by Harvey Organ CHINA ADDS 16 TONNES TO ITS OFFICIAL RESERVES/CHINESE CITIZEN DEMAND FOR GOLD IN LAST REPORTING WEEK: 60 TONNES/CHINA BLOWS OUT 115 BILLION USA TREASURIES FROM OFFICIAL RESERVES/COMEX CONTINUES TO BLEED BOTH GOLD AND SILVER FROM ITS VAULTS Good evening Ladies and Gentlemen: Here are the following closes for gold and silver today: Gold: $1120.40 down $0.20 (comex closing time) Silver $14.75 up 21 cents. In the access market 5:15 pm Gold $1121.50 Silver: $14.78 In this commentary I have spent a lot of time discussing Quantitative tightening by China coupled with the threat of an increase in rates by the USA. Both of these countries can be viewed as in the mode of tightening ie. removing liquidity from the markets. The two entities that are increasing QE and thus adding liquidity is the ECB and Japan. The problem with the latter two entities is the fact that they are running out of bonds to monetize so they too may be finished from increasing liquidity. I have provided many important commentaries on this subject. I urge you to take your time read them. You will be glad you did. First, here is an outline of what will be discussed tonight: At the gold comex today we had a poor delivery day, registering 0 notices for 0 ounces Silver saw 140 notices for 700,000 oz. Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 219.99 tonnes for a loss of 83 tonnes over that period. In silver, the open interest rose by 886 contracts despite the fact that silver was down in price by 16 cents on Friday. Again, our banker friends used the opportunity to cover as many silver shorts as they could but failed. The total silver OI now rests at 157,506 contracts In ounces, the OI is still represented by .787 billion oz or 112% of annual global silver production (ex Russia ex China). In silver we had 53 notices served upon for 265,000 oz. In gold, the total comex gold OI surprisingly rose to 419,002 for a gain of 5,125 contracts. We had 0 notices filed for nil oz today. We had a slight change in tonnage at the GLD today/ a slight withdrawal of .24 tonnes and this was to pay for fees./ thus the inventory rests tonight at 682.59 tonnes. The appetite for gold coming from China is depleting not only gold from the LBMA and GLD but also the comex is bleeding gold. It sure looks like 670 tonnes will be the rock bottom inventory in GLD gold. It looks to me that China has taken the last amounts of physical gold from the GLD. I guess the only place left for China to receive physical gold will be the FRBNY and the comex. In silver, we had a big withdrawal in silver inventory at the SLV to the tune of 1.527 million oz/Inventory rests at 323.396 million oz. We have a few important stories to bring to your attention today… 1. Today, we had the open interest in silver rise by 886 contracts up to 157,506 despite the fact that silver was down by 16 cents in price with respect to Friday’s trading. The total OI for gold rose by 5125 contracts to 419,002 contracts, despite the fact that gold was down by $3.10 on Friday. (report Harvey) Continue Reading>>>

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