Gold $1260.80 UP $6.40
Silver 17.59 UP 16 cents
In the access market 5:15 pm
Gold: 1262.50
Silver: 17.63
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 18 (10:15 pm est last night): $ 1265.29
NY ACCESS PRICE: $1259.60 (AT THE EXACT SAME TIME)
Shanghai afternoon fix: 2: 15 am est (second fix/early morning):$ 1264.67
NY ACCESS PRICE: 1259.90 (AT THE EXACT SAME TIME)
HUGE SPREAD TODAY!! 5 dollars
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
London Fix: OCT 18: 5:30 am est: $1261.65 (NY: same time: $1261.60: 5:30AM)
London Second fix OCT 14: 10 am est: $1258.20 (NY same time: $1258.20 , 10 AM)
Shanghai premium in silver over NY: 87 cents.
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:
5 NOTICES FILED FOR 500 OZ
For silver:
for the Oct contract month: 0 notices for nil oz.
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Let us have a look at the data for today
.
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
In silver, the total open interest FELL by 2078 contracts DOWN to 186,912. The open interest FELL as the silver price was UP 4 cents in yesterday’s trading .In ounces, the OI is still represented by just less THAN 1 BILLION oz i.e. .934 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 1310 contracts with the RISE in price of gold( $1.30 YESTERDAY) . The total gold OI stands at 492,937 contracts. The bankers continue with their quest of fleecing our comex gold longs
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
With respect to our two criminal funds, the GLD and the SLV:
GLD
TODAY WE HAD ANOTHER HUGE CHANGES AT THE GLD: A DEPOSIT OF 1.78 TONNES
Total gold inventory rests tonight at: 967.21 tonnes of gold
SLV
we had NO CHANGES at the SLV/
THE SLV Inventory rests at: 362.285 million oz
.
First, here is an outline of what will be discussed tonight:
1. Today, we had the open interest in silver FELL by 2,078 contracts DOWN to 186,912 as the price of silver ROSE by 4 cents with yesterday’s trading.The gold open interest ROSE by 1310 contracts UP to 492,937 as the price of gold ROSE $1.30 IN YESTERDAY’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
3. ASIAN AFFAIRS
i)Late MONDAY night/TUESDAY morning: Shanghai closed UP 42.71 POINTS OR 1.50%/ /Hang Sang closed UP 356.85 POINTS OR 1.56%. The Nikkei closed UP 63.49 POINTS OR 0.38% Australia’s all ordinaires CLOSED UP 0.41% /Chinese yuan (ONSHORE) closed UP at 6.7374/Oil ROSE to 50.32 dollars per barrel for WTI and 51.65 for Brent. Stocks in Europe: ALL IN THE GREEN Offshore yuan trades 6.7427 yuan to the dollar vs 6.7374 for onshore yuan.THE SPREAD BETWEEN ONSHORE AND OFFSHORE NARROWS QUITE A BIT AS MORE USA DOLLARS ATTEMPT TO LEAVE CHINA’S SHORES
REPORT ON JAPAN SOUTH KOREA NORTH KOREA AND CHINA
3a)THAILAND/SOUTH KOREA
none today
b) REPORT ON JAPAN
none today
c) REPORT ON CHINA
I)THE PHILIPPINES AND CHINA
The Philippines are moving closer and closer to China and further from USA interests. This is not good for the USA
(courtesy Tom Luongo/PlanetFreeWill.com)
4 EUROPEAN AFFAIRS
i)ENGLAND
A BREXIT needs a vote from both houses. This causes the pound to rise
( zero hedge)
ii)ENGLAND VS EU ON A HARD BREXIT
A terrific commentary from Mish Shedlock as he discusses who would win if these is a hard BREXIT:
In his opinion and I believe he is correct, the biggest loser will be the EU itself
( Mish Shedlock)
5. RUSSIAN AND MIDDLE EASTERN AFFAIRS
RUSSIA/ENGLAND
Relations between Russia and the west continue to disintegrate as Lavrov accuses the UK government of pressuring RBS to block RT bank accounts:
( zero hedge)
CHINA AND SAUDI ARABIA
A huge story: China dumps 34 billion USA dollars worth of bonds while Saudi Arabia sells 94 billion. Custodial holdings of USA paper for both China and Saudi Arabia are at 2012 lows.
The question is who is buying the stuff..answer private individuals. They are probably unaware of Saudi and Chinese dumping. What happens if the buyers go on strike? Answer: QE4
( zero hedge)
6.GLOBAL ISSUES
Nigeria spins out of control as inflation targets 18%and its currency the Naira falls to 460 to one USA dollar
( Steve Hanke)
7.OIL ISSUES
i)It looks like oil will reach its peak demand in 15 years and not have the steady growth predicted my many:
( Nick Cunningham/Oil Price.com)
ii)big inventory draw causes WTI to surge above 51.00 dollars
(courtesy zero hedge)
8.EMERGING MARKETS
9.PHYSICAL STORIES
i)We now have the amount of settlement that Deutsche bank has to pay: 38 million dollars. The amount is low because DB will provide the ample evidence of collusion against Scotia and HSBC, and Soc Generale. What is also important is the key findings by the judge
( zero hedge)
ii)Craig Hemke reports on the above story:
( Craig Hemke/TFMetals
iii)Insiders know that the EU and the Euro is doomed
( James Turk/Kingworldnews)
iv)Singapore wants to be another London, in the gold business
( Reuters)
v)China is now trying to bring the Shanghai gold fixing to the rest of Asia including Singapore:
( Reuters)
vi)Ross Norman’s reply to Chris Powell:
( Chris Powell/Ross Norman/Pixley)
vii)Chris Powell responds to Ross Norman of Pixley:
( Chris Powell/GATA)
10.USA STORIES WHICH MAY INFLUENCE THE PRICE OF GOLD/SILVER
i)Consumer prices rose from 1.1% year/year to 1.5% year over year. However core CPI remains well above the Fed’s mandated 2.0% guided level at 2.2% and it has been above 2% for 11 straight months
( zero hedge)
ii)Bellwether for global growth IBM sinks again after recording its 18th straight revenue drop. It also missed on margins. The earnings per share beat on an income tax rate fudge:
( zero hedge)
iii)The crooks (Goldman Sachs) did OK due to their proprietary trading dept.
( zero hedge)
Let us head over to the comex:
The total gold comex open interest ROSE BY 1310 CONTRACTS to an OI level of 492,937 as the price of gold ROSE $1.30 with YESTERDAY’S trading.
We are in the delivery month is October and here the OI LOST 534 contracts DOWN to 127. We had 530 notices filed yesterday so we lost 4 contracts or 400 additional oz will not stand.
The next delivery month is November and here the OI ROSE by 1 contract(s) UP to 2987 contracts. This level is extremely elevated as generally November is a very poor delivery month.To give you an idea of size, on Oct 18 2015, we had an OI of only 248 contracts.The next contract month and the biggest of the year is December and here this month showed an increase of 1,056 contracts up to 367,818.
Today we had 5 notices filed for 500 oz of gold.
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
And now for the wild silver comex results. Total silver OI fell BY 2078 contracts from 188,990 down to 186,912 as the price of silver ROSE to the tune of 4 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 3 contracts up to 150. We had 1 notice filed yesterday so we gained 4 contracts or 20,000 additional oz will stand for delivery.The November contract month saw its OI gain 1 contract up to 330. The next major delivery month is December and here it FELL BY 1492 contracts DOWN to 150,145.
VOLUMES:
Today the estimated volume was 153,060 contracts which is fair.
Yesterday, the confirmed volume was 124,529 which is also poor.
today we had 1 notice filed for 5,000 oz of silver:
INITIAL standings for OCTOBER
Oct 18.
Gold
Ounces
Withdrawals from Dealers Inventory in oz
NIL
Withdrawals from Customer Inventory in oz nil
225.05 oz
Manfra
Deposits to the Dealer Inventory in oz
nil oz
Deposits to the Customer Inventory, in oz
nil oz
No of oz served (contracts) today
5 notices
500 oz
No of oz to be served (notices)
122 contracts
12.200
oz
Total monthly oz gold served (contracts) so far this month
8524 contracts
852,400 oz
26.51 tonnes
Total accumulative withdrawals of gold from the Dealers inventory this month
oz
Total accumulative withdrawal of gold from the Customer inventory this month
175,434.0 oz
Today we had 1 kilobar transactions and a tiny amount leaves the comex
Today we had 0 deposit into the dealer:
total dealer deposits: nil oz
We had zero dealer withdrawals:
total dealer withdrawals: nil oz
.
We had 0 customer deposits;
total customer deposits; nil oz
We had 1 customer withdrawal(s)
i) Out of Manfra; 225.05 oz
(5 kilobars)
total customer withdrawal: 225.05 oz
We had 1 adjustment(s)
i) Out of Malca: 707.322 oz was adjusted out of the customer and this landed into the dealer account of Malca.
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Total dealer inventor 2,305.068.210 or 71.697 tonnes
Total gold inventory (dealer and customer) =10,605,500.75. or 329.87 tonnes
Several months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 329.87 tonnes for a gain of 27 tonnes over that period. Since August 8 we have lost 24 tonnes leaving the comex. However I am including kilobar transactions and they are very suspect at best.
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 5 contractS of which 0 notices were stopped (received) by jPMorgan dealer and 0 notice(s) was (were) stopped received) by jPMorgan customer account.
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
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 (8524) x 100 oz or 852,400 oz, to which we add the difference between the open interest for the front month of OCT (XXX contracts) minus the number of notices served upon today (5) x 100 oz per contract equals 864,600 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 (8524) x 100 oz or ounces + {OI for the front month (127) minus the number of notices served upon today (5) x 100 oz which equals 864,600 oz standing in this non active delivery month of Oct (26.892 tonnes).
we LOST 400 additional oz standing in this active delivery month of October and I believe that this is a record standing for October. To give you an idea of size from last yr, we had only a little over 2 tonnes standing at the conclusion of Oct 2015!
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
IN THE LAST TWO MONTHS , 24 NET TONNES HAS LEFT THE COMEX.
end
And now for silver
OCT INITIAL standings
Oct 18. 2016
Silver
Ounces
Withdrawals from Dealers Inventory
NIL
Withdrawals from Customer Inventory
177,893.700 oz
BRINKS
Deposits to the Dealer Inventory
nil OZ
Deposits to the Customer Inventory
516,081.0000 oz
???
JPM
No of oz served today (contracts)
0 CONTRACT(S)
(NIL OZ)
No of oz to be served (notices)
150 contracts
(750,000 oz)
Total monthly oz silver served (contracts)
356 contracts (1,780,000 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
4.956,024.2 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 1 customer withdrawals:
i) Out of BRINKS: 177,893.700
Total customer withdrawals: 177,893.700 oz
We had 1 customer deposits:
i) Into JPMorgan: 516,081.000 oz ??? EXACT WEIGHT???
total customer deposits: 516,081.000 oz
we had 1 adjustment(s)
I) A 27.000 OZ was removed from Delaware as an accounting error.
Volumes:
Today the estimated volume was 64,675 which is EXCELLENT.
Yesterday the confirmed volume was 36,578 which is GOOD
The total number of notices filed today for the Oct contract month is represented by 0 contract(s )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 356 x 5,000 oz = 1,780,000 oz to which we add the difference between the open interest for the front month of OCT (150) 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: 356(notices served so far)x 5000 oz +(150) OI for front month of SEPT ) -number of notices served upon today (0)x 5000 oz equals 2,530,000 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 20,000 additional silver ounces THAT WILL STAND.
Total dealer silver: 29.286 million (close to record low inventory
Total number of dealer and customer silver: 173.725 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 18/A DEPOSIT OF 1.78 TONNES OF GOLD INTO THE GLD/INVENTORY RESTS AT967.21 TONNES
OCT 17/ A DEPOSIT OF 3.86 TONNES OF GOLD INTO THE GLD/INVENTORY RESTS AT 965.43 TONNES/IN 10 DAYS 16.29 TONNES DEPOSITED
Oct 14./NO CHANGE IN INVENTORY AT THE GLD
OCT 13/a deposit of 2.67 tonnes of gold into the GLD/inventory rests at 961.57 tonnes
Oct 12/No changes in inventory/inventory rests at 958.90 tonnes
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
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Oct 18/ Inventory rests tonight at 967.21 tonnes
*IN LAST 11 DAYS: 18.07 TONNES ADDED INTO THE GLD
end
Now the SLV Inventory
OCT 18/NO CHANGES AT THE SLV INVENTORY RESTS AT 362.285 MILLION OZ
OCT 17/NO CHANGES AT THE SLV/INVENTOR RESTS AT 362.285 MILLION OZ/
oCT 14: A HUGE ADDITION (DEPOSIT) OF 1.138 MILLION OZ INTO THE SLV/INVENTORY RESTS AT 362.285 MILLION OZ
OCT 13/ NO CHANGES in inventory at the SLV/Inventory rests at 361.147 million oz
Oct 12:NO CHANGES in inventory at the SLV/Inventory rests at 361.147 million oz
Oct 11/ a withdrawal of 1.762 million oz of inventory from the SLV/Inventory rests at 361.147 million oz/
.
Oct 18.2016: Inventory 362.285 million oz
end
NPV for Sprott and Central Fund of Canada
Central fund data not available today.
1. Central Fund of Canada: traded at Negative 3.7 percent to NAV usa funds and Negative 3.9% to NAV for Cdn funds!!!!
Percentage of fund in gold 60.8%
Percentage of fund in silver:38.1%
cash .+1.1%( Oct 17/2016).
2. Sprott silver fund (PSLV): Premium RISES to +1.35%!!!! NAV (OCT 18/2016)
3. Sprott gold fund (PHYS): premium to NAV RISES TO 0.91% to NAV ( OCT 18/2016)
Note: Sprott silver trust back into POSITIVE territory at 1.35% /Sprott physical gold trust is back into positive territory at 0.91%/Central fund of Canada’s is still in jail.
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
Euro “Will Collapse” As Is “House of Cards” Warns Architect of Euro
By Mark O’ByrneOctober 18, 20160 Comments
The Euro “will collapse” as it is a”house of cards” warned Otmar Issing, the founder and creator of the euro in an extraordinary interview on Monday.
Paper currency – Euro paper notes and Greek drachma note
In the explosive interview with the journal Central Banking, Professor Issing, said “one day, the house of cards will collapse” as the European Central Bank (ECB) is becoming dangerously over-extended and the whole euro project is unworkable in its current form.
The founding architect of the monetary union has warned that Brussels’ dream of a European superstate will finally be buried amongst the rubble of the crumbling single currency he designed.
“Realistically, it will be a case of muddling through, struggling from one crisis to the next. It is difficult to forecast how long this will continue for, but it cannot go on endlessly,” he told the journal Central Banking in a remarkable deconstruction of the EU project.
The respected economist launched a withering attack on so called eurocrats and German Prime Minister Angela Merkel, accusing them of betraying the principles of the euro and demonstrating scandalous incompetence over its management.
And he savaged the whole idea of a federal “United States of Europe”, saying the attempt to push through federalisation in a stealth manner “by the back door” has turned the very foundations that the currency was built on into a complete mess of patchwork legislation, into which it is sinking fast.
As is frequently the case when there is substantive damaging criticism about the EU and ECB from respected and authoritative sources, the interview was treated in quite an Orwellian manner. It completely ignored and not reported by most state run media in Ireland, the UK and EU. Most state run media is overwhelmingly pro-EU and continues to ignore the serious problems and growing risks posed by the single currency and the undemocratic EU to the citizens of Europe. Nor was it reported in most corporate media in the EU which also tends to ignore all reasonable criticisms of the EU, ECB and especially the euro.
The explosive interview has been covered extensively in the more “right wing” euro “skeptic” media in the UK in papers such as The Telegraph and The Mail which means that most people in the EU will not even be aware of Otmar Issing’s very real and reasonable concerns and the growing risks posed to the currency they use in their lives every day and their very way of life.
Gold in Euros – 5 Years
The coming collapse of the euro is seems inevitable. The question is when rather than if. It gives us no pleasure to say so as the collapse of the euro will be financially painful for family, friends and people and companies in all EU nations.
The euro has even greater challenges than sterling which has collapsed more than 43% against gold this year. It is only a matter of time before market participants and foreign exchange traders’ focus, moves from sterling to the ‘not so single’ euro. Then the euro will see a similar depreciation and devaluation in the coming months.
Gold will again fulfill its primary role which is as a hedge against currency devaluation. As it has done in the UK and many other nations in recent months and indeed has done throughout history.
Gold and Silver Bullion – News and Commentary
LBMA Singapore: Gold Seen Rebounding Next Year Amid Low Real Interest Rates (Bloomberg)
INTERVIEW-China gold demand to stay firm at 900-1,000 T in 2017 -WGC (CNBC)
SBMA, LBMA and IBA Launch Feasibility Study on “Singapore LBMA Pre-AM Gold Price” (MarketWatch)
Deutsche Bank to Pay $38 Million in U.S. Silver Price-Fixing Case (Reuters)
Gold steady on weaker dollar, firmer stocks cap gains (Reuters)
Money Managers Cut Gold Bets as ETF Holdings Soar to 3-Year High (Bloomberg)
SWOT Analysis: Despite Worst Week for Gold Futures, ETF Inflows Continue (GoldSeek)
Good News For Gold Bugs: The Bottom Is Getting Closer (DollarCollapse)
Inflation could double as oil price pushes up petrol costs (Telegraph)
Euro ‘house of cards’ to collapse, warns ECB prophet (Telegraph)
Gold Prices (LBMA AM)
18 Oct: USD 1,261.65, GBP 1,031.15 & EUR 1,145.33 per ounce
17 Oct: USD 1,252.70, GBP 1,029.59 & EUR 1,139.58 per ounce
14 Oct: USD 1,256.15, GBP 1,028.79 & EUR 1,140.08 per ounce
13 Oct: USD 1,258.00, GBP 1,029.93 & EUR 1,141.76 per ounce
12 Oct: USD 1,255.70, GBP 1,024.53 & EUR 1,139.05 per ounce
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
Silver Prices (LBMA)
18 Oct: USD 17.65, GBP 14.37 & EUR 16.03 per ounce
17 Oct: USD 17.40, GBP 14.30 & EUR 15.83 per ounce
14 Oct: USD 17.47, GBP 14.28 & EUR 15.86 per ounce
13 Oct: USD 17.59, GBP 14.40 & EUR 15.95 per ounce
12 Oct: USD 17.44, GBP 14.23 & EUR 15.83 per ounce
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
Recent Market Updates
– Property Bubble In Ireland Developing Again
– “Gold Is A Great Hedge Against Politicians” – Goldman
– Sell Gold Now – Time To Liquidate Gold ETF, Pooled and Digital Gold
– Gold In GBP Up 43% YTD – “Massive Twin Deficits” To Impact UK Assets
– Ron Paul Says “Gold Going Up” Whether Trump Or Clinton Elected
– 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”
Mark O’Byrne
Executive Director
Published in Daily Market Update
END
We now have the amount of settlement that Deutsche bank has to pay: 38 million dollars. The amount is low because DB will provide the ample evidence of collusion against Scotia and HSBC, and Soc Generale. What is also important is the key findings by the judge
(courtesy zero hedge)
Deutsche Bank Pays $38 Million To Settle Silver Manipulation Lawsuit
2016 is shaping up as the year when countless conspiracy theories will be confirmed to be non-conspiracy fact: from central bank rigging of capital markets, to political rigging of elections, to media rigging of public sentiment, and now, commercial bank rigging of silver.
In short, tinfoil hat-wearing nutjobs living in their parents basement have been right all along.
Two weeks ago we reported that “In A Major Victory For Gold And Silver Traders, Manipulation Lawsuit Against Gold-Fixing Banks Ordered To Proceed,” however one bank was exempt: Deutsche Bank. The reason why was known since April, when we first reported that Deutsche Bank had agreed to settle the class action lawsuit filed in July 2014 accusing a consortium of banks of plotting to manipulate gold and silver. Among the charges that Deutsche Bank effectively refused to contest were the following:
employment of a manipulative device claims
bid-rigging, and unjust enrichment.
price fixing and unlawful restraint
price manipulation claims
aiding and abetting and principal-agent claims.
Briganti’s affidvait provides some more information on the settlement process:
The negotiations with Deutsche Bank over the material terms of the Settlement took place over several months starting in December 2015 and continuing until the Deutsche Bank Settlement Agreement was executed on September 6, 2016.
Following initial phone calls with Deutsche Bank’s counsel in December 2015, Lowey and Grant & Eisenhofer engaged in lengthy negotiations with Deutsche Bank’s counsel over the material terms of the settlement, including the amount of the settlement consideration, the scope of the cooperation to be provided by the Deutsche Bank Defendants, the scope of the releases, and the circumstances under which the parties would have the right to terminate the settlement.
During the course of the negotiations, Class Counsel presented what we perceived to be the strengths and weaknesses of the claims and defenses, as well as Deutsche Bank’s litigation exposure.
In February 2016, we reached an agreement with Deutsche Bank on the amount of the settlement, subject to the negotiation of other material terms of the deal. For example, given that this is the first settlement in the case, it was our view that the cooperation provisions of the deal were extremely important to our ability to maximize the overall recovery for the class against the Non-Settling Defendants. The negotiations as to the scope of the cooperation provisions continued for several months.
On April 13, 2016, counsel for Deutsche Bank and Class Counsel signed a Binding Settlement Term Sheet (“Term Sheet”). The Term Sheet set forth the terms on which the parties agreed, subject to the negotiation of a full Settlement Agreement, to settle Plaintiffs’ claims against Deutsche Bank. At the time the Term Sheet was executed, Class Counsel was well-informed about the legal risks, factual uncertainties, potential damages, and other aspects of the strengths and weaknesses of the claims and defenses asserted.
By letter dated April 13, 2016, the Parties reported to the Court via ECF that the Term Sheet had been executed, and advised the Court that the Term Sheet would be superseded by a formal settlement agreement. ECF No. 116.
The parties negotiated the Deutsche Bank Settlement Agreement over the course of the next several months. The negotiations over the terms of the Deutsche Bank Settlement Agreement included various material terms over which the parties had substantial disagreement, requiring significant give and take on both sides. To that end, drafts of the Deutsche Bank Settlement Agreement went back and forth between the parties, and numerous contested issues were raised, negotiated and resolved, including without limitation, continuing negotiations over the scope of Deutsche Bank’s cooperation (see ¶ 4(A)-(G)), the scope of the releases (see ¶ 12 (A)-(C)), and the circumstances under which the parties could terminate the Settlement (see ¶ 21).
Thus, the Deutsche Bank Settlement Agreement, which was executed (along with the Supplemental Agreement) on September 6, 2016, was the culmination of arm’s-length settlement negotiations that had extended over many months.
The Deutsche Bank Settlement was not the product of collusion. Before any financial numbers were discussed in the settlement negotiations and before any demand or counter-offer was ever made, we were well informed about the legal risks, factual uncertainties, potential damages, and other aspects of the strengths and weaknesses of the claims against Deutsche Bank.
The Deutsche Bank Settlement involves a structure and terms that are common in class action settlements in this District. The consideration that Deutsche Bank has agreed to pay is within the range of that which may be found to be fair, reasonable, and adequate at final approval.
There was just one thing missing: the settlement amount. This afternoon, that too was revealed when according to court filings, Deutsche Bank had agreed to pay $38 million to settle U.S. litigation over allegations it illegally conspired with other banks to fix silver prices at the expense of investors. The settlement, disclosed in papers filed in Manhattan federal court, concludes one of many recent lawsuits in which investors have accused banks of conspiring to rig the precious metal markets. However, until now there was never any formal closure. Today, that closure cost Deutsche Bank $38 million.
While the amount is tiny for the German bank, now that it is enshrined in case law, it will unleash dozens of similar class action lawsuits, each tweaked a little, and each demanding tens of millions from the gold and silver rigging banks. As Reuters adds, the settlement had been expected since April, though terms had yet to be disclosed. In court papers, lawyers for the investors say the deal will likely be an “ice breaker” that will serve as a catalyst for other banks to settle.
Vincent Briganti, a lawyer for the investors, said the deal provides “substantial monetary compensation plus cooperation from Deutsche Bank in the continued prosecution of this important case against the non-settling defendants.”
As a reminder, in the litigation profiled here most recently, investors claimed Deutsche Bank, HSBC Holdings Plc and Bank of Nova Scotia (ScotiaBank) rigged silver prices through a secret daily meeting called the Silver Fix, and accused UBS AG of exploiting that fix. The alleged conspiracy started by 1999, suppressed prices on roughly $30 billion of silver and silver financial instruments traded each year, and enabled the banks to pocket returns that could top 100 percent annualized, the investors said.
Earlier this month, U.S. District Judge Valerie Caproni ruled the investors had sufficiently, “albeit barely,” alleged that Deutsche Bank, HSBC and ScotiaBank violated U.S. antitrust law by conspiring to depress the Silver Fix from 2007 to 2013. At the same time, the judge dismissed UBS from the case, saying there was nothing showing it manipulated prices, even if it benefited from distortions.
The Judge added that the investors could amend their complaint, including against UBS, and a lawyer for the investors has said they planned to do so.
So who gets to benefit from the settlement?
We have reason to believe that there are at least hundreds of geographically dispersed persons and entities that fall within the Settlement Class definition. The Settlement Class includes traders of COMEX Silver Futures contracts, anyone who traded in physical silver based on the Silver Fix, and traders in various silver derivatives.
The other beneficiary, of course, is the class of investors, people and “conspiracy theorists” who claimed all along that gold and silver were subject to rigging in various forms throughout the years. Well, you were right. However, we wouldn’t hold much hope for getting any substantial monetary rewards. By the time the settlement is done, there will likely be a few hundred dollars per claimant.
The good news, however, is that this will only unleash many more such lawsuits, now that the seal has been broken.
As for the remaining two banks in the class action, HSBC and Bank of Nova Scotia, the next pretrial conference in that lawsuit which was greenlighted two weeks ago is scheduled for October 28, 2016. Those who wish to be present should appear at 3:00 p.m. in courtroom 443 of the Thurgood Marshall Courthouse, 40 Foley Square, New York, NY 10007.
The Vincent Briganti Declaration is below
SEE ZEROHEDGE
END
Craig Hemke reports on the above story:
(courtesy Craig Hemke/TFMetals
The Importance of The Deutsche Bank Silver Fix Lawsuit Settlement
Craig Hemke
|
Tuesday, October 18th
This post is intended to remind you that this case is not about the present and it’s not about the $38MM dollars. Instead, the true significance of this lawsuit will be on display over the coming months and years as innumerable new class action lawsuits are filed against The Bullion Banks for their collective role in rigging and manipulating the precious metals markets.
First, some links. Here’s the news item from yesterday released by Reuters and a comprehensive write-up from Zerohedge:
http://www.reuters.com/article/us-deutsche-bank-settlement-silver-idUSKBN12H2HB
http://www.zerohedge.com/news/2016-10-17/deutsche-bank-pays-38-million-settle-silver-manipulation-lawsuit
And here are two links from back in April to remind you of the case:
http://www.tfmetalsreport.com/blog/7563/deutschebank-settles-silver-lawsuit
http://thedailycoin.org/2016/04/21/craig-hemke-silver-gold-db-turns-states-evidence-the-flood-gates-are-now-open/
The typical internet reaction I’ve seen thus far is this:
A) This is only $38MM. Where’s my money? I’ve lost a lot of money due to the metals being manipulated but I won’t get any of this settlement and, because the dollar amount is so small, neither will anyone else.
B) This is just another slap on the wrist. A paltry $38MM is a drop in the bucket for Deutschebank and they’ll now skate along with the rest of The Banks.
C) All of the manipulation conspiracy whackos are dead wrong. This case was just a nuisance and Deutschebank only agreed to settle so that the whole thing would just go away. Big corporations do this all the time so move along now. There’s nothing to see here.
AND I’M HERE TO TELL YOU THAT ALL THREE OF THOSE OPINIONS ARE DEAD WRONG.
The impact and future effects of this case are significant and real. Yes, $38MM is not a lot of money and the settlement will only be disbursed to those few who had participated in the class action. But go back up this page and listen to the interview that I did with The Daily Coin. This is the first time that a settlement has been reached in a precious metals price rigging lawsuit. It’s also the first time that a Bank has agreed to turn state’s evidence against the other Banks that rig the process. The two items ensure that the case against both HSBS and Scotia is being built and that they will soon be forced to settle, too. Already, a NY judge has allowed the case to proceed into legal discovery (subpoenas, depositions, documents, etc) for the first time ever.
But the real story will be what comes next…A virtual avalanche of similar class action lawsuits, each alleging price manipulation and multi-million dollar plaintiff losses. Now that DB is “singing” and legal discovery is proceeding in this single case, the floodgates are truly open.
So think of this from the point of view of a Bullion Bank. Not only are you getting squeezed by tight margins and limited physical supply in London, you’re also deeply underwater on most of the Comex futures positions that you’ve shorted in New York. And now this…An almost endless stream of future lawsuits from investors around the world whom you’ve cheated and defrauded over the past 20 years! What do you think these Banks are going to do in response? Many to most of them will just simply exit the bullion banking business! Can you even comprehend the monumental change this would represent?
Of course this is not going to happen over the next few days or weeks. Instead, a process like this will take months to play out which is WHY we felt the need for this post and reminder. Do not get caught up in the headline of just this one settlement and do not allow some Cartel shill to persuade you that this whole thing is meaningless.
I can assure you that, in the future, when we look back on the rubble of what was “bullion banking”, the date of April 13, 2016 will live in infamy. That was the day that the settlement was first announced and it was the day that The Bullion Banks’ entire house of cards began to crumble under the weight of accumulated fraud, deceit and lies.
Hang in there, my friend. We are winning.
TF
www.tfmetalsreport.com/subscribe
end
Insiders know that the EU and the Euro is doomed
(courtesy James Turk/Kingworldnews)
Even insiders know that the EU is doomed, Turk tells KWN
Submitted by cpowell on Mon, 2016-10-17 18:33. Section: Daily Dispatches
2:35p ET Monday, October 17, 2016
Dear Friend of GATA and Gold:
Interviewed today by King World News, GoldMoney founder and GATA consultant James Turk says that even members of the political and financial establishment understand that the European Union project has been botched and is doomed. An excerpt from the interview is posted at KWN here:
http://kingworldnews.com/james-turk-the-coming-financial-storm-will-deva…
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org
END
Singapore wants to be another London, in the gold business
(courtesy Reuters)
Singapore makes another bid for Asia to help set gold price
Submitted by cpowell on Mon, 2016-10-17 12:39. Section: Daily Dispatches
By Manolo Serapio Jr.
Reuters
Monday, October 17, 2016
SINGAPORE — Singapore will study the possibility of bringing the gold benchmark pricing in London to users in Asia in a move that would also allow market participants in the world’s top consuming region to help set the price of bullion.
The importance of Asia, home to the world’s biggest buyers China and India, has been on the rise as the key source of demand for gold, but bullion traders in the region are often exposed to intraday price volatility and overnight foreign exchange risks with benchmark prices currently being set out of London.
The Singapore Bullion Market Association, London Bullion Market Association, and Intercontinental Exchange Benchmark Administration will launch a joint feasibility study on the development of “LBMA pre-AM gold price at 2 p.m. Singapore time”, Lim Hng Kiang, minister for trade and industry and deputy chairman of the Monetary Authority of Singapore, told an industry conference today.
The study “is an important first step toward establishing a U.S. dollar price-discovery mechanism for gold during Asian business hours,” Lim said. “When in place, it will facilitate the timely tracking of Asian demand and allow participants in Asia to settle their trades within the same business day.” …
… For the remainder of the report:
http://www.reuters.com/article/us-gold-asia-singapore-idUSKBN12H0YU
END
China is now trying to bring the Shanghai gold fixing to the rest of Asia including Singapore:
(courtesy Reuters)
China, Singapore boost gold pricing campaign in push for Asia
Submitted by cpowell on Mon, 2016-10-17 16:28. Section: Daily Dispatches
By Manolo Serapio Jr and Koustav Samanta
Reuters
Monday, October 17, 2016
SINGAPORE — China is marketing its yuan gold price to foreign exchanges and Singapore is looking at bringing London’s gold benchmark to users in Asia, in moves meant to boost the region’s exposure and influence in the global bullion market. …
Shanghai Gold Exchange, the world’s biggest physical bullion exchange, will collaborate with foreign exchanges and allow them to use its yuan-denominated gold price in developing derivatives products, Chairman Jiao Jinpu told an industry conference
The latest move is an aggressive step by China — the world’s top consumer, producer, and importer of gold — to market its pricing mechanism and aims for a bigger say in an industry long dominated by the London spot price.
“We would collaborate with various exchanges and authorise these external exchanges to start business outside China to use it as a basis for development of derivatives products,” Jiao told an industry conference through an interpreter.
Shanghai’s first deal will be signed with the Dubai Gold & Commodities Exchange next week, Jiao told reporters, adding that he expects more cooperation ahead. …
… For the remainder of the report:
http://www.reuters.com/article/gold-asia-idUSL4N1CN3DW
end
.
Ross Norman’s reply to Chris Powell:
(courtesy Chris Powell/Ross Norman/Pixley)
Ross Norman: Central bank manipulation of gold wouldn’t surprise me
Submitted by cpowell on Mon, 2016-10-17 12:12. Section: Daily Dispatches
By Ross Norman, CEO
Sharps Pixley Bullion Brokers, London
Sunday, October 16, 2016
GATA Secretary Chris Powell has invited me to reply to his October 15 commentary —
http://www.gata.org/node/16839
— in which he replied to my article of the 14th, wherein I rebutted an academic study that concluded that the London gold price fix was manipulated:
http://news.sharpspixley.com/article/london-fixings-the-case-is-laid-bar…
If you look at my article (and indeed previous ones) you will see that my aim is t