Harvey Organ: HUGE DERIVATIVES LOSSES COMING From Swiss De-Peg

by Harvey Organ, Silver Doctors What a day. Late last night we got word that two brokerage firms are in serious trouble due to these guys being on the wrong side of the Long USA dollar/short Swiss Franc trade. Then today, many more firms stated that they have lost serious money on the trade. What is interesting on the Swiss unpegging of its currency (the peg was 120 Swiss Franc/1 Euro) was this was done in total secrecy. Christine Lagarde was totally unaware that this was forthcoming. Generally the bankers know in advance but this time everyone was in total darkness. Again we are witnessing central banks not trusting one another. You can bet the farm that there will be huge derivative losses on the Swiss unpegging. Good evening Ladies and Gentlemen: Here are the following closes for gold and silver today: Gold: $1276.90 up $12.20 (comex closing time) Silver: $17.74 up 74 cents (comex closing time) In the access market 5:15 pm Gold $1280.50 silver $17.79 Gold/silver trading: see kitco charts on right side of the commentary. What a day. Late last night we got word that two brokerage firms are in serious trouble due to these guys being on the wrong side of the Long USA dollar/short Swiss Franc trade. Then today, many more firms stated that they have lost serious money on the trade. What is interesting on the Swiss unpegging of its currency (the peg was 120 Swiss Franc/1 Euro) was this was done in total secrecy. Christine Lagarde was totally unaware that this was forthcoming. Generally the bankers know in advance but this time everyone was in total darkness. Again we are witnessing central banks not trusting one another. You can bet the farm that there will be huge derivative losses on the Swiss unpegging. Late in the day we got word that all 4 major Greek systemic banks have asked for emergency funding (ELA) as depositors bail out of all banks. I cannot see how Greece can remain in the Euro Monetary Area. The gold comex today had a poor delivery day, registering 0 notices served for nil oz. Silver comex registered 120 notices for 600,000 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 77 contracts with yesterday’s silver price being up by 11 cents. The total silver OI continues to remains relatively high with today’s reading at 157,013 contracts. However the bankers are still loathe to supply much of the non backed silver paper. The January silver OI contract rose by 74 contracts up to 200. In gold we had a gigantic increase in OI with the huge rise in price of gold yesterday to the tune of $30.30. The total comex gold OI rests tonight at 421,911 for a gain of 18,889 contracts. The January gold contract remains constant at 87 contracts. Today we had a huge addition of gold inventory at the GLD to the tune of 9.56 tonnes/ /Inventory 717.15 tonnes In silver, we had another huge reduction in silver inventory at the SLV of 1.340 million oz SLV’s inventory rests tonight at 325.011 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: Continue Reading>>>

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