Jim Sinclair’s Blockbuster/Gold and silver raid today

Gold closed down $12.40 to $1408.60 (comex closing time).  Silver fell by 51 cents  to $22.81 (comex closing time).
As I promised you, the chances for a raid were very high due to the falling gold and silver equities and the lower silver price.

In the access market at 5 pm gold and silver reversed course and rose northbound:
gold: $1414.10
silver: $22.98

At the comex, the open interest in silver rose sharply to 157,264 contracts as it is still  holding firm at elevated levels . The open interest on the gold contract fell by 252 contracts to 416,581. Generally, I would say that 390,000 OI would be rock bottom for gold but in this environment anything goes.  The total amount of gold ounces standing for April rose slightly to 34.26 tonnes as silver also  had a slight increase to 3.770 million oz standing.

The big news in the physical markets was reported by Jim Sinclair.  His close friend could not retrieve his allocated gold stored in Switzerland due to “concerns of money laundering and terrorism”. First we had the Amro story where customers were paid cash instead of receiving gold on delivered contracts. Then Andrew Maguire reported yesterday that customers who had leased gold for a “return” on their stored gold could not get their gold back.  And today, the Jim Sinclair story  (see below…Jim Sinclair/Dave from Denver)

The USA mint announced late tonight that the  lowest denominated gold bar the 1/10 oz has been halted due to lack of supplies.

Goldman Sachs closed out their gold short this morning.

In paper news, the Chinese PMI report was terrible causing the Shanghai composite to tumble 2.57%.

European PMI‘s on both manufacturing and service were equally bad but do not worry,  We had the Fed and Japan printing massive QE and they are buying up  everything in sight.

Then the uSA flash PMI was also reported and it was weak as well.

We will go over these and other stories but first…………………….

Let us now head over to the comex and assess trading over there today:

The total gold comex open interest fell by 252 contracts today  from  416,833 down to 416,581,  with gold rising by $25.70 on Monday.  The front April OI fell by 26 contracts from 585  down to 559. We had 42 notices filed on Monday so we gained 16 contracts or 1600  gold oz will not be standing for the April gold contract month. The next non active contract month is May and here the OI fell by 103 contracts to 1402. The next big contract month is June and here the OI rose by  402 contracts from 254,602  up to 255,004.  The estimated volume today was huge at 211,950 or 21.195 million oz.  The world produces around 70 million oz ex China ex Russia.  Thus Tuesday’s volume equates to around 30% of global annual production. The confirmed volume on Monday was also huge at 200,998 contracts (approx 625 tonnes of gold).

The total silver comex OI  rose by 1442  contracts from 155,815 up to 157,264. It still looks like we still have some  stoic longs who seem impervious to pain as the OI in silver continues to remain elevated. The front non active delivery month of April saw its OI fall by 2 contracts from 28 down to 26 . We had 10 delivery notices filed on Monday, so in essence we gained 8 contracts or 40,000 oz of additional silver will stand for delivery in April.  The next big delivery month for silver is May and here the OI fell by 5154 contracts to stand at 38,960. We are less than 2  weeks away from first day notice for the May silver delivery month.   The estimated volume today was huge, coming in at  102,602 contracts which equates close to 513 million oz of silver. The world produces 700 million oz per year ex China ex Russia so in essence today’s volume equates to 73.3% of annual silver production. We had confirmed volume on Monday at 72,072 contracts which is a huge volume day . (.360 billion oz or 51.4% of annual silver production)

Comex gold/April contract month:

April 23.2013      April gold.

Withdrawals from Dealers Inventory in oz
Withdrawals from Customer Inventory in oz
 198,536.285 (HSBC,JPM, Scotia)
Deposits to the Dealer Inventory in oz
Deposits to the Customer Inventory, in oz
No of oz served (contracts) today
 42  (4,200  oz)
No of oz to be served (notices)
517  (51,700)  oz
Total monthly oz gold served (contracts) so far this month
10,499  (1,049,900 oz)
Total accumulative withdrawal of gold from the Dealers inventory this month
26,484.136  oz
Total accumulative withdrawal of gold from the Customer inventory this month
605,604.27  oz
We had good activity at the gold vaults.
The dealer had 0 deposits and 0 dealer withdrawal.

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