Good morning Ladies and gentlemen:
First of all, I would like to report that the usa regulators closed its 124th bank last night
in Florida. Here is the CNN news report on this closure:
After the markets closed, the CFTC released the COT report on silver and
gold. I still feel that the data is corrupted. With the huge advancement in both
gold and silver price, one would expect that the commercials on a net basis
would be supplying the paper. The COT report basically shows no change
from the previous week in that it was the small speculators supplying the silver and gold
paper. Judging from the action in both metals this week, the data is just impossible to believe. Here is the report for you to see for yourself:
OK lets go to yesterdays gold and silver trading:
Gold closed up by $5.00 in regular comex trading. At 1:30 the gold price was $1146.40. It continued in the access market
in strange fashion up another 4.00 dollars where it closed in that market at $1150.90.
Silver closed at $18.43 at 1:30. Silver rose to $18.51 in the access market.
Today, I will spend most of my commentary time on the silver and gold trading.
First of all, here is the summary of comex trading yesterday in gold:
The volume recorded is an estimate by the CFTC and they are always off by 20% or greater.
The total volume recorded by the commission was 233638. The probable volume will turn out to be
280,000 and this number will be released on Monday. Judging from the access market on Friday,
the OI on Friday, reported on Monday will be huge!
Also note the huge OI for Dec 09 gold: 238500.
This number is astronomical for this time as we have 1 day before options expiry. The December gold
contract goes off the board Monday night, but the December contract still trades. To get an accurate
figure as to how many contracts are standing, I need Dec 1.09 figures. We will get a big clue on NOV 30.09
which is first day notice.
Finally, note the huge OI increase of over 13000 contracts for the entire gold complex. Our bankers did everything Thursday trying to prevent gold's rise
The bankers were intent on preventing long option holders from exercising their gold comex in the money contracts.
The failed on Thursday and I will describe later in the commentary, a complete failure on Friday, by our banker cartel members.
OK lets go to silver:
The total OI for silver has been fluctuating between 139000 and 141000 for the past few days.
Thus no real surprises here. However note the OI for Dec 09 silver at 55,550. It has not declined much.
As with gold, the silver comex goes off the board on Monday night.
It seems to me that in both silver and gold, we have investors wishing to clean out the comex.
As for the trading in both comex gold and silver, the bankers showed up at the regular time and whacked these
metals at the usual 3 am time period. (right after the London gold fix).
For the second straight day, we had an outside day reversal. These events are rare. To have them two days in a row
is like once in a century.
I believe that this is the second month in a row where we have seen consecutive outside day reversals on options expiry week.
In other news, Ted Butler on Eric King world discussed his latest paper on silver. It is a paid subscription
of which I do not get, but on the radio broadcast Butler discussed that it is his supposition that the CFTC may close down silver
trading in its entirety due to the huge 200 million oz short position by JPMorgan.He feels that it would be impossible to put position limits on silver and then
let it trade. It would blow up the bank.
Butler sent his article to the CFTC and to CEO Jamie Dimon for comment.
He has not heard from any party.
Here is the radio report which is very important for you to hear:
Max Keiser in his weekly TV report disclosed his close contacts with Bundesbank officials. In the report, he stated that
Germany is now buying gold on the open market.
Germany supposedly has 3400 tonnes to its credit. And yet it is buying gold.
Our bet: half of their gold has been leased and they will never get that back
The other half is over at West Point and the Germans are pulling their hair trying to get
Our bet: it is gone too.
Here is the story:
I have attached the video. Press on www.maxkeiser.com
The Russians continue to purchase gold as they are trying to catch up with their southern neighbour China:
As for yesterdays trading here are some numbers. However the trading day is really all about silver and gold:
You will note that the dollar rose and the Euro fell. Thus gold is rising in all currencies.
To my fellow Canadians:
The Canadian dollar closed at 1.0710 yesterday. Thus Canadian gold is 1232.61 per oz . This is a record high close.
The Central fund of Canada also closed at record high of 15.48.