Silver as an investment

GLD drops 6.3 tonnes to 921.05 tonnes/Comex dealer gold falls to 939,309 oz or 21.21 tonnes/GOFO continues for 19th consecutive day in negative territory/the 6 month GOFO also lowers/

Harvey Organ's - The Daily Gold and Silver Report / Thursday, August 1, 2013

Good evening Ladies and Gentlemen:

Gold closed down $2.00 to $1310.40 (comex closing time ). Silver was unchanged at $19.62 (comex closing time).

Thus in the access market today at 5 pm tonight here are the final closing prices:

gold: $1310.50
silver: $19.66

Tomorrow is the jobs report and no doubt our bankers will attack as this is their usual modus operandi. It seems that the bankers are now more blatant than ever in their manipulation schemes.

As many are aware the Bank of England ( which is custodian to 5,000 tonnes of other nations sovereign gold) no doubt supplied 1300 tonnes of gold over a 4 month period (March to June 2013) to the market which in turn caused the price of gold to fall 400 dollars or so. The reason for the negative GOFO rates is due to the huge demand for gold coming from these lower prices plus the fact that in London we have declining levels of good delivery bars that could be used in the leasing game. The dumping of the B. of E’s custodial gold was meant to shake up the GLD and cause many to sell. That may have happened but the demand from China and India more than made up for that selling. The end result was that most of the gold supplied, landed on eastern shores and this has put our bullion bankers in peril as they have no way to resupply the gold that was leased. Thus central banks will be creditors of our bullion banks when they fail to return the necessary gold and in turn fail.

At the Comex, the open interest in silver rose by 1,149 contracts to 133,980 with silver falling by 5 cents (yesterday).

The open interest on the entire gold comex contracts rose by 1538 contracts to 398,573 with gold’s fall in price yesterday by $11.60. The total OI is extremely low for the complex and suggests that gold is in very strong hands.

Tonight, the Comex registered or dealer inventory of gold falls again and this time, well below the 1 million oz mark at 939.309 million oz or 29.21 tonnes. This is dangerously low especially when we are now into the August delivery month. The total of all gold at the comex (dealer and customer) rises slightly tonight and this time above the 7 million oz barrier resting at 7.023 million oz or 218.45 tonnes.

JPMorgan’s customer inventory rises tonight to 46,262.361 oz or 1.438 tonnes. It’s dealer inventory falls to 389,899.412 oz (12.127 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 on Tuesday with Max Keiser).

The total of the 3 major gold bullion dealers( Scotia , HSBC and JPMorgan) in its Comex gold dealer account registers only 24.496 tonnes of gold. The total of all of the dealers falls tonight to 29.21 tonnes!! Brinks continues to record a low of only 4.265 tonnes in its dealer account.