First of all, I would like to report that the Comex at 1 am last night updated its dealer inventory
and reported that approx 1 million oz of silver have been removed from the registered and dealer inventory.
The dealer inventory, I guess, lost some of their newfound babies. The new supposed inventory levels of the dealers
rest at 50.25 million. In reality if they have 10% of that inventory they would celebrate. Silver inventories around the
world are depleting faster than a speeding bullet.
That set the stage for todays inventory number as 749000 oz were deposited into the eligible inventory
We will have to wait and see if this inventory leaves like all of the other nervous nellies witnessed during this past month.
OK lets go to the all important deliveries. Lets start with silver:
These are the number of notices served and in a "short" period of time, silver will be delivered with bar number and weights attached.
Here is the open interest for the May silver:
So we can get a good idea of what will stand for the month:
The number of May silver contracts standing at May 1.2010 is 3685 or 18.4 million oz.
We must add the 2.43 million oz silver options exercised for April ( a non delivery month for silver). Thus total silver to be served for metal in May is 18.4 plus 2.43 or 20.83 or almost
21 million oz, a little drop from March. Only 4 million oz from the March silver delivery month have been settled!! Maybe the well informed insiders know that
the comex has little physical silver that can be delivered upon.
(It is very important for all to understand that the comex is really not a physical market for gold and silver. That rests with the LBMA over in London England.
That is the dominate market for physical. For those wishing physical gold, they just call up their friendly banker and deposit money and get whatever gold is available at
a price determined by the customer or at a fix price. A wealthy Greek purchaser, wishing to get out of his euros will place his money through a Greek banker who contacts a London banker.
The London banker then will take instructions as to price. Lets say the Greek investor wants 100 0z. He will place that order for 100 0z at the morning fix, or at the afternoon fix if that is the order. Depending on availability he may get filled or he may have to wait as many seek the tiny amounts coming from the mining sector and/or central bank above ground gold. He may stipulate a price and if the gold price is higher, he is out of luck.)
Lets go to gold deliveries. The month of May is a non delivery month for gold, so it is only options exercised for metal that are served upon.
Here are the totals here:
Employment costs are a drag on the economy and make exporting of goods costlier and also make workers seek increases in wages.
Spain, Portugal and Ireland has massive problems because of huge labour costs forcing production to leave these countries to lower cost regions like Germany.
The economy seems to rolling along in the Midwest and confidence numbers are improving:
However, here is John Williams in his ShadowGovernmentStats as he throws into question the numbers the government releases:
Here is an important commentary from Jessie of Jessiecrossroadscafe.com:
Notes: JPMorgan has the biggest exposure to defaults of the "PIIGS" nations. JPMorgan has 36.3 billion dollars of loans to these nations and it represents 28% of their tier 1 assets.
(Please understand...this is tier 1 (good assets) as compared to tier 3 which is toxic or worthless junk)
Morgan Stanley holds a lesser amt of 32.4 billion but this total represents 69% of its tier 1 assets.
Thus a default by these nations will bring down Morgan Stanley and most likely JPMorgan who would have other problems because of credit default swaps which is not included in these figures.
Note: all the usa banks hold 236 billion dollars to these 5 nations. This should wipe out most of the usa banks reserves.(credit default swaps are not included in this figure)
Note: European banks hold 193 billion dollars on Greece alone...naturally this would wipe out all reserves at European banks.(credit default swaps are not included in this figure)
Note: take a look at the total claims on Spain of 832 billion dollars. This is from the BIS and this figure INCLUDES CREDIT DEFAULT SWAPS.
Ladies and Gentlemen: from these figures you can see a systemic diaster waiting to unfold.
Rearding the CFTC hearings of which I participated in, is the following: