Good evening Ladies and Gentlemen:
I will be away for a few days. My son Stephen will write the report on any significant details. He will wait for me to explain things for you.
On the comex front, big developments occurred. The silver OI for December rose by a FULL 2 million oz . There have been a total of 24.8 million oz hit. The total that remain is about 2050 contracts or a little over 10 million oz of silver. It looks like the comex boys are deciding to hide the options on silver which investors exercised and are standing.
The OI for gold also continues to rise and the amt standing will probably stand at 1.5 million oz.
I have noticed that silver and gold are net leaving the comex. No new supplies have been received.
For the first time, I can state that it looks a little precarious for our comex boys.
I have forwarded to you important articles of the day for you to read:
Would like to share this with your readers.
On foot of the important information from one of your readers Paul – we created a very interesting chart of Russian Central Bank Gold Holdings complete with images of the Russian Premiere and President holding gold bars (with intent) - http://blog.goldassets.co.uk/2008/11/26/is-the-great-bear-bullish-on-gold/ .
To say that these powerful players (and others in the Middle East and China) are irritated with the Wall Street/ Treasury/ Federal Reserve nexus would be an understatement and they are almost certainly using proxies to buy up bullion internationally (likely including taking delivery on the COMEX). Gold inventories were rapidly depleted on Friday and yesterday – deliveries of a very significant 38% in just these two first days (1,116,600 oz vs inventory of 2,908,224 oz.) With final notice day for COMEX Gold Deliveries not until December 29th it looks like we may have some fireworks in store on the COMEX and your much anticipated Commercial Signal Failure.
The ‘powers that be’ are certain to want gold below the psychological $800 or the January 2nd 2008
Also great anti gold propaganda for Gartman and the usual Wall Street suspects – the usual simplistic and misleading ‘we told you so - gold went down in the worst financial and economic year in living memory - 2008, thus proving it is not a safe haven’.
The truth is as ever that gold had anticipated the economic crisis in the previous years (markets being efficient as Gartman continually tells us – obviously except when manipulated) and that is why gold was up 31% in 2007 and has more than tripled in the last 7 years – thus outperforming all asset classes over the
Ipso facto, gold is, has always been and will always be a safe haven.
Finally, after having difficulty sourcing gold and silver bullion coins and bars (partic 1 oz) for many weeks, we have managed through our extensive network of US and European suppliers to get supply in quantity at good prices. Premiums have come down a small bit in the last few days (Maples and Bars at 5%, Krugs now 6%; Eagles remain high at 7%) but I believe this is a short term phenomenon and they will soon rise again and we are likely to have further shortages in the bullion market soon unless we have markedly higher gold and silver prices in the coming weeks which could see some supply come back into the secondary market.
Long term the trend for premiums is only going to be up and I believe soon it will be very hard to buy any bullion coins in single digits. Already premiums on bullion coins and smaller bars have increased dramatically (from low single digits to double digits) and we may be witnessing a new pricing structure whereby gold and particularly silver bullion in smaller formats always attracts a higher premium than does gold and silver bullion in large bar format.
In the same way that jewellers have massive mark-ups of hundreds of percent on their jewellery products (often on only 9 and 14 carat purity), legal tender gold and silver bullion coins (22-24 carat) may soon attract a far higher premium to both buyers and sellers.
Midas is as ever a sandbag of sanity.
Keep up the good work !
Gold and Silver Investments Limited
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What I am noticing is that huge amts of metals are leaving the comex. Generally, on first day notice, we see huge inflows with identical outflows.
We have not seen this at all.
On the last days of Nov we have seen huge amts of silver leave the comex. The last two days, we have seen almost 25 million oz hit. We have not seen any silver leave the comex yet.
It is also strange to see the OI rise by 2 million oz in silver.
In other news:
SNB Looks for New Tools in Zero Interest-Rate World
Tuesday, December 2, 2008
ZURICH -- The Swiss National Bank is becoming the first central bank in
"They simply don't have much room left on interest rates" following a 100 basis-point cut Nov. 20, said Reto Huenerwadel, senior economist at UBS AG in
Libor rates continue to remain constant at 2.21%. The banking channels still remain clogged. The only one who are clearing cheques are the Fed themselves. They are also buying all the Treasuries with newly minted paper.
Auto sales continue to plummet:
Dec. 2 (Bloomberg) -- General Motors Corp., Ford Motor Co. and Toyota Motor Corp. said November U.S. sales tumbled more than 30 percent as the recession and Detroit automakers’ aid pleas kept buyers away from showrooms.
GM, the largest U.S. automaker, said sales dropped 41 percent, while No. 2 Ford was down by 31 percent. Toyota, Asia’s biggest automaker, posted a 34 percent decline and Honda Motor Co. slid 32 percent....
December 02, 2008.
I will now leave you in the capable hands of number 4 son. He has been helping me throughout the last two months and he will highlight to you important passages.
It is important that the OI for December silver and gold are rising. It is also scary that OI on gold continues to contract, lowering its OI to 266000. Silver remains at a very low 85000.