JPMorgan Adds Another 2 Million Ounces of Silver to Its Stash

14 October 2016 — Friday


Except for a smallish rally between 9 and 11 a.m. China Standard time on their Thursday morning, there’s not much to talk about as far as price action in gold is concerned.  There was a bit of a bump up at the afternoon gold fix, plus another shortly after the COMEX closed — but gold traded within a ten dollar price range again yesterday.  Nothing much to see here.

For the third day in a row, the high and low ticks aren’t worth looking up.

Gold finished the Thursday session at $1,257.80 spot, up $2.90 from Wednesday’s close.  Net volume was a little busier than it was on Wednesday at 125,000 contracts.161014gold

Silver’s rally in Far East trading lasting until just a few minutes after 12 o’clock noon in Shanghai — and from there it was a long, quiet decline to its low tick of the day, which came minutes after 12 o’clock noon in New York.  It rallied back to a hair above unchanged by 3 p.m. EDT in the thinly-traded after-hours market — and that’s where it closed.

For the second day in a row the silver price traded within a two bit price range, so I shan’t bother with the high and low ticks in this precious metal, either.

Silver closed in New York yesterday afternoon at $17.465 spot, up 1.5 cents on the day.  Net volume was a bit higher than I like to see at a hair over 40,000 contracts.161014silver

Platinum had a tiny rally as well in the early going in Far East trading.  But beginning around 2 p.m. China Standard Time, the price began to quietly chop lower, with the low tick shortly before 1 p.m. in New York.  Then, like silver, it rallied a bit from until 3 p.m. EDT — and then traded flat into the close.  Platinum finished the Thursday session in New York at $934 spot, down another 6 bucks.  At its low tick, it was down 12 dollars the ounce.161014platinum

It was almost the same price pattern for palladium as well, as ‘da boyz — like in platinum — set a new low tick for this move down, as they closed it lower by another 8 dollars at $638 spot.  It was down 12 bucks an ounce at its low on Thursday as well.161014palladium

The dollar index closed very late on Wednesday afternoon in New York at 97.995 — and made it up to the 98.12 mark or so by 9 a.m. China Standard Time on their Thursday morning.  By 10:30 a.m. CST it had dropped to the 97.76 mark before retesting its previous high shortly after 9 a.m. in London.  It was all down hill from there — and at a goodly pace.  The index stopped falling at 3 p.m. EDT in New York — and chopped quietly sideways into the close from there.  The index finished the Thursday session at 97.55 — which was down 45 basis points from Wednesday.161014intraday-gif

And here’s the 6-month U.S. dollar index chart — and it will be interesting to watch its movements over the next few days to see whether it holds and rallies some more from here, or whether we’ve seen an interim top.  But as I keep pointing out, with all the indexes out there being activity managed, it’s still a chart that I post mostly for entertainment purposes.  But there’s no question that the decline in the British pound has certainly has had an impact on this index lately.161014-6-month-usd

The gold shares opened unchanged — and were in the black to stay by the London p.m. gold fix.  After that they didn’t do a lot until gold’s little rally that began shortly before 2 p.m. EDT in the thinly-traded after-hours market.  The rally added another 3 percentage points to Thursday’s gains, but once the gold price got capped, the day traders rushed to take profits — and by the time the equity markets closed at 4:00 p.m., almost the entire gains from that rally had evaporated.  The HUI closed higher by 1.69 percent.161014hui

It was virtually the same chart pattern in silver — and by the time the day was done, Nick Laird’s Intraday Silver Sentiment Index ended up only 0.61 percent.  Click to enlarge if necessary.161014silver-7

The CME Daily Delivery Report showed that zero gold and 2 silver contracts were posted for delivery within the COMEX-approved depositories on Monday.

The CME Preliminary Report for the Thursday trading session showed that gold open interest in October climbed by a very decent 177 contracts, leaving 369 still open.  Wednesday’s Daily Delivery Report showed that 41 gold contracts were actually posted for delivery today, so that means that 41+177=218 gold contracts were added to the October delivery month.  Silver o.i. also rose, but only by 5 contracts, leaving 121 still around.  Wednesday’s Daily Delivery Report showed that no silver contracts were posted for delivery today, so obviously the net change for the day was an increase of 5 contracts.

Much to my surprise, there was another deposit in GLD yesterday.  This time an authorized participant added 85,838 troy ounces.  And as of 7:57 p.m. EDT yesterday evening, there were no reported changes in SLV.

There was another sales report from the U.S. Mint yesterday.  They sold 2,500 troy ounces of gold eagles, plus 500 one-ounce 24K gold buffaloes.  They didn’t sell any more silver eagles.

There was a decent amount of gold received over at the COMEX-approved depositories on Wednesday.  Brink’s, Inc. picked up 24 kilobars — and Canada’s Scotiabank picked up 1,000 of them — for a total of 32,921.620 troy ounces.  There were 5 kilobars shipped out of Manfra, Tordella & Brookes, Inc. — plus another 60 out of Scotiabank for a total of 2,089.750 troy ounces.  All of the kilobars were of the U.K./U.S. 32.150 troy ounce variety.  The link to that activity is here.

It was a big day in silver — and JPMorgan was at centre stage, as they took in 2,009,412 troy ounces — and that takes their silver inventory to a new record high of 78.92 million troy ounces.  There was also a lot of silver shipped out as well…1,113,591 troy ounces to be exact.  There was 600,569 troy ounces shipped out of Canada’s Scotiabank — and the rest came out of Brink’s, Inc.  The link to that action is here.

I thought I’d toss in Nick’s silver chart for the JPMorgan depository, updated with the above data.  I’ll point out once again that they opened this depository only days before the May 1, 2011 drive-by shooting, which they were the ringleader of — and as you can tell, silver have been pouring into that depository ever since.  Currently, JPMorgan owns a bit over 45 percent of all the silver held in the COMEX-approved depositories in New York — and that certainly doesn’t include all the silver they have in their London vault, or elsewhere.161014jpm-silver  Click to enlarge.

It wasn’t exactly quiet at the COMEX-approved gold kilobar depositories in Hong Kong on their Wednesday, as they reported receiving 13,152 of them — and shipped out 803.  All of this action was at Brink’s, Inc. as per usual — and the link to that, in troy ounces, is here.

I have the usual number of stories for a weekday column and, as always, the final edit is up to you.


Wells Fargo CEO Stumpf Quits in Fallout From Fake Accounts

John Stumpf, who led Wells Fargo & Co. through the financial crisis and built it into the world’s most valuable bank, stepped down as chief executive officer and chairman, bowing to public outcry over legions of accounts opened by his employees for customers who didn’t request them.

Stumpf, 63, is retiring from both posts effective immediately, the bank said Wednesday in a statement. Tim Sloan, 56, the chief operating officer long viewed as his most likely successor, will become CEO. Lead director Stephen Sanger will become the board’s non-executive chairman. Elizabeth Duke, a former Federal Reserve Board governor, will be vice chair.

This was John Stumpf deciding that the best thing for Wells Fargo to move forward was for him to retire — even though that was a very difficult decision,” Sloan said in an interview. “He wasn’t fired” or even “gently pushed” by the board.

Stumpf leaves Wells Fargo and its 268,000 employees with a damaged reputation. It has refunded $2.6 million to affected customers and has said it’s ending sales incentives that have been blamed for the abuses. The stock fell as much as 12 percent after the misdeeds became public, and its subsequent rebound hasn’t been enough for San Francisco-based Wells Fargo to retake the top spot in market value among U.S. banks, which it relinquished to JPMorgan Chase & Co.

The guy really belongs in jail.  This Bloomberg story appeared on their Internet site at 3:09 p.m. Denver time on Wednesday afternoon — and it comes courtesy of Brad Robertson via Zero Hedge.  Another link to it is here.

Don’t Blow Your Retirement Nest Egg By Listening To Warren Buffett

Mr. Buffett is giving seniors and savers bad advice.

Diversification is protection against ignorance. It makes little sense if you know what you are doing.” – Warren Buffett.

The Buffet theory acknowledges risk is mitigated by sector gains offsetting sector losses; however the opposite is also true – sector losses offset sector gains and reduces returns. His is willing to take on additional risk attempting to maximize returns. Forget about it!

Despite Mr. Buffett’s success, he needs to walk a few miles in the moccasins of average baby boomers and retirees. Most had the rug yanked out from under them in 2008 when the stock market crashed and the banks were bailed out. We’ve now had 8 years of Federal Reserve Zero Interest Rate Policy (ZIRP) and no end in sight.

The Buffett theory is based on maximizing your gains in an arena you are comfortable. It’s easy to say if you have a few billion to fall back on if you make a bad investment.

This commentary by Dennis Miller put in an appearance on his website yesterday — and another link to it is here.

FBI, DOJ roiled by Comey, Lynch decision to let Clinton slide by on e-mails, says insider

The decision to let Hillary Clinton off the hook for mishandling classified information has roiled the FBI and Department of Justice, with one person closely involved in the year-long probe telling that career agents and attorneys on the case unanimously believed the Democratic presidential nominee should have been charged.

The source, who spoke to on the condition of anonymity, said FBI Director James Comey’s dramatic July 5 announcement that he would not recommend to the Attorney General’s office that the former secretary of state be charged left members of the investigative team dismayed and disgusted. More than 100 FBI agents and analysts worked around the clock with six attorneys from the DOJ’s National Security Division, Counter Espionage Section, to investigate the case.

No trial level attorney agreed, no agent working the case agreed, with the decision not to prosecute — it was a top-down decision,” said the source, whose identity and role in the case has been verified by

A high-ranking FBI official told Fox News that while it might not have been a unanimous decision, “It was unanimous that we all wanted her [Clinton’s] security clearance yanked.

She, along with her husband, are two more that should be in jail.  This long article showed up on the Internet site yesterday sometime — and it’s another article courtesy of Brad Robertson via Zero Hedge.  Another link to it is here.

Standard & Poor’s warns on U.K. reserve currency status as Brexit hardens — Ambrose Evans-Pritchard

Britain is in danger of misreading the political landscape in Europe and faces the possible loss of its reserve currency status if it fails to secure full access to the European single market, Standard & Poor’s has warned.

The powerful U.S. rating agency said the British government is treading into hazardous waters in negotiations with the E.U. and is risks serious damage to economy’s future growth trajectory, with long-term implications for the debt profile and the country’s credit-worthiness.

S&P  fears that loss of unfettered access to the single market would have incalculable consequences for business, yet the Government so far appears almost insouciant about this.

There seems to be this view that ‘we’re a big important economy, the Europeans export a lot to us, so they have got to give us what we want’, but is that really true?” said Ravi Bhatia, the director of sovereign ratings in charge of Britain.

This AE-P offering was posted on the Internet site at 7:25 p.m. BST on their Thursday evening, which was 2:25 p.m. in New York — EDT plus 5 hours.  It’s worth reading — and I thank Swedish subscriber Patrick Ekdahl for sharing it with us.  Another link to it is here.

European Council President Promises Salt and Vinegar for Everyone

E.U. fools would rather everyone, themselves included,  eat salt and drink vinegar than negotiate a reasonable Brexit agreement with the U.K.

European Council chief, Donald Tusk is the fool of the day.

Please consider this Financial Times story:  ‘Hard Brexit’ or No Brexit, Warns Donald Tusk.

“Speaking at a conference in Brussels, Donald Tusk dashed the hopes of those hoping Britain could remain inside the E.U.’s single market or negotiate some special form of association. The tenor of the U.K.’s referendum campaign had been to “radically loosen relations with the E.U., something that goes by the name of ‘hard Brexit’,” he said.

In my opinion, the only real alternative to a hard Brexit is no Brexit,” Mr Tusk said. “Even if today hardly anyone believes in such a possibility.

In remarks that are likely to infuriate prominent Brexiters in the British government, Mr Tusk set out a bleak picture for the negotiations to come between the U.K. and the rest of the E.U., saying that there would be no winners, only losers. “This scenario will in the first instance be painful for Britons,” he said.”

This commentary appeared on the Internet site at 7:21 a.m. EDT yesterday morning — and I thank Roy Stephens for finding it for us.  Another link to this news item is here.

Scandinavian governments sell initial 23 million shares in SAS – because there’s ‘no good reason‘ to own an airline

In accordance with previous expressions of intent, the Swedish and Norwegian governments have sold a total of 23 million of their shares in SAS. Following the news, the stock has fallen almost 7{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} on Thursday. They originally planned to sell only 19 million, but increased the amount in response to investor interest, The Wall Street Journal reports.

The shares correspond to a 6.9{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} stake in the company. After the sale the Swedish and Norwegian governments still own 17.1{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} and 11.5{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} of SAS respectively. With the Danish government’s stake of 14.2{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} that means SAS is now only 42.8{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} state-owned.

There are no good reasons why the state should own an airline,” Monica Maeland, Norway’s Minister of Trade and Industry, explained, WSJ reports.

According to Maeland, SAS will benefit from increased private ownership, and Mikael Damberg, the Swedish Minister of Enterprise and Innovation, agrees.

Mikael Damberg also expressed that both the Swedish and Norwegian governments can be expected to further reduce their stakes in the future.

This story appeared on the Internet site late on Thursday afternoon Europe time on Thursday — and it’s another contribution from Patrik Ekdahl.  Another link to it is here.

Royal Air Force ready to shoot down Russian aircraft over Syria

RAF Tornados bombing Isis targets in Iraq are to be armed with air-to-air missiles to protect them from attack by Russian aircraft — as a senior cabinet minister warned that Britain was prepared to shoot down Vladimir Putin’s jets.

Combat aircraft involved in Operation Shader over Iraq will be fitted with Asraam heat-seeking missiles, which can destroy any military aircraft flying today.

A senior defence source said: “Up till now RAF Tornados have been equipped with 500lb satellite-guided bombs — there has been no or little air-to-air threat. But in the last week the situation has changed. We need to respond accordingly.

The first thing a British pilot will do is to try to avoid a situation where an air-to-air attack is likely to occur — you avoid an area if there is Russian activity,” an unidentified source from the U.K.’s Permanent Joint Headquarters (PJHQ) told the Sunday Times. “But if a pilot is fired on or believes he is about to be fired on, he can defend himself. We now have a situation where a single pilot, irrespective of nationality, can have a strategic impact on future events.

Where things get tricky is the qualifier “if he believes he is about to be fired on” – since this makes open engagement a function of threat evaluation in real time during stressed conditions, the likelihood of an escalation that could result in two warplanes shooting at each other, just jumped significantly.

The headline to this story is from Internet site — as are the first three paragraphs posted above.  The last two are from the Zero Hedge story that sprang from it.  I thank Richard Saler for sending it our way — and another link to this ZH/Sunday Times article is here.

U.S. Strikes Yemeni Rebel Sites After Warships Are Targeted

The U.S. military directly entered Yemen’s war for the first time, launching three strikes on areas controlled by Yemen’s Houthi rebels after an American navy ship was targeted in two failed missile attacks this week.

The U.S. strikes from a guided-missile destroyer hit radar sites involved in “recent missile launches threatening USS Mason and other vessels” operating in international waters in the Red Sea and the Bab al-Mandeb strait, Pentagon spokesman Peter Cook said in a statement. The Houthis denied they were behind the attacks on the ships, according to a news agency under their control.

White House spokesman Eric Schultz called the military’s strikes “purely a self-defense measure” and not an engagement in Yemen’s “sectarian situation.” But if attacked again, the U.S. is “prepared to respond if necessary,” he said.

The conflict in Yemen is widely seen as a proxy confrontation between Middle East rivals Saudi Arabia and Iran. The conflict has so far pitted Shiite rebels and their allies against a government backed by a Saudi-led military coalition. Iran denies that its support for the Houthis amounts to direct military assistance. The U.S. said this month it was reviewing its assistance to the Saudi coalition after an airstrike killed more than 140 people gathered at a funeral hall in the Yemeni capital, Sana’a.

This is another war that the Deep State in the U.S. wanted to get involved in — and now they are.  This Bloomberg story put in an appearance on their Internet site at 10:37 p.m. Denver time on Wednesday evening — and was updated about 15 hours later.  I thank Doug Clark for bringing it to our attention.  Another link to it is here.

Copper Crashes to One Month Low

Selling pressure began during Asian trading following disappointing China trade data but as U.S. markets started trading so copper futures plunged on extremely heavy volume to a one-month lows…

China cut imports for a 6th month…

But it seems the U.S. markets prompted a flush, as the metal broke crucial technical support…

This is just another commodity that has caught Ted Butler’s “silver disease”.  The Managed Money traders were flushed by JPMorgan et al for fun, profit and price management purposes…just like the precious metals are being flushed now.  You’ve seen it all before, dear reader, in Ted’s article headlined “The Biggest Scandal“.  This tiny 2-chart Zero Hedge article was posted on their website at 9:21 a.m. EDT yesterday morning.  It’s the second offering of the day from Richard Saler, for which I thank him.  Another link to it is here.

Gold prices in India go to premium for first time this year

Finally the global gold market is getting some good news from its top consuming nation — India.

Reports this week suggest that something very unusual has just happened with India’s local gold prices: They’ve jumped to a premium above worldwide bullion prices.

That’s big news because — so far this year — India’s prices have been lagging the rest of the world. With gold here selling at discounts of $50 or more per ounce below average global prices.

But that situation has now apparently reversed itself. With local media reporting that gold sellers in Mumbai’s Zaveri Bazar were quoting gold at $1 to $2 above benchmark pricing. Marking the first time this year that India’s prices have pulled back to parity.

This gold-related news story showed up on the Internet site of all places.  It was posted there at 9:49 a.m. Central Daylight Time on Thursday morning — and it found it on the Internet site.  It’s worth reading — and another link to it is here.

India’s gold imports decline by 58.96 percent

India’s gold imports declined by 58.96 per cent to 270 tonnes from January to September from 658 tonnes that were shipped-in during the corresponding period of last year, a research report said.

According to a report by the Associated Chambers of Commerce of India (Assocham), gold imports declined due to a prolonged strike by jewellers and continuation of 10 per cent custom duty on imports.

The report of the industry body stated that smuggling of the yellow metal has been on the rise due to high custom duty, even as the industry demands a lower levy structure to encourage official imports.

India has been among the two biggest gold consumers in the world with average imports of more than 1,000 tonnes per annum reported in the recent past.

This story, filed from New Delhi, showed up on the Internet site on Thursday local time — and it’s something I found on the Sharps Pixley website late last night.  Another link to it is here.

John Hathaway: Tocqueville Gold Strategy Investor Letter — Third Quarter 2016

During the third quarter of 2016, gold and gold mining shares consolidated in a narrow range following substantial gains in the first half of the year. On a year to date basis (9/30/16) gold bullion rose 24{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} while most gold mining shares gained 3x-4x the gold price.

During the first few days of October, the gold price broke sharply lower beneath the consolidation range of the third quarter. The decline in gold accelerated after breaking through technical support zones clustered around $1300/oz. in only a few days. High frequency and short term momentum traders piled on as they typically do when technical support is breached. Intense short selling by these players accelerated the market decline. Bearishness has replaced the euphoria and overconfidence that dominated only a few months ago in early July. It must be remembered that these short term gyrations reflect synthetic or paper trading, which we have discussed frequently over the past two years, and is almost completely disconnected from flows of physical metal.

Long term, we don’t think this washout signals a structural change in gold’s outlook; it may have been a clean-out of weak holders as prices recalibrate lower towards physical support from Asian buyers. The correction of the past few days coincided with an absence of Chinese buyers due to the “Golden Week” holiday there. “With China (by far the largest buyer of physical gold) closed, the markets were open for rampant manipulation, which is exactly what happened as several billion dollars in paper assets were dumped.” (Zero Hedge Oct. 9, 2016) As noted in the October 10 Belkin report, “who sells $22 billion of gold for maximum market impact over a very short period of time? The global monetary cabal (central banks, BIS) have a long history of suppressing gold prices because a rising gold price discredits their legitimacy. But never mind, gold is still up 18{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} year to date …even after last week’s intervention.

This must read commentary by John appeared on the Internet site yesterday — and another link to it is here.

The PHOTOS and the FUNNIES161014photo-1



It had all the outward appearances of another ‘nothing’ sort of day on Thursday, but it was obvious from the price action, plus its associate volume in morning trading in the Far East, that it would have developed into something if allowed to do so, particularly once the dollar index fell out of bed in the early going in London.  That event wasn’t allowed to impact precious metal prices either.  But the dollar index swoon in mid-morning trading the Far East certainly showed up in their respective prices.

I continue to wonder why ‘da boyz’ continue to hammer away at both platinum and palladium, but are allowing silver and gold prices a free pass at the moment.  Both platinum and palladium set new low closes for this move down again yesterday.

Here are the 6-month charts for all four precious metals — and you can read into them whatever you wish.161014-6-month-gold



And as I type this paragraph, the London open is less than ten minutes away — and I see that gold was lower by a few dollars in Far East trading on their Friday — down $2.10 the ounce currently — but off its earlier lows by a bit.  Silver got sold down too, and is off it lows as well — and is down 3 cents at the moment.  Platinum and palladium were down a bit in early Far East trading — and both are down a dollar apiece as Zurich opens.

Net HFT gold volume is pretty light at just over 19,000 contracts — and that number in silver is just under 7,000 contracts.  The dollar index has been rallying ever since trading began in New York on Thursday evening — and made it back above the 97.80 mark around 12:40 p.m. in Shanghai.  It’s been chopping sideways since then — and is up 26 basis points as London opens.

Today we get the latest Commitment of Traders Report for positions held at the close of trading on Tuesday.  I’m not making any predictions, because I just don’t know enough, expect to state that their will be significant declines in the Commercial net short positions in both silver and gold once again.  Ted put forward the following in his Wednesday mid-week commentary…”In actual numbers, I would expect at least 10,000 or more contracts in silver — and more than 45,000 contracts in gold — and possibly a lot more, particularly in gold if there were any reporting delays in last week’s report.

And as I post today’s column on the website at 4:00 a.m. EDT, I note that the gold price is chopping more or less sideways — and is down $2.30 per ounce, virtually unchanged from an hour ago.  Silver continues to struggle higher — and is down 2 cents as of this writing.  Platinum is now up a buck — and palladium is down a buck.

Net HFT volume is still very light at just under 23,000 contracts — and that number in silver is 8,000 contracts, up a thousand from an hour ago.  There’s not much happening, so nothing much should be read into the current price activity, either up or down.  The dollar index continues to power higher — and is up 35 basis points as I hit the ‘publish’ button on today’s missive.

Since this is last trading day of the week, I haven’t a clue as to what JPMorgan et al have in store for the precious metals once the COMEX opens in New York this morning.  But nothing should surprise us.

Before closing, I’d like to mention that fact I received an e-mail from precious metal commentator Lawrie Williams of Sharps Pixley fame yesterday.  He’s recovering in a London hospital from a stroke — and I certainly wish him [and on your behalf as well] a full and speedy recovery.

Enjoy your weekend — and I’ll see you here tomorrow.


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