Someone very real and VERY BIG is standing for gold. This “someone” would not be bribed to go away last month and does not look like they will go way this month! Who is this long who all of a sudden cannot be bribed to stand down? Looking specifically at silver, we have a true potential atomic bomb in the works for July…
For more than three years we have watched the COMEX very closely. The initial clue to begin watching were the waterfall events where the amounts of paper gold and silver sold simply dwarfed what was being mined. I have said many times after the smackdowns, “first, no one has this much (gold or silver), second, no trader would ever sell in this fashion and destroy the price he will receive for the sale. Clearly the sales were done to affect price downward”. Each time I have written on this topic and suggested it would ultimately end with a delivery default I have been trolled. It looks very much like we will soon find out a default of delivery is not only possible but highly probable.
Starting with gold, last month (May) saw 221,000 ounces stand for delivery. This amount actually grew during the month which is highly unusual as the amount standing has ALWAYS dropped during delivery periods, this is the first time to my knowledge that the amount standing actually increased.
For comparison, May 2015 delivered only 2,500 ounces. Looking back at June of 2015, the amount standing on first notice day was 509,000 ounces. The final amount delivered was 295,000. As I have written and questioned before, who would fully fund their account 100% to take delivery …and then “go away”? The answer of course is someone willing to accept a “premium” as a bribe to not take delivery.
This June as you know does look to be quite interesting. The initial amount standing was 49.119 tons or over 1.5 million ounces. The amount dropped on day two by about 4 tons but has since gained back nearly all of it to stand at 49.11 tons. (If I am not mistaken, this month is the largest month of gold contracts ever standing for delivery.) Over 40 tons have already been served so we know these longs could not be persuaded to “go away”. We have seen no evidence of delivery for March, April or May. If we add these together with June, we have 65.813 tons standing with only 51.12 tons of registered gold.
Something very interesting took place in the COMEX Registered silver inventories last week. There were two very large transfers of silver from the Registered to the Eligible category. What makes these two large withdrawals so interesting is that the Registered silver inventories are now at a record low.
The first large transfer of silver was reported on June 1st, in which 2.5 million oz (Moz) were taken out of the CNT Depository and another 410,000 oz from HSBC. Nearly 3 Moz of silver were transferred out of the Registered inventories in one day:
What is it about former central bankers who first destroy the fiat system with their monetarist policies, only to go into retirement, and preach the virtues of the one compound they spend their entire professional careers trying to destroy: gold. To be sure, when it comes to polar reversals of opinion, nobody comes even remotely close to Alan Greenspan: the former Fed chairman who is not only instrumental in launching the “Great Moderation”, which unleashed the current unprecedented global debt wave which will lead to unprecedented disaster sooner or later, has in recent years become one of gold’s biggest advocates as demonstrated most recently in “Greenspan’s Stunning Admission: “Gold Is Currency; No Fiat Currency, Including the Dollar, Can Match It.”
Now it’s the turn of his former colleague at the Bank of England, Mervyn King, who in an interview with the WGC’s Gold Investor monthly, pours cold water over Bernanke’s “explanation” that gold is merely a tradition, and says the following:
“I am very struck by the fact that over many many years, central banks, governments and individuals have always, despite the protestations of economists, held some gold in their portfolio. Obviously, there is no high running return, but when unexpected things happen, particularly when governments rise and fall, then gold is a means of payment that everyone is always prepared to accept. And I think that’s why even central banks have always had a role in their portfolios for gold,” he adds.”
Shares of gold miners have more than doubled this year, crushing the 20 per cent gain in the precious metal and prompting investors such as billionaire George Soros to increase their bets on the sector.
Soros Fund Management bought a 1.7 per cent stake in miner Barrick Gold in the first quarter, worth $263.7m, according to a filing on Monday. Shares in the Canadian-listed company have surged 139 per cent so far in 2016.
As gold does not pay a yield like bonds or offer a divided like some equities, the precious metal has benefited from the current low and negative interest rate environment. A weaker tone for the US dollar after peaking in late January has also spurred a solid rebound in commodity prices.
Gold miners have also spent the last four years writing down billions of dollars in assets and cutting costs to reduce their debts after gold prices tumbled from their 2011 peak. Barrick Gold has cut its debt by nearly a third over the past 15 months.
“They’ve gone through a bad few years (the gold mining companies) but they seem to come out the other side,” said David Govett, head of precious metals at broker Marex Spectron. “They’re easier to trade and you don’t get the ridiculous fluctuations we see in the commodity price sometimes.”
The World Gold Council today releases its Gold Demand Trends Q1 2016 report [http://www.gold.org/supply-and-demand/gold-demand-trends], which is the leading industry resource for data and opinion on global gold demand. Our quarterly publication examines demand trends by sector as well as geography and this report focuses on the patterns of demand seen in the first three months of 2016.
The key findings from Q1 are as follows:
· Overall demand for Q1 2016 increased by 21% to 1,290t, up from 1,070t in Q1 2015.
· Total consumer demand was 736t down 13% compared to 849t in Q1 2015.
· Global investment demand was 618t, up 122% from 278t in the same period last year.
· Global jewellery demand fell 19% to 482t versus 597t in the first quarter of 2015.
· Central bank demand dipped slightly to 109t in Q1 2016, compared to 112t in the same period last year.
· Demand in the technology sector fell 3% to 81t in Q1 2016.
· Total supply was up 5% to 1,135t in Q1 2016, from 1,081t in the first quarter of 2015. Mine supply was up 8% to 774t.
India’s gold imports could hit a record high this year amid widespread smuggling to sidestep government levies on overseas shipments, Australia and New Zealand Bank, Asia’s biggest shipper of physical gold, said on Wednesday.
The forecast by the bank’s head of precious metals, John Levin, runs counter to tallies that show gold imports in decline in the world’s second-biggest gold market after China.
Mr Levin said he expects 15 per cent of India’s gold this year to be “smuggled in” or arrive via “other unofficial channels” to beat a 10 per cent levy imposed by the government.
Mr Levin also said more semi-refined gold, known as gold dore, was being imported from overseas mining companies because of a lower government levy. The import duty on gold dore is 8.5 per cent.
“You could see a record amount of gold going into India this year,” Mr Levin said, “A lot through unofficial channels and a lot of it going in as semi-refined gold.”
A new electronic exchange for trading diamonds opened last week in Singapore, claiming to be the first of its kind to allow physical trading of the gems on an electronic platform. The hope is that the new exchange will be a game-changer that will bring in new traders to the traditionally closed diamond industry, and boost demand for the precious stone which is facing historically low prices amid plunging demand from big spenders such as the Chinese.
Backed by Singapore’s state investor Temasek Holdings and investor Jim Rogers among others, Singapore Diamond Investment Exchange (SDiX) utilizes an electronic platform designed by engineers who previously created systems for major stock exchanges including the Singapore Exchange. The platform matches buyers and sellers at a speed of more than 500,000 transactions per second. Live prices will be available on the exchange’s website. The trading hours will be between 2.30 p.m. and 6.30 p.m. Singapore and Hong Kong time.
The diamond market has traditionally been closed, with prices based on bilateral trading between buyers and sellers within the industry. “No marketplace existed for people who were not members of the diamond trade,” said Alain Vandenborre, chairman and founder of SDiX, during an interview with the Nikkei Asian Review prior to the opening of the exchange. Vandenborre hopes to break this tradition with the new exchange.
“The important thing is that the baskets are standardized and fungible. It’s like a gold bar; it’s exchangeable for any other gold bar of the same category,” Vandenborre said.
The desperation is obvious, palpable, incredible, fascinating, and unmistakable. History is being made, as the last ditch is overrun.The banker cabal wishes to defend an indefensible $1300 gold price and to defend an indefensible $18 silver price. The Gold price will find its true value and price over $10,000 per ounce. The Silver price will find its true value and price over $300 per ounce. Silver will be part of the new asset backed global currency system. NEXT COMES A GLOBAL LEHMAN MOMENT WITH BANK FAILURES AND A THREAT TO THE ENTIRE WESTERN BANKING SYSTEM…