MASSIVE STRESSES VISIBLE IN THE GOLD/SILVER COMEX

by Harvey Organ

GLD LOSES 6.25 TONNES TODAY AFTER GAINING 7 TONNES YESTERDAY/EXTREMELY STRANGE LOGISTICALLY FOR THAT TO HAPPEN/MASSIVE STRESSES VISIBLE IN THE GOLD/SILVER COMEX/OPEN INTEREST IN GOLD AND SILVER RISE BIG TIME/COT REPORT SHOWS MASSIVE INCREASE IN COMMERCIAL SHORTS IN BOTH SILVER AND GOLD

Good evening Ladies and Gentlemen: Here are the following closes for gold and silver today:
Gold:  $1183.60 down $4.30   (comex closing time) Silver $16.10  down 5 cents.
In the access market 5:15 pm Gold $1176.84 Silver:  $16.04
First, here is an outline of what will be discussed tonight:

At the gold comex today,  we had a very poor delivery day, registering 50 notices for 5000 ounces  Silver saw 0 notices for nil oz. Several months ago the comex had 303 tonnes of total gold. Today, the total inventory rests at 208.52 tonnes for a loss of 95 tonnes over that period. In silver, the open interest rose by a HUGE 2325  contracts as silver was up by only 5 cents yesterday. I guess in silver nobody of importance wants to leave the arena.  The total silver OI now rests at 167,615 contracts In ounces, the OI is still represented by .838 billion oz or 120% of annual global silver production (ex Russia ex China). In silver we had 0 notice served upon for nil oz. In gold, the total comex gold OI rose to 458,400 for a gain of 6698 contracts.  We had 50 notices filed for 5000 oz today. We had a huge decrease  in tonnage  at the GLD to the tune of 6.25 tonnes /   thus the inventory rests tonight at 700.00 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 no changes in silver inventory at the SLV  / Inventory rests at 315.152 million oz. Let us head over to the comex:

The total gold comex open interest rose from 451,702 up to 458,400  for a  of gain of 6698 contracts as  gold was up $7.80 with respect to yesterday’s trading.   For the past two years, we have strangely witnessed two interesting developments with respect to the gold open interest:  1) total gold comex collapse in OI as we enter an active delivery month, and 2) a continual drop in the amount of gold standing in an active month, and today the latter of these developments continued but a slower pace.  The new active delivery month we enter is October and here the OI fell by 82 contracts down to 934. We had 0 notices filed yesterday so we lost 82 contracts or 8200 additional oz will not stand for delivery.  The November contract went down by 41 contracts down to 232. The big December contract saw it’s OI rise by 5,100 contracts from 308,396  up to 313,496. The estimated volume on today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was  06,604 which is poor. The confirmed volume on yesterday (which includes the volume during regular business hours + access market sales the previous day was fair at 200,152 contracts.
Today we had 50 notices filed for 5000 oz.
And now for the wild silver comex results. Silver OI rose by a considerable 2325  contracts from 165,290 up to 167,615 as the price of silver was up only 5 cents yesterday.  Since October is not an active month, we will not see a huge contraction in the OI standing for delivery. The bankers continue to pull their hair out trying to extricate themselves  from their silver mess (the continued high silver OI with it’s extremely low price, combined with the banker’s massive physical shortfall) as the world senses something is brewing in the silver arena. We enter the October contract month which saw it’s OI fall by 1 contracts down to 12. We had 0 contracts filed yesterday so we neither gained nor lost any silver contracts standing in this non active delivery month of October.  The November contract month saw it’s OI remain constant at 37.
The big December contract saw its OI rise by 826 contracts up to 112,847. The estimated volume today as to number of contracts sold is 34,501 contracts (regular business hours, 8 20 am to 1:30 pm) is excellent as the bankers through everything but the kitchen sink at silver trying to contain the price around 16.00.  The confirmed volume yesterday (regular plus access market) came in at 52,352 contracts which is excellent in volume.
We had 0 notices filed for 5,000 oz.

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