Another Huge Conversion of GLD Shares For Physical Gold

27 October 2016 — Thursday


The gold price was up a couple of bucks by shortly before 11 a.m. China Standard Time on their Wednesday morning, but by 11 a.m. in London, it was back to about unchanged.  At that point, quiet selling pressure appeared — and the low tick of the day was set shortly before the 1:30 p.m. EDT COMEX close.  The price bounced a buck from there, before trading pretty much ruler flat into the close.

Once again the high and low ticks aren’t worth the effort to look up.

Gold was closed in New York on Wednesday afternoon at $1,266.70 spot, down $6.40 from Tuesday.  Net volume was reasonably quiet at 115,000 contracts.161027gold

Silver’s high tick of the day also came shortly before 11 a.m. CST — and then didn’t do much until around 9:20 a.m. BST in London.  Then down it went as well, with the low tick printed the same time as gold’s — and the price chopped mostly sideways from there into the 5:00 p.m. EDT close of the after-hours market.

The high and low ticks were reported by the CME Group as $17.87 and $17.575 in the December contract.

Silver finished the day at $17.595 spot, down 14.5 cents.  Net volume was a bit more than light at a hair over 42,000 contracts.161027silver

I would suspect that the Managed Money traders [in both gold and silver] got blown out of the new long positions on Wednesday that they just put on, on Tuesday.

Platinum chopped about 8 dollars higher by 10 a.m. Zurich time on Wednesday morning, in what can only be described as rather lacklustre trading.  From there it got quietly sold down to its low tick [such as it was] shortly before 9 a.m. in New York.  It rallied a bit but, like gold and silver, got sold lower by shortly before the COMEX close — and traded ruler flat from there.  Platinum finished the Wednesday trading session down 2 dollars at $960 spot.161027platinum

Palladium was up 5 dollars by 10 a.m. in Zurich, but really had the lumber laid to it once COMEX trading began.  It was down 16 bucks by its low tick, which came shortly after 2 p.m. in the thinly-traded after-hours market, but it did rally a bit off that low.  Palladium was closed down 12 bucks at $620 spot.161027palladium

The dollar index closed very late on Tuesday afternoon in New York at 98.73 — and then didn’t a whole of anything until precisely 2:00 p.m. China Standard Time on their Wednesday afternoon.  It was down about 30 basis points by 10:15 a.m. in London, rallied until shortly before 12:30 p.m. BST — and then rolled over again, hitting its 98.34 low tick right at 9:30 a.m. in New York.  From the chart below, I would suspect that the usual ‘gentle hands’ showed up at that juncture — and the index was back to the 98.65 mark by shortly before the COMEX close.  The dollar index faded a few basis points from there, finishing the Wednesday session at 98.62 — down 11 basis points from Tuesday.161027intraday-gif

And here’s the 6-month U.S. dollar index chart, which you can read into whatever you wish.161027-6-month-usd

The gold stocks opened about unchanged, popped into positive territory for a minute or so — and then began to head lower.  The selling ended shortly before the 1:30 p.m. COMEX close, which is when the manufactured dollar index rally ended.  They chopped quietly higher from there — and the HUI closed down 2.44 percent.161027hui

With some minor variations in morning trading on Wednesday, the silver equities traded in a very similar manner, as Nick Laird’s Intraday Silver Sentiment/Silver 7 Index closed down 2.91 percent.  Click to enlarge if necessary.161027silver-7

The CME Daily Delivery Report showed that 20 gold and 3 silver contracts were posted for delivery on Friday.  The lone short/issuer was Morgan Stanley out of its client account.  Canada’s Scotiabank stopped 12 — and Goldman picked up the other 8 for its client account.  And as strange as it may seem, ADM issued and stopped all three silver contracts for its client account.

The CME Preliminary Report for the Wednesday trading session showed that gold open interest in October continues to rise.  Somebody has been ‘going for the gold’ in a serious way as the October delivery month winds down.  Gold o.i. in October was up by another 202 contracts, leaving 309 still around, minus the 20 mentioned in the previous paragraph.  Tuesday’s Daily Delivery Report showed that only 1 lonely gold contract was posted for delivery today, so that means that another 1+202=203 gold contracts were added to the October delivery month.  Silver o.i. in October rose by 5 contracts, leaving 41 still open, minus the 3 mentioned above.  Tuesday’s Daily Delivery Report showed that zero silver contracts were actually posted for delivery today, so that mean the obvious — that 5 silver contracts [net] were added to the October delivery month yesterday.  The link to yesterday’s Issuers and Stoppers Report is here.

This is getting really interesting, as the final day for delivery in October is on Monday.  That means that today’s Daily Delivery Report is the last day for all these contracts to be resolved — by delivery, or other means.  I’m already wondering who the short/issuer on the gold contracts might be.

And just as a matter of interest, gold open interest for November took a hit yesterday, as there are only 1,884 contracts still open — and in silver that number is 340 contracts.  As I said in Wednesday’s column, November is not a traditional delivery month, so I’m not expecting big things.  But, having said that, those 340 silver contracts are quite a bit for a non-delivery month.

There was another huge withdrawal from GLD yesterday, as an authorized participant took out 457,736 troy ounces.  I would suspect that this was another example of Ted Butler’s “large entity” [that he spoke of in my column yesterday] exchanging quietly-accumulated GLD shares — and redeeming them for physical metal, just as they did last Friday.

If you can remember, I made the comment some time ago that even though JPMorgan et al engineered the gold price lower by a hundred bucks or so, there was very little in the way of withdrawals from GLD during that event.  I also said that “strong hands with deep pockets” were buying every GLD and SLV share that John Q. Public was selling.  It’s obvious now that they were — and now they’ve exchanged them for physical metal twice in one week, most likely to avoid SEC reporting requirements.  Now we wait for that event to occur in SLV as well.

While on the subject of SLV, as of 7:03 p.m. EDT yesterday evening, there were no reported changes in that ETF.

In the website version of Tuesday’s column, I posted the bi-monthly changes in the short positions of both GLD and SLV but, unfortunately, that information didn’t make it into the e-mail version.  So if you’re one of those that reads the e-mail version only, here’s what you missed.

“Just before posting today’s column this morning I noticed that the folks over at updated their website with the changes in the short positions for both GLD and SLV as of the close of trading on October 15 — and this is what they had to report:  The short position in GLD declined from 730,500 troy ounces, down to 657,490 troy ounces, a drop of 9.99 percent.  The short position in SLV declined as well…from 11.75 million shares/troy ounces, down to 11.27 million share/troy ounce, which is a decline of 4.07 percent.”

And this is what Ted had to say about these numbers in his mid-week column yesterday: “These are historically low short positions, particularly for GLD, and as such take a back seat to COMEX positioning. Let’s hope it stays that way.

There was no sales report from the U.S. Mint.

There was very little activity in gold over at the COMEX-approved depositories on Tuesday.  Nothing was reported received — and only 9,894 troy ounces were shipped out.  That all came out of Brink’s, Inc.  I shan’t bother linking that activity.

It was extremely quiet in silver as well.  Only 2,040 troy ounces…two good delivery bars…were received — and nothing was shipped out.  I’m not about to link this amount of activity, either.

But as has been the case lately, it was another huge day at the COMEX-approved gold kilobar depositories in Hong Kong on their Tuesday.  They reported receiving 5,023 of them — and shipped out 14,329.  All of the action, as per usual, was at Brink’s, Inc. — and the link to that, in troy ounces, is here.

It was an extremely quiet news day — and I have very little for you.  I hope there are one or two in today’ meagre fare that you might find interesting enough to read.


Empty Space Haunts Manhattan’s Fifth Avenue as Retailers Balk at Rent Hikes

Landlords on Manhattan’s Fifth Avenue are sitting on a record amount of open space as retailers balk at committing to expensive new leases in one of the world’s most prestigious shopping districts.

The availability rate on the famed strip, home to Saks Fifth Avenue and Tiffany & Co.’s flagship store, jumped to 15.9 percent in the third quarter, up from about 10 percent a year earlier, according to Cushman & Wakefield Inc. The rate has climbed steadily this year, surpassing the prior peak of 11.3 percent, set in the fourth quarter of 2014.

The rise of empty storefronts isn’t limited to Fifth Avenue. It’s part of a Manhattan-wide space glut as retailers — buffeted by e-commerce, tepid demand for luxury goods and a strong dollar that’s eroded tourist spending — push back against rents that have soared to records. Leasing costs have increased in tandem with property values in the past five years, outpacing gains in merchandise sales and making it impossible for retailers to run profitable stores at many locations, according to Richard Hodos, a vice chairman at brokerage CBRE Group Inc.

Property trades are being based on achieving ever-higher rents, and nobody ever really looks at what retailers can afford to pay,” Hodos said. “In some cases, rents need to come down 30 percent or more for rents to be at levels where retailers are able to make sense of them again.”

No surprises here.  This is the first of two Bloomberg stories in a row.  This one was posted on their website at 3:00 a.m. MDT [Mountain Daylight Time] on Wednesday morning — and it’s courtesy of Brad Robertson via Zero Hedge.  Another link to it is here.

Here’s How Goldman Sachs Lays People Off

The first “plant layoff” notice came in February: 43 people would lose their jobs.

The second arrived six weeks later, increasing the cuts to 109 workers. Then a third, in April, for 146 more. And a fourth, in June: 98. Three more notices followed, including 20 dismissals announced last week.

The “plant” in question — Goldman Sachs Group Inc.

Like all big companies in New York State, the firm is required to file a “WARN notice” with state authorities when it plans to shed large numbers of employees as part of a plant closing, or “mass layoffs” involving 250 or more. Employers also must inform the state of smaller reductions under certain circumstances, and Goldman Sachs cited a “plant layoff” in each case. Last week’s notice brings this year’s job-cut tally to 443.

With the run of notices, seven since the start of the year, the bank has signaled its intention to dismiss hundreds of employees in New York without placing a single, headline-grabbing number on the overall reduction, already its largest since 2008. The company’s approach differs from competitors, including Morgan Stanley, who have shown a preference for larger, one-time cuts.

This Bloomberg news item, also courtesy of Brad Robertson via Zero Hedge, put in an appearance on their Internet site at 3:00 a.m. on Wednesday morning EDT — and was updated a bit over five hours later.  It was originally headlined “The Goldman Way to fire…bit by bit: hundreds are given the heave-ho” — and another link to it is here.

Large exodus from stock funds attributed to product switch

U.S.-based stock mutual funds reported the largest outflows in five years, Investment Company Institute data showed on Wednesday, adding to a poor year of sales for the funds.

Some $16.9 billion moved from stock mutual funds in the seven days through Oct. 19, more than in any other week since August 2011, the trade group’s data showed.

The latest data is another somber development for stock mutual funds which, despite strong markets, are on pace to record a year of withdrawals comparable with the 2008 peak of the global financial crisis.

The outflows from stock mutual funds come ahead of the Nov. 8 U.S. presidential election and a potential interest-rate hike by the Federal Reserve that could push equities lower.

Investors sharply rotated out of large- and mid-cap mutual funds last week, just as the start of earnings season kicked off,” said Rosenbluth.

This Reuters news item showed up on their website at 4:43 p.m. EDT yesterday afternoon — and another link to it is here.

Gundlach Says ‘Look Out’ for Exploding U.S. Deficits

Bad times lie ahead for bondholders as rising inflation and resurging deficits conspire to drive up interest rates, according to Jeffrey Gundlach.

We’re in the eye of a hurricane for the next three to four years,” Gundlach, chief executive officer of DoubleLine Capital, said Tuesday at the Impact 2016 conference hosted by Charles Schwab Corp. in San Diego. “Come 2018, 2019 and 2020, look out!

Gundlach, 56, has recommended that investors stay on the defensive by reducing exposure to longer-duration securities. The manager, whose firm is based in Los Angeles, has favored emerging-market debt over high-yield bonds amid concern that oil prices will plateau and threaten energy companies’ ability to repay debt. He’s also warned that stocks have more downside than upside.

Gundlach’s $61.8 billion DoubleLine Total Return Bond Fund is up 3.9 percent this year, beating 73 percent of its Bloomberg peers. Unlike many active fund managers, he has continued to attract money, reporting $11.8 billion in inflows this year through September to DoubleLine’s open-end mutual funds.

This Bloomberg news item was posted on their Internet site at 6:56 p.m. Denver time on Tuesday evening — and was updated about 19 hours later.  It’s something I found on Doug Noland’s website early yesterday evening — and another link to it is here.

Clouds gather in California…rooftop solar’s biggest U.S. market

For years, the quiet, winding streets of the Scripps Ranch neighborhood have been pure gold for solar installers.

Thanks to its high power prices, hot summers and large homes to cool, a greater share of Scripps Ranch residents have embraced solar power than anywhere else in California, itself the nation’s solar energy leader.

The rooftops of some 2,000 homes – 26 percent – are fitted with panels in Scripps Ranch, according to an analysis of state and utility solar installation numbers and U.S. Census Bureau housing data by the non-profit Center for Sustainable Energy and the environmental news web site EcoWatch.

As much as Scripps Ranch symbolizes rooftop solar’s success, it also illustrates the challenges facing the industry today. After rising 64 percent in the first half of the year in Scripps Ranch, installations tumbled 50 percent in July and August combined, according to utility data. Across California, growth also has slowed this year, and, in the third quarter, installations dropped year over year.

Industry watchers say many factors are at play, including shrinking incentives, wariness of future government actions and consumer fatigue with marketing tactics. Also, many of the most likely buyers – affluent, environmentally inclined homeowners in sunny places – already have rooftop systems, making winning new customers harder and costlier.

This Reuters news item, filed from San Diego, showed up on their Internet site at 6:21 a.m. EDT yesterday morning — and it’s another ‘Brad Robertson via Zero Hedge‘ contribution.  Another link to it is here.

Banker Deaths and WikiLeaks Deaths Have a Common Thread

Julian Assange, founder and Editor-in-Chief of WikiLeaks, is the man responsible for the daily release of emails showing the Hillary Clinton presidential campaign to be an unprecedented machine whose tentacles and snitches reach into Wall Street, big corporations and big media. Earlier this year, WikiLeaks released emails showing that the Democratic National Committee had maliciously conspired to undermine the presidential campaign of Clinton challenger, Senator Bernie Sanders, in order to elevate Hillary Clinton to the top of the ticket.

Now it has emerged that two of the top lawyers representing Assange, John Jones in London and Michael Ratner in New York, died within less than a month of each other this year. And, Assange’s closest confidant in London and a Director of WikiLeaks, Gavin Macfadyen, died just yesterday.

Wall Street on Parade has carefully investigated the similarly unprecedented banker deaths over the past two and one half years. What is noteworthy about the banker deaths is that at the time of the deaths, Wall Street banks and their global brethren were under the largest investigations for criminal rigging of markets to occur in the past century. Even during the Senate investigations of the early 1930s when crooked business journalists touting fraudulent Wall Street stocks and crooked Wall Street bank execs manipulating stock prices were regularly revealed through subpoenaed documents, there was no similar rash of deaths or series of alleged suicides.

This very interesting article appeared on the Internet site on Saturday.  I was saving it for this Saturday, but because it’s such a slow new days, I thought I’d stick it in today’s column.  It’s certainly worth reading if you have the interest — and I thank James Gullo for pointing it out.  Another link to it is here.

Italy’s Bond Yields Touch Four-Month High as Debt Supply Weighs

Supply comes a day after Austria sold 70-year bonds via banks

Italian bonds led a decline among euro-area securities as a glut of supply from governments and companies weighed on fixed-income markets.

Italy’s 10-year yield climbed to the highest since June after the country sold inflation-linked debt due in 2024 and 2026. The sell-off deepened, with similar-maturity U.K. bond yields approaching the most since the Brexit vote, after the Bank of England said Tuesday there were limits to officials’ willingness to look beyond an overshoot of their inflation target. Gilts also declined after Britain sold £4 billion ($4.9 billion) of securities due in July 2065 via banks on Tuesday.

The auctions Wednesday came a day after Austria joined the club of countries to have issued ultra-long-maturity bonds when it sold €2 billion of 70-year securities via banks. The nation also placed €3 billion of notes maturing in July 2023. The Austrian central bank retained €500 million of both securities.

Well, dear reader, whoever bought those newly minted 70-year Austrian bonds on Tuesday was deeply under water on them less than twenty-four hours later.  This is another Bloomberg article I found on Doug Noland’s website.  It appeared there at 2:32 a.m. Denver time on Wednesday morning — and was updated about seven hours later.  Another link to it is here.

It’s Apocalyptic, Our Town is Finished” – Two Quakes Strikes Italy, Collapsing Buildings and Causing Panic

As reported earlier, at 7:10pm on Wednesday central Italy was shaken by a strong, shallow 5.4 magnitude quake which was felt as far away as Rome.

However it was an aftershock which struck two hours later at 9:18 pm, and which was 8 times stronger and measured M6.1 according to the USGS, likewise striking at a shallow, 10-km depth, which brought up vivid memories of the August 24 earthquake which destroyed the hilltop village of Amatrice and other nearby towns, leading to 300 casualties. It was the second quake which according to AP resulted in crumbling churches and buildings, knocking out power and sending panicked residents into the rain-drenched streets.

One person was injured in the epicenter of Visso, where the rubble of collapsed buildings tumbled into the streets. But the Civil Protection agency, which initially reported two injured, had no other immediate reports of injuries or deaths. Because many residents had already left their homes after the first one struck just after 7pm., with plans to spend the night in their cars or elsewhere, they weren’t home when the second one hit two hours later, possibly saving lives, news reports said.

It was a very strong, apocalyptic earthquake – people were screaming in the street, and now the lights are cut off,” said Marco Rinaldi, the mayor of Ussita, a community of 400 that was also affected by the earthquake. “Many houses have collapsed. Our town is finished.

Speaking to Sky TG24, Rinaldi said that “the facade of the church collapsed. By now I have felt many earthquakes. This is the strongest of my life. It was something terrible. The second quake was a long, terrible one.

This Zero Hedge article appeared on their Internet site at 6:00 p.m. on Wednesday EDT — and another link to it is here.

Syria, Iraq are Turkey’s responsibility,’ exclaims Erdogan, demands Mosul, parts of Asia, Balkans and Middle East

In incendiary speech Turkish President Erdogan lays claims to a vast zone of influence for Turkey whilst demanding paramount influence for Turkey over Iraqi province and city of Mosul.

Referring to the National Covenant – a 1920 declaration by the last Ottoman parliament, which was used by the newly formed Turkish Republic as the basis of its initial negotiating position at the conference of Lausanne, which eventually established Turkey’s present borders – he claimed that according to “certain historians” it had included within Turkey’s borders:

Cyprus, Aleppo (in Syria), Mosul, Arbil and Kirkuk (in Iraq), Batum (in Georgia), Kardzhali, Varna (in Bulgaria), and Thessaloniki and the Aegean islands (in Greece).”

It is however Erdogan’s extraordinary comments about Mosul in Iraq that will be the cause of the greatest concern in the major world capitals.  Erdogan claimed a direct role for Turkey, both in the military operation to free Mosul from ISIS, and in any negotiations concerning its future.

This incredible speech has already triggered a storm of complaints from neighbouring states including Greece.  There have also been criticisms of Erdogan’s seemingly shaky grasp of history, though it is doubtful Erdogan cares much about that.

Wow!  What’s next out of this guy?  Not only is Erdogan a madman, he’s delusional as well.  This news item, penned by Alex Mercouris, appeared on Internet site about 9 a.m. EDT yesterday morning — and I thank Larry Galearis for bringing it to our attention.  Another link to it is here — and it’s worth reading if you have the interest.

China capital flight flashes warning as authorities forced to prick property bubble — Ambrose Evans-Pritchard

Capital outflows from China are accelerating. The hemorrhage has reached the fastest pace since the currency panic at the start of the year.

The latest cycle of credit-driven expansion has already peaked after 18 months. Beijing has had to slam on the brakes, scrambling to control property speculation that the Communist authorities themselves deliberately fomented.

How this episode could have happened is astonishing, given that premier Li Keqiang has warned repeatedly that excess credit is becoming dangerous and will ultimately doom China to the middle income trap.

It will be clear by early to mid 2017 that the economy is rolling over and that the underlying ‘quality of growth’ has deteriorated yet further. “We think the recovery will run out of steam early next year,” said Chang Liu from Capital Economics.

This stop-go rotation – an all-too familiar pattern – coincides with an incipient liquidity squeeze in global finance as dollar LIBOR and Eurodollar rates ratchet upwards. A rate rise by the US Federal Reserve will clinch it.

This AE-P commentary showed up on the Internet site at 9:14 p.m. BST on their Wednesday evening, which was 4:14 p.m. in New York — EDT plus 5 hours.  I thank Roy Stephens for sending it our way — and another link to it is here.

Doug Casey and the Latest Central Bank Gimmicks

Nick Giambruno: Doug, both the Federal Reserve and Bank of Japan (BOJ) had big meetings recently.

It seems the BOJ is eager to adopt every new “innovative” policy. I’m keeping a close eye on its strategy for debasing the yen since the Fed will probably adopt that method soon enough.

The BOJ’s latest gimmick is to target the yield curve by printing currency to buy up enough government bonds to keep the 10-year rate pegged at precisely zero.

What’s your take on this?

Doug Casey: At this point, I don’t see how anyone with an I.Q. above room temperature can believe that these academics know what they’re doing. What’s happening in Japan is disastrous, not only for the Japanese but eventually for the rest of the world as well. Japan’s just leading the race to Dead Man’s Curve, for the moment. But what the U.S. does is much more dangerous, because the U.S. dollar is, in practice, the world’s currency.

All of the world’s central banks use the dollar as their main asset. And the dollar not only serves as the de jure national currency in several countries, but also as the de facto currency in dozens more. If the yen blows up, it’s a problem mainly for the Japanese. If the dollar blows up, it’s a worldwide catastrophe.

This back and forth commentary between Nick and Doug was posted on the Internet site yesterday — and it’s certainly worth reading.  Another link to it is here.

Central banks fear exposure of their interventions, so we at GATA press on

Since 1999 the Gold Anti-Trust Action Committee has been trying to get the financial industry, the mining industry, and mainstream financial news organizations to acknowledge that the gold market is aggressively manipulated by governments and central banks to protect their currencies and bonds against competition from a potentially superior currency and store of value. This year seems to have been the one when respectable people in the financial industry gave up disputing us.

Not that GATA still isn’t disparaged. Rather, respectable people in the financial industry have gone from denying that the gold market is manipulated to dismissing complaints of gold market manipulation because, they say, “All markets are manipulated.”

Of course this response is an evasion. It fails to address the specifics and purposes of the manipulation of the gold market. That is, are all markets manipulated nearly every day by the surreptitious sale by governments and central banks of massive amounts of imaginary product? Are all markets manipulated every day so the developed world can expropriate the resources of the developing world?

Respectable people in the financial industry still find such issues politically incorrect, very bad for their business. To avoid these issues, some of these respectable people even assert that central banks don’t matter — even though central banks are authorized to create infinite money and deploy it in secret on a patronage basis, making them the most powerful institutions in the world.

But the evidence of market rigging that has been exposed this year makes it easy to understand the transition from “gold isn’t manipulated” to “everything is manipulated.”

This longish commentary by Chris Powell was the speech he gave at the New Orleans Investment Conference yesterday.  It’s full of links and definitely a must read.  It was posted on the Internet site — and another link to it is here.

The PHOTOS and the FUNNIES161027photo-1



Experience hath shewn, that even under the best forms of government those entrusted with power have, in time, and by slow operations, perverted it into tyranny.”  — Thomas Jefferson

There’s not much to comment on regarding Wednesday’s price action except to say that virtually all of Tuesday’s gains in the precious metals were taken back by ‘da boyz’ yesterday.  The internal structure of the Commitment of Traders Report is still unresolved — and until that happens, almost all my daily comments on every squiggle in the precious metal charts doesn’t mean a lot.

Here are the 6-month charts for all four precious metals once again.  As you can see at a glance, nothing at all has changed in both gold and silver as they continue to be marched more or less sideways in price, even though they would certainly rally if allowed to — and that’s despite the fact that the U.S. dollar index is bouncing along in ‘overbought’ territory.161027-6-month-gold


And as I type this paragraph, the London open is less than ten minutes away — and I note that the gold price did precisely nothing in Far East trading on their Thursday until shortly after 12 o’clock noon in Shanghai.  Then it began to move higher — and is up $1.50 the ounce at the moment.  Silver was sold down about a dime at its low, which came at the same time as gold’s — and has rallied back to down a penny.  Platinum and palladium have been chopping around unchanged all night long — and that’s where they both sit…at unchanged.

Net HFT gold volume is just over 21,000 contracts, which is pretty light — and that number in silver is just under 8,500 contracts.  The dollar index hasn’t been doing much, either — and is up 5 basis points as London opens.

When Ted and I were talking on the phone yesterday, he was of the opinion that all the gold and silver that has been moving around the world — disappearing in some places and appearing in others — was all connected to the upcoming denouement in the repricing of the the precious metals, whether it be through a resolution of the situation in the COMEX futures market as it exists today, or through other circumstances.

JPMorgan’s accumulation of 500+ million troy ounces of silver would certainly fit that pattern, as would the large silver deposit in SLV on Friday, along with the conversions of shares in GLD that happened not only last Friday, but yesterday as well.  These are just the most recent instances of that phenomenon, particularly in gold.

I’ve also noted with considerable interest the amount of gold that’s being exported from Switzerland into the U.K. recently — and have wondered if these imports that we can see, along with other possible imports from other countries that we can’t, is an attempt to replenish Britain’s gold reserves from what was foolishly sold off to save certain bullion banks after the original Washington Accord was signed back on September 26, 1999.

This is certainly speculation on my part, but the fact of the matter is, as Ted has pointed out many times over the last few years, this price management scheme can’t go on forever — and all these various and sundry gold movements, which would also include the gold imported by China, plus the gold that Russia’s central bank has been buying for the last ten years or so — are in preparation for whatever new financial system will be sprung on us when the IMF/BIS and World Bank so choose.

After 15+ years of observing these markets from not only Ted Butler’s irrefutable observations of the goings-on inside the COMEX futures market and the associated physical precious metal movement…but from what I can see myself on a macro scale when I view the world as a whole, all the signs are there that something is going on behind the scenes that we’re only getting glimpses of.  But as to how all these various pieces are going to fall into place in the end, is the big unknown.  However, when that moment does arrive, there will be no mistaking it for anything else.

And as I post today’s column on the website at 4:00 a.m. EDT, I see that the gold price continues to crawl higher during the first hour of London/Zurich trading — and is up $2.30 at the moment. Silver is up 2 cents now — and both platinum and palladium are down a dollar.

Net HFT gold volume is sitting at 24,500 contracts, which is little changed from an hour ago — and that number in silver is a hair under 9,500 contracts, which is pretty decent.  The dollar index still isn’t doing much — and is up 3 basis points.

Beats me as to what might happen today in the precious metals, but all is quiet at the moment.  However, I don’t expect that to last much longer.

That’s all I have for today — and I’ll see you here tomorrow.


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