Saturday, January 06, 2018 12:04:00 AM
The "Say What" Speakeasy Data Special
Good Morning Ladies and Gentleman
~Welcome To :
~*~Mining & Metals Du Jour~*~ Graveyard Shift~
Nice to have You with us tonight
A real treat in store for us tonight from our award winning MMGYS team
Really kicking it out tonight and with a special "Out of this world" Speakeasy Three Show at the end of this data broadcast.
featuring the GYS Songs of the Years 2016,17 and 2018.
So grab a Cold One or a Hot One Or a Lit One Or Anyone and Hope You EnJoy the Show
MMgys
onwards to the data !
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Jan 5/Gold rises by $1.40 to $1320.90//silver up 4 cents to $17.23/Huge gold comex gain of 30,141 contracts coupled with a huge 17,213 gain in gold EFP/ In silver a comex gain of 2536 contracts coupled with a huge 5894 EFP transfer/
January 5, 2018 · by harveyorgan · in Uncategorized · Leave a comment
GOLD: $1320.90 up $1.40
Silver: $17.23 UP 4 cents
Closing access prices:
Gold $1319.75
silver: $17.23
For comex gold:
JANUARY/
NUMBER OF NOTICES FILED TODAY FOR JANUARY CONTRACT: 4 NOTICE(S) FOR 400 OZ.
TOTAL NOTICES SO FAR: 242 FOR 24200 OZ (0.7527 TONNES),
For silver:
jANUARY
2 NOTICE(S) FILED TODAY FOR
10,000 OZ/
Total number of notices filed so far this month: 507 for 2,535,000 oz
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Bitcoin: BID $15,821/OFFER $15,943 UP $698 (morning)
Bitcoin: BID 16,547/OFFER $16,667 up $1429(CLOSING)
end
Let us have a look at the data for today
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In silver, the total open interest SURPRISINGLY ROSE BY A CONSIDERABLE 2536 contracts from 1921728 RISING TO 191,728 DESPITE YESTERDAY’S TINY 1 CENT FALL IN SILVER PRICING. WE HAD ZERO COMEX LIQUIDATION BUT WITHOUT A DOUBT WE WITNESSED ANOTHER MAJOR BANK SHORT- COVERING OPERATION. NOT ONLY THAT , WE WERE AGAIN NOTIFIED THAT WE HAD ANOTHER HUGE SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE: A HUGE 5894 EFP’S FOR MARCH (AND ZERO FOR OTHER MONTHS) AND THUS TOTAL ISSUANCE OF 5894 CONTRACTS. HOWEVER THE MOVEMENT ACROSS TO LONDON IS NOT AS SEVERE AS IN GOLD AS THERE SEEMS TO BE A MAJOR PLAYER TAKING ON THE BANKS AT THE COMEX. STILL, WITH THE TRANSFER OF 5894 CONTRACTS, WHAT THE CME IS STATING IS THAT THERE IS NO SILVER (OR GOLD) TO BE DELIVERED UPON AT THE COMEX AS THEY MUST EXPORT THEIR OBLIGATION TO LONDON. YESTERDAY WITNESSED EFP’S FOR SILVER ISSUED. ALSO KEEP IN MIND THAT THERE CAN BE A DELAY OF 24 HRS IN THE ISSUING OF EFP’S. I BELIEVE THAT WE MUST HAVE HAD SOME MAJOR BANKER SHORT COVERING AGAIN TODAY.
ACCUMULATION FOR EFP’S/SILVER/ STARTING FROM FIRST DAY NOTICE/FOR MONTH OF JANUARY:
16,210 CONTRACTS (FOR 5 TRADING DAYS TOTAL 16,210 CONTRACTS OR 81.05 MILLION OZ: AVERAGE PER DAY: 3242 CONTRACTS OR 16.210 MILLION OZ/DAY)
RESULT: A GOOD SIZED GAIN IN OI COMEX DESPITE THE TINY 1 CENT RISE IN SILVER PRICE WHICH USUALLY INDICATES HUGE BANKER SHORT-COVERING. WE ALSO HAD A HUGE SIZED SIZED EFP ISSUANCE OF 5894 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON AS FORWARDS. FROM THE CME DATA 5894 EFP’S WERE ISSUED FOR TODAY (FOR MARCH EFP’S AND NONE FOR ALL OTHER MONTHS) FOR A DELIVERABLE FORWARD CONTRACT OVER IN LONDON WITH A FIAT BONUS. WE REALLY GAINED 8430 OI CONTRACTS i.e. 5894 open interest contracts headed for London (EFP’s) TOGETHER WITH A INCREASE OF 2536 OI COMEX CONTRACTS. AND ALL OF THIS HAPPENED WITH THE TINY FALL IN PRICE OF SILVER BY 1 CENT AND A CLOSING PRICE OF $17.19 WITH RESPECT TO YESTERDAY’S TRADING. YET WE STILL HAVE A GOOD AMOUNT OF SILVER STANDING AT THE COMEX.
In ounces AT THE COMEX, the OI is still represented by just UNDER 1 BILLION oz i.e. 0.9710 BILLION TO BE EXACT or 139% of annual global silver production (ex Russia & ex China).
FOR THE NEW FRONT JANUARY MONTH/ THEY FILED: 2 NOTICE(S) FOR 10,000 OZ OF SILVER
In gold, the open interest ROSE BY AN ATMOSPHERIC SIZED 30,141 CONTRACTS UP TO 542,313 WITH THE SMALL RISE IN PRICE OF GOLD WITH YESTERDAY’S TRADING ($2.50). IN ANOTHER HUGE DEVELOPMENT, WE RECEIVED THE TOTAL NUMBER OF GOLD EFP’S ISSUED YESTERDAY FOR TODAY AND IT TOTALED A STRONG SIZED 17,213 CONTRACTS OF WHICH THE MONTH OF FEBRUARY SAW 17,213 CONTRACTS AND APRIL SAW THE ISSUANCE OF 0 CONTRACTS. The new OI for the gold complex rests at 542,313. DEMAND FOR GOLD INTENSIFIES GREATLY AS WE CONTINUE TO WITNESS A HUGE NUMBER OF EFP TRANSFERS TOGETHER WITH THE MASSIVE INCREASE IN GOLD COMEX OI TOGETHER WITH THE TOTAL AMOUNT OF GOLD OUNCES STANDING FOR JANUARY. EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER (BIG RISE IN BOTH GOFO AND SIFO) AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES. IN ESSENCE WE HAVE ANOTHER HUMONGOUS GAIN OF 47,354 OI CONTRACTS: 30,141 OI CONTRACTS INCREASED AT THE COMEX AND A GOOD SIZED 17,213 OI CONTRACTS WHICH NAVIGATED OVER TO LONDON.
YESTERDAY, WE HAD 8798 EFP’S ISSUED.
ACCUMULATION OF EFP’S/ GOLD(EXCHANGE FOR PHYSICAL) FOR THE MONTH OF JANUARY STARTING WITH FIRST DAY NOTICE: 51,490 CONTRACTS OR 5.149 MILLION OZ OR 160.715 TONNES (5 TRADING DAYS AND THUS AVERAGING: 10,298 EFP CONTRACTS PER TRADING DAY OR 1.0298 OZ/DAY)
Result: A HUMONGOUS SIZED INCREASE IN OI WITH THE SMALL SIZED RISE IN PRICE IN GOLD TRADING ON YESTERDAY ($2.50). WE HAD ANOTHER HUGE SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 17,213. THERE OBVIOUSLY DOES NOT SEEM TO BE MUCH PHYSICAL GOLD AT THE COMEX AND YET WE ALSO OBSERVED A HUGE DELIVERY MONTH FOR THE MONTH OF DECEMBER. I GUESS IT EXPLAINS THE HUGE ISSUANCE OF EFP’S…THERE IS HARDLY ANY GOLD PRESENT AT THE GOLD COMEX FOR DELIVERY PURPOSES. IF YOU TAKE INTO ACCOUNT THE 17,213 EFP CONTRACTS ISSUED, WE HAD A NET GAIN IN OPEN INTEREST OF 47,354 contracts:
17,213 CONTRACTS MOVE TO LONDON AND 30,141 CONTRACTS INCREASED AT THE COMEX. (in tonnes, the gain in total oi equates to 147.29 TONNES)
we had: 4 notice(s) filed upon for 400 oz of gold.
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With respect to our two criminal funds, the GLD and the SLV:
GLD: with gold up for 11 consecutive days, we still have no changes in gold inventory
Today, NO CHANGES IN GOLD INVENTORY AT THE GLD/
Inventory rests tonight: 836.32 tonnes.
SLV/DESPITE NO CHANGE IN SILVER PRICING WE HAD A HUGE WITHDRAWAL TODAY.
HUGE CHANGES IN SILVER INVENTORY AT THE SLV/ A WITHDRAWAL OF 2.026 MILLION OZ OZ
INVENTORY RESTS AT 318.423 MILLION OZ/
end
First, here is an outline of what will be discussed tonight:
1. Today, we had the open interest in silver ROSE BY A CONSIDERABLE 2536 contracts from 191,728 UP TO 194,264 (AND now A LITTLE FURTHER FROM THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) DESPITE THE TINY FALL IN PRICE OF SILVER TO THE TUNE OF 1 CENT YESTERDAY. WE HAD WITHOUT A DOUBT ANOTHER MAJOR SHORT COVERING FROM OUR BANKERS AS THEY HAVE CAPITULATED. NOT ONLY THAT BUT OUR BANKERS USED THEIR EMERGENCY PROCEDURE TO ISSUE ANOTHER 5894 PRIVATE EFP’S FOR MARCH (WE DO NOT GET A LOOK AT THESE CONTRACTS AS IT IS PRIVATE BUT THE CFTC DOES AUDIT THEM). EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON. WE HAD NO COMEX SILVER COMEX LIQUIDATION. BUT, IF WE TAKE THE GOOD OI GAIN AT THE COMEX OF 2536 CONTRACTS TO THE 5894 OI TRANSFERRED TO LONDON THROUGH EFP’S WE OBTAIN A GAIN OF 8430 OPEN INTEREST CONTRACTS DESPITE THE MAJOR BANKER SHORT COVERING. WE STILL HAVE A GOOD AMOUNT OF SILVER OUNCES THAT ARE STANDING FOR METAL IN JANUARY (SEE BELOW). THE NET GAIN TODAY IN OZ: 42.150 MILLION OZ!!!
RESULT: A GOOD SIZED INCREASE IN SILVER OI AT THE COMEX DESPITE THE TINY SIZED FALL OF 1 CENT IN PRICE (WITH RESPECT TO YESTERDAY’S TRADING). BUT WE ALSO HAD ANOTHER 5894 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE GOOD SIZED AMOUNT OF SILVER OUNCES STANDING FOR JANUARY, DEMAND FOR PHYSICAL SILVER INTENSIFIES AS WE WITNESS MAJOR BANK SHORT COVERING ACCOMPANIED BY INCREASES IN GOFO AND SIFO RATES INDICATING SCARCITY.
(report Harvey)
.
2.a) The Shanghai and London gold fix report
(Harvey)
2 b) Gold/silver trading overnight Europe, Goldcore
(Mark O’Byrne/zerohedge
and in NY: Bloomberg
3. ASIAN AFFAIRS
3a)THAILAND/SOUTH KOREA/NORTH KOREA
i)North Korea
b) REPORT ON JAPAN
3 c CHINA
4. EUROPEAN AFFAIRS
5. RUSSIAN AND MIDDLE EASTERN AFFAIRS
6 .GLOBAL ISSUES
7. OIL ISSUES
8. EMERGING MARKET
9. PHYSICAL MARKETS
10. USA stories which will influence the price of gold/silver
Let us head over to the comex:
The total gold comex open interest ROSE BY ATMOSPHERIC 30,141 CONTRACTS UP to an OI level of 542,313 WITH THE SMALL SIZED RISE IN THE PRICE OF GOLD ($2.50 GAIN WITH RESPECT TO YESTERDAY’S TRADING). OBVIOUSLY WE HAD ZERO COMEX GOLD LIQUIDATION WITH ANOTHER STRONG GAIN IN TOTAL OPEN INTEREST AS WE WITNESSED ANOTHER HUMONGOUS COMEX TRANSFER THROUGH THE EFP ROUTE. THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS. THE CME REPORTS THAT 17,213 EFP’S WERE ISSUED FOR FEBRUARY AND 0 EFP’s FOR APRIL: TOTAL 8430 CONTRACTS. THE OBLIGATION STILL RESTS WITH THE BANKERS ON THESE TRANSFERS.
ON A NET BASIS IN OPEN INTEREST WE GAINED TODAY: 47,354 OI CONTRACTS IN THAT 17,213 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED 30,141 COMEX CONTRACTS. NET GAIN: 47,354 contracts OR 4,735,400 OZ OR 147.27 TONNES
Result: A STRONG SIZED INCREASE IN COMEX OPEN INTEREST WITH THE SMALL RISE IN THE PRICE OF YESTERDAY’S GOLD TRADING (2.50.) WE HAD NO GOLD LIQUIDATION ANYWHERE. TOTAL OPEN INTEREST GAIN ON THE TWO EXCHANGES: 47,354 OI CONTRACTS…
We have now entered the active contract month of JANUARY. The open interest for the front month of JANUARY saw it’s open interest FALL by 14 contracts DOWN to 183. We had 16 notices served on Friday so we GAINED 2 contracts or 200 additional oz of gold will stand in this non active month AND AGAIN WE WITNESS QUEUE JUMPING .
FEBRUARY saw a GAIN of 7980 contacts DOWN to 370,433. March saw a gain of 10 contracts up to 67. April saw a GAIN of 18,826 contracts UP to 476,468.
We had 4 notice(s) filed upon today for 400 oz
PRELIMINARY VOLUME TODAY ESTIMATED; 329,333
FINAL NUMBERS CONFIRMED FOR YESTERDAY: 412,858
comex gold volumes are RISING AGAIN
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And now for the wild silver comex results.
Total silver OI ROSE BY A CONSIDERABLE 2536 CONTRACTS FROM 191,727 UP TO 194,264 DESPITE YESTERDAY’S TINY 1 CENT FALL IN PRICE WHICH SEEMS TO INDICATE WE HAD ANOTHER MAJOR ROUND OF BANKER SHORT-COVERING. NOT ONLY THAT, WE HAD ANOTHER HUMONGOUS SIZED 5894 EMERGENCY EFP’S FOR MARCH ISSUED BY OUR BANKERS (ZERO FOR ALL OTHER MONTHS) TO COMEX LONGS WHO RECEIVED A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON: THE TOTAL EFP’S ISSUED: 5894. IT SURE LOOKS LIKE THE SILVER BOYS HAVE STARTED TO MIGRATE TO LONDON FROM THE START OF DELIVERY MONTH AND CONTINUING RIGHT THROUGH UNTIL FIRST DAY NOTICE JUST LIKE WE ARE WITNESSING TODAY. USUALLY WE NOTED THAT CONTRACTION IN OI OCCURRED ONLY DURING THE LAST WEEK OF AN UPCOMING ACTIVE DELIVERY MONTH. THIS PROCESS HAS JUST BEGUN IN EARNEST IN SILVER STARTING IN SEPTEMBER. HOWEVER, IN GOLD, WE HAVE BEEN WITNESSING THIS FOR THE PAST 2 YEARS. WE HAD ZERO LONG COMEX SILVER LIQUIDATION BUT A RISE IN TOTAL SILVER OI AS IT SEEMS THAT WE ARE WITNESSING SOME MAJOR BANKER SHORT-COVERING. WE ARE ALSO WITNESSING A FAIR AMOUNT OF SILVER OUNCES STANDING FOR COMEX METAL IN THIS NON ACTIVE JANUARY AS WELL AS THAT CONTINUAL MIGRATION OF EFPS OVER TO LONDON. ON A PERCENTAGE BASIS THERE ARE MORE EFP’S ISSUED FOR GOLD THAN SILVER AS IT SEEMS THAT A MAJOR PLAYER WISHES TO TAKE ON THE CROOKED COMEX SHORTS. ON A NET BASIS WE GAINED 8430 OPEN INTEREST CONTRACTS:
2536 CONTRACT GAIN AT THE COMEX COMBINING WITH THE ADDITION OF 2536 OI CONTRACTS NAVIGATING OVER TO LONDON.
NET GAIN: 8430 CONTRACTS
We are now in the poor non active delivery month of January and here the OI GAIN by 17 contracts UP to 41. We had 0 notices served upon yesterday, so we GAINED 17 contracts or an additional 85,000 oz will stand for delivery
February saw a GAIN OF 2 OI contracts RISING TO 182. The March contract gained 1819 contracts up to 151,389.
We had 2 notice(s) filed for 10,000 oz for the January 2018 contract for silver
INITIAL standings for JANUARY
Jan 5/2018.
Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
N/A oz
Deposits to the Dealer Inventory in oz nil oz
Deposits to the Customer Inventory, in oz
nil oz
No of oz served (contracts) today
4 notice(s)
400 OZ
No of oz to be served (notices)
179 contracts
(17,900 oz)
Total monthly oz gold served (contracts) so far this month
242 notices
24200 oz
0.7527 tonnes
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz
I CANNOT RETRIEVE COMEX DATA MOVEMENTS
For JANUARY:
Today, 0 notice(s) were issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 4 contract(s) of which 4 notices were stopped (received) by j.P. Morgan dealer and 0 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account.
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To calculate the INITIAL total number of gold ounces standing for the JANUARY. contract month, we take the total number of notices filed so far for the month (242) x 100 oz or 24200 oz, to which we add the difference between the open interest for the front month of JAN. (183 contracts) minus the number of notices served upon today (4 x 100 oz per contract) equals 42,100 oz, the number of ounces standing in this active month of JANUARY
Thus the INITIAL standings for gold for the JANUARY contract month:
No of notices served (242 x 100 oz or ounces + {(183)OI for the front month minus the number of notices served upon today (4 x 100 oz which equals 42,100 oz standing in this active delivery month of JANUARY (1.303 tonnes). THERE IS 33.29 TONNES OF REGISTERED GOLD AVAILABLE FOR DELIVERY SO FAR.
WE GAINED TWO CONTRACTS OR AN ADDITIONAL 200 OZ WILL STAND IN THIS NON ACTIVE DELIVERY MONTH OF JANUARY
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ON FIRST DAY NOTICE FOR JANUARY 2017, THE INITIAL GOLD STANDING: 3.904 TONNES STANDING
BY THE END OF THE MONTH: FINAL: 3.555 TONNES STOOD FOR COMEX DELIVERY AS THE REMAINDER HAD TRANSFERRED OVER TO LONDON FORWARDS.
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Total dealer inventory 1,070,309.229 or 33.29 tonnes (dealer gold continues to disappear)
Total gold inventory (dealer and customer) = 9,143,181.135 or 284.39 tonnes
I have a sneaky feeling that these withdrawals of gold in kilobars are being used in the hypothecating process and are being used in the raiding of gold!
The gold comex is an absolute fraud. The use of kilobars and exact weights makes the data totally absurd and fraudulent! To me, the only thing that makes sense is the fact that “kilobars: are entries of hypothecated gold sent to other jurisdictions so that they will not be short with their underwritten derivatives in that jurisdiction. This would be similar to the rehypothecated gold used by Jon Corzine at MF Global.
IN THE LAST 14 MONTHS 70 NET TONNES HAS LEFT THE COMEX.
end
And now for silver
AND NOW THE DECEMBER DELIVERY MONTH
DECEMBER FINAL standings
Jan 5/ 2018
Silver Ounces
Withdrawals from Dealers Inventory nil oz
Withdrawals from Customer Inventory
N/A oz
Deposits to the Dealer Inventory
nil
oz
Deposits to the Customer Inventory
N/A oz
Scotia
No of oz served today (contracts)
2
CONTRACT(S)
(10,000 OZ)
No of oz to be served (notices)
39 contract
(195,000 oz)
Total monthly oz silver served (contracts) 507 contracts
(2,535,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month NIL oz
Total accumulative withdrawal of silver from the Customer inventory this month
CANNOT RETRIEVE COMEX INVENTORY DATA
The total number of notices filed today for the JANUARY. contract month is represented by 2 contract(s) FOR 10,000 oz. To calculate the number of silver ounces that will stand for delivery in JANUARY., we take the total number of notices filed for the month so far at 507 x 5,000 oz = 2,535,000 oz to which we add the difference between the open interest for the front month of JAN. (41) and the number of notices served upon today (2 x 5000 oz) equals the number of ounces standing.
.
Thus the INITIAL standings for silver for the JANUARY contract month: 507(notices served so far)x 5000 oz + OI for front month of JANUARY(41) -number of notices served upon today (2)x 5000 oz equals 2,730,000 oz of silver standing for the JANUARY contract month. This is VERY GOOD for this NONACTIVE delivery month of JANUARY. WE GAINED 17 CONTRACTS OR AN ADDITIONAL 85,000 OZ WILL STAND FOR DELIVERY IN THIS NON ACTIVE DELIVERY MONTH OF JANUARY.
ON FIRST DAY NOTICE FOR THE JANUARY 2017 CONTRACT WE HAD 3,790 MILLION OZ STAND.
THE FINAL STANDING: 3,730 MILLION OZ
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ESTIMATED VOLUME FOR TODAY: 82,640
CONFIRMED VOLUME FOR FRIDAY: 104,064 CONTRACTS
YESTERDAY’S CONFIRMED VOLUME OF 104,064 CONTRACTS EQUATES TO 520 MILLION OZ OR 74.2% OF ANNUAL GLOBAL PRODUCTION OF SILVER
COMMODITY LAW SUGGESTS THAT OPEN INTEREST SHOULD NOT BE MORE THAN 3% OF ANNUAL GLOBAL PRODUCTION. THE CROOKS ARE SUPPLYING MASSIVE PAPER TRYING TO KEEP SILVER IN CHECK.
Total dealer silver: 59.182 million
Total number of dealer and customer silver: 240.232 million oz
The record level of silver open interest is 234,787 contracts set on April 21./2017 with the price at that day at $18.42
The previous record was 224,540 contracts with the price at that time of $20.44
end
NPV for Sprott and Central Fund of Canada
1. Central Fund of Canada: traded at Negative 2.4 percent to NAV usa funds and Negative 2.2% to NAV for Cdn funds!!!!
Percentage of fund in gold 62.8%
Percentage of fund in silver:37.0%
cash .+.2%( Jan 4/2018)
2. Sprott silver fund (PSLV): NAV RISES TO -0.91% (Jan 4/2018)??????????????????????????????
3. Sprott gold fund (PHYS): premium to NAV RISES TO -0.50% to NAV (Jan 4 /2018 )
Note: Sprott silver trust back into NEGATIVE territory at -0.91%-/Sprott physical gold trust is back into NEGATIVE/ territory at -0.50%/Central fund of Canada’s is still in jail but being rescued by Sprott.
Sprott WINS hostile 3.1 billion bid to take over Central Fund of Canada
(courtesy Sprott/GATA)
END
And now the Gold inventory at the GLD
Jan 5/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 836.32 TONNES
Jan 4/2018/no change in gold inventory at the GLD/Inventory rests at 836.32 tonnes
Jan 3/a huge withdrawal of 1.18 tonnes of gold from the GLD/Inventory rests at 836.32 tonnes
Jan 2/2018/no changes in gold inventory at the GLD/inventory rests at 837.50 tonnes
Dec 29/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 837.50 TONNES
Dec 28/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 837.50 TONNES
Dec 27/NO CHANGES IN GOLD INVENTORY AT THE GLD/ INVENTORY RESTS AT 837.50 TONNES
Dec 26/no change in gold inventory at the GLD
Dec 22/ A DEPOSIT OF 1.48 TONNES OF GOLD INTO GLD INVENTORY/INVENTORY RESTS AT 837.50 TONNES
Dec 21' NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 836.02 TONNES
Dec 20/DESPITE THE GOOD ADVANCE IN PRICE TODAY/THE CROOKS RAIDED THE COOKIE JAR TO THE TUNE OF 1.18 TONNES/INVENTORY RESTS AT 836.02 TONNES
Dec 19/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 837.20 TONNES
Dec 18 SHOCKINGLY AFTER TWO GOOD GOLD TRADING DAYS, THE CROOKS RAID THE COOKIE JAR BY THE SUM OF 7.09 TONNES/INVENTORY RESTS AT 837.20 TONNES
Dec 15/NO CHANGES IN GOLD INVENTORY/RESTS AT 844.29 TONNES.
Dec 14/a good sized gain of 1.48 tonnes of gold into the GLD/inventory rests at 844.29 tones
Dec 13/no changes in gold inventory at the GLD/inventory rests at 842.81 tonnes
Dec 12/SURPRISINGLY NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 842.81 TONNES
Dec 11/SURPRISINGLY NO CHANGES IN GOLD INVENTORY AT THE GLD DESPITE THE CONSTANT RAIDS ON GOLD/INVENTORY RESTS AT 842.81 TONNES
Dec 8/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 842.81 TONNES
Dec 7/A BIG WITHDRAWAL OF 2.66 TONNES FROM THE GLD/INVENTORY RESTS AT 842.81 TONNES
Dec 6/No changes in GOLD inventory at the GLD/Inventory rests at 845.47 tonnes
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Jan 5/2018/ Inventory rests tonight at 836.32 tonnes
*IN LAST 305 TRADING DAYS: 104.65 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 240 TRADING DAYS: A NET 52.66 TONNES HAVE NOW BEEN ADDED INTO GLD INVENTORY.
*FROM FEB 1/2017: A NET 211.754TONNES HAVE BEEN ADDED.
end
Now the SLV Inventory
Jan 5/DESPITE NO CHANGE IN SILVER PRICING, WE HAD A HUGE WITHDRAWAL OF 2.026 MILLION OZ/INVENTORY RESTS AT 318.423 MILLION OZ.
Jan 4.2018/a slight withdrawal of 180,000 oz and this would be to pay for fees/inventory rests at 320.449 million oz/
Jan 3/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 320.629 MILLION OZ.
Jan 2/WITH SILVER UP DRAMATICALLY THESE PAST 4 TRADING DAYS, THE FOLLOWING MAKES NO SENSE: WE HAD A WITHDRAWAL OF 2.83 MILLION OZ FROM THE SLV
INVENTORY RESTS AT 320.629 MILLION OZ/
Dec 29/no changes in silver inventory at the SLV/inventory rests at 323.459 million oz/
Dec 28/DESPITE THE RISE IN SILVER AGAIN BY 13 CENTS, WE LOST ANOTHER 1,251,000 OZ OF SILVER FROM THE SILVER.
Dec 27/WITH SILVER UP AGAIN BY 17 CENTS, WE LOST ANOTHER 802,000 OZ OF SILVER INVENTORY/WHAT CROOKS/INVENTORY RESTS AT 324.780 MILLION OZ/
Dec 26/no change in silver inventory at the SLV./Inventory rests at 325.582
Dec 21/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 326.227 MILLION OZ/
Dec 20/INVENTORY REMAINS CONSTANT AT 326.337 MILLION OZ (COMPARE WITH GLD)
Dec 19/SILVER INVENTORY REMAINS CONSTANT AT 326.337 MILLION OZ
Dec 18.2017//SILVER INVENTORY CONTINUES TO REMAIN PAT./INVENTORY REMAINS AT 326.337 MILLION OZ/
INVENTORY RESTS AT 326.337 TONNES
Dec 15/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 326.337 MILLION OZ/
Dec 14/a small withdrawal of 377,000 oz and that usually means to pay for fees./inventory rests at 326.337 million oz/
Dec 13/no change in silver inventory at the SLV/Inventory rests at 326.714 million oz/
Dec 12/WOW!ANOTHER STRANGE ONE: SILVER HAS BEEN DOWN FOR 10 CONSECUTIVE DAYS, YET THE SLV ADDS ANOTHER 1.415 MILLION OZ TO ITS INVENTORY. IN THAT 10 DAY PERIOD, SLV ADDS 9.584 MILLION OZ/
INVENTORY RESTS AT 326.714 MILLION OZ
Dec 11/WOW!! ANOTHER STRANGE ONE: SILVER DESPITE BEING DOWN FOR 9 CONSECUTIVE TRADING DAYS ADDS ANOTHER 944,000 OZ TO ITS INVENTORY. FROM NOV 30 UNTIL TODAY SILVER HAS BEEN DOWN EVERY DAY. HOWEVER THE INVENTORY OF SILVER HAS RISEN 8.169 MILLION OZ.
Dec 8/A HUGE DEPOSIT OF 2.642 MILLION OZ/INVENTORY RESTS AT 324.355 MILLION OZ/
Dec 7/strange!! with the continual whacking of silver, no change in silver inventory at the SLV/Inventory rests at 321.713
Dec 6/no change in silver inventory at the SLV/Inventory remains at 21.713 million oz.
Jan 5/2017:
Inventory 318,423 million oz
end
6 Month MM GOFO
Indicative gold forward offer rate for a 6 month duration
+ 1.79%
12 Month MM GOFO
+ 1.98%
30 day trend
end
At 3:30 pm we receive our COT report which is basically useless due to the huge transfer of contracts through the EFP route
Gold COT Report – Futures
Large Speculators Commercial Total
Long Short Spreading Long Short Long Short
241,428 78,160 60,048 155,104 332,704 456,580 470,912
Change from Prior Reporting Period
38,838 11,518 2,405 -365 27,766 40,878 41,689
Traders
170 86 74 45 52 246 183
Small Speculators
Long Short Open Interest
44,151 29,819 500,731
3,383 2,572 44,261
non reportable positions Change from the previous reporting period
COT Gold Report – Positions as of Tuesday, January 2, 2018
Our large speculators:
those large specs who have been long in gold added 38,838 contracts to their long side
those large specs who have been short in gold added 11,518 contracts to their short side
Our commercials;
those commercials who are long in gold pitched 365 contracts from their long side
those commercials who have been short in gold added a monstrous 27,766 contracts to their short side (and that does not include the efp transfers)
our small specs:
those small specs that have been long in gold added 3383 contracts to their long side
those small specs that have been short in gold added 2572 contracts to their short side
Silver COT Report: Futures
Large Speculators Commercial
Long Short Spreading Long Short
75,127 52,377 20,600 70,480 107,672
1,114 -16,988 528 -6,566 9,887
Traders
105 47 46 39 37
Small Speculators Open Interest Total
Long Short 192,423 Long Short
26,216 11,774 166,207 180,649
-2,974 -1,325 -7,898 -4,924 -6,573
non reportable positions Positions as of: 164 11
Our large speculators:
those large specs that have been long in silver added 1114 contracts to their long side
those large specs that have been short in silver covered a monstrous 16,988 contracts
Our commercials;
those commercials that have been long in silver pitched a huge 6566 contracts from their long side
those commercials that have been short in silver added a net 9887 contracts
our small specs:
those small specs that have been long in silver pitched 2974 contracts
those small specs that have been short in silver covered 1325 contracts.
Major gold/silver trading /commentaries for FRIDAY
GOLDCORE/BLOG/MARK O’BYRNE.
GOLD/SILVER
Spectre, Meltdown Highlight Online Banking and Digital Gold Risks
5, January
Spectre and Meltdown Highlight Online Banking and Digital Gold Risks
– Critical hardware flaw breaks basic security: risks to online banking & digital assets
– Nearly all computers worldwide, smartphones and other devices – exposed to major security risk
– Two separate security flaws identified in devices powered by Intel, ARM and AMD chips
– Vulnerability known about for six months by tech insiders
– Cyber crime represents the biggest transfer of economic wealth in history
– Cyber crime damage costs to hit $6 trillion annually by 2021
– All digital assets and information at risk
– Crypto currencies, digital assets including gold exposed
– Physical gold’s benefits highlighted
Editor: Mark O’Byrne
The Spectre and Meltdown double whammy this week underlines the increasing risks in the global computing infrastructure and our online banking and digital asset world of banking and finance.
On Wednesday, came news that anyone who uses a computer, smartphone, tablet etc has been introduced to the concept of ‘hacked hardware’. Two separate security flaws, named ‘Meltdown’ and ‘Spectre’ have been identified in devices powered by Intel, ARM and AMD chips. The flaws make pretty much any device hackable.
Not only are our ‘things’ affected but data centres and devices that connect to the cloud are also at risk.
The problem was identified by Google engineers and has been known about for approximately six months. Whilst no attacks taking advantage of these security flaws have yet been identified, we are talking about an unprecedented number of computers, devices, people and companies, including banks, being exposed.
The BBC estimates that ‘for personal computers alone: there are 1.5 billion in use today (desktop and laptop combined) and around 90% are powered by Intel chips, IDC estimates. That means exposure to the Meltdown bug is potentially huge.’
Meltdown affects laptops, desktop computers and internet servers with Intel chips. However, Spectre is an arguably bigger threat. It affects chips powered by Intel, ARM and AMD. in smartphones, tablets and computers.
Why is this a big deal?
The weaknesses leave any device with affected chips vulnerable to both hacking and slowdown in performance. The flaw could give cyberattackers unauthorized access to sensitive data.
This is scary as for years users have been used to warnings by the tech industry that there are security holes in software. These are regularly taken advantage of by hackers. But we are now exposed to a flaw in hardware. Hardware troubles are arguably much harder to fix and newer impossible to replace given their extensive presence around the world.
Scott Borg, director of the U.S. Cyber Consequences Unit, is most concerned about hardware vulnerabilities over software ones. He sees the biggest threat in industry.
Borg recently spoke at Stanford University and explained the shift in hackers’ mentality:
“Initially,” he said, “[hackers] focused on operations control, monitoring different locations from a central site. Then they moved to process control, including programmable logic controllers and local networks. Then they migrated to embedded devices and the ability to control individual pieces of equipment…You can imagine countless attacks manipulating physical things,”
Why are hackers turning to hardware over software? Surely software has a greater reach? No, argues Borg. The decision to move to hardware is purely economic. Stock manipulation is a key way cyberattackers can take advantage of a hardware malfunction.
“There is a limit to how much you can steal from credit card fraud; there is no limit to how much you can make in taking a position in a market and making something happen,” Borg says. “You can short a company’s stock in a highly leveraged way, then attack the company in a way that makes stock fall, reinvest on the way down, and multiply your investment hundreds of times. This is a big growth area for cybercrime; it has been done multiple times already, but it is really just starting to get under way. This is going to be a huge area for cybercriminals.”
Previously individuals were worried about the clicking on a dodgy link or downloading an unknown file. Worst case we believed was credit card or identity fraud. Now, we’re looking at elements of our portfolio being attacked – imagine if you have shares affected by this latest round of news regarding chip security.
We are also, very seriously, facing an attack on our homes.
Nowhere is safe
This Christmas showed the smart home had arrived. Sales of Amazon’s Alexa and Google’s Echo made headlines as families realised they could have a smart home for just $500. The total spend on Internet of Things products and services was expected to reach $2 trillion by the end of last month.
Gadgets such as wearables and smart fridges make our busy lives more productive. They’re supposed to free up time for us to do ‘fun’ things but they arguably just create space for more tasks we create for ourselves, one of those being securing our home from hackers.
By the end of 2017 there were expected to be 8.4 billion internet-enabled devices in use, increasing to 20.4 billion by the end of 2020. This all sounds great but its a goldmine for hackers.
Which? carried out a series of tests in a ‘smart home’ last year. Eight out of the fifteen devices were found to have security vulnerabilities.
We can even be taken in by freebies. In 2006 McDonald’s Japan put their customers at major financial risk just by giving them a free mp3 player. Popular Science explains:
In late summer of 2006, the Japanese division of McDonald’s decided to run a new promotion. When customers ordered a Coca-Cola soft drink, they would receive a cup with a code. If they entered that code on a designated website and were among 10,000 lucky winners, they would receive an MP3 player pre-loaded with 10 songs.
Cleverly constructed, the promotion seemed destined for success. Who doesn’t like a Coke and a free MP3 player? But there was one problem the marketers at McDonald’s could not anticipate: In addition to 10 free songs, the music players contained QQPass malware. The moment winners plugged their players into a computer, the Trojan horse slipped undetected into their system and began logging keystrokes, collecting passwords, and gathering personal data for later transmission.
This is just one example but a good one of how easy it is for us to be affected by vulnerable hardware. These microchips that are under threat are in our fridges, our cars, our phone, planes and even missiles.
Popular Science goes onto explain:
Even hardware generally considered innocuous could be exploited by hackers and used for covert acts. Modified third-party phone chargers have served as vehicles for malware, as have game consoles. In the world of hardware hacking, any smart device—a refrigerator, clock, even a wearable fitness monitor—could be weaponized.
Such covert actions could inflict even greater harm were they to work their way into the backbone of the Internet: the servers and other networking equipment that comprise the infrastructure of the IT world. Instead of gathering embarrassing emails from a handful of executives, hackers with compromised servers could monitor most of the world’s Internet messages. As companies such as Huawei Technologies and ZTE Corporation—both of which supply telecommunication equipment and have ties to the Chinese military—continue to grow, so too will concerns about network security.
Significant cost
The Cybersecurity Business Report offers the following stats that outline just how vulnerable we are as society and financially:
1. Cyber crime damage costs to hit $6 trillion annually by 2021. It all begins and ends with cyber crime. Without it, there’s nothing to cyber-defend. The cybersecurity community and major media have largely concurred on the prediction that cyber crime damages will cost the world $6 trillion annually by 2021, up from $3 trillion just a year ago. This represents the greatest transfer of economic wealth in history, risks the incentives for innovation and investment, and will be more profitable than the global trade of all major illegal drugs combined.
2. Cybersecurity spending to exceed $1 trillion from 2017 to 2021. The rising tide of cyber crime has pushed information security (a subset of cybersecurity) spending to more than $86.4 billion in 2017, according to Gartner. That doesn’t include an accounting of internet of things (IoT), industrial IoT, and industrial control systems (ICS) security, automotive security, and other cybersecurity categories. Global spending on cybersecurity products and services are predicted to exceed $1 trillion over the next five years, from 2017 to 2021.
3. Cyber crime will more than triple the number of unfilled cybersecurity jobs, which is predicted to reach 3.5 million by 2021. Every IT position is also a cybersecurity position now. Every IT worker, every technology worker, needs to be involved with protecting and defending apps, data, devices, infrastructure and people. The cybersecurity workforce shortage is even worse than what the jobs numbers suggest. As a result, the cybersecurity unemployment rate has dropped to zero percent.
4. Human attack surface to reach 6 billion people by 2022. As the world goes digital, humans have moved ahead of machines as the top target for cyber criminals. There are 3.8 billion internet users in 2017 (51 percent of the world’s population of 7 billion), up from 2 billion in 2015. Cybersecurity Ventures predicts there will be 6 billion internet users by 2022 (75 percent of the projected world population of 8 billion) — and more than 7.5 billion internet users by 2030 (90 percent of the projected world population of 8.5 million, 6 years of age and older). The hackers smell blood now, not silicon.
5. Global ransomware damage costs are predicted to exceed $5 billion in 2017.That’s up from $325 million in 2015—a 15X increase in two years, and expected to worsen. Ransomware attacks on healthcare organizations—the No. 1 cyber-attacked industry—will quadruple by 2020. Cybersecurity Ventures predicts that a business will fall victim to a ransomware attack every 14 seconds by 2019.
What does it all mean? In 2015, Ginni Rometty, IBM’s chairman, president and CEO, said, “Cyber crime is the greatest threat to every company in the world.“
How can we protect ourselves?
It’s not time to move off-grid, we’re not suggesting that – don’t worry. But what we do suggest is that you take an element of your portfolio, savings and wealth off-grid.
Physical gold that is allocated and segregated is about as off-grid as you can get when it comes to investments. Sure, you can have some crypto currencies and some shares but they’re unbelievably connected to the outside world thanks to just the click of button. You cannot transact them without using an electronic device.
When it comes to physical gold, it does not rely on you having the safest chip in your smartphone or ensuring no-one is listening to you at home chatting to your loved ones.
Gold bullion has been bought by millions all over the world because of its role in protecting investors during times of war, financial hardship and economic disasters. It is only recently that the idea of cyber warfare and the misuse of this power by governments has become an important point of consideration.
Gold is as relevant here as it always has been. But it is specifically allocated, segregated physical gold which will protect from these risks – not paper gold or digital gold.
Owning gold coins and bars either in one’s possession or in allocated and segregated storage will protect people and will be accessible and liquid. It will protect investors and savers and those who use online banking from malicious attacks. Let’s face it we’re all there already and these growing risks are very real.
Related reading
Internet Shutdowns Show Risk of Digital Gold Platforms
Cyberwar Risk – Was U.S. Navy Victim Of Hacking?
Cyber Wars Could Crash Markets and Threat To Humanity – Buffett and Rickards
News and Commentary
Gold scores longest winning streak since 2011 (MarketWatch.com)
Palladium prices could top gold as record rally continues – GoldCore in Marketwatch (MarketWatch.com)
Turkish central bank’s gold holdings hit record as dollar holdings fall (HurriyetDailyNews.com)
Pakistan ditches dollar for trade with China hours after Trump’s denunciation (CNBC.com)
London house prices dropped in 2017: This is how the experts reacted (CityAM.com)
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Commodites Are Cheap Versus Stocks (Incrementum via Capital and Conflict)
Next Decade’s Most Important Chart (CapitalAndConflict.com)
Gold ETF GLD just did something it’s never done before (CNBC.com)
Dow 25K! Here’s what it says about the stock market (MarketWatch.com)
6 money lessons I’m going to remember this year (StansBerryChurcHouse.com)
Iranians Struggle As The Cost Of Basic Goods Surges (Statista.com)
Morgan Stanley Wealth Sells All Junk Bond Holdings, Warns Of Recession Risk (ZeroHedge.com)
Jeremy Grantham, who predicted the last two bubbles, warns the stock market is ready for a “melt-up” (CityAM.com)
Gold Prices (LBMA AM)
04 Jan: USD 1,313.70, GBP 969.77 & EUR 1,090.24 per ounce
03 Jan: USD 1,314.60, GBP 968.20 & EUR 1,092.96 per ounce
02 Jan: USD 1,312.80, GBP 968.85 & EUR 1,087.52 per ounce
29 Dec: USD 1,296.50, GBP 960.84 & EUR 1,082.45 per ounce
28 Dec: USD 1,291.60, GBP 960.43 & EUR 1,082.75 per ounce
27 Dec: USD 1,285.40, GBP 958.78 & EUR 1,081.54 per ounce
22 Dec: USD 1,268.05, GBP 947.74 & EUR 1,069.85 per ounce
21 Dec: USD 1,265.85, GBP 945.97 & EUR 1,065.09 per ounce
Silver Prices (LBMA)
04 Jan: USD 17.13, GBP 12.64 & EUR 14.20 per ounce
03 Jan: USD 17.12, GBP 12.63 & EUR 14.25 per ounce
02 Jan: USD 17.06, GBP 12.59 & EUR 14.15 per ounce
29 Dec: USD 16.87, GBP 12.48 & EUR 14.07 per ounce
28 Dec: USD 16.74, GBP 12.46 & EUR 14.02 per ounce
27 Dec: USD 16.50, GBP 12.30 & EUR 13.87 per ounce
22 Dec: USD 16.18, GBP 12.08 & EUR 13.65 per ounce
21 Dec: USD 16.15, GBP 12.08 & EUR 13.61 per ounce
Recent Market Updates
– Gold Has Best Year Since 2010 With Near 14% Gain In 2017
– Happy 2nd Birthday Bail-in Tool! We Suggest Gold As The Perfect Gift
– 98,750,067,000,000 Reasons to Buy Gold in 2018
– Gold, Bitcoin and the Blockchain Replaces the Banks – Realists Guide To The Future
– It’s A Wonderful Life Is A Wonderful Lesson To Hold Gold Outside of The Banking System
– Goldnomics Podcast – Gold, Stocks, Bitcoin in 2018. Everything Bubble Bursts?
– What Peak Gold, Interest Rates And Current Geopolitical Tensions Mean For Gold in 2018
– New Rules For Cross-Border Cash and Gold Bullion Movements
– ‘Gold Strengthens Public Confidence In The Central Bank’ – Bundesbank
– WGC: 2018 Set To Be A Positive Year For Price of Gold and Investors
– Year-end Rate Hike Once Again Proves To Be Launchpad For Gold Price
– UK Stagflation Risk As Inflation Hits 3.1% and House Prices Fall
– Buy Gold, Silver Time After Speculators Reduce Longs and Banks Reduce Shorts
Market Snapshot
S&P 500 futures up 0.3% to 2,730.75
STOXX Europe 600 up 0.5% to 395.67
MSCI Asia Pacific up 0.6% to 179.04
MSCI Asia Pacific ex Japan up 0.6% to 586.16
Nikkei up 0.9% to 23,714.53
Topix up 0.9% to 1,880.34
Hang Seng Index up 0.3% to 30,814.64
Shanghai Composite up 0.2% to 3,391.75
Sensex up 0.5% to 34,141.10
Australia S&P/ASX 200 up 0.7% to 6,122.35
Kospi up 1.3% to 2,497.52
German 10Y yield fell 0.5 bps to 0.429%
Euro down 0.2% to $1.2047
Italian 10Y yield fell 5.2 bps to 1.746%
Spanish 10Y yield fell 1.4 bps to 1.529%
Brent futures down 0.9% to $67.48/bbl
Gold spot down 0.4% to $1,317.36
U.S. Dollar Index up 0.2% to 92.07
Top Overnight News
Euro-area inflation slowed to 1.4% last month from November’s 1.5%, and the underlying rate unexpectedly failed to accelerate, easing pressure on the ECB to unwind stimulus
President Donald Trump fired off a tweet saying that a book alleging dysfunction, backstabbing and chaos in his administration was “full of lies” and that he had given the author, Michael Wolff, “zero access” to the White House; Wolff’s publishers said they would bring forward publication of “Fire and Fury” to Friday
China capped how much bond traders at brokerages and fund companies can earn from a year’s work to 1 million yuan ($154,000), people with knowledge of the matter said, as regulators step up a campaign to control risk-taking across financial markets
Asian equities closed the week out on a high, following yet another day of gains in the US, whereby the DJIA broke 25k for the first time. Strong data out of the US boosted sentiment with the ADP figure beating analysts’ estimates, hinting at a firm number in today’s US NFP report. ASX 200 (+0.7%) continued to make fresh 10yr highs with the index finding support from financial and mining stocks. Nikkei 225 (+0.9%) had its best two day gain since November and probed 26yr highs amid the rise in banking stocks, while Chinese markets also posted gains (Shanghai Comp +0.2%, Hang Seng Index +0.3%)
Top Asian News
Bubbly H.K. Housing Is Unsustainable, $2.6 Billion Fund Says
HNA Said to Walk Away From Late-Stage Value Partners Talks
Axiata Surges as Carrier Said to Mull $500 Million Tower IPO
China Is Said to Keep 6.5% Economic Growth Target Amid Debt Push
China Data Mismatch Could Imperil Aluminum’s Stand-Out Surge
European equities (Eurostoxx 50 +0.5%) are also trading higher across the board in the wake of another upbeat Asia-Pac session which saw the Nikkei 225 print its best two-day gain since November. In terms of sector performance, auto names are performing well with Volkswagen (+2.7%), Peugeot (+2.7%) and Fiat Chrysler (+3.2%) all top of the DAX, CAC 40 and FTSE MIB respectively following a slew of broker upgrades at JP Morgan with utility names, Centrica (+1.9%) and United Utilities (+1.4%) at the top of the FSTE 100 following broker upgrades at Credit Suisse. Elsewhere, Dialog Semiconductor (-3.7%) shares are lagging their peers in the wake of reports that Apple products have been hit by chip flaws.
Top European News
U.K. Car Sales Drop Most Since Recession on Brexit, Diesel Fears
Euro-Area Inflation Slows, Undermining Calls for ECB to Curb QE
Ryanair Pulls Further Ahead of Pack Even After Pilot Debacle
Deutsche Bank CIB Unit Sought $1.5 Billion Bonus Pool, WiWo Says
Dole Food Takeover Approach From Belgium’s Greenyard Fails
President Macron Wins French Pollsters’ First Ever ‘Beer Test’
European fixed income has seen trading volumes remain paltry even by normal pre-US jobs data standards (MiFiD 2 and tighter Chinese bond market rules may help to explain low turnover), but there have been some decent moves, disconnects and distortions. Gilts have confounded the weaker or indifferent impulses seen ahead of the Liffe open to push ahead from the off (aside from a brief 2 tick stutter below parity), and printed at 124.88 for a 23 tick gain on what appears to be at least corrective due to their earlier closing time. Nevertheless, Bunds have caught a bid to register a fresh Eurex peak as well, at 161.74 (+15 ticks vs -9 ticks at the other extreme), after holding in at the 50% retracement support level. 161.82-86 forms the next tech resistance area, while bears will still be eyeing 161.36 ahead of Thursday’s 161.26 low and the 161.18 ultimate downside target that has survived several times. US Treasuries marginally weaker pre-NFP, aside from flat 2 year notes as the curve steadies a tad following the most recent bout of flattening.
In FX markets, AUD/USD one of the big movers overnight, with the pair recoiling from 0.7870 to a 0.7835 low on the back of Aussie trade data showing a deficit vs expected surplus as exports completely stagnated. Elsewhere, broad risk appetite, as Wall Street sets more all-time records and global stocks continue to rally, has undermined the traditional safe-haven currencies, and with the JPY also losing ground amidst decent cross-related flows (ie EUR/JPY bids said to be targeting 140.00 from around 136.50 currently). NZD/CAD/GBP/EUR are all holding up relatively well vs the USD as the DXY attempts to stay within touching distance of the 92.000 handle ahead of today’s US jobs report.
In commodities, both WTI and Brent crude futures are seen lower as markets take a breather from the recent rally which had lifted prices to multi-year highs with some profit-taking potentially entering the market. In terms of energy newsflow, things remain on the light side but markets remain sensitive to events in Iran and any potential backlash from the US via sanctions. In metals markets, gold prices have been seen lower overnight amid touted profit-taking, albeit prices remain in close proximity to recent highs. Elsewhere, Chinese steel futures were seen lower overnight as weather concerns continue to sway prices whilst Zinc (highest since mid-2007) remains supported in London amid supply fears.
Looking at the day ahead, the December CPI for the Eurozone (1.4% yoy expected), France (1.3% yoy expected) and Italy are due. Then the Eurozone’s November PPI, Germany’s retail sales and France’s consumer confidence data are also due. In the US, there is the December nonfarm payrolls, ISM non-mfg composite, unemployment rate and average hourly earnings data. Elsewhere, the November trade balance, factory orders as well as the final readings for the durable and capital goods orders are also due. Onto other events, the Fed’s Harker and Mester are both scheduled to speak.
US Event Calendar
8:30am: Change in Nonfarm Payrolls, est. 190,000, prior 228,000
Unemployment Rate, est. 4.1%, prior 4.1%; Underemployment Rate, prior 8.0%
Average Hourly Earnings MoM, est. 0.3%, prior 0.2%; YoY, est. 2.5%, prior 2.5%
Average Weekly Hours All Employees, est. 34.5, prior 34.5
8:30am: Trade Balance, est. $49.9b deficit, prior $48.7b deficit
10am: ISM Non-Manf. Composite, est. 57.6, prior 57.4
10am: Factory Orders, est. 1.1%, prior -0.1%; Ex Trans, prior 0.8%
10am: Durable Goods Orders, prior 1.3%; Durables Ex Transportation, prior -0.1%
Cap Goods Orders Nondef Ex Air, prior -0.1%;
DB’s Jim Reid concludes the overnight wrap
Flying at the moment are risk assets after a strong day yesterday. More on this later but it’s an important day for data today. Hot on the heels of a bumper US manufacturing ISM on Tuesday (59.7 vs. 58.2 expected), a beat on the services PMI (53.7 vs 52.5 expected) and ADP (250k vs 190k expected) yesterday, today sees the all-important US employment report. To be honest payrolls (DB forecast upped from 185k to 220k last night, consensus 190k but probably higher now after ADP) is a sideshow as Average Hourly Earnings will be the key part of the release. Both DB and consensus are expecting 0.3% MoM and 2.5% YoY. Earnings are key at the moment as this global recovery/expansion has everything apart from wage growth/inflation which in turn is keeping the Fed rate hikes gradual and volatility low. DB has put out a fair amount of research over the last few weeks detailing how US wage growth is picking up so it’ll be interesting to see whether this can find its way into the main headline data soon!
Elsewhere in the report the unemployment rate (4.1% vs. 4.1%) should remain stable at its lowest level since 2000. Our economists expect this stability to be temporary as they expect the unemployment rate to break through 4% in H1 2018. This level could prove important since they recently found using state-level data that wage growth picks up significantly as the unemployment rate falls below 4%. So they would argue wage growth is coming even if today’s number is flat.
Given the recent strength in US data, it’s interesting that the big call out of DB yesterday was to target 1.30 on EUR/USD in 2018. George Saravelos suggests that although the Fed is hiking rates, US rate differentials are widening and the dollar has become a G10 high-yielder, the dollar is not responding. He thinks current dynamics look very similar to the 2004-06 Fed cycle. Back then the dollar weakened even as the dollar became one of the highest-yielding currencies in the world. Weaker flows into the US mattered more than rising rates. Our FX team believe flows will matter more in 2018 too, and these are decidedly EUR/USD positive.
The buzz phrase yesterday was speculation about whether we were in a ‘melt up’ for risk assets. US bourses reached fresh highs for the third consecutive day with the S&P 500 up 0.40% and the Dow cracking through 25,000. All Euro equities were higher with Stoxx 600 up 0.89% to the highest in 8-weeks and the Nikkei jumping 3.26% near its 26 year high after trading resumed for 2018. Within the S&P, all sectors excluding real estate and utilities were in the green while the Stoxx’s gains were led by financials and energy stocks. Elsewhere, credit spreads continue to grind tighter (c1bp lower), with US CDX IG now at 46.1bp and Europe Main at 43.9bp.
This morning in Asia, markets are trading higher as we type. The Kospi is up 1.08% and reversing its underperformance from yesterday, while Nikkei and Hang Seng are up 0.82% and 0.05% respectively. Elsewhere, North Korea has accepted South Korea’s proposal for talks on 9 January and Japan’s December Nikkei composite PMI was in line at 52.2.
Staying in Asia, our Japanese team published their macro and equity outlook for 2018. They expect a slowing Japanese economy and forecast 0.9% real GDP growth in 2018 (vs. FY17 1.9%; FY19 0.8%). They note durable goods spending, capital investment and housing investment are at the end of their cycles or are in the midst of transitioning to a decline. On rates, they believe the expected US rate hikes in 2018 should not have much impact on yen interest rates as long as the BOJ continues its yield curve control (YCC) policy – which should continue on the assumption that core CPI will not consistently exceed 1%. Further, they expect Haruhiko Kuroda to be reappointed as BOJ governor, in part due to the absence of a strong alternative candidate. Finally, they maintain their positive stance on Japanese equities, mainly driven by their expectations that aggregate Japanese earnings will remain strong, supported by slowing but robust global growth and a stable if not weaker yen. For more details, refer to the link.
Now recapping other market performance from yesterday. In government bonds, core 10y yields were mixed but little changed. Treasuries initially weakened after the strong ADP print, but pared losses to close +0.5bp to 2.453%, while Gilts rose 2bp and Bunds fell 0.6bp. Notably, peripherals outperformed with yields down 5-7bp, in part supported by Spain’s first government bond sale for the year, selling €4.6bn of bonds which was towards the top end of its targeted range.
Turning to currencies, the US dollar index weakened 0.32%, while Sterling and Euro gained 0.26% and 0.44% respectively. In commodities, WTI oil rose 0.42% and consolidated near its three year high after the EIA report confirmed a fall in US crude inventories. Elsewhere, precious metals strengthened c0.6% (Gold +0.75%; Silver +0.54%) and other base metals also advanced modestly (Copper flat; Zinc +0.62%; Aluminium +0.43%).
Away from markets and onto Brexit, France’s President Macron has called for a unified EU approach and “common mandate” amongst EU members in the next stage of Brexit talks. He noted that each country can have their own interests, but if we acted like the prisoner’s dilemma game theory, then its “probable that collectively we’ll create a situation that is unfavourable to the EU and thus to each one of us”. Elsewhere, the Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs Ted McKinney noted if the UK has its own rules on farming and food standards rather than keeping the existing EU rules, then “there is much greater opportunity for trade” between the two countries.
In the US, the Fed’s Bullard reiterated his views that a tightening labour market is unlikely to materially lift inflation. He also noted that he “would not want the Fed to push so hard that we get to an inverted yield curve situation” and that the yield curve issue “is something that needs to be debated out sooner rather than later”. On Bitcoin, he noted it is not something “that monetary policy makers have to worry very much about at this point”. Elsewhere, the SEC Chairman Jay Clayton noted that “…we again caution you that, if you lose money (on cryptocurrencies), there is a substantial risk that our efforts will not result in a recovery of your investment.”
Before we take a look at today’s calendar, we wrap up with other data releases from yesterday. In the US, the final reading for the December composite PMI was above expectations at 54.1 (vs. 53 previous). Elsewhere, the weekly initial jobless claims were higher than expectations (250k vs. 240k) but continuing claims (1,914k vs. 1,928k expected) were lower.
In Europe, the final readings for the Eurozone’s services and composite PMI were both revised 0.1ppt higher to 56.6 and 58.1 respectively – the highest since the GFC. On a country basis, Germany’s services PMI was unrevised at 55.8 but the composite PMI was 0.2ppt higher at 58.9. In France, its composite PMI was revised 0.4ppt lower to 59.6. Finally, the flash composite PMI for Italy was above market (56.5 vs. 56 expected) while the UK was softer (54.9 vs. 55 expected).
In the UK, the December Nationwide House price index was above market at 2.6% yoy (vs. 2.0% expected), while London posted its first full year decline since 2009 (albeit -0.5% yoy). Elsewhere, the November mortgage approvals (65.1k vs. 64.1k expected) and net lending on dwellings both beat expectations (£3.5bln vs. £3.4bln).
Looking at the day ahead, the December CPI for the Eurozone (1.4% yoy expected), France (1.3% yoy expected) and Italy are due. Then the Eurozone’s November PPI, Germany’s retail sales and France’s consumer confidence data are also due. In the US, there is the December nonfarm payrolls, ISM non-mfg composite, unemployment rate and average hourly earnings data. Elsewhere, the November trade balance, factory orders as well as the final readings for the durable and capital goods orders are also due. Onto other events, the Fed’s Harker and Mester are both scheduled to speak.
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Thank You Harvey Always Good stuff https://www.silverdoctors.com/tag/harvey-organ/
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Thanks for the advice
MMgys
who do you think is buying all that gold up
good guys ?
MMgys
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MMgys
and Thank You All for your Outstanding contributions
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Eric Sprott: Maybe the whole fraud of the Comex is unwinding
Submitted by cpowell on Fri, 2018-01-05 20:11. Section: Daily Dispatches
3:12p ET Friday, January 5, 2018
Dear Friend of GATA and Gold:
Weakness in the U.S. dollar is pushing gold and silver up along with commodities generally, mining entrepreneur Eric Sprott tells interviewer Craig Hemke in the weekly wrapup for Sprott Money News.
Citing the work of gold researchers Harvey Organ and Ronan Manly, Sprott and Hemke also discuss the extraordinary increase in the use of the "exchange for physicals" procedure for clearing gold and silver contracts on the New York Commodities Exchange, which suggests that little metal is available for delivery in New York. "Maybe the whole fraud of the Comex is unwinding," Sprott says.
We can only hope.
The interview is 12 minutes long and can be heard at the Sprott Money internet site here:
https://www.sprottmoney.com/Blog/maybe-the-whole-fraud-of-the-comex-is-u...
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Thanks GATA
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the Following is a GYS Special Presentation
Must Be 21 to enter "Say What"
Welcome to afterhours at the MMGYS Speakeasy Three Cafe
Featuring the GYS Songs Of Year 2016, 2017 & 2018
GYS2016
GYS2017
GYS2018
Hope you enJoyed this and are having a Great Weekend !
and Thank You
Hoping it just got a little Better <3
.jpg)
Good Morning Ladies and Gentleman
~Welcome To :
~*~Mining & Metals Du Jour~*~ Graveyard Shift~
Nice to have You with us tonight
A real treat in store for us tonight from our award winning MMGYS team
Really kicking it out tonight and with a special "Out of this world" Speakeasy Three Show at the end of this data broadcast.
featuring the GYS Songs of the Years 2016,17 and 2018.
So grab a Cold One or a Hot One Or a Lit One Or Anyone and Hope You EnJoy the Show
MMgys
courtesy: a real Star, starboy So Awesome Thanks man <3
onwards to the data !
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Jan 5/Gold rises by $1.40 to $1320.90//silver up 4 cents to $17.23/Huge gold comex gain of 30,141 contracts coupled with a huge 17,213 gain in gold EFP/ In silver a comex gain of 2536 contracts coupled with a huge 5894 EFP transfer/
January 5, 2018 · by harveyorgan · in Uncategorized · Leave a comment
GOLD: $1320.90 up $1.40
Silver: $17.23 UP 4 cents
Closing access prices:
Gold $1319.75
silver: $17.23
For comex gold:
JANUARY/
NUMBER OF NOTICES FILED TODAY FOR JANUARY CONTRACT: 4 NOTICE(S) FOR 400 OZ.
TOTAL NOTICES SO FAR: 242 FOR 24200 OZ (0.7527 TONNES),
For silver:
jANUARY
2 NOTICE(S) FILED TODAY FOR
10,000 OZ/
Total number of notices filed so far this month: 507 for 2,535,000 oz
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Bitcoin: BID $15,821/OFFER $15,943 UP $698 (morning)
Bitcoin: BID 16,547/OFFER $16,667 up $1429(CLOSING)
end
Let us have a look at the data for today
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In silver, the total open interest SURPRISINGLY ROSE BY A CONSIDERABLE 2536 contracts from 1921728 RISING TO 191,728 DESPITE YESTERDAY’S TINY 1 CENT FALL IN SILVER PRICING. WE HAD ZERO COMEX LIQUIDATION BUT WITHOUT A DOUBT WE WITNESSED ANOTHER MAJOR BANK SHORT- COVERING OPERATION. NOT ONLY THAT , WE WERE AGAIN NOTIFIED THAT WE HAD ANOTHER HUGE SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE: A HUGE 5894 EFP’S FOR MARCH (AND ZERO FOR OTHER MONTHS) AND THUS TOTAL ISSUANCE OF 5894 CONTRACTS. HOWEVER THE MOVEMENT ACROSS TO LONDON IS NOT AS SEVERE AS IN GOLD AS THERE SEEMS TO BE A MAJOR PLAYER TAKING ON THE BANKS AT THE COMEX. STILL, WITH THE TRANSFER OF 5894 CONTRACTS, WHAT THE CME IS STATING IS THAT THERE IS NO SILVER (OR GOLD) TO BE DELIVERED UPON AT THE COMEX AS THEY MUST EXPORT THEIR OBLIGATION TO LONDON. YESTERDAY WITNESSED EFP’S FOR SILVER ISSUED. ALSO KEEP IN MIND THAT THERE CAN BE A DELAY OF 24 HRS IN THE ISSUING OF EFP’S. I BELIEVE THAT WE MUST HAVE HAD SOME MAJOR BANKER SHORT COVERING AGAIN TODAY.
ACCUMULATION FOR EFP’S/SILVER/ STARTING FROM FIRST DAY NOTICE/FOR MONTH OF JANUARY:
16,210 CONTRACTS (FOR 5 TRADING DAYS TOTAL 16,210 CONTRACTS OR 81.05 MILLION OZ: AVERAGE PER DAY: 3242 CONTRACTS OR 16.210 MILLION OZ/DAY)
RESULT: A GOOD SIZED GAIN IN OI COMEX DESPITE THE TINY 1 CENT RISE IN SILVER PRICE WHICH USUALLY INDICATES HUGE BANKER SHORT-COVERING. WE ALSO HAD A HUGE SIZED SIZED EFP ISSUANCE OF 5894 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON AS FORWARDS. FROM THE CME DATA 5894 EFP’S WERE ISSUED FOR TODAY (FOR MARCH EFP’S AND NONE FOR ALL OTHER MONTHS) FOR A DELIVERABLE FORWARD CONTRACT OVER IN LONDON WITH A FIAT BONUS. WE REALLY GAINED 8430 OI CONTRACTS i.e. 5894 open interest contracts headed for London (EFP’s) TOGETHER WITH A INCREASE OF 2536 OI COMEX CONTRACTS. AND ALL OF THIS HAPPENED WITH THE TINY FALL IN PRICE OF SILVER BY 1 CENT AND A CLOSING PRICE OF $17.19 WITH RESPECT TO YESTERDAY’S TRADING. YET WE STILL HAVE A GOOD AMOUNT OF SILVER STANDING AT THE COMEX.
In ounces AT THE COMEX, the OI is still represented by just UNDER 1 BILLION oz i.e. 0.9710 BILLION TO BE EXACT or 139% of annual global silver production (ex Russia & ex China).
FOR THE NEW FRONT JANUARY MONTH/ THEY FILED: 2 NOTICE(S) FOR 10,000 OZ OF SILVER
In gold, the open interest ROSE BY AN ATMOSPHERIC SIZED 30,141 CONTRACTS UP TO 542,313 WITH THE SMALL RISE IN PRICE OF GOLD WITH YESTERDAY’S TRADING ($2.50). IN ANOTHER HUGE DEVELOPMENT, WE RECEIVED THE TOTAL NUMBER OF GOLD EFP’S ISSUED YESTERDAY FOR TODAY AND IT TOTALED A STRONG SIZED 17,213 CONTRACTS OF WHICH THE MONTH OF FEBRUARY SAW 17,213 CONTRACTS AND APRIL SAW THE ISSUANCE OF 0 CONTRACTS. The new OI for the gold complex rests at 542,313. DEMAND FOR GOLD INTENSIFIES GREATLY AS WE CONTINUE TO WITNESS A HUGE NUMBER OF EFP TRANSFERS TOGETHER WITH THE MASSIVE INCREASE IN GOLD COMEX OI TOGETHER WITH THE TOTAL AMOUNT OF GOLD OUNCES STANDING FOR JANUARY. EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER (BIG RISE IN BOTH GOFO AND SIFO) AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES. IN ESSENCE WE HAVE ANOTHER HUMONGOUS GAIN OF 47,354 OI CONTRACTS: 30,141 OI CONTRACTS INCREASED AT THE COMEX AND A GOOD SIZED 17,213 OI CONTRACTS WHICH NAVIGATED OVER TO LONDON.
YESTERDAY, WE HAD 8798 EFP’S ISSUED.
ACCUMULATION OF EFP’S/ GOLD(EXCHANGE FOR PHYSICAL) FOR THE MONTH OF JANUARY STARTING WITH FIRST DAY NOTICE: 51,490 CONTRACTS OR 5.149 MILLION OZ OR 160.715 TONNES (5 TRADING DAYS AND THUS AVERAGING: 10,298 EFP CONTRACTS PER TRADING DAY OR 1.0298 OZ/DAY)
Result: A HUMONGOUS SIZED INCREASE IN OI WITH THE SMALL SIZED RISE IN PRICE IN GOLD TRADING ON YESTERDAY ($2.50). WE HAD ANOTHER HUGE SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 17,213. THERE OBVIOUSLY DOES NOT SEEM TO BE MUCH PHYSICAL GOLD AT THE COMEX AND YET WE ALSO OBSERVED A HUGE DELIVERY MONTH FOR THE MONTH OF DECEMBER. I GUESS IT EXPLAINS THE HUGE ISSUANCE OF EFP’S…THERE IS HARDLY ANY GOLD PRESENT AT THE GOLD COMEX FOR DELIVERY PURPOSES. IF YOU TAKE INTO ACCOUNT THE 17,213 EFP CONTRACTS ISSUED, WE HAD A NET GAIN IN OPEN INTEREST OF 47,354 contracts:
17,213 CONTRACTS MOVE TO LONDON AND 30,141 CONTRACTS INCREASED AT THE COMEX. (in tonnes, the gain in total oi equates to 147.29 TONNES)
we had: 4 notice(s) filed upon for 400 oz of gold.
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With respect to our two criminal funds, the GLD and the SLV:
GLD: with gold up for 11 consecutive days, we still have no changes in gold inventory
Today, NO CHANGES IN GOLD INVENTORY AT THE GLD/
Inventory rests tonight: 836.32 tonnes.
SLV/DESPITE NO CHANGE IN SILVER PRICING WE HAD A HUGE WITHDRAWAL TODAY.
HUGE CHANGES IN SILVER INVENTORY AT THE SLV/ A WITHDRAWAL OF 2.026 MILLION OZ OZ
INVENTORY RESTS AT 318.423 MILLION OZ/
end
First, here is an outline of what will be discussed tonight:
1. Today, we had the open interest in silver ROSE BY A CONSIDERABLE 2536 contracts from 191,728 UP TO 194,264 (AND now A LITTLE FURTHER FROM THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) DESPITE THE TINY FALL IN PRICE OF SILVER TO THE TUNE OF 1 CENT YESTERDAY. WE HAD WITHOUT A DOUBT ANOTHER MAJOR SHORT COVERING FROM OUR BANKERS AS THEY HAVE CAPITULATED. NOT ONLY THAT BUT OUR BANKERS USED THEIR EMERGENCY PROCEDURE TO ISSUE ANOTHER 5894 PRIVATE EFP’S FOR MARCH (WE DO NOT GET A LOOK AT THESE CONTRACTS AS IT IS PRIVATE BUT THE CFTC DOES AUDIT THEM). EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON. WE HAD NO COMEX SILVER COMEX LIQUIDATION. BUT, IF WE TAKE THE GOOD OI GAIN AT THE COMEX OF 2536 CONTRACTS TO THE 5894 OI TRANSFERRED TO LONDON THROUGH EFP’S WE OBTAIN A GAIN OF 8430 OPEN INTEREST CONTRACTS DESPITE THE MAJOR BANKER SHORT COVERING. WE STILL HAVE A GOOD AMOUNT OF SILVER OUNCES THAT ARE STANDING FOR METAL IN JANUARY (SEE BELOW). THE NET GAIN TODAY IN OZ: 42.150 MILLION OZ!!!
RESULT: A GOOD SIZED INCREASE IN SILVER OI AT THE COMEX DESPITE THE TINY SIZED FALL OF 1 CENT IN PRICE (WITH RESPECT TO YESTERDAY’S TRADING). BUT WE ALSO HAD ANOTHER 5894 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE GOOD SIZED AMOUNT OF SILVER OUNCES STANDING FOR JANUARY, DEMAND FOR PHYSICAL SILVER INTENSIFIES AS WE WITNESS MAJOR BANK SHORT COVERING ACCOMPANIED BY INCREASES IN GOFO AND SIFO RATES INDICATING SCARCITY.
(report Harvey)
.
2.a) The Shanghai and London gold fix report
(Harvey)
2 b) Gold/silver trading overnight Europe, Goldcore
(Mark O’Byrne/zerohedge
and in NY: Bloomberg
3. ASIAN AFFAIRS
3a)THAILAND/SOUTH KOREA/NORTH KOREA
i)North Korea
b) REPORT ON JAPAN
3 c CHINA
4. EUROPEAN AFFAIRS
5. RUSSIAN AND MIDDLE EASTERN AFFAIRS
6 .GLOBAL ISSUES
7. OIL ISSUES
8. EMERGING MARKET
9. PHYSICAL MARKETS
10. USA stories which will influence the price of gold/silver
Let us head over to the comex:
The total gold comex open interest ROSE BY ATMOSPHERIC 30,141 CONTRACTS UP to an OI level of 542,313 WITH THE SMALL SIZED RISE IN THE PRICE OF GOLD ($2.50 GAIN WITH RESPECT TO YESTERDAY’S TRADING). OBVIOUSLY WE HAD ZERO COMEX GOLD LIQUIDATION WITH ANOTHER STRONG GAIN IN TOTAL OPEN INTEREST AS WE WITNESSED ANOTHER HUMONGOUS COMEX TRANSFER THROUGH THE EFP ROUTE. THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS. THE CME REPORTS THAT 17,213 EFP’S WERE ISSUED FOR FEBRUARY AND 0 EFP’s FOR APRIL: TOTAL 8430 CONTRACTS. THE OBLIGATION STILL RESTS WITH THE BANKERS ON THESE TRANSFERS.
ON A NET BASIS IN OPEN INTEREST WE GAINED TODAY: 47,354 OI CONTRACTS IN THAT 17,213 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED 30,141 COMEX CONTRACTS. NET GAIN: 47,354 contracts OR 4,735,400 OZ OR 147.27 TONNES
Result: A STRONG SIZED INCREASE IN COMEX OPEN INTEREST WITH THE SMALL RISE IN THE PRICE OF YESTERDAY’S GOLD TRADING (2.50.) WE HAD NO GOLD LIQUIDATION ANYWHERE. TOTAL OPEN INTEREST GAIN ON THE TWO EXCHANGES: 47,354 OI CONTRACTS…
We have now entered the active contract month of JANUARY. The open interest for the front month of JANUARY saw it’s open interest FALL by 14 contracts DOWN to 183. We had 16 notices served on Friday so we GAINED 2 contracts or 200 additional oz of gold will stand in this non active month AND AGAIN WE WITNESS QUEUE JUMPING .
FEBRUARY saw a GAIN of 7980 contacts DOWN to 370,433. March saw a gain of 10 contracts up to 67. April saw a GAIN of 18,826 contracts UP to 476,468.
We had 4 notice(s) filed upon today for 400 oz
PRELIMINARY VOLUME TODAY ESTIMATED; 329,333
FINAL NUMBERS CONFIRMED FOR YESTERDAY: 412,858
comex gold volumes are RISING AGAIN
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And now for the wild silver comex results.
Total silver OI ROSE BY A CONSIDERABLE 2536 CONTRACTS FROM 191,727 UP TO 194,264 DESPITE YESTERDAY’S TINY 1 CENT FALL IN PRICE WHICH SEEMS TO INDICATE WE HAD ANOTHER MAJOR ROUND OF BANKER SHORT-COVERING. NOT ONLY THAT, WE HAD ANOTHER HUMONGOUS SIZED 5894 EMERGENCY EFP’S FOR MARCH ISSUED BY OUR BANKERS (ZERO FOR ALL OTHER MONTHS) TO COMEX LONGS WHO RECEIVED A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON: THE TOTAL EFP’S ISSUED: 5894. IT SURE LOOKS LIKE THE SILVER BOYS HAVE STARTED TO MIGRATE TO LONDON FROM THE START OF DELIVERY MONTH AND CONTINUING RIGHT THROUGH UNTIL FIRST DAY NOTICE JUST LIKE WE ARE WITNESSING TODAY. USUALLY WE NOTED THAT CONTRACTION IN OI OCCURRED ONLY DURING THE LAST WEEK OF AN UPCOMING ACTIVE DELIVERY MONTH. THIS PROCESS HAS JUST BEGUN IN EARNEST IN SILVER STARTING IN SEPTEMBER. HOWEVER, IN GOLD, WE HAVE BEEN WITNESSING THIS FOR THE PAST 2 YEARS. WE HAD ZERO LONG COMEX SILVER LIQUIDATION BUT A RISE IN TOTAL SILVER OI AS IT SEEMS THAT WE ARE WITNESSING SOME MAJOR BANKER SHORT-COVERING. WE ARE ALSO WITNESSING A FAIR AMOUNT OF SILVER OUNCES STANDING FOR COMEX METAL IN THIS NON ACTIVE JANUARY AS WELL AS THAT CONTINUAL MIGRATION OF EFPS OVER TO LONDON. ON A PERCENTAGE BASIS THERE ARE MORE EFP’S ISSUED FOR GOLD THAN SILVER AS IT SEEMS THAT A MAJOR PLAYER WISHES TO TAKE ON THE CROOKED COMEX SHORTS. ON A NET BASIS WE GAINED 8430 OPEN INTEREST CONTRACTS:
2536 CONTRACT GAIN AT THE COMEX COMBINING WITH THE ADDITION OF 2536 OI CONTRACTS NAVIGATING OVER TO LONDON.
NET GAIN: 8430 CONTRACTS
We are now in the poor non active delivery month of January and here the OI GAIN by 17 contracts UP to 41. We had 0 notices served upon yesterday, so we GAINED 17 contracts or an additional 85,000 oz will stand for delivery
February saw a GAIN OF 2 OI contracts RISING TO 182. The March contract gained 1819 contracts up to 151,389.
We had 2 notice(s) filed for 10,000 oz for the January 2018 contract for silver
INITIAL standings for JANUARY
Jan 5/2018.
Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
N/A oz
Deposits to the Dealer Inventory in oz nil oz
Deposits to the Customer Inventory, in oz
nil oz
No of oz served (contracts) today
4 notice(s)
400 OZ
No of oz to be served (notices)
179 contracts
(17,900 oz)
Total monthly oz gold served (contracts) so far this month
242 notices
24200 oz
0.7527 tonnes
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz
I CANNOT RETRIEVE COMEX DATA MOVEMENTS
For JANUARY:
Today, 0 notice(s) were issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 4 contract(s) of which 4 notices were stopped (received) by j.P. Morgan dealer and 0 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account.
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To calculate the INITIAL total number of gold ounces standing for the JANUARY. contract month, we take the total number of notices filed so far for the month (242) x 100 oz or 24200 oz, to which we add the difference between the open interest for the front month of JAN. (183 contracts) minus the number of notices served upon today (4 x 100 oz per contract) equals 42,100 oz, the number of ounces standing in this active month of JANUARY
Thus the INITIAL standings for gold for the JANUARY contract month:
No of notices served (242 x 100 oz or ounces + {(183)OI for the front month minus the number of notices served upon today (4 x 100 oz which equals 42,100 oz standing in this active delivery month of JANUARY (1.303 tonnes). THERE IS 33.29 TONNES OF REGISTERED GOLD AVAILABLE FOR DELIVERY SO FAR.
WE GAINED TWO CONTRACTS OR AN ADDITIONAL 200 OZ WILL STAND IN THIS NON ACTIVE DELIVERY MONTH OF JANUARY
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ON FIRST DAY NOTICE FOR JANUARY 2017, THE INITIAL GOLD STANDING: 3.904 TONNES STANDING
BY THE END OF THE MONTH: FINAL: 3.555 TONNES STOOD FOR COMEX DELIVERY AS THE REMAINDER HAD TRANSFERRED OVER TO LONDON FORWARDS.
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Total dealer inventory 1,070,309.229 or 33.29 tonnes (dealer gold continues to disappear)
Total gold inventory (dealer and customer) = 9,143,181.135 or 284.39 tonnes
I have a sneaky feeling that these withdrawals of gold in kilobars are being used in the hypothecating process and are being used in the raiding of gold!
The gold comex is an absolute fraud. The use of kilobars and exact weights makes the data totally absurd and fraudulent! To me, the only thing that makes sense is the fact that “kilobars: are entries of hypothecated gold sent to other jurisdictions so that they will not be short with their underwritten derivatives in that jurisdiction. This would be similar to the rehypothecated gold used by Jon Corzine at MF Global.
IN THE LAST 14 MONTHS 70 NET TONNES HAS LEFT THE COMEX.
end
And now for silver
AND NOW THE DECEMBER DELIVERY MONTH
DECEMBER FINAL standings
Jan 5/ 2018
Silver Ounces
Withdrawals from Dealers Inventory nil oz
Withdrawals from Customer Inventory
N/A oz
Deposits to the Dealer Inventory
nil
oz
Deposits to the Customer Inventory
N/A oz
Scotia
No of oz served today (contracts)
2
CONTRACT(S)
(10,000 OZ)
No of oz to be served (notices)
39 contract
(195,000 oz)
Total monthly oz silver served (contracts) 507 contracts
(2,535,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month NIL oz
Total accumulative withdrawal of silver from the Customer inventory this month
CANNOT RETRIEVE COMEX INVENTORY DATA
The total number of notices filed today for the JANUARY. contract month is represented by 2 contract(s) FOR 10,000 oz. To calculate the number of silver ounces that will stand for delivery in JANUARY., we take the total number of notices filed for the month so far at 507 x 5,000 oz = 2,535,000 oz to which we add the difference between the open interest for the front month of JAN. (41) and the number of notices served upon today (2 x 5000 oz) equals the number of ounces standing.
.
Thus the INITIAL standings for silver for the JANUARY contract month: 507(notices served so far)x 5000 oz + OI for front month of JANUARY(41) -number of notices served upon today (2)x 5000 oz equals 2,730,000 oz of silver standing for the JANUARY contract month. This is VERY GOOD for this NONACTIVE delivery month of JANUARY. WE GAINED 17 CONTRACTS OR AN ADDITIONAL 85,000 OZ WILL STAND FOR DELIVERY IN THIS NON ACTIVE DELIVERY MONTH OF JANUARY.
ON FIRST DAY NOTICE FOR THE JANUARY 2017 CONTRACT WE HAD 3,790 MILLION OZ STAND.
THE FINAL STANDING: 3,730 MILLION OZ
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ESTIMATED VOLUME FOR TODAY: 82,640
CONFIRMED VOLUME FOR FRIDAY: 104,064 CONTRACTS
YESTERDAY’S CONFIRMED VOLUME OF 104,064 CONTRACTS EQUATES TO 520 MILLION OZ OR 74.2% OF ANNUAL GLOBAL PRODUCTION OF SILVER
COMMODITY LAW SUGGESTS THAT OPEN INTEREST SHOULD NOT BE MORE THAN 3% OF ANNUAL GLOBAL PRODUCTION. THE CROOKS ARE SUPPLYING MASSIVE PAPER TRYING TO KEEP SILVER IN CHECK.
Total dealer silver: 59.182 million
Total number of dealer and customer silver: 240.232 million oz
The record level of silver open interest is 234,787 contracts set on April 21./2017 with the price at that day at $18.42
The previous record was 224,540 contracts with the price at that time of $20.44
end
NPV for Sprott and Central Fund of Canada
1. Central Fund of Canada: traded at Negative 2.4 percent to NAV usa funds and Negative 2.2% to NAV for Cdn funds!!!!
Percentage of fund in gold 62.8%
Percentage of fund in silver:37.0%
cash .+.2%( Jan 4/2018)
2. Sprott silver fund (PSLV): NAV RISES TO -0.91% (Jan 4/2018)??????????????????????????????
3. Sprott gold fund (PHYS): premium to NAV RISES TO -0.50% to NAV (Jan 4 /2018 )
Note: Sprott silver trust back into NEGATIVE territory at -0.91%-/Sprott physical gold trust is back into NEGATIVE/ territory at -0.50%/Central fund of Canada’s is still in jail but being rescued by Sprott.
Sprott WINS hostile 3.1 billion bid to take over Central Fund of Canada
(courtesy Sprott/GATA)
END
And now the Gold inventory at the GLD
Jan 5/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 836.32 TONNES
Jan 4/2018/no change in gold inventory at the GLD/Inventory rests at 836.32 tonnes
Jan 3/a huge withdrawal of 1.18 tonnes of gold from the GLD/Inventory rests at 836.32 tonnes
Jan 2/2018/no changes in gold inventory at the GLD/inventory rests at 837.50 tonnes
Dec 29/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 837.50 TONNES
Dec 28/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 837.50 TONNES
Dec 27/NO CHANGES IN GOLD INVENTORY AT THE GLD/ INVENTORY RESTS AT 837.50 TONNES
Dec 26/no change in gold inventory at the GLD
Dec 22/ A DEPOSIT OF 1.48 TONNES OF GOLD INTO GLD INVENTORY/INVENTORY RESTS AT 837.50 TONNES
Dec 21' NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 836.02 TONNES
Dec 20/DESPITE THE GOOD ADVANCE IN PRICE TODAY/THE CROOKS RAIDED THE COOKIE JAR TO THE TUNE OF 1.18 TONNES/INVENTORY RESTS AT 836.02 TONNES
Dec 19/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 837.20 TONNES
Dec 18 SHOCKINGLY AFTER TWO GOOD GOLD TRADING DAYS, THE CROOKS RAID THE COOKIE JAR BY THE SUM OF 7.09 TONNES/INVENTORY RESTS AT 837.20 TONNES
Dec 15/NO CHANGES IN GOLD INVENTORY/RESTS AT 844.29 TONNES.
Dec 14/a good sized gain of 1.48 tonnes of gold into the GLD/inventory rests at 844.29 tones
Dec 13/no changes in gold inventory at the GLD/inventory rests at 842.81 tonnes
Dec 12/SURPRISINGLY NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 842.81 TONNES
Dec 11/SURPRISINGLY NO CHANGES IN GOLD INVENTORY AT THE GLD DESPITE THE CONSTANT RAIDS ON GOLD/INVENTORY RESTS AT 842.81 TONNES
Dec 8/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 842.81 TONNES
Dec 7/A BIG WITHDRAWAL OF 2.66 TONNES FROM THE GLD/INVENTORY RESTS AT 842.81 TONNES
Dec 6/No changes in GOLD inventory at the GLD/Inventory rests at 845.47 tonnes
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Jan 5/2018/ Inventory rests tonight at 836.32 tonnes
*IN LAST 305 TRADING DAYS: 104.65 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 240 TRADING DAYS: A NET 52.66 TONNES HAVE NOW BEEN ADDED INTO GLD INVENTORY.
*FROM FEB 1/2017: A NET 211.754TONNES HAVE BEEN ADDED.
end
Now the SLV Inventory
Jan 5/DESPITE NO CHANGE IN SILVER PRICING, WE HAD A HUGE WITHDRAWAL OF 2.026 MILLION OZ/INVENTORY RESTS AT 318.423 MILLION OZ.
Jan 4.2018/a slight withdrawal of 180,000 oz and this would be to pay for fees/inventory rests at 320.449 million oz/
Jan 3/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 320.629 MILLION OZ.
Jan 2/WITH SILVER UP DRAMATICALLY THESE PAST 4 TRADING DAYS, THE FOLLOWING MAKES NO SENSE: WE HAD A WITHDRAWAL OF 2.83 MILLION OZ FROM THE SLV
INVENTORY RESTS AT 320.629 MILLION OZ/
Dec 29/no changes in silver inventory at the SLV/inventory rests at 323.459 million oz/
Dec 28/DESPITE THE RISE IN SILVER AGAIN BY 13 CENTS, WE LOST ANOTHER 1,251,000 OZ OF SILVER FROM THE SILVER.
Dec 27/WITH SILVER UP AGAIN BY 17 CENTS, WE LOST ANOTHER 802,000 OZ OF SILVER INVENTORY/WHAT CROOKS/INVENTORY RESTS AT 324.780 MILLION OZ/
Dec 26/no change in silver inventory at the SLV./Inventory rests at 325.582
Dec 21/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 326.227 MILLION OZ/
Dec 20/INVENTORY REMAINS CONSTANT AT 326.337 MILLION OZ (COMPARE WITH GLD)
Dec 19/SILVER INVENTORY REMAINS CONSTANT AT 326.337 MILLION OZ
Dec 18.2017//SILVER INVENTORY CONTINUES TO REMAIN PAT./INVENTORY REMAINS AT 326.337 MILLION OZ/
INVENTORY RESTS AT 326.337 TONNES
Dec 15/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 326.337 MILLION OZ/
Dec 14/a small withdrawal of 377,000 oz and that usually means to pay for fees./inventory rests at 326.337 million oz/
Dec 13/no change in silver inventory at the SLV/Inventory rests at 326.714 million oz/
Dec 12/WOW!ANOTHER STRANGE ONE: SILVER HAS BEEN DOWN FOR 10 CONSECUTIVE DAYS, YET THE SLV ADDS ANOTHER 1.415 MILLION OZ TO ITS INVENTORY. IN THAT 10 DAY PERIOD, SLV ADDS 9.584 MILLION OZ/
INVENTORY RESTS AT 326.714 MILLION OZ
Dec 11/WOW!! ANOTHER STRANGE ONE: SILVER DESPITE BEING DOWN FOR 9 CONSECUTIVE TRADING DAYS ADDS ANOTHER 944,000 OZ TO ITS INVENTORY. FROM NOV 30 UNTIL TODAY SILVER HAS BEEN DOWN EVERY DAY. HOWEVER THE INVENTORY OF SILVER HAS RISEN 8.169 MILLION OZ.
Dec 8/A HUGE DEPOSIT OF 2.642 MILLION OZ/INVENTORY RESTS AT 324.355 MILLION OZ/
Dec 7/strange!! with the continual whacking of silver, no change in silver inventory at the SLV/Inventory rests at 321.713
Dec 6/no change in silver inventory at the SLV/Inventory remains at 21.713 million oz.
Jan 5/2017:
Inventory 318,423 million oz
end
6 Month MM GOFO
Indicative gold forward offer rate for a 6 month duration
+ 1.79%
12 Month MM GOFO
+ 1.98%
30 day trend
end
At 3:30 pm we receive our COT report which is basically useless due to the huge transfer of contracts through the EFP route
Gold COT Report – Futures
Large Speculators Commercial Total
Long Short Spreading Long Short Long Short
241,428 78,160 60,048 155,104 332,704 456,580 470,912
Change from Prior Reporting Period
38,838 11,518 2,405 -365 27,766 40,878 41,689
Traders
170 86 74 45 52 246 183
Small Speculators
Long Short Open Interest
44,151 29,819 500,731
3,383 2,572 44,261
non reportable positions Change from the previous reporting period
COT Gold Report – Positions as of Tuesday, January 2, 2018
Our large speculators:
those large specs who have been long in gold added 38,838 contracts to their long side
those large specs who have been short in gold added 11,518 contracts to their short side
Our commercials;
those commercials who are long in gold pitched 365 contracts from their long side
those commercials who have been short in gold added a monstrous 27,766 contracts to their short side (and that does not include the efp transfers)
our small specs:
those small specs that have been long in gold added 3383 contracts to their long side
those small specs that have been short in gold added 2572 contracts to their short side
Silver COT Report: Futures
Large Speculators Commercial
Long Short Spreading Long Short
75,127 52,377 20,600 70,480 107,672
1,114 -16,988 528 -6,566 9,887
Traders
105 47 46 39 37
Small Speculators Open Interest Total
Long Short 192,423 Long Short
26,216 11,774 166,207 180,649
-2,974 -1,325 -7,898 -4,924 -6,573
non reportable positions Positions as of: 164 11
Our large speculators:
those large specs that have been long in silver added 1114 contracts to their long side
those large specs that have been short in silver covered a monstrous 16,988 contracts
Our commercials;
those commercials that have been long in silver pitched a huge 6566 contracts from their long side
those commercials that have been short in silver added a net 9887 contracts
our small specs:
those small specs that have been long in silver pitched 2974 contracts
those small specs that have been short in silver covered 1325 contracts.
Major gold/silver trading /commentaries for FRIDAY
GOLDCORE/BLOG/MARK O’BYRNE.
GOLD/SILVER
Spectre, Meltdown Highlight Online Banking and Digital Gold Risks
5, January
Spectre and Meltdown Highlight Online Banking and Digital Gold Risks
– Critical hardware flaw breaks basic security: risks to online banking & digital assets
– Nearly all computers worldwide, smartphones and other devices – exposed to major security risk
– Two separate security flaws identified in devices powered by Intel, ARM and AMD chips
– Vulnerability known about for six months by tech insiders
– Cyber crime represents the biggest transfer of economic wealth in history
– Cyber crime damage costs to hit $6 trillion annually by 2021
– All digital assets and information at risk
– Crypto currencies, digital assets including gold exposed
– Physical gold’s benefits highlighted
Editor: Mark O’Byrne
The Spectre and Meltdown double whammy this week underlines the increasing risks in the global computing infrastructure and our online banking and digital asset world of banking and finance.
On Wednesday, came news that anyone who uses a computer, smartphone, tablet etc has been introduced to the concept of ‘hacked hardware’. Two separate security flaws, named ‘Meltdown’ and ‘Spectre’ have been identified in devices powered by Intel, ARM and AMD chips. The flaws make pretty much any device hackable.
Not only are our ‘things’ affected but data centres and devices that connect to the cloud are also at risk.
The problem was identified by Google engineers and has been known about for approximately six months. Whilst no attacks taking advantage of these security flaws have yet been identified, we are talking about an unprecedented number of computers, devices, people and companies, including banks, being exposed.
The BBC estimates that ‘for personal computers alone: there are 1.5 billion in use today (desktop and laptop combined) and around 90% are powered by Intel chips, IDC estimates. That means exposure to the Meltdown bug is potentially huge.’
Meltdown affects laptops, desktop computers and internet servers with Intel chips. However, Spectre is an arguably bigger threat. It affects chips powered by Intel, ARM and AMD. in smartphones, tablets and computers.
Why is this a big deal?
The weaknesses leave any device with affected chips vulnerable to both hacking and slowdown in performance. The flaw could give cyberattackers unauthorized access to sensitive data.
This is scary as for years users have been used to warnings by the tech industry that there are security holes in software. These are regularly taken advantage of by hackers. But we are now exposed to a flaw in hardware. Hardware troubles are arguably much harder to fix and newer impossible to replace given their extensive presence around the world.
Scott Borg, director of the U.S. Cyber Consequences Unit, is most concerned about hardware vulnerabilities over software ones. He sees the biggest threat in industry.
Borg recently spoke at Stanford University and explained the shift in hackers’ mentality:
“Initially,” he said, “[hackers] focused on operations control, monitoring different locations from a central site. Then they moved to process control, including programmable logic controllers and local networks. Then they migrated to embedded devices and the ability to control individual pieces of equipment…You can imagine countless attacks manipulating physical things,”
Why are hackers turning to hardware over software? Surely software has a greater reach? No, argues Borg. The decision to move to hardware is purely economic. Stock manipulation is a key way cyberattackers can take advantage of a hardware malfunction.
“There is a limit to how much you can steal from credit card fraud; there is no limit to how much you can make in taking a position in a market and making something happen,” Borg says. “You can short a company’s stock in a highly leveraged way, then attack the company in a way that makes stock fall, reinvest on the way down, and multiply your investment hundreds of times. This is a big growth area for cybercrime; it has been done multiple times already, but it is really just starting to get under way. This is going to be a huge area for cybercriminals.”
Previously individuals were worried about the clicking on a dodgy link or downloading an unknown file. Worst case we believed was credit card or identity fraud. Now, we’re looking at elements of our portfolio being attacked – imagine if you have shares affected by this latest round of news regarding chip security.
We are also, very seriously, facing an attack on our homes.
Nowhere is safe
This Christmas showed the smart home had arrived. Sales of Amazon’s Alexa and Google’s Echo made headlines as families realised they could have a smart home for just $500. The total spend on Internet of Things products and services was expected to reach $2 trillion by the end of last month.
Gadgets such as wearables and smart fridges make our busy lives more productive. They’re supposed to free up time for us to do ‘fun’ things but they arguably just create space for more tasks we create for ourselves, one of those being securing our home from hackers.
By the end of 2017 there were expected to be 8.4 billion internet-enabled devices in use, increasing to 20.4 billion by the end of 2020. This all sounds great but its a goldmine for hackers.
Which? carried out a series of tests in a ‘smart home’ last year. Eight out of the fifteen devices were found to have security vulnerabilities.
We can even be taken in by freebies. In 2006 McDonald’s Japan put their customers at major financial risk just by giving them a free mp3 player. Popular Science explains:
In late summer of 2006, the Japanese division of McDonald’s decided to run a new promotion. When customers ordered a Coca-Cola soft drink, they would receive a cup with a code. If they entered that code on a designated website and were among 10,000 lucky winners, they would receive an MP3 player pre-loaded with 10 songs.
Cleverly constructed, the promotion seemed destined for success. Who doesn’t like a Coke and a free MP3 player? But there was one problem the marketers at McDonald’s could not anticipate: In addition to 10 free songs, the music players contained QQPass malware. The moment winners plugged their players into a computer, the Trojan horse slipped undetected into their system and began logging keystrokes, collecting passwords, and gathering personal data for later transmission.
This is just one example but a good one of how easy it is for us to be affected by vulnerable hardware. These microchips that are under threat are in our fridges, our cars, our phone, planes and even missiles.
Popular Science goes onto explain:
Even hardware generally considered innocuous could be exploited by hackers and used for covert acts. Modified third-party phone chargers have served as vehicles for malware, as have game consoles. In the world of hardware hacking, any smart device—a refrigerator, clock, even a wearable fitness monitor—could be weaponized.
Such covert actions could inflict even greater harm were they to work their way into the backbone of the Internet: the servers and other networking equipment that comprise the infrastructure of the IT world. Instead of gathering embarrassing emails from a handful of executives, hackers with compromised servers could monitor most of the world’s Internet messages. As companies such as Huawei Technologies and ZTE Corporation—both of which supply telecommunication equipment and have ties to the Chinese military—continue to grow, so too will concerns about network security.
Significant cost
The Cybersecurity Business Report offers the following stats that outline just how vulnerable we are as society and financially:
1. Cyber crime damage costs to hit $6 trillion annually by 2021. It all begins and ends with cyber crime. Without it, there’s nothing to cyber-defend. The cybersecurity community and major media have largely concurred on the prediction that cyber crime damages will cost the world $6 trillion annually by 2021, up from $3 trillion just a year ago. This represents the greatest transfer of economic wealth in history, risks the incentives for innovation and investment, and will be more profitable than the global trade of all major illegal drugs combined.
2. Cybersecurity spending to exceed $1 trillion from 2017 to 2021. The rising tide of cyber crime has pushed information security (a subset of cybersecurity) spending to more than $86.4 billion in 2017, according to Gartner. That doesn’t include an accounting of internet of things (IoT), industrial IoT, and industrial control systems (ICS) security, automotive security, and other cybersecurity categories. Global spending on cybersecurity products and services are predicted to exceed $1 trillion over the next five years, from 2017 to 2021.
3. Cyber crime will more than triple the number of unfilled cybersecurity jobs, which is predicted to reach 3.5 million by 2021. Every IT position is also a cybersecurity position now. Every IT worker, every technology worker, needs to be involved with protecting and defending apps, data, devices, infrastructure and people. The cybersecurity workforce shortage is even worse than what the jobs numbers suggest. As a result, the cybersecurity unemployment rate has dropped to zero percent.
4. Human attack surface to reach 6 billion people by 2022. As the world goes digital, humans have moved ahead of machines as the top target for cyber criminals. There are 3.8 billion internet users in 2017 (51 percent of the world’s population of 7 billion), up from 2 billion in 2015. Cybersecurity Ventures predicts there will be 6 billion internet users by 2022 (75 percent of the projected world population of 8 billion) — and more than 7.5 billion internet users by 2030 (90 percent of the projected world population of 8.5 million, 6 years of age and older). The hackers smell blood now, not silicon.
5. Global ransomware damage costs are predicted to exceed $5 billion in 2017.That’s up from $325 million in 2015—a 15X increase in two years, and expected to worsen. Ransomware attacks on healthcare organizations—the No. 1 cyber-attacked industry—will quadruple by 2020. Cybersecurity Ventures predicts that a business will fall victim to a ransomware attack every 14 seconds by 2019.
What does it all mean? In 2015, Ginni Rometty, IBM’s chairman, president and CEO, said, “Cyber crime is the greatest threat to every company in the world.“
How can we protect ourselves?
It’s not time to move off-grid, we’re not suggesting that – don’t worry. But what we do suggest is that you take an element of your portfolio, savings and wealth off-grid.
Physical gold that is allocated and segregated is about as off-grid as you can get when it comes to investments. Sure, you can have some crypto currencies and some shares but they’re unbelievably connected to the outside world thanks to just the click of button. You cannot transact them without using an electronic device.
When it comes to physical gold, it does not rely on you having the safest chip in your smartphone or ensuring no-one is listening to you at home chatting to your loved ones.
Gold bullion has been bought by millions all over the world because of its role in protecting investors during times of war, financial hardship and economic disasters. It is only recently that the idea of cyber warfare and the misuse of this power by governments has become an important point of consideration.
Gold is as relevant here as it always has been. But it is specifically allocated, segregated physical gold which will protect from these risks – not paper gold or digital gold.
Owning gold coins and bars either in one’s possession or in allocated and segregated storage will protect people and will be accessible and liquid. It will protect investors and savers and those who use online banking from malicious attacks. Let’s face it we’re all there already and these growing risks are very real.
Related reading
Internet Shutdowns Show Risk of Digital Gold Platforms
Cyberwar Risk – Was U.S. Navy Victim Of Hacking?
Cyber Wars Could Crash Markets and Threat To Humanity – Buffett and Rickards
News and Commentary
Gold scores longest winning streak since 2011 (MarketWatch.com)
Palladium prices could top gold as record rally continues – GoldCore in Marketwatch (MarketWatch.com)
Turkish central bank’s gold holdings hit record as dollar holdings fall (HurriyetDailyNews.com)
Pakistan ditches dollar for trade with China hours after Trump’s denunciation (CNBC.com)
London house prices dropped in 2017: This is how the experts reacted (CityAM.com)
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Commodites Are Cheap Versus Stocks (Incrementum via Capital and Conflict)
Next Decade’s Most Important Chart (CapitalAndConflict.com)
Gold ETF GLD just did something it’s never done before (CNBC.com)
Dow 25K! Here’s what it says about the stock market (MarketWatch.com)
6 money lessons I’m going to remember this year (StansBerryChurcHouse.com)
Iranians Struggle As The Cost Of Basic Goods Surges (Statista.com)
Morgan Stanley Wealth Sells All Junk Bond Holdings, Warns Of Recession Risk (ZeroHedge.com)
Jeremy Grantham, who predicted the last two bubbles, warns the stock market is ready for a “melt-up” (CityAM.com)
Gold Prices (LBMA AM)
04 Jan: USD 1,313.70, GBP 969.77 & EUR 1,090.24 per ounce
03 Jan: USD 1,314.60, GBP 968.20 & EUR 1,092.96 per ounce
02 Jan: USD 1,312.80, GBP 968.85 & EUR 1,087.52 per ounce
29 Dec: USD 1,296.50, GBP 960.84 & EUR 1,082.45 per ounce
28 Dec: USD 1,291.60, GBP 960.43 & EUR 1,082.75 per ounce
27 Dec: USD 1,285.40, GBP 958.78 & EUR 1,081.54 per ounce
22 Dec: USD 1,268.05, GBP 947.74 & EUR 1,069.85 per ounce
21 Dec: USD 1,265.85, GBP 945.97 & EUR 1,065.09 per ounce
Silver Prices (LBMA)
04 Jan: USD 17.13, GBP 12.64 & EUR 14.20 per ounce
03 Jan: USD 17.12, GBP 12.63 & EUR 14.25 per ounce
02 Jan: USD 17.06, GBP 12.59 & EUR 14.15 per ounce
29 Dec: USD 16.87, GBP 12.48 & EUR 14.07 per ounce
28 Dec: USD 16.74, GBP 12.46 & EUR 14.02 per ounce
27 Dec: USD 16.50, GBP 12.30 & EUR 13.87 per ounce
22 Dec: USD 16.18, GBP 12.08 & EUR 13.65 per ounce
21 Dec: USD 16.15, GBP 12.08 & EUR 13.61 per ounce
Recent Market Updates
– Gold Has Best Year Since 2010 With Near 14% Gain In 2017
– Happy 2nd Birthday Bail-in Tool! We Suggest Gold As The Perfect Gift
– 98,750,067,000,000 Reasons to Buy Gold in 2018
– Gold, Bitcoin and the Blockchain Replaces the Banks – Realists Guide To The Future
– It’s A Wonderful Life Is A Wonderful Lesson To Hold Gold Outside of The Banking System
– Goldnomics Podcast – Gold, Stocks, Bitcoin in 2018. Everything Bubble Bursts?
– What Peak Gold, Interest Rates And Current Geopolitical Tensions Mean For Gold in 2018
– New Rules For Cross-Border Cash and Gold Bullion Movements
– ‘Gold Strengthens Public Confidence In The Central Bank’ – Bundesbank
– WGC: 2018 Set To Be A Positive Year For Price of Gold and Investors
– Year-end Rate Hike Once Again Proves To Be Launchpad For Gold Price
– UK Stagflation Risk As Inflation Hits 3.1% and House Prices Fall
– Buy Gold, Silver Time After Speculators Reduce Longs and Banks Reduce Shorts
Market Snapshot
S&P 500 futures up 0.3% to 2,730.75
STOXX Europe 600 up 0.5% to 395.67
MSCI Asia Pacific up 0.6% to 179.04
MSCI Asia Pacific ex Japan up 0.6% to 586.16
Nikkei up 0.9% to 23,714.53
Topix up 0.9% to 1,880.34
Hang Seng Index up 0.3% to 30,814.64
Shanghai Composite up 0.2% to 3,391.75
Sensex up 0.5% to 34,141.10
Australia S&P/ASX 200 up 0.7% to 6,122.35
Kospi up 1.3% to 2,497.52
German 10Y yield fell 0.5 bps to 0.429%
Euro down 0.2% to $1.2047
Italian 10Y yield fell 5.2 bps to 1.746%
Spanish 10Y yield fell 1.4 bps to 1.529%
Brent futures down 0.9% to $67.48/bbl
Gold spot down 0.4% to $1,317.36
U.S. Dollar Index up 0.2% to 92.07
Top Overnight News
Euro-area inflation slowed to 1.4% last month from November’s 1.5%, and the underlying rate unexpectedly failed to accelerate, easing pressure on the ECB to unwind stimulus
President Donald Trump fired off a tweet saying that a book alleging dysfunction, backstabbing and chaos in his administration was “full of lies” and that he had given the author, Michael Wolff, “zero access” to the White House; Wolff’s publishers said they would bring forward publication of “Fire and Fury” to Friday
China capped how much bond traders at brokerages and fund companies can earn from a year’s work to 1 million yuan ($154,000), people with knowledge of the matter said, as regulators step up a campaign to control risk-taking across financial markets
Asian equities closed the week out on a high, following yet another day of gains in the US, whereby the DJIA broke 25k for the first time. Strong data out of the US boosted sentiment with the ADP figure beating analysts’ estimates, hinting at a firm number in today’s US NFP report. ASX 200 (+0.7%) continued to make fresh 10yr highs with the index finding support from financial and mining stocks. Nikkei 225 (+0.9%) had its best two day gain since November and probed 26yr highs amid the rise in banking stocks, while Chinese markets also posted gains (Shanghai Comp +0.2%, Hang Seng Index +0.3%)
Top Asian News
Bubbly H.K. Housing Is Unsustainable, $2.6 Billion Fund Says
HNA Said to Walk Away From Late-Stage Value Partners Talks
Axiata Surges as Carrier Said to Mull $500 Million Tower IPO
China Is Said to Keep 6.5% Economic Growth Target Amid Debt Push
China Data Mismatch Could Imperil Aluminum’s Stand-Out Surge
European equities (Eurostoxx 50 +0.5%) are also trading higher across the board in the wake of another upbeat Asia-Pac session which saw the Nikkei 225 print its best two-day gain since November. In terms of sector performance, auto names are performing well with Volkswagen (+2.7%), Peugeot (+2.7%) and Fiat Chrysler (+3.2%) all top of the DAX, CAC 40 and FTSE MIB respectively following a slew of broker upgrades at JP Morgan with utility names, Centrica (+1.9%) and United Utilities (+1.4%) at the top of the FSTE 100 following broker upgrades at Credit Suisse. Elsewhere, Dialog Semiconductor (-3.7%) shares are lagging their peers in the wake of reports that Apple products have been hit by chip flaws.
Top European News
U.K. Car Sales Drop Most Since Recession on Brexit, Diesel Fears
Euro-Area Inflation Slows, Undermining Calls for ECB to Curb QE
Ryanair Pulls Further Ahead of Pack Even After Pilot Debacle
Deutsche Bank CIB Unit Sought $1.5 Billion Bonus Pool, WiWo Says
Dole Food Takeover Approach From Belgium’s Greenyard Fails
President Macron Wins French Pollsters’ First Ever ‘Beer Test’
European fixed income has seen trading volumes remain paltry even by normal pre-US jobs data standards (MiFiD 2 and tighter Chinese bond market rules may help to explain low turnover), but there have been some decent moves, disconnects and distortions. Gilts have confounded the weaker or indifferent impulses seen ahead of the Liffe open to push ahead from the off (aside from a brief 2 tick stutter below parity), and printed at 124.88 for a 23 tick gain on what appears to be at least corrective due to their earlier closing time. Nevertheless, Bunds have caught a bid to register a fresh Eurex peak as well, at 161.74 (+15 ticks vs -9 ticks at the other extreme), after holding in at the 50% retracement support level. 161.82-86 forms the next tech resistance area, while bears will still be eyeing 161.36 ahead of Thursday’s 161.26 low and the 161.18 ultimate downside target that has survived several times. US Treasuries marginally weaker pre-NFP, aside from flat 2 year notes as the curve steadies a tad following the most recent bout of flattening.
In FX markets, AUD/USD one of the big movers overnight, with the pair recoiling from 0.7870 to a 0.7835 low on the back of Aussie trade data showing a deficit vs expected surplus as exports completely stagnated. Elsewhere, broad risk appetite, as Wall Street sets more all-time records and global stocks continue to rally, has undermined the traditional safe-haven currencies, and with the JPY also losing ground amidst decent cross-related flows (ie EUR/JPY bids said to be targeting 140.00 from around 136.50 currently). NZD/CAD/GBP/EUR are all holding up relatively well vs the USD as the DXY attempts to stay within touching distance of the 92.000 handle ahead of today’s US jobs report.
In commodities, both WTI and Brent crude futures are seen lower as markets take a breather from the recent rally which had lifted prices to multi-year highs with some profit-taking potentially entering the market. In terms of energy newsflow, things remain on the light side but markets remain sensitive to events in Iran and any potential backlash from the US via sanctions. In metals markets, gold prices have been seen lower overnight amid touted profit-taking, albeit prices remain in close proximity to recent highs. Elsewhere, Chinese steel futures were seen lower overnight as weather concerns continue to sway prices whilst Zinc (highest since mid-2007) remains supported in London amid supply fears.
Looking at the day ahead, the December CPI for the Eurozone (1.4% yoy expected), France (1.3% yoy expected) and Italy are due. Then the Eurozone’s November PPI, Germany’s retail sales and France’s consumer confidence data are also due. In the US, there is the December nonfarm payrolls, ISM non-mfg composite, unemployment rate and average hourly earnings data. Elsewhere, the November trade balance, factory orders as well as the final readings for the durable and capital goods orders are also due. Onto other events, the Fed’s Harker and Mester are both scheduled to speak.
US Event Calendar
8:30am: Change in Nonfarm Payrolls, est. 190,000, prior 228,000
Unemployment Rate, est. 4.1%, prior 4.1%; Underemployment Rate, prior 8.0%
Average Hourly Earnings MoM, est. 0.3%, prior 0.2%; YoY, est. 2.5%, prior 2.5%
Average Weekly Hours All Employees, est. 34.5, prior 34.5
8:30am: Trade Balance, est. $49.9b deficit, prior $48.7b deficit
10am: ISM Non-Manf. Composite, est. 57.6, prior 57.4
10am: Factory Orders, est. 1.1%, prior -0.1%; Ex Trans, prior 0.8%
10am: Durable Goods Orders, prior 1.3%; Durables Ex Transportation, prior -0.1%
Cap Goods Orders Nondef Ex Air, prior -0.1%;
DB’s Jim Reid concludes the overnight wrap
Flying at the moment are risk assets after a strong day yesterday. More on this later but it’s an important day for data today. Hot on the heels of a bumper US manufacturing ISM on Tuesday (59.7 vs. 58.2 expected), a beat on the services PMI (53.7 vs 52.5 expected) and ADP (250k vs 190k expected) yesterday, today sees the all-important US employment report. To be honest payrolls (DB forecast upped from 185k to 220k last night, consensus 190k but probably higher now after ADP) is a sideshow as Average Hourly Earnings will be the key part of the release. Both DB and consensus are expecting 0.3% MoM and 2.5% YoY. Earnings are key at the moment as this global recovery/expansion has everything apart from wage growth/inflation which in turn is keeping the Fed rate hikes gradual and volatility low. DB has put out a fair amount of research over the last few weeks detailing how US wage growth is picking up so it’ll be interesting to see whether this can find its way into the main headline data soon!
Elsewhere in the report the unemployment rate (4.1% vs. 4.1%) should remain stable at its lowest level since 2000. Our economists expect this stability to be temporary as they expect the unemployment rate to break through 4% in H1 2018. This level could prove important since they recently found using state-level data that wage growth picks up significantly as the unemployment rate falls below 4%. So they would argue wage growth is coming even if today’s number is flat.
Given the recent strength in US data, it’s interesting that the big call out of DB yesterday was to target 1.30 on EUR/USD in 2018. George Saravelos suggests that although the Fed is hiking rates, US rate differentials are widening and the dollar has become a G10 high-yielder, the dollar is not responding. He thinks current dynamics look very similar to the 2004-06 Fed cycle. Back then the dollar weakened even as the dollar became one of the highest-yielding currencies in the world. Weaker flows into the US mattered more than rising rates. Our FX team believe flows will matter more in 2018 too, and these are decidedly EUR/USD positive.
The buzz phrase yesterday was speculation about whether we were in a ‘melt up’ for risk assets. US bourses reached fresh highs for the third consecutive day with the S&P 500 up 0.40% and the Dow cracking through 25,000. All Euro equities were higher with Stoxx 600 up 0.89% to the highest in 8-weeks and the Nikkei jumping 3.26% near its 26 year high after trading resumed for 2018. Within the S&P, all sectors excluding real estate and utilities were in the green while the Stoxx’s gains were led by financials and energy stocks. Elsewhere, credit spreads continue to grind tighter (c1bp lower), with US CDX IG now at 46.1bp and Europe Main at 43.9bp.
This morning in Asia, markets are trading higher as we type. The Kospi is up 1.08% and reversing its underperformance from yesterday, while Nikkei and Hang Seng are up 0.82% and 0.05% respectively. Elsewhere, North Korea has accepted South Korea’s proposal for talks on 9 January and Japan’s December Nikkei composite PMI was in line at 52.2.
Staying in Asia, our Japanese team published their macro and equity outlook for 2018. They expect a slowing Japanese economy and forecast 0.9% real GDP growth in 2018 (vs. FY17 1.9%; FY19 0.8%). They note durable goods spending, capital investment and housing investment are at the end of their cycles or are in the midst of transitioning to a decline. On rates, they believe the expected US rate hikes in 2018 should not have much impact on yen interest rates as long as the BOJ continues its yield curve control (YCC) policy – which should continue on the assumption that core CPI will not consistently exceed 1%. Further, they expect Haruhiko Kuroda to be reappointed as BOJ governor, in part due to the absence of a strong alternative candidate. Finally, they maintain their positive stance on Japanese equities, mainly driven by their expectations that aggregate Japanese earnings will remain strong, supported by slowing but robust global growth and a stable if not weaker yen. For more details, refer to the link.
Now recapping other market performance from yesterday. In government bonds, core 10y yields were mixed but little changed. Treasuries initially weakened after the strong ADP print, but pared losses to close +0.5bp to 2.453%, while Gilts rose 2bp and Bunds fell 0.6bp. Notably, peripherals outperformed with yields down 5-7bp, in part supported by Spain’s first government bond sale for the year, selling €4.6bn of bonds which was towards the top end of its targeted range.
Turning to currencies, the US dollar index weakened 0.32%, while Sterling and Euro gained 0.26% and 0.44% respectively. In commodities, WTI oil rose 0.42% and consolidated near its three year high after the EIA report confirmed a fall in US crude inventories. Elsewhere, precious metals strengthened c0.6% (Gold +0.75%; Silver +0.54%) and other base metals also advanced modestly (Copper flat; Zinc +0.62%; Aluminium +0.43%).
Away from markets and onto Brexit, France’s President Macron has called for a unified EU approach and “common mandate” amongst EU members in the next stage of Brexit talks. He noted that each country can have their own interests, but if we acted like the prisoner’s dilemma game theory, then its “probable that collectively we’ll create a situation that is unfavourable to the EU and thus to each one of us”. Elsewhere, the Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs Ted McKinney noted if the UK has its own rules on farming and food standards rather than keeping the existing EU rules, then “there is much greater opportunity for trade” between the two countries.
In the US, the Fed’s Bullard reiterated his views that a tightening labour market is unlikely to materially lift inflation. He also noted that he “would not want the Fed to push so hard that we get to an inverted yield curve situation” and that the yield curve issue “is something that needs to be debated out sooner rather than later”. On Bitcoin, he noted it is not something “that monetary policy makers have to worry very much about at this point”. Elsewhere, the SEC Chairman Jay Clayton noted that “…we again caution you that, if you lose money (on cryptocurrencies), there is a substantial risk that our efforts will not result in a recovery of your investment.”
Before we take a look at today’s calendar, we wrap up with other data releases from yesterday. In the US, the final reading for the December composite PMI was above expectations at 54.1 (vs. 53 previous). Elsewhere, the weekly initial jobless claims were higher than expectations (250k vs. 240k) but continuing claims (1,914k vs. 1,928k expected) were lower.
In Europe, the final readings for the Eurozone’s services and composite PMI were both revised 0.1ppt higher to 56.6 and 58.1 respectively – the highest since the GFC. On a country basis, Germany’s services PMI was unrevised at 55.8 but the composite PMI was 0.2ppt higher at 58.9. In France, its composite PMI was revised 0.4ppt lower to 59.6. Finally, the flash composite PMI for Italy was above market (56.5 vs. 56 expected) while the UK was softer (54.9 vs. 55 expected).
In the UK, the December Nationwide House price index was above market at 2.6% yoy (vs. 2.0% expected), while London posted its first full year decline since 2009 (albeit -0.5% yoy). Elsewhere, the November mortgage approvals (65.1k vs. 64.1k expected) and net lending on dwellings both beat expectations (£3.5bln vs. £3.4bln).
Looking at the day ahead, the December CPI for the Eurozone (1.4% yoy expected), France (1.3% yoy expected) and Italy are due. Then the Eurozone’s November PPI, Germany’s retail sales and France’s consumer confidence data are also due. In the US, there is the December nonfarm payrolls, ISM non-mfg composite, unemployment rate and average hourly earnings data. Elsewhere, the November trade balance, factory orders as well as the final readings for the durable and capital goods orders are also due. Onto other events, the Fed’s Harker and Mester are both scheduled to speak.
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Thank You Harvey Always Good stuff https://www.silverdoctors.com/tag/harvey-organ/
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Thanks for the advice
MMgys
who do you think is buying all that gold up
good guys ?
MMgys
"Say What"
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MMgys
Courtesy: the man that continues to Wow us !! wow_happens28 Thanks Man
and Thank You All for your Outstanding contributions
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Eric Sprott: Maybe the whole fraud of the Comex is unwinding
Submitted by cpowell on Fri, 2018-01-05 20:11. Section: Daily Dispatches
3:12p ET Friday, January 5, 2018
Dear Friend of GATA and Gold:
Weakness in the U.S. dollar is pushing gold and silver up along with commodities generally, mining entrepreneur Eric Sprott tells interviewer Craig Hemke in the weekly wrapup for Sprott Money News.
Citing the work of gold researchers Harvey Organ and Ronan Manly, Sprott and Hemke also discuss the extraordinary increase in the use of the "exchange for physicals" procedure for clearing gold and silver contracts on the New York Commodities Exchange, which suggests that little metal is available for delivery in New York. "Maybe the whole fraud of the Comex is unwinding," Sprott says.
We can only hope.
The interview is 12 minutes long and can be heard at the Sprott Money internet site here:
https://www.sprottmoney.com/Blog/maybe-the-whole-fraud-of-the-comex-is-u...
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Thanks GATA
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