4TH LARGEST PRIVATE BANK IN SWITZERLAND,HOTTINGER BANK GOES BELLY UP

by Harvey Organ

Gold:  $1166.80 down $0.20   (comex closing time) Silver $15.86  down 4 cents
In the access market 5:15 pm Gold $1166.80 Silver:  $15.87

We are now entering options expiry week: EXPECT GOLD AND SILVER PRICES TO BE SUBDUED FOR THE REST OF THE WEEK

for the Comex gold and silver: OPTIONS EXPIRE tonight Oct 27.

for the LBMA contracts: OPTIONS EXPIRE ON  Friday/Oct 30

for OTC contracts:OPTIONS EXPIRE ON  Friday Oct 30.

First, here is an outline of what will be discussed tonight:

At the gold comex today,  we had a very good delivery day, registering 38 notices for 3800 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 208.51 tonnes for a loss of 94 tonnes over that period. In silver, the open interest rose by 268 contracts as silver was up 8 cents.  The total silver OI now rests at 169,879 contracts In ounces, the OI is still represented by .850 billion oz or 121% of annual global silver production (ex Russia ex China). In silver we had 0 notices served upon for nil oz. In gold, the total comex gold OI rose by a considerable 1,229 to reach 469,097 contracts.  We had 38 notices filed for 3800 oz today. We had no change in gold inventory at the GLD / thus the inventory rests tonight at 695.54 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,no change in silver inventory   / Inventory rests at 315.553 million oz. We have a few important stories to bring to your attention today… 1. Today, we had the open interest in silver rose by 268 contracts up to 169,879  as silver was up 8 cents with respect to Monday’s trading.   The total OI for gold rose by 1229 contracts to 469,097 contracts as gold was up $3.70 yesterday. Let us head over to the comex:

The total gold comex open interest rose from 467,868 up to 469,097 for a gain of 1229 contracts as gold was up $3.70 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 resumed this criminal activity.  The new active delivery month we enter is October and here the OI fell by 98 contracts down to 463. We had 34 notices filed yesterday so we  lost 65 gold contracts or 6500 oz will not  stand for delivery in this delivery month of October.  The November contract went down by 1 contract down to 252. The big December contract saw it’s OI fall by 2,221 contracts from 316,578 down to 314,357. The estimated volume today (which is just comex sales during regular business hours of 8:20 until 1:30 pm est) was 101,150 which is poor. The confirmed volume yesterday (which includes the volume during regular business hours + access market sales the previous day was weak at 93,392 contracts.
Today we had 38 notices filed for 3800 oz.
And now for the wild silver comex results. Silver OI rose by 268 contracts from 169,611 up t0 169,879 as the price of silver was up 8 cents in price 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 3 contracts down to 8.  We had 0 contracts filed yesterday so we lost 3 silver contract or an additional 15,000 oz will not stand in this non active delivery month of October.  The November contract month saw it’s OI remain constant at 32.
The big December contract saw its OI fall by 517 contracts down to 111,607. The estimated volume today as to number of contracts sold is 25,616 contracts (regular business hours, 8 20 am to 1:30 pm) is poor as the bankers through everything but the kitchen sink at silver trying to contain the price around $16.00 yet they are afraid to commit more non backed paper.  The confirmed volume yesterday (regular plus access market) came in at 27,184 contracts which is excellent in volume.
We had 0 notices filed for 20,000 oz.

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