Good morning Ladies and Gentlemen:
I thought we would get extreme volatility in the markets on Tuesday, the first day back from the Martin Luther King holiday. I guess traders took an extra day
as the roller-coaster trading in all markets commenced on Wednesday and continued right through Friday.
On Friday, the Dow retreated by 212 points and the Nasdaq by 61 points.
As for gold, the precious metal declined by $13.50 to 1089.20. During the physical time zones, gold saw brisk action rising to 1096.00 but as soon as the afternoon fix was completed,
the not for profit gold cartel sold massive contracts on the comex and drove the price to close at 1089.20
Yesterdays, volume was immense at 260,000. They do not tell us switches anymore, but from the data it looks like around 20,000 left the Feb. contract to the April contract.
At the conclusion of my commentary, I will forward to you results of the comex gold and silver trading for yesterday.
The volume of gold trading at the comex on Thursday turned out to be 328000. In a rather strange development, the open interest declined by only 2400 contracts on that huge volume.
This no doubt infuriated our banking cartel as they could not shake the leaves off the tree. The bankers had their own problems to contend with, with the announcement of Obama that the USA was going to restrict trading by bankers. I will delve deeply into this in my commentary today.
As for silver, the volume on the comex was an astounding 51000 contracts (250 million oz). To give you an idea of the amount of silver offered: the world produces 500 million oz of silver in a given year and have no above ground strategic supplies like their richer cousin, gold.
Thus in one day, the comex traded 1/2 its yearly production. What is also strange, the comex is not the world's largest trader in silver and gold. That belongs to the LBMA which trades on a daily basis
of around 100,000 contracts or 500 million oz of silver and for gold around 2100 metric tonnes. (75000 contracts) In gold that equates to a full years production of gold sold at the LBMA in one day.
In another strange development, the OI in silver (basis Thursday) rose by 721 contracts to 126941. Please recall that silver has lost almost 2.00$ per oz and yet the OI has gone up????
As for gold, we are nearing the completion of the Feb contract. It goes off the board on Jan 26.10 as does the options. The OI for February stands tonight at 197000 which is extremely high for 4 days to go.
In another development we are seeing strange announcements at the comex at the various warehouses.
For gold: 16 tonnes of gold (physical) was adjusted out of the dealer inventory into the investor's inventory. This caused the dealer inventory to fall to a dangerously low 1.8 million oz or 18,000 contracts.
This is the amount of gold that is available to be delivered upon!
For silver: 2.4 million oz were removed from the dealer inventory to investor inventory. This caused the level of dealer inventory to fall to a dangerously low 47 million oz of silver or 9400 contracts of silver.
To boot, for January options (January is a non delivery month for both silver and gold) in gold, a huge 2808 contracts are already standing for delivery (280 thousand oz of gold or 10 tonnes of gold)
This is extremely high for just options in a non delivery month. Not only that, but a further 45 contracts are standing which have not been hit.
I would like to point out, that this does not include February options which expire Jan 26.10. There is no doubt that our wicked bankers will be trying to keep the option holders from exercising contracts.
In silver: the January options hit for metal total 286 contracts or 1.43 million oz of silver. Only 1 contract remains to be hit.
There is no doubt that this coming week will be extremely volatile as the bankers wish to get those long holders from taking delivery.
The COT report was released after the market closed: (Remember that this is basis tuesday night)
Since most of the action was from Wednesday through Friday, this COT report is basically a dud. It shows nothing.
In another strange development, the gold ETF GLD remained the same inventory volume for the last three days at 1111 tonnes of gold:
This is why Main Street is so angry. It is the reason why the voters in Mass. decided that they had had enough of the free spending antics of the Deomcrats:
The consumer is 70% of the GDP. If they are not in good shape, the ecoomy just cannot recover. Lets see how good a shape the credit card industry is in: