdrawal: 14,680.971 oz
We had 0 customer deposits:
Total customer deposit: nil oz
We had 1 adjustment:
i) Out of HSBC:
3,396.227 oz was adjusted out of the dealer and this landed into the customer account of HSBC
JPMorgan has 7.1966 tonnes left in its registered or dealer inventory. (231,469.56 oz) and only 741,358.273 oz in its customer (eligible) account or 23.05 tonnes
.
Today, 0 notices was issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 59 contracts of which 0 notices were stopped (received) by JPMorgan dealer and 10 notices were stopped (received) by JPMorgan customer account.
To calculate the total number of gold ounces standing for the August contract month, we take the total number of notices filed so far for the month (3885) x 100 oz or 388,500 oz , to which we add the difference between the open interest for the front month of August (1451) and the number of notices served upon today (59) x 100 oz equals the number of ounces standing.
Thus the initial standings for gold for the August contract month:
No of notices served so far (3885) x 100 oz or ounces + {OI for the front month (1451) – the number of notices served upon today (59) x 100 oz which equals 530,200 oz standing so far in this month of August (16.414 tonnes of gold).
We lost 25 contracts or an additional 2500 ounces will not stand for delivery. Thus we have 16.414 tonnes of gold standing and only 14.78 tonnes of registered or dealer gold to service it. Today, again, we must have had considerable cash settlements.
Total dealer inventory 471,986.292 or 14.68 tonnes
Total gold inventory (dealer and customer) =7,296,141.754 or 226.94 tonnes)
Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 226,94 tonnes for a loss of 76 tonnes over that period.
end
And now for silver
August silver initial standings
August 25 2015:
Silver
Ounces
Withdrawals from Dealers Inventory
nil
Withdrawals from Customer Inventory
21,323.33 oz (HSBC,Brinks)
Deposits to the Dealer Inventory
nil
Deposits to the Customer Inventory
891,995.34 oz (Brinks,JPMorgan)
No of oz served (contracts)
24 contracts (120,000 oz)
No of oz to be served (notices)
1 contract (5,000 oz)
Total monthly oz silver served (contracts)
325 contracts (1,625,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month
85,818.47 oz
Total accumulative withdrawal of silver from the Customer inventory this month
8,349,485.0 oz
total dealer deposit: nil oz
Today, we had 0 deposits into the dealer account:
we had 0 dealer withdrawal:
total dealer withdrawal: nil oz
We had 2 customer deposit:
i) Into Brinks: 299,937.14 oz
ii) Into JPMorgan: 592,058.200 oz
total customer deposits: 891,995.340 oz
We had 2 customer withdrawals:
i) Out of HSBC: 20,336.64 oz
ii) Out of Brinks; 986.69 oz
total withdrawals from customer: 21,323.33 oz
we had 2 adjustments
i) Out of CNT:
we had 1,007,304.510 oz adjusted out of the dealer and this landed into the customer account of CNT
ii) out of Brinks:
we had 24,012.100 oz adjusted out of the customer and this landed into the dealer account of Brinks:
Total dealer inventory: 54.888 million oz
Total of all silver inventory (dealer and customer) 171.080 million oz
The total number of notices filed today for the August contract month is represented by 0 contracts for nil oz. To calculate the number of silver ounces that will stand for delivery in August, we take the total number of notices filed for the month so far at (325) x 5,000 oz = 1,625,000 oz to which we add the difference between the open interest for the front month of August (25) and the number of notices served upon today (24) x 5000 oz equals the number of ounces standing.
Thus the initial standings for silver for the August contract month:
325 (notices served so far)x 5000 oz + { OI for front month of August (25) -number of notices served upon today (24} x 5000 oz ,= 1,630,000 oz of silver standing for the August contract month.
we neither gained nor lost any silver ounces standing in this no active delivery month of August.
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 shareholdersii) demand from the bankers who then redeem for gold to send this gold onto Chinavs no sellers of GLD paper.
And now the Gold inventory at the GLD:
August 25.2015; an addition of 3.27 tonnes of gold into the GLD/Inventory rests at 681.10 tonnes.
August 24./no changes tonight at the GLD/Inventory rests at 677.83 tonnes
August 21.2015/another huge addition of 2.35 tonnes of gold into the GLD/(not sure if this is real physical or not)/inventory rests tonight at 677.83 tonnes
August 20/2015:a huge addition of 3.57 tonnes of gold into the GLD/Inventory rests tonight at 675.44 tonnes
August 19/no changes in inventory/GLD inventory rests tonight at 671.87 tonnes
August 18.2015: no changes in inventory/GLD inventory rests tonight at 671.87 tonnes
August 17.2015: no changes in inventory/GLD inventory rests tonight at 671.87 tonnes
August 14.2015: no changes in inventory/GLD inventory rests tonight at 671.87 tonnes
August 13.2015:/no changes in inventory/GLD inventory rests tonight at 671.87 tonnes
August 12./ a huge deposit of 4.18 tonnes of gold into the GLD/Inventory rests at 671.87 tonnes
August 11.2015: no change in gold inventory at the GLD/Inventory rests at 667.93 tonnes August 10/no change in gold inventory at the GLD/Inventory rests at 667.93 tonnes
August 7./no change in gold inventory at the GLD/Inventory rests at 667.93 tonnes August 6/no change in gold inventory at the GLD/Inventory rests at 667.93 tonnes August 5.we had a huge withdrawal of 4.77 tonnes from the GLD tonight/Inventory rests at 667.93 tonnes
August 4.2015: no change in inventory/rests tonight at 672.70 tonnes
August 3.2015: no change in inventory at the GLD./Inventory remains at 672.70 tonnes
August 25 GLD : 681.10 tonnes
end
And now SLV:
August 25.2015:no change in inventory at the SLV/Inventory rests at 324.698 million oz
August 24./no change in inventory at the SLV/Inventory rests at 324.698 million oz
August 21.2015/ no change in inventory at the SLV/Inventory rests at
324.698 million oz
August 20.2015:/no changes in inventory at the SLV/Inventory rests tonight at 324.698 million oz
August 19/no changes in inventory at the SLV/Inventory rests tonight at 324.698 million oz
August 18.2015: no changes in inventory at the SLV/Inventory rests tonight at 324.968 million oz
August 17.2015: no changes in inventory at the SLV/Inventory rests tonight at 324.968 million oz.
August 14/no changes in inventory at the SLV/Inventory rests at 324.968 million oz.
August 13.2013: a huge withdrawal of 1.241 million oz/Inventory rests tonight at 324.968 million oz
August 12.2015: no change in SLV inventory/rests tonight at 326.209 million oz.
August 11./ no changes in SLV inventory/rests tonight at 326.209 million oz.
August 10: no changes in SLV inventory/rests tonight at 326.209 million oz.
August 7.no changes in SLV/Inventory rests this weekend at 326.209 million oz
August 6/no changes in SLV/inventory rests at 326.209 million oz
August 5/ a small withdrawal of 142,000 oz of inventory leaves the SLV/Inventory rests tonight at 326.209 million oz
August 4.2015: a small withdrawal of 476,000 oz of inventory at the SLV/Inventory rests at 326.351 million oz August 3.2015; no change in inventory at the SLV/inventory remains at 326.829 million oz
August 25/2015: tonight inventory rests at 324.968 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 9.7 percent to NAV usa funds and Negative 9.5% to NAV for Cdn funds!!!!!!!
Percentage of fund in gold 62.6%
Percentage of fund in silver:37.1%
cash .3%( August 25/2015).
2. Sprott silver fund (PSLV): Premium to NAV falls to -0.13%!!!! NAV (August 25/2015) (silver must be in short supply)
3. Sprott gold fund (PHYS): premium to NAV rises to – .35% to NAV August 25/2015)
Note: Sprott silver trust back into negative territory at -13% Sprott physical gold trust is back into negative territory at -.35%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 for your overnight trading in gold and silver plus stories on gold and silver issues:
(courtesy/Mark O’Byrne/Goldcore)
Gold Glimmers as Global Market Fear Grips Investors
By Mark O’ByrneAugust 25, 20150 Comments
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DAILY PRICES
Today’s Gold Prices: USD 1,154.25, EUR 999.35 and GBP 730.56 per ounce.
Yesterday’s Gold Prices: USD 1,153.50, EUR 1,005.93 and GBP 734.34 per ounce.
(LBMA AM)
Gold in USD – 1 Year
Yesterday, gold rose initially prior to selling in the futures market saw gold fall $6.30 to $1153.10 in New York and ended down just 0.5%. Silver slipped 50 cents to $14.78 per ounce. Gold in euros and sterling fell by slightly more but still outperformed falling stock markets.
Gold performed well considering the stock market bloodbath yesterday. The fact that it is was only marginally lower despite market carnage bodes very well indeed for the coming months.
Frequently, gold is correlated with equities in the very short term and can fall when stock markets suffer sharp one day corrections. However, over the month and the quarter, gold has an inverse correlation with equities.
Gold appears to have once again anticipated the crisis and is acting like a safe haven in recent days – just at the moment when western investors need a safe haven and wealth preservation most.
We appear to be on the verge of new bear market in stocks and as we have been warning for some months now there is a real risk of a 1929 or 1987 style crash.
It is time to take stock and reduce allocations to equities and increasing allocations to cash and gold bullion.
Gold Glimmers as Global Market Fear Grips Investors
Gold last week broke above its 50-day moving average as a fresh round of negative news from around the globe rekindled investors’ interest in the yellow metal as a safe haven.
The ‘Fear Trade’, it seems, is in full force. Below are just a few of the recent news items that have made some investors skittish, which has supported gold prices:
China, the world’s second-largest economy, continues to slow. Its preliminary purchasing managers’ index (PMI) reading, released on Friday, came in at 47.8, a 77-month low. This follows China’s decision to devalue its currency, the renminbi, close to 2 percent. For the first time in a year, the Shanghai Composite Index fell below its 200-day moving average.
Crude oil is on an eight-week losing streak, the longest in 29 years. West Texas Intermediate (WTI) slipped below $40 per barrel in intraday trading Friday, the first time it’s done so since 2009.
U.S. stocks are undergoing an ugly selloff. They just had their worst week since September 2011 and are on track to post their worst month since May 2012. The Dow Jones Industrial Average, down 10 percent since its all-time high, is nearing correction territory. All 10 S&P 500 Index sectors were off last week.
We can also add to this list the high levels of margin lending on the New York Stock Exchange (NYSE) right now. At the end of every month, the exchange discloses margin amounts, and it appears that everyone is leveraged. Real margin debt growth since 1995 is twice as much as real S&P 500 growth.
Frank Holmes is a leading expert on gold, precious metals and the natural resource market. He is CEO and chief investment officer at U.S. Global Investors Inc.. He is a regular commentator on the financial television networks CNBC, Bloomberg and Fox Business, and has been profiled by Fortune, Barron’s, The Financial Timesand other publications. He came up with the concept of the ‘fear trade’ and the ‘love trade’ in gold. This simply means many investors particularly in the West buy gold on ‘fear’ or concerns about risks in markets but that there are also many who buy gold due to their cultural affinity and a ‘love’ of gold – particularly in the Middle East, India, China and most of Asia.
Holmes latest research piece on gold is timely and as ever well worth a read and is published on Forbes here
IMPORTANT NEWS
“Frequently, gold is correlated with equities in the very short term” said GoldCore – MarketWatch
Gold holds below seven-week high as dollar, equities recover – Reuters
Dow Industrials Tumble Nearly 600 Points Amid Global Market Selloff – The Wall Street Journal
China share plunge smacks world markets; S&P, Nasdaq in correction – Reuters
Chinese Stocks Crash Again to Extend Biggest Plunge Since 1996 -Bloomberg
IMPORTANT COMMENTARY
Gold Glimmers as Global Market Fear Grips Investors – Forbes
Peak Gold Is Looming – Bloomberg
SWOT Analysis: Will Gold’s Oversold Rebound Continue? – GoldSeek.com
AEP: China’s market Leninism turns dangerous for the world – The Telegraph
“Hang On To Your Gold” – Stepek – MoneyWeek
Click on News and Commentary
end
Koos Jansen: Theory on China’s gold strategy
Submitted by cpowell on Mon, 2015-08-24 12:05. Section: Daily Dispatches
8a ET Monday, August 24, 2015
Dear Friend of GATA and Gold:
Gold researcher and GATA consultant Koos Jansen writes today that the policies of the People’s Bank of China imply more moves toward gold for itself and for the country’s population as the bank uses gold as a mechanism for adjusting the value of the nation’s currency — just as the enabling act for the European Central Bank authorizes that bank to trade currencies and gold to adjust the value of the euro.
Jansen reports that when China devalued its currency, the yuan, by 3 percent the other day, the gold price in yuan rose 5 percent.
Of course the U.S. government, through the Gold Reserve Act of 1934, as amended, long has authorized itself to trade secretly in any market not just to adjust the value of the dollar but to rig any market whatsoever, even as the U.S. government preaches free markets to the rest of the world.
Jansen’s analysis is headlined “Theory on China’s Gold Strategy” and it’s posted at Bullion Star here:
https://www.bullionstar.com/blogs/koos-jansen/theory-on-chinas-gold-stra…
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org
end
Bill Holter, last night talking about yesterday’s events;
extremely important….
Posted August 24th, 2015 at 5:53 PM (CST) by Bill Holter & filed under Bill Holter.
Dear CIGAs,
As a follow up from yesterday’s A Weekend’s Heads Up , my thoughts were truly an understatement for today’s action! The open was far weaker than I had anticipated, down 1,089 points. This was the biggest point drop in Dow history. The volatility was out of control with the VIX trading to 53, the highest since Feb. 2009! An illustration of how much and how fast the volatility was, total point movement in the first 90 minutes was 3,000 Dow points, 4,900 total for the day! Truly incredible!
So where do we go from here? Unless we get some sort of central bank news out of China, we open down again tomorrow and see if they can get a reversal going. We are well over sold and due a bounce …but ALL crashes have occurred from oversold readings. While talking to Jim after the close, he initially said “the PPT got their ass kicked today, it would not have happened if I was running their desk”. Let me explain this because it is SO IMPORTANT.
Today was all about credibility and confidence. “They” could not allow what actually happened because it showed weakness. Or better yet, it exposed their inability to hold it all together. Today was not about margin calls, Mom and Pop selling or even mutual fund/pension plans. No, you saw “algorithms” go wild today and it turned out the algos were bigger than the PPT. Huge mistake by the PPT because just as in a street fight, “weakness” provokes aggression and now the algos know how powerful their punch is! They could not let “it happen” …they did, HUGE MISTAKE!
After the close, the muppets at CNBC are already pleading for help from the Fed. Jim summed it up when he penned this:
“A market break like today (called recalibration by financial TV money bunnies) in which the PPT was defeated screams “ultimate deflation.”
The immediate implication of “Ultimate Deflation” among the unwashed and not knowing is bearish on gold.
The basis for our thesis on gold and major new highs in metals is “Ultimate Deflation” and how global central banks will react.”
For those who do not understand, the Fed (as I mentioned yesterday and previously) has a zero percent chance of raising rates and will in fact be forced into further QE. The “Ultimate Deflation” we are experiencing guarantees that central banks ALL OVER THE WORLD will be forced to print and debase furiously! It is not the current action that will kill you…it is the REACTION from the central banks!
Today was a “warning shot” to start, maybe even a shot INTO the bow as the close stunk up the joint. I still expect some sort of stabilization where investors (lead on by the CNBC muppets) will breathe a very short term sigh of relief. Whether this lasts only a day or two or several weeks, I have no idea. I would suggest that any stability should be used as an exit!
Speaking of “exits”, if I were the Chinese or other large holders of Treasuries, I would be using the current strength as my exit plan. Capital poured into Treasuries in a safe haven bid, I would use these bids and hit them with everything I had. In fact, I believe we may very soon see the day when the U.S. Treasury market gets hit hard along with stocks and the dollar. This will be your clue the “end” is quite imminent. WATCH TREASURY YIELDS, when they inexplicably begin to rise, understand what they are telling you!
Lastly, this is not about China, it is not a “correction”, it is not because of a “slowdown”. This is the beginning of the Great Credit Unwinding and will take EVERYTHING “credit” with it. Do you understand what “everything credit” actually is?
In today’s world, anything and everything financial (including real estate) is credit. EVERYTHING is now credit! By now I probably should not have to explain what is “not credit”. Simply put, “real physical gold and silver unencumbered”.
You will soon see this as the credibility of central banks will be called into question. The viability of derivatives will be called into question. The solvency of sovereigns (including the U.S. Treasury) will be called into question. The entire global fiat system will be called into question! The conversation may go something like this;
You have been weighed. You have been measured.
And you have absolutely…
Been found wanting!
Welcome to the New World. God save you, if it is right that he should do so.
It has been and is all about “confidence”. Confidence has been the ONLY thing holding the Ponzi scheme together. The PPT allowed confidence a very black and swollen eye today. Nothing “credit” on the planet will stand upon the knockout of confidence!
Standing watch,
Bill Holter
Holter-Sinclair collaboration
Comments welcome bholter@hotmail.com
Disastrous Day that Confidence Broke!
end
The following is interesting: we are finally getting a serious precious metals probe by the EU
(courtesy Gaspard Morris/Bloomberg/GATA)
Precious-Metals Trading Is Probed by EU After U.S. InquiryGaspard Sebag Stephen Morris
August 25, 2015 — 5:15 AM EDT Updated on August 25, 2015 — 11:35 AM EDT
European Union antitrust regulators are investigating precious-metals trading following a U.S. probe that embroiled some of the world’s biggest banks.
The European Commission disclosed the review after HSBC Holdings Plc said in a filing earlier this month that it had received a request for information from the EU in April. The watchdog is examining possible anti-competitive behavior in spot trading, Ricardo Cardoso, a spokesman for the regulator, said in an e-mail.
“This is just another potential scandal where fines will suppress banks’ earnings, and rightly so,” said Sandy Chen, a London-based banking analyst at Cenkos Securities Plc.
U.S. prosecutors have been examining whether at least 10 banks, including Barclays Plc, JPMorgan Chase & Co. and Deutsche Bank AG, manipulated prices of precious metals such as silver and gold. The scrutiny follows international probes into the rigging of financial benchmarks for rates and currencies, which have yielded billions of dollars in fines.
The trio was among financial companies that agreed in an EU settlement to pay a total of 1.7 billion euros($1.9 billion) in December 2013 for colluding over derivatives linked to the London and euro interbank offered rates. HSBC remains under investigation in the Euribor case after refusing to join the accord.
HSBC ‘Cooperating’HSBC said in its half-year earnings report on Aug. 3 that the Brussels-based commission in April sought details about its precious-metals operations and that it’s “cooperating” with the authorities.
In the U.S., UBS Group AG said in May that it won immunity from criminal fraud charges in a Justice Department investigation into misconduct in the trading of precious metals.
The Swiss bank has successfully dodged antitrust penalties after blowing the whistle. It avoided a 2.5 billion-euro EU fine after helping officials with their yen Libor case. The company is also poised to get immunity in the EU’s currency rigging case, a person familiar with that probe said last year.
UBS declined to comment on the EU metals inquiry beyond its second-quarter report, which noted investigations by a number of authorities into precious-metals prices.
Barclays said in a July filing it has been “providing information to the DOJ and other authorities in connection with investigations into precious metals and precious metals-based financial instruments.”
Joanne Walia, a Barclays spokeswoman, declined to comment on whether the authorities included the EU. Representatives for the other banks didn’t immediately respond to requests for comment.
The EU’s investigation is preliminary at this stage and the regulator doesn’t always levy fines or sanctions.
http://www.bloomberg.com/news/articles/2015-08-25/eu-commissi
on-is-probing-precious-metals-operations
end
(courtesy John Embry/Kingworldnews/Eric King)
On KWN, Embry discusses China crash and PPT’s rescue of U.S. stocks
Submitted by cpowell on Tue, 2015-08-25 12:11. Section: Daily Dispatches
8:10a ET Tuesday, August 25, 2015
Dear Friend of GATA and Gold:
Sprott Asset Management’s John Embry, interviewed by King World News, discusses China’s stock market crash and the work of the Plunge Protection Team in pushing the U.S. stock market back up on Monday. An excerpt from the interview is posted at the KWN blog here:
http://kingworldnews.com/worldwide-chaos-in-global-markets-continues-as-…
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org
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And now your overnight Tuesday morning trading in bourses, currencies, and interest rates from Europe and Asia:
1 Chinese yuan vs USA dollar/yuan falls considerably this time to 6.4115/Shanghai bourse: red and Hang Sang: green
Surprisingly, last week, officially, China added another 19 tonnes of gold to its official reserves now totaling 1677.
2 Nikkei down 733.98 or 3.96.%
3. Europe stocks all deeply in the green (with the new Chinese rate cut) /USA dollar index up to 94.03/Euro down to 1.1504
3b Japan 10 year bond yield: rises to .378% !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 120.08
3c Nikkei now below 20,000
3d USA/Yen rate now just below the 121 barrier this morning
3e WTI 39.36 and Brent: 44.00 (this should blow up the shale boys)
3f Gold down /Yen down
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 hugely to .695 per cent. German bunds in negative yields from 4 years out.
Except Greece which sees its 2 year rate falls slightly to 13.27%/Greek stocks this morning up by 8/36%: still expect continual bank runs on Greek banks /
3j Greek 10 year bond yield rises to : 10.06%
3k Gold at $1148.50 /silver $14.80 (8 am est)
3l USA vs Russian rouble; (Russian rouble up 1 1/4 in roubles/dollar) 69.62,
3m oil into the 39 dollar handle for WTI and 44 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 (already upon us). This can spell financial disaster for the rest of the world/China forced to do QE!! as it lowers its yuan value to the dollar.
30 SNB (Swiss National Bank) still intervening again in the markets driving down the SF. It is not working: USA/SF this morning .9421 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0837 well above 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 4 year German bund now enters in negative territory with the 10 year moving further from negativity to +.695%
3s The ELA lowers to 89.7 billion euros, a reduction of .7 billion euros for Greece. The bank withdrawals were causing massive hardship to the Greek bank. the Greek referendum voted overwhelming “NO”. Greece votes again and agrees to more austerity even though 79% of the populace are against.
4. USA 10 year treasury bond at 2.07% early this morning. Thirty year rate below 3% at 2.81% / yield curve flatten/foreshadowing recession.
5. Details Ransquawk, Bloomberg, Deutsche bank/Jim Reid.
(courtesy Jim Reid/Bloomberg/Deutsche bank/zero hedge)
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US Equity Futures Soar 4% After PBOC Rate Cut; Chinese Futures Jump After Overnight Market Crash
The PBOC was supposed to cut rates over the weekend – the risk, as we warned on Friday, was that it would not. It did not, and the result was a 16% plunge for the Shanghai Composite over the past two days as China’s underwater investors realized China may have finally forsaken them, which dragged down the benchmark index not only red, but down 7% for the year after it had been up 60% in mid-June.
Still, while China was crashing overnight (it closed down 7.6% at 2,965, or below the “other” hard support level, down 16% in the past two days), other markets were relatively stable, if weak toward the end such as the Nikkei which tumbled 5%, soared 2% then retumbled 4% into the close although both Europe and the US posted solid