Silver and gold advance/all commodities rise big time

[Ares]

Good evening Ladies and Gentlemen:



Gold and silver had a stellar day. Gold finished the comex session at $1397.30 up $13.00. Silver had a terrific session up $1.02 to finish at $29. 60.

Let us see the trading at the comex with respect to open interest, volumes, deliveries and inventory changes.

First gold:

The total gold comex open interest fell by 2207 contracts to 589,091. This is basis Friday where we had one of those crazy raids on the comex. The banking cartel did not shake many leaves from either the gold tree nor the silver tree. The front December delivery month saw its open interest decline from 1593 to 1072 reflecting all of the 523 notices sent down. This reduces the open interest as the longs will finally get their metal in due course. The reduction in open interest is 521 contracts which is very close to the 523 delivery notices that were served upon. The estimated volume today was remarkable coming in at 219,245 with no switches. This will be revised upwards tomorrow as they always underestimate volume. The confirmed volume on Friday was a very respectable 152,135 contracts.

Now for silver:

The total silver comex open interest also fell by 935 contracts to 129,712 from Friday's reading of 130,647. The front delivery month OI registered today at 483 dropping 46 contracts from Friday reflecting the 50 notices sent down for servicing. The estimated volume today on the comex was an astoundingly high 111,854. The banking cartel threw everything at the longs trying to keep the price from escalating. The confirmed volume on Friday, ie. the day of the raid was also very high at 63,196. So if I feel that 63,196 is high you can just imagine what traders are wondering when they see an estimated volume at 111,854. By the way, that represents 555 million oz of silver or about 1 years production. Makes sense to me!! It looks like the bankers will try another raid tomorrow as the volume supplied today was just too much. The bankers are trapped and they will do just about anything trying to extricate themselves from their massive short positions in both silver and gold.



Here is a chart on the 13th of December for gold and silver comex inventory changes and deliveries.

<b>Silver</b>

Withdrawals from Dealers Inventory


Zero oz

Withdrawals from customer Inventory


1,245,654oz

Deposits to the dealer Inventory


Zero oz

Deposits to the customer Inventory


Zero oz

No of oz served (contracts29


145,000 oz

No of notices to be served..454


2,227,000oz


<b>Gold</b>

Withdrawals from Dealers Inventory


zero oz

Withdrawals from customer Inventory


55,227

Deposits to the dealer Inventory


zero oz

Deposits to the customer Inventory


zero oz

No of oz served (contracts 284


28400oz

No of oz to be served 788


78800oz

let us start with the silver deliveries and inventory changes:
For the second day in a row we have seen massive withdrawals of silver. Today there were 3 customers who removed 3 separate lots from 3 warehouses:
1.customer no 1 removed 700,514 from a registered vault. 2. customer no 2 removed 544,068 and 3. removed 1072 oz: total 1,245,654 oz.

As I have stated in the past, this huge movement of silver into vaults and out of vaults generally mean that the bankers are trying to put out silver shortages somewhere around the globe. There were no deposits from either the customer nor the dealer. There were no adjustments.
The comex folk notified us that 29 notices were sent down for servicing for a total of 145000 oz. The total number of notices sent down so far this month total 1309 or 6.545 million oz. To get the number of notices that remain to be served, I take today's open interest of 483 and subtract the 29 notices served. Thus 454 notices remain resolute to receive silver metal . In oz this is 2.27 million oz.

Thus the total number of silver oz standing in this delivery month is as follows: 6.545 million oz (already served) + 2.27 million (to be served) = 8.815 million oz.
It seems that the remaining longs are not bitten by the temptation for huge fiat gains. We actually gained 60,000 oz from Friday.

And now for gold:
Again we see zero gold entering as deposits for both the dealer and the customer. However, a customer removed a huge 55,195 oz of gold or almost 2 tonnes.
Actually, there was another 32 oz withdrawal to give the total withdrawal of 55,227 oz. There must be a fire somewhere else with respect to gold. There were no adjustments.

The comex folk advised us that 284 delivery notices were served upon our longs for a total of 28400 oz of gold. The total number of notices served thus far total 10502 or 1,050,200 oz of gold. In order to obtain what notices remain to be served, I take the open interest of December gold at 1072 and subtract 284 delivery notices to get 788 notices or 78800 oz of gold.

Thus the total number of gold oz standing in this delivery month is as follows: 1,050,200 (already served) + 78,800 oz (to be served) = 1,129,000 oz. (we gained 1000 oz from Friday.

Herein is the ETF story for today:

The GLD inventory remained the same as Friday at 1289.33

Total Gold in Trust

Tonnes: 1,289.83

Ounces:41,469,338.46

Value US$:
57,024,053,886.22





Surprisingly, the folk at the SLV decided to remove 1,613,000 oz from its inventory today. This silver, probably was needed to put out fires as many citizens are taking delivery of silver/and buying silver coins. Here is today's inventory levels:



Ounces of Silver in Trust


350,159,419.100

Tonnes of Silver in Trust Tonnes of Silver in Trust


10,891.18

Indicative Basket Silver Amount


48,86





Our ETF's that we follow still command a decent positive to NAV.

The Sprott silver fund PSLV registered a huge positive to NAV of 11.99% reflecting silver's huge strength. (Monday night's reading)

The Sprott gold fund PHYS registered the same positive to NAV as Friday at 3.57% (Monday night closing )

The central fund of Canada which represents equal parts of physical silver and gold registered a positive to NAV of:9.6% Monday night.

end.

Now let us go to the big economic stories of the day.

This is by far the most important: China is feeling the pain of importing inflation into their country:(courtesy of the Associated Press)

[Ares]

China says inflation up 5.1 percent in November

By CARA ANNA
Associated Press

BEIJING (AP) -- China's inflation surged to a 28-month high in November, officials said Saturday, despite government efforts to increase food supplies and end diesel shortages.

The 5.1 percent inflation rate was driven by a 11.7 percent jump in food prices year on year.

The news comes as China's leaders meet for the top economic planning conference of the year and as financial markets watch for a widely anticipated interest rate hike to help bring rapid economic growth to a more sustainable level.

"I think this means that an interest rate hike of 25 basis points is very likely by the end of the year," said CLSA analyst Andy Rothman.

China took the unusual move of releasing the inflation news on a Saturday, giving the markets time over the weekend to digest the news.

"So obviously we knew we were in for quite a large number," said Alistair Thornton, China analyst for IHS Global Insight. Economists had forecast that China's inflation rate would likely rise to over 5 percent in November.

China tried to calm the inflation news. "As long as all departments and regions conscientiously implement the 16 measures by the State Council for making prices stable, prices should be kept basically stable in the near future," said Sheng Laiyun, spokesman for the National Statistics Bureau.

Beijing is trying to rein in food prices by launching efforts to increase production of vegetables and other basic goods. Authorities are cracking down on hoarding and speculation they say are partly to blame for the price rises.

The bureau also said industrial output, an indicator of economic health, was up by 13.3 percent in November year on year. Retail sales were up 18.7 percent, important to the government's effort to build up domestic consumption to drive growth. Neither figure was a surprise.

China's inflation has risen steadily this year despite government efforts to cool an investment boom. It spiked to 4.4 percent in October - well above the official 3 percent target.

Economists blame the price hikes on a flood of money coursing through the economy from stimulus spending and bank lending that helped China recover quickly from the global crisis.

Inflation is especially sensitive in a society where poor families spend up to half their incomes on food. Rising incomes have helped to offset price hikes, but inflation undercuts economic gains that help support the ruling Communist Party's claim to power.

Tom Orlik, an analyst in Beijing for Stone & McCarthy Research Associates, said it was alarming to see price pressure moving beyond food prices. Housing prices were up 5.8 percent and health care prices were up 4 percent.

But Rothman said Chinese consumers with their growing income levels are in a better position to handle prices increases, and he pointed out that food still accounted for about 75 percent of the November price rises.

"So I think inflation continues to be primarily a weather phenomenon, with monetary policy playing a supporting role," he said, adding that recent bad weather had contributed to a shortage of food.

Thornton said one can see food prices tailing off week to week, which should show up in next month's inflation figures.

Inflation has risen well above the 2.5 percent paid on Chinese bank deposits. That has triggered an outflow of cash into stocks and real estate as families seek a better return, fueling fears of a dangerous price boom and bust.

Analysts have said inflationary pressure could spread to other areas unless Beijing hikes rates and tightens credit. They blame money flooding through the economy from Beijing's multibillion-dollar stimulus and two years of massive lending by state banks.

China on Friday ordered its banks to increase their reserves in a move to curb lending.

Communist leaders are trying to guide China's rapid expansion to a more sustainable level after growth eased to 9.6 percent in the three months ended September, down from a post-crisis peak of 11.9 percent in the first quarter.

But any moves that further slow growth could affect the United States, Australia and other economies by cutting demand for their exports of iron, machinery and other goods.

Costs for fuel and other necessities in China have also jumped as supplies have run short.

Coal, which fuels about three-quarters of the country's electricity generation, is a special concern, especially in winter months when it also is used in heating systems in the north.

The National Development and Reform Commission, China's main economic planning agency, has forbidden provinces from limiting shipments of coal beyond their borders, ordering them to ensure stable supplies.

http://harveyorgan.blogspot.com/

[FunnyMoney]

The cracks in the system are starting to show themselves all over the place. Every push down in the metals market is met with an increase in delivery orders. Silver for delivery, gold for delivery, platinum and palladium for delivery are now the most closely watched numbers.

Smart investors have figured that there won't be enough life boats when the music stops and the centralized banking and govt cartels of the world have already promised and/or sold about 400 seats for every actual life boat seat available. In the case of silver, which is both an extremely important industrial commodity AND money (for over 5000 years the most desired medium of exchange around) there is a real concern about future shortages.

The price of silver is the only thing which can possibly slow the demand and stem the looming shortage which must and will come sometime this decade. At $30 per ounce (LOL), even at anywhere less than 3-digits that's simply not going to happen. Industry is on track to consume one-billion ounces of silver per year before the end of this decade is out. In terms of geological timelines, silver supply is on a fast-track toward zero.

[Ponce]

Silver over the weekend was at $28.68 so that today it only went up 0.92 cents and not $1.02.