Good evening Ladies and Gentlemen:
Today, the banking cartel decided to continue with its massive assault on gold and silver. The bankers are desperate as the end game is now being played out. This is why I have cautioned you against playing with these bullies. It is best to thumb your nose at these clowns by buying the physical metal from dealers or from banks. I also will caution you that you may see a discrepancy between the paper price of metal and the price of the physical metal you buy.
Gold closed today down $26.60 to $1514.19. The silver price was also hit hard, falling by $3.32 to $39.38.
Let us now head over to the comex and see how events shaped up over there.
The total gold comex OI fell by only 5561 contracts despite the huge attack by the bankers. Today's comex OI rests at 522,323 (basis Tuesday) whereas the Tuesday reading (basis Monday) came in at 527,884. Not much liquidation here. The bankers were quite annoyed that not many leaves fell from the gold tree. The front options expiry month of May saw its OI rise surprisingly from 116 to 162. There were only 2 deliveries yesterday so we gained in gold oz standing and lost nothing to Blythe Masters and her court of merry men (JPMorgan). The next front month of June which will become the Battle of Waterloo saw its OI fall marginally from 342,856 to 335,266. The bankers needed a bigger drop here. The estimated volume at the gold comex today was a monstrous 214,373 with hardly any switches. The confirmed volume yesterday was also huge at 218,289. It kind of shows you the massive fire power by the banking cartel with non backed gold paper. The regulators are still in a daze as they do not know what to do.
And now for silver:
The total silver open interest shocked the living daylights out of bankers today. The total OI rose by 1340 contracts. The bankers were hoping to see huge number of silver leaves fall from the tree. They were shocked as there was no liquidation whatsoever. I guess that was the reason for another raid today. All eyes are on the front delivery month of May. The OI fell from 1052 to 692 for a loss of 360 contracts and only 77 deliveries yesterday. We lost a huge number of silver oz again to Blythe. She must have offered huge premiums again. The next front month for silver is July and here we saw the OI lowered from 78,417 to 77,868. The estimated volume at the silver comex today was 152,930 with no switches. (this represents 765 million oz or over 100% of annual silver production). The confirmed volume yesterday was an astonishing 179,916 or close to 900 million oz of silver.
Here is the chart for 5/4/2011 regarding deliveries and inventory changes at the comex
|Withdrawals from Dealers Inventory||4758 (Brinks)|
|Withdrawals from Customer Inventory||603,181 (Brinks)|
|Deposits to the Dealer Inventory||NIL|
|Deposits to the Customer Inventory||1,434,657 (various)|
|No of oz served (contracts)||130,000 (26)|
|No of oz to be served (notices)||3,330,000 (666)|
|Total this month oz silver served (contracts)||565,000 (113)|
|Total accumulative withdrawal of silver from the Dealersinventory this month||4758|
|Total accumulative withdrawal of silver from the Customerinventory this month|| 1,234,592|
Let me begin with gold:
Today we witnessed a deposit of 4700 oz of gold into the vault of Brinks.
Please note that we again got an exact round number of 4700 instead of say 4701 or 4702.
Gold bars are not exactly 100 oz or 400 oz and can vary widely. It is rare to have an exact deposit of 4700 oz. Thus I believe that this deposit is paper only. The comex stated that there were no withdrawals by the dealer and there were no deposits of gold by the customer.
We did experience withdrawals from the customer:
1. 100 oz (Brinks)
2. 25,083 oz (HSBC)
3. 675 oz (Manfra)
total 25,858 oz.
The comex notified us that there was an adjustment of 200 oz from the dealer to the customer account.
Maybe this is a repayment of a lease from a prior commitment. There was another adjustment of 1000 oz exactly added to the customer.
Today, the comex notified us that we had 108 notices for delivery served upon our longs for a total of 10800 oz of gold. The total number of gold notices standing so far total 130 or 13000 oz of gold. To obtain what is left to be served, I take the OI of May (162) and subtract out today's deliveries (108) which leaves me with
54 notices or 5400 oz of gold to be served upon.
Thus the total number of gold oz standing in this non delivery month of May is as follows:
13,000 oz (served) + 5400 oz (to be served) = 18,400 oz. Yesterday we had a total of 13,600 oz so we are finally seeing this number start to rise.
And now for silver. First let me apologize as somehow my chart got obliterated as I posted it last night and I did not notice it. I proof read before posting but I did not check the actual post. I am truly sorry for blowing it last night.
The silver comex had no deposits for the dealer. Strange for a delivery month. The dealer however did have a withdrawal of 4758 oz as silver left Brink's dealer vault.
The customer had huge deposits of silver:
1. 599,231 oz into Brinks
2. 634,547 oz into Scotia
3. 200,879 oz into JPMorgan.
total: 1,434,657 oz
total: 1,434,657 oz
The customer has a huge withdrawal of 603,181 oz.
When you see these huge movements of silver, you know there are problems in the physical markets as silver is needed somewhere as investors seek the diminishing supply of this commodity.
Today the comex folk announced a total of only 26 notices that were served upon our longs for a total of
130,000 oz of silver. You will note that in the past 5 days, we only have the following notices filed:
day 1: 6 only
day 2: 4 only
day 3: zero
day 4: 77 only.
day 5: 26 only.
And this is a delivery month. In a nutshell, these guys do not have any physical silver to serve upon our longs.
The total number of notices filed so far this month total 113 for 565,000 oz. To obtain what is left to be served upon, I take the OI at 692 and subtract out today's deliveries (26) which leaves me with 666 notices or 3,330,000 oz left to be served upon.
Thus the total number of silver oz standing in this delivery month is as follows:
565,000 oz + 3,330,000 (to be served) = 3,895,000 oz. Yesterday we had a total of 5,310,000
so we lost another 1.415 million oz for cash settlements.
The gold and silver shares did not participate in the drubbing today and actually held their ground.
Thus the raid is now over and gold and silver metals will have a good day tomorrow as the bankers try and cover the massive amounts of paper they supplied.
Let us head over to our ETF's
The two ETF's that I follow are the GLD and SLV. These two funds have no metal behind them and you should steer away from these fraudulent vehicles.
First GLD inventory changes: May 4.2011:
Total Gold in Trust
How about the SLV? May 4.2011:
|Ounces of Silver in Trust||333,958,061.600|
|Tonnes of Silver in Trust||10,387.26|
SLV: May 3.2011:
|Ounces of Silver in Trust||354,100,312.500|
|Tonnes of Silver in Trust||11,013.75|
I find this absolutely astonishing: a loss of 20.14 million oz of silver.
And you honestly believe that they can move 20.14 million oz out of the SLV vaults in one day?
and they are short somewhere around 26-30 million oz? Where are on earth are the regulators?
If any of you play with this vehicle you are at peril on this one.
I doubt very much if they have any real physical left. It is quite conceivable that all of its silver is encumbered.
Let us head over to our closed physical funds that we follow: the Central Fund of Canada and Sprott's gold and silver funds:
Wait to you see the central fund's Nav!!!!!
1. Central Fund of Canada: Negative NAV 3.7% in Usa funds and negative 3.6% in Canadian funds.
2. Sprott silver fund (PSLV): Premium to NAV remains high at 11.02%
3. Sprott gold fund (PHYS): premium to NAV lowers to 1.23%.
Now we shall we the big stories of today.
There is no question that this certainly bewildered our bankers as Mexico announced a purchase of 93.6 tonnes of gold. (story is courtesy of the Financial Times and the author is Jack Farchy:
Now let us see some of the big economic stories of the day.
The USA announced that the private ADP jobs numbers were much lighter than expected.
The Dow fell on this news (courtesy Reuters)
The Dow fell on this news (courtesy Reuters)
And then this number came out at 10 am where the service ISM number came in much weaker across the usa: (courtesy Reuters)
I was waiting for this one for a while. Geithner is asking for 2 trillion dollar raise in the debt ceiling to tide them over until the election in 2012 is over. And they plan on cutting expenses?
Here is this report courtesy of Reuters:
Oh my gosh, I just got this from zero hedge just now. They raised the margins on silver again for the 4th time in a week. I guess I am right, there is no silver at the comex
and they scared out of their minds that the 3.3 million oz standing will not budge and receive cash.
I am so sorry to report this to you. I urge you not to go near the comex; and do not buy paper silver or gold. Please only buy physical metals.
You must also be very careful of gold and silver shares as this is paper as well and these goons can short the living daylights out shares as they just add them to their FDT's (failure to deliver). Here is zero hedge on the announcement of a silver margin rise:
CME Hikes Silver Margins By 17%: 4th Hike In 8 Trading Days
Submitted by Tyler Durden on 05/04/2011 17:36 -0400
Nobody could have foreseen this. Nobody. At this point there is nothing left to comment on what is a concerted action to "mitigate" any and all risk in the commodity market but could as well be classified as executive order 6102.5. While we were joking before that soon one will have to post more cash than an silver contract is worth, we are now forced to reevaluate this sarcasm.CME Silver: www.scribd.com/doc/54646987/cme-silver-change-remove
Ladies and Gentlemen:
expect massive volatility in the next few days as the end game is being played out.
Expect 'atomic bombs' to be released. (massive non backed paper)
It is getting very difficult for me to report to you as we are witnessing massive fraud on a daily basis.
It is so hard for me to write these developments to you.
all the best