Gold $1254.00 up $1.50
Silver 17.47 up 5 cents
In the access market 5:15 pm
Gold: 1256.00
Silver: 17.66
THE DAILY GOLD FIX REPORT FROM SHANGHAI AND LONDON
.
The Shanghai fix is at 10:15 pm est and 2:15 am est
The fix for London is at 5:30 am est (first fix) and 10 am est (second fix)
Thus Shanghai’s second fix corresponds to 195 minutes before London’s first fix.
And now the fix recordings:
Shanghai morning fix OCT 11 (10:15 pm est last night): $ 1262.18
NY ACCESS PRICE: $1259.00 (AT THE EXACT SAME TIME)
Shanghai afternoon fix: 2: 15 am est (second fix/early morning):$ 1263.11
NY ACCESS PRICE: 1257.00 (AT THE EXACT SAME TIME)
HUGE SPREAD TODAY!!
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
London Fix: OCT 11: 5:30 am est: $1256.40 (NY: same time: $1256.40: 5:30AM)
London Second fix OCT 11: 10 am est: $1253.45 (NY same time: $1254.10 , 10 AM)
It seems that Shanghai pricing is higher than the other two , (NY and London). The spread has been occurring on a regular basis and thus I expect to see arbitrage happening as investors buy the lower priced NY gold and sell to China at the higher price. This should drain the comex.
Also why would mining companies hand in their gold to the comex and receive constantly lower prices. They would be open to lawsuits if they knowingly continue to supply the comex despite the fact that they could be receiving higher prices in Shanghai.
end
For comex gold:
3 NOTICES FILED FOR 300 OZ
For silver:
for the Oct contract month: 0 notices for NIL oz.
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Let us have a look at the data for today
.
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In silver, the total open interest FELL by 685 contracts DOWN to 188,783. The open interest FELL as the silver price was UP 11 cents in Friday’s trading .In ounces, the OI is still represented by just less THAN 1 BILLION oz i.e. .943 BILLION TO BE EXACT or 134% of annual global silver production (ex Russia &ex China).
In silver for October we had 0 notices served upon for nil oz
In gold, the total comex gold rose by 2122 contracts with the tiny fall in price of gold( $0.50 on Friday) . The total gold OI stands at 505,845 contracts. The bankers have done a great job fleecing longs
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With respect to our two criminal funds, the GLD and the SLV:
GLD
LAST NIGHT WE HAD A HUGE CHANGE OUT OF THE GLD//
A MASSIVE INCREASE OF 9.76 TONNES
Total gold inventory rests tonight at: 958.90 tonnes of gold
SLV
we had A HUGE WITHDRAWAL at the SLV to the tune of 1.762 million oz
THE SLV Inventory rests at: 361.147 million oz
.
First, here is an outline of what will be discussed tonight:
1. Today, we had the open interest in silver FELL by 2122 contracts DOWN to 188,783 as the price of silver rose by 11 cents with Friday’s trading.The gold open interest ROSE by 2122 contracts UP to 505,845 as the price of gold fell $0.50 IN FRIDAY’S TRADING.
(report Harvey).
2.a) The Shanghai and London gold fix report
(Harvey)
2 b) Gold/silver trading overnight Europe, Goldcore
(Mark O’Byrne/zerohedge
and in NY: Bloomberg
end
2c) Federal Reserve Bank of New York/earmarked gold removal
(Harvey)
3. ASIAN AFFAIRS
i)Late MONDAY night/TUESDAY morning: Shanghai closed UP 17.10 POINTS OR .56%/ /Hang Sang closed DOWN 302.30 POINTS OR 1.27%. The Nikkei closed UP 164.67 POINTS OR 0.98% Australia’s all ordinaires CLOSED UP 0.08% /Chinese yuan (ONSHORE) closed DOWN at 6.67197/Oil FELL to 50L84 dollars per barrel for WTI and 52.70 for Brent. Stocks in Europe: ALL IN THE GREEN Offshore yuan trades 6.67282 yuan to the dollar vs 6.67197 for onshore yuan.THE SPREAD BETWEEN ONSHORE AND OFFSHORE WIDENS QUITE A BIT AS MORE USA DOLLARS LEAVE CHINA’S SHORES
REPORT ON JAPAN SOUTH KOREA NORTH KOREA AND CHINA
3a)Korea:
none
b) REPORT ON JAPAN
none today
c) REPORT ON CHINA
i)China has a huge housing bubble as home prices rise exponentially in tier 1 cities. Over 71% of all new Chinese loans go to fund mortgages on homes. Chinese debt to GDP is over 300% (approx. 31 trillion USA) and a huge proportion of debt is non performing and debt holders cannot even pay interest on their debt.
(courtesy zero hedge)
ii)Over the course of the past year, we have highlighted to you the huge problems facing China with respect to their huge debt. China has a corporate debt of 20 trillion USA and a total debt of 31 trillion against a GDP of only 10 trillion. Thus it’s debt to GDP is a staggering 300% and as much as 25% of their loans are non performing. We now get a study which suggests that China will need to recapitalize their banks by 1.7 trillion USA and that would be impossible as USA funds are fleeing the country:
( zero hedge)
4 EUROPEAN AFFAIRS
i)A bail in is likely now as DB’s CEO returns home empty handed after failing to reach a deal with the dept of Justice.
( zero hedge)
ii)Even in the world of negative interest rates, Deutsche bank fund costs are considerably higher than its peer: -17 basis points vs -28 basis points !! IN this negative interest rate world that can only signify its creditworthiness is basically ZERO!!!!!~
( zero hedge)
iii) GREAT BRITAIN
Great reason for gold to fall!
the pound crashes today!!:
(courtesy zero hedge)
5. RUSSIAN AND MIDDLE EASTERN AFFAIRS
i)TURKEY/RUSSIA
Turkey and Russian finally sign the very strategic Turkish steam gas pipeline which will run under the Black Sea. This is a death blow to the Qatar-Saudi Arabia- pipeline proposal. The uSA are not happy campers with this.
Also Egypt needs 12 billion dollars in aid and are approaching Moscow. Will Egypt switch alliance and go over to Russian influence as Russia will propose air bases on Egyptian soil:
( zero hedge)
ii)FRANCE/RUSSIA
Brilliant!! Putin cancels trip to France after Hollande accuses the Russians of war crimes:
( zero hedge)
iii) RUSSIA
RUSSIA
I do not know about you, but I think the following is quite alarming; The Russian government has told Russian students studying abroad to immediately return to Russia:
That news should cause gold to fall a little more. Not alarming enough
( zero hedge)
6.GLOBAL ISSUES
The following is important: Bridgewater’s Ray Dalio calculates that a rise in yield of just one per cent would cause a loss of 2.4 trillion dollars to global bond investors
( Ray Dalio/Brigewater/zero hedge)
7.OIL ISSUES
There does not seem to be a production cut in oil
( zero hedge)
8.EMERGING MARKETS
none today
9.PHYSICAL STORIES
i)Interesting: we have crash crashes galore and central banks investigates all except a crash in gold. I wonder why
( Chris Powell/GATA)
ii)Last week’s dry by shooting of gold was caused by a huge paper avalanche orchestrated by central banks and the BIS. Their gold reserves are never audited because they have been compromised by leasing and hypothecation:
( Egon Von Greyerz/Kingworldnews)
iii)UBS’s Axel Eeber warns of the danger of massive central bank intervention.He is correct.
( Axel Weber/UBS)
iv)India’s gold demand gets rolling again:
( Dave Kranzler/Ird)
10.USA STORIES WHICH MAY INFLUENCE THE PRICE OF GOLD/SILVER
i)The following confirms and proves that Hillary new that Saudi Arabia and Qatar fund ISIS:
( zero hedge)
ii)It sure looks like Eliz. Warren will go ballistic as it seems that the fake account creation goes back to 2005 and not 20111 as Wells Fargo head Stumpf testified to Congress.
( zero hedge)
iii)This is a biggy!! Janet’s all import LMCI labor index is crashing. How on earth can she raise rates when her favourite labour index is falling out of bed
( zero hedge)
Let us head over to the comex:
The total gold comex open interest ROSE BY 2,122 CONTRACTS to an OI level of 505,845 the as price of gold fell by $0.50 with FRIDAY’S trading.
We are in the delivery month is October and here the OI LOST 3 contracts DOWN to 298. We had 3 notices filed on Friday so we NEITHER GAINED NOR LOST ANY GOLD OUNCES STANDING.
The next delivery month is November and here the OI ROSE by 47 contracts up to 3025 contracts. The next contract month and the biggest of the year is December and here this month showed an decrease of 56 contracts down to 385,974.
VOLUMES:
Today we had 3 notices filed for 300 oz of gold.
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And now for the wild silver comex results. Total silver OI FELL BY 685 contracts from 189,468 DOWN TO 188,783 as the price of silver rose to the tune of 11 cents yesterday. We are moving further from the all time record high for silver open interest set on Wednesday August 3: (224,540). The next non active delivery month is October and here the OI rose by 1 contracts up to 112. We had 4 notices filed on FRIDAY so we gained 5 contracts or 25,000 additional oz will stand for delivery.The November contract month saw its OI FELL by 9 contracts DOWN to 344. The next major delivery month is December and here it FELL BY 1717 contracts DOWN to 155,211
VOLUMES.
today we had 0 notices filed for silver: 45,000 oz
INITIAL standings for OCTOBER
Oct 11.
Gold
Ounces
Withdrawals from Dealers Inventory in oz
NIL
Withdrawals from Customer Inventory in oz nil
85,197.500 Scotia
2650 kilobars
Deposits to the Dealer Inventory in oz
1599.97 oz
Brinks
Deposits to the Customer Inventory, in oz
xxx oz
No of oz served (contracts) today
3 notices
300 oz
No of oz to be served (notices)
295 contracts
29,500
oz
Total monthly oz gold served (contracts) so far this month
7789 contracts
778,900 oz
24.22 tonnes
Total accumulative withdrawals of gold from the Dealers inventory this month
oz
Total accumulative withdrawal of gold from the Customer inventory this month
85,197.500 oz
Today we had 1 kilobar transaction and again the comex resumes it huge withdrawal of gold!!
Today we had one deposit into the dealer:
i) Into Brinks: 1599.97 oz
total dealer deposits: 1599.97 oz
We had zero dealer withdrawals:
total dealer withdrawals: nil oz
.
We had 0 customer deposits;
total customer deposits; nil oz
We had one major customer withdrawal:
Out of Scotia: 85,197.500 oz (2,650 oz)
total customer withdrawal: 85,197.500 oz
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Total dealer inventor 2,463.441.449 or 76.623 tonnes
Total gold inventory (dealer and customer) =10,662,011.249 or 331.633 tonnes
Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 331.633 tonnes for a gain of 29 tonnes over that period. However since August 8 we have lost 22 tonnes leaving the comex.
For October:
Today, 0 notices were issued from JPMorgan dealer account and 0 notices were issued form their client or customer account. The total of all issuance by all participants equates to 3 contract of which 0 notices were stopped (received) by jPMorgan dealer and 0 notice(s) was (were) stopped received) by jPMorgan customer account.
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To calculate the initial total number of gold ounces standing for the Oct contract month, we take the total number of notices filed so far for the month (7789) x 100 oz or 778,900 oz, to which we add the difference between the open interest for the front month of OCT 298 contracts) minus the number of notices served upon today (3) x 100 oz per contract equals 808,400 oz, the number of ounces standing in this NON active month of September.
Thus the INITIAL standings for gold for the SEPT contract month:
No of notices served so far (7789) x 100 oz or ounces + {OI for the front month (301) minus the number of notices served upon today (3) x 100 oz which equals 808,400 oz standing in this non active delivery month of Oct (25.144 tonnes).
we NEITHER GAINED NOR LOST ANY GOLD OUNCES STANDING.
The gold comex is an absolute fraud. The use of kilobars and exact weights makes the data totally absurd and fraudulent! To me, the only thing that makes sense is the fact that “kilobars: are entries of hypothecated gold sent to other jurisdictions so that they will not be short with their underwritten derivatives in that jurisdiction. This would be similar to the rehypothecated gold used by Jon Corzine.ALSO TODAY THE LIQUIDATION OF 96 CONTRACTS HAVING STOOD FOR THE ENTIRE MONTH AND THEN ROLLING MAKES ABSOLUTELY NO SENSE
IN THE LAST MONTH and one half , 20 NET TONNES HAS LEFT THE COMEX.
end
And now for silver
OCT INITIAL standings
Oct 11. 2016
Silver
Ounces
Withdrawals from Dealers Inventory
NIL
Withdrawals from Customer Inventory
663,498.29 oz
Brinks
Scotia
Deposits to the Dealer Inventory
nil OZ
Deposits to the Customer Inventory
nil oz
No of oz served today (contracts)
0 CONTRACTS
(20,000 OZ)
No of oz to be served (notices)
112 contracts
(560,000 oz)
Total monthly oz silver served (contracts)
353 contracts (1,765,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month
NIL oz
Total accumulative withdrawal of silver from the Customer inventory this month
1,083,508.0 oz
today, we had 0 deposit into the dealer account:
total dealer deposit: nil oz
we had 0 dealer withdrawals:
total dealer withdrawals: nil oz
we had 2 customer withdrawals:
i) Out of Brinks;; 602,756.22 oz
ii) Out of Scotia: 60,742.07 oz
Total customer withdrawals: 663,498.29 oz
We had 0 customer deposit:
total customer deposits: nil oz
we had 0 adjustments
The total number of notices filed today for the Oct contract month is represented by 0 contracts for NIL oz. To calculate the number of silver ounces that will stand for delivery in OCT., we take the total number of notices filed for the month so far at 353 x 5,000 oz = 1,765,000 oz to which we add the difference between the open interest for the front month of OCT (112) and the number of notices served upon today (0) x 5000 oz equals the number of ounces standing
Thus the initial standings for silver for the OCT contract month: 353(notices served so far)x 5000 oz +(112 OI for front month of SEPT ) -number of notices served upon today (0)x 5000 oz equals 2,325,000 oz of silver standing for the OCT contract month. THIS IS STILL A HUGE SHOWING FOR SILVER AS OCTOBER IS GENERALLY A VERY WEAK DELIVERY MONTH. We gained 25,000 additional silver ounces THAT WILL STAND.
Total dealer silver: 29.286 million (close to record low inventory
Total number of dealer and customer silver: 173.066 million oz
The total open interest on silver is NOW close to its all time high with the record of 224,540 being set AUGUST 3.2016. The registered silver (dealer silver) is NOW NEAR multi year lows as silver is being drawn out at both dealer and customer levels and heading to China and other destinations. The shear movement of silver into and out of the vaults signify that something is going on in silver.
end
And now the Gold inventory at the GLD
Oct 11/ what!!! we had a gigantic 9.76 tonnes of inventory increase today/inventory rests at 958.90 tonnes. (this was done with gold down?)
Oct 7: 949.14 tonnes
SEPT 30/no changes at the GLD/Inventory rests at 949.14 tonnes
SEPT 29/no changes at the GLD/Inventory rests at 949.14 tonnes
SEPT 28/ NO CHANGES AT THE GLD/INVENTORY RESTS AT 949.14 TONNES
SEPT 27/A huge withdrawal of 2.08 tonnes from the GLD/Inventory rests at 949.14 tonnes/
SEPT 26./no changes in gold inventory at the GLD/Inventory rests at 951.22 tonnes
SEPT 23/A SMALL CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF .3 TONNES/INVENTORY RESTS AT 951.22 TONNES
Sept 22/a huge deposit of 6.53 tonnes of gold into the GLD/Inventory rests at 950.92 tonnes/this would be a paper deposit entry/
SEPT 21/ A HUGE DEPOSIT OF 5.69 TONNES INTO THE GLD/INVENTORY RESTS AT 944.39 TONNES
SEPT 20/A HUGE CHANGES IN INVENTORY AT THE GLD/: A WITHDRAWAL OF 3.86 TONNES/INVENTORY RESTS AT 938.75 TONNES
SEPT 19/2016: 10.39 TONNES WERE ADDED INTO THE GLD/THIS WOULD BE A “PAPER DEPOSIT”/INVENTORY RESTS AT 942.61 TONNES
Sept 16./no change in gold inventory at the GLD/Inventory rests at 932.22 tonnes
SEPT 15/another paper withdrawal of 3.27 tonnes of “gold” inentory leaves the GLD/Inventory rests at 932.22 tonnes
SEPT 14./A withdrawal of 4.45 tonnes of gold inventory from the GLD/Inventory rests at 935.49 tonnes
SEPT 13/no changes in gold inventory at the GLD/Inventory rests at 939.94 tonnes
Sept 12/no changes in gold inventory at the GLD/inventory rests at 939.94 tonnes
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Oct 11/ Inventory rests tonight at 958.90 tonnes
end
Now the SLV Inventory
Oct 11/ a withdrawal of 1.762 million oz of inventory from the SLV/Inventory rests at 361.147 million oz/
SEPT 30/no change at the SLV/inventory rests at 362.909 million oz/
SEPT 29/we had no changes at the SLV/Inventory rests at 362.909 million oz/
SEPT 28/ WE HAD A HUGE WITHDRAWAL OF 1.614 MILLION OZ FROM THE SLV/INVENTORY RESTS AT 362.909 MILLION OZ/
SEPT 27./no change in silver inventory at the SLV/Inventory rests at 364.523 million oz/
SEPT 26./no changes in silver inventory at the SLV./Inventory rests at 364.523 million oz/
SEPT 23./A HUGE CHANGE IN INVENTORY AT THE SLV: AN ADDITION OF 1.044 MILLION OZ INTO INVENTORY/INVENTORY RESTS AT 364.523 MILLION OZ/
Sept 22/no change in inventory at the SLV/Inventory rests at 363.479 million oz/
SEPT 21/NO CHANGES IN INVENTORY AT THE SLV/INVENTORY RESTS AT 363.479 MILLION OZ/
SEPT 20/NO CHANGES IN INVENTORY AT THE SLV/INVENTORY RESTS AT 363.479 MILLION OZ
SEPT 19/A HUGE ADDITION OF 1.045 MILLION OZ WAS ADDED INTO THE SLV/INVENTORY RESTS AT 363.479 MILLION OZ/
Sept 16/no changes in silver inventory/inventory rests at 362.434 million oz/
SEPT 15/no change in silver inventory/inventory rests at 362.434 million oz.
SEPT 14/no change in silver inventory at the SLV/Inventory rests at 362.434 million oz
sept 13/2016: a huge deposit of 1.329 million oz into the SLV/Inventory rests at 362.434 million oz/
Sept 12/a huge withdrawal of 1.614 million oz from the SLV/Inventory rests at 361.105 million oz
.
Oct 11.2016: Inventory 361.147 million oz
end
NPV for Sprott and Central Fund of Canada
will not provide today.
1. Central Fund of Canada: traded at Negative 5.4 percent to NAV usa funds and Negative 5.3% to NAV for Cdn funds!!!!
Percentage of fund in gold 59.5%
Percentage of fund in silver:39.4%
cash .+1.1%( Oct 11/2016).
2. Sprott silver fund (PSLV): Premium RISES to +1.19%!!!! NAV (OCT 11/2016)
3. Sprott gold fund (PHYS): premium to NAV falls TO 1.05% to NAV ( OCT 11/2016)
Note: Sprott silver trust back into POSITIVE territory at 1.19% /Sprott physical gold trust is back into positive territory at 1.05%/Central fund of Canada’s is still in jail.
end
FEDERAL RESERVE BANK OF NEW YORK/GOLD INVENTORY MOVEMENT:
Last month we had a reading of 7883 million dollars worth of gold at the FRBNY at $42.22 dollars per oz. This month we had a reading of 7849 million dollars
Thus we had 34 million dollars worth of gold valued at $42.22 shipped out.
In oz:
34,000,000 divided by $42.22 = 805,305 oz
in tonnage:25.048 tonnes
Since Germany is the only official nation seeking its gold, no doubt that this gold was repatriated towards Frankfurt.
end
And now your overnight trading in gold,TUESDAY MORNING and also physical stories that may interest you:
Trading in gold and silver overnight in Asia and Europe
Ron Paul Says Gold Going Up” Whether Trump Or Clinton Elected
By Mark O’ByrneOctober 11, 20160 Comments
Gold prices “are going up” whether Trump or Clinton are elected according to most analysts in the gold market including former Libertarian and Republican presidential candidate Ron Paul.
Even Goldman Sachs, the primary significant bearish voice regarding gold prices is now bullish on gold in the medium and long term.
Ron Paul, an astute observer of the markets, warned in a CNBC interview that “if investors are looking for the next U.S. president to create stability in the markets, it’s not going to happen.”
Along with jitters about the Federal Reserve’s next move on interest rates, investors are weighing whether Democratic contender Hillary Clinton or Republican nominee Donald Trump will be better for investors. The libertarian icon and former Texas Congressman suggested market players may not want to hold their breath.
“Politically speaking, there is going to be a lot more uncertainty and that may go into the markets … If people are depending on political stability to get the market going I don’t think it’s going to work out.”
“I think [the election] is up for grabs. It will depend on how many people stay at home,” he explained. “People are so disgusted with the two candidates that it’s pretty hard to predict” which will prevail, he said.
For Paul, it doesn’t matter what the outcome is in November, as he doesn’t see much of a difference between the two parties.
“Nothing ever really changes regardless of which party wins. Governments keep growing, the deficits keep growing and the Fed keeps borrowing and printing more money,” he said. “I don’t expect a lot to change.”
But there is one area of the market that the former Libertarian and Republican presidential candidate sees flourishing in the long-term – Gold:
“If the economy is truly getting better, that would be better for gold long-term,” said Paul. “Short-term gold has taken a big hit and it could very well go down more, but it’s still up 10 percent from a year ago.”
Paul noted that gold has returned 300 percent since the year 2000 while the Nasdaq has rallied just 6 percent.
“The laws of economics are more powerful than all the politicians and all the bankers. It’s just that it’s erratic and very up and down and takes a while to sort out,”Paul added.
“Believe me, gold prices are going up …”
Watch Ron Paul CNBC interview here
Gold and Silver Bullion – News and Commentary
Gold slips on dollar strength after two sessions of gains (Reuters)
Dollar Strengthens for Second Day as Treasury Yields Rise on Oil (Bloomberg)
Gold recovers after biggest weekly drop this year (Reuters)
Commodities round-up: Vladimir Putin’s comments trigger oil futures spike (IBTimes)
Vlad’s birthday present: Putin gets special £3,000 iPhone 7 made in his honour (DailyStar)
China must wean itself off debt addiction if is to avoid financial calamity, warns IMF (Telegraph)
There will be a hard Brexit (DavidMCWilliams)
There are people mining gold illegally in California’s hills (BBC)
UBS’ Weber Warns on Danger of ‘Massive Interventions’ by Central Banks (CNBC)
Gold ETPs continue to see gains in September (WorldGoldCouncil)
Gold Prices (LBMA AM)
11 Oct: USD 1,256.40, GBP 1,021.58 & EUR 1,130.76 per ounce
10 Oct: USD 1,262.10, GBP 1,016.62 & EUR 1,129.71 per ounce
07 Oct: USD 1,255.00, GBP 1,012.91 & EUR 1,127.62 per ounce
06 Oct: USD 1,265.50, GBP 994.30 & EUR 1,131.23 per ounce
05 Oct: USD 1,274.00, GBP 1,001.11 & EUR 1,134.37 per ounce
04 Oct: USD 1,309.15, GBP 1,026.90 & EUR 1,172.21 per ounce
03 Oct: USD 1,318.65, GBP 1,023.40 & EUR 1,173.99 per ounce
Silver Prices (LBMA)
11 Oct: USD 17.48, GBP 14.26 & EUR 15.78 per ounce
10 Oct: USD 17.78, GBP 14.31 & EUR 15.92 per ounce
07 Oct: USD 17.33, GBP 14.01 & EUR 15.55 per ounce
06 Oct: USD 17.76, GBP 13.98 & EUR 15.88 per ounce
05 Oct: USD 17.80, GBP 13.99 & EUR 15.86 per ounce
04 Oct: USD 18.74, GBP 14.68 & EUR 16.78 per ounce
03 Oct: USD 19.18, GBP 14.89 & EUR 17.07 per ounce
Recent Market Updates
– Gold Trading COT Report “Means Lower – Then Much Higher – Prices Coming”
– Currency Shock Sees Sterling Gold Surges 5% In One Minute “Flash Crash”
– Top Gold Forecaster: “As Quickly As Gold Fell” May “Rally Back” on Global Risks
– Gold Buying ‘Opportunity’ After Surprise 3.4% Drop
– Deutsche Bank “Is Probably Insolvent”
– GBP Gold Rises 1.3% as Sterling Slumps On ‘Hard Brexit’ Concerns, Up 36% YTD
– Why Krugman, Roubini, Rogoff And Buffett Hate Gold
– ECB Refused “To Answer Questions” – Deutsche Bank “Systemic Threat” Is “Not ECB Fault”
– Euro “Might Start To Unravel” If Collapse Of Deutsche Bank
– Do You Really Own Your Gold?
– “Gold Will Likely Soar To A Record Within Five Years”
– Savings Guarantee? U.N. Warns Next Financial Crisis Imminent
– Gold Up 1.5%, Silver Surges 3% – Yellen Stays Ultra Loose At 0.25%
Mark O’Byrne
Executive Director
end
This is what we have been waiting for: the emails will be forthcoming!
(courtesy National Post/Barbara Shecter/GATA)
Gold fix banks will have to reveal correspondence for antitrust lawsuit
Scotia Will Have to Reveal Internal Correspondence in Gold Fixing Case, Lawyer for Plaintiffs Says
By Barbara Shecter
National Post, Toronto
Tuesday, October 11, 2016
http://business.financialpost.com/news/fp-street/scotia-will-have-to-rev…
Large global banks targeted in a lawsuit alleging price fixing in the gold market, including Canada’s Bank of Nova Scotia, will have to turn over internal emails and other correspondence spanning several years as the case moves ahead, says Daniel Brockett, the New York lawyer who is spearheading the U.S. lawsuit.
“They have to produce all the relevant emails and chat-room instant messages, however they communicated with each other,” Brockett said in an interview after Valerie Caproni, a judge in the U.S. District Court for the Southern District of New York, ruled this past week that a portion of the case can move forward.
Caproni reduced the class period to six years ending in 2012 and dismissed a claim of unjust enrichment, but Brockett said the “core” claims were maintained in the ruling that rejected the banks’ motion to have the case dismissed.
“The ruling is a major victory for the plaintiffs because it upholds the core anti-trust claim against the five fixing banks and the statutory commodity manipulation claim against the five fixing banks,” said Brockett, a senior litigation partner at Quinn Emanuel Urquhart & Sullivan LLP.
Investors behind the lawsuit allege Scotia, Barclays PLC, HSBC Holdings PLC, Societe Generale, and Deutsche Bank PLC conspired to manipulate the price of gold through twice-daily meetings where the small group of banks convened to set the spot price. None of the allegations have been proven.
The plaintiffs will now seek documents from the banks during a discovery period, which Brockett expects to last between 18 months and two years.
end
Interesting: we have crash crashes galore and central banks investigates all except a crash in gold. I wonder why
(courtesy Chris Powell/GATA)
No central bank investigates any ‘flash crash’ in gold
Submitted by cpowell on Sat, 2016-10-08 15:07. Section: Daily Dispatches
Maybe because central banks know very well where gold ‘flash crashes’ come from.
* * *
Carney Calls for Inquiry into Sterling ‘Flash Crash’
By Szu Ping Chan and Tim Wallace
The Telegraph, London
Friday, October 7, 2016
The Bank of England has launched an investigation into the “flash crash” in sterling that saw the pound plunge against the dollar and euro.
Mark Carney, the bank’s governor, has asked Guy Debelle, chairman of the markets committee at the Bank for International Settlements, to examine the sudden drop in the value of the pound in thin Asian trading on Friday morning.
The fall in sterling, which saw it drop by as much as 6.1 percent against the dollar and 3.4 percent against the euro, could be discussed at the next meeting of the Financial Policy Committee, which is in charge of maintaining UK financial stability, on Nov 23. …
… For the remainder of the report:
http://www.telegraph.co.uk/business/2016/10/07/carney-calls-for-inquiry-…
END
Last week’s dry by shooting of gold was caused by a huge paper avalanche orchestrated by central banks and the BIS. Their gold reserves are never audited because they have been compromised by leasing and hypothecation:
(courtesy Egon Von Greyerz/Kingworldnews)
Western gold reserves are never audited because they are compromised, von Greyerz says
Submitted by cpowell on Mon, 2016-10-10 02:12. Section: Daily Dispatches
10:13p ET Sunday, October 9, 2016
Dear Friend of GATA and Gold:
Last week’s smashing of gold was the desperate undertaking of Western central banks and the Bank for International Settlements working in the paper market, Swiss gold fund manager Egon von Greyerz tells King World News today. He adds that the price-suppressing central banks have to use the paper market because they have compromised their gold reserves through leasing. That leasing, von Greyerz says, is why Western gold reserves are never honestly audited. Von Greyerz’s analysis is posted at KWN here:
http://kingworldnews.com/alert-china-now-possesses-up-to-a-shocking-1200…
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org
END
UBS’s Axel Eeber warns of the danger of massive central bank intervention
he is correct.
(courtesy Axel Weber/UBS)
UBS’ Weber warns on danger of ‘massive interventions’ by central banks
Submitted by cpowell on Mon, 2016-10-10 16:26. Section: Daily Dispatches
There are no markets anymore, just interventions. …
The problem with central banking has been mainly the old problem of power — it corrupts.
Central bankers are supposed to be more capable of restraint than ordinary politicians, and maybe some are, but they are not always or even often capable of the necessary restraint. One market intervention encourages another and another and increases the political pressure to keep intervening to benefit special interests rather than the general interest — to benefit especially the financial interests, the banking and investment banking industries. These interventions, subsidies to special interests, increasingly are needed to prevent the previous imbalances from imploding.
And so we have come to an era of daily market interventions by central banks — so much so that the main purpose of central banking now is to prevent ordinary markets from happening at all.
— High School Graduate, GATA’s Washington conference, April 18, 2008.
http://www.gata.org/node/6242
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UBS’ Weber Warns on Danger of ‘Massive Interventions’ by Central Banks
By Matt Clinch and Geoff Cutmore
CNBC, New York
Monday, October 10, 2016
Axel Weber, UBS chairman and a former policymaker at the European Central Bank (ECB), has warned today’s incumbents that monetary intervention is causing international spillovers and major disturbances in global markets.
Central banks “have taken on massive interventions in the market. You could almost say that central banks are now the central counterparties in many markets. They are the ultimate buyer,” Weber told CNBC on the sidelines of the annual meetings of the International Monetary Fund and the World Bank in Washington.
Weber, who was president of the German Bundesbank between 2004 and 2011 and was also a member of the ECB’s Governing Council, referenced the housing bubble leading up to the 2008 financial crash and said central banks had strayed from their core mandate. …
“I don’t think a single trader can tell you what the appropriate price of an asset he buys is, if you take out all this central bank intervention,” Weber warned, adding that it often meant investors were making bad choices with where to put their money.
… For the complete report:
http://www.cnbc.com/2016/10/10/ubs-weber-warns-on-danger-of-massive-inte…
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END
India’s gold demand gets rolling again:
(courtesy Dave Kranzler/Ird)
India’s Gold Demand Gets Rolling – An “Unofficial” Bottom?
Our sales have increased by 30-40 per cent over the last week following a decline in gold prices. Given that the current price level will continue, we see this season as one of the best festive seasons in terms of jewellery sales in recent years,” said Rajesh Mehta, managing director, Rajesh Exports, one of the largest jewellery retailers in India. – LINK, as sourced from John Brimelow’s “Gold Jottings”
I say “unofficial” bottom to this 9-week manipulated take-down in the price of gold because we don’t know to what extent the western Central Banks will throw paper at the NY and London gold “markets.” But based on the latest Commitment of Traders report, the bullion banks are covering their shorts fairly aggressively while the moronic hedge funds dump their longs and try to chase the market lower by piling in to the short side. This has always been a recipe for at least short term move higher in the metals.
But the cartel’s takedown of the paper gold price has created a nice ex-import duty premium bid in the Indian gold market just ahead of India’s festival season: “Dropping of the rates depend on the international market. If it continues, we are sure to have a bumper Diwali this year,” said N Anantha Padmanabhan, regional chairman, All India Gems and Jewellery Federation – LINK.
Please note that a sudden surge in legal kilo bar imports will not depress dore bar importation or smuggling, the latter of which is now estimated to fill about 30% of India’s annual gold demand now.
Recall that China was closed last week, while India was transitioning into it’s biggest buying season. The banks used this opportunity to launch their most aggressive paper attack on gold since 2011 in London and on the Comex. They also used the big drop last week to print profits at the expense of hedge funds and whiny retail bucket shop traders. But, the western gold cartel take-down of gold using paper has helped ignite India demand: “In the past fortnight, gold has fallen in the international market by 5.8 per cent; the price in India is down 4.9 per cent. With the ‘pitrupaksha’ period over, when buying of gold is considered inauspicious, festive demand has started – LINK.
With the bullion banks covering their illegal paper shorts, gold is the most oversold that it’s been in 3 years. I suggested several weeks ago that we might get a “200 dma” pullback. Here it is:
Again, I’m calling an unofficial bottom because, in a system that allows a criminal to run for President, there’s not telling the degree to which Wall Street will resort to illegal market manipulation in order to keep a lid on the price of gold. But I am certain that the Indians, Chinese and Russians will – as Alan Greenspan would say – “measurably” increase their “consumption” of physical gold.
I will be reviewing and updating my favorite junior exploration picks in this week’s Mining Stock Journal. I am featuring some graphs which reinforce my view that this sell-off is over, with the market “percolating” for another big move higher – possibly ahead of the next Fed policy move, which I believe will entail more QE. I am also going to present some ideas to take advantage of the oversold condition of the highest quality large cap mining stocks. You can subscribe to the Mining Stock Journal with this link: MSJ Subscription. This includes email delivery of all back-issues. The last issue featured a silver explorer trading below 50 cents that could ultimately be a $10 stock.
October 11, 2016
end
Your early TUESDAY morning currency, Asian stock market results, important USA/Asian currency crosses, gold/silver pricing overnight along with the price of oil Major stories overnight
:
1 Chinese yuan vs USA dollar/yuan UP to 6.67197( DEVALUATION SOUTHBOUND /CHINA UNHAPPY TODAY CONCERNING USA DOLLAR RISE/MORE $ USA DOLLARS LEAVE CHINA/OFFSHORE YUAN WIDENS TO 6.67282 / Shanghai bourse CLOSED UP 17.10 POINTS OR 0.56% / HANG SANG CLOSED DOWN 302.30 POINTS OR 1.27%
2 Nikkei closed UP 164.67 OR 0.98% /USA: YEN RISES TO 103.78
3. Europe stocks opened ALL IN THE GREEN ( /USA dollar index UP to 97.44/Euro DOWN to 1.1081
3b Japan 10 year bond yield: RISES TO -.045%/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 103.78/ THIS IS TROUBLESOME AS BANK OF JAPAN IS RUNNING OUT OF BONDS TO BUY.
3c Nikkei now JUST BELOW 17,000
3d USA/Yen rate now well below the important 120 barrier this morning
3e WTI:: 50.84 and Brent:52.70
3f Gold UP /Yen DOWN
3g Japan 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./“HELICOPTER MONEY” OFF THE TABLE FOR NOW /REVERSE OPERATION TWIST ON THE BONDS: PURCHASE OF LONG BONDS AND SELLING THE SHORT END
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 RISES QUITE A BIT to +045%
3j Greek 10 year bond yield FALLS to : 8.26%
3k Gold at $1256.30/silver $17.59(8:45 am est) SILVER FINAL RESISTANCE AT $18.50 WILL BE DEFENDED
3l USA vs Russian rouble; (Russian rouble DOWN 52/100 in roubles/dollar) 62.43-
3m oil into the 50 dollar handle for WTI and 52 handle for Brent/
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/GOT a DEVALUATION DOWNWARD from POBC.
JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 103.78 DESTROYING WHATEVER IS LEFT OF OUR YEN CARRY TRADERS
30 SNB (Swiss National Bank) still intervening again in the markets driving down the SF. It is not working: USA/SF this morning .9858 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0931 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 VOTES AFFIRMATIVE BREXIT
3r the 10 Year German bund now NEGATIVE territory with the 10 year RISES to +.049%
/German 9+ year rate BASICALLY negative%!!!
3s The Greece ELA NOW at 71.4 billion euros,AND NOW THE ECB WILL ACCEPT GREEK BONDS (WHAT A DISASTER)
The bank withdrawals were causing massive hardship to the Greek bank. the Greek referendum voted overwhelming “NO”. Next step for Greece will be the recapitalization of the banks and that will be difficult.
4. USA 10 year treasury bond at 1.7691% early this morning. Thirty year rate at 2.501% /POLICY ERROR)
5. Details Ransquawk, Bloomberg, Deutsche bank/Jim Reid.
(courtesy Jim Reid/Bloomberg/Deutsche bank/zero hedge)
HELICOPTER MONEY STILL ON THE TABLE FOR THE FUTURE/JAPANESE STIMULUS PLAN DISAPPOINTS
Global Stocks Decline On Samsung Woes; Rising Dollar Pressures Oil
Global markets and US equity futures fell on Samsung Galaxy Note 7 contagion concern, while the dollar rose to its strongest level in 11 weeks and U.S. bonds declined as investors boosted wagers that the Federal Reserve will raise interest rates this year.
The dollar continued its recent rise against all of its 16 major counterparts after Chicago Fed President Evans said policy “may well be changing soon,” even as he argued for keeping interest rates low until core inflation moves higher. Treasury two-year note yields jumped to the highest in more than four months. The rand tumbled the most since June after Finance Minister Pravin Gordhan was summoned to appear in court. Samsung Electronics Co. led Asian stocks lower after the company told retail partners to stop sales and exchanges of its Galaxy Note 7 smartphone. U.S. crude oil retreated from its highest price in 15 months.
The uSD has been supported by increasing speculation that the U.S. economy will be sufficiently strong to withstand higher borrowing costs even after last week’s jobs report came in below economists’ predictions, and even as the NY Fed expects Q4 GDP to rise a paltry 1.2%. Markets await more clues on Fed thinking on Wednesday with the release of the minutes of the Federal Open Market Committee’s Sept. 20-21 meeting. A government report Thursday will show retail sales rebounded in September, according to a Bloomberg survey of economists. Investors will also get a chance to assess the health of U.S. companies, with Alcoa Inc. unofficially kicking off the U.S. reporting season on Tuesday.
“Futures are increasingly pricing in a December hike and that itself is driving the dollar higher,” even after data on Friday showed that U.S. non-farm payrolls climbed less than economists forecast, said Mitul Kotecha, head of Asia currency and rates strategy at Barclays Plc in Singapore. “The general backdrop of a firmer dollar is weighing on Asian currencies.”
Sue Trinh, head of Asia foreign-exchange strategy for RBC in Hong Kong confirmed that dollar gains are “entirely linked to the fact that the market has been upwardly rerating expectations of a December rate hike,” said . “Three weeks ago, the implied probability of a December hike discounted by fed funds futures was under 50 percent, today it is close to 70 percent.”
Asian stocks were shaken by the troubles at Samsung, which after announcing it would cut sales of its flammable Note 7 smartphone, subsequently confirmed this morning it would cease production altogether. The MSCI Asia Pacific index slides 0.6% as 7 out of 10 sectors fall; infotechm financials underperform while energy, telcos outperformed.
The Stoxx Europe 600 Index slipped less than 0.1 percent in London. Gains in luxury-goods companies tempered declines; LVMH Moet Hennessy Louis Vuitton SE rose 4.9 percent after reporting sales that topped analysts’ estimates. Christian Dior SE an