Harvey Organ: Greece Turns to Russia!

by Harvey Organ, Silver Doctors Gold and silver were basically treading water up until the 2:00 o’clock FOMC report was issued. Actually gold and silver were whacked 10 minutes after the report. Gold/silver equity shares also took it on the chin today as well. Today we follow developments whether Greece will play ball with the ECB boys or seek the help from Russia and China and default, leaving the west with a mess. Let’s head immediately to see the major data points for today: Good evening Ladies and Gentlemen: Here are the following closes for gold and silver today: Gold: $1285.90 down $5.80 (comex closing time) Silver: $18.07 unchanged (comex closing time) In the access market 5:15 pm Gold $1284.00 silver $17.98 Gold and silver were basically treading water up until the 2:00 o’clock FOMC report was issued. Actually gold and silver were whacked 10 minutes after the report. Gold/silver equity shares also took it on the chin today as well. Today we follow developments whether Greece will play ball with the ECB boys or seek the help from Russia and China and default, leaving the west with a mess. I am convinced that they will seek the latter and we have stories that will convince you that this is where it is heading. 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 247.83 tonnes for a loss of 55 tonnes over that period. In silver, the open interest fell slightly by 8 contracts despite Tuesday’s silver price being up by 10 cents. The total silver OI continues to remain relatively high with today’s reading at 162,440 contracts. It seems that the bankers are very worried about silver as they covered again some of their short positions with the rise in the price of silver. The January silver OI contract rose by 8 contracts up to 15. In gold we again experience a large decrease in OI as we enter an active delivery month.(gold entering February and this is an active month) The drop in OI is also puzzling with the increase in price of gold yesterday to the tune of $12.30. The total comex gold OI rests tonight at 438,279 for a loss of 16,277 contracts. It makes no sense for investors to bail on their contracts if the cost to roll to April is basically zero. The January gold contract fell by 12 contracts down to 4 contracts. The open interest for the upcoming February contract month remains extremely high at 84,617 with 2 days to go. I cannot recall ever seeing such a high OI with 2 days remaining coupled with extremely low volume on the comex. Something sinister is happening behind the gold scene at the comex. Today, we had no changes in gold inventory at the GLD/Inventory at 752.70 tonnes In silver, /SLV inventory remains constant at 319.314 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: All rates moved in the positive direction GOFO (except the one year)/ All months are in contango and thus positive in rates. On January 30/2015 the LBMA will officially stop providing the GOFO rates. Continue Reading>>>

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