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Harvy Organ’s: The Daily Gold & Silver Report


Good evening Ladies and Gentlemen:

Today’s commentary will be rather on the short side.

Gold closed today down $46.50 courtesy of a massive raid by head banker JPMorgan.  The comex closing price was $1809.80.  The silver price followed suit falling by $1.41 to $40.16.  Today we woke up with all of Europe’s bourses in the red:

German Dax:  down 117.60 or 2.27%
London FTSE: down 74.17  or 2.70%
Paris CAC:      down 119.78  or 4.03%
Portugal:          down 253.00  or 4.19%
Belgium           down 64.81 or 3.06%

the Dow which was down most of the day over 100 points did another Hail Mary and finished up 69 points which is quite laughable.

The European banks are in severe trouble.  Here are some of the percentage losses of the major banks in Europe:

Deutsche Bank( Germany’s largest bank) down 8% today.
Societe Generale  (the second biggest bank in France) down 11%
BNParibas (France’s largest bank) down 11%
Credit Agriole: (France’s third largest bank)  down 12%
Nation Bank of Greece down 7%

The Greek 1 yr bonds are now trading at a one yr yield of 111%.

Europe is burning to the ground!!

courtesy (zero hedge)

Greek 1 Year Bond Yield: 111.7%

Tyler Durden's picture

Submitted by Tyler Durden on 09/12/2011 07:42 -0400

In the chart below, for all intents and purposes, green means red. Also, the probability of Greek default according to at least one data service is a little over 100%.

end

For those of you who were wondering why the Dow went from minus 100 to positive 69 in a few minutes.

Here is the reason courtesy of zero hedge:  (China bailing out Europe???..give me a break!!)

Market Soars Following Latest “China Bails Out Europe” Rumor: Expected Rumor Half Life – 15 Minutes

Tyler Durden's picture

Submitted by Tyler Durden on 09/12/2011 14:48 -0400

Update 2: Yes, the FT story that cites unidentified Italian officials, does exist. Link is here
Update: “Further negotiations are likely to take place soon, FT says, citing unidentified Italian officials“. Ok seriously, enough with this bullshit, please.
How many times can the idiotic market keep falling for the same old rumor over and over and over again? Yes, for those wondering what caused this epic surge in stocks on massive volume look no further than the following FT headline which is precisely the same as what we have seen every single other“Chinese white knight” time, namely that Italy is in talks with China Investment to buy bonds, assets (it also makes it perfectly clear who the real “IMF” is). That said, this is at least the 4th time that China has “bailed out” Europe in 2011. We give this latest rumor a 15 minute half life.
Idiot robot and momo chaser update, 14 minutes later:

5

Let head over to the comex and assess the damage today.

The pundits were talking about liquidation of all assets as markets tumbled.  They even mentioned that there was gold and silver liquidation.  The problem here is that is just not true.

The total gold open interest rose by 3960 contracts to 518,158 from 514,198.  The front options expiry month continues to baffle everyone.  The OI for September actually rose again from 221 to 256 for a gain of
35 contracts despite  32 deliveries on Friday.  For the 5th straight day, the bankers provided physical metal out of comex inventory to investors who badly needed the metal.  This is the real story of the day..not the big downdraft in the gold price.  I have highlighted this to the CME/CFTC officials. The Oct open interest which is 3 weeks away hardly budged falling by a tiny 200 contracts to 32,808.  The big December contract OI
rose by 6000 contracts to 346,032 and no doubt that this will be the ultimate battleground for supremacy of gold metal.  The estimated volume at the gold comex today was quite high at 210,290 considering that we had tiny switches.  The confirmed volume on Friday was huge at 290,539 as the bankers are pulling no punches.

The total silver comex OI continues to trade in a narrow band of 113,000 contracts.  Today the OI rose by 170 contracts to 113,383.  These are all in strong hands and I doubt if any silver leaves will fall.  They can huff and they can puff but no silver leaves  will fall from the silver tree.  The front delivery month of September saw its OI fall from 615 to 530 for a loss of 85 contracts.  We had only 1 delivery on Friday so we lost 84 contracts to cash settlements.
It seems that all settlements are done by cash and not  actual metal.  The big December contract saw its OI
remain relatively constant at 77,220 contracts.  This next data point is totally amazing:  the estimated volume today was 39,067.  The confirmed volume on Friday is 43,288.  It seems many are just abandoning the silver comex due to its high margins.  It thus is becoming a truly physical bourse.

Inventory Movements and Delivery Notices for Gold: Sept 12.2011:

Gold

Ounces
Withdrawals from Dealers Inventory in oz
nil
Withdrawals fromCustomer Inventory in oz
32 (Manfra)
Deposits to the Dealer Inventory in oz
nil
Deposits to the Customer Inventory, in oz
nil
No of oz served (contracts) today
5600 (56)
No of oz to be served (notices)
20,000  (200)
Total monthly oz gold served (contracts) so far this month
241,900 (2419)
Total accumulative withdrawal of gold from the Dealers inventory this month
98 oz
Total accumulative withdrawal of gold from the Customer inventory this month
43,233 oz

The gold vaults had very little activity today.
Again the dealer had no deposit of gold and no withdrawal of gold.
The customer only had a very tiny withdrawal of 32 oz from Manfra.
We had a very tiny adjustment of two ounces added to the dealer HSBC, and one oz removed from the customer at an HSBC vault.  The registered gold inventory rests tonight at:  1.851 million oz.

The CME notified us that today we had 56 notices or 5600 oz served upon our longs today.
The total number of gold oz served thus far total  2419 or 241900 oz of gold.
To obtain what is left to be served upon, I take the OI standing (256) and subtract out today’s deliveries (56) which leaves me with exactly 200 contracts left to be served upon or 20,000 oz.

Thus the total number of gold oz standing in this non delivery month is as follows:

241,900 oz (served)  +  20,000 (oz to be served)  =   261,900 oz or  8.146 tonnes.
On Friday we had 255,200 oz standing or 7.937 tonnes.
We have been advancing for the past 5 days despite this being on an options expiry month.
There are many entities out there wishing physical metal and they are raiding the comex.

And now for silver
First the chart:
Silver
Ounces
Withdrawals from Dealers Inventory nil
Withdrawals fromCustomer Inventory 119,646(Delaware, HSBC, Scotia))
Deposits to theDealer Inventory nil
Deposits to the Customer Inventory 1,174,358 (Brinks, Scotia)
No of oz served (contracts) 5,000 (1)
No of oz to be served (notices) 2,645,000 (529)
Total monthly oz silver served (contracts) 5,050,000 (1010)
Total accumulative withdrawal of silver from the Dealersinventory this month 34,963
Total accumulative withdrawal of silver from the Customerinventory this month 4,857,008

Let’s commence with the silver activity.

Again the dealer had no deposit of silver and no withdrawals.  The entire action was with the customer.

The customer had the following deposit of silver into the various vaults;

1. 574,200 oz of silver entered Brinks
2. 600,158 oz entered Scotia.

total deposit:  1,174,358 oz

There were 3 withdrawals of silver from the various vaults;

1.  1064 oz from Delaware
2. 15,154 oz from HSBC
3. 103,428 oz from Scotia.

total withdrawal:  119,646 oz
there was an adjustment of 1 oz out of the customer.
The registered silver inventory rests tonight at: 32.048 million oz
The total of all silver (eligible and registered) totals 104.08 million oz.

The CME officials announced today another biggy delivery:  ONE CONTRACT only.
And this is a delivery month!!

The one notice of a delivery equates to 5000 oz.  The total number of notices filed so far this month total
1010 contracts or 5,050,000 contracts.  To obtain what is left to be served upon, I take the OI standing
(530 ) and subtract out today’s deliveries (1) which leaves me with 529 notices or 2,645,000 oz left to be served upon.

Thus the total number of silver oz standing in this delivery month is as follows;

5,505,000 (oz served) +  2,645,000 (oz to be served) =  7,695,000 oz.
we had a reading on Friday of 8,115,000 so we lost again considerable silver to cash settlements.
And the world is totally oblivious to this fraud.  All contracts must be settled in real silver and real gold.

end

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