Harvey Organ: Mammoth Losses in the $ Trillions for Oil Derivatives!

by Harvey Organ, Silver Doctors Oil continues to be the big topic of the day. At one point in the day, both Brent and WTI traded at identical levels as Europe continues to deflate. The losses in the oil patch are huge due to losses in the mega dollar short plus the oil and other commodities that were bought with the dollar short. The yen carry trade continues to unwind as does the Nikkei/gold cross trade. Expect to see billows of massive smoke from the mammoth losses in the TRILLIONS! Good evening Ladies and Gentlemen: Here are the following closes for gold and silver today: Gold: $1234.30 up $1.60 (comex closing time) Silver: $17.13 up 59 cents (comex closing time) In the access market 5:15 pm Gold $1230.90 silver $17.05 The Ukrainian situation received a lot of press today. As we pointed out to you yesterday, Ukraine has only 7.5 billion dollars of reserves left (or about 5 weeks of imports). The USA stated that they would lend them $2 billion dollars. However Russia will no doubt accelerate it’s repayment of a 3 billion USA loan given in 2013. The Ukraine is nothing but a cash drain on the west. Oil continues to be the big topic of the day. At one point in the day, both Brent and WTI traded at identical levels as Europe continues to deflate. The losses in the oil patch are huge due to losses in the mega dollar short plus the oil and other commodities that were bought with the dollar short. The yen carry trade continues to unwind as does the Nikkei/gold cross trade. Expect to see billows of massive smoke from the mammoth losses in the trillions. Gold/silver trading: see kitco charts on right side of the commentary. The gold comex today had a poor delivery day, registering 0 notices served for nil oz. Silver comex registered 0 notices for nil oz. Three months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 247.23 tonnes for a loss of 56 tonnes over that period. In silver, the open interest rose by 775 contracts with yesterday’s silver price up by 15 cents. The total silver OI continues to remains relatively high with today’s reading at 155,983 contracts. However the bankers are still loathe to supply much of the non backed silver paper. The January silver OI contract remains at 15 contracts. In gold we had a large increase in OI with the rise in price of gold yesterday to the tune of $16.70. The total comex gold OI rests tonight at 399,525 for a gain of 5013 contracts. The January gold contract lowers to 87 contracts. Today, we had no change in tonnage at the GLD / tonnes of gold/Inventory 707.82 tonnes In silver, no change in silver inventory/ SLV’s inventory rests tonight at 327.979 million oz. We have a few important stories to bring to your attention today… Let’s head immediately to see the major data points for today First: GOFO rates: Most rates moved in the positive direction with the exception of the one year rate. . Now the one month GOFO rate left backwardation and it is now in contango along with the other GOFO rates Sometime in January the LBMA will officially stop providing the GOFO rates. Continue Reading>>>

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