Yet Another Monster Silver Deposit Into SLV

15 August 2019 — Thursday

YESTERDAY in GOLD, SILVER, PLATINUM and PALLADIUM


The gold price didn’t do much of anything in Far East trading on their Wednesday — and began to head higher at 11 a.m. in London trading.  That rally was capped and turned lower at exactly 1:00 p.m. in New York — and it chopped quietly and very unevenly lower until trading ended at 5:00 p.m. EDT.

The low and high tick in the October contract were reported as $1,499.00 and $1,528.40 — and in December, those numbers were $1,504.50 and $1,534.90.

Gold was closed on Wednesday at $1,516.10 spot, up $15.20 on the day — and about six bucks off its high tick.  Net volume was ginormous as always at just over 483,500 contracts — and there was a hair under 13,000 contracts worth of roll-over/switch volume in this precious metal.

The price path that silver took on Wednesday was almost identical to that of gold’s…except that the price began to crawl quietly higher starting around 1:30 p.m. China Standard Time on their Wednesday afternoon.  The price was capped at the $17.29 spot mark at 1:00 p.m. in New York trading as well — and starting about five minutes before the 1:30 p.m. COMEX close, it was sold lower until a few minutes after 3 p.m. in after-hours trading.  It didn’t do much after that.

The low and high ticks in silver were recorded by the CME Group as $16.855 and $17.305 in the September contract.

Silver was closed on Wednesday at $17.18 spot, up 26 cents from Tuesday — and around 11 cents off of its high of the day.  Net volume was way up there at a bit under 100,500 contracts — and there was a bit over 16,000 contracts worth of roll-over/switch volume out of September and into future months.

The platinum price traded ruler flat until 9 a.m. in Shanghai on their Wednesday morning — and the selling pressure began at that point.  It turned higher shortly after the Zurich open — and made it back within a dollar of unchanged by minutes before 2 p.m. CEST/8 a.m. EDT…but that’s as high as it was allowed to get.  It was sold quietly lower until around 12:30 p.m. in New York — and its tiny gains after that had all disappeared by the 5:00 p.m. EDT close.  Platinum was closed at $842 spot, down 10 bucks from Tuesday.

Palladium was sold lower starting shortly after 8 a.m. in Shanghai — and that sell-off lasted for a couple of hours — and from that juncture the price didn’t do much until around 10:25 a.m. in Zurich on their Wednesday morning.  The price pressure in this precious metal began at that point — and the low tick was set about 11:40 a.m. in COMEX trading in New York.  And, like for platinum, its rally attempt after that was mostly negated by the 5:00 p.m. close.  Palladium was closed at $1,408 spot, down 19 dollars on the day.

The dollar index closed very late on Tuesday afternoon in New York at 97.81 — and opened down 2 basis points once trading commenced at 7:45 p.m. EDT on Tuesday evening, which was 7:45 a.m. China Standard Time on their Wednesday morning.  It crept a bit higher until around 1:20 p.m. CST — and then edged unevenly lower until a ‘rally’ developed about five minutes before the COMEX open in New York.  That ‘rally’ wasn’t overly exuberant — and ran out of gas around 4:05 p.m.  — and it slipped a tiny handful of basis points going into the 5:30 p.m. close.  The dollar index finished the Wednesday session at 97.99…up 18 basis points from Tuesday’s close.

It was another day where what was going on in the currency markets had pretty much zero to do with what happening in the precious metals.

Here’s the DXY chart, courtesy of Bloomberg as always.  Click to enlarge.

And here’s the 6-month U.S. dollar index chart, thanks to the folks over at the stockcharts.com Internet site.  The delta between its close…97.83…and the close on the DXY chart above was 16 basis points on Wednesday.  Click to enlarge as well.

The gold stocks opened up over 2 percent — and then were sold lower until around 11:40 a.m. in morning trading in New York.  They rallied almost back to their previous highs by a minute after 1 p.m. — and when gold was capped a turned lower at that juncture, the shares followed.  The HUI closed up only 0.17 percent.

The silver equities open up something less than two percent — and they were sold lower and back into negative territory shortly after than.  They managed to poke their respective noses back above the unchanged mark by around 1 p.m. EDT.  The silver price was also capped and turned lower at that time — and the shares zealously followed, as Nick Laird’s Intraday Silver Sentiment/Silver 7 Index closed down another 2.35 percent.  Click to enlarge if necessary.

And here’s Nick’s 1-year Silver Sentiment/Silver 7 Index chart, updated with Wednesday’s doji.  Click to enlarge as well.

Although I suspect that some of yesterday’s sell-off in the precious metal stocks was related to the general swoon in the New York equity markets on Wednesday…I can’t shake the feeling that there’s a heavy hand showing up as a short seller…especially in the silver shares.  I could be wrong about that, but I have to call it the way I see it.  However, if I do get new information, I’m certainly prepared to change my mind.


The CME Daily Delivery Report showed that 749 gold and 138 silver contracts were posted for delivery within the COMEX-approved depositories on Friday.

In gold, the only one of the two short/issuers that mattered was HSBC USA, as they issued 744 contracts out of their in-house/proprietary trading account.  There were ten long/stoppers in total — and the four largest were JPMorgan with 342 for its client account…Macquarie Futures with 160 contracts for its own account…Citigroup with 134 for its own account as well — and in fourth spot was Advantage, with 70 contracts for its client account.

In silver, there four short/issuers in total — and the two biggest were International F.C. Stone with 106 contracts — and Advantage with 22 contracts.  There were five long/stoppers in total — and the two biggest there were JPMorgan and Advantage…picking up 80 and 48 contracts for their respective client accounts.

The link to yesterday’s Issuers and Stoppers Report is here.

The CME Preliminary Report for the Wednesday trading session showed that gold open interest in August declined by a further 236 contracts, leaving 1,831 still open, minus the 749 contracts mentioned a few paragraphs ago.  Tuesday’s Daily Delivery Report showed that zero gold contracts were posted for delivery today, so that means that 236 more gold contracts vanished from the August delivery month.  Silver o.i. in August fell by 41 contracts, leaving 140 still around, minus the 138 contracts mentioned a few paragraphs ago.  Tuesday’s Daily Delivery Report showed that 73 silver contracts were actually posted for delivery today, so that means that 73-41=32 more silver contracts just got added to August.

So far this month there have been 5,201 gold contracts issued and stopped — and that number in silver is now up to whopping 1,946 contracts.  That’s the largest number of silver contracts ever delivered in a non-traditional delivery month for silver that I’ve ever seen.  As I’ve said before, the scramble is now on for what’s left of the ever-dwindling supplies of physical sliver that there are.


After a chunky withdrawal from GLD on Tuesday, there was a very decent deposit on Wednesday, as an authorized participant added a hefty 245,189 troy ounces.  And there was another monstrous deposit into SLV…the second one in as many days…as an a.p. added 4,538,290 troy ounces.

In the other silver ETFs, there was 539,348 troy ounces added to Deutsche Bank’s XAD6 fund — along with 146,645 troy ounces added at Sprott.

Once again there was no sales Report from the U.S. Mint.

There was some decent movement in gold over at the COMEX-approved depositories on the U.S. east coat on Tuesday.  HSBC USA reported receiving 65,909.550 troy ounces/2,050 kilobars [SGE kilobar weight].  There was no ‘out’ activity.  Ted said that they most likely brought it in reluctantly.  But as one of the largest short/issuers in gold, it appeared to him that some of the long/stoppers were demanding delivery of physical metal, so they had to buy it, as they obviously had none of their own to deliver.  I suspect that this delivery situation will be resolved very shortly.  The link to this activity is here.  [I wrote this paragraph four hours before the Daily Delivery Report came out — and it’s now obvious that Ted called it exactly right. – Ed]

There wasn’t much going on in silver, as only 954 troy ounces was received — and 20,703 troy ounces was shipped out.  There was also a paper transfer of 9,976 troy ounces from the Registered category — and back into Eligible.  I won’t bother itemizing all this, but if you want to look for yourself, the link is here.

There was no in/out activity over at the COMEX-approved gold kilobar depositories in Hong Kong on their Tuesday.


Here are two charts that I haven’t posted for a couple of months.  They show the total gold and silver holdings of all know depositories, mutual funds and ETFs over the last twenty years…plotted against the prices of their underlying precious metals.

Gold on deposit hasn’t yet reached its old high from back in late 2012 — and currently sits at 96.56 million troy ounces.  The amount of silver in these same depositories is at a new all-time high…1.13 billion troy ounces — and broke above its old all-time high just about five years ago.  Click to enlarge for both.

It was a fairly eventful news day — and I have a decent number of stories/articles for you again today.


CRITICAL READS

Bonds Signal Growing Global Distress After Key Yield Curve Flips

The U.S. government bond market sounded alarms Wednesday as investors fleeing riskier assets drove the 30-year bond’s yield to a record low and the 10-year yield fell below the rate on the two-year for the first time since 2007.

The 10-year Treasury yield dipped as much as 1.9 basis points below the two-year yield in what’s considered a harbinger of a U.S. economic recession beginning in the next 18 months. That expectation, nurtured in recent weeks by worsening U.S.-China trade relations and signs global growth is slowing, was bolstered Wednesday by weak Chinese and German economic data. The so-called inversion drew U.S. President Donald Trump’s ire, who tweeted Wednesday that Federal Reserve chairman Jerome Powell is “clueless.”

Bad European and Chinese data were the trigger for the global bond rally, said Praveen Korapaty, chief global rates strategist at Goldman Sachs Group Inc. “From the pace of the move, I suspect some long-held steepeners are being unwound as well.”

Another widely watched recession indicator, the yield difference between three-month and 10-year Treasuries, inverted in March and has been negative much of the time since, bedeviling investors who anticipated that the yield curve would steepen as the Federal Reserve began to cut interest rates. The global bid for bonds also inverted the two-year to 10-year U.K. yield curve Wednesday.

This Bloomberg article first appeared on their Internet site at 2:56 a.m. PDT on Wednesday morning — and was updated about ten hours later.  I thank Patrik Ekdahl for sending it our way — and another link to it is here.  The rt.com spin on this is headlined “‘Crazy inverted yield curve’: Trump launches blistering attack on Fed chief Powell” — and I thank George Whyte for that one.


Recession Warnings Pile Up for the Battered Global Economy

Another day, another round of bad news highlighting the risk that the global economy is headed for a serious downturn.

China reported the weakest growth in industrial output since 2002. Germany’s economy shrank as exports slumped, and euro-area production plunged the most in more than three years as the overall expansion cooled. U.S. and U.K. bond markets sent their biggest recession warnings since the global financial crisis.

News from the economic giants dented the market relief in the wake of U.S. President Donald Trump’s decision to delay some tariffs on Beijing. European stocks declined on Wednesday and bonds rose. The gap between two-year and 10-year government debt in both the U.K. and U.S. fell below zero, a shift that typically predates a contraction.

With trade spats, cooling global demand and geopolitical crises all coalescing to hit growth, the world economy is heading for its weakest expansion since the financial crisis. Central banks have rushed in to provide support, with the U.S. Federal Reserve among those cutting interest rates in recent weeks. The European Central Bank is widely expected to follow next month.

The downturn is also ramping up pressure on governments to step up to the plate with fiscal stimulus.

This is another Bloomberg article from Patrik Ekdahl.  It appeared on their website at 3:25 a.m. PDT on Wednesday morning — and another link to it is here.  And here’s another one of Gregory Mannarino’s classic rants from after the market close yesterday — and it’s worth watching.


Subprime Auto Loans Blow Up, Delinquencies at 2009 Level, Biggest 12-Month Surge Since 2010

The auto industry depends on subprime-rated customers that make up over 21% of total auto-loan originations. Without these customers, the wheels would come off the industry. And tightening up lending standards to reduce risks would cause serious damage to the undercarriage. Subprime lending is very profitable – until the loans blow up – because interest rates can be high. But those subprime auto loans are blowing up at rates not seen since the worst days of the Financial Crisis – and these are the good times!

Serious auto-loan delinquencies – 90 days or more past due – in the second quarter, 2019, jumped 47 basis points year-over-year to 4.64% of all outstanding auto loans and leases, according to New York Fed data released today. This is about the same delinquency rate as in Q3 2009, just months after GM and Chrysler had filed for bankruptcy. The 47-basis-point jump in the delinquency rate was the largest year-over-year jump since Q1 2010:

But this time there is no economic crisis. The unemployment rate and unemployment claims are hovering near multi-decade lows, and employers are griping about how hard it is to hire qualified workers without having to raise wages. So, unlike during the Financial Crisis, this surge in the delinquency rate has not been caused by millions of people having lost their jobs. It’s not the economy that did it. It’s the industry.

Of those $1.3 trillion in auto loans, 4.64%, or a record of $60.2 billion, are 90+ days delinquent, which gives the chart below quite an amazing trajectory. But this is not an employment crisis, when millions of people lose their jobs and cannot make the payments on their auto loans. What will this chart look like when the economy turns, and unemployment surges again, and people cannot make their car payments? No one has an appetite for making projections here.

This interesting, but not surprising 3-chart commentary from Wolf showed up on his Internet site on Tuesday sometime — and I thank Richard Saler for pointing it out.  Another link to it is here.


Macy’s Crashes to 9-Year Lows After Slashing Outlook

Macy’s shares are down 14% in the pre-market – the lowest since Feb 2010 – after missing Q2 expectations and cutting its full-year guidance for earnings, blaming weather, fashion, inventory and markdown issues.

Macy’s said diluted earnings for the three months ending in July came in at 28 cents per share, down 47.2% from the same period last year and well shy of the Street consensus forecast of 45 cents per share.

But it gets worse, as the company looks into 2019, Macy’s said it now sees diluted earnings in the region of $2.85 to $3.05 per share, down from a prior forecast of $3.05 to $3.25 per share.

We had a slow start to the quarter and finished below our expectations. Rising inventory levels became a challenge based on a combination of factors: a fashion miss in our key women’s sportswear private brands, slow sell-through of warm weather apparel and the accelerated decline in international tourism,” said CEO Jeff Gennette.

We took markdowns to clear the excess Spring inventory and are entering the Fall season with the right inventory to meet anticipated customer demand.”

Our 2019 strategic initiatives are on track to contribute to sales growth in the back half of the year, and we have plans to drive productivity and improve gross margins,” Gennette added.

Our team has responded quickly to the external environment, course corrected when needed and we remain confident

Cue the tweet from the president blasting Jeff Bezos (will Amazon take over the parade?)

This 1-chart Zero Hedge article showed up on their website at 8:15 a.m. on Wednesday morning EDT — and I thank Brad Robertson for sending it along.  Another link to it is here.


Inflation Has Eroded the U.S. and Chinese Economies — Bill Bonner

One day, the China trade imbalance is such a national emergency that you’re willing to disrupt hundreds of billions in world trade and risk a global recession to set it right. The next, you call it off because it might interfere with the Christmas shopping season.

That was the big news yesterday. Once again, Trump backed off. Scheduled to go “Full Retard” just two and a half weeks from now, he changed his mind.

This completely contradicts claims that the “Chinese pay the tariffs.” But it is consistent with our prediction…

The whole world is in an Inflate-or-Die trap. The world economy lives on cheap credit, not on real earnings.

That is, it depends on rising levels of monetary inflation (aka debt) to keep living in the style to which it has become accustomed.

China plays a key role in the whole inflation hullabaloo.

First, it has brought some 300 million peasants in from the fields so they could make things cheaply, thus keeping consumer price inflation low while asset price inflation runs wild.

Second, in order to build out its production capacity, it became the world’s biggest buyer of iron ore, copper, oil, and other primary resources – helping to keep money flowing to the raw material suppliers.

Third, it took its dollar profits and recycled them into U.S. bonds… helping finance Washington’s borrowing spree without raising interest rates.

This worthwhile commentary from Bill appeared on the bonnerandpartners.com Internet site early on Wednesday morning EDT — and another link to it is here.


Germany on Brink of Recession as Economy Shrinks in Q2

In the latest sign that the economic powerhouse of Europe is teetering on the edge of recession thanks to the trade war between the US and China, Germany’s export-heavy economy shrank by 0.1% in the three months through June, according to official data published Wednesday by Destatis, the country’s federal statistics office.

The disappointing economic data – the second contraction in four quarters – comes one day after the ZEW Survey of financial market experts showed that German economic sentiment in August dropped to its lowest reading since 2011, which is stoking concerns that the German economy could slide into recession during Q3.

The industrial sector tipped the economy into contraction in 2Q, said BBG economic Jamie Rush, and there’s risk of further weakness in the second half of the year.

If there’s any good news to take from this release, it’s that services must have continued to expand, indicating patches of resilience persist.”  Click to enlarge.

Economy Minister Peter Altmaier tried to put a positive spin on the numbers, telling Bild that Germany can avoid a recession if the government responds with the right policies. However, the Q2 data are a “a wake-up call and a warning sign,” Altmaier said.

We are in a phase of weak growth but not yet a recession,” he said. “The simmering trade conflicts are taking their toll and Germany’s export-orientated manufacturing sector is particularly affected” Germany needs “intelligent policies for growth,” including easing the burden on small and mid-sized companies, cutting corporate tax and a “clear plan” for the complete withdrawal of the so-called “Solidarity Tax.”

This 3-chart Zero Hedge story appeared on their Internet site at 6:40 a.m. EDT on Wednesday morning — and it’s another contribution from Brad Robertson.  Another link to it is here.


We Are Struggling:” Air Cargo Performance Slumps Across Major European Air Ports

The German ZEW headline number on Tuesday crashed to -44.1 versus -28.5 expectations and -24.5 last. The indicator measures economic sentiment shows the Germany economy could be teetering on the edge of a manufacturing recession.

The most recent escalation in trade disputes between the U.S. and China, the risk of a full-blown trade war and competitive devaluations, has put extreme pressure on the European economy, that is visible in declining freight performance at major airport cargo hubs.

Data from the Airports Council International (ACI) reports freight performance at Europe’s airports in 1H19 has been faltering, with only 30% of the top ten cargo gateways reporting YoY growth, reported JOC.

In 1H19, Madrid, Barcelona, and London were the only airports to record YoY growth. Frankfurt, the top air cargo hub in Europe, registered a drop of -2.5% YoY.

ACI said cargo gateways at airports across Europe, on an overall basis, recorded a -3.5% fall in 1H19.

Olivier Jankovec, director-general of ACI Europe, said European air freight data experienced significant deterioration in June, indicates that the rest of the summer through early fall could remain in decline. “The slump in freight traffic is where it really bites at the moment,” he said. “And it is not getting any better, with June registering a drop of 7.1%, the worst monthly performance in more than seven years.”

This news item was posted on the Zero Hedge website at 2:45 a.m. EDT on Wednesday morning — and another link to it is here.  A parallel Zero Hedge article from late Tuesday night EDT is headlined “USPS Reports First Drop in Package Volume in Nearly a Decade


Indian consumers defer old gold sales on hopes of further rise in prices

After a buoyant June quarter, Indian consumers are now staying away from fresh sale of old or used gold and jewellery to generate cash in July and August, due to forecasts of a further rise in bullion prices.

Data compiled by the World Gold Council (WGC), the global gold miners’ body, estimated a record 37.9 tonnes of gold recovered from scrap jewellery in April-June 2019 quarter, up 18.4 per cent from 32 tonnes reported in the corresponding period last year.

Since then, gold started moving up in the international market following estimates of US Fed’s interest rate cut, which weakened dollar but strengthened bullion. Analysts started forecasting robust safe-haven buying in gold amid fears of escalation in the ongoing trade war between the United States and China, and geo-political tensions in West Asia following global economic sanctions on Iran.

There has been less consumer turnout for sale of used jewellery since July due primarily to hopes of further price increase. Used jewellery sales have declined by 50-60 per cent in six weeks starting July 1,” said Manoj Kumar Jha, Managing Director, Kamakhya Jewels, a Mumbai-based jewellery maker and retailer.

Echoing a similar response, Anantha Padmanaban, Chairman of All India Gems and Jewellery Domestic Council (GJC) and managing director of Chennai–based NAC Jewellers said, “Indian consumers sell old jewellery only when they need urgent cash. Most had already sold their allocated quantity in the June quarter. Hence, sale of scrap jewellery in July and August has been significantly lower. We estimate a sharp decline in used jewellery sales during September quarter.”

When you see this sort of response from Indian consumers, you know that they now smell a much higher price for gold in the future — and they would be right about that.  This gold-related news item appeared on the business-standard.com Internet site at 9:43 p.m. IST [India Standard Time] on their Wednesday evening, which was 11:13 a.m. in New York — EDT plus 9.5 hours.  I found it on the Sharps Pixley website — and another link to it is here.


China curbs gold imports as trade war heats up

China has severely restricted imports of gold since May, bullion industry sources with direct knowledge of the matter told Reuters, in a move that could be aimed at curbing outflows of dollars and bolstering its yuan currency as economic growth slows.

The world’s second largest economy has cut shipments by some 300-500 tonnes compared with last year – worth $15-25 billion at current prices, the sources said, speaking on condition of anonymity because they are not authorized to speak to the media.

The restrictions come as an escalating trade confrontation with the United States has dragged China’s pace of growth to the slowest in nearly three decades and pressured the yuan to its lowest since 2008.

China is the world’s biggest importer of gold, sucking in around 1,500 tonnes of metal worth some $60 billion last year, according to its customs data – equivalent to one-third of the world’s total supply.

But quotas have been curtailed or not granted at all for several months, seven sources in the bullion industry in London, Hong Kong, Singapore and China said.

There are virtually no import quotas now issued in China,” one source said. In June and July “next to nothing” was imported by banks, they said.

This Reuters story co-filed from London and Beijing, put in an appearance on their Internet site at 10:58 a.m. EDT on Wednesday morning — and was updated a few hours later.  I extracted it from a Zero Hedge article that Brad Robertson sent our way.  Another link to it is here.


Largest pink diamond ever found in Russia to fetch up to $65 million

A 14.83-carat pink oval diamond found and polished by Russia’s Alrosa could fetch up to $65 million when it goes up for sale in November.

The “fancy, vivid” purple-pink stone, cut from a rough found in 2017 at the Ebelyakh deposit in Yakutia, is the largest of its kind ever found in Russia. Before the diamond, named The Spirit of the Rose, was mined, the company’s biggest pink gem had weighed 3.86 carats.

In the last year, Alrosa has worked on boosting revenue from selling rare, coloured diamonds where demand is stable, although it is a niche business.

According to market analysts, the average price for pink, yellow, blue and green stones has risen consistently by 12% a year over the last few decades, driven by consumer demand for the exotic and unusual. This means they are less affected by other factors driving general diamonds’ supply and demand.

This interesting story, complete with a nice photo, was posted on the mining.com Internet site at 10:02 a.m. EDT on Wednesday morning — and it comes to us courtesy of Patrik Ekdahl.  Another link to it is here.


The PHOTOS and the FUNNIES

Here are three more photos from in and around Thacker Regional Park in Hope, B.C. on May 27.  The first is of Thacker Marsh, the second of the salmon-spawning stream that flows out of it — and the third a meadow of yellow wild flowers…not dandelions!  Spring is my favourite season of the year.  Click to enlarge.


The WRAP

It was another quiet rally day in both gold and silver — and if ‘da boyz’ did appear on Wednesday, their light touch showed up at 1 p.m. EDT in New York.  The sell-offs in both platinum and palladium…particularly the latter…appeared much earlier during the day.  It’s just unfortunate/suspicious that their respective equities aren’t being allowed to join in this fun over the last couple of trading days.

Here are the 6-month charts for the four precious metals, plus copper and WTIC.  Both gold and silver closed at new highs for this move up yesterday.  Platinum made a new low for this move down — and palladium gave up all its Tuesday’s gains, plus a bit more.  Most of the gains in copper and WTIC on Tuesday, disappeared as well.  Click to enlarge.

And as I type this paragraph, the London open is less than ten minutes away — and I see that the gold price began to rally at 9 a.m. China Standard Time on their Thursday morning — and was up 5 bucks and change about an hour later. That ran into ‘resistance’ almost right away. It has been edging very quietly lower since — and that sell-off picked up even more steam shortly before 2 p.m. CST — and ‘da boyz’ had gold down over 6 bucks at one point. It has bounced off its current low — and is only down $3.30 on the day as London opens. The price path for silver was guided in a similar manner — and from up 14 cents or so, it’s now down back at unchanged. Platinum hasn’t done much — and is sitting at unchanged currently. Palladium on the other hand rallied quietly until around 10:30 a.m. CST — and has been trading mostly sideways since — and is up 12 dollars as Zurich opens.

Net HFT gold volume is a bit over 83,500 contracts — and there’s 1,554 contracts worth or roll-over/switch volume on top of that. Net HFT silver volume is just under 20,000 contracts — and there’s 1,588 contracts worth of roll-over/switch volume out of September and into future months.

The dollar index opened down 3 basis points once trading commenced at 7:45 p.m. in New York on Wednesday evening, which was 7:45 a.m. China Standard Time on their Thursday morning. From that juncture it didn’t do much until around 10:15 a.m. CST — and it began to edge quietly lower from there. That lasted until around 2:35 p.m. CST, when it blasted back into positive territory by a hair in about five minutes flat. That didn’t last long — and as of 7:45 a.m. BST in London/8:45 a.m. CEST in Zurich, it’s down 2 basis points.


All is certainly not well in the U.S. equity markets, as the biggest ‘Everything Bubble’ in world history is on the brink of imploding…with the U.S. bank stocks — and Deutsche Bank…really taking it on the chin again yesterday.  Here’s the 5-year BKX/KBW Bank Index chart, so you can see this for yourself.  Click to enlarge.

Nothing can save it, along with the rest of the world, from the fate that was cast in stone ever since Nixon took the world off of what was left of the Bretton Woods gold standard.  All we’re waiting for now is the pin or black swan that marks the beginning of the end.  The PPT in the U.S…along with the rest of the central banks of the world…will be helpless when the final implosion commences, if they want to stop it at all, that is.


And as I post today’s missive on the website at 4:10 a.m. EDT, I note that gold is a bit lower as the first hour of London trading draws to a close. It’s down $3.70 the ounce — and silver is now down 5 cents. Platinum is down 2 dollars — and palladium is only up 7 bucks as the first hour of Zurich trading ends.

Gross gold volume is 56,500 contracts — and minus what little roll-over/switch volume there is, net HFT gold volume is about 54,500 contracts. Net HFT silver volume is 24,500 contracts — and there’s 1,905 contracts worth of roll-over/switch volume out of September and into future months.

The dollar index hasn’t done much in the last hour — and as of 8:45 a.m. in London/9:45 a.m. in Zurich, it’s down 5 basis points.

It’s impossible to know if JPMorgan et al. are going to reappear in force like they did on Tuesday.  According to Ted, the Big 8 traders [sans JPMorgan] are already in a record high financial hole with their “open and unrealized losses“…so all we can do is wait it out and see what happens going forward.

That’s it for yet another day — and I’ll see you here tomorrow.

Ed