Good morning Ladies and Gentlemen:
Before commencing, I would like to introduce to you our newest arrival in the banking morgue:
Heritage Bank, Snohomish Washington. All assets were assumed by Columbia State Bank.
Gold finished the comex session at $1536.50 for a gain of $13.50 for the day. Silver behaved as if still under the influence of the bankers, rising by only 34 cents to $37.86. Silver was rebuffed continually at the "magical" 38.00 dollar level. Gold was trading as if the bankers have lost control.
There was considerable activity at the comex and a lot of mysteries to solve which I am going to ask you, as master sleuths to ascertain answers.
Let us proceed with the gold comex first:
The total gold comex open interest surprised all of us with a massive 19,395 loss of open interest. The total OI fell from 513,918 to 494,494. The official response is that many long specs refused to roll and took profits coupled with our bankers covering their shorts. This is hard to fathom given that gold demand is at record levels throughout the globe as many nations seek out the metal due to the global financial turbulence. Throughout this commentary I will give you the data (tools) to come up with what is going on inside the comex walls. The front options expiry month is now off the board. We had an open interest of 7 remaining on Thursday with 1 delivery notice to be subtracted or 6 notices to be served upon.
The big front month of June saw its OI fall from 94,016 to 34,159. This number is basis Thursday night so I will still need to see Tuesday's open interest in order to determine how many gold oz are standing for the month. I will give you the intent notices to be filed later in my commentary. The next delivery month of August saw its OI rise from 258,706 to 297,903 for a gain of 39,197 contracts. The estimated volume at the gold comex on Friday was 195,027 which is kind of light considering the switches. The confirmed volume on Thursday was 328,564. Gold rose on both Thursday and Friday.
And now for silver:
The total comex silver OI fell by 2021 contracts at a much slower contraction that its older and wiser cousin, gold. The front month of May is off the board. If you will recall, the open interest on the May month was 159 and with 13 delivery notices to be subtracted, we were expecting 146 notices to be served.
The front delivery month of July saw its OI fall from 63,093 to 60,997. The estimated volume on Friday, at the silver comex was quite subdued as of late, at 46,976. The confirmed volume for Thursday was better at 83,095.
Now for the fireworks:
Let us begin with gold. The pace at the gold comex yesterday was quite fierce.
As you can see from the inventory movements, gold saw another of those perfectly round gold deposits into a customer's vault at Brinks. This time the deposit was 3800 oz of gold. The dealer did not have any deposit of gold. However it did have a very sizeable 29,397 oz from our good friends over at the Brink's vault.
The customer had some unbelievable transactions yesterday:
1. customer number l: 9194 oz withdrawal from Scotia
2. customer number 2: 236,969 oz withdrawal from HSBC
3. customer number 3: 64 of withdrawal from Manfra
total withdrawal by customer: 246,227 oz.
If you are keeping score, the net withdrawal by the customer reads:
242,427 oz. That was quite a withdrawal yesterday by the customer.
As I mentioned to you above, we were expecting 6 delivery notices to be sent down for the final day. We got 29 notices for 2900 oz of gold as some of the bankers needed gold in a hurry. Thus the final number of gold notices for the month of May turned out to be 569 for 56900 oz of gold. There are no more notices to be filed for May. We had a tiny adjustment of 4102 oz of gold leaving the dealer paying the customer back for a prior liability commitment.
Thus the total oz of gold that stood for gold and received gold notices for May total 56900 oz of gold or 1.769 tonnes of gold. On Thursday we had 54,600 oz so we gained 2,300 oz of gold officially standing.
Late last night we received our first delivery intent for the June month for gold.
A total of 1,950 notices were served upon our longs for 195,000 oz. We still need the open interest to get a feel as to how many are initially standing.
And now for silver:
Dan Norcini stated I believe that the silver raid commencing on the first of May was a drive by shooting. I would like to state that the drive by shooting was accompanied by the criminal banks staying at the scene of the crime. The bankers were defending the 38 dollar level probably due to the huge number of short contracts that they supplied in the OTC market which we do not see.
Here is the official closing accounts for silver for the Month of May
|Ounces of Silver in Trust||319,621,250.900|
|Tonnes of Silver in Trust||9,941.33|
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 24, 2011
Silver COT Report - Futures
non reportable positions
Change from the pre