Click on image to enlarge The Comex Daily Deli

first_img (Click on image to enlarge) The Comex Daily Delivery Report showed that 99 gold and 243 silver contracts were posted for delivery on Tuesday within the Comex-approved depositories.  In gold, it was ‘all the usual suspects’.  In silver, the two big short/issuers were JPMorgan Chase and ABN Amro with 120 and 111 contracts respectively.  The biggest long/stoppers were Canada’s own Bank of Nova Scotia with 168 contracts…and then JPMorgan Chase with 59 contracts.  The link to yesterday’s Issuers and Stoppers Report is here. There were no reported changes in GLD yesterday but, once again, the big surprise came from SLV, where an authorized participant added 1,691,162 troy ounces of silver…and is virtually the same size of deposit that was made into SLV on Thursday…almost to the ounce, so I’m wondering if this was an double entry error.  We’ll find out for sure on Monday if/when they revise their number. Over at Switzerland’s Zürcher Kantonalbank for the period ending March 21st…they reported that their gold ETF declined by a tiny 8,017 troy ounces…and their silver ETF declined by 200,557 troy ounces during the same period. The U.S. Mint had a smallish report.  They sold only 500 ounces of gold eagles…along with 1,000 one-ounce 24K gold buffaloes.  Month-to-date the mint has sold 45,500 ounces of gold eagles…10,000 one-ounce 24K gold buffaloes…and 2,438,000 silver eagles.  Based on these numbers, the silver/gold sales ratio for the month so far is a hair under 44 to 1…which is pretty amazing…and I hope you’re getting your share. Over at the Comex-approved depositories on Thursday, they reported receiving 945,922 troy ounces of silver…and shipped 369,222 troy ounces of the stuff out the door.  The link to that activity is here. The Commitment of Traders Report was a surprise.  Silver showed a big improvement in the Commercial net short position…and gold showed a big deterioration in its Commercial net short position. In silver, the Commercial net short position declined by 14.9 million ounces…and as of the Tuesday cut-off stands at 132.2 million ounces. Once the market-neutral spread trades are subtracted out of the total open interest, the Big 4 traders are short 38.8% of the entire Comex silver market on a ‘net’ basis.  The ‘5 through 8’ traders are short an additional 11.6 percentage points on a net basis.  Add them up and the Big 8 are short 50.4% of the entire Comex silver market…and that’s a minimum percentage. In gold, the Commercial net short position increased by a whopping 2.02 million ounces…blowing out to 16.24 million ounces.  But the ‘good’ news, as Ted Butler pointed out to me on the phone yesterday, was that there was no increase in the short position of the ‘Big 8’ traders…which includes the BIG 3…JPMorgan, Canada’s Bank of Nova Scotia…and HSBC USA.  All of the increase was the result of the smaller Commercial traders selling some of their long positions for a profit. On a ‘net’ basis the Big 4 traders Commercial traders are short 25.4% of the entire Comex gold market…and the ‘5 through 8’ traders are short an additional 13.7 percentage points of the gold market.  So the Big 8 are short 39.1% of the entire Comex gold market on a ‘net’ basis. In terms of troy ounces held short, the Big 8 are short 13.97 million ounces of gold…which represents 86.0% of the Commercial net short position in that metal.  In silver, the Big 8 are short 264.4 million ounces…and that amount of silver represents 200.0% of the Commercial net short position. Looking at the numbers in the previous paragraph it’s easy to see that, compared to silver, gold appears to be almost a free market…which it isn’t, as the gold market is also rigged seven ways to heaven. Here’s Nick Laird’s incomparable “Days of World Production to Cover Comex Short Positions” chart as of the March 19th cut-off. Silver opened virtually on its high of the day at the beginning of Far East trading on Friday…and was down about twenty cents to the $29 spot price just minutes before 8:30 a.m. in New York. Less than ten minutes later, the price had cratered by about 40 cents…and from there, the price pattern was almost identical to gold’s, with the only minor difference being the fact that the absolute low tick [$28.45 spot] came on a quick spike down at 12:15 p.m. Eastern time. Silver closed at $28.76 spot…down 42 cents from Thursday.  Gross volume was pretty decent at around 42,500 contracts. Despite the fact that gold got smacked pretty good earlier in the day, the gold stocks rallied into positive territory by shortly after 10:00 a.m. in New York.  Then, shortly after that, someone came along and sold the gold stocks off a percent…with the low of the day coming around 11:30 a.m. Eastern time.  From that point, the stocks rallied back slowly, and the HUI finished down 0.73%. Needless to say, the silver stocks didn’t exactly shine yesterday…as virtually all of them finished in the red.  But they did follow almost the same price path as the gold stocks.  Nick Laird’s Intraday Silver Seven Index closed down 1.17%. (Click on image to enlarge) Here’s a series of three photos that my daughter Kathleen sent me yesterday.  What is it with cats and boxes?  And it obviously doesn’t matter about the size of the cat…domestic or otherwise! (Click on image to enlarge) Here’s Nick’s Silver Seven index which shows the longer term. With the obvious exception of the first story, it’s pretty much wall-to-wall stories about Cyprus for you today….and they’re mostly presented in the order I received them yesterday.  These stories seem to change by the hour…and it will be interesting to see how this all turns out. There are no market anymore…only interventions. – Chris Powell, GATA Today’s pop ‘blast from the past’ takes me back to my last year in high school in 1966.  This ‘Go-Go’ tune got seemingly endless air time when it was first released…and it’s still a classic to this day.  The group was basically a one-hit wonder…but what a hit it was!  It’s old enough that the youtube.com video clip is in black in white.  I hope you enjoy it…and the link is here. Today’s classical selection is a tone poem by Finnish composer Jean Sibelius. The Swan of Tuonela was originally composed in 1893 as the prelude to a projected opera called The Building of the Boat. Sibelius revised it two years later as the second of the four sections of the Lemminkäinen Suite (Lemminkäis-sarja), also known as the Four Legends from the Kalevala, Op. 22, which was premiered in 1896. Sibelius revised the tone poem twice, once in 1897 and again in 1900. Here’s the Norwegian Radio Orchestra under the baton of Avi Ostrowsky. This recording is as good as it gets…as is the divine playing of the cor angl’e soloist.  The link is here. Enjoy. Well, it was another case of JPMorgan et al moving the markets because they could…not because there were any fundamental changes in supply and demand in both gold and silver.  If you take a quick peek at platinum and palladium, their chart patterns were unscathed yesterday. As I mentioned earlier this week, “da boyz” can move these market any which way they want…as there are no adults in charge anymore…either at the CFTC or in the mining companies.  Gold seems to have topped out just above the $1,600 price mark for the moment…and silver is safely back under the $29 spot price mark.  Where these markets go from here is unknown, but whatever direction we go in, will have nothing to do with real supply and demand fundamentals. That’s all I have for today.  As I mentioned at the top of this column, I’ll be out of town for a large portion of next week…and I can absolutely guarantee that the columns I post while gone, will be much shorter. I await the Sunday night opening in New York with some degree of interest. As I mentioned earlier this week, “da boyz” can move these market any which way they want NOTE:  I will be on the road most of next week…and will be writing my column on my laptop, which is an ordeal that I put myself through as few times a year as possible.  They will also be as short as I can make them…and the ‘Critical Reads’ section will shrink alarmingly during this time period. The gold price didn’t do a lot for most of the trading day in the Far East on Friday, but starting around 3:00 p.m. Hong Kong time, the price developed a negative bias…and shortly before 1:00 p.m. in London, the decline began more severe.  About forty minutes later…shortly after 8:30 a.m. in New York, it had hit its low tick of the day, which Kitco reported as $1,602.80 spot. The subsequent rally lasted until 10:15…and the price sagged a bit from there until shortly before 2:00 p.m. Eastern.  The gold price gained a couple of dollars from there going into the 5:15 p.m. electronic close. In actual fact, it was all a tempest in a teapot, as volume was very light once again yesterday…around 84,000 contracts net, the same as Thursday’s volume.  The gold price closed at $1,609.20 spot…down $5.60 on the day. I couldn’t help but notice that Friday’s silver price path was almost a mirror image of the Thursday price pattern, which is hardly a coincidence I would think. The dollar index opened at 82.86 in early Far East trading on their Friday morning…and more or less traded flat until shortly after 8:30 a.m. in London.  From there it rolled over a hair…and headed south.  The absolute low tick came moments before noon in New York…and then didn’t do much after that…closing the day at 82.37…down 49 basis points from the Thursday close. Once again there was absolutely no correlation between what the dollar index was doing…and what was going on in the Comex paper markets in gold and silver. Sponsor Advertisement 2013 – A Breakout Year for Energy? The energy sector is a volatile market, but it can provide enormous gains to investors who know what they’re doing – and now is the time to get into the two most promising energy trends for 2013 and beyond. Top energy analyst Marin Katusa tells you what you should be bullish and bearish on this year in his special report, The 2013 Energy Forecast. Read it here for free.last_img

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