JP Morgan’s COMEX Silver Stash Up to 97.8 Million Troy Ounces

13 April 2017 — Thursday


The gold price didn’t a thing in Far East trading on their Wednesday, except for the tiny rally in morning trading that was stepped on before it got anywhere.  It traded flat in London and New York as well, but jumped up when Trump said the dollar was “too strong” shortly after 3 p.m. EDT in after-hours trading.  The price jumped up, but volume exploded as well, as the short buyers and long sellers of last resort were at the ready.

The low and high tick for gold were reported by the CME Group as $1,273.80 and $1,289.00 in the June contract.

Gold finished the Wednesday session at $1,286.60 spot, up $12.60 from Tuesday’s close.  Net volume was  very heavy at just north of 236,000 contracts.

And here’s the 5-minute tick chart for gold, courtesy of Brad Robertson as usual.  The only reason I’m including it is to show the monster volume spike on Trump’s comments about a “too strong” dollar index — about 20,000 contracts worth in a fifteen minute time period.

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

Except for the tiny rally in early morning trading in the Far East, which met the same fate as the gold ‘rally’ at the same moment, there was no price action worthy of the name for the rest of the day in either Shanghai or London.  But once the COMEX opened, the price came under a bit of selling pressure — and the low tick of the day came on a brief down/up price spike about ten minutes after the COMEX close.  Silver then rallied on the “too strong” dollar index news — and back into positive territory.  It closed almost on its high price tick once again.

The low and high prices in this precious metal on Wednesday were reported as $18.245 and $18.585 in the May contract.

Silver closed in New York yesterday at $18.455 spot — and up 13 cents on the day.  Net volume was pretty heavy at a bit under 59,000 contracts, with a fair amount of roll-over/switch volume as well.

And here’s the 5-minute tick chart for silver, courtesy of Brad as well.  Note the high volume spike in the after-hours on the “too high” comments from Trump.

The vertical gray line is 10:00 p.m. Denver time, midnight in New York — and noon China Standard Time [CST] the following day in Shanghai—and don’t forget to add two hours for EDT.  The ‘click to enlarge‘ feature is a must as well.

Platinum’s price pattern on Wednesday was very similar to silver’s in most ways — and its low tick of the day came ten minutes after the COMEX close as well.  The 3:15 p.m. EDT rally took platinum back into positive territory for the day, as it closed up 3 bucks at $971 spot.

The palladium price traded flat until shortly before 9 a.m. CST in Shanghai on their Wednesday morning — and at that point the selling pressure appeared.  The low tick of the day was set minutes after 10 a.m. in New York.  It chopped higher from there, but couldn’t squeeze a positive close, as it finished the day at $799 spot, down five dollars from Tuesday.

The dollar index closed very late on Tuesday afternoon in New York at 100.70 — and then wandered around a few basis points either side of unchanged until around 12:30 p.m. in London.  At that point it began to head lower with more authority, but appeared to get ‘saved’ about 11:35 a.m. in New York.  It rallied until Trump’s “too high” comments were made — and it cratered from there, with the 100.09 low tick coming just a few minutes before the close.  It rallied a few basis points from there — and finished the Wednesday session at 100.13 — down 57 basis points on the day.

Unlike on Tuesday, when there was no correlation at all, the correlation between the dollar index and precious metal prices was pretty much 100 percent on Wednesday, at least in the after-hours market.

Here’s the 6-month U.S. dollar index — and its entertainment value increases with each passing day.  Because the big decline came after the COMEX close, the low close won’t show up until today’s doji is added.

The gold shares opened about unchanged — and hit their morning highs in New York just before 11 a.m. EDT.  They chopped lower from there — and back into negative territory, but caught a bid on the “too strong U.S. dollar” comments from The Donald — and closed up on the day.  The HUI closed higher by 1.05 percent.

The silver equities opened down a bit — and then chopped sideways until just before 11 a.m in New York.  They too headed south at that juncture, with their respective lows coming a minute or so after 12 o’clock noon EDT. They were down about 2 percent at that point. They rallied a bit from there, but couldn’t quite make it back into positive territory, as Nick Laird’s Intraday Silver Sentiment/Silver 7 Index closed down 0.24 percent.  Click to enlarge if necessary.

The CME Daily Delivery Report yesterday was the same as it was on Tuesday.  It showed that 2 gold and zero silver contracts were posted for delivery within the COMEX-approved depositories on Monday.  There are no deliveries tomorrow, as it’s Good Friday.  The link to yesterday’s Issuers and Stoppers Report is here, but it’s not worth the trip.

The CME Preliminary Report for the Wednesday trading session showed that gold open interest in April fell by 123 contracts, leaving 1,799 left.  Tuesday’s Daily Delivery Report showed that only 2 gold contracts were posted for delivery today, so that means that 123-2=121 gold contracts disappeared from April without either making or taking delivery.  Silver o.i. in April rose by 134 contracts, if that number can be believed, leaving 199 still open.  Tuesday’s Daily Delivery Report showed that zero silver contracts were posted for delivery today.

This delivery month is getting stranger with each passing day.

There were no reported changes in GLD yesterday — and as of 7:33 p.m. EDT yesterday evening, there were no reported changes in SLV, either.

The folks over at Switzerland’s Zürcher Kantonalbank finally got around to updating their website with the goings-on inside their gold and silver ETFs as of the close of trading last Friday…April 7 — and this is what they had to report.  Their gold ETF fell by 10,062 troy ounces — and their silver ETF rose by a smallish 8,713 troy ounces.

There was a tiny sales report from the U.S. Mint yesterday.  They sold 500 troy ounces of gold eagles — and that was all.

There was very little movement in gold over at the COMEX-approved depositories on the U.S. east coast on Tuesday.  Nothing was reported received — and only 11,721 troy ounces were shipped out.  All of that ‘out’ activity was at Canada’s Scotiabank.  I won’t bother linking this small amount.

Of course it was totally different in silver, as 1,188,305 troy ounces were received — and 1,267,401 troy ounces were shipped out.  Except for two good-delivery bars that went into Delaware, all of the silver received ended up at JP Morgan…bringing their total COMEX silver stash up to the 97.8 million ounce mark, which is 51.5 percent of the silver held by all eight COMEX depositories.  Of the ‘out’ activity, there were two container loads…1,223,013 troy ounces…shipped out of CNT.  There was 40,400 troy ounces shipped out of Scotiabank, plus 3,988 troy ounces out of Delaware.  A link to all of that action is here.

There was decent in/out activity over at the COMEX-approved gold kilobar depositories in Hong Kong on their Tuesday.  Only 670 kilobars were received, but 3,213 were shipped out.  All of this activity was at Brink’s, Inc. as per usual — and a link to that, in troy ounces, is here.

I have an average number of stories for you today — and I’ll happily leave the final edit up to you.


Dollar Crashes After Trump Says “Dollar is Getting Too Strong

It was bound to happen sooner or later: having flip-flopped on virtually everything else, moments ago, in an interview with the WSJ, Trump also backtracked on his strong-dollar policy and in an interview with the WSJ, has said that the “U.S. dollar is getting too strong“, that the “strong dollar will ultimately hurt the U.S.’, and as a result, he prefers a low interest rate policy.

And the details from the WSJ:

President Donald Trump said Wednesday the U.S. dollar “is getting too strong” and he would prefer the Federal Reserve keep interest rates low. Mr. Trump, in an interview with The Wall Street Journal, also said his administration won’t label China a currency manipulator in a report due this week.

    He left open the possibility of re-nominating Federal Reserve Chairwoman Janet Yellen once her tenure is up next year, a shift from his position during the campaign that he would “most likely” not appoint her to another term.

    “I do like a low-interest rate policy, I must be honest with you,” Mr. Trump said at the White House, when asked about Ms. Yellen. “I think our dollar is getting too strong, and partially that’s my fault because people have confidence in me. But that’s hurting—that will hurt ultimately,” he added. “Look, there’s some very good things about a strong dollar, but usually speaking the best thing about it is that it sounds good.”

    He continued, “It’s very, very hard to compete when you have a strong dollar and other countries are devaluing their currency.”

    Mr. Trump said the reason he has changed his mind on one of his signature campaign promises is that China hasn’t been manipulating its currency for months and because taking the step now  could jeopardize his talks with Beijing on confronting the threat of North Korea. “They’re not currency manipulators,” Mr. Trump said.

Well, they are, they are just manipulating it in the opposite direction at this very moment.

This Zero Hedge article was posted on their website at 3:50 p.m. EDT on Wednesday afternoon — and I thank Richard Saler for sending it along.  Another link to it is here.

The Deep State and the Donald — David Stockman

David Stockman on what the generals, think tank experts, and ex-National Security Council types won’t tell you. Presented at the Mises Institute’s symposium on 8 April 2017 in Lake Jackson, Texas.

This video of David’s speech runs for 41:09 minute — and was recorded at the Mises Institute’s symposium on April 8 of this year.  Roy Stephens, who sent me this item, said it’s an absolute must watch — and I don’t doubt it, as David is no shrinking violet — and nobody’s fool, either.

Job openings hit 7-month high: Economy in trouble? — Jim Rickards

Christopher Thornberg, Beacon Economics, and James Rickards, Strategic Intelligence editor, weigh in on the labor market following March’s weak jobs report.

This 4:37 minute CNBC video clip appeared on their website at 4:33 p.m. on Tuesday afternoon EDT — and I thank Harold Jacobsen for pointing it out.

Trump’s message to bankers: Wall Street reform rules may be eliminated

President Donald Trump told a group of chief executives on Tuesday that his administration was revamping the Wall Street reform law known as Dodd-Frank and might eliminate the rules and replace them with “something else.”

At the beginning of his administration, Trump ordered reviews of the major banking rules put in place after the 2008 financial crisis, and last week he said officials were planning a “major haircut” for them.

For the bankers in the room, they’ll be very happy because we’re really doing a major streamlining and, perhaps, elimination, and replacing it with something else,” Trump said on Tuesday.

That will be the minimum. But we’re doing a major elimination of the horrendous Dodd-Frank regulations, keeping some obviously, but getting rid of many,” he said.

The White House is not unilaterally able to upend Dodd-Frank’s rules, almost all of which are implemented by independent regulatory agencies like the Securities and Exchange Commission and the Federal Reserve.

Well, Trump has flushed “fly-over America” down the drain, which is exactly what he promised he wouldn’t do…so why should this news item come as a surprise.  It’s not a done deal yet, but I would suspect that it’s only a matter of time.  This Reuters article, filed from Washington, showed up on their Internet site at 12:37 a.m. EDT on Wednesday morning — and I thank Brad Robertson for sending it along.  Another link to it is here.

Marc Faber Exclusive: Euro to Strengthen, Dollar to Weaken, Gold & Emerging Markets to Outperform

Coming up the one and only Marc Faber joins me for an amazing conversation on the state of the U.S. economy, where he sees value, where he sees problems and gives advice to those considering gold as a safe haven investment.

Well, to start out here Dr. Faber, before we get into some other stuff I wanted to hear your comments on the state of the U.S. economy. Now, it appears the Federal Reserve has finally gotten serious about moving rates higher at least modestly. U.S. equity markets seem to be discounting that fact, focusing instead on the so called Trump trade. Markets are pricing in a huge infrastructure spending program and tax cuts stimulates that could overwhelm any modest tightening at the Fed. Now that efforts to reform healthcare seem to be failing we expected some of the optimism surrounding president Trump’s other initiatives would leak out of the stock market but so far that hasn’t happened.

Stocks remain near record highs and there isn’t a whole lot of interest in safe haven assets including precious metals. So what are your thoughts here Marc? Is now a time to take some profits and move towards safety or is there still some good upside in equities?

This 25:51 minute audio program features Marc Faber — and it starts at the 6:00 minute mark.  But there’s a full transcript as well.  This interview was posted on the Internet site last Friday — and I thank Ken Hurt for sharing it with us.  Another link to it is here.

Trump says NATO “no longer obsolete

U.S. President Donald Trump has said NATO is “no longer obsolete“, reversing a stance that had alarmed allies.

Hosting NATO Secretary General Jens Stoltenberg at the White House, Mr Trump said the threat of terrorism had underlined the alliance’s importance.

He called on NATO to do more to help Iraqi and Afghan “partners“.

Mr Trump has repeatedly questioned NATO’s purpose, while complaining that the U.S. pays an unfair share of membership.

The NATO U-turn wasn’t Mr Trump’s only change of heart on Wednesday.

Another 180-degree turn for the Donald.  This news story was posted on the Internet site sometime on Monday evening BST — and I thank Roy Stephens for his second contribution to today’s column.  Another link to it is here.

Tillerson says Putin meeting “productive“; Russia warns U.S. against attacking Syria

U.S. Secretary of State Rex Tillerson said late Wednesday that his meeting in Moscow with Russian President Vladimir Putin was “productive,” but that it also reiterated the existence of a great deal of mistrust between the two countries.

Tillerson met with Putin in the Kremlin with the primary aim of persuading Moscow to abandon its support for Syrian President Bashar al-Assad. It marked the first face-to-face meeting between the Russian leader and a top official in President Donald Trump’s administration.

There is a low level of trust between our two countries,” Tillerson said after the two-hour summit. “The world’s two foremost nuclear powers cannot cannot have this kind of relationship.

This UPI story from late yesterday afternoon EDT come to us courtesy of Roy Stephens — and another link to it is here.

Lavrov Rejects America’s “Hysterical Campaign” of Interventionism: “We Know All Too Well How This Ends

Lavrov quotes Tillerson, despite the fact that they are sitting next to each other. “Rex said that he’s a new man and he doesn’t want to dig into the past.” And then Lavrov starts doing exactly that, recalling the bombing of Serbia and the West’s fixation on removing “so-called” dictators.

Lavrov is reciting cases where the U.S. violated international norms, including executing Saddam Hussein despite finding no evidence that he had weapons of mass destruction.

Lavrov has a laundry list of U.S. attempts to remove dictators, from Sudan to Libya to Iraq.

I recall from the past [America’s] fixation on the removal of various foreign authoritarian or totalitarian leaders… we know all too well how this ends…

And he went on from there!!!

The folks over at the Zero Hedge website certainly don’t pull any punches in this article that appeared on their Internet site at 2:42 p.m. EDT on Wednesday afternoon — and if you’re a serious student of the New Great Game, this item is certainly worth your while.  I thank Brad Robertson for digging it up for us — and another link to it is here.

Russia is not Syria’s ally nor master, Russia is Syria’s partner

Russia’s view of international partnerships is based on international law, mutual respect and realism. America’s is based on a master/servant mentality that is anathema to Russia.

While Rex Tillerson remained clam in Moscow, yesterday White House Press Secretary Sean Spicer gave a hysterical speech in which he attempted to convince Russia to drop all of its ‘allies’ in order to join with America, Turkey, Saudi Arabia, Qatar and Israel in their aim to destroy the government of the Syrian Arab Republic.

This won’t happen for a number of reasons, but the most frequently ignored reason is that Syria is not actually a Russian ally.

Russia is a fraternal partner of Syria. The language of partnership is what Russia uses even when describing distant or antagonistic states like the U.S. and E.U. nations.

America’s idea of allies and indeed the American practice of alliance making involves countries whose existence is geo-politically and often economically intertwined. In such instances, the poorer, smaller power always ends up being subservient to the larger ‘ally’, the United States.

Russia by contrast does not engage its partners, no matter how close, with a master/slave mentality. Russia respects the sovereignty of its partners in spite of their size, military or economic strength.

This very worthwhile commentary appeared on Internet site very early on Wednesday morning EDT — and it’s yet another contribution from Roy Stephens.  Another link to it is here.

This “False Flag” in Syria Could Launch World War 3 — Nick Giambruno

The classic movie Fast Times at Ridgemont High offers a crash course in geopolitics.

One of the characters plays on the high school football team and drives a fancy sports car. At one point, his little brother’s friend accidentally trashes the car.

Terrified, they come up with a clever plan to shift the blame. They decorate it in the rival football team’s colors to make it look like the rival team vandalized the car.

Their plan works.

This is called a false flag. It’s an incident designed to trick people into thinking someone else carried it out. The world’s intelligence services have long used the same tactic to nefarious effect.

This must read commentary by Nick showed up on the Internet site on Wednesday morning EDT — and another link to it is here.

Is That Armageddon Over the Horizon? — Paul Craig Roberts

The insouciance of the Western world is extraordinary. It is not only Americans who permit themselves to be brainwashed by CNN, MSNBC, NPR, The New York Times and Washington Post, but also their counterparts in Europe, Canada, Australia, and Japan, who rely on the war propaganda machine that poses as a media.

The Western “leaders,” that is, the puppets on the end of the strings pulled by the powerful private interest groups and the Deep State, are just as insouciant. Trump and his counterparts in the American Empire must be unaware that they are provoking war with Russia and China, or else they are psychopaths.

A new White House Fool has replaced the old fool. The New Fool has sent his Secretary of State to Russia. For what? To deliver an ultimatum? To make more false accusations? To apologize for the lies?

Consider the audacity of Secretary of State Tillerson. He has spent the week prior to his visit to Moscow supporting incredible lies and false allegations that Assad of Syria used chemical weapons with Russia’s permission, which justified Washington’s unambiguous war crime of a military attack on a country with which the U.S. has not declared war. Less than 100 days in office, and Trump is already a war criminal along with the rest of his warmonger government.

This is another must read from Paul.  It was posted on his Internet site yesterday sometime — and it’s the second offering of the day from Brad Robertson.  Another link to it is here.

Cyclone Cook: New Zealand braces for “worst storm in decades

Auckland residents told to cancel Easter plans as the cyclone heads directly for the flood-stricken Bay of Plenty region

Cyclone Cook is bearing down on New Zealand and is expected to make landfall on Thursday evening, heading directly for the flood-stricken Bay of Plenty region devastated by last week’s Cyclone Debbie.

Two states of emergency have been declared in the North Island east coast districts of Bay of Plenty and Thames-Coromandel, with more districts expected to make that call mid-afternoon when the ferocity of the storm becomes clear.

MetService – whose website crashed on Thursday because of heavy traffic – has warned the approaching storm system is expected to be the worst New Zealand has seen in decades, with forecasters comparing it to 1968’s Cyclone Giselle, which sunk the Wahine ferry, killing 52 people.

MetService meteorologist Lisa Murray said she was concerned New Zealanders weren’t taking the storm threat seriously enough and the approaching cyclone was the worst weather event she had seen in her 12 years as a forecaster.

This very interesting news item showed up on Internet site at 4:48 a.m. BST in London this morning, which was 11:48 p.m. EDT on Wednesday evening in New York.  I thank Australian reader R.T. for sending it along very late last night Denver time — and another link to it is here.

India gold imports said to jump 582{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} on festival, wedding demand

Gold imports by India are said to have jumped almost seven-fold in March from a year earlier as jewelers stocked up anticipating a demand recovery during the wedding season that began this month and the auspicious Hindu gold-buying day of Akshaya Tritiya.

Shipments advanced 582.5 percent to 120.8 metric tons last month from a year earlier, according to a person familiar with provisional data from the finance ministry, who asked not to be identified as the data aren’t public. Imports dropped 20 percent to 716.4 tons in the year ended March 31. Finance Ministry spokesman D. S. Malik declined to comment on the data.

Consumption in India, the world’s second-biggest gold buyer, has been recovering after a falling to the lowest level in seven years in 2016. A strike in March last year after a levy was introduced on jewelry produced and sold in India reduced consumption that was further dented by the government’s decision to withdraw high-denomination currency notes. March usually sees a spurt in gold imports due to warehouse clearance and re-stocking, the person said.

This gold-related Bloomberg story was posted on their Internet site at 5:25 a.m. Denver time on Wednesday morning — an I found it in a GATA dispatch.  Another link to it is here.


Today’s critter is the Peary caribou/reindeer, which is only found in the high Arctic islands in Nunavut/Northwest Territories her in Canada.  I saw lots of them when I was on Ellesmere Island back in the early 1970s….which is where it looks like these photos were taken.  It also looks like two different shots of the same animal.  Since they have never been hunted by humans at that latitude, they had no fear of man at all, at least they didn’t back then — and would approach people out of curiosity.  That happened to me a couple of times. They are ‘deer size’ — and not very big deer at that.  It was named after Robert Peary.


When the modern corporation acquires power over markets, power in the community, power over the state and power over belief…it is a political instrument, different in degree but not in kind from the state itself. To hold otherwise — to deny the political character of the modern corporation — is not merely to avoid the reality. It is to disguise the reality. The victims of that disguise are those we instruct in error.” — John Kenneth Galbraith

I have nothing to add to what I’ve already said about the precious metals further up, as the only price activity worthy of the name on Wednesday came when Trump said the dollar was “too strong“.  Of course it’s a given that the Managed Money traders were going long — and JPMorgan et al were standing there as short buyers and long sellers of last resort as they always are.

All this price activity occurred after the COMEX close — and there’s no sign of it in the 6-month precious metal charts below, as the cut-off for them is the 1:30 p.m. EDT COMEX close.  Once again the high tick data will show up in today’s dojis.  These ‘after hours’ events are becoming more frequent lately.  The click to enlarge feature helps a bit with the first four charts.

And as I type this paragraph, the London open is less than ten minutes away — and I see that the gold price traded pretty flat until around 1 p.m. CST in Shanghai on their Thursday afternoon.  At that point it was sold down a few bucks — and is currently lower by $2.80 an ounce.  Silver rallied a bit in the first few hours after trading began at 6:00 p.m. EDT on Wednesday evening in New York.  It was also sold lower starting at 1 p.m. CST, but it’s still up a penny.  Platinum traded flat to a few dollars higher in Far East trading, but it was sold back to unchanged starting at 1 p.m. CST as well.  Palladium has been trading mostly higher — and is still up 3 bucks as the Zurich open approaches.

Net HFT gold volume is way up there at just under 49,000 contracts — and that number in silver is right at 13,000 contracts, which is pretty heavy as well.  Roll-over/switch volume out of May is already very decent at least for this time of day.

The dollar index chopped quietly sideways until shortly before 10 a.m. China Standard Time on their Thursday morning — and then began to head lower.  It came within a whisker of sliding below the 100.00 mark at 10:30 a.m. CST, but rallied a bit from there up to the 100.13 mark…down 5 basis points as London opens.

There’s not a thing I can see out there that would indicate that the powers-that-be are going to release their iron grip on precious metal prices any time soon.  Of course that would be the ideal time for things to erupt, but just using past as prologue, I don’t see it in the cards unless something really goes ‘bump’ in the night — and cruise missiles landing in Syria would have been enough if ‘da boyz’ had allowed it.  Maybe a nuke in North Korea will be the ticket.

But as silver analyst Ted Butler correctly pointed out in his mid-week commentary to his paying subscribers yesterday “While I’m as prepared (mentally) for a deliberate silver price take-down on COT considerations as I suppose I can ever be, there are other factors present, not the least of which is the growing awareness and knowledge that silver prices are manipulated on the COMEX. This COMEX positioning fraud and manipulation will fail when it is sufficiently exposed, just like all scams and frauds, and that day is closer than ever. But there are other considerations driving me to maintain a full investment exposure, not the least of which is JPMorgan’s continued grab for physical silver and the chance for an unexpected double cross involving the other 7 big COMEX silver shorts.

And as I posted today’s column on the website at 2:02 a.m. EDT, I note that the gold price has rallied a hair during the first hour that London has been open — and it’s only down $1.60 an ounce at the moment.  Silver is now up 4 cents.  Platinum and palladium have risen a bit as well, with former now up a buck — and the latter up 5.

Net HFT gold volume is just over 56,000 contracts — and that number in silver is pretty chunky as well, at just above the 15,600 contract mark.

The dollar index continues to creep higher — and is now up 5 basis point.

With all that’s going on in the world today, I’ll happily pass on what I think may happen with the precious metals for the rest of the Thursday session.  But, as always, it’s mostly what happens in New York that matters — and I expect that to be the case again today.

See you tomorrow.


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