Before commencing as is my custom on Saturday, I would like to inform you that we had one bank enter our banking morgue:
Coastal Bank of Cocoa Beach Florida.
Yesterday gold finished the session up $10.20 to $1491.20 having experiencing quite a roller coaster ride whereby in the early morning it fell to its lows of around $1478.00 at both 4 am eastern standard time and again at 9 am. It then zoomed to $1496.00 as the afternoon London fix was set. Once London was put to bed, it was sent down again by the crooked bankers back down to $1491. 20 which was the comex closing. In the access market it continued its advance and finished at $1495.40.
Silver also had a roller coaster ride as this metal absorbed the shock of a massive hike in margin requirements announced on Wednesday night whereby two hikes were to take effect:
1. Thursday night
2. This coming Monday night.
During the wee hours of the morning silver straddled the 35.00 dollar mark. Once Comex opened, the crooks certainly fixated their attentions on silver as they knocked the price all the way down to the lows of around $33.20. It then rocketed northbound all the way to its high of around $36.20 at 11 am est exactly the time that London was put to bed. After the physical pricing of the metal it was sent down to its closing price of $35.28. In the access market it rebounded with gold to $35.68.
Let us head over to the comex and see how trading fared over there yesterday.
The total gold comex open interest fell by only 3248 contracts despite the massive raid on Thursday.
Please remember that the open interest reading is basis Thursday night. The front options expiry month of May saw its open interest mysteriously remain relatively constant falling by only 4 contracts from 178 to 174.
Remember that we had 76 deliveries so we lost zero oz to cash settlements and thus we gained considerable gold oz. standing. All eyes will begin focusing on the big June delivery month. Here the open interest fell by 8711 contracts from 329,173 to 320,462. This is a normal reaction to the raid. The estimated volume at the gold comex on Friday came in at a very strong level of 253,829. Wait until you see the confirmed volume on Thursday: 361,199 with minor switches. The bankers threw everything at the speculators trying to drive this ancient metal of Kings down. The bankers are using high frequency trading in these metals and it is certainly getting the attention of the CFTC commissioners. I will delve into this in the body of the commentary.
The total silver comex open interest shocked everyone with the announcement that the OI rose by 4279 contracts from 130,525 to 134,804. The crooked bankers threw the "works" at the silver longs trying to shake as many leaves off the tree as possible. Some weaker guys left but stronger ones arrived on the scene to take up the cause and this weekend our banking cartel are having another of those secret retreats planning on what they are going to do on Monday. They will have the benefit of that second margin increase taking effect at the opening of trading on Monday. This is the first time ever that I can recall that we had an open interest increase with several days of massive hits orchestrated by the bankers.
The front delivery month of May saw its open interest fall from 700 to 627 for a fall of 73 contracts. Remember that we had only 23 deliveries so Blythe was busy buying off some silver comex longs with fiat dollars and a huge premium to boot. The next front month of July saw its OI advance from 75,089 to 77,140 as the bankers assault could not shake any leaves from the next front month. The estimated volume on the silver comex was a monstrous 177,135 with no switches on Friday. This is equivalent to 885 million oz or
126% of annual global silver production. Take a look at the confirmed volume on Thursday: 226,412 contracts or
1.132 billion oz. This is 161% of annual global silver production. The comex is experiencing massive high frequency trading in the silver complex as well as gold.
Here is the chart for May 7.2011 regarding deliveries and inventory changes at the comex
|Withdrawals from Dealers Inventory||112,220 (Brinks)|
|Withdrawals from Customer Inventory||450,181 (Brinks,Scotia)|
|Deposits to the Dealer Inventory||NIL|
|Deposits to the Customer Inventory||NIL|
|No of oz served (contracts)||90,000 (18)|
|No of oz to be served (notices)||3,045,000 (609)|
|Total this month oz silver served (contracts)||770,000 (154)|
|Total accumulative withdrawal of silver from the Dealers inventory this month||208,643|
|Total accumulative withdrawal of silver from the Customer inventory this month||1,989,779|
Total Gold in Trust
Total Gold in Trust: May 5
Total Gold in Trust: May 4.
|Ounces of Silver in Trust||329,665,590.000|
|Tonnes of Silver in Trust||10,253.75|
|Ounces of Silver in Trust||330,153,362.000|
|Ounces of Silver in Trust||333,958,061.600|
|Tonnes of Silver in Trust||10,387.26|
Gold COT Report - Futures
Change from Prior Reporting Period
non reportable positions
Change from the previous reporting period
COT Gold Report - Positions as of
Tuesday, May 03, 2011
Please remember that this report is from April 27 to May 3. It does not include the last 3 days of the gold raid.
Those large speculators that were long in gold lightened up their positions by 1,167 contracts.
Those large speculators that were short added a huge 7743 contracts to those positions as the raid was already in progress and they wanted to join forces with the raiders.
And now for our commercials:
Those large commercials that have been long in gold lightened up on those positions to the tune of 5101 contracts.
Those large commercials that have been short gold from the beginning of time covered a massive 13,993 contracts. My bet was that most of the short covering here occurred on Monday May 2 and on May 3 the last day of this report. The small specs have been obliterated again and minor amounts of contracts were shed. I would like to point out that the increase in margin requirements remove the little guy who has been supplying much of the liquidity. Thus the downfall in price is much magnified as will a price rise as the small speculators abandon this rigged casino.
Let us now see silver:
Silver COT Report - Futures
non reportable positions
Change from the previous reporting period
COT Silver Report - Positions as of
Tuesday, May 03, 2011
Job gains largest in 11 months, but jobless rate up
WASHINGTON (Reuters) - U.S. employment increased more than expected in April as private companies created jobs at the fast pace in five years, pointing to underlying strength in the economy, even though the jobless rate rose to 9.0 percent.
Nonfarm payrolls rose 244,000 last month, the most in 11 months, the Labor Department said on Friday. The private sector accounted for all of the job gains last month, with payrolls rising 268,000, the largest rise since February 2006.
The gain in overall payrolls, above economist' expectations for a 186,000 increase, was supportive of views the economic recovery would regain speed this quarter after stumbling in the first three months of the year on high commodity prices.
Data for the previous two months was revised to show 46,000 more jobs were added.
Gains in April marked seven straight months of net job creation, but remained too little to make much of dent on the pool of 13.7 million Americans out of work.
The unemployment rate backed away from a two-year low of 8.8 percent. It is derived from a separate survey of households which showed a decline in employment and a moderate rise in the size of the labor force.
The unemployment rate had dropped a full percentage point since November and the latest rise will strengthen the Federal Reserve's resolve to stick to its ultra-easy monetary policy stance.
The Fed last month signaled it was in no hurry to start withdrawing its massive stimulus for the economy, even as other major central banks around the world have begun to raise interest rates.
High gasoline and food prices clipped U.S. economic growth in first quarter. The economy grew at a 1.8 percent annual rate after expanding at a 3.1 percent clip in the final three months of last year.
The economy has recovered only a fraction of the more than 8 million jobs lost in the 2007-2009 recession. Job growth of between 250,000 and 300,000 a month is needed to make significant strides in reducing unemployment.
WEAKNESS SEEN TRANSITORY
Details of the April employment report were generally upbeat with the exception of government employment, which contracted for a sixth straight month in April, shedding 24,000. The bulk of gains in payrolls last month were in the private services sector, which added 224,000 after 194,000 jobs March.
Employment in the goods-producing industries increased 44,000, with construction payrolls climbing by 5,000 and manufacturing hiring gaining 29,000.
The employment report also showed the average workweek unchanged at 34.3 hours for a third straight month and no sign of wage inflation, with average hourly earnings rising a mere 3 cents.
- April Household Survey Showed 190,000 Employment Drop
- April Unemployment Rates: 9.0% (U.3), 15.9% (U.6),22.3% (SGS)
- Broad Money Supply Gains in April
- Underlying Inflation, Dollar and Precious Metals Fundamentals Unchanged
China pushes U.S. on debt ahead of high-level talks
BEIJING (Reuters) - China, wielding its huge dollar holdings, on Friday pressed Washington to tackle its huge fiscal deficit and said it would raise the issue of discrimination against Chinese investors at high-level talks next week.
Senior Chinese officials also made clear that U.S. demands for Beijing to raise sharply the value of the yuan currency and to end a crackdown on dissent -- both irritants in ties between the world's two biggest economies -- would gain little ground at next week's Strategic and Economic Dialogue in Washington.
"We are paying a lot of attention to this (the fiscal deficit)," Chinese Vice Finance Minister Zhu Guangyao told reporters at a briefing about the talks.
The White House is in tense negotiations with Republican lawmakers over rival proposals to tackle the budget deficit, expected to reach $1.4 trillion this year and a serious worry for governments like China that buy heavily in U.S. Treasury bonds and other dollar assets.
China's has the world's biggest foreign exchange reserves, with about two-thirds estimated to be held in dollars, and any sign it was alarmed by policy uncertainty could ripple through global markets.
"We hope that the United States in its fiscal clean-up will be able to adopt effective measures based on President Obama's proposal," Zhu said, giving unusually forthright backing to the Obama plan.
"For the present stage, we believe that the most crucial thing is that the U.S. economy maintains a vigorous impetus toward recovery and that this developing trend is maintained," Zhu said.
Zhu and Chinese Vice Foreign Minister Cui Tiankai, speaking to reporters ahead of the start on Monday of the two-day talks, laid out Beijing's positions on other economic and foreign policy disputes, stressing their desire for cooperation.
That included the yuan exchange rate, which Washington has repeatedly said is held too low, making Chinese exports unfairly cheap and deterring bigger Chinese purchases of U.S. goods.
The two agree on the direction of yuan reform, but differ on the pace of appreciation, said Zhu.
"On these specific issues, I frankly acknowledge that China and the United States have different views. Therefore, we need to have discussion."…
The Euro has lost considerable ground to the dollar during the past 5 days. The reason for the fall from grace is due to Greece who are threatening to leave the Euro scene.
Greece raised possibility of euro exit-report
BERLIN, May 6 (Reuters) - Greece has raised the possibility of exiting the euro zone in discussions with the European Commission and other member states in recent days, Germany's Spiegel Online reported on Friday.
The magazine said euro zone finance ministers were meeting in Luxembourg on Friday evening to discuss the Greek crisis and that a possible restructuring of its debt would be on the agenda of the meeting.
"The government has raised the possibility of leaving the euro zone and reintroducing its own currency," the report said, without citing its sources.
- EU'S JUNCKER SAYS `STUPID' TO TALK OF GREECE EURO EXIT
- EU'S JUNCKER SAYS `NO WAY' GREECE WILL LEAVE EURO AREA
- EU MINISTERS TO DISCUSS NEW `ADJUSTMENT PROGRAM' FOR GREECE