We are in the rumour mill stage with respect to Europe.
Today we heard that Europe is now planning on a leveraged EFSF that will bail out the banks and supply enough Euros to firewall Italy and Spain.
The problem is that this will lead to a huge hyperinflation and increase the risk of systemic failures throughout the globe.
I will present you articles on this front in the body of my commentary but first let us head over to the comex.
The price of gold rose to $1722.00 up a cool $23.10. Silver did not perform well at all today as the bankers kept it at bay. It rose by only 26 cents to $33.29. The gold/silver shares were also heavily shorted. Thus with the banking cartel leaning on both silver and the banking shares you can bet the farm that we will have a pretty good raid tomorrow.
I am surprised we have not heard from Dennis Gartman today. I was a bit nervous when I heard he bought a few units of gold denominated in both USA terms and in Euros. He will get the word early tomorrow and then sell his newly bought metal.
The total gold comex OI rose by a rather large 7426 contracts to 443,723 from Tuesday's level of 436,297. This was to be expected with gold's big rise. The front delivery month of October saw it OI fall from 626 to 362 for a loss of 264 contracts. We had 241 deliveries so we finally got some cash settlements as the month is drawing near its end and thus we lost a few gold contracts on what is standing. The front December contract rose from 261,018 to 267,825 as this month will surely be a battle royale. The estimated volume at the gold comex today was tiny at 141,335 despite gold's advance. The confirmed volume yesterday was superb at 203,637 as longs jumped in with both feet and the bankers obliged.
The total silver comex OI continues to edge up on a snails pace. Determined longs are slowly taking on the banking cartel in silver. They are at a disadvantage as they do not have the luxury of leverage due to the high margin requirements. The bankers as Jeff Neilson described in yesterday's commentary use borrowed SLV paper to show the comex that it is their ownership so they would not have to put up margin cash. The front options expiry month of October saw its OI rise from 3 to 12 for a gain of 9 contracts. We had only one delivery yesterday so we gained 8 contracts or 40,000 oz of silver standing and again we lost zero oz to cash settlements.
The estimated volume at the silver comex today was again on the low side at 38,105. The confirmed volume on Tuesday was pretty good at 60,047.
Inventory Movements and Delivery Notices for Gold: Oct 26.2011: Chart for Oct.
Gold Ounces Withdrawals from Dealers Inventory in oz nil Withdrawals from Customer Inventory in oz 351 (Manfra,HSBC,Brinks) Deposits to the Dealer Inventory in oz nil Deposits to the Customer Inventory, in oz nil No of oz served (contracts) today 28500 (285) No of oz to be served (notices) 7,700 (77) Total monthly oz gold served (contracts) so far this month 650,400 (6504) Total accumulative withdrawal of gold from the Dealers inventory this month 4629 Total accumulative withdrawal of gold from the Customer inventory this month 190,849
again no gold was deposited to the dealer and no gold was withdrawn. We had no gold deposited to the customer. The only real transaction was a withdrawal through the customer as follows:
1. 153 oz withdrawn from Brinks 2. 102 oz withdrawn from HSBC 3. 96 oz withdrawn from Manfra.
total withdrawal 351 oz.
we had an adjustment whereby the customer leased gold to the dealer to the tune of 196 oz. Also 32 oz was adjusted out of a customer account due to an accounting error.
The registered gold remains at 2.273 million oz.
The CME notified us that we had another chunky delivery of 285 contracts or 28500 oz. The total number of notices filed so far this month total 6504 or 650400 oz of gold.
To obtain what is left to be filed, I take the OI standing (362) and subtract out today's deliveries (285) which leaves us with 77 notices to be filed upon or 7700 oz
Thus the total number of gold oz standing in this delivery month is as follows:
650400 oz (served) + 7700 (oz to be served) = 658,100 oz or 20.46 tonnes. we lost 2300 oz of gold standing due to cash settlements.
And now for silver
First the chart:
Silver Ounces Withdrawals from Dealers Inventory nil Withdrawals fromCustomer Inventory 10,259 ( Scotia) Deposits to theDealer Inventory nil Deposits to the Customer Inventory nil No of oz served (contracts) 50,000 (10) No of oz to be served (notices) 10,000 (2) Total monthly oz silver served (contracts) 3,725,000 (745) Total accumulative withdrawal of silver from the Dealersinventory this month 120,533 Total accumulative withdrawal of silver from the Customer inventory this month 8,267,652
the silver comex vaults have become rather quiet lately. We still do not have any silver deposits into the dealer and no silver withdrawal.
We only had one entry, a customer withdrawal from Scotia to the tune of 10,259 oz. we had no adjustments.
Thus the silver registered inventory remains at 31.54 million oz. The total of all silver lowers to 105.93 million oz.
The CME notified us that we had 10 notices filed for 50,000 oz. The total number of notices filed so far this month total 745 for 3,725,000 oz. To obtain what is left to be served upon, I take the OI for October (12) and subtract out today's deliveries (10) which leaves me with the same 2 contracts still pending. (10,000 oz)
Thus the total number of silver oz standing in this non delivery month is as follows:
3,725,000 oz (served)_ + 10,000 oz (to be served) = 3,735,000 oz. we gained 40,000 oz of silver standing and lost nothing to cash settlements.
end
Let us now proceed to our ETF's SLV and GLD
and then our physical gold and silver funds: Sprott and Central Fund of Canada.
The two ETF's that I follow are the GLD and SLV. You must be very careful in trading these vehicles as these funds do not have any beneficial gold or silver behind them.
They probably have only paper claims and when the dust settles, on a collapse, there will be countless class action lawsuits trying to recover your lost investment.
There is now evidence that the GLD and SLV are paper settling on the comex.
Thus a default at either of the LBMA, or Comex will trigger a catastrophic event.
Oct 26.2011:
TOTAL GOLD IN TRUST Tonnes: 1,244.16 Ounces: 40,000,856.99 Value US$: 68,581,890,893.45
Oct 25.2011:
TOTAL GOLD IN TRUST Tonnes: 1,244.16 Ounces: 40,000,856.99 Value US$: 66,222,589,868.03
after yesterday's huge gain, we neither added or removed any gold.
And now for the SLV for Oct 26.2011: at 7 pm est
Ounces of Silver in Trust 312,981,397.000 Tonnes of Silver in Trust 9,734.81
Oct 25.2011:
Ounces of Silver in Trust 316,387,527.000 Tonnes of Silver in Trust 9,840.75 Oct 24.2011:
Ounces of Silver in Trust 316,387,527.000 Tonnes of Silver in Trust 9,840.75 we lost a monstrous 3.406 million oz of silver. Due to the huge gain in silver price, my guess is that real silver left London for foreign shores. London is rapidly running out of metal.
And now for our premiums to NAV for the funds I follow:
1. Central Fund of Canada: traded to a positive 4.5 percent to NAV in usa funds and a positive 4.0% to NAV for Cdn funds. ( Oct 26.2011). 2. Sprott silver fund (PSLV): Premium to NAV rose to a positive 19.23%to NAV Oct 26/2011 3. Sprott gold fund (PHYS): premium to NAV rose to a 3.53% to NAV Oct 26.2011).
I am glad to see the Sprott silver fund regain its powerful surplus to NAV. Central Fund of Canada is also supporting a decent positive as its Sprott's gold.
Let us see what happens tomorrow with the raid.
end
Now let us see the big stories of the day and how it will affect gold and silver:
The following news event sent the Dow rising by 160 points and everybody jumping for joy:
(from Reuters)
13:59 Euro zone palsn to leverage EFSF bailout "several fold" -- Reuters, citing draft summit statement * Finance Ministers will decide the details of the leverage in November * EFSF will have the flexibility to deploy two models: risk insurance and special purpose vehicle, simultaneously * Additional enhancements to the EFSF and resources are possible through cooperation with the IMF, according to the draft
end
Zero hedge provides the eurozone headlines as to the announcement of several fold leverage to the EFSF:
I would be very surprised if any of this is adopted at their next meeting in a few days:
its great that USSIF management is working on it to get the U.S. Silver listed a.s.a.p. @ NYSE-AMEX @ the right time @ the Right Place @ the TSE / TSX big exch. first @ its goes on the Right Way @ the Right Order @ http://www.us-silver.com/s/Home.asp
Market Data 
Markets 
AI
