I will spend more time on the huge re-hypothecation story that is gripping the nation as it has huge implications for all of us. Yesterday, a lawsuit arose between HSBC (with client Jason Fane) vs MFGlobal (trustee) on ownership of bars registered in the name of the client who had asked the storage operator, HSBC to ship the gold to another warehouse Brinks. I have written to the CFTC on this issue and I hope I get a response. However before heading into that area I would like to report that the FDIC boys got another week off as their were no banks that entered the hallowed shrine of the banking Morgue.
Now let us now head over to the comex and see how trading fared, coupled with delivery notices, inventory changes and the weekly COT report. Gold finished the comex session up $2.50 to $1712.00 while silver had a better day finishing up 63 cents to $32.17. The rise in the precious metals was tame compared to the Dow which rose by 168 points on news that there was no appreciable advance on how the Eurozone was going to finance their rescue. The total gold OI rose by 2150 contracts despite Thursday's huge wallop. As I promised you the raids are having no appreciable effect on our stable longs as we obtain new entrants at lower prices. What is shocking is the front delivery month of December. Here the OI rose by 496 contracts despite 77 deliveries. We therefore gained in ounces standing and lost nothing to cash settlements. Generally we see increase deliveries to the dealers as they try and bail themselves out of problems in other jurisdictions as participants are anxious to get their hands on rapidly fleeing gold.
Late last night we got notice of intent to deliver on Monday and it was only 21 contracts. Something is seriously happening at the gold comex as the numbers of OI are fluctuating like mad in the front delivery month. The next delivery month is February and here the OI remained relatively constant at 262295 dropping only 2 contracts despite the raid. That kind of shows you how resilient the longs are behaving. Maybe they are witnessing action in December and want physical metal today instead of February . The estimated volume at the gold comex yesterday was very tame at 113,229. The confirmed volume on Thursday, the day of the ridiculous raid was 190,009 contracts.
The total silver comex OI rose slightly from 94,999 to 96,761 for a gain of 1,762 contracts. This occurred with a huge loss in silver prices on Thursday. The increase in OI with a huge drop in price is totally incomprehensible but what else is new when we are talking about the crooked comex casino. The front delivery month of December behaved in a normal fashion by dropping 23 contracts from 414 to 391. We had 24 deliveries so we gained one contract of silver standing. The next big delivery month is March and here the OI rose from 53,683 to 54,100 as we witnessed that no silver leaves fell from the silver tree. The estimated volume at the silver comex was a very tame 35,356. The confirmed volume on Thursday was 56,186 and much of that was short selling.
Inventory Movements and Delivery Notices for Gold: Dec. 10 2011:
Withdrawals from Dealers Inventory in oz
Withdrawals from Customer Inventory in oz
Deposits to the Dealer Inventory in oz
Deposits to the Customer Inventory, in oz
No of oz served (contracts) today
No of oz to be served (notices)
1080 (108,000 oz)
Total monthly oz gold served (contracts) so far this month
Total accumulative withdrawal of gold from the Dealers inventory this month
Total accumulative withdrawal of gold from the Customer inventory this month
Today we finally had a deposit to the dealer although extremely tiny at 1999 oz to the dealer Brinks.
We had no dealer withdrawal of gold.
We had the following deposit to the customer:
1. 1607 oz into Manfra.
We had the follow withdrawal of gold from the customer:
1. 225 oz from Manfra
2. 101 oz form Scotia
total withdrawal by the customer; 326 oz
we had one adjustment whereby a tiny 96 oz of gold was leased from the customer to a dealer.
The registered gold inventory remains at 3.34 million oz.
The CME notified us that we had 276 notices filed for 27600 oz of gold. The total number of notices filed
so far this month total 18,178 for 1,817,800 oz of gold. To obtain what is left to be served upon, I take the OI standing for December (1356) and subtract out Friday's deliveries (276) which leaves us with 1080 notices or 108000 oz left to be served upon.
Thus the total number of gold ounces standing in this delivery month of December is as follows:
1,817,000 (oz served) + 108000 (oz to be served upon) = 1,925,800 oz or 59.9 tonnes of gold.
and yet hardly any gold is deposited into the dealer and no gold is withdrawn. Something is up!!