Huge Gold and Silver Deposits in Switzerland’s Zürcher Kantonalbank ETFs

08 November 2016 — Tuesday


The U.S. dollar index began to trade two hours before the precious metal markets opened at 6:00 p.m. on Sunday evening — and it gapped up almost 70 basis points in a heartbeat.  It sold off quite a bit before the open, but the tone was set.

Gold was down 16 bucks within the first hour of trading — and recovered until minutes after 8 a.m. Tokyo time/9 a.m. in Shanghai.  Then the price pressure began anew — and barely let up until the low tick of the day was printed around 12:10 p.m. in New York.  It recovered a small handful of dollars after that — and didn’t do much after 2 p.m. EDT in after-hours trading.

The high and low tick were recorded by the CME Group as $1,296.50 and $1,278.60 in the December contract.

Gold finished the Monday session in New York at $1,281.20 spot, down $22.80 spot.  Net volume, considering the price move below its 50-day moving average, plus the gap down at the open on Sunday evening, wasn’t as heavy as I was expecting at just over 170,000 contracts.161108gold

Here’s the 10-minute gold tick chart courtesy of Brad Robertson — and the stand-out feature is the gap down at the open on Sunday evening in New York.  Volume died off a bit later in the morning in Far East trading on their Monday, but picked up a bit in the afternoon over there — and really didn’t trade at anything resembling background levels again, until after the COMEX close, which is 11:30 a.m. Denver time on the chart below.

The vertical gray line is 10:00 p.m. Denver time, midnight in New York — and 1:00 p.m. China Standard Time [CST] the following afternoon in Shanghai—and don’t forget to add two hours for EDT.  The ‘click to enlarge‘ is a must here.161108-10-minute-gold

Silver gapped lower as well — and was down about two bits or so by 7:00 p.m. EST in New York.  From there it chopped more or less sideways until shortly after 11 a.m. China Standard Time.  It rallied quietly, but unsteadily higher until 10 a.m. in London — and at that juncture, the price pressure began anew.  Once the noon silver fix in London, JPMorgan et al put the lumber to the price, with the low tick coming around 12:10 p.m. in New York.  It rallied back until minutes after 2 p.m. EST — and then didn’t do a lot for the rest of the day.

The high and low tick in this precious metal was reported as $18.29 and $18.005 in the December contract.

Silver was closed in New York yesterday afternoon at $18.155 spot, down 25 cents from Friday’s close.  Net volume was not overly heavy at 42,000 contracts.161108silver

Here’s the 10-minute silver tick chart, as there was an issue with the 5-minute one.  It’s courtesy of Brad as well — and the two stand-out features were, firstly…the gap down at the the New York open on Sunday night…and then the heavy volume between the noon silver fix in London — and the COMEX close in New York, which are 7:30 and 11:30 a.m. Mountain Standard Time on the chart below.

Like the 10-minute gold tick chart above, the vertical gray line is 10:00 p.m. Denver time, midnight in New York — and 1:00 p.m. China Standard Time [CST] the following afternoon in Shanghai—and don’t forget to add two hours for EDT.  The ‘click to enlarge‘ is a must here as well.161108-10-minute-silver

Platinum wasn’t spared, either — and within the first hour of trading, its low tick for the day had been set.  By shortly before 11 a.m. Shanghai time, it was back to unchanged — and then chopped unsteadily sideways until 2 p.m. in Zurich, which was twenty minutes before the COMEX open.  It rallied a bunch [and back above unchanged] until shortly before the afternoon gold fix in London.  Then, within an hour, it was down 8 bucks before rallying anew.  It managed to make it as high as $1,000 spot around 1 p.m. EST, but that rally got sold down as well.  However, platinum managed to finish higher by a dollar, closing at $997 spot.161108platinum

Palladium was sold off a couple of dollars at the New York open, but was back to unchanged within a couple of hours.  The price did very little after that but, like platinum, began to move higher at 2 p.m. EST.  After a brief down dip starting just before the afternoon gold fix in London, it really began to rally in earnest the moment that Zurich closed, which was 11 a.m. EST in New York.  That rally had all the hallmarks of short covering — and it topped out/was capped shortly before 1 p.m.  From there it was sold down 6 bucks or so by the COMEX close — and it traded flat for the remainder of the Monday session.  Palladium closed in New York yesterday at $650 spot, up a chunky 25 bucks on the day.161108palladium

The dollar index closed very late on Friday afternoon in New York at 96.93 — and gapped up almost 70 basis points the moment that trading began at 4:00 p.m. on Sunday afternoon in New York.  It sold off for about three hours after that, giving up over half of its ‘gains’.  But it began to head higher from there, with the 97.87 high tick coming a very few minutes after 10:30 a.m. in New York.  It chopped lower in a fairly wide range from there, finishing the Monday session at 97.74 — and up 81 basis points from where it closed on Friday.

Here’s the 3-day U.S. dollar chart so you can only see Monday’s activity, but you can also see part of Friday’s action, plus the big gap up on Sunday afternoon as well.161108intraday-gif

Here’s the 6-month U.S. dollar index chart and, as usual, you can read into it whatever you wish.


Not surprisingly, the gold shares gapped down a bunch — and chopped lower from there.  The low tick was set around 11:20 EST — and they crawled higher for the rest of the day.  The HUI closed lower by 4.05 percent.161108hui

The silver equities gapped down as well, then rallied into the London p.m. gold fix at 10 a.m. in New York.  Then, like their golden brethren, sold off until 11:20 a.m. EST.  Then, ten minutes later, away they went to the upside, with most of the day’s gains coming shortly after 1 p.m. in New York.  They chopped sideways from there, almost making back to unchanged around 3 p.m. before sliding a bit into the close.  Nick Laird’s Intraday Silver Sentiment/Silver 7 Index finished the Monday session down only 0.47 percent.

The reason for that rather miraculous state of affairs was the fact that of the seven stocks that make up Nick’s Silver Sentiment/Silver 7 index, Coeur Mining finished down only 0.53 percent, Hecla Mining actually closed up 2.48 percent, as did Industrias Peñoles, up 2.08 percent.  I’ll have more about this in The Wrap.  Click to enlarge if necessary.161108silver-7

The CME Daily Delivery Report showed that zero gold or silver contracts were posted for delivery on Wednesday.

The CME Preliminary Report for the Monday trading session showed that November gold open interest rose by 1 contract, leaving 22 left open.  Friday’s Daily Delivery Report showed that 4 gold contacts were actually posted for delivery today, so that means that another 4+1=5 gold contracts were added to the November delivery month.  November silver o.i. rose by 6 contracts, to 61 contracts remaining.  Friday’s Daily Delivery Report showed that zero silver contracts were posted for delivery today.

There were no changes in GLD yesterday — and as of 6:40 p.m. EST yesterday evening, there were no reported changes in SLV, either.

The folks over at Switzerland’s Zürcher Kantonalbank updated their website with the goings-on inside their gold and silver ETFs as of the close of trading on Friday, November 4 — and what they had to report was a big surprise.  They added a whopping 112,936 troy ounces to their gold ETF — and a monstrous 864,630 troy ounces to their silver ETF.  These are the biggest deposits in both that I can remember seeing, at least during the last five years.

There was a sales report from the U.S. Mint yesterday.  They sold 6,500 troy ounces of gold eagles — 1,000 one-ounce 24K gold buffaloes — and 150,000 silver eagles.

It was a very quiet day in gold over at the COMEX-approved depositories on Friday.  Only 533 troy ounces were received — and 132 troy ounces were shipped out.  I shan’t bother linking this ‘activity’.

It was somewhat busier in silver.  Nothing was received — and 634,341 troy ounces were shipped out.  There was 532,351 troy ounces deposited at CNT — and except for one good delivery bar, the remainder went into Brink’s, Inc.  The link to that activity is here.

Over at the COMEX-approved gold kilobar depositories in Hong Kong on their Friday, they reported receiving 3,460 of them, but they only shipped out 235.  All of the action was at Brink’s, Inc. — and the link to that, in troy ounces, is here.

Here are three charts that Nick Laird passed around last night.  The first one shows gold imports into China through Hong Kong for September — and the magic number that month was 52.762 tonnes.  Imports through Hong Kong may no longer be the proxy for gold imports into China anymore, but they certainly aren’t going away.  Click to enlarge.161108hk-china-imports

Nick’s second chart shows China’s Gold Reserves updated with October’s data.  They added only 4 tonnes to their reserves — and I would doubt that number is even remotely close to the truth.  Click to enlarge.161108china-reserves

And lastly are the withdrawals from the Shanghai Gold Exchange for October — and they totalled 153.252 tonnes.  Here’s Nick’s updated chart showing the change.  Click to enlarge.161108sge-october

I don’t have all that many stories for you today — and I hope you can find the time to spend on the ones that interest you the most.


David Stockman warns both Trump and Clinton could lead to 25{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} sell-off

David Stockman, the man widely credited as the “Father of Reaganomics”, delivered an alarming message to investors.

Sell everything!

The markets are hideously inflated,” warned Stockman on CNBC‘s “Fast Money” this week. The former Director of the Office of Management and Budget under President Ronald Reagan urged investors to dump stocks and bonds ahead of the dangers that both Donald Trump and Hillary Clinton pose to markets if either is elected as President.

If you don’t sell before the election, certainly do it afterwards. Government is going to be totally paralyzed regardless of who wins,” he said.

This 5:22 minute CNBC video clip, with a partial transcript, put in an appearance on their Internet site at 5 p.m. EDT on Saturday afternoon — and it comes to us courtesy of Larry Galearis.  Another link to it is here.

Obama’s Successor Inherits Bond Market at Epic Turning Point

Barack Obama will go down in history as having sold more Treasuries and at lower interest rates than any U.S. president. He’s also leaving a debt burden that threatens to hamstring his successor.

Obama’s administration benefited from some unprecedented advantages that helped it grapple with the longest recession since the 1930s. The Federal Reserve kept rates at historically low levels, partly by becoming the single biggest holder of Treasuries. The U.S. could also rely on insatiable demand from international investors, led by China deploying its hoard of reserves. Global buyers added $3 trillion of Treasuries, doubling ownership to a record.

Now those tailwinds are turning around. The Fed is telegraphing more hikes at a time when interest costs on the nation’s bonds are already the highest in five years. The government’s marketable debt has more than doubled under Obama’s stewardship, to a record of almost $14 trillion. And the deficit is expanding again, after narrowing for four straight years, just as overseas holdings of Treasuries are shrinking at the fastest pace since 2013.

This Bloomberg article was posted on their website at 4:00 p.m. Denver time on Sunday afternoon — and was updated about 14 hours later.  I thank West Virginia reader Elliot Simon for sharing it with us — and another link to it is here.

Doug Noland Interview: “In the Next Crisis the Fed’s Balance Sheet Will Hit $10 Trillion

The global bubble that central banks have kept afloat for the past eight years, based on sovereign and government debt, as well as central bank credit, runs right to the heart of the monetary system. That, according to Doug Noland, means we are in for a bigger crash and deeper dislocation when it all comes to an end, and Noland has a good idea which will be the first central bank to crack.

Doug Noland of McAlvany Wealth Management has a long history in the hedge fund industry as a short seller, having worked with Gordon Ringoen and Bill Fleckenstein among others, but is perhaps best known for his ability to spot bubbles ahead of the crowd. [They forgot to mention David Tice. – Ed]

Studying credit data, he was initially concerned about the balance sheet expansion of Freddie and Fannie in the early 90s and started writing about the mortgage finance bubble in 2002. He also called the government finance bubble in April 2009.

In an interview with Real Vision TV, Noland said the current market bubble is a dangerous place to be and there has been a major shift from previous boom bust scenarios, where the impact has been more limited. He also examines how support from central banks has led the markets to ignore the risk – and what happens when that support is taken away.

As you know, I’ve been a huge fan of Doug Noland’s Credit Bubble Bulletin ever since it showed up on the Internet fifteen or so years ago when he was working for my good friend David Tice.  Here he is in a Real Vision TV interview, probably with Grant Williams — and this Zero Hedge article in which this clip is embedded, contains an executive summary of what he said.  It’s definitely worth reading/watching — and the first person through the door with it was reader U.D.  It was posted on the ZH website at 9:15 p.m. EST on Sunday evening — and another link to it is here.  [It should be noted that Jim Rickards feels the IMF’s SDRs will come into play before the Fed allows its balance sheet to blow out to that size.  We’ll find out, in time, which scenario is right. – Ed]

Assange: Clinton is a cog for Goldman Sachs and the Saudis (JOHN PILGER EXCLUSIVE VIDEO & TRANSCRIPT)

Whistle-blower Julian Assange has given one of his most incendiary interviews ever in a John Pilger Special, courtesy of Dartmouth Films, in which he summarizes what can be gleaned from the tens of thousands of Clinton e-mails released by WikiLeaks this year. Pilger, another Australian émigré, conducted the 25-minute interview at the Ecuadorian Embassy, where Assange has been trapped since 2012 for fear of extradition to the U.S. Last month, Assange had his internet access cut off for alleged “interference” in the American presidential election through the work of his website.

John Pilger: What’s the significance of the FBI’s intervention in these last days of the U.S. election campaign, in the case against Hillary Clinton?

Julian Assange: If you look at the history of the FBI, it has become effectively America’s political police. The FBI demonstrated this by taking down the former head of the CIA [General David Petraeus] over classified information given to his mistress. Almost no-one is untouchable.  The FBI is always trying to demonstrate that no-one can resist us.  But Hillary Clinton very conspicuously resisted the FBI’s investigation, so there’s anger within the FBI because it made the FBI look weak.  We’ve published about 33,000 of Clinton’s e-mails when she was Secretary of State.  They come from a batch of just over 60,000 emails, [of which] Clinton has kept about half – 30,000 — to herself, and we’ve published about half.

This 24:52 minute video interview, plus a full transcript, appeared on the Internet site at 05:59 a.m. Moscow time on their Saturday morning, which was 9:59 p.m. EDT on Friday evening — EDT plus 8 hours.  Another link to this news item is here.

FBI Director Comey Announces No Action Against Clinton Over New E-mails; No Evidence?

With just one day remaining before the U.S. presidential election, FBI Director James Comey announces No Action Against Clinton Regarding New E-mails.

James Comey, director of the Federal Bureau of Investigation, on Sunday told Congress that an examination of new emails related to Hillary Clinton’s private server had reaffirmed his earlier decision not to recommend prosecution, in a dramatic development that came just two days before the November 8 presidential election.

Based on our review, we have not changed our conclusions that we expressed in July with respect to Secretary Clinton,” Mr Comey wrote to lawmakers on Capitol Hill.

The move marked another spectacular development in the final days of the campaign. Mr Comey generated huge controversy two weeks ago when he told Congress that the FBI was examining new e-mails related to its prior probe of Mrs Clinton, sparking concerns that he was breaking internal guidelines by wading into the race.

This spin on the Clinton story was posted on the Internet site on Sunday morning — and it’s not really ‘news’, as everyone knows about it now.  Another link to it is here — and I thank Roy Stephens for sending it our way.

Specter of election day violence looms as Trump spurs vigilante poll watchers

Donald Trump’s claims of “large-scale” voter fraud have prompted officials across the political spectrum to warn about the dangers of vigilante poll monitors amid fears of confrontations or even violence on US election day.

As opinion polls tightened this week between Trump and Hillary Clinton ahead of Tuesday’s presidential vote, there are concerns of chaos following his claims, without serious evidence, that the election could be “rigged” and his refusal to say if he will accept the outcome.

The Democratic party has launched a series of legal challenges around the country alleging voter intimidation, and on Friday in the battleground state of Ohio a judge issued a temporary restraining order against Trump’s campaign and his unofficial adviser Roger Stone. The ruling said anyone who engaged in intimidation or harassment inside or near Ohio polling places would face contempt of court charges.

Republican leaders in some battleground states are reporting a surge of volunteers signing up to serve as official poll watchers, and in an unprecedented move, the Trump campaign itself has since August been requesting that volunteers sign up as “election observers” to “Help Me Stop Crooked Hillary From Rigging This Election!”. Stone, meanwhile, has said he has helped recruit people to do “exit polls” to tackle voter fraud.

The Guardian is getting in on the fear mongering as well.  But, as you already know dear reader, the mainstream media is all bought and paid for when it come to Hillary.  This article showed up on their website at 10:00 p.m. GMT on Saturday night, which was 6:00 p.m. in New York — EDT plus 4 hours — and another link to it is here.

Queen Offers to Restore British Rule Over United States

In an unexpected televised address on Saturday, Queen Elizabeth II offered to restore British rule over the United States of America.

Addressing the American people from her office in Buckingham Palace, the Queen said that she was making the offer “in recognition of the desperate situation you now find yourselves in.”

This two-hundred-and-forty-year experiment in self-rule began with the best of intentions, but I think we can all agree that it didn’t end well,” she said.

The Queen urged Americans to write in her name on Election Day, after which the transition to British rule could begin “with a minimum of bother.”

This tongue-in-cheek piece by Andy Borowitz appeared on The New Yorker website ten days ago.  I seem to remember someone sending it to me two weekends ago, but I decided against posting it.  I have now reconsidered since Swedish reader Patrik Ekdahl dropped a copy of it in my in-box on Saturday.  Another link to it is here.

U.K.’s Tesco Bank Halts Web Trades as Money Taken From 20,000 Accounts

Tesco Bank, the lending arm of the U.K.’s biggest grocer, said it halted online transactions after about 20,000 customers had money fraudulently taken from their accounts.

About 40,000 of the bank’s 136,000 checking account holders experienced suspicious transactions over the weekend, Tesco Bank Chief Executive Officer Benny Higgins told BBC Radio 4’s Today program. About half of those had money taken from their account, he said. The problem has only affected checking accounts, a representative for the bank said.

Some of the world’s biggest financial institutions, including JPMorgan Chase & Co., HSBC Holdings Plc and the Federal Reserve Bank of New York, have all been cyberjacked in some way in the past couple of years. In the second quarter of this year, there was a 50 percent jump in activity by cybercriminals injecting malware programs into financial companies worldwide from the same period in 2015, according to Kaspersky Lab, a global cybersecurity company.

Banking fraud is unfortunately very prevalent, and has been for a while,” said Tom Kirchmaier, researcher at the financial markets group at the London School of Economics. “The industry is not very forthcoming with sharing data with the police, and so we only hear about the worst cases, and Tesco’s can be considered one such instance.

This Bloomberg story was posted on their website at 2:56 a.m. MST on Monday morning — and it was updated about five hours later.  I thank Elliot Simon for his second offering in today’s column — and another link to it is here.

Marks & Spencer is ‘set to close dozens of stores’

Marks & Spencer is reportedly set to close dozen of U.K. stores in an effort to turn around its struggling business.

Chief executive Steve Rowe could announce the fate of both the company’s international business and the portfolio of its UK stores on 8 November, when M&S is expected to post lower profit and sales.

According to Sky News, some stores will face closures while others will see space reallocated as the company tries to capitalise on the success of its food and drink products.

Mr. Rowe, who in July revealed the company’s worst first quarter in clothing and homeware sales for almost a decade, recently announced plans to cut more than 500 jobs at its London head office in Paddington.

This means the decision to cut stores could be part of Mr. Rowe’s wider plans to turn the struggling retailer around.

This news story appeared on the Internet site last Friday sometime — and it’s another contribution from Patrik Ekdahl.  Another link to it is here.

Higher inflation and rising debt threaten millions in U.K.

Experts warn of imminent fall in living standards due to sharp fall in value of pound after referendum.

U.K. households should brace themselves for a combination of rising inflation, low pay and increased debt that will squeeze living standards next year and push more people into financial difficulty, experts have warned.

Higher inflation, weak wage growth and rising levels of consumer debt are expected to weigh on households next year as the economy adjusts to the post-referendum environment.

Joanna Elson, chief executive of the Money Advice Trust, the charity that runs National Debtline, said: “The spectre of significantly higher inflation is a real concern. Many households have still not recovered from the last big squeeze on incomes in the aftermath of the financial crisis. The risk is that this new pressure on household budgets could tip many more people into financial difficulty.

This article put in an appearance on Internet site on Saturday evening local time — and it’s the third and final offering of the day from Patrik Ekdahl.  Another link to it is here.

Doug Casey: There Will Be One Huge Winner in the Coming Currency Crisis

My regular readers know why I believe the gold price is poised to move from its current level of around $1,340 per ounce to $1,500…$2,000…and eventually past $3,000.

Right now, we are exiting the eye of the giant financial hurricane that we entered in 2007, and we’re going into its trailing edge. It’s going to be much more severe, different, and longer lasting than what we saw in 2008 and 2009.

In a desperate attempt to stave off a day of financial reckoning during the 2008 financial crisis, global central banks began printing trillions of new currency units. The printing continues to this day. And it’s not just the Federal Reserve that’s doing it: it’s just the leader of the pack. The U.S., Japan, Europe, China… all major central banks are participating in the biggest increase in global monetary units in history.

These reckless policies have produced not just billions, but trillions in malinvestment that will inevitably be liquidated. This will lead us to an economic disaster that will in many ways dwarf the Great Depression of 1929–1946. Paper currencies will fall apart, as they have many times throughout history.

This commentary by Doug showed up on the Internet site on Saturday sometime — and another link to it is here.

China’s 2016 Gold Demand Continues Downward Trend — Lawrie Williams

Today we’ve received the latest figures for China’s official gold reserves and also the latest Shanghai Gold Exchange (SGE) gold withdrawal figures for October and both suggest that this year’s decline in overall gold demand, both from official and commercial entities has continued to fall.  First the People’s Bank of China reported that the country’s official gold reserves rose to 59.24 million troy ounces (1,842.6 tonnes) at the end of October, up from 59.11 million troy ounces (1,838.5 tonnes) in September, a rise of a paltry 4 tonnes, well below the 14 tonnes added to reserves in the same month a year ago and follows on from rises of only 5 tonnes in August and September this year.  Year-to-date China has only reported a total reserve increase of around 76 tonnes compared with the 104 tonnes it reported for the final 6 months of 2015 (it only began reporting monthly reserve increases in July 2015).

While these latest statistics suggest a definitive decline in official purchases, leaving China with an estimated total holding of around  1,847 tonnes – the world’s fifth largest national gold holding – the holding remains tiny in terms of percentage of its total foreign reserves (less than  2..5{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e}) in comparison with the world’s other major gold holders like the USA, Germany, Italy and France, all of which reportedly hold over 60{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} of their forex reserves in gold. (It is widely believed though that China may hold far more gold than it reports to the IMF as it is known to have heavily under-reported its holdings in the past).

But official holdings are probably only the tip of the iceberg as far as Chinese gold demand is concerned as known gold imports have been running at over 1,000 tonnes a year for some time and it is also the world’s largest gold producer.  One measure of China’s non-official gold demand comes in reported monthly gold withdrawals from the Shanghai Gold Exchange (SGE0 and as can be seen from the table below these are currently running 28{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} below last year’s record levels, although only 5.7{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} down on 2014 levels.

The latest monthly withdrawal figure was 153.25 tonnes, 17.65 tonnes less than September, but this is probably not significant as October figures included the Golden Week holiday when the Exchange was closed.  We can expect something of a pick-up in November and December as demand increases ahead of the Chinese New Year and there are already anecdotal reports that retail gold demand has been rising in recent weeks.  Overall we’d expect the annual total to eventually come in at around 2014 levels at around 2,100 tonnes, but this would still be a substantial number in terms of a percentage of global demand and represents more than 60{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} of global new mined output  Chinese demand may be down this year but it still remains hugely significant.

The above four paragraphs are all there is to this commentary by Lawrie that appeared on the Sharps Pixley website on Monday — and the table of numbers that he mentions in the first paragraph, is worth a look if you have the interest.  Another link to it is here.


Because I’ve got four cartoons today, I’ve only got the one photo from Bob Anthony’s South Africa trip.  The Click to enlarge feature helps for the photo — and might help for some of the cartoons as well.161108photo-3



I would suspect that the gap up in the dollar index, along with the gaps down in gold, silver and platinum had everything to do with the FBI/Hillary e-mail news on the weekend — and whether or not this activity was all free-market price reaction is open for debate — and I’ll leave it that.

As I said late last week, it’s impossible to handicap just about any market going into this election — and that’s doubly true of what happened in the precious metals yesterday.  For instance, gold gapped down and closed well below its 50-day moving average, but net volume was only 170,000 contracts.  Silver’s move down didn’t violate any of its moving averages but, having said that, net volume in that precious metal was a piddling 42,000 contracts, only 4,000 or so contracts above average.  What the heck was that about?

And as much as both Ted and I dislike using the preliminary open interest numbers for anything, gold’s total open interest on Monday only dropped by 7,600 contracts — and in silver it was 1,800 contracts.  I’ve found out the hard way, which Ted warned me about, that one shouldn’t rely on these preliminary numbers as gospel…not even the final numbers…because spread trades can hide a lot of sins.

Here are the 6-month charts in all four precious metals, so you can see yesterday’s price movements vs. their respective 50 and 200-day moving averages.161108-6-month-gold


Besides the lack of volume in both gold and silver, the other big surprise of the day was how well three of the seven silver stocks of the Silver Sentiment Index/Silver 7 Index did.  There was huge volume in all seven, but only those three did well — and well enough to close Nick’s index almost unchanged.  Someone with very deep pockets was buying them, but that begs the question as to why they weren’t buying the rest? Why just those three?

The other thing worth mentioning for a second time in this column were the huge deposits in both the gold and silver at Switzerland’s Zürcher Kantonalbank during the last reporting week.  I’m suspicious of the timing…coming just before the election — and am wondering out loud if we’ll see another big deposit this business week as well.  We’ll find out next week, which is a lifetime away at the moment.

And as I type this paragraph, the London open is less than ten minutes away — and I note that gold has been trading mostly above unchanged all day long in the Far East on their Tuesday — and is up $3.20 the ounce currently.  It was more or less the same in silver, but it jumped a dime just before 3 p.m. in Shanghai, but got tapped lower about fifteen minutes later — and is up 13 cents at the moment.  Platinum and palladium had similar price rallies as silver just before 3 p.m. CST.  Platinum is currently off its high tick as well — and up 6 bucks.  Palladium is also off its current high tick — and is back to unchanged.

Net HFT gold volume is sitting at 19,500 contracts, which is pretty light — and in silver, that number is 6,900 contracts.  With the kind of volume it’s not hard for anyone with an agenda, JPMorgan et al for instance, to keep prices in check — and they are at the moment.  The dollar index made it has high as 97.83 in early morning trading in the Far East, but has rolled over since — and is down 10 basis points as London opens.

Today is not only election day in the U.S. — it’s also the cut-off for this Friday’s Commitment of Traders Report — and that cut-off is at the 1:30 p.m. EST close of COMEX trading this afternoon.

Whether or not there will be any precious metal price fireworks between now and then is anyone’s guess, but once trading begins at 6:00 p.m. this evening in New York, all bets will off…either up or down.

And as I post today’s column on the website at 4:00 a.m. EST, I see that the gold price continues to creep higher — and is up $3.60 per ounce.  Silver is now up 20 cents — and platinum is higher by 9 dollars.  Palladium is now up 2 bucks after crawling along at unchanged for the last hour or so.

Net HFT gold volume is just over 23,000 contracts — and that number in silver is 8,400 contracts.  These aren’t big changes from an hour ago, still very light.  The dollar index hit its current low tick just minutes after London opened — and is down 14 basis points at the moment.

That’s all I have for today — and the next 24 hours will prove not only of great interest, but most likely historic as well.

But whatever happens between now and then, I’ll have it for you here tomorrow — and I’ll see you then.


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