Total Gold in Trust
Total Gold in Trust May 11:
we lost another .91 tonnes of gold. Some of you have correctly pointed out that physical gold is moving out of the GLD therefore it must have physical gold behind them. It seems that the Bank of England is directing events here.
|Ounces of Silver in Trust||338,689,167.600|
|Tonnes of Silver in Trust||10,534.41|
Ounces of Silver in Trust 338,103,912.000
Tonnes of Silver in Trust 10,516.21
Ounces of Silver in Trust 338,884,291.200
Tonnes of Silver in Trust 10,540.48
SLV: May 10:
Ounces of Silver in Trust 340,347,517.200
Tonnes of Silver in Trust 10,585.99
We gained back 586,000 oz of paper silver today. The story is a little different with silver as their is no official above ground silver supplies. The SLV is believed to have received their initial supply from Buffet's 137million oz but this silver has long been leased out. This is why I state we have one inventory for 3 entities:
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 10, 2011
In the gold COT report, the large specs got blown out of the water as they pitched 18,465 long contracts.
Those large specs that have short, covered a smallish 2,148 contracts.
And now for our famous commercials:
Those commercials that have been long gold added a monstrous 16,484 contracts to their longs.
Those commercials that have been short like JPMorgan and partners covered only 2, 037 contracts.
However if the commercials bought long contracts that is the same as covering their shorts..instead of covering a short contract say in August they buy a December contract. In essence they have a spread.
The small specs that were long gold pitched a larger than usual 4,298 contracts of gold.
Those small specs that were short gold covered 2094 contracts.
Also remember that this data was the last 3 days of last week's raid
Silver COT Report - Futures
non reportable positions
Change from the previous reporting period
COT Silver Report - Positions as of
Tuesday, May 10, 2011
It is also interesting that the Euro price of gold is hovering around the 1060 Euros/oz of gold.
The Euro has been falling due to problems in Greece, Ireland and Portugal. Thus the price of gold is holding in Euro terms despite the Euros fall. Thus the gold rise these past few months has been strictly a USA phenonemon. The bankers are very nervous as the Europeans are very old school and watching this very closely. A breakout over 1060 euros/oz will bring on a whole new slew of buyers.
Here is a chart on this for you to see:
Here are some of the stories making the news yesterday.
First inflation is hitting a 2 and 1/2 year high as the Fed is printing massive amounts of dollars into existence: (courtesy of Reuters)
Inflation hits 2-1/2 year high, seen peaking
WASHINGTON (Reuters) - Inflation hit the highest level in 2-1/2 years as food and energy prices moved higher, but there was little sign of a broader pick-up in inflation that would trouble the Federal Reserve.
The Labor Department said on Friday its Consumer Price Index increased 0.4 percent in April from March after rising 0.5 percent in March.
The rise, which was in line with economists' expectations, took the year-on-year inflation reading to 3.2 percent, the highest since October 2008.
The core CPI, which strips out volatile food and energy costs, rose a mild 0.2 percent from March, and the 12-month increase, at 1.3 percent, was at its highest level since February 2010.
The Federal Reserve, however, would like to see that move closer to 2 percent over time.
"This is not enough to prompt an immediate response from the Federal Reserve but they're certainly watching this," said Dana Saporta, an economist at Credit Suisse in New York.
The stiff gains in food and energy costs in recent months has squeezed consumers, who are enjoying only tepid wage gains.
The department said that when adjusted for inflation, average weekly earnings fell 0.3 percent in April after declining 0.4 percent in March.
U.S. government debt prices and stock index futures edged higher on the data.
Fed officials believe high commodity prices, which undercut economic growth in the first quarter, will not have a lasting effect on inflation, but will likely be watching the steady increase in core prices closely.
Some economists believe a sharp retreat in commodity prices in recent days signals that inflation could soon peak.
"With crude oil prices falling 10 percent in the past week and cereal prices inretreat for more than a month now, energy and food should eventually start to have a deflationary impact," said Paul Ashworth, chief U.S. Economist at CapitalEconomics in Toronto.
Gasoline prices accounted for almost half of the rise in overall consumer inflation last month, advancing 3.3 percent.
The pace of increase, however, slowed from March's 5.6 percent rise and further declines are likely after U.S. gasoline futures registered their sharpest daily drop since September 2008 on Wednesday and slipped further on Thursday.
Last month, food prices rose 0.4 percent after increasing 0.8 percent in March.
Rising costs for housing, new vehicles, used trucks and medical costs bumped up core inflation last month. Shelter costs, which account for about 40 percent of core CPI, rose 0.1 percent, rising by the same margin for a seventh straight month.
Prices for new vehicles rose 0.7 percent last month, likely reflecting tight inventories as a shortage of parts in the wake of the devastating earthquake and tsunami in Japan disrupts production. They increased by a similar margin in March.
Apparel prices rebounded 0.2 percent from a 0.5 percent fall in March.
John Williams comments on the inflation front: (courtesy Jim Sinclair commentary and John Williams)
- Fed’s Dollar Debasement Efforts Boost Three-Month CPI Inflation into 6% to 7% Range
- Official Double-Digit Consumer Inflation Possible in Third-Quarter
- With Rising Prices Dominating Sales Gains, “Core” Retail Sales Were Unchanged in April
This is another big story where the Fed balance sheet has now surpassed the 2.7 trillion dollar mark as they buy up all issued bonds. The key will be what happens when June 30 approaches.
They must continue somehow with QEIII or else all markets implode. Here is this important development:
U.S. Fed balance sheet approaches $2.729 trillion
NEW YORK, May 12 (Reuters) - The size of the U.S. Federal Reserve's balance sheet reached another record in the latest week, due to the central bank's plan to spur economic growth, Fed data released on Thursday showed.
The balance sheet -- a broad gauge of Fed lending to the financial system -- expanded to $2.729 trillion in the week ended May 11 from $2.703 trillion the previous week.
The central bank's holding of U.S. government securities grew to $1.466 trillion on Wednesday from last week's $1.442 trillion total.
The Treasuries purchases were part of the Fed's second phase of quantitative easing, dubbed QE2, a $600 billion purchase plan meant to stimulate investment and growth.
The central bank has signaled it will complete QE2 at the end of June, but will continue to reinvest proceeds from the bonds as they mature.
The Fed's ownership of mortgage bonds guaranteed by Fannie Mae
The Fed's holdings of debt issued by Fannie, Freddie and the Federal Home Loan Bank system totaled $125.12 billion, also unchanged from a week earlier.
The Fed's overnight direct loans to credit-worthy banks via its discount window averaged $4 million a day in the week ended Wednesday, compared with an average daily rate of $11 million last week.
The debt ceiling has been reached and this Monday we should see a breach of that limit.
Look at what is going on behind the scenes:
By NAFTALI BENDAVID And JANET HOOK
Ron Paul officially is now running for President of the USA. The Fed today are not happy campers:
story courtesy of the associated press and yahoo finance.com:
Denouncing Fed, Ron Paul announces presidential candidacy
Submitted by cpowell on 07:53AM ET Friday, May 13, 2011. Section: Daily Dispatches
By Jay Root Associated Press via Yahoo News Friday, May 13, 2011
Texas Rep. Ron Paul announced Friday that he will run for the GOP nomination for president in 2012, the third attempt for the man known on Capitol Hill as "Dr. No" for his enthusiasm for bashing runaway spending and government overreach.
"Time has come around to the point where the people are agreeing with much of what I've been saying for 30 years. So, I think the time is right," said the 75-year-old Paul, who first ran for president as a Libertarian in 1988.
Paul made his announcement in an interview on ABC's "Good Morning, America" from New Hampshire, where he planned his first event for his presidential campaign on Friday.
Three years ago, the former flight surgeon and outspoken critic of the Federal Reserve became an Internet sensation -- and a prodigious fundraiser -- when he made a spirited but doomed bid for the 2008 Republican presidential nomination…
In Japan, the nuclear disaster continues to plague the Japanese:
Japan's Latest Proposal To Contain Fukushima's Radioactive Fallout - A (Circus) Tent
Workers will erect a steel framework and place a giant polyester tent-like cover around the reactor building. Similar covers will be placed around units No. 3 and 4. The work is expected to be completed by the end of the year.
A series of hydrogen explosions blew off the roofs and upper walls of the three reactors in the days after the March 11 earthquake and tsunami knocked out their cooling systems, triggering the overheating of the reactors.
The explosions scattered a large amount of radioactive debris in the area around the reactors. Workers will have to clear the debris near the No. 1 unit so that cranes and other heavy equipment can approach the reactor. TEPCO said it began shifting debris from the area around the unit Friday.
The damaged buildings have come to symbolize the severity of the nuclear crisis at the plant, the worst nuclear accident since Chernobyl in 1986.
The loss of the roofs and filters above the reactors has led to the steady release of radioactive substances from the complex, prompting calls for measures to contain contamination in the surrounding areas.
I will leave you with this zero hedge article where Goldman Sachs has fired a second arrow and states that QEIII must be initiated:
Goldman Fires The Second Shot Across The QE3 Bow: "Successful Fiscal Consolidation Needs Monetary Policy Help"
I hope that you all have a grand weekend and sorry for all of those blog sites going down on Thursday.
all the best