Good morning Ladies and Gentlemen:
Gold closed down by 7.40 to 947.. Silver fell by 27 cents to 14.72.
The open interest on the gold comex closed up by 2600 contracts to 389149. We are again approaching levels last seen in March 2008 a day that Bear Stearns was rescued.
The open interst on the silver comex continues to confound everyone. It rose an astonishing 3600 contracts on Thursday, which no doubt caused the raid on Friday.
The COT report released after the close was quite revealing.
First the silver COT report:
Of special note is Corus, which has 2/3 of its total loans NON PERFORMING. The big Marshall and Ilsley bank of Wisconsin, and the state of Wisconsin's largest banks has seen its non performing ratio climb to 5%. Synovus, which has huge defaulting construction loans in the Atlanta area has its non performing ratio climb to 5.4%.
In other economic news, consumer prices remain flat last month as inflation was held in check. The consumer is not spending for prices are not rising yet: