harveyorgan.blogspot.com / Tuesday, July 29, 2013
Good evening Ladies and Gentlemen:
Gold closed down $4.00 to $1324.40 (comex closing time ). Silver was also down by 18 cents to $19.67 (comex closing time).
Thus in the access market today at 5 pm tonight here are the final closing prices:
At the Comex, the open interest in silver rose by 615 contracts to 132,076 with silver falling by 7 cents (Monday).
The open interest on the entire gold comex contracts fell by 7,240 contracts to 398,812 with gold’s fall in price on Monday by $6.70. The total OI is extremely low for the complex and suggests that gold is in very strong hands. However it does not make sense that the bankers would let off the short specs this easily. For the 3 straight delivery month in gold, we see a massive drop in total OI. With gold trading in the future October month for precisely what the August month trades, it really does not make sense for such a huge liquidation. Years ago, players would roll and the contango would be the price to stay in the game. What has changed?
The open interest for the front August contract month rests tonight at 19,458 contracts. We will have a good shot tomorrow what will stand but it looks to me that we will have a very strong August delivery month.
Tonight, the Comex registered or dealer inventory of gold rises slightly again and this time, well below the 1 million oz mark at 947.847 million oz or 29.48 tonnes. This is dangerously low especially when we are coming up to the August delivery month. Remember in June we had almost 31 tonnes of gold stand for delivery. The total of all gold at the comex (dealer and customer) remains constant tonight but still well below the 7 million oz barrier resting at 6.988 million oz or 217.356 tonnes.
JPMorgan’s customer inventory remains constant tonight at only 46,069.447 oz or 1.43 tonnes. It’s dealer inventory rests at 390,092.326 oz (12.13 tonnes) but it still must settle upon contracts issued in the May and June delivery month which far exceeds its inventory. (see (i) last Wednesday’s Bill Kaye interview with Lars Schall on the lack of deliveries at the comex per outstanding issuances and (ii) Alasdair Macleod yesterday with Max Keiser).
The total of the 3 major gold bullion dealers( Scotia , HSBC and JPMorgan) in its Comex gold dealer account registers only 24.847 tonnes of gold. The total of all of the dealers remains tonight at 29.47 tonnes!! Brinks continues to record a low of only 4.178 tonnes in its dealer account.
Thanks to BrotherJohnF