Ares
26th January 2011, 11:16 AM
Good evening Ladies and Gentlemen:
Gold closed today down $12.20 to 1332.30. Silver fell by 51 cents to $26.81. I promised you a raid and a raid by the banking cartel was in full bloom today. Tonight is the State of the Union speech; tomorrow at 2:15 we hear again from the Fed on QEII which I guarantee you they will continue with their printing presses and tomorrow night is options expiry on the gold contract. The gold contract goes off the board but will trade until all longs that are standing are satisfied.
I have never witnessed the following:
In the gold comex, the open interest plummeted from 580,750 to 498,998 for a loss of 81,752 contracts. The previous record for a drop in open interest is around 28,000 so this is absolutely enormous. I can understand a drop of stay 10,000 contracts but 81,000? Something is seriously going on behind the scenes. The front options expiry month of January saw its open interest fall from 17 to 9. There were zero deliveries the day before so we mysteriously lost 8 contracts who decided to either settle in cash or pitch their longs.
The all important front delivery month of February saw its open interest drop a huge 36,417 contracts or 44% of the drop in total open interest. The estimated volume today was a rather robust 270,.034. The confirmed volume yesterday was also very high at 256,469.
Thus on an confirmed volume of 256,469 contracts we lost 81,752 contracts. Regardless of how or why it happened, this has to be the most bullish anyone can be in gold today with the revelation of this massive hit in open interest. The open interest has fallen from a high of 611,000 contracts to a low of 498,000 on a drop of gold from 1420 to today's 1332. Thus on a huge open interest contraction we lost only 88 dollars. A lot of work for our bankers with marginal effect!
Let us see if we got the same kind of contraction in open interest in silver:
The total silver comex open interest fell by 5368 contracts to 128,228. We did not see the liquidation of open interest in silver as we did in gold. The front options delivery month of January strangely saw its open interest climb from 76 to 179 for a gain of 103 contracts.
Some silver options holders who exercised surfaced for air today. The front delivery month of March saw no liquidation as the open interest here remained resolute. Today reading is 70,067 vs 70,438 yesterday. The estimated volume today was a rather good at 64,361. The confirmed volume for yesterday was high at 70,438. Thus on a confirmed volume of 70,438 we had a contraction in open interest of 5368 or 7.2%.
Here is a chart for Jan 25.2011 on deliveries and inventory changes at the comex:
Silver
Withdrawals from Dealers Inventory
Zero oz
Withdrawals from customer Inventory
465,185oz
Deposits to the dealer Inventory
zero
Deposits to the customer Inventory
333,141 oz
No of oz served (contracts 126
630,000 oz
No of notices to be served 53
265,000 oz
Gold
Withdrawals from Dealers Inventory
zero
Withdrawals from customer Inventory
30,049 oz
Deposits to the dealer Inventory
zero
Deposits to the customer Inventory
26,899 oz
No of oz served (contracts 2
200 oz
No of oz to be served 7
700 oz.
Let us start with gold as it is less volatile than silver.
No gold entered the dealer vaults nor did any gold leave the dealer. All the action was in the customer like you and me. The total customer deposit of gold came to 26,899 oz of gold. The total withdrawal of gold by the customer totalled 30,049.
We thus saw a net withdrawal of 3050 oz of gold.
The comex folk notified us that 2 notices were sent down for servicing for a total of 200 oz of gold. The total number of notices sent down so far this month total 686 or 68600 oz of gold. To obtain what is left, I take the deliveries of today (2) and subtract that total from the open interest in January on gold (9) to give me 7 notices or 700 oz of gold left to be served upon.
Thus the total number of gold oz standing in this non delivery month of January is 68,600 (already served) + 700 oz (to be served) = 69,300 oz (yesterday 70,100 oz ) This equates to 8 contracts lost and thus the missing open interest. These guys were bought off with cash with a huge premium to settle.
And now for the all important commodity of silver:
Again we witnessed massive movements into and out of comex vaults. All movements into and out were in the customer category. Today, the customer received from 3 sources a total of 333,141 oz . Other customers withdrew two lot of silver
one lot of 80,637 and the second lot 384,548 oz. for a total withdrawal of 465,185. If you are keeping score the net withdrawal is 132,044 oz. We got another famous adjustment in the silver category where the dealer repaid a customer 94,767 oz of silver back from a prior loan arrangement.
Get a load of this next announcement; the comex folk notified us that a huge 126 notices were served upon our longs. The total number of notices served thus far this month total 670 or 3,350,000 oz of silver. To obtain what is left to be served upon, I take the deliveries of today at 126 and subtract that figure from today's open interest in January at 179 leaving me with 53 notices left to be served upon for a total of 265,000 oz of silver.
Thus the total number of silver oz standing in this non delivery month of January is as follows:
3,350,000 oz (already served) + 265,000 oz (to be served) = 3,615,000 oz (yesterday's total 3,100,000)
Please note that in the slowest month of the year for deliveries we have so far got total notices representing 3.615 million oz. I just cannot wait until March and see who will be taking on these crooked bankers. Judging from the March comex figures, the long holder refused to budge like their cousin, gold.
There have been rumours that certain hedge funds and sovereign wealth funds are willing to take possession of all gold and silver. In gold it is the February month and in silver it is March. If this is true, the game is over as there will be a default at the comex
which will bring on defaults at the SLV and GLD, and then a default at the Bank of England, and then all the banking system in the USA. I will be watching this closely.
So in the conclusion, we saw a massive contraction in OI with respect to gold, which is in itself extremely bullish as the cartel washed away all of our weakest longs. Those that are now standing after a month of pummelling are in strong hands.
In silver, we saw no liquidation. If the long holders here are sovereign wealth funds, then they are also in strong hands and quite capable of bringing down the usa financial system.
http://harveyorgan.blogspot.com/2011/01/huge-drop-in-comex-gold-open-interest.html
Gold closed today down $12.20 to 1332.30. Silver fell by 51 cents to $26.81. I promised you a raid and a raid by the banking cartel was in full bloom today. Tonight is the State of the Union speech; tomorrow at 2:15 we hear again from the Fed on QEII which I guarantee you they will continue with their printing presses and tomorrow night is options expiry on the gold contract. The gold contract goes off the board but will trade until all longs that are standing are satisfied.
I have never witnessed the following:
In the gold comex, the open interest plummeted from 580,750 to 498,998 for a loss of 81,752 contracts. The previous record for a drop in open interest is around 28,000 so this is absolutely enormous. I can understand a drop of stay 10,000 contracts but 81,000? Something is seriously going on behind the scenes. The front options expiry month of January saw its open interest fall from 17 to 9. There were zero deliveries the day before so we mysteriously lost 8 contracts who decided to either settle in cash or pitch their longs.
The all important front delivery month of February saw its open interest drop a huge 36,417 contracts or 44% of the drop in total open interest. The estimated volume today was a rather robust 270,.034. The confirmed volume yesterday was also very high at 256,469.
Thus on an confirmed volume of 256,469 contracts we lost 81,752 contracts. Regardless of how or why it happened, this has to be the most bullish anyone can be in gold today with the revelation of this massive hit in open interest. The open interest has fallen from a high of 611,000 contracts to a low of 498,000 on a drop of gold from 1420 to today's 1332. Thus on a huge open interest contraction we lost only 88 dollars. A lot of work for our bankers with marginal effect!
Let us see if we got the same kind of contraction in open interest in silver:
The total silver comex open interest fell by 5368 contracts to 128,228. We did not see the liquidation of open interest in silver as we did in gold. The front options delivery month of January strangely saw its open interest climb from 76 to 179 for a gain of 103 contracts.
Some silver options holders who exercised surfaced for air today. The front delivery month of March saw no liquidation as the open interest here remained resolute. Today reading is 70,067 vs 70,438 yesterday. The estimated volume today was a rather good at 64,361. The confirmed volume for yesterday was high at 70,438. Thus on a confirmed volume of 70,438 we had a contraction in open interest of 5368 or 7.2%.
Here is a chart for Jan 25.2011 on deliveries and inventory changes at the comex:
Silver
Withdrawals from Dealers Inventory
Zero oz
Withdrawals from customer Inventory
465,185oz
Deposits to the dealer Inventory
zero
Deposits to the customer Inventory
333,141 oz
No of oz served (contracts 126
630,000 oz
No of notices to be served 53
265,000 oz
Gold
Withdrawals from Dealers Inventory
zero
Withdrawals from customer Inventory
30,049 oz
Deposits to the dealer Inventory
zero
Deposits to the customer Inventory
26,899 oz
No of oz served (contracts 2
200 oz
No of oz to be served 7
700 oz.
Let us start with gold as it is less volatile than silver.
No gold entered the dealer vaults nor did any gold leave the dealer. All the action was in the customer like you and me. The total customer deposit of gold came to 26,899 oz of gold. The total withdrawal of gold by the customer totalled 30,049.
We thus saw a net withdrawal of 3050 oz of gold.
The comex folk notified us that 2 notices were sent down for servicing for a total of 200 oz of gold. The total number of notices sent down so far this month total 686 or 68600 oz of gold. To obtain what is left, I take the deliveries of today (2) and subtract that total from the open interest in January on gold (9) to give me 7 notices or 700 oz of gold left to be served upon.
Thus the total number of gold oz standing in this non delivery month of January is 68,600 (already served) + 700 oz (to be served) = 69,300 oz (yesterday 70,100 oz ) This equates to 8 contracts lost and thus the missing open interest. These guys were bought off with cash with a huge premium to settle.
And now for the all important commodity of silver:
Again we witnessed massive movements into and out of comex vaults. All movements into and out were in the customer category. Today, the customer received from 3 sources a total of 333,141 oz . Other customers withdrew two lot of silver
one lot of 80,637 and the second lot 384,548 oz. for a total withdrawal of 465,185. If you are keeping score the net withdrawal is 132,044 oz. We got another famous adjustment in the silver category where the dealer repaid a customer 94,767 oz of silver back from a prior loan arrangement.
Get a load of this next announcement; the comex folk notified us that a huge 126 notices were served upon our longs. The total number of notices served thus far this month total 670 or 3,350,000 oz of silver. To obtain what is left to be served upon, I take the deliveries of today at 126 and subtract that figure from today's open interest in January at 179 leaving me with 53 notices left to be served upon for a total of 265,000 oz of silver.
Thus the total number of silver oz standing in this non delivery month of January is as follows:
3,350,000 oz (already served) + 265,000 oz (to be served) = 3,615,000 oz (yesterday's total 3,100,000)
Please note that in the slowest month of the year for deliveries we have so far got total notices representing 3.615 million oz. I just cannot wait until March and see who will be taking on these crooked bankers. Judging from the March comex figures, the long holder refused to budge like their cousin, gold.
There have been rumours that certain hedge funds and sovereign wealth funds are willing to take possession of all gold and silver. In gold it is the February month and in silver it is March. If this is true, the game is over as there will be a default at the comex
which will bring on defaults at the SLV and GLD, and then a default at the Bank of England, and then all the banking system in the USA. I will be watching this closely.
So in the conclusion, we saw a massive contraction in OI with respect to gold, which is in itself extremely bullish as the cartel washed away all of our weakest longs. Those that are now standing after a month of pummelling are in strong hands.
In silver, we saw no liquidation. If the long holders here are sovereign wealth funds, then they are also in strong hands and quite capable of bringing down the usa financial system.
http://harveyorgan.blogspot.com/2011/01/huge-drop-in-comex-gold-open-interest.html