Harvey Organ: Back to Square One: Greek Bank Run in Progress?
by Harvey Organ, Silver Doctors The big story today is the fact that we are back to square one with the Greek situation as Germany considers the Greek proposals on debt reduction, “half baked”. Three of the 4 major Greek banks again went to the well for another 2 billion euros as depositors remove their money from Greek banks and place the said money in their mattresses. 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: $1258.70 down $16.50 (comex closing time) Silver: $17.31 up 8 cents (comex closing time) In the access market 5:15 pm Gold $1260.12 silver $17.31 Gold/silver trading: see kitco charts on right side of the commentary. The big story today is the fact that we are back to square one with the Greek situation as Germany considers the Greek proposals on debt reduction, “half baked”. Three of the 4 major Greek banks again went to the well for another 2 billion euros as depositors remove their money from Greek banks and place the said money in their mattresses. The Australia central bank surprised the world with another cut in their key interest rate. This morning, for the first time ever, the 10 year German bund is lower in yield than the 10 year Japanese bond. There are two commentaries that should be read carefully: the first: Bill Holter is ringing alarm bells as to how these markets are going to implode. the second: David Stockman who gives a terrific account on what is going on inside Greece these past few days. He gives a good history of how Greece has got to the position it is in today. He offers great advise to the leaders of Greece as to the real quantity of bonds that should be subject to a haircut as the bailout in 2012 with additional debt added to the already struggling country was nothing but a fraudulent conveyance of funds. It is a must read.. Following is a brief outline on gold and silver comex figures for today: The gold comex today had a poor delivery day, registering 6 notices served for 600 oz. We have now seen two weak consecutive delivery notice days . Silver comex registered 16 notices for 80,000 oz . Three months ago the comex had 303 tonnes of total gold. Today the total inventory rests at 248.83 tonnes for a loss of 54 tonnes over that period. In silver, the open interest surprisingly rose by a surprising 1,139 contracts as Monday’s silver price was up by only 4 cents. The total silver OI continues to remain relatively high with today’s reading at 164,380 contracts. We had a very small 16 notices filed for 80,000 oz In gold we finally had a small drop in OI as gold was down by $2.30 yesterday. The total comex gold OI rests tonight at 422,491 for a loss of 303 contracts. On the first day notice, we have a shocking surprise in that only 55 notices were filed upon. On this second day notice we again received a tiny 16 notices for 1600 oz. On this third day, only 6 notices. It seems that the boys are having trouble locating some physical gold. Today, we had a small withdrawal 0f 1.79 tonnes of gold inventory at the GLD/Inventory at 764.94 tonnes In silver, /SLV adds a rather large 1.149 million oz of silver inventory to the SLV/Inventory 320.463 We have a few important stories to bring to your attention today… Let’s head immediately to see the major data points for today