The Daily Gold and Silver Report

Gold closed down by $16.20 to $1366.00 (comex closing time).  Silver fell by 8 cents to $21.67  (comex closing time)

In the access market at 5:00 pm, gold and silver finished trading at the following prices :

gold: 1367.10
silver:  $21.67

At the Comex, the open interest in silver rose by a rather large 2408 contracts to 150,968 contracts despite silver‘s fall in price yesterday.  The silver OI is still  holding firm at these highly elevated levels. As I mentioned to you yesterday, the bankers will try and do everything possible to remove as many longs from the silver arena as possible. They must know something is up!!

The open interest on the entire gold comex contracts fell  by 4081 contracts to 372,950 which is still extremely low. There is no question that all of the weak speculators in gold have now departed. The number of ounces which is standing for gold in this June delivery month  is 940,500 or 29.2 tonnes.The number of silver ounces standing in this non active month of June  remained constant at 705,000 oz

Tonight, the Comex registered or dealer inventory of gold remained the same at  1.434 million oz or 44.60 tonnes.  This is still dangerously low.  The total of all gold at the comex also remained the same  at 7.706 million oz or 239.68 tonnes of gold.

JPMorgan’s customer inventory shows no  change and rests tonight at its nadir of 136,380.611 oz or 4.24 tonnes.  Its dealer inventory remains at 413,526.284 oz but it still must settle upon contracts issued in the June delivery month which far exceeds its inventory.

The total of the 3 major bullion dealers, Scotia , HSBC and JPMorgan have in the Comex dealer account only 30.02 tonnes of gold

The GLD  reported a loss in inventory of 1.51 tonnes of gold inventory. The SLV inventory of silver  remained firm with no losses or gains in inventory.

In physical stories we have reports from, Bill Holter and Chris Powell of GATA on the departure of Gary Gensler and maybe others at the CFTC.

On the paper side of things,we have Ron Paul tackling USA involvement inside Syria, Reuters, Matt Scuffham on the bail-in of the UK’s Co Op Bank, Ambrose Pritchard Evans on what will happen to the world if Bernanke “tapers” and finally Michael Snyder of Economic Collapse Blog as he discusses the plight of Detroit and the USA in general.

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

Let us now head over to the comex and assess trading over there today.
Here are the details:

First Richard Russell, on gold trading last night :

*Richard Russell last night…

“It looks like the great gold rip-off is completed and over. A few of the banks (JPM) spread the rumor that gold was heading for $1,000 and that the bull market in gold was toast. This set off a panic in gold and silver, which served the perpetrators well.

As the metals swooned, the crooks, who had sold the metals short, made a tidy fortune as the metals collapsed. At the same time, they loaded up on cheap gold and silver. In all, quite a play, during which a good many duped investors dumped their silver and gold.

I understand that there is now a huge speculative short position in gold on the Comex. This position will have to be covered. This means driving the shorts out of the market. Thus, the manipulators will have cleaned up — first by selling the metals short, and then by loading up on the metals at the bottom of the panic in preparation for (hopefully) the ride up.

My guess is that China and Russia soaked up a good deal of the bargain-priced gold near the bottom of the panic. China waits patiently while the US spends its way into bankruptcy. Which reminds me, there’s still lots of talk about the true amount of gold owned by the US. Then why the hell doesn’t the government or the Fed finally audit our gold holdings and put an end to the rumors? From what I understand, neither the Fed nor the US government want an audit. If the gold is really there, then why don’t they put an end to all the rumors? For heaven’s sake, let’s have an audit — or is there really something to hide?

I feel we are besieged with rumors, secrets, lies and manipulations. I’ve felt this way before, but I’ve never felt this strongly that we (Americans) are being lied to and manipulated. What’s to hide? Jesus told us that we must know the truth, and the truth will make us free. Then for God’s sake, start telling us the truth! My intuition tells me that if it’s a secret, it’s probably evil. Ultimately, good or bad, everything comes to light– although it may take time.” – Richard Russell.

The total gold comex open interest fell  by 4081 contracts from  377,031 down to to 372,950 with gold falling by $4.20 yesterday. The front active month of June saw it’s OI fall by 437 contracts from  1382 down to 945. We had 414 deliveries served upon our longs on Monday.  We thus lost 23  contracts or 2300 oz that will not stand in this delivery  month of June. The next delivery month is the non active July contract and here the OI fell by  68 contracts down to 651.  The next active delivery month for gold is August and here the OI fell by 4083 contracts from 212,754 down to 208,671. The estimated volume today was bad at 123,017 contracts.    The confirmed volume yesterday was atrocious at 82,551. It seems that the many now realize that the Comex is a crooked game so investors are seeking other means to acquire gold.

The total silver Comex OI surprisingly rose  despite as silver‘s fall  in price by 20 cents yesterday. It’s total OI is up by 2408  contracts to 150,968. The longs in silver remain resolute, willing to take on the criminal bankers who today threw a tantrum with their raid, as their object of the exercise was to remove some of those stubborn longs from the silver open interest. I doubt very much if today’s raid would have any effect on the total OI.  The front non active June silver contract month shows a loss in OI  of 4 contracts resting tonight at 25. We had 4 notices filed yesterday so in essence we neither gained nor lost any silver contracts. The next big delivery month is July and here the OI fell by only 437 contracts down to 57,686. We are less than  two weeks away from first day notice (June 28.2013) and judging from the relatively high OI in July, we may see some fireworks in silver.  The estimated volume today was good coming in at 57,686 contracts.  The confirmed volume on Friday was  good at 43,115.

Comex gold/May contract month:

June 18/2013

the June contract month:

Withdrawals from Dealers Inventory in oz
Withdrawals from Customer Inventory in oz
202.48 oz (Scotia)
Deposits to the Dealer Inventory in oz
Deposits to the Customer Inventory, in oz
12,178.435 (Scotia) oz
No of oz served (contracts) today
 11 (1,100  oz)
No of oz to be served (notices)
934 (93,400 oz
Total monthly oz gold served (contracts) so far this month
8471  (847,100  oz)
Total accumulative withdrawal of gold from the Dealers inventory this month
78,856.579 oz
Total accumulative withdrawal of gold from the Customer inventory this month
259,153.01 oz
We again had no activity at the gold vaults
The dealer again  had 0 deposits and no  withdrawals.

Tinapa is gold mine in waiting

Frank Umeh a lawyer and Managing Director, Tradewinds Duty Free Market, Tinapa Free Trade zone, Calabar, in this interview offers insights into how the Tinapa free trade will be successful. He said he believes that Tinapa is a viable project and everyone should be thinking of how to make it do better than it is doing presently.


How would you describe doing business in Tinapa?

Tinapa is a relatively new chapter in business in this clime. It is like a breath of fresh air. Tinapa is the only free trade zone in Nigeria today that is engaged in trade in finished goods. The trade in Tinapa involved importing goods from outside the country for onward distribution to either the local market or outside Nigeria. If you have customers from other countries outside Nigeria coming into Tinapa to buy, it becomes a form that Dubai takes. You have Nigerians going to Dubai to import goods into Nigeria.

In Tinapa, we have customers from different countries like Cameroun and even from the Equatorial Guinea coming in to do shopping. Then for the local economy, Nigerians come to Tinapa to make their purchases. Anytime you visit Tinapa, it is assumed that you have left the country. Trade in Tinapa has been good; it has been wonderful but it could be better.

What is your take on the operation of free trade zones in this country?

I have been a keen observer of the development in Tinapa free trade zone since it was commissioned. And my training as a lawyer is a leverage in the essence that one understands the legal framework involved. I have read several gazettes of other free trade zones within and outside this clime. I have travelled to Dubai and I have also heard much about the operations of the Dubai free trade zone.

When the Tinapa law was signed by the late President Umar Yar’Adua in 2009, I took time to read through the law and I saw the enormous potential and opportunity that Tinapa has for any serious trader that really wants to excel beyond the identified hiccups and difficulties in logistics in the importation of goods into the zone then.

I have read the law of Tinapa back to back and, therefore, conversant with the procedure. So, it’s been more of learning and practice. I believe that one needs to constantly update his knowledge in any field of endeavour he is into because when you stop reading, you start dying.

What informed your uncommon optimism that Tinapa free trade zone would be viabe?

I have studied the Tinapa project and I have come to the conclusion that it is a sound concept. The Free Zone was actually created to meet a need that had been identified.

Government didn’t just set up this zone for the sake of setting up a zone. But like every new concept, there are bound to be challenges especially in a unique environment like ours. For me, failure is not an option in this matter. Instead of asking if Tinapa will succeed or not, we should be thinking of how to make it successful even beyond the expectation of those behind it.

The targeted issue should be on how Tinapa can meet the needs for which it was established. And when you talk about those needs, you talk about the quality of goods, the manufacturers’ interest to look into the Nigerian trade, the image of the country, the collateral interests of the investors, the businessmen and the customers.

It should also be noted that there should be a three-fold approach to it: short-term, medium-term and long-term goals. So, I believe that Tinapa is a viable project and we have what it takes to make it do better than it is doing presently. And one step of ensuring success is through structural funding.

I’ve said it elsewhere that it’s not the kind of loan that you get from the bank. It’s a long-term funding plan; fund plan that that will make it attractive for the manufacturers to turn Tinapa into the primary market. From importing goods, manufacturers will come into Tinapa.

One advantage Tinapa has is that unlike UAE, which is all desert, and people must fly in to do business in Dubai, Tinapa is easily accessible. Tinapa is gold mine waiting to be tapped. I am passionate about getting the place to work because it will address the vicious cycle of economic, social and moral distress plaguing the country.

What is the attraction of doing business with you in Tinapa?

Some of the things we flaunt include capacity, integrity, knowledge, experience, quality and price of our goods. Our operation is beyond mere buying and selling. To start with, I have integrity to relate with you as a business person or customer. We have a commercial sales space of 10,000, an equivalent of two football fields put together. We know where those goods can be sourced. We provide logistics administration for all transit clearing services. We offer 24-hour trade services 356 days in a year.

In other words, Tradewinds do not sleep. We bring in goods that we consider to be of good quality and sell at a cheap price. In fact, we do discount sales on daily basis.

We believe in turnover rather than profit margin; we are content with marginal profit. Again, if you have problem with those goods, you have a window of returning it and we take it back from you. We offer efficient after – sales support framework, goods transport/ haulage deliver services, comprehensive insurance on all inland container haulage services from Onne Sea Port, Rivers State to Tinapa; trained and equipped security service staff; warehousing facility in Tinapa with storage capacity of over 300 tons containers; international subsidiary offices in UAE, China, Turkey and USA; highly experienced and dedicated management team; rescue operation vehicles for containers on inland transit; trade academy and practical training and mentorship for young people coming into business. Being where we are and doing what we are doing, we are operating at such levels that we can be compared with any other international entity in terms of how they do their business – the efficiency and know-how.


How Investors Can Make A Fortune In These Markets

Today one of the wealthiest people in the financial world spoke with King World News about what he described as the most extraordinary contrarian indicator he has ever seen in his life.  Rick Rule, who is business partners with billionaire Eric Sprott and the CEO of Sprott USA, also shares with KWN readers how they can make fortunes going forward in these turbulent markets.  Below is what Rule had to say in this tremendous interview.

Rule:  “I listen to Bernanke and people of his ilk mostly for amusement.  I’m not trying to suggest that what they say isn’t important, but the idea that Bernanke has managed to convince markets, investors, and intermediaries, that liquidity or cash in the system is a substitute for solvency is a very interesting achievement.

But the reality is that fortunes are made by betting against widely held premises such as the one I just mentioned, and that’s what I am doing with my own money.”

Eric King:  “Rick, you have seen the chart from the Richard Russell KWN piece which showed the number of bulls in the Gold Miners Bullish Percent Index which stands at a remarkable 0%.”

Rule:  “I think that’s hilarious.  I have never in my life seen a sentiment index like that….

And if the number of people polled that were bearish or neutral on gold mining shares was 100% of the subset, that would suggest, at least in terms of the audience they polled, that the selling has already taken place.  In other words people always talk their book.  If you felt bearish about gold and gold mining shares, why on Earth would you hold gold or gold mining shares?

So it’s interesting to note that if the sentiment is 100% bearish or neutral, that would suggest that virtually all of the potential liquidation has occurred.  That’s a very interesting indicator to me.”